A “Fundraising × Fan-Building” Framework Created by Startups and Dentsu Inc.

We live in an age overflowing with vast amounts of information and products. For companies, this makes it difficult to deliver their products and services to consumers.

With the declining birthrate and aging population causing the number of potential customers to decrease year by year, how can companies achieve stable growth?

One answer lies in “FinCommunityMarketing,” jointly developed by the startup Fans and Dentsu Inc., which we’ll introduce here:

FinCommunityMarketing
(FinCommunityMarketing)
( Press Release, Official Website )

—in other words, the fusion of “finance” and “fan communities.”

We spoke with Yuichiro Fujita and Yo Shibata of Fanz—who develop and implement new fan community initiatives that connect individual investors with companies—as well as Yoshiaki Takai, currently on secondment to the company from Dentsu Inc., about “the new model for building a fan base that is needed today” and “a new approach to the partnership between startups and Dentsu Inc.”

Building Communities Through Money: A Form of Fundraising Suited to the Times

Takai: First, let me explain the relationship between Dentsu Inc. and Funds to our readers. Funds won the Grand Prix at the “GRASSHOPPER” pitch event—a startup acceleration program organized by Dentsu Inc.—and since I was the project manager in charge, I was seconded to Funds to work with them on developing a new service.

Fujita: Thank you for having me (laughs). Perhaps I should start by explaining our service, “Funds”?

“Funds” is an “online marketplace for lending funds.” Through the “lending fund” mechanism, individual investors indirectly lend money to companies and build wealth by receiving dividends funded by interest payments. Companies, in turn, can raise capital directly from individuals without going through banks or securities firms. It’s a service that offers new options to both parties.

*Funds

Funds provides an online platform where individuals can make lending investments in listed corporate groups starting from as little as 1 yen. To date, it has offered approximately 30 funds organized by 12 companies, primarily listed corporations (as of August 14, 2020).

Funds Website: https://funds.jp/
Reference URL: https://funds.jp/lp/fin-community-marketing/

I believe “wealth building” is a major challenge for Japanese people today, and I want to create a society where everyone can live without anxiety about the future. However, I felt that the financial landscape currently offers only two extremes—high-risk, high-return financial products on one end, and fixed-term deposits that yield almost no profit on the other—and that there was a need for wealth-building options to bridge that gap. So, while I was running a crowdfunding service, I met Shibata, who had returned to Japan after successfully launching several startups in the U.S.

Shibata: I’ve run several startups, but I’d been thinking, “If I do another one, I want to tackle a major challenge faced by everyday people.” In today’s world, individuals must build their own retirement savings. This is a revolutionary change compared to the traditional Japanese lifestyle, isn’t it? So, just as I was wondering if we could create a wealth-building service for everyone, I met Mr. Fujita, a crowdfunding specialist—that’s the background from my perspective.

Takai: That was the starting point for FUNZ. Now, I’d like to talk about the background behind the creation of “FinCommunityMarketing”—a concept that fuses “fundraising from individual investors” and “fan communities”—which I believe will be essential for companies moving forward.

Dentsu Inc. and Funds first met through a program called GRASSHOPPER, but rather than simply suggesting a concept and leaving it at that, I ended up being seconded to Funds to co-create the business. From Dentsu Inc.’s perspective, this allowed us to take on two new challenges: building a marketing platform in a new domain and contributing to the business growth of startups by having a Dentsu Inc. employee join Funds on a secondment basis.

Mr. Fujita, you’ve been involved in marketing support services and crowdfunding platforms. What do you think Japanese companies need right now?

Fujita: I believe that in order for companies to achieve stable growth, it is crucial and indispensable to “build a fan base”—people who enthusiastically support the company’s activities and consistently purchase its products and services.

With the world flooded with so many products and so much information, consumers won’t give a second glance if you simply highlight a product’s specifications or features. That’s why, in today’s climate, many companies are actively sharing stories—such as the passion behind their products and services—to foster empathy and loyalty among consumers.

However, consumers aren’t generous enough to listen to the voice of a company with which they have no connection or point of contact. That’s why it’s valuable to first establish “some kind of relationship” and create a “framework where people are willing to listen” to what the company has to say. The “Funds” system we’ve developed creates a “relationship” between investing consumers and companies, making it easier for consumers to receive the stories companies share.

Takai: So you joined “GRASSHOPPER” to create a service that further develops this “Funds” concept.

Fujita: If it were just a matter of building the financial framework, we could have done it on our own. However, developing the concept of how to apply this to corporate marketing—and presenting and promoting that concept to the world—is difficult for a startup like ours to do alone.

We had a sense that “if we use this system effectively, we can build relationships between individuals and companies,” but we discussed that to establish it as a new marketing method, it would be better to partner with a company that excels in that area. That’s why we joined GRASSHOPPER.

When we shared our vision with GRASSHOPPER, the Dentsu Inc. team thought deeply about it with great dedication, and during the approximately two-and-a-half-month program, the concept of “FinCommunity Marketing” was born.

“A New Model for Startups × Dentsu Inc.: Business Co-creation and Secondment with Dentsu Inc.”

Takai: I was also delighted that Fans won the Grand Prix at GRASSHOPPER. I saw tremendous potential in this new marketing platform, where consumers form a fan community around a company through “investment.” From Dentsu Inc.’s perspective, I felt it would be great to support this growth potential through co-creation.

Thanks to the efforts of Mr. Keiichi Higuchi (at the time), Mr. Yomogida, and Mr. Yamane—the creative team from Dentsu Inc. involved with GRASSHOPPER—we were able to develop the concept of combining “finance and fan communities.”Rather than simply handing over the concept and calling it a day, Dentsu Inc. itself joined the effort. To support business development, create new solutions, and generate business synergies, we adopted the approach of “seconding business producers to the startup,” as we did in this case.

Since there was no precedent for a business producer working directly with clients to be seconded to a startup, we were able to make this happen thanks to the tremendous support from my supervisor, Mr. Amano, as well as fellow business producers Mr. Horikiri, Mr. Hoshino, and Mr. Yasutake.

Shibata: Mr. Takai, who connects Dentsu Inc.’s creative and business production teams with Fans, is one of the greatest assets in our co-creation efforts. For example, while it’s difficult for us to direct Dentsu Inc.’s creative team directly, Mr. Takai skillfully coordinates and manages the process. But that’s only part of his role—he’s actually leading the entire FinCommunityMarketing business.

Fujita: In a sense, he’s like the “business head” of FinCommunityMarketing.

Shibata: This time, to raise broader awareness of FinCommunityMarketing, we decided to issue a press release and host a webinar (see the end of the article). He’s taken full charge of everything—from the overall strategy to inviting speakers, planning the event flow, and promoting the event—and it’s incredibly reassuring to have him on board. Additionally, a major benefit of a partnership between a startup and Dentsu Inc. is access to Dentsu Inc.’s client base.It’s difficult for a startup to get its services in front of large corporations, but they’ve been a tremendous help in that regard as well.

Fujita: That’s a major advantage, too. When it comes to selling our service to companies, we’ve already been introduced to Dentsu Inc.’s clients through Mr. Takai and his team. However, when making proposals, we tend to focus too much on the financial aspects. Having Mr. Takai and the Dentsu Inc. team there allows us to get valuable advice on how to incorporate marketing elements in a way that makes our message easier to understand.

Shibata: We’d like to work together to ensure that the term “FinCommunityMarketing”—which Dentsu Inc. helped define—becomes established as a distinct category in the business world going forward.

Fujita: That said, Mr. Takai has been showing us an overflowing “love for FUNZ” ever since the GRASSHOPPER days, hasn’t he? (laughs) His passion has inspired everyone at FUNZ, and now we truly feel like “comrades in arms.”

I used to think it was difficult to achieve a sense of unity in collaborations between large corporations and startups, but thanks to you jumping in with such passion and determination, I truly feel we’re moving toward the same goal.

Takai: Thank you very much. Since Dentsu Inc. has such a diverse range of talent, I want to produce solutions tailored to what startups need. Right now, as a new model for “Startup × Dentsu Inc.,” I’m challenging myself to move beyond a superficial involvement—instead, “Dentsu Inc. business producers are seconded to startups and fully commit as one of the startup’s team members.”

I feel like I’ve finally gotten the chance to put everything I’ve learned from my various roles—in media, marketing, and business production—to good use (laughs). That said, I did notice that Dentsu Inc. has quite specialized departments. Now that I’m actually here at the startup, I realize that it’s not just about knowledge—you have to be able to execute across all areas—and I’m learning a lot through hands-on experience here.

Fujita: What I find impressive is that, in terms of our relationship, you’re fully involved as just one member of Fans—from our perspective, you’re no longer “Mr. Takai from Dentsu Inc.” but simply “Mr. Takai.” Having to make various decisions as a member of a startup while still bearing responsibility to Dentsu Inc. involves significant risk, and I think it takes a lot of courage. But the benefits you gain should be just as great, so I think we’ll see more of this kind of arrangement in the future.

Takai: Thank you very much. Precisely because I’m on secondment, I’m determined to do my absolute best for Fans—and I believe that, in the end, this will also benefit Dentsu Inc.

The Approach to Fan Marketing That Truly Shines During the COVID-19 Pandemic

Takai: We’ll be promoting FinCommunityMarketing through webinars and other channels going forward, but could you give us a brief overview?

Fujita: It’s a “marketing approach for building a corporate fan base by combining finance with fan communities,” designed for companies seeking to forge new relationships with individual consumers.

Conventional marketing approaches consumers whose needs are already apparent, aiming to get them to visit a store or make a purchase. However, with “Funds,” we first build a relationship with people who aren’t yet interested in a company’s products or services by using “investment” as the entry point.

We create custom funds tailored to the company’s desired fan profile and objectives. During the investment period, the company engages with investors through various forms of communication, gradually fostering a fondness for the product or brand so that they will eventually support it or make a purchase. This “approach to potential customers” is a key feature of the program.

Shibata: We already have several case studies—which I’ll introduce in the webinar—and I believe all of them have been well-received and highly effective. They’ve been very well-received by both individual investors and companies, haven’t they?

Takai: In fact, when we conducted a survey of “Funds” users, about 90 percent responded that they “have a favorable impression of the companies they invest in” or “feel like supporting them.” The essence of FinCommunityMarketing is that if we can leverage this psychology for marketing, both investors and companies will benefit.

Shibata: I believe that consumers with whom we’ve built relationships in this way form a fan base that we can count on to help spread information about the company.

Fujita: The reason for this is that “Funds” individual investors are predominantly in their 20s through 40s—a demographic with both the desire and the ability to make purchases. They’re highly attuned to information; they search for new products on their own, purchase and use them, and then share their experiences on social media.

Takai: Right now, amid the COVID-19 pandemic, we’re hearing from large corporations that “cash is king, so it’s hard to allocate funds to new initiatives.” In that context, the key advantage of FinCommunityMarketing is that it allows companies to build a fan base while raising funds, isn’t it?

Shibata: We actually started developing this initiative last year, but in hindsight, I think the approach we took was as if we’d anticipated the “living with COVID” era. Amid this conservative, safety-first atmosphere focused on “protecting one’s livelihood,” I believe companies should use this to build relationships with consumers who want to engage with trustworthy businesses over the long term.

The theme of our upcoming webinar is “Building a Fan Base with an Eye on the Post-COVID Era.” I believe it will offer valuable insights to business executives and marketing professionals who are struggling with fan engagement, or who want to try something new but are having trouble getting their message across. I also encourage anyone interested in this system—the first of its kind in Japan to combine finance with fan communities—to join us.

Takai: Thank you very much. I look forward to sharing more details during the webinar.

[Event Announcement]

Funds × Dentsu Inc. Webinar: “A New Era of Fan-Building: Practical Strategies from Industry Leaders” – August 25

https://dentsu-ho.com/articles/7425

As the startup ecosystem continues to expand, the Dentsu Group has launched numerous initiatives to support startups.

These include investments and business development aimed at “growing alongside startups,” hosting accelerator events to “energize the startup community together,” and proposing optimal marketing solutions “tailored for startups.”

Please see the list of links below for details on individual services.

<Investment & Business Development>

■ Dentsu Inc. Ventures Website
……A corporate venture capital fund that makes venture investments globally, with a focus on overseas companies.

<Accelerator>

■SPORTS TECH TOKYO Website / Web Dentsu-ho Series
……An acceleration program focused on the intersection of sports and technology. It works with companies and sports-related organizations to create various business opportunities.

■GRASSHOPPER 　Website
……An acceleration program that provides multifaceted support to startups creating services and products that amaze the world.

<Solution Consulting>

■TANTEKI Website | Web Dentsu-ho News Series
……We use the power of copywriting and design to transform startups’ cutting-edge technologies and ideas into forms that “resonate” with the audience.

■Dentsu Inc. Growth Design Unit Release— Web Dentsu-ho Series
……We invest skilled “people” at every stage of a startup’s development and support their growth through hands-on consulting.