A 'Fundraising × Fan Building' System Created by Startups and Dentsu Inc.

In today's world overflowing with vast amounts of information and products, it is an era where it is difficult for companies to deliver their products and services to consumers.

With potential customers declining year by year due to a low birthrate and aging population, how can companies achieve stable growth?

One answer lies in the FinCommunityMarketing approach, jointly developed by the startup Fans and Dentsu Inc., which we introduce here.

FinCommunityMarketing
(FinCommunity Marketing)
( Press release, official website )

—the fusion of "finance" and "fan community."

We spoke with Yuichiro Fujita and Yo Shibata of Funds, who develop and deploy new fan community initiatives connecting individual investors and companies, along with Yoshiaki Takai, seconded to the company from Dentsu Inc., about "the new form of fan creation needed today" and "the new approach for startups × Dentsu Inc."

Building community through money. A funding model for the times

Takai: First, let me explain the relationship between Dentsu Inc. and Funds to our readers. Funds won the grand prize at the pitch event for " GRASSHOPPER," a startup acceleration program hosted by Dentsu Inc. As the person in charge, I was seconded to Funds to develop a new service together.

Fujita: We're indebted to you (laughs). Should I start by explaining our service, "Funds"?

"Funds" is an "online marketplace for lending funds." Individual investors can indirectly lend to companies through a "lending fund" mechanism and build assets by receiving dividends based on interest income. Companies can raise funds directly from individuals without going through banks or securities firms. It's a service offering new options to both sides.

*Funds

Funds provides an online platform enabling individuals to invest in loans to listed corporate groups starting from just 1 yen. To date, it has offered approximately 30 funds formed by 12 companies, primarily listed firms. (As of August 14, 2020).

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

 

We believe "asset formation" is a major challenge for Japanese people today, and we want to create a society where everyone can live without anxiety about the future. However, we felt the market was dominated by two extremes: high-risk, high-return financial products or, conversely, fixed-term deposits yielding almost no profit. We needed options to bridge that gap for asset formation. While we were working on services like crowdfunding, we met Shibata, who had successfully launched several startups in the US, just as he was returning to Japan.

Shibata: I'd run several startups, but I thought, "If I do the next one, I want to tackle a major challenge facing ordinary people." Today's world requires individuals to build their own retirement assets. This is a revolutionary change from the traditional Japanese lifestyle. So, I was thinking about whether we could create an asset-building service for everyone when I met Fujita, a crowdfunding specialist. That's my side of the story.

Takai: That was the starting point for Fans. Now, let's discuss the background behind the creation of "FinCommunityMarketing," which combines "fundraising from individual investors" and "fan communities" as essential elements for future companies.

Dentsu Inc. and Funds met through the GRASSHOPPER program. But it wasn't just about suggesting a concept; to co-create the business, I ended up being seconded to Funds. Dentsu Inc.'s goal was twofold: building a marketing platform in a new field and contributing to the startup's business growth by having Dentsu Inc. personnel join through secondment. It was a chance to challenge two new initiatives.

Mr. Fujita, you've been involved in marketing support services and crowdfunding platforms. What do you feel Japanese companies need most today?

Fujita: For companies to achieve stable growth, I believe building a dedicated fan base – people who passionately support the company and continuously purchase its products or services – is crucial and indispensable.

With the world flooded with countless products and information, simply highlighting a product's specs or features won't catch consumers' attention. That's why many companies today actively share stories about their passion for their products and services, aiming to foster empathy and affection among consumers.

However, consumers aren't generous enough to listen to companies they have no connection or relationship with. That's why it's valuable to first create "some kind of relationship" and establish a "receptive environment" for the company's messages. The "Funds" mechanism we've developed creates a "relationship" between investing consumers and companies, making it easier for the company's stories to be received.

Takai: So you joined GRASSHOPPER to develop a service that further evolves this "Funds" concept.

Fujita: We could have built the financial mechanism ourselves. However, developing the concept of how to leverage it for corporate marketing, and then presenting and spreading that concept to the world, was difficult for us as a startup alone.

We had the sense that "using this system effectively could build relationships between individuals and companies," but to establish it as a new marketing method, we discussed that partnering with companies skilled in that area would be better. That's why we joined GRASSHOPPER.

When we shared our vision at GRASSHOPPER, the Dentsu Inc. team members thought about it devotedly. During the roughly two-and-a-half-month program period, the concept "FinCommunity Marketing" was born.

Business co-creation and secondment with Dentsu Inc.: "A New Model for Startups × Dentsu Inc."

Takai: I was also thrilled that Funds won the Grand Prix at GRASSHOPPER. The idea of consumers forming fan communities for companies through "investment" felt like a marketing platform with tremendous potential. As Dentsu Inc., we felt it would be great to co-create alongside this growth potential.

Thanks to the efforts of Keiichi Higuchi (at the time), Mr. Yomogida, and Mr. Yamane from Dentsu Inc.'s creative team involved with GRASSHOPPER, the concept of combining "finance and fan communities" was born. Rather than just handing over the concept and ending there, Dentsu Inc. itself joined in. To support business development, create new solutions, and generate business synergy, we adopted the form of "business producer secondment to the startup" seen in this case.

Since there was no precedent for a business producer directly facing clients to be seconded to a startup, we received tremendous support from our superior, Mr. Amano, and fellow business producers Mr. Horikiri, Mr. Hoshino, and Mr. Yasutake, making this possible.

Shibata: Mr. Takai, who connects Dentsu Inc.'s creative teams and business production teams with Funds, is a huge asset to our co-creation efforts. For example, it's difficult for us to direct Dentsu Inc.'s creative teams directly, but Mr. Takai skillfully coordinates and manages that process. However, that's only part of his role; he's driving the entire FinCommunityMarketing business forward.

Fujita: In a sense, he's like the "business head" of FinCommunityMarketing.

Shibata: To spread the word about FinCommunityMarketing more widely this time, we're issuing press releases and holding webinars (see article end). He handles everything from the overall strategy to securing speakers, building the event flow, and promoting the event – it's incredibly reassuring. Furthermore, a major benefit of startups partnering with Dentsu Inc. is access to Dentsu Inc.'s clients. Reaching large corporations with startup services is challenging, and they've been tremendously helpful in that regard too.

Fujita: That's a huge factor. When selling our service to companies, we've already been introduced to Dentsu Inc. clients through Takai and his team. However, when making proposals, we tend to focus heavily on the financial angle. Having someone like Takai from Dentsu Inc. involved is invaluable—they advise us on how to incorporate marketing elements effectively to make our pitch more compelling.

Shibata: We want to work together to establish the term "FinCommunityMarketing," which Dentsu Inc. helped articulate, as a distinct category within the business world going forward.

Fujita: That said, Takai-san has shown overflowing "love for Fans" since the GRASSHOPPER days, hasn't he? (laughs) His passion has inspired everyone at Fans, and now we truly feel like "comrades sharing the same pot of rice."

I used to think achieving unity between large corporations and startups was difficult, but thanks to Takai-san diving in with passion and commitment, I truly feel we're moving toward the same goal.

Takai: Thank you. Dentsu Inc. has such diverse talent, so I want to produce what startups truly need. Right now, I'm challenging a new model for "Startup × Dentsu Inc." – not just partial involvement, but "Dentsu Inc. business producers going on assignment to startups and committing fully as one of their team members."

It feels like all the experience I've gained over the years—working in media, marketing, business production—is finally coming together in one place (laughs). That said, I did notice how specialized Dentsu Inc.'s divisions are. Being on the ground at a startup, you realize it's not just about knowledge; you need to execute across all domains. I'm learning a lot right here in the trenches.

Fujita: What's impressive is that you're fully engaged as one of the team members at Funds. To us, you're no longer "Mr. Takai from Dentsu Inc." but simply "Mr. Takai." Making decisions as a startup member while still carrying responsibility for Dentsu Inc. involves significant risk and takes tremendous courage. But the potential benefits are equally great, so I think this kind of arrangement will become more common going forward.

Takai: Thank you. Precisely because I'm seconded, I believe that doing my absolute best for Fans will ultimately benefit Dentsu Inc. as well.

Fan Marketing That Shines Brightest in the Pandemic Era

 

Takai: We plan to promote FinCommunityMarketing through webinars and other channels going forward, but could you briefly outline it?

Fujita: It's a marketing approach combining finance and fan communities to build corporate fan bases, offered to companies seeking new relationships with individual consumers.

Traditional marketing approaches consumers whose needs are already apparent, aiming to get them to visit stores or make purchases. However, "Funds" uses "investment" as an entry point to first build relationships with people who aren't yet interested in the company's products or services.

We create original funds tailored to the company's desired fan profile and objectives. During the investment period, the company engages in various communications to gradually foster appreciation for their products and brand, encouraging support and purchases. This "approach to potential customers" is a major feature.

Shibata: We already have several implementation examples, which we'll also introduce in the webinar. I believe all have been well-received and achieved high effectiveness. They were very well-regarded by both individual investors and companies, right?

Takai: In fact, when we surveyed "Funds" users, about 90% responded that they "developed a favorable impression of the invested company" and "felt motivated to support it." Harnessing this psychology for marketing is the essence of FinCommunityMarketing—it creates a win-win for both investors and companies.

Shibata: We see these connected consumers as a fan base that can help spread the company's information.

Fujita: The reason is that "Funds" individual investors are predominantly in their 20s to 40s—a demographic with both strong purchasing intent and purchasing power. They are highly information-sensitive, actively searching for new products, purchasing and using them, then sharing their experiences on social media.

Takai: Amid the pandemic, we're hearing from large corporations that "cash is king, making it difficult to fund new initiatives." In this context, FinCommunityMarketing's ability to build a fanbase while raising funds is a key point, right?

Shibata: While planning began last year, the approach ended up feeling remarkably prescient for the "living with COVID" era. I believe it's ideal for building relationships with consumers who, in this conservative, safety-focused "life defense" climate, seek long-term partnerships with trustworthy companies.

Our upcoming webinar focuses on "Building Fans with the Post-COVID Era in Mind." We believe it can offer insights to business leaders and marketers struggling with fan acquisition, or those wanting to innovate but facing challenges in message delivery. We also encourage anyone interested in Japan's first system combining finance with fan communities to join us.

Takai: Thank you. We look forward to sharing more details during the webinar.

[Announcement]

Funds × Dentsu Inc. Webinar: "The New Era of Fan Building - Practical Strategies from Industry Leaders" - August 25

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

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

 

These include "growing alongside startups" through investment and business development, "boosting momentum with startups" by hosting accelerator events, and proposing optimal marketing solutions "for startups."

 

For details on individual services, please see the links below.

<Investment & Business Development>

■Dentsu Inc. Ventures Website
……A corporate venture capital fund that invests globally in ventures, primarily overseas companies.

&nbsp;

＜Accelerator＞

■SPORTS TECH TOKYO Website | Web Dentsu Inc. News Series
……An acceleration program focused on the theme of sports × technology. It creates various business opportunities in collaboration with companies and sports-related organizations.

&nbsp;

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

&nbsp;

<Solution Consulting>

■TANTEKI HPWeb Dentsu Inc. News Serialization
……We transform startups' cutting-edge technologies and ideas into "communicable" forms through the power of copywriting and design.

&nbsp;

■Dentsu Inc. Growth Design Unit ReleaseWeb Denpo News Series
……We invest skilled "people" into each stage of a startup's journey, supporting growth through hands-on consulting.