Crowdfunding Projects Help Virus-Hit Businesses in Japan
Nagoya, May 23 (Jiji Press)--Crowdfunding initiatives featuring a "circle of empathy" are supporting restaurant and tourism businesses struggling under the fallout from the COVID-19 outbreak in Japan.
Of the country's 47 prefectures, only Tokyo and three neighboring prefectures as well as the northernmost prefecture of Hokkaido remain under the central government's state of emergency over the epidemic. But many small businesses are still hesitant to take out loans from financial institutions amid uncertainty over recovery in demand.
Fundraisers in crowdfunding schemes often provide donors with meal discount tickets and premium accommodation vouchers.
Several Japanese companies that offer crowdfunding platforms have waived commission fees since late February, when restaurant and hotel operators as well as event hosts suffered sharp falls in sales amid the virus crisis.
Of such companies, Campfire Inc., Readyfor Inc. and MotionGallery Inc. had raised a total of over 1.7 billion yen for at least 1,000 projects by May 8.