The Road to Crowdfunding

By Naoyuki Haraoka

The leaders interview for this issue features Haruka Mera, representative of a young venture company. She founded READYFOR, a crowdfunding company, in 2011. She is a young leader of Japan's new capitalism, challenging herself to solve various social issues.
(Interviewed on July 18, 2025)

Haraoka First, I would like to ask what sparked your interest in crowdfunding.

Mera I launched READYFOR in 2011 as Japan's first crowdfunding service. I was studying economics at Keio University when Prof. Yutaka Matsuo, who is now conducting research on AI at the University of Tokyo, returned from Standford to assume the role as an associate professor at Keio. As such, our seminar group and his began a joint-research.

Prof. Matsuo had been researching AI and developing a technology that could be considered as the prototype of AI, which collected and analyzed diverse text data from the Internet. Through our joint-research on how to implement AI into business, I was captivated by the potential of the Internet, where individuals can express their thoughts online and connect with others. From that time, I became determined to take on the challenge of creating a business that would maximize the potential of individuals by leveraging the power of the Internet.

I considered various business ideas, but among them I thought about what I could do for people who have challenges they want to take on or dreams they want to achieve but find it difficult to raise funds. In particular, I thought that if young entrepreneurs, who often find it difficult to gain trust and raise funds, could attract people to share their vision through the Internet and prepare to fund their projects, they might be able to take the first step to realize their dreams. With this in mind, I created a prototype of my business during my student days.

When I went to the United States to study in 2010, crowdfunding was just starting to gain traction as a way to raise money online. My desire to empower people through technology, combined with the fact that crowdfunding was starting to grow in the US at the time, made me think it could work in Japan too. That's what led me to start a crowdfunding service.

Haraoka When did crowdfunding become common in the US?

Mera It started around 2008. At that time, social networking services such as Facebook and Twitter (now X) emerged, allowing individuals to share information, which further expanded the possibilities of the Internet. There were means of communication such as blogs, but unless they gained traction, it was difficult to connect with many people. The emergence of services such as Facebook and Twitter provided a foundation for individuals to share high-quality content with a wider audience, which I believe laid the groundwork for the spread of crowdfunding.

Haraoka I think the best thing about the Internet is that it allows people to spread their interests and opinions and communicate with various people. Could it be that the fact that young people have started using it as a means of realizing their values and dreams is the main reason for its widespread use?

Mera I am not an expert on social media, but I think it is clear that social media has played a major role in the spread of crowdfunding. One characteristic of Internet services is that early adopters, who are eager to initiate new projects, utilize crowdfunding as a means of starting up a company and achieving an ambitious business goal, and raise funds by promoting their projects through their own social media. We launched our service on March 29, 2011, just after the Great East Japan Earthquake. We believe that this event had a significant impact on the expansion of our service.

A lot of donations were collected after the earthquake, but many donors were probably wondering how the money was actually being used on the ground and whether it was reaching the disaster area quickly enough. By utilizing crowdfunding, people who truly needed funds were able to raise money directly, and the funds were quickly put to use for reconstructing cafes and creating places for people to gather. Seeing the restoration and recovery come to fruition in such a tangible way was very meaningful.

READYFOR is a platform focused on social issues, and I believe that the fact that so many people used it was one of the major factors in its growth.

READYFOR Today - What Does the Future Hold?

Haraoka READYFOR has been in business for over 10 years now and has many accomplishments. I would like to ask you about your achievements, future prospects, and challenges ahead.

Mera We have been providing a crowdfunding platform for over 10 years, and have assisted approximately 30,000 projects for a wide range of people. From the outset, we have been hoping to create a system that provides supplementary funding to those who fulfill socially necessary functions but find it difficult to obtain financing from financial institutions and therefore struggle to sustain their businesses. We feel that this desire has become even stronger today.

In particular, over the past three to four years, utilization in the quasi-public sector has expanded further in the wake of the Covid-19 pandemic. In addition to NPOs, we are currently partnering with approximately 85 universities, where our services are being utilized in a wide range of fields, including research and extracurricular activities. In addition, our services are utilized by medical institutions and researchers. Notable examples include the National Museum of Nature and Science's cultural property project, which raised over 900 million yen, and Horyuji Temple, which raised over 100 million yen. Our services are widely used by cultural property facilities such as temples, shrines, museums, and art galleries.

Until now, subsidies and grants have been the main source of funding for the public sector. However, as society becomes more complex, there are increasing areas that the government alone cannot support. Platforms such as READYFOR are helping to fill this gap by providing funding to these areas, thereby supporting Japan's important culture and social functions.

The platform has been in operation for approximately 14 years, but looking ahead, in addition to crowdfunding services, we have also been providing a bequest donation support service for the past four years that connects customers who wish to use their assets for social contributions after their death with social contribution organizations. We believe that this is growing into a mechanism that will create a new and significant flow of funds.

In the US, donations amounting to 83 trillion yen are made annually, with a significant portion coming from super-rich individuals. In Japan as well, donations from those super-rich individuals are gradually gaining traction. However, among such individuals, there are voices expressing uncertainty about where to donate to ensure both peace of mind and meaningful social impact. We are addressing this need by connecting donors with trustworthy recipients and initiatives that generate significant social impact. Moving forward, we aim to further evolve as a donation platform.

Haraoka Philanthropy is very active in Europe and North America, so I think there is considerable demand for crowdfunding. But in Japan, there is not much of a tradition of donating, and philanthropy is not necessarily widespread. What are your thoughts on this?

Mera In the US, donations amount to 83 trillion yen annually, but I feel that there are still significant hurdles to achieving the same scale of donations in Japan as a percentage of GDP. Currently, annual donations in Japan amount to only about 1 trillion yen, and I believe there is room to increase this amount by a greater margin. We recognize that the infrastructure for donations is not yet sufficiently developed in Japan, and that what is commonplace in the US has not yet been achieved here. Given the current situation, I feel it still does not allow prospective donors to choose from a wide range of organizations and foundations based on sufficient information. As mentioned earlier, the number of people wishing to make donations has been increasing every year, but in particular there is a growing number of people who have no heirs and wish to leave a legacy, as well as those who have heirs but wish to leave something of value to society.

On the other hand, unlike in the US, where it is common to attend church or participate in school charity events, many people in Japan do not have a culture of giving to charity. As a result, even if they want to make a donation, they often do not know where to donate in order to make a meaningful contribution to society. Furthermore, even when they try to find information, they often do not know how to search for appropriate donation recipients. I feel there is still a lack of mechanisms in place to organize such information and present it in a way that is easy for donors to understand.

In the US, financial institutions are responsible for wealth management, which supports asset formation. However, I believe that the donation market in Japan is still in its infancy, and there are currently few players active in this field. We believe that there is still much to be done in the future, while exploring ways to position donations as a means of asset formation, in collaboration with financial institutions and other entities.

One reason often cited for the slow progress of philanthropy in Japan is the tax system, but I feel that a lack of information and unclear channels for consultation are even bigger factors. If we can step in and demonstrate that the scale of money flow can be increased and led to social change, I believe that tax incentives could be strengthened in the future.

Aiming to Balance Social Issues & Economic Growth

Haraoka I think that crowdfunding is largely motivated by a desire to solve social issues. Japan is a super-aging society, which means that social issues are likely to increase in the future, so I think activities such as these are extremely important. As a representative of the Impact Startup Association, I think it is important to aim at both solving social issues and economic growth. What do you think is the key to achieving both?

Mera In the United Kingdom, there is a system called "Big Society Capital" which utilizes dormant deposits in bank accounts for investment in NPOs and startups that address social issues. Japan has a similar system called the "Dormant Deposit Utilization System". Within this framework, a policy has been established to define impact startups and provide financial support to companies that balance social issue resolution and economic growth. We also believe that while social issues are becoming increasingly complex, it is difficult to resolve them solely through taxation, and that it is important to establish mechanisms that enable the private sector to play a more active role in addressing these issues.

We believe that "impact startups" are the key to achieving this, and have established an association that currently works with approximately 250 companies aiming to balance social and economic goals. Member companies are selected through a review process, during which we confirm the social issues they aim to address through their entrepreneurship and whether their solutions are appropriate for addressing those issues. At the same time, we place great importance on the sustainability of the business, i.e., whether it can be maintained as a viable business over the long term. Addressing social issues is extremely challenging, and even if a solution appears viable in the short term, it will not lead to a true resolution without a sustainable business model. Therefore, we believe that assessing whether a business can operate sustainably is crucial, and this is precisely where innovation lies.

We believe that the core of innovation lies in determining what business models and technologies can be used to solve previously intractable problems. By encouraging all to tackle this issue, we believe that it will be possible to realize a world in which social and economic compatibility, which have been considered difficult to achieve, can coexist.

Haraoka When we talk about aging, healthcare immediately comes to mind, but in terms of technology, there are various new innovations such as care robots, and these are being supported through crowdfunding. It is likely that a significant amount of money will be required to ensure that many elderly people can benefit from these innovations. The government alone cannot achieve this, but by effectively raising funds, we can advance care services. This could potentially lead to both the resolution of social issues and economic growth. Is it a matter of identifying such needs or opportunities effectively?

Mera You're absolutely right. With crowdfunding and philanthropy, it's not easy to get billions or trillions of yen to specific areas like the government can. However, grants and subsidies often lack flexibility, and if a project is still in an experimental phase, it's hard to get bank loans, so it's tough to raise money by government help. From this perspective as well, we believe that crowdfunding is an effective tool that can be utilized in the early stages of new innovations. Since donations can generate a flow of funds that do not seek economic returns, and we feel that there is a great need for this in areas that support new challenges and innovations, as well as in supporting people in socially difficult circumstances where beneficiary payments are not feasible.

Haraoka I remember that social issues were not a topic of interest among young people during the period of rapid economic growth a few decades ago, or even in the 1980s and 1990s. Instead, market-oriented capitalism was considered extremely important. However, I hear that social entrepreneurship is now very popular among young people in Japan. What are your thoughts on this?

Mera It is said that the biggest reason people choose to work for a large company today is whether or not the company is committed to social contributions. In particular, younger generations place a high priority on how seriously a company responds to social demands, and I believe that SDGs education has had a significant influence on this mindset. The generation that has entered society in recent years is one that has learned about SDGs in school and textbooks. Therefore, given the current situation in which social issues are piling up around the world, I think they tend to naturally consider corporate social responsibility and how they can contribute as members of society.

I believe that marketability is also an important factor to consider. Japan is facing an extremely serious economic challenge in the form of population decline, and I believe that the greatest opportunity in the Japanese market lies in the area of social issues. The association I run has many member companies that are seeking to expand the solutions they have developed in Japan globally. Because Japan is a leader in addressing social issues, there are many companies that want to expand their solutions to countries facing similar challenges of population decline and aging, and grow their businesses in the process.

Rather than simply thinking, "Let's do something good for society", many people are approaching social issues as a market, correctly identifying them as such, and working to solve them in a way that contributes to solving problems around the world while also growing their businesses. I feel that there is a growing number of people who are developing their businesses based on this mindset. When I first started my company, I thought that most people in venture companies were more profit-oriented, but I now realize that many people of my generation are starting businesses with a focus on solving social issues.

Haraoka So it's not that there are various business needs in the market, but rather that they exist in society?

Mera Yes, I think you're right.

Preventing Social Divisions a

Haraoka The next question is that seeing social divisions occurring in many ways and growing concern about increasing income gaps leading to a serious divide between poor people in despair and the super-rich, could your activities in READYFOR or the Impact Startup Association stop this?

Mera The people who use the READYFOR platform are those who have found it difficult to raise funds under the traditional capitalist system. These are people who have been engaged in activities that have not received much attention within the framework of capitalism, but who are now utilizing READYFOR as a means of social participation. I feel that a system is emerging in which funds are flowing to these activities, making it possible to realize things that were previously impossible.

Another aspect I particularly like about this platform is that donors can maintain a level relationship with those raising funds. On READYFOR, donors can add comments when making a donation, and many of them express gratitude, such as "Thank you for this opportunity to support you." Rather than placing donors in a position of superiority, this platform enables social participation by allowing everyone to support those who are trying to make society a better place. I think this is a wonderful thing.

As AI advances, many of the jobs we know today will be replaced by AI, and the meaning of traditional ways of working and what we have come to think of as "work" will change significantly. As a result, we may find ourselves in a society where it is difficult to feel that we are needed by society. That is why I believe it is extremely important to ensure an environment where people can support or assist activities they believe to be wonderful, even if they do not receive attention from society, or take action themselves. From the perspective of social divisions, I believe it is important to maintain a system that allows people to demonstrate their value within society.

Impact startups are companies that promote both social and economic sustainability, declaring to society that they are not solely focused on their own success. Of course, the business world is not entirely free of a winner-takes-all mentality, but when talking with the leaders of companies belonging to this association, it is clear that many of them are seriously committed to improving society through their businesses.

I hope that as more and more business leaders like this emerge, we will see the emergence of leaders in every industry who are able to build systems that ensure that value is shared throughout the world, rather than being enjoyed by a select few.

Haraoka So you believe that this will lead to a new form of capitalism. You mentioned AI, but unfortunately Japan lags significantly behind other countries in terms of IT software, and the situation is quite desperate. However, I often hear people say that AI startups may be the key to turning things around. In that sense, do you think that the emergence of AI will revitalize the Japanese economy or lead to an increase in startups? There are already some AI startups, but what are your thoughts on this?

Mera I think Japan has a great opportunity. AI will greatly change white-collar employment, but in countries with growing populations, the loss of jobs can lead to fear and anxiety. However, Japan is facing a severe labor shortage, and in fields such as nursing care there is no choice but to accept the use of robots and AI. If robots and AI can be naturally accepted in such an environment, I think innovation will become easier to advance. Ultimately, I think that human resistance is the biggest obstacle to innovation, so the declining population is a great opportunity for AI. If there are many business opportunities, it is natural that entrepreneurship will increase in that field.

Americans have a mentality that enjoys competition, while Japanese people have a spirit of working together to move forward in a better direction. I believe it is important to take a sincere approach to addressing social issues by leveraging these characteristics to provide solutions.

Globalization of Social Issues

Haraoka Issues such as environmental problems, social divisions, and aging populations are becoming commonly shared by various countries. In that sense, I think the globalization of social issues is progressing significantly. So I also think it is important for organizations such as READYFOR and impact startups to promote international exchanges. What are your thoughts on this?

Mera As I mentioned earlier, I believe that one of Japan's winning strategies is to create solutions to social issues in Japan and then expand them globally. In our work in philanthropy and donations, we strongly feel there is a great need for grant-based funding around the world. As societies become more complex and it takes longer to implement solutions to problems, the lending terms of many funds are not aligned with their short time frame. As a result, there is a growing need for philanthropic funding and grants in various areas, and their importance is frequently discussed, particularly in overseas discussions.

Therefore, there is a need to further increase grant-based funding to solve social issues, and this trend is spreading worldwide. READYFOR hopes to work toward implementation in solidarity with these movements.

Haraoka The youngest entrepreneurs are students. Would READYFOR support initiatives that provide a forum for students to interact, connect, and discuss solutions to social issues?

Mera Yes. Many students are using the READYFOR platform to take on new challenges. Among social entrepreneurs and startup founders, I often meet people who say, "When I was a student, I used READYFOR to take on a challenge overseas." I am very happy to have been able to support such challenges. Personally, when I attended the Davos Conference at the age of 23, witnessing world leaders discuss social issues firsthand was a huge inspiration. The ability to naturally aim for maximizing the overall benefit of society rather than just personal gain was greatly influenced by the opportunity to engage in dialogue with world leaders in such a setting.

I believe that participating in such programs in your teens or twenties has a much greater impact on your life than doing so at the age of 60. That is why I feel it is extremely important for young people to participate in international exchange programs and connect with their peers to build friendships.

Haraoka For my last question, based on your impressions from having attended the Davos Forum, and perhaps also from your observations over the years, how would you assess Japan's position in the world today?

Mera I participated in Davos about 10 years ago, and at that time Japan's population decline was predicted, and economically speaking there were no companies recently born in Japan that stood out when compared to those founded after the war. As a result, there were few voices expecting leadership from Japan, and I remember feeling that reality strongly. This is something I didn't really notice when I was only in Japan, but it was a common view in discussions overseas. However, recently, through my interactions with people from other countries, I feel that the situation is changing somewhat. While there are geopolitical issues, there is a growing sense that we have no choice but to do something through Japan. Given this situation, I feel that there are high expectations for how Japan will cooperate with other countries in the future.

On a slightly different note, I feel that people overseas really like Japan. Perhaps due to the weak yen, I often hear people say that they want to visit Japan or go to Japan. Rather than Japan's economic strength, I am reminded of how much Japan is loved around the world. I think this is very important. There are many people who want to work in Japan or enjoy Japanese food culture, and Japan has a wealth of attractive cultural content. I believe that utilizing this history and cultural resources while forming alliances with countries around the world is in line with the values and mentality of the Japanese people.

Haraoka Thank you very much for your valuable comments. One last thing: given that social issues are becoming increasingly globalized, it may be true that Japan is becoming economically smaller, but as a country with many social issues it has a very important responsibility to resolve them. Would you agree?

Mera Yes, I think that's one way Japan can win.

Haraoka Thank you very much for your time.

Written and translated by Naoyuki Haraoka, editor-in-chief of Japan SPOTLIGHT, with the cooperation of Tape Rewrite Co.