-Editor's Note- Wadiz, a leading crowdfunding platform that gained attention for its "no-inventory" business model, has surpassed 1 trillion won in cumulative transaction volume as it marks over a decade since its founding. We take a look at Wadizjourney—from simple funding to product distribution and direct investment—as it leads a virtuous cycle in the startup ecosystem, while also examining the achievements, significance, and future growth potential of the domestic crowdfunding industry.
Crowdfunding has established itself as a “pre-market distribution channel”… with an expected annual growth rate of 16%
According to U.S. market research firm Vantage Market Research on the 28th, the global crowdfunding market is estimated to grow at an average annual rate of 16.5% from $17.4 billion (approximately 23 trillion won) in 2021, surpassing 43 trillion won by 2025. Crowdfunding platforms making a name for themselves in the global market include “Kickstarter” and “Indiegogo,” and with global tech giant Amazon introducing a funding program called “Build It,” the market appears to be expanding further.
Internationally, crowdfunding has established itself as what is known as the “pre-launch market.” It serves as a platform for testing new products and gauging consumer response, as well as an opportunity to build a base of loyal fans. Backers who recognize a product’s quality early on—even during the production phase—also act as promotional ambassadors, helping to spread the word to others.
A reward-based crowdfunding project that raised approximately 2.8 billion won
It also serves as a testing ground for products from large corporations. In Korea, National Geographic unveiled a camping tent through Wadiz. The company subsequently upgraded the tent based on user feedback and raised 2.8 billion won in just 10 minutes after the campaign launched. Nongshim also first introduced its dried food product, “Simplate,” through Wadiz.
The crowdfunding market is expected to continue growing in the future. In particular, there are predictions that social media platforms will accelerate the growth of the crowdfunding market. The Business Research Company, a UK market research firm, analyzed that “social media is being used as a tool to promote crowdfunding activities and raise funds for crowdfunding campaigns by leveraging internet platforms,” adding that “as the use of social media increases, demand for crowdfunding is bound to rise.”
As the global crowdfunding market continues to grow,Wadizhas emerged as a leading crowdfunding platform in South Korea. Founded in 2012 by CEO Shin Hye-sung, Wadizpioneered the domestic crowdfunding market—which was virtually non-existent at the time—and recently surpassed 1 trillion won in cumulative transaction volume. There are countless examples of ideas successfully turned into products through Wadiz. Luxury e-commerce platform Trendy, craft beer brand SevenBrew, wave power company Injin, premium Hanwoo beef brand Seoloin, and pet-related service FitPet are all companies discovered through Wadiz.
Wadiz, a pioneer in the domestic crowdfunding market, is expanding its influence overseas
Having dominated the domestic market, Wadizis now expanding its business overseas. Having previously partnered with Taiwan’s largest crowdfunding platform, “ZekZek,” in 2019 to support Korean companies’ entry into the Taiwanese market, Wadizhas now joined forces with Japan’s largest crowdfunding platform, “Makuake,” to expand the crowdfunding markets in both Korea and Japan.
Makuake is a leading Japanese crowdfunding-based support-purchase platform. It went public on the Tokyo Stock Exchange in December 2019 and has successfully funded projects totaling 80 billion yen (approximately 724 billion won).
Ryotaro Nakayama, CEO of Makuake (left), and Hye-sung Shin, CEO of Wadiz, pose for a commemorative photo.
Wadizhas positioned itself as a gateway for products that have successfully secured funding in Korea to enter the Japanese market. The platform operates a “Fast Track” program for makers who meet certain criteria—such as raising over 20 million won Wadizand achieving a high project rating—which grants them a dedicated representative at Makuake’s Korean office and priority review of their projects, all based on Wadizrecommendation.
Conversely, Wadizalso assists Japanese companies looking to enter the Korean market. Wadizdesignates partner companies capable of handling all aspects of planning and operations for Wadiz Global Projects—including the creation of Korean product pages, marketing, import/customs clearance, logistics, and customer service—as global partners, and provides a service that connects overseas makers in need of local partners with these partners.
The "Briefing on Entering the Korean Market," recently held in Japan in collaboration with Makuake, was attended by numerous promising lifestyle brands from Japan—a manufacturing powerhouse with a long history and tradition—including a shoe manufacturer with 70 years of history and a jeans company.
Seichiro Ueda, Vice President of the Japanese company Brightway, who attended the event, said, “I’ve been very interested Wadizthe Korean market and Wadiz, so I’ve been checking them out frequently. I’m very pleased to hear that Wadizis taking the initiative to help Japanese manufacturers enter the market.” He added, “I gained valuable insights from the briefing, and we plan to launch products that were successfully funded on Makuake Wadizearly next year.”
Shin Hye-sung, CEO Wadiz, emphasized, “Through strategic partnerships with various global platforms and distribution channels, we aim to serve as a springboard for Wadiz makers to expand into overseas markets, while also establishing ourselves as the first gateway for foreign companies entering the Korean market.”
(Original: [Startup Hub Wadiz] With a market size ofWadiz…Wadiz sets out to expand into the global crowdfunding market)
