CROWDFUNDING PIONEER WADIZ SURPASSES KRW 1 TRILLION IN GMV

Wadiz, a leading crowdfunding platform that gained recognition for enabling startups with zero-inventory product launches, has surpassed 1 trillion KRW in cumulative transactions, marking over a decade in business. This article will examine Wadiz's trajectory, which now extends beyond simple funding to include product distribution and direct investment, and discuss the achievements, significance, and future growth potential of the Korean crowdfunding industry. -Editor's Note

Wadiz, the pioneer of the Korean crowdfunding market, has established its position as the premier 'startup hub', achieving over 1 trillion KRW in total transaction value. It is noteworthy that Wadiz is leading the virtuous cycle of the startup ecosystem by going beyond reward-type funding to distribution and direct investment.

To illustrate, a successful 'funding' project on Wadiz, which receives positive user feedback, can lead to ongoing sales in the Wadiz Store. Businesses can also open up sales channels through offline exhibitions and get support to enter overseas markets. For promising ventures, Wadiz also engages in direct investment, effectively acting as a primary facilitator for small business startups.

Wadiz recently surpassed 1 trillion KRW in cumulative transaction volume, marking 10 years since the service's launch, following three consecutive months of unprecedented new project introductions, according to industry sources. The company explained that this cumulative transaction amount of 1 trillion KRW is significant as it represents the support and endorsement of the public, providing opportunities to makers with creative startup ideas but lacking funds.

Crowdfunding to become the #1 place to start a small business

The growth of Wadiz platform is remarkable. Wadiz has 6 million members and 10 million monthly visitors to the platform. The amount of follow-on investment raised by successful companies is over $800 million in undisclosed amounts. Public support and validation leads to institutional investment, creating a virtuous cycle of startup ecosystems within Wadiz.

Thanks to its unique structure, crowdfunding has garnered positive responses from early-stage startups. While most retail markets are only accessible to businesses with inventory, crowdfunding allows you to gauge market demand without inventory and dramatically lower the cost of initial production. It's optimized for small businesses that have an idea but are short on funds.

Reward-based funding projects that have raised nearly $2.8 billion in funding

Wadiz also excels at enabling businesses to build an early fan base and leverage it as a promotional channel. They can secure supporters who empathize with the makers' philosophy and the product's story and cheer them on as early fans, obtain feedback, communicate through in-platform news and social features, and develop their products. In addition, a successful funding history gives the product the title of "proven product" and generates useful PR and marketing effects when it launches.

In fact, there are many companies that have become stars through Wadiz. Luxury e-commerce company Trenby, craft beer Seven Brothers, wave power company Injin, luxury Korean beef suloin, and pet service Petpet were discovered through Wadiz.

Wadiz: Trusted for Funding... Built Trust Through 'Responsible Brokerage'

Wadiz has been dedicated to enhancing its accountable intermediation practices to build trust among funders. A key initiative is the 'Funding Refund Policy,' launched in 2020. If defects occur as defined by the Consumer Basic Law, or if the maker fails to meet the promised delivery date, users can apply for a funding refund in 'My Page' within 14 days of receiving the reward.

The Maker Trust Index is another metric for users to consider. It shows the maker's reputation, communication, popularity, and other factors to help participants decide whether to fund a project.

Additionally, to provide better services through voluntary reporting by members, all projects can be reported using the 'Report' button for cases of intellectual property rights infringement, false information in project stories, distribution of identical products through other channels, and community policy violations. Upon receipt of a report, Wadiz will review the report and follow up with the project based on the facts, such as temporarily suspending or canceling the project, deleting the post, or returning the funding.

Wadiz also publishes a transparency report, , which include details of reports and actions taken regarding project-related issues, and can be viewed through the Trust Center on the Wadiz website. It contains actual data such as response procedures and results of the actions taken, as well as responses to individual issues raised through the 'Report' function.

Beyond Funding: Wadiz Store for Ongoing Sales and Expansion into IP Goods

Products that receive positive user feedback through crowdfunding can be sold regularly through Wadiz Stor. This provides makers who started on Wadiz with the opportunity to continuously sell and grow their products and services. This offers makers, who started on Wadiz, a platform for ongoing sales and business expansion, effectively opening up new avenues for sales.

The response from users has been enthusiastic. Since only successfully funded products can enter the store, consumers tend to trust and purchase them as verified products. Additionally, consumers, who used to think 'funding' meant waiting a long time, are reportedly highly satisfied with 'WA Delivery' as they can receive products the day after ordering.

Wadiz is also evolving into a hub for unique merchandise, facilitating IP product development by linking brand owners with IP rights and innovative makers. This initiative, which spans from character goods to products featuring well-known brand logos, offers IP business opportunities to creators with original ideas and strong product capabilities. Essentially, Wadiz serves as a gateway for small and medium-sized businesses who find it difficult to engage in IP licensing businesses with big brands, offering them a new challenge.

Brands with IP such as 'Zanmang Loopy' by Iconix, 'MapleStory' by Nexon, 'Jinro Soju' by HiteJinro, 'League of Legends' by Riot Games, 'IONIQ' by Hyundai Motor, and even Disney, which owns 'Disney and Pixar characters,' have showcased various 'goods' through Wadiz.

"For more than 10 years, we have been creating various success stories with the continuous challenges and support of many people," said Hye Sung Shin, CEO of Wadiz. "We will continue to expand the solid value chain of startups so that small challenges can get big opportunities and sustainable growth."

(Original article: [Startup No. 1 Wadiz] Crowdfunding industry pioneerWadizWadiz' surpasses 1 trillion won in GMV... Leading a virtuous cycle in the startup ecosystem)