Growing interest in investments that create social value

Wadiz announced the 2017 alternative investment trends revealed through over 1,700 Wadiz funding projects conducted this year.

This year, Wadiz successfully completed a total of 1,721 funding projects (1,640 reward-based and 81 investment-based) and raised approximately 28 billion won (about 13 billion won for reward-based and about 15 billion won for investment-based) from about 170,000 general investors. In terms of the number of successful funding projects, investment-based funding grew by 66% and reward-based funding by 68% compared to the same period last year.

Yoon Seong-wook, Director of Investment Business at Wadiz, stated, “As the reach of crowdfunding expands, interest in investments that create social value, rather than simply investments for making money, has increased significantly.” He added, “Furthermore, as the general public steps forward to invest in fields they like and are familiar with, Wadiz’s crowdfunding is even serving as a barometer showing how public interests are changing.”

The theme that most actively drove Wadiz funding this year was the "YOLO life" craze. There was a strong trend of investing not merely for profit generation, but as a means to enjoy their lives more fully.

The 'Dajayo' project, which converts vacant houses in Jeju Island into accommodations, achieved its funding goal of 200 million won within a month of launching. This was due to the positive response to the concept of owning one's own vacation home in Jeju while earning income on a regular basis. In addition to this, projects that allow people to invest in hobbies and leisure activities to enjoy them while earning profits, such as 'Dive Memory,' which received a great response from scuba diving enthusiasts, have achieved successive successes.

The second trend is that true social commerce innovation, where producers and consumers meet directly, has begun to take place. Thanks to the advantages of producers being able to secure customers in advance without the burden of distribution networks and inventory management, and consumers being able to purchase products at more competitive prices, various products have succeeded in finding a way forward through Wadiz funding.

In particular, the 'Shaple' travel suitcase project, which featured an unconventional price and novel design, succeeded in raising 1.5 billion won, rewriting the history of the highest amount ever raised in crowdfunding. In addition to the Shaple project, products such as the electric scooters 'Ninebot' and 'iRoad' achieved 2,500% and 4,000% of their planned funding goals ahead of schedule, respectively, demonstrating that Wadiz Funding served as a stepping stone for startups in various fields to establish themselves.

It is also noteworthy that a virtuous cycle has been created in the F&B industry, which was a blind spot for existing funding, through crowdfunding . As consumers who participated in funding became loyal customers, makers were able to attract both customers and investment simultaneously, and furthermore, create a new business model in which marketing is carried out through customers.

Seven Broy, one of the first craft beer companies, secured loyal customers through crowdfunding and gained word-of-mouth popularity, eventually becoming known as the "President's Beer" and establishing itself as a leading company in the craft beer market. Similarly, Sukdal Pig, which is creating a food culture targeting the younger generation, also succeeded in expanding its regional presence and acquiring customers through Wadiz funding.

As public awareness of social values increased , investments in related projects also gained popularity. "Good investments" that create social value, such as "Hongguna Tteokbokki," where a person became a garaetteok expert by focusing on their field even while giving up their studies, and "Easy & More," which aimed to introduce menstrual cups in Korea, attracted the attention of many investors, and they also realized the power of crowdfunding through results that actually changed society.

The fifth and final trend is that crowdfunding has fully established itself as an essential process for investing in cultural products. In the past, crowdfunding was perceived as a last resort to raise insufficient production funds during the film production process, but now it is being utilized as a key tool for securing loyal customers and generating word-of-mouth in advance.

The documentary film 'Roh Moo-hyun Is', which was nearly unable to be released due to difficulties in raising production funds, set a box office record by achieving its fundraising goal in the shortest time through the power of the public, and the musical 'Cats' satisfied public needs by diversifying cultural content genres such as musicals, plays, performances, and festivals, going beyond the film genre that was previously active in cultural product funding.

Shin Hye-sung, CEO of Wadiz, said, “One of the most important achievements of this year is that Wadiz funding has shown that success is possible as long as there are outstanding ideas and product capabilities that capture public trends,” adding, “Next year, Wadiz will continue to be a platform that identifies public needs and creates trends together with the public through valuable funding in various fields.”