#Japan #Tokyo #Relic #Virtual Wall #Gokuraku

Virtual Wall Expands Its Empire with Acquisition of Crowdfunding Service

In a significant development in the realm of real estate crowdfunding, Virtual Wall, a leading company in this sector, has announced its acquisition of the real estate investment crowdfunding construction service from Relic. Based in Minato, Tokyo, Virtual Wall is known for operating "Gokuraku," a popular crowdfunding comparison media platform. This acquisition is not just a business expansion; it serves as a strategic move to strengthen Virtual Wall's position as a key player in the real estate crowdfunding ecosystem.

The agreement has been formalized through a signed business transfer contract, which will see Virtual Wall integrate Relic's unique system assets into its existing operator-focused system called "Gokuraku Transfer Powered by Gokuraku." This integration will create a dual-functional platform that combines media and systems to propel the growth of the entire real estate crowdfunding industry.

Market Growth Background

According to the Ministry of Land, Infrastructure, Transport and Tourism, Japan's real estate crowdfunding market is on a trajectory of explosive growth. From a mere 1.27 billion yen in 2018, annual funding levels are projected to soar to 176.3 billion yen by 2024—an impressive 139-fold increase in just six years. Furthermore, the number of new projects has surged from 26 to an astounding 875 during the same period.

This rapid growth has been encouraged by the government’s policies aimed at shifting investments from savings to wider financial portfolios, making the market increasingly accessible for individual investors. The infrastructure provided by Relic, which now holds the number one share in the domestic market for real estate investment crowdfunding construction SaaS, stands as a vital pillar in supporting this expanding landscape.

Strategic Implications of the Acquisition

The acquisition is more than a simple portfolio extension for Virtual Wall; it establishes a foothold for the company as a comprehensive provider of platforms and ecosystems within the real estate crowdfunding market. Virtual Wall now has the resources to deliver value through both media and operational systems in a way that was previously unattainable, ensuring that users from both sides—investors and operators—receive a superior experience.

Future initiatives include a reward system called "Gokuraku Points," designed to enable a seamless investment experience across various operators while offering firms new avenues to engage with potential investors. This will create a more attractive and user-friendly environment within the industry.

Moreover, the integration of PMIs (Post-Merger Integrations) support from Relic will ensure that service quality remains high during the transition period. Existing users of the real estate investment crowdfunding construction service will find their service continuity assured, with no changes in current service offerings or contract conditions.

Leadership Perspectives

Kazu Atsushi Saito, the Representative Director of Virtual Wall, shared his thoughts on the empowerment that this acquisition brings. He stated, "As we move forward into an era of greater investor diversity and demand for transparency and efficiency, the challenges arising from an increasingly fragmented landscape are significant. The incorporation of Relic's system assets into our offerings allows us to address these challenges head-on."

Also providing insights, Takateru Kitajima, CEO of Relic, remarked on their evolving role from simply constructing operating systems to focusing on enriched user experiences for investors. "The partnership with Virtual Wall, a company genuinely committed to optimizing the investment experience, equips us to maximize the new service's potential," he added.

Overall, this transformative acquisition is positioned to reshape the real estate crowdfunding sector in Japan, promoting enhanced service delivery and laying the groundwork for a thriving investment ecosystem. Under the collaborative support of Virtual Wall and Relic, the future looks promising for both investors and crowdfunding operators alike.