Music Securities

Music Securities Inc. operates as a specialized financial services firm in Japan, pioneering a unique, empathy-driven approach to funding that bridges the gap between individual investors and businesses that traditional financial institutions may overlook. The company was founded in December 2000 by Masami Komatsu, a former professional drummer and composer with a graduate degree in finance, accounting, and law. Komatsu's experience as a musician highlighted the challenge of maintaining creative independence without economic independence, as artists often had to align with major record labels to secure production funds. This insight led him to establish Music Securities, initially as a one-man operation, to provide an alternative financing route for musicians.

The firm's core business revolves around its impact investment platform, "Securite," launched in 2009. This platform facilitates investment-based crowdfunding, allowing individuals to make micro-investments in a wide array of ventures, including music artists, university research projects, sake breweries, and small to medium-sized enterprises (SMEs). The business model is not based on traditional debt or equity; instead, investors enter into an anonymous partnership agreement and are entitled to receive a percentage of the business's revenue, along with potential non-financial returns like products or unique experiences. Music Securities generates its earnings primarily through commissions, while the returns are passed on to the investors. The platform manages the entire process, including due diligence, payments, monitoring, and auditing.

A significant milestone for the company was the establishment of the "Securite Disaster Area Support Funds" following the Great East Japan Earthquake in 2011. This initiative raised over ¥1 billion from tens of thousands of investors to support businesses devastated by the disaster, blending donations with investment to facilitate recovery. The company has since expanded its scope to include international micro-financing in countries like Cambodia and Vietnam and has collaborated with organizations such as the Inter-American Development Bank on projects in Peru. The investment criteria for all projects on the Securite platform are guided by three main factors: the strength of the business model, the expected financial return, and the potential for positive social and environmental impact.

Keywords: impact investing, crowdfunding, micro-investment, social finance, revenue-sharing, empathy-based finance, SME financing, disaster recovery funding, artist financing, Japanese fintech, Securite platform, alternative finance, community investing, social enterprise funding, sustainable investment, project finance, Masami Komatsu, creative economy, unlisted companies, non-financial returns