【vol.1】Why 021 Fund Invested in Gaudiy Inc. "we may need two types of producers in the future."
Last June, Bandai Namco Entertainment 021 Fund invested in Gaudiy Inc., a company that provides and operates “fan economies” using blockchain technology.
Also in June, we invited Bandai Namco Entertainment’s CEO Miyakawa and Gaudiy’s CEO Ishikawa-san to discuss topics such as “Web 3.0” and “fan communities” in order to introduce Gaudiy’s business to the entire Bandai Namco Group.
Here is an excerpt of the discussion organized into three parts: why we invested in Gaudiy, the Web 3.0 concept in the context of entertainment, and an ideal structure of fan communities.
Kazama
We announced the investment on June 1st, 2022. That was about two months since our Bandai Namco Entertainment 021 Fund started on April 12th.
I’d like to first ask about the reasons behind this investment.
Miyakawa-san, what made you decide to invest in Gaudiy?
Miyakawa
When Ishikawa-san introduced the company to us, he told us that Gaudiy’s mission was to “push the era forward with fans,” which resonated with me a lot. Their mission is almost the same as our midterm vision, “Connect with Fans.” We were both aiming to forge a relationship with our fans and create something together.
For about a year and a half, I had been thinking about this idea of focusing on our IPs and creating something with our fans, but in a space where Bandai Namco protects the various rights. And we were discussing and building on the idea of having our fans gather in a single space and engage in different activities. That was when the 021 Fund Team invited Ishikawa-san to give a pitch presentation.
In the presentation, I found out that my vision and Gaudiy’s vision were identical. They were also talking about starting something with the fans, and they placed IPs in the center of their concept, just like Bandai Namco.
Kazama
So that match was the biggest factor?
Miyakawa
Yes.
And I’ve also felt that whenever I talk to technical specialists like Ishikawa-san, our conversations turn into technical discussions. But with Ishikawa-san, our conversation revolved around his love for IPs.
Technical discussions are important, but I’ve always wanted to work with technical personnel who love IPs and entertainment. Ishikawa-san’s presentation convinced me that we could work with his company to figure out how to compete in the global market while focusing on IPs. That’s why I immediately decided to make the investment.
Kazama
I was also at the Investment Committee when the presentation took place, and I did feel that Ishikawa-san’s words resonated with Miyakawa-san.
Now, I want to ask Ishikawa-san why you put more focus on IPs than technology in the presentation.
Ishikawa
Well first of all, I’ve always loved entertainment.
Miyakawa
What was the first form of entertainment you got into?
Ishikawa
I enjoyed JUMP comics. I also loved video games.
As an engineer, I really enjoy looking at architecture from an engineer’s perspective. And because of that, I don’t enjoy things that are cluttered and superficial.
For example, we don’t watch YouTube as a platform. We watch the content on the platform. So the content creators deserve the most respect, and I want to create a structure where those creators get rewarded more. That would motivate more people to become creators and we can appreciate more enjoyable content. That’s what I want to do the most.
I once told Miyakawa-san that I’m jealous of people that can make entertaining content because I can’t do that. On the other hand, I can change the existing systems that exploit the creators or hog all the data. I consider my role as someone who enables people to do things they can’t do because of technological limitations.
In other words, I wanted to understand what the creators want to do, get rid of people that want to trick those creators, and work on different ways to turn this world into a place filled with entertaining content. That’s why when Miyakawa-san told me about the Gundam Metaverse concept, I wanted to help bring that idea to life from the back end.
Miyakawa
What he just said surprises me because Ishikawa-san clearly thinks like a producer.
And now I’m thinking we may need two types of producers in the future. I’m a producer who works with creators to produce different things. I’m a producer that tries to understand the creators, collects money, and delivers the creative output as videos and music.
But I think we also need a technological producer.
As two different types of producers, I can clearly visualize ourselves working together to produce something with creators and brainstorm ways to use technology to help the process.
Kazama
Ishikawa-san said earlier that he respects content creators. So is that why you chose us as an investor and partner?
Ishikawa
Yes, that is true. I’ve always respected content creators.
To add to that, everyone I met at Bandai Namco was conscious about “how to excite the fans” and “how to create interesting content.”
Seeing that your thought process started with that mindset made me feel really comfortable. Many platform builders start talking about fees and other money-related topics, but Bandai Namco was different.
I’m not that interested in financial success. I think money is just a tool for creating high quality content. And I realized that you had the same philosophy as mine. It felt comfortable to have discussions with you, and I learned a lot from our conversation. That’s also what made me want to partner with Bandai Namco.
Miyakawa
Money is definitely an important tool. That is like the blood of our business. But in the entertainment industry, I don’t think financial success is our goal. It’s more important to focus on creating something that is good, new, or makes everyone happy.
Ishikawa
I respect the fact that everyone I’ve met had that mindset.
Discussion continues to vol.2: The Web 3.0 Concept in Entertainment
■Overview of Bandai Namco Entertainment 021 Fund
Main investment targets
Blockchain, VR/AR/xR, AI in Japan and overseas Entertainment utilizing technologies such as products and services related to, and In addition, Metaverse, startup companies engaged in Web 3.0-related businesses, etc.Target stage
Companies in a wide range of growth stages from pre-seed to later stageScale of investment
Approximately 1 billion yen per year (3 billion yen over 3 years)Ticket size
10million to 500 million yenOfficial website
https://021fund.bn-ent.net/en/ (English)
https://021fund.bn-ent. net/ (Japanese)