Hubble Leverages Siiibo for Efficient Bond Issuance in Japan
In a remarkable development for the Japanese LegalTech sector, Hubble Co., Ltd., a technology company focused on optimizing contract management, has successfully completed its first private bond issuance utilizing the specialized securities platform from Siiibo Securities Co., Ltd. This event signifies a pivotal moment in Hubble’s journey as it aims to empower legal processes through innovative advancements.
The Bond Issuance Process
Hubble, headquartered in Shibuya, Tokyo, employed Siiibo Securities—known as Japan's only specialized online platform for bond issuance—to facilitate its online private offering. This groundbreaking approach not only allows Hubble to raise funds but also reflects a shift in how LegalTech companies can access capital markets. The bond issuance is targeted at investors who share an affinity for Hubble's services, with some expressing direct experiences tied to formerly utilized company services.
CEO Shinpei Hayakawa articulates that the chosen funding route via Siiibo represents Hubble’s commitment to modernizing contract management using AI and cloud technology, making legal operations more efficient. Hubble’s main offerings include a comprehensive cloud service designed for seamless contract creation, review, and management—facilitated through tools like “Hubble mini,” which harnesses AI to automatically analyze uploaded contracts for immediate data extraction.
Hubble’s Impact and Future Development
The funds raised from this bond issuance are earmarked for extensive research and development in advanced technologies, particularly those integrated with generative AI that extend beyond the legal sphere. This includes bolstering their sales and marketing efforts while enhancing recruitment and organizational capabilities to accelerate growth and service expansion.
Advantages of Siiibo’s Bond Issuance
Siiibo’s platform offers unique benefits that set it apart from traditional funding avenues. Because it operates strictly as a debt instrument, there’s no dilution of equity for Hubble or similar firms. The bonds issued through Siiibo have flexible repayment terms averaging between 2 to 4 years, which accommodates various financial strategies. This flexibility allows companies to pursue inorganic growth strategies without heavy initial capital outlays. Additionally, the absence of management guarantees or financial covenants simplifies the funding process for startups and emerging enterprises.
Notably, Hubble is among over 500 companies utilizing the platform, with a commendable retention rate of 99%. This indicates a solid acceptance of Hubble’s services in the marketplace, showcasing the demand for effective contract management tools that facilitate collaboration between legal departments and business units.
Insight from Investors
Investor reactions to the bond issuance have been encouraging, with feedback highlighting the societal necessity of Hubble's services. Comments from bond purchasers include sentiments about Hubble’s operational relevance and the anticipation of social cost reduction through their innovations. This bond issuance exemplifies a supportive ecosystem where users of Hubble’s services converge with investors who believe in the potential impact of LegalTech.
In summary, Hubble's bond issuance through Siiibo not only enhances its financial footing but also reinforces the growing trend of utilizing specialized platforms for corporate funding. As the landscape of online securities continues to evolve, Hubble stands at the forefront, ready to harness the advantages of cutting-edge technology to transform legal operations while enabling a more profound engagement between businesses and their stakeholders.