#Japan #Tokyo #strike #ForStartups #Mergers & Acquisitions

Unleashing the Future of Startups: Collaborative M&A Support by Strike and ForStartups

In a significant move toward fostering the startup ecosystem in Japan, Strike Co., Ltd. and ForStartups, Inc. have solidified their collaboration to create a robust support framework for mergers and acquisitions (M&A) aimed at startups. This partnership, coming on the heels of Strike's investment in ForStartups in February 2024, aims to broaden the M&A options available to burgeoning companies, promoting sustainable growth in an ever-changing economic landscape.

The Evolution of the Partnership

Strike, a leading M&A intermediary based in Chiyoda, Tokyo, recognized the need for a collaborative approach in the fast-evolving startup landscape. By joining forces with ForStartups—known for its dedication to supporting growth industries—the two companies intend to provide a comprehensive support system tailored for startups looking to explore various exit strategies, including M&A.

The startup market in Japan is rapidly growing, with many businesses seeking diverse pathways to scale beyond initial public offerings (IPOs). Emphasizing the pressing importance of M&A, particularly for startups with high-value products, technologies, and talent, this partnership aims to address the evolving needs of enterprises within the startup ecosystem.

Implementing a New Support Structure

The collaboration establishment aligns with trends indicating that many startup companies are leaning toward non-linear growth strategies through M&A. With changes in the listing maintenance criteria of the Tokyo Stock Exchange's growth market, there is an increasing inclination for startups to strategically consider M&A as part of their growth strategies both pre- and post-listing.

ForStartups has built a vast network within the startup ecosystem, operating platforms such as the STARTUP DB, which connects various startups, entrepreneurs, and venture capitalists. On the other hand, Strike leverages their extensive experience in M&A, particularly focusing on mid and small-sized enterprises, to facilitate strategic exits for these startups.

By understanding the dynamics unique to startups, the collaboration fosters growth strategies from their nascent stages, helping ensure that robust exit strategies are implemented effectively.

Details of the Collaboration and Support Flow

The framework established for this collaboration is outlined below:

• - Strike: As a distinguished M&A intermediary, Strike is responsible for executing support through matching, condition design, and closing transactions.

• - ForStartups: Utilizing their expansive network, ForStartups will conduct exploration and information dissemination for potential M&A candidates, including both sellers and buyers.

Leaders from Both Companies Weigh In

Commenting on the partnership, Kunihiko Arai, President of Strike, stated, “Since establishing our Innovation Support Office in October 2021, we have made significant strides in facilitating collaborations and M&A support between startups and established businesses. By merging our expertise with ForStartups, we aim to develop a more flexible and multifaceted support system that accelerates the growth of startups and builds sustainable business models.”

Meanwhile, Yuichiro Shimizu, President of ForStartups, added, “For startups, an exit isn’t merely an endpoint; rather, it marks the beginning of a new challenge. Establishing an environment where M&A becomes a conventional choice allows entrepreneurs and investors to craft more flexible strategies, a necessary component for future ecosystem growth. I am eager to elevate the feasibility of these strategies through our collaboration with Strike.”

Company Overviews

Strike Co., Ltd.

• - Name: Strike Co., Ltd.
• - CEO: Kunihiko Arai
• - Founded: July 1997
• - Business: M&A Intermediary
• - Stock Code: 6196 (Listed on Tokyo Stock Exchange Prime Market)
• - Address: 15F Mitsui Bussan Building, 1-2-1 Otemachi, Chiyoda, Tokyo
• - Website: Strike

ForStartups, Inc.

• - Name: ForStartups, Inc.
• - CEO: Yuichiro Shimizu
• - Founded: September 1, 2016
• - Business: Growth Industry Support
• - Stock Code: 7089 (Listed on Tokyo Stock Exchange Growth Market)
• - Address: 31F Mori JP Tower, Azabudai 1-3-1, Minato, Tokyo
• - Website: ForStartups

This impactful collaboration between Strike and ForStartups signifies a major development for the startup realm, paving the way for enhanced growth, strategic planning, and successful exits. As such, it serves not only as a visionary alliance but also as a call to action for startups to re-evaluate their growth strategies within the dynamic landscape of the Japanese economy.