#Japan #Tokyo #UPSIDER Capital #Mizuho FG #BLUE DREAM

Launch of the UPSIDER BLUE DREAM Growth Fund 2

In a significant development for the startup ecosystem in Japan, UPSIDER Capital, a subsidiary of UPSIDER, has announced the completion of the final close for its second venture debt fund, the UPSIDER BLUE DREAM Growth Fund 2, in collaboration with Mizuho Financial Group. This fund is set to operate with a total of 14.3 billion yen raised from a diverse set of investors including regional financial institutions and insurance companies. Following this, the combined total of funds under management, including the first fund established in December 2023, amounts to an impressive 24.3 billion yen, making it one of the largest independent venture debt funds in the country.

Background and Achievements of the First Fund

In December 2023, UPSIDER Capital launched the UPSIDER BLUE DREAM Fund, focusing on providing venture debt to growth-stage startups. Since its inception, the first fund has aimed to address the challenges startups and financial institutions face regarding funding and lending practices by leveraging technology.

UPSIDER has developed unique cash flow forecasting technology alongside a credit model that factors in business growth potential. This innovative approach has allowed for a rapid assessment and decision-making process, typically completing evaluations in under ten business days. Moreover, by utilizing bank APIs, they have achieved real-time cash flow monitoring and automated alert systems, thereby facilitating a more aggressive funding approach, capable of providing loans up to 1 billion yen.

As of the end of May 2025, the combined lending accomplishments between both funds have exceeded 13 billion yen, further solidifying their stature as one of the largest independent venture debt funds operating in Japan today.

New Investors Join the Initiative

In addition to Mizuho FG continuing as a major investor, various new financial institutions and institutional investors have joined the second fund as limited partners. This diverse group includes:

• - Kyoto Capital Partners
• - San-in Godo Bank
• - Nagoya Bank
• - Hiroshima Bank
• - Fukuoka Bank
• - Fukoku Life Insurance
• - Sumitomo Mitsui Trust Bank

The inclusion of such a wide variety of financial entities enhances the fund’s ability to operate as an open financial infrastructure that caters to startups across all regions and sectors.

Future Prospects

The establishment of this second fund highlights a shared understanding among participating financial institutions that a structural shift is needed in traditional lending models as the country faces social challenges such as depopulation and labor shortages. The innovative use of AI for cash flow predictions and a robust real-time monitoring infrastructure, which have received accolades from the financial sector, supports this venture.

UPSIDER Capital is committed to responding to this expectation by collaborating not only with startups but also with small and medium-sized enterprises and various financial institutions striving for innovation.

The aim is to build a more open lending platform that supports Japan’s economy as a whole, establishing new financial standards for the future.

Fund Overview

• - Official Name: UPSIDER BLUE DREAM Growth Fund 2
• - Operating Company: UPSIDER Capital
• - Total Investment Amount: Approximately 14.3 billion yen
• - LP Investors: Mizuho Bank, Kyoto Capital Partners, San-in Godo Bank, Nagoya Bank, Hiroshima Bank, Fukuoka Bank, Fukoku Life Insurance, Sumitomo Mitsui Trust Bank, UPSIDER
• - Target Borrowers: Growth-stage startups
• - Loan Amount: Up to 1 billion yen (per company)
• - Established: May 2025

About UPSIDER Capital

• - Location: 7-15-7 Roppongi, Minato-ku, Tokyo
• - Business: Management of the UPSIDER BLUE DREAM Fund and development of new financial services promoting sustainable growth for businesses
• - Representative: Naoki Ishigami
• - Website: http://upsidercap.com/blue-dream-fund
• - Shareholders: UPSIDER, Mizuho Innovation Frontier

For any inquiries regarding this announcement or for interview requests, please contact us at contact@upsidercap.com. Please note that the information in this press release is current as of the date of announcement.