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Enhancing Fund Management Efficiency through Collaboration

SmartRound Co., Ltd., based in Chiyoda, Tokyo, has announced a significant expansion of its collaboration network aimed at improving fund management operations. The enhancement involves a partnership with two new firms, AGS Consulting and NEXPERT Consulting, alongside the existing collaboration with Krafus Audit Corporation. This initiative promises to create a more robust ecosystem within the investment management platform, "smartround," where general partners (GPs), fund administrators, auditing firms, and limited partners (LPs) can all share data seamlessly.

Background: Challenges in Japan’s VC Fund Operations

Many venture capital (VC) funds in Japan still rely heavily on manual processes involving Excel and paper documents for tasks like capital calls, distribution calculations, and financial auditing. This outdated method presents numerous challenges regarding both operational efficiency and governance transparency. SmartRound aims to tackle this issue by offering a SaaS platform designed specifically for VC investment management, targeting the administrative tasks that can bog down fund operations. Starting in November 2024, SmartRound will also collaborate with Fundkey Co., Ltd. to offer comprehensive administrative support for VC funds from their establishment through to operation and financial reporting.

Expanding the Support Team

By bringing AGS and NEXPERT into the fold, SmartRound is broadening the range of services it offers to include not just fund establishment and operation but also management practices. The participation of Krafus, founded in May 2025, ensures that auditing perspectives will enhance the comprehensive support provided. Members of Krafus have substantial experience in auditing funds from their prior tenure at one of the Big Four audit firms, which they will leverage to improve the efficiency and governance of VC fund administrative tasks.

Collaboration Details

The new collaboration will be structured as follows:

• - Fund Establishment: Support from Fundkey, AGS, and NEXPERT includes assistance with creating and submitting necessary documentation and managing the legal paperwork for partnership agreements.
• - Fund Operations: The same partners will handle capital call management, distribution inflow/outflow, automatic performance report generation, and integrations with LP portals.
• - Financial Closing and Auditing: Guidance from Krafus will support efficient closing processes and recommend improvements in governance structures.
• - Data Infrastructure: SmartRound will manage the data foundation, implementing automated access controls and logging to enhance transparency.

Through these measures, the aim is to significantly enhance the transparency and efficiency of fund operations. The collaboration is open to attracting additional partners to further strengthen this ecosystem.

Anticipated Effects

1. Standardization and Efficiency: By templating best practices across companies, redundancies in data entry can be eliminated, leading to more streamlined processes.

2. Enhanced Transparency and Trust: With all stakeholders reviewing the same data, accountability and clarity in operations can be achieved more effectively.

3. Evolution and Expansion of VC Business: Reducing administrative burdens allows partners to focus on creating substantial value through new investments and hands-on support for startups.

Commentary from Leaders

Dai Sunakawa, CEO of SmartRound

"To ensure the sustainable growth of the startup ecosystem, it is essential for investors and startups alike to operate in a supportive environment that encourages opportunity. Through this collaboration, we aim to dismantle the barriers of management and auditing that VC funds face, utilizing both technology and expertise to unlock the ecosystem's full potential."

Yuichiro Takase, Krafus Audit Corporation

"In our experience with fund audits, we've recognized considerable room for improvements in the digital transformation of closing and auditing processes. SmartRound’s vision for admin efficiency strikes me as a viable solution to this issue, and we are committed to developing a new audit model based on digital data that bolsters industry trust."

Yoshihide Hiroto, AGS Consulting

"For collaboration among startups, investors, and corporate venture capitals, there are multiple challenges, particularly around information management. Through SmartRound, we can facilitate smoother communication among various players within the ecosystem, enabling them to focus on future developments."

Keisuke Asari, NEXPERT Consulting

"We are thrilled to announce our partnership with SmartRound. A conducive environment for VCs is crucial for the growth of startups, which in turn correlates directly with Japan's sustained economic growth. SmartRound’s innovation in streamlining back-office operations offers a solid foundation for strengthening startup support through our collaboration."

Shoichiro Sakairi, Fundkey

"For improving governance and operational efficiency in VC fund management, it is imperative that technology and practical expertise work in tandem. Together with trusted partners, we are excited to establish a new standard in operations on the smartround platform."

Conclusion

As the industry evolves, SmartRound continues to lead the charge in creating innovative solutions for the fund management sector. Their recent partnerships are a testament to their commitment to ensuring the prosperity of the startup ecosystem by tackling long-standing challenges head-on.

For further inquiries regarding these new developments or services, please don't hesitate to contact SmartRound's public relations team via email at pr@smartround.com.