#Japan #Tokyo #Venture Debt #Funds Startups #LP Meeting

Funds Startups' First Annual Limited Partner Meeting

On May 26, 2025, Funds Startups Co., Ltd. held its first annual Limited Partner meeting for the "Funds Venture Debt Fund No. 1 Investment Business Limited Liability Association". The event took place in Shibuya, Tokyo, under the leadership of Hirohira Maekawa, the company's representative director.

As the fund approaches its one-year anniversary since its inception in March 2024, this meeting served as an important milestone. The gathering included a comprehensive report on the fund’s activities, followed by practical knowledge sharing sessions aimed at furthering the fund's collaborative research concept.

Meeting Structure

The meeting was segmented into three parts:

Part One: Fund Reporting

In the first part, the attendees received a performance overview, inclusive of financial results and market conditions. Highlights of Funds Startups' operations, alongside investments under consideration and future fundraising efforts, were also presented.

Part Two: Talk Sessions

Two engaging talk sessions took place in the second part:
1. LP Talk Session: Notable representatives from Resona Bank and Sumitomo Mitsui Trust Bank discussed their respective efforts in venture debt, facilitated by Koji Kojiima from Funds Startups. They shared insights on the challenges within their institutions and how venture debt is gaining traction as a new product.
2. Investee Talk Session: Following this, a session featuring speakers from Iris Co., Ltd. and Eitarink, Inc., facilitated by Principal Kohara, focused on how deep tech startups can utilize venture debt. This discussion highlighted the unique hurdles these startups face in fundraising, including specifics around project financing and lender communications.

Attendees gained valuable insights into the timing and application of debt, as well as the anticipated collaboration between financial institutions and startups.

Part Three: Networking Reception

To conclude the day, a buffet-style networking reception was held, providing attendees an opportunity to engage actively with each other, facilitating lively discussions and connections between startups and financial institutions.

Comments from the Representative

Hirohira Maekawa expressed his joy in hosting this momentous first annual meeting, crediting the success to the continuous support from partners. This fund aims to serve as a leading independent venture debt option in Japan, advancing to surpass the established goal of 3 billion yen within its first year of operation.

Funds Startups emphasizes the healthy and sustainable development of the venture debt market in its early stages, intending to serve as a 'first penguin' in exploring various opportunities in this domain.

Focus on Deep Tech Financing

The company remains committed to addressing financial needs that traditional financing often overlooks, particularly in the deep tech space. They have provided substantial funding for scaling after research and promoting long-term financing through subsidies, supporting varied financial needs specific to deep tech ventures. Recent efforts also include leading venture debt initiatives by submitting competitive term sheets.

Additionally, Funds Startups actively participates in outreach efforts to promote knowledge about venture debt, collaborating with the National Bank Association and engaging in media outreach to clarify and educate about the opportunities available in this market.

Market Changes and Future Directions

The venture debt market is in a state of rapid evolution, influenced by persistent changes in both debt and equity environments. As Japan transitions away from negative interest rates, competition in lending is expected to intensify. The environment for small IPOs has also begun to change positively, contributing to the overall evolution of the capital markets.

In light of such current dynamics, the mission remains to develop a supportive framework for startups aiming for social impact, ensuring they can achieve optimal growth through venture debt avenues. The organization urges any startups in need of venture debt funding to reach out for further discussions.

About Funds Startups Co., Ltd.

Funds Startups was established in December 2023, as a wholly-owned subsidiary of Funds Inc. It operates with a mission to create optimal growth mechanisms for startups that produce significant social impact. As the General Partner of the Funds Venture Debt Fund, the firm focuses on managing fund operations and supporting financial institutions with venture debt strategies. Plans are underway to also function as a specialized investment banking entity for startups to diversify their funding approaches. Visit Funds Startups for more information.