#Japan #Tokyo #M&A #Willgate #Startup Connect

Willgate and Startup Connect: A New Era of Startup Support

In an exciting development for the startup community, Willgate Co., Ltd., known for its expertise in M&A services within the venture and IT sectors, has joined forces with Startup Connect Co., Ltd., operators of a matching platform that connects promising startups with their supporters. Located in the Minato ward of Tokyo, both companies aim to transform the startup landscape in Japan through this strategic alliance.

The Background of the Partnership

Unlike their counterparts overseas, where M&A (mergers and acquisitions) have become a standard exit strategy for startups, Japanese companies have traditionally favored IPOs (initial public offerings). However, recent shifts in market conditions and the reevaluation of listing criteria have led to a diversification of exit strategies in Japan. As a result, more enterprises are considering M&A as a viable option. This trend contributes not only to the emergence of angel investors and serial entrepreneurs but also provides startup founders with promising choices for their future endeavors.

Willgate, through its M&A support services, has successfully facilitated numerous transactions that connect entrepreneurs' visions to their subsequent business ventures. Similarly, Startup Connect, with its matching platform, has championed the growth and innovation of startups by fostering connections with supportive stakeholders.

The partnership between these two organizations sets the stage for an enriched ecosystem that nurtures startup growth while creating robust exit strategies. Their collaborative efforts aim to generate a positive cycle of value creation among entrepreneurs, supporters, and business enterprises.

Key Areas of Collaboration

The partnership has laid out several key initiatives:

• - Promotion of Matching Services: They will introduce and connect companies seeking M&A and business succession opportunities.
• - Support for EXIT Strategies: Both firms will leverage their expertise to establish a robust support system for EXIT strategies and the M&A process.
• - Ecosystem Enhancement: Together, they aspire to invigorate the startup ecosystem through supportive exit strategies and transformational challenges.

Messages from the Leadership

Ryo Yoshioka, Executive Director and Co-Founder of Willgate

Ryo Yoshioka has emphasized the importance of fostering a conducive environment for young entrepreneurs in Japan. He stated, “Willgate M&A specializes in growth-oriented M&A, assisting numerous up-and-coming entrepreneurs in their journeys. While it's evident that many wish to challenge the status quo, the restrictive perception around IPOs has limited their horizon. Unlike the U.S., where M&A is prevalent, Japan faces a scenario where only 30% resort to M&A, signifying our status as an ‘M&A backward country’. We believe it’s imperative to establish M&A as a contemporary and attractive option, promoting its viability alongside IPOs. Through this collaboration with Startup Connect, we aim to broaden the scope of possibilities for startups.”

Daisuke Teraoka, CEO of Startup Connect

On his part, Daisuke Teraoka reinforced the perspective that EXIT isn’t merely an endpoint but the beginning of renewed challenges. He noted, “In Japan, there’s often a tendency to prioritize IPOs over other avenues. With our partnership with Willgate, we are now positioned to assist startups throughout their entire journey—from growth to exit, establishing a seamless transition that provides sustainable value creation for all stakeholders involved. We aspire to solidify a startup ecosystem that encourages and rewards innovative challenges.”

Services Overview

Willgate M&A offers a free engagement fee structure with a complete success-based fee model, making it accessible for startups. Since its inception, it boasts 83 successful transactions, underscoring its efficiency and effectiveness in M&A facilitation. Boasting a vast network of over 17,400 potential acquirers, Willgate’s expertise lies in the IT and venture space, promoting rapid execution and valuable negotiations.

In contrast, Startup Connect has launched its platform—designed to connect vetted startups with proficient supporters—aiming to foster a vibrant community facilitating mutual assistance. In its short tenure, it has seen a staggering increase in both support members and successful matches between startups and supporters.

The future looks promising for both Willgate and Startup Connect as they embark on this collaborative journey to redefine the startup ecosystem in Japan, enabling entrepreneurs to thrive and succeed in all facets of their business endeavors.