#Japan #Tokyo #Venture Debt #Startup Funding #Funds Startups

Funds Startups' Annual Limited Partner Meeting

On May 25, 2026, Funds Startups, headquartered in Shibuya, Tokyo, held its second annual limited partner meeting for the Funds Venture Debt Fund No. 1. This event invited limited partners (LPs) involved with the fund to discuss operations and developments from the past year.

The meeting marked a significant milestone, being two years since the fund's inception. The event was structured into three main parts:

First Session: Fund Overview and Financial Report

In the first segment, representatives provided a comprehensive report on the fund's financial performance, discussing market conditions and highlighting significant activities over the past year. They also provided insights into potential future fundraising strategies, addressing the current environment in which startups operate.

Second Session: Insightful Talk Sessions

The second portion featured two engaging talk sessions aimed at promoting the fund's collaborative research concept. Expert advisers and startup representatives shared their perspectives:

1. Advisors' Panel:
LS Ventures' Mr. Kurihara and Evvanescent's Mr. Kurokawa took part in a session led by Koji Segawa. They discussed venture debt from the viewpoint of advisors, particularly focusing on opportunities within deep tech startups and the variations between Japan and overseas markets regarding growth phases.

The discussion highlighted the role of grants and the challenges startups face while trying to utilize debt amid complex market conditions, emphasizing the importance of private-sector involvement in this area.

2. Startup Presentations:
Company executives from Sorajima and Acompany shared their experiences on why they opted for debt alongside equity financing. They candidly explored the challenges associated with maintaining cash flow during early investment phases and the intricacies of explaining their market understanding to financial institutions.

The dialogue revealed the ideal lender traits that startups aspire to, providing valuable takeaways for the participating LPs.

Third Session: Networking Reception

The event concluded with a buffet-style networking session, promoting lively conversations among LPs, startup representatives, and advisors. This segment proved essential for fostering relationships and enhancing collaboration between startups and financial institutions.

Comments from CEO Hiroshi Maekawa

Hiroshi Maekawa, the CEO of Funds Startups, expressed his gratitude for the support received from LPs and stakeholders. He emphasized the fund's dedication to developing an ecosystem that empowers social-impact startups to achieve optimum growth. Since its establishment in March 2024, the fund has exhibited robust operations, considering over 400 investment evaluations and executing venture debt totaling approximately 41 billion yen across 16 companies.

Maekawa further discussed the dynamic changes in the startup market, which has experienced shifts due to revised IPO standards and the maturation of the VC industry. Amid these transitions, he acknowledged that while challenges exist, they also present opportunities for strategic M&A and diversification in exit strategies.

He reaffirmed the fund's commitment to leveraging venture debt, which is increasingly recognized as a vital financial mechanism within the startup ecosystem. By fostering a solid financial infrastructure, he believes it can significantly contribute to building a richer capital market for startups.

About Funds Startups

Funds Startups aims to create mechanisms that facilitate ideal growth for socially impactful startups. As a subsidiary of Funds, it will focus on both fund operations and providing support related to venture debt to financial institutions. Looking ahead, the company intends to diversify funding avenues for startups by establishing a role akin to an investment bank specifically for startup financing solutions.