Japan Growth Capital

JAPANESE

STARTUP INVESTMENT FOR BROADER INVESTORS
Message from the Management
In recent years, Japan’s startups require more growth capital, and this trend is expected to continue and to accelerate.  However, except for large institutional investors, most investors lack sufficient channels or opportunities to allocate their investment capital toward startups.
We see this as the pain in our society.  To tackle this pain, we have decided to set up an investment corporation for startup investment and will list equity of the investment corporation on the Tokyo Stock Exchange Venture Funds Market.  While investing into startups, the investment corporation will be able to provide liquidity on the market, therefore, it will be better suited to broader investors as a vehicle for startups investment, and will source more capital.  The investment corporation will become a cross-over shareholder for startups because the fund has no maturities.
Through our activities, we will help funding flow more efficiently in Japan, supporting startups, and contribute to the Japanese economy.
Executive DirectorShinji Naito
Corporate Profile
Overview
Company Name
Japan Growth Capital Investment Corporation
Representative
Shinji Naito (Executive Director)
Address
2-3-8 Hamamatsucho, Minato-ku, Tokyo 105-0013, Japan
Business Period
The period of 12 months commencing on the first day of September and ending on the 31st of August in each year.
Asset Management
Company
Nomura SPARX Investment, Inc.
　　
History
August 26, 2021
Notification of Incorporation by the founder, Nomura SPARX Investment, Inc., under Article 69、Paragraph 1 of the Act on Investment Trusts and Investment Corporations (hereinafter referred to as the “Investment Trust Act”)
September 1, 2021
Registration of incorporation and foundation under Article 166 of the Investment Trust Act
September 10, 2021
Application for registration under Article 188 of the Investment Trust Act
October 1, 2021
Registered by the Prime Minister under Article 187 of the Investment Trust Act
(Registration Number: Director of the Kanto Local Finance Bureau No. 154)
Member of the Board of Officers
Title Name Career Summary
Executive Director Shinji Naito April 1987 Joined Sumitomo Trust and Banking Co., Ltd. (currently,
Sumitomo Mitsui Trust Bank, Limited)
August 1998 Joined Goldman Sachs Asset Management Co., Ltd.
March 2000 Joined SPARX Asset Management Co., Ltd.
October 2006 Executive Managing Officer of SPARX Group Co., Ltd.
May 2007 Executive Managing Director of SPARX Asset Management Co., Ltd.
April 2021 Representative Director, Chairman, and Co-CEO of Nomura
SPARX Investment, Inc. (present post)
November 2024 Executive Director of Japan Growth Capital Investment Corporation (present post)
Our Investment Philosophy
1.We focus investment in entrepreneurs who rationally allocate capital
  • We believe that rational capital allocation, with a capital cost discipline, helps increase enterprise value.
  • We engage in dialogue with entrepreneurs to confirm that they are capable of capital cost based management.
2.We do not invest in businesses we do not understand
  • We believe that we can easily explain and recommend outstanding startups to friends and family.
  • The investment corporation is a permanent vehicle.  It is important that we pass investment opportunities which we do not understand, in order to avoid losses.
Investment Policy
  • We primarily focus on startups which have a high potential for IPOs due to the solutions to social pains and the impact on business and our living.
  • We invest in startups that aim to achieve medium- and long-term profit growth in growing markets and themes and to maximize enterprise values by rationally allocating capital.
  • We will invest one to several billion yen per investment, and we work with entrepreneurs to increase enterprise values.
  • After investing, we communicate with entrepreneurs as non-executive directors or observers, providing managerial and IR support as shareholders.
The Features We Offer to Unitholders
1.Third party valuation on unlisted stocks
2.We pursue upside return through startup investment
  • We invest in startups with high growth potential, pursuing capital gains through exit scenarios such as IPOs.
3.Our structure satisfies tax conduit requirements
4.Our structure enables investment in startups (after it becomes publicly listed) while providing liquidity.
The Features We Offer to Startups
1.We have unique characteristics as a shareholder
  • We are a cross-over shareholder that can continue shareholding for some time after IPOs. We can also acquire secondary shares at funding rounds.
2.We can provide large ticket size
  • One to several billion yen per investment.
Company Outline
Company Name
Nomura SPARX Investment, Inc.
Shareholders
Nomura Holdings, Inc.   51%　SPARX Group Co., Ltd.  49%
Capital
200 million yen (and Capital Reserve 200 million yen)
Established
April 1, 2021
Address
2-3-8 Hamamatsucho, Minato-ku, Tokyo 105-0013, Japan MAP
Tel: +81-3-6636-7200
Representatives
Shinji Naito (Representative Director, Chairman, and Co-CEO)
Yutaka Mogi (Representative Director, President, and Co-CEO)
Registration Number
Director of Kanto Local Finance Bureau (Financial Instruments Firms) No.3274
Membership in Association
The Investment Trusts Association, Japan
Organization Chart