FY2024
Apr.2023-Mar.2024
FINANCIAL RESULTS

for Startups, Inc.
TSE: Growth 7089

for Startups, Inc. discloses IR information by email.
Anybody may register to receive such information.

© 2024 for Startups, Inc.

1.

FY03/25 1Q results overview

2.

Business themes

3.

Appendix1. FY03/25 1Q results overview© 2024 for Startups, Inc.

FY03/25 1Q results Executive summary• Steady increase in revenue, performance in line with expectations despite profit decline following recording of officerelated expenses• Number of employees at end 1Q up 23 (including 13 new graduates) from end previous fiscal year to 217. Recruiting in
Talent Agency in line with expectations
Net sales (Consolidated)

865

million yen

Operating income (Consolidated)78

million yen

Orders (consolidated)

1,143

million yen

YoY +18.7%

YoY -22.4%

YoY +20.2%

Talent Agency net sales

Open Innovation net sales

Number of regular employees

810

million yen

YoY +18.9%© 2024 for Startups, Inc.

55

million yen

YoY +14.5%

Results Overview• New records set for orders received in both Talent Agency and Open Innovation, breaking through 1,000 million yen onquarterly basis for the first time217
YoY +233

Year-on-year comparison of 1Q operating profit
SG&A expenses increased 59 million yen due to one-off expenses following relocation of head office,pushing down profit year on year
Results Overview(Million yen)

Head officerelocation
Double rent/accelerated
depreciation, etc.

Gross profit

FY03/24 1Q© 2024 for Startups, Inc.

Personnel
expenses

Other SG&A
expenses

FY03/25 1Q

4

Company as a whole (consolidated) | Change in quarterly
net sales over time
Talent Agency set a new record for quarterly net sales

YoY +18.7%(Million yen)

972

879
728

709

36

24

685

691

1Q

2Q

768

792

145

128

76

729

623

663

681

3Q

4Q

1Q

197

865
55

185

48

802

779

810

4Q

1Q

648

2Q

FY03/233Q
FY03/24

Talent Agency© 2024 for Startups, Inc.

834

Results Overview

Open Innovation net sales likely to be disproportionately weighted to second half due to revenue recognition issues related toinspection of services provided taking place at the end of fiscal year

2Q

3Q

4Q

FY03/25
Open Innovation

5

Company as a whole (consolidated) | Change in quarterlyorders received over time
Both services set new quarterly records, together exceeding 1,000 million yen. Tailwind from resumption of recruiting activities
by major existing customer
Results Overview

Open Innovation benefiting from growth in STARTUP DB orders(Million yen)YoY +20.2%

785

786

136

649

1Q

768
40

745

2Q

119

760
86

649

674

3Q

4Q

951

915

188

163

763

751

1Q

2Q

FY03/23

891

257

156

869

3Q

886
734

4Q

FY03/24

Talent Agency© 2024 for Startups, Inc.

935
65

1,143

1Q

2Q

3Q

4Q

FY03/25

Open Innovation

6

Company as a whole (consolidated) | Change in joiners andleavers over time
Due to effects of controlling hiring activity in previous fiscal year to reflect market conditions, number of new graduates down
year on year, but 3 still scheduled to join later this fiscal year

Number of
employees at endof previous fiscal
year

Number of
midcareer joiners*including changes in formof employment

Number of new
graduate joiners

Number resigning

Number of
employees at endof fiscal year

FY03/22 (full year)

87

45

8

25

115

FY03/23 (full year)

115

60

13

22

166

FY03/24 (full year)

166

52

21

45

194

FY03/24 (1Q)

166

6

21

7

186

FY03/25 (1Q)

194

20

13

10

217

© 2024 for Startups, Inc.

Results Overview

Number of mid-career joiners in 1Q up 3x year on year, business plan progressing as expected7

Company as a whole (consolidated) | Change in number of
employees over time
As of July 31, outlook for number of employees at end 2Q is 222
Recruitment in most important area, Talent Agency, on pace to hit targets

135

142

10
20
15

14
21
14

152
15
24
15

166
17
28

217

222

186

187

188

194

18

17

15
26
17

13
26

15
24

17
24

27

27

24

22

20

23

23

・・・

16

90

93

98

105

1Q

2Q

3Q

4Q

128

128

126

130

1Q

2Q

3Q

4Q

FY03/23

FY03/24
Talent Agency

Results Overview

250(people)Open Innovation

アクセラレーション
Acceleration

148

156

1Q

2Q
2Q(見込)(projection)

3Q

4Q(target)4Q(目標)

FY03/25
コーポレートほか
Corporate and other

Note: includes employees on leave for maternity, childcare, etc. The Acceleration Division is responsible for the Human Resources Division and the Development and Design Division.
© 2024 for Startups, Inc.

8

Talent Agency | Net sales
Quarterly net sales for employee placements hit new record
Results Overview

Demand for consulting on recovery trend, but due in part to changes in external environment has not yet returned tolevel of FY03/23
YoY +18.9%(Million yen)

802
685
108

691
623
138

577

553

1Q

2Q

663
65

681

598

600

4Q

1Q

99

648

80

513

3Q

810

77

95

697

715

4Q

1Q

82

110

702
566

2Q

FY03/233Q
FY03/24

Employee placement service© 2024 for Startups, Inc.

775

2Q

3Q

4Q

FY03/25
Recruitment consulting service

9

Talent Agency | Orders received
While impacted by shortfall in employee recruitments in previous fiscal year, improvements in productivity pushed orders
received to new record
Results Overview

Tailwind in some areas from resumption of recruiting activities by major existing customer
YoY +16.2%(Million yen)

886

869
745
650

649

138

108

541

1Q

110

607

539

2Q

3Q
FY03/23

674
65

609

4Q

763

751

80

99

682

651

1Q

2Q

82

95

77

791

787
657

3Q

4Q

1Q

FY03/24
Employee placement service© 2024 for Startups, Inc.

734

2Q

3Q

4Q

FY03/25
Recruitment consulting service

10Talent Agency | Constituent elements of net sales
While number of placements hit a new record, unit price maintained at previous-year level

FY03/22
1Q
Number ofplacements

2Q

FY03/23

3Q

4Q

1Q

2Q

FY03/24

3Q

4Q

1Q

2Q

FY03/25

3Q

4Q

1Q

2Q

3Q

4Q

178

179

154

174

179

152

142

178

153

190

154

188

195

－

－

－

Unit price (thousand
yen)

2,740

2,795

2,831

2,902

3,290

3,601

3,594

3,395

3,981

3,738

3,854

3,703

3,767

－

－

－

Number ofcompanies at which
employees placed
for the above
number ofplacements

71

82

76

84

74

86

72

85

87

104

92

104

107

－

－

－

Finalized annual
salary (% total)>=¥10m

16.4

12.9

15.6

16.8

23.5

25.7

24.6

19.7

30.1

31.6

29.9

26.6

28.2

－

－

－

Finalized annual
salary (% total)>=¥8m <¥10m

17.5

18.5

17.5

15.6

17.9

23.7

23.9

20.2

21.6

18.9

18.2

22.3

23.6

－

－

－

Finalized annual
salary (% total)>=¥6m <¥8m

27.7

33.7

29.9

34.7

38.0

30.9

33.1

38.8

32.7

33.2

34.4

30.9

32.8

－

－

－

Finalized annual
salary (% total)
<¥6m

38.4

34.8

37.0

32.9

20.7

19.7

18.3

21.3

15.7

16.3

17.5

20.2

15.4

－

－

－

Results Overview

Number of companies at which employees placed, which we began disclosing this fiscal year, continues to rise on
an annual basis due in part to winning of new customers

Note: Excludes part of employee placement service sales (operations outsourced to the Company, etc.) and the impact of repayments© 2024 for Startups, Inc.

11

Company as a whole (consolidated) | FY03/25 Full-year forecasts
No change to figures already disclosed
Results Overview

FY03/24

FY03/25

YoY(Million yen)

3,416

4,100

+ 20.0%Operating income

423

450

+ 6.3%

Ordinary profit

428

450

+ 5.0%

Profit attributable toowners of parent

385

310

- 19.7%

Net sales© 2024 for Startups, Inc.

12

2. Business themes© 2024 for Startups, Inc.

Public Affairs | Beginning new initiatives with local governments
This fiscal year we are focusing on new local government initiatives. In addition to projects for Yamanashi and Gifu
prefectures, we have been outsourced a project from Kita Kyushu, which is one of the eight startup ecosystem hub cities
Kita Kyushu City - Corporate Transformation/Startup
Growth Support Project

Yamanashi Prefecture - Acceleration Program Project
Gifu Prefecture - Support Project for Unearthing / Accelerating
Technology Startups
Themes© 2024 for Startups, Inc.

14

Public Affairs | Initiatives with Fukuoka City
Below is an excerpt from a discussion between Soichiro Takashima, the mayor of Fukuoka City, who was the driver of
the “Startup City Fukuoka” declaration in 2 2 that positioned startup support at the heart of the city’s government, andfor Startups President Yuichiro Shimizu- What initiatives has Fukuoka City undertaken and how have they developed?

Mayor of Fukuoka
Soichiro Takashima
for Startups, Inc.
President and CEO
Yuichiro Shimizu© 2024 for Startups, Inc.

Article can befound here

ThemesFrom expanding the base to forging ahead to makea social impact - Fukuoka City and for Startups aretaking on the challenge together(Soichiro Takashima)
First, in order to facilitate new business models and technologies that had not been considered under existing laws
and regulations, we obtained the designation of national strategic special zone for the Fukuoka City National StrategicSpecial Zone for Global Startups & Job Creation. To enable the flexible creation of new businesses in Japan, we
decided to make Fukuoka the starting point for the change.
In 2017, we opened the Fukuoka Growth Next (FGN) public-private startup support facility, which utilizes the former
Fukuoka City Daimyo Elementary School. This has been positioned at the core of measures for supporting startups inthe city.
Fukuoka City startups have been growing steadily, with for example iQPS Inc. being listed in December 2023, andmany other companies preparing for IPO. However, we are now in the phase of what we call “aiming higher,” whichmeans setting more ambitious goals and creating companies that will be representative of and become the driving
force behind Fukuoka’s startup ecosystem. Another of the pillars of this project is the “social” aspect. These arestartups that seek to resolve social issues. The reality is that when I talk to the individuals who gather at FGN with theintention of taking on various challenges, I get a genuine sense that there has been an increase in the number ofpeople who are interested not only in raising valuations but also in the social significance of what they are doing and in
discovering the meaning of their own lives.

- Are there any immediate issues that you are facing as you work towards realizing your goals
under the two conceptual pillars of “aiming higher” and “social”?
(Soichiro Takashima)
Human resources are the main issue by far. More than ten years have passed since Fukuoka started supporting
startups, and it has led to IPOs, and the number of pre-IPO companies has increased. However, once they get to thisstage, if they don’t go to Tokyo it is difficult for them to get advice about listing from financial institutions, and the reality
is that they all end up going to the capital. It is hard to find human resources locally who can provide them with advice.
This has become an issue precisely because we have entered this current phase. So functions for matching humanresources tailored to the current phase and situation have become urgently necessary, and it is here that we hope forStartups will be able to provide assistance.

15

STARTUP DB | First Half of 2024 Investment Trend Report/seminar
We have published the First Half of 2024 Investment Trend Report. Online seminar scheduled to be livestreamedon August 21

ThemesIn this seminar, while visualizing in graphical form
the results of such proprietary research as trends infunding amounts and by investor type, and examplesof major funding and exits that have been attracting
attention, we will also provide commentary from two
venture capitalists who are active on the front line of
the industry.
For registration, see here

© 2024 for Startups, Inc.

16

Conference | Holding of GRIC 2024
GRIC 2 2 , the conference whose purpose is to raise Japan’s startup ecosystem to global standards,
will be held in November. This will be the first time it has been held over three days

Main programs from the 2023 event

5th conference to be held in November 2024
ThemesOffline stage

Online session

Pitch contest

FIRE SIDE CHAT

© 2024 for Startups, Inc.

17

Progress in new businesses and alliances, etc.
Currently collaborating with multiple operating companies, etc. We are moving forward with activities thatleverage our strengths in preparation for the creation of new businesses

・ Frequent implementation of corporate
study meetings
・ Understanding of demand for funding andhuman resources

Internal database

Support forentrepreneurship
Employee placements

Proprietary algorithms

Open Innovation

Venture Capital
・ Close cooperation with top-tier VCs
・ Updates to growth company information●● industry,
Company A

Ranking

Conference

Information madeavailable online
・ Public information such as registers andgovernment publications
・ Information releases related to funding

Talent Agency
ThemesStartups

Corporate data on more than
24,000 companies
Visualization▲▲ industry,
Company B

Business alliances/collaborations

Venture Capital
Investments in startups

Development of startup ecosystem© 2024 for Startups, Inc.

18

3. Appendix© 2024 for Startups, Inc.

Company overview
Company namefor Startups, Inc.

Established

September 2016

Location of head
office36F, Izumi Garden Tower,1-6-1 Roppongi, Minato-ku, Tokyo

Number of regular
employees

217 (as of June 30, 2024)

CapitalNature of business

Listed market¥238 million (as of June 30, 2024)
Growth industry support- Talent Agency & Open Innovation business- Venture Capital businessTokyo Stock Exchange Growth market(securities code: 7089)
13-Yu 307946

Group companies

for Startups Capital Inc.
Syngress, Inc.

Appendix

Employment
placement businessauthorization no.

Group photo of officers and employees of the Company at the “for Startups Thanks Festival”
held on April 10, 2024
© 2024 for Startups, Inc.

20

Support for entrepreneurship
We support the starting of businesses primarily by supporting entrepreneur candidates
in cooperation with venture capital firms
So far we have announced the provision of support to seven companies

Established August 2016

Established July 2017

Established February 2019

Established April 2019

YOURMYSTAR, Inc.

Graffer, Inc.

Blue Practice Co., Ltd.

TERASS Inc.

Established November 2020

Established April 2021

Established July 2022

Yuimedi, Inc.

NABLA Mobility Inc.

FAEGER Co., Ltd.
Appendix© 2024 for Startups, Inc.

21

Talent Agency | Track record in supporting employee placements
Unlisted startups

Startups that were listed while
we were providing support

Companies already listed© 2024 for Startups, Inc.

Appendix

Ecosystem builders (VC, innovation campuses)

22Talent Agency | Examples of support provided
We have published representative examples of support provided by our Talent Agency on the “Challengers” corporate website

Timee, Inc.

KAKEHASHI Inc.
<Excerpt from article>
Takashi Nakagawa, Representative Director & CEO

At that time my perception of agents was that they were difficult to deal with. For high-level
individuals, the fee would rise to several million yen. Three years ago we had procured
funding of around 300 million yen, so for example 3 million yen would be 1%. I found it
difficult to pay such amounts.
It was when we recruited high-level individuals such as the CFO through for Startups that I
had a change of awareness. I felt that we had managed to massively reduce the timerequired . My sense was that although we could not avoid this particular road, we had
shortened the distance we needed to walk. More than anything, startups have finite time.
The turning point was when I realized that, under circumstances in which we were required
to be extraordinarily selective and focused, using money in this way was actually extremely
rational. Rather than investing my emotions, the results were worth paying a certain fee for.

Our problem at the time was that members of the management team were getting too
closely involved in the recruitment process. As you might expect, when management
speaks they can be very effective in attracting people simply by virtue of being able to talkabout the future. Even so, when you think about the number of people we want to recruit,
there are limits to a recruitment system based only on the management team. In order tosucceed in recruiting from all directions, it was important for all members of theorganization to become able to perform recruitment activities. The most important theme at
the time was to shift to a structure, based around the hiring managers of each team, thatallowed us to approach recruitment as an organization. By reviewing the interview story
with for Startups and driving a detailed feedback cycle, while at the same time providing
specific points for improvement to hiring managers, we gradually became able to conduct
productive interviews. This had a significant impact.

© 2024 for Startups, Inc.

Appendix<Excerpt from article>
Ryo Ogawa, Representative Director

23

Public Affairs｜Past achievements
Seven out of the eight startup ecosystem hub cities designated by the Cabinet Office of Japan have outsourced projects to us
or welcomed our participation as a collaborating institution
Supporting national policy for creating startups in all regions of Japan, including Tokyo
Startup ecosystem hub cities(8 in total)

Main achievements
1

Startup Ecosystem Tokyo Consortium

Tokyo

Project for the Support of
Next-Generation Communications
Technology Startups

Osaka-Kyoto-Hyogo-Kobe Consortium

5● Global hub city
● Promoted hub city

6
1
8

7

3

2

Cabinet Office of Japan: “Strategies for creation of startup ecosystem tocompete with the world top ecosystems”
https://www8.cao.go.jp/cstp/openinnovation/ecosystem/index.html© 2024 for Startups, Inc.

Central Japan Startup
Ecosystem Consortium

Hamamatsu
City• Startup Business Growth Project• Next Innovator Development Project

Aichi Prefecture• Joint project with National University ofSingapore• Deep Tech Promotion Project3
Union of Kansai
Governments

Kansai Startup Ecosystem Information
Dissemination Project

Osaka
Prefecture

Overseas Promotion Model Project6

Sendai Startup Ecosystem Promotion
Council

MICHINOKUACADEMIASTARTUP
PLATFORM

8

Participation as a collaborating
institution

Kita Kyushu City SDGs Startup
Ecosystem Consortium

Kita Kyushu
City

Fukuoka Startup Consortium

4
Fukuoka City

7

• Fukuoka City Startup Support Facilities
Operator Project

Hiroshima Strategy Council to Promote
Regional Innovation

Hiroshima
Prefecture

Services for establishing “Hiroshima
Unicorn ” project environment

Chugoku Bureau Chugoku Region Monozukuri Small andof Economy,
Medium-Sized Enterprise Business Startup
Trade andSupport ProjectIndustry

Appendix

42

Corporate Transformation/Startup
Growth Support Project24

Venture Capital | Overview
We have formed a fund that aims to provide startups with a combination of support for both people and funding
It will invest in the further growth potential of the startups to which the Talent Agency service has provided HR support

Overview of fundfor Startups No.1 Limited Liability Investment Partnership

Purposefor whichformedTo create synergies with the Talent Agency service of theCompany, and to provide even more robust support to
growth industries

Total
investment

Up to 1,500 million yen

Investors

for Startups Capital Inc.
Sumitomo Mitsui Banking Corporation
SMBC Strategic Equity Stake No.4 Investment Project
Limited Partnershipetc.

Investment
targets

Primarily domestic startups and venture companies<Middle/late stage startups and startups receiving
support for entrepreneurship>© 2024 for Startups, Inc.

No.1 fund investees

Appendix

Name offund

25

Strengths: network that includes some of Japan’s leading players
Our customers include closely watched entrepreneurs and startups of the kind that appear in the Forbes Japan’s Startup of the Year rankings
We have established an environment in which we are able to obtain extremely valuable qualitative information, including the building ofrelationships with investors*Entrepreneurs and investors who have visited the Company (sample)© 2024 for Startups, Inc.

Thanks Festival: Leading entrepreneurs, investors,
government officials and media in Japan are invited to ourGroup offices several times a year. Strengthening the
growth industry community through information exchange

Networking Events: Networking events for investors at
one of the world’s largest startup conferences, as well as
open innovation events for large companies held at our
offices

Appendix

Study Meetings: Frequently hold study meetings withentrepreneurs and investors. Promote support based on a
deep understanding built on primary information throughsharing of the latest information and mutual discussion

26Company as a whole (consolidated) | Change in quarterly profit andloss/SG&A expenses over time
FY03/22

FY03/23

FY03/24

FY03/25

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

Net sales

525

569

537

716

709

728

768

792

729

879

834

972

865

－

－

－

Cost of sales

110

126

110

126

123

137

125

154

110

148

265

167

145

－

－

－

Gross profit

414

442

426

590

585

591

643

637

618

730

568

805

720

－

－

－

SG&A expenses

302

301

327

454

421

437

473

539

517

527

615

639

641

－

－

－

Personnel expenses

230

229

240

255

301

302

326

365

376

386

379

427

426

－

－

－

8

7

6

13

15

19

10

26

11

17

14

27

22

－

－

－

19

23

28

42

32

32

32

32

32

32

32

32

54

－

－

－

Depreciation

1

1

14

15

4

5

3

3

3

3

20

29

28

－

－

－

Other SG&A
expenses

41

39

39

127

67

77

101

111

93

88

168

122

108

－

－

－

112

140

98

136

163

153

169

97

101

202

-46

165

78

－

－

－

Recruitment
expensesRent expenses onland and buildings

OperatingincomeAppendix

1Q

Note: Amounts of less than ¥1m are omitted; preparation of consolidated accounts began in 2Q FY03/22; personnel expenses include bonuses, etc.;
recruitment expenses are the sum of introduction fees and fees for advertising positions© 2024 for Startups, Inc.

27

Company as a whole (consolidated) | Change in quarterly profit andloss/SG&A expenses over time
FY03/20

FY03/21

FY03/22

FY03/23

FY03/24

FY03/25 1Q

953

1,309

2,167

2,567

2,582

2,606

Cash and deposits

816

1,042

1,717

1,745

1,655

1,897

Operational
investment securities

－

－

154

463

378

378

177

148

401

402

659

595

1,130

1,457

2,569

2,969

3,241

3,202

325

466

1,016

779

696

599

Total non-current
liabilities

－

83

66

－

－

－

Total net assets

805

908

1,485

2,190

2,545

2,602

804

907

1,317

1,767

2,174

2,234

－

－

165

405

338

331

71.2

62.3

51.3

59.5

67.1

69.8

Total non-current
assetsTotal assets
Total current liabilities

Shareholders’ equity

Non-controllinginterests
Equity ratio© 2024 for Startups, Inc.

Appendix

Total current assets

28Company as a whole (consolidated) | Medium-term performance targets
We are aiming for more than 5,000 million yen in consolidated net sales by FY03/26 (no change)
Results Overview

Consolidated net sales plan
＋22.0％～34.0%＋20.0％

50.0～55.0
23.4

Operatingincome(¥100 million)

29.9

34.1

41.0

FY03/22

FY03/23

FY03/24

FY03/25

FY03/26

4.8

5.8

4.2

4.5

7.5 ~ 8.2*
*Assumes 15% profit margin level© 2024 for Startups, Inc.

29

IR initiatives
Shared ResearchInformation from past Q&A sessions with investors information has been
listed on QA Station. Please use the following URLs for further details.

https://sharedresearch.jp/ja/companies/7089

https://www.qastation.jp/

Activities on behalf ofindividual investors
We are strengthening the provision of information aimed at deepening theunderstanding of the Company by investors, including appearances at IR
seminars held for individual investors.
IR noteIR seminar

Results Overview

We believe that company analysis reports written from a third-party
perspective by Shared Research are a useful reference for investors
considering investment decisions.

QA Station

Distribution of IR emails
for Startups, Inc. distributes IR information such as timely disclosure andstatutory disclosure items by email.
Please use the following URL to register.

https://www.magicalir.net/7089/irmail/index.php

https://www.magicalir.net/7089/irmail/index.php© 2024 for Startups, Inc.

30

Disclaimer
These materials contain forward looking statements. These statements are based on no more than the information available at thetime the statements were created. Furthermore, such statements do not constitute a guarantee of future results, and incorporaterisks and uncertainties. Be aware that actual results may differ significantly from forecasts due to changes in the environment andother factors.

Factors that could affect the actual results mentioned above include but are not limited to economic conditions both in Japan andoverseas, and trends in the industries in which the Company is involved.

Going forward, in the event that new information emerges or future developments, etc. arise, the Company accepts no

responsibility for updating or revising any forward looking information whatsoever contained in these materials.

In addition, information contained in these materials on subjects unrelated to the Company is quoted from published informationand other sources. The Company has not verified the accuracy or appropriateness, etc., of this information and offers noguarantees in that regard.

© 2024 for Startups, Inc.

31