Global and Japan Venture
Capital Market Update・2023

March 2024
Japan Investment Corporation(C) JIC. All Rights Reserved.

Acknowledgments• Japan Investment Corporation (JIC) conducts research on domestic and international capital
market trends for its own investment activities. This document discloses a portion of our research
result and serves the public with available market information and reference.
• Unless otherwise noted, the following material is based on information available as of February
2024.
• This publication has been prepared solely for informational purposes. This document is not or
relate to disclosure materials mandated by the Financial Instruments and Exchange Act ofJapan.
• This publication should not be viewed as a current or past recommendation or a solicitation of
an offer to buy or sell any financial product, transaction or investment strategy.
• The information contained herein is only as current as of the date indicated, and may besuperseded by subsequent market events or for other reasons.
• The information in this document has been developed internally and/or obtained from sources
believed to be reliable; however, neither JIC nor the author guarantees the accuracy,
adequacy or completeness of such information.
• The information and analysis herein do not constitute advice of any kind, are not intended to
be used for investment purposes, and neither JIC nor any of its subsidiaries or their respective
officers, directors, shareholders, employees or agents accept any responsibility or liability withrespect to the use of or reliance on any information or analysis contained in this document.
• The report is a copyrighted work of JIC and may not be published, transmitted, broadcast,copied, reproduced or reprinted in whole or in part without the explicit written permission of JIC.
• Ask JIC for more information: https://www.j-ic.co.jp/en/contact/(C) JIC. All Rights Reserved.

2

Contents
1 SummaryP42 Startup

P5

2.1

Japan｜Deal Activity

2.2Japan｜Exit

2.3

US｜Deal Activity

2.4

US｜Valuation

2.5

US｜Exit

3 Venture capital
3.1

Japan｜Fundraising

3.2

US｜Fundraising

3.3

US｜Dry powder(C) JIC. All Rights Reserved.

4 Supplementary material collection
4.1

Unicorns

4.2

US Tech Company Trends

4.3

European Market Overview

4.4

Indian Market Overview

4.5

Secondary trading

4.6

Other

P29

P21

3

Summary■US Startup：•

Startups, particularly those in later stages, continue to face challenges in securing financing. Although
the sharp decline in deal activities since 2021 is now in the past, deal count and value remain stagnant,leading many to doubt the prospects of an early recovery. Apart from generative AI, there are no othersectors strong enough to stimulate an increase in deal activities across the entire market.

■Japanese Startup：•

The funding for Japanese startups began to decrease in 2023, one year after the global startup
funding market experienced a decline. Similar to the situation in the US, funding for late-stage
Japanese startups is sluggish, with both the amount of capital raised and the valuation of thesestartups trending downwards. In comparison to the significant valuation adjustments observed in listed
equities, the valuation adjustment for late-stage startups remains relatively minor.

■US VC：•The amount of VC fundraising began to decline in 2023. Two factors contributed to this trend: (a) aslowdown in exit activities led to decreased distributions from funds to LPs, and (b) a decline in thevalue of listed equity portfolios translated into a denominator effect in the asset allocation of LPs. While
the recovery in the value of listed equity portfolios is alleviating the denominator effect, the stagnant
distribution is acting as a headwind for fundraising activities. Emerging VC fund managers are
particularly impacted by these conditions.

■Japan VC：•

Unlike the United States, Japan currently does not show a clear downtrend in VC fundraising. However,
the relatively slow progress in the establishment of first-time funds indicates that emerging VC fundmanagers are facing increasing challenges in fundraising.

(C) JIC. All Rights Reserved.

4

Contents
1 SummaryP42 Startup

P5

2.1

Japan｜Deal Activity

2.2Japan｜Exit

2.3

US｜Deal Activity

2.4

US｜Valuation

2.5

US｜Exit

3 Venture capital
3.1

Japan｜Fundraising

3.2

US｜Fundraising

3.3

US｜Dry powder(C) JIC. All Rights Reserved.

4 Supplementary material collection
4.1

Unicorns

4.2

US Tech Company Trends

4.3

European Market Overview

4.4

Indian Market Overview

4.5

Secondary trading

4.6

Other

P29

P21

5

Japan : Deal Activity｜Overview• Startups (SUs) raised a total amount of ¥ 754B in 2023 1 . This marked the first decline since2020, with a decrease of 22% compared to 2022. Similar to the global startup funding challenges
that emerged in 2022, Japan experienced a similar decline about one year later.
• On a semi-annual basis, startup funding has been decreasing for three consecutive periods
since H1 2022.
Deal Activity ( annual )Deal Activity (semi-annual)

Deal Value (¥ B)

Deal Counts

1,500

482

4,000

Deal Value (¥ B)
500

500
467

450

Deal Counts

3,500

Capital Raised

387

397

400
356

1,200

3,000

350

2,500

300

2,000

250

966
869

900

754
612

600

501

561

364
300
143

203

269

0

200

1,500

150
1,000
100
500

50

0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

0

2021H1 2021H2 2022H1 2022H2 2023H1 2023H2

Note 1) The figure above is a preliminary result, which is subject to revision as deals in the past are identified retrospectively. Taking into account theretrospective revisions made over the past several years, the 2023 results may be revised upward by around +10% to reach the 800 billion yen range.
Source: INITIAL(C) JIC. All Rights Reserved.

6

Japan : Deal Activity | Average Size
• The average deal size in 2023 is approximately 300 million yen1.
• The average deal size falls significantly for established SUs (SUs founded within 3-7 years
or more).
• Moving forward, many deal activities of younger SUs (SUs with less than 3 years of history)
which has been unidentified initially are being discovered and added to databases. Due tothe change in the SU mix, the average deal size of SU in 2023 is to be revised downward.
Average1 Deal Size2

Average3 Deal Size by Found Year Bucket

¥M

¥M

350

700

300

600

250

500

200

400

150

300

3-7 years

100

200

1-3 years

50

100

7+ years

0
2014

15

16

17

18

19

20

21

22

2023

0
2014 15<1 years
16

17

18

19

20

21

22 2023

Note 1) Total amount of deal value divided by the total number of deal counts.
Note 2) The figure above is preliminary result. It may be subject to revision as deals in the past are identified retrospectively.
Note 3) Total amount of deal value divided by the total number of deal counts for each bucket.
Source: INITIAL(C) JIC. All Rights Reserved.

7

Japan : Deal Actitivty | Valuation• The median valuation of startups, particularly those in later stages, has declined significantly
since 2021. In the listed market, valuations of growth equities continue to be sluggish.
• For instance, the average PSR (price-to-sales ratio) of 30 well-known SaaS companies in Japan1
peaked at over 20 times in 2021 but has recently fallen to around 6 times and remains stagnant.
Later-stage startups, which are nearing exit, are affected by the sluggish valuation of listed
growth equity.
Major listed SaaS companies in Japan Average
PSR multiplier 1

Post-money valuation / median¥B

15(Multiples)

15

14

25

24

12
12

20
10

9

8

15
Series D+

6

6

5

5

5

10

5
Series C

3

2

0
2019

3

3

3

2
Series B

20

21

22

2023

6
5
0
2020

21

22

23

2024

Note 1) Average PSR multiples of 30 listed SaaS companies in Japan . Ticker of these listed companies are JT Equity 2477, 2492, 3923, 3983, 3984, 3991, 3993,
3994, 4060, 4071, 4165, 4168, 4180, 4192, 4375, 4379, 4397, 4397, 4431, 4435, 4443, 4448, 4475, 4478, 4488, 4493, 4776, 5038, 5621, 6027.
(C) JIC. All Rights Reserved.

Source: INITIAL, Bloomberg

8

Contents
1 SummaryP42 Startup

P5

2.1

Japan｜Deal Activity

2.2Japan｜Exit

2.3

US｜Deal Activity

2.4

US｜Valuation

2.5

US｜Exit

3 Venture capital
3.1

Japan｜Fundraising

3.2

US｜Fundraising

3.3

US｜Dry powder(C) JIC. All Rights Reserved.

4 Supplementary material collection
4.1

Unicorns

4.2

US Tech Company Trends

4.3

European Market Overview

4.4

Indian Market Overview

4.5

Secondary trading

4.6

Other

P29

P21

9

Japan : Exit｜Overview• The number of startup exits via IPOs in 2023 was lower than the previous year (-17%). With aless active growth market and IPO market, many companies are delaying IPOs or shifting theirfocus to M&A exits. However, the decline in M&A exits is relatively small, with only a 3% decline.
• IPOs by iSpace and iQPS, two space startups, garnered attention from the market. The Tokyo
Stock Exchange revised its listing examination process to accommodate more IPOs by deep techstartups. As observed in the past, listed startups are the primary buyers in the majority of M&A
deals. However, one exception in 2023 was the Bank of Mitsubishi UFJ, which acquired Kanmu, aFintech startup, and made it a consolidated subsidiary (valued at $25 billion).
Number of new startup listings 1

Number of startup M&A

Number of companies

Number of companies

70

62

190

59 -17%

60
50

200

66

47

45

50
46

49

-3%
168

149 148

150

132

43

121

39

40

174

170

100

99

103

2014 15

16

30
20

50

10
0

0
2014 15

16

17

18

Note 1) Only domestic listings are counted.
(C) JIC. All Rights Reserved.

19

20

21

22 2023

17

18

19

20

21

22 2023

Source: INITIAL
10

Contents
1 SummaryP42 Startup

P5

2.1

Japan｜Deal Activity

2.2Japan｜Exit

2.3

US｜Deal Activity

2.4

US｜Valuation

2.5

US｜Exit

3 Venture capital
3.1

Japan｜Fundraising

3.2

US｜Fundraising

3.3

US｜Dry powder(C) JIC. All Rights Reserved.

4 Supplementary material collection
4.1

Unicorns

4.2

US Tech Company Trends

4.3

European Market Overview

4.4

Indian Market Overview

4.5

Secondary trading

4.6

Other

P29

P21

11

US: Deal Activity｜Overview• In 2023, startup deal activities experienced a slowdown for the second consecutive year, both interms of the amount and number of deals. This struggle to raise capital extended beyond
startups in the late growth phase to those in the seed or early stages.
• However, on a quarterly basis, the sharp decline is now behind, and deal activity has generally
remained flat since the second half of 2022. Despite this, uncertainties persist around macroeconomic trends, interest rate policies, and global geopolitics, with no clear sight of market
recovery.
Funding trends 1 ( annual )Funding trends 1 ( quarter )Deal counts (‘000)

Deal value by stage ($B)
350

20

Deal counts(‘000)

Deal value by stage ($B)
160

5.5
5.0

140

300

4.5
15

250

4.0
3.5

100

-30%

200

120

3.0
10

80
2.5

150
60

2.0

100
5

1.5

40

1.0
50

20
0.5

0
2013 2014 2015 2016* 2017 2018 2019 2020 2021 2022 2023

Deal Counts

0Seed/Angel

0
2020

Early

2021

Later

2022

0.0

2023

GrowthNote 1) Pitchbook defined venture growth stage as rounds after Series E.
Source: PitchBook(C) JIC. All Rights Reserved.

12US: Deal Activity | Trends by sector• On a quarterly basis, the amount of SU deal activity remains flat across sectors.
• Since last year, there has been a boom in Generative AI, driving deal activities among AI-related
startups, which are constituents of the Software sector. However, apart from OpenAI's $10 billion
deal in 2023 Q1, the rest of the AI-related deals have not contributed significantly enough toincrease the total deal value of the sector as a whole.
Quarterly US VC deal value ($B) by sector
35
312023/1: including Open AI $10B deal

30
25

20
16
15
10

13 14
10

11

10
76

5

5

6

6

5

7

7
55

5

433

223

3443344
4
3
222 3 32 2
222222 212222 22 111
1111011

0
Software Commercial Pharma
products & & biotech
services

Consumer HC services HC devices IT hardware
goods & & systems & supplies
services2022 Q3

2022 Q42023 Q1

2023 Q2

Energy2023 Q3

Media Transportation Other

2023 Q4

Source: PitchBook(C) JIC. All Rights Reserved.

13

US : Deal Activity ｜ AI
• In 2023, the number of deals closed by Generative AI-related startups surged, with corporations actively
investing in these startups. This trend has continued into 2024, with Microsoft recently announcing astrategic alliance with Mistral AI, a French startup. Tech giants are investing in AI because an excellent AI
model applied to their existing products may determine their competitiveness. Apart from investing instartups, tech giants are also allocating significant capital to their own research and development, talent
recruitment, and mergers and acquisitions.
• When evaluating the value of a startup, tech giants consider the synergy created through incorporating
the startup into their own ecosystem, such as the revenue generated from cloud usage by customers of
the startup with excellent AI technology. In this respect, tech giants assess the value of a startup from adifferent perspective than venture capitalists.

US: VC Deals for Generative AI

Investments in Generative AI-SUs by the corporates

Deal Value ($B)

Deal Counts

24

24
22

350

Deal counts

20

Deal value

18

250

14
12

200

10

9

4

4

2
1

2

100

Date

Open A.I.
($86B)

Microsoft$10B

2023/1Connect to searchengines, Azure , andvarious apps

Anthropic($20B)

Amazon$3.4B

2023/9Create foundation
model and deploy to
AWS customers

Anthropic($20B)

Google$2B

2023/10

Introducing
conversational AI tosearch engines

Inflection AI($4B)

NVIDIA/Mi
crosoft$1.3B

2023/6

AI supercomputerdevelopment, equippedwith GPU

2024/2

Collaboration in
research anddevelopment (modeltraining), etc.

50

1

0

0
2017 2018 2019 2020 2021 2022 2023

(C) JIC. All Rights Reserved.

Investment
amount150

86Corporate

300

16

2

400

SU
( Valuation )Mistral AI($2B)

Microsoft€ 15M

The aimSource: PitchBook and news

14

US : Deal Activity | NTI• During the tech bubble period in 2021, non-traditional investors (NTIs: including CVCs , SWFs , asset
management companies, PE companies, hedge funds, etc. ) were active in investing in SUs. However,starting from 2022, the frequency of participation by these investors has been decreasing.
• CVC initially led their peers with a relatively higher participation ratio. However, they are now also
slowing down in parallel with other non-traditional investors.

VC deal activity with NTI participation
Quarterly Deal Value($B)

Deal activity by NTI investor type

Deal Counts(‘000) Frequency of participation by each investor among
all funding deals（％）
2.0
30

100
Deal Counts
Deal Value

80
1.5

CVC
20

60
1.0

Other investors(incl. hedge funds)

40
10

PE investor

0.5

20

0

0.0
2015

16

17

18

19

20

21

22

23

Asset manager

0
2012

Government / SWF
14

16

18

20

22

2023

Source: Pitchbook(C) JIC. All Rights Reserved.

15

Contents
1 SummaryP42 Startup

P5

2.1

Japan｜Deal Activity

2.2Japan｜Exit

2.3

US｜Deal Activity

2.4

US｜Valuation

2.5

US｜Exit

3 Venture capital
3.1

Japan｜Fundraising

3.2

US｜Fundraising

3.3

US｜Dry powder(C) JIC. All Rights Reserved.

4 Supplementary material collection
4.1

Unicorns

4.2

US Tech Company Trends

4.3

European Market Overview

4.4

Indian Market Overview

4.5

Secondary trading

4.6

Other

P29

P21

16

US : Valuation | Overview• In 2023, startup valuation declined in all stages except for the seed stage.
• The growth stage experienced a significant decline in valuation for two consecutive years. Thisdecline has also impacted valuations in earlier stages.

Valuation Changes: Venture Growth Stage 1

Valuation Changes: Other stages 1

Pre-money valuation/median ($M)

Pre-money valuation/median ($M)

400

70

-25%

60
300
-65%

50

40
200

-19%

30
20

100

10
0
2013 14

15

16

17

18

19

20

21

0
2013 1422 2023

Venture Growth

Later

Early

15

16

17

18

19

20

21

22 2023

Seed

Note: Pitchbook defined venture growth stage as rounds after Series E.
Source: Pitchbook(C) JIC. All Rights Reserved.

17

US : Trends in listed tech stocks• With the stock prices of GAFA starting to rise from the end of 2022, the NASDAQ index has
regained the previous high watermark recorded in 2021 and is on an upward trend. However,
unprofitable tech companies continue to perform poorly, leading to a bifurcated market.
• In contrast, the IPO index, which measures the stock price performance of recently IPOed stocks,
is far from the level it was at the end of 2021. Nevertheless, it is currently showing signs ofimprovement.

NASDAQ Index / Non-Profitable Tech Index 1

US IPO Index 2( Index with end of 2021 as 100 )(January 2021 as 100 )

110

110

100

100

90

90

80

80

70

70

60

60

50

50

40

40

30

30

20
2021/1220
2022/42022/82022/12GSXUNPTC
赤字テック指数＊

Note 1)
Note 2)2023/42023/82023/12

NASDAQ Index (COMP)
NASDAQ総合指数

2021/122022/42022/82022/122023/42023/82023/12

Renaissance
IPO株価指数 US IPO Index“Goldman Sachs’s Non-profitable Tech Index” (GSXUNPTC Index)
The IPO index is a metric that tracks the stock price performance of recently listed companies. Specifically, in the case of the Renaissance US IPO Index,
it comprises highly liquid IPO stocks that raised $100 million or more at the time of listing. The index calculates combined performance of these stocks up
to three years after each IPO.
Source: PitchBook, Bloomberg(C) JIC. All Rights Reserved.

18

Contents
1 SummaryP32 Startup

P4

2.1

Japan｜Deal Activity

2.2Japan｜Exit

2.3

US｜Deal Activity

2.4

US｜Valuation

2.5

US｜Exit

3 Venture capital
3.1

Japan｜Fundraising

3.2

US｜Fundraising

3.3

US｜Dry powder(C) JIC. All Rights Reserved.

4 Supplementary material collection
4.1

Unicorns

4.2

US Tech Company Trends

4.3

European Market Overview

4.4

Indian Market Overview

4.5

Secondary trading

4.6

Other

P29

P20

19

US : Exit｜Overview• Both the number of IPOs and M&A activities are sluggish.

• In 2023, Instacart‘s IPO garnered attention. Despite having a peak private valuation of $39
billion, its public offering price was only one-fourth of that. The stock price did not perform wellimmediately after the IPO, but it began to pick up from the beginning of 2024. In 2024, trends inlarge-scale IPOs such as Reddit (March 21st) are drawing attention as a precursor for other IPO
hopefuls.
• Corporations are reportedly becoming more cautious about initiating M&As due to stricter
scrutiny from US government antitrust authorities, which exposes them to deal-break risks.
IPO Activity by quarter

M&A Activity by quarter

Deal value ($B)

Deal value ($B)

250

50

200

40

150

30

100

20

50

10
0

0
15

16

17

Source: Pitchbook .
(C) JIC. All Rights Reserved.

18

19

20

21

22

23

15

16

17

18
M&A

IPO

19

20

21

22

23

Buyout20

Contents
1 SummaryP42 Startup

P5

2.1

Japan｜Deal Activity

2.2Japan｜Exit

2.3

US｜Deal Activity

2.4

US｜Valuation

2.5

US｜Exit

3 Venture capital
3.1

Japan｜Fundraising

3.2

US｜Fundraising

3.3

US｜Dry powder(C) JIC. All Rights Reserved.

4 Supplementary material collection
4.1

Unicorns

4.2

US Tech Company Trends

4.3

European Market Overview

4.4

Indian Market Overview

4.5

Secondary trading

4.6

Other

P29

P21

21

Japan : Fundraising• 2023 vintage VC funds have raised JPY 584B.1,2 This amount represents a 5% decrease compared tothe amount raised by 2022 vintage VC funds (JPY 616 billion, the amount observed at the same time
last year).

• The league table is primarily dominated by CVCs or VCs affiliated with financial institutions.
• There have been observations that emerging general partners (GPs) are facing challenges in raisingfunds. The chart on the right indicates that so-called "1st time funds" have not been performing well infundraising over the last three years.

VC Fundraising Activity 1

VC Fundraising Activity: 1st-time manager

Fund count[right]

1st-time fund count [right]

VGI Fund: Capital Raised [left]

800

771

250

Capital Raised(excluding VGI)[left]

700

616 200584
0
547 552
40

600
500

VGI I : capital raised(¥ B) [left]

150

1st-time fund manager: capital raised(¥ B)(excl. VGI I) [left]

204
200
100

179

60

177

150

385

120

40
107

321
300

262

616

252

222
200

571 544

50

100
50

84

100
0

0
15

16

17

18

19

20

30
20

432

182

2013 14

50

159

120

400

70

21

22 2023

10

0

0
2019

2020

2021

2022

2023

Note 1) The figure above is presented on a fund vintage year basis and is subject to upward revisions as past vintage funds close successive rounds moving
forward. Regarding the capital raised for 2022-vintage funds, the figure has increased from ¥ 616B (as of January 2023) to ¥ 770B (as of January 2024).
Note 2) In the absence of VGF 2 (¥200 billion, 2022 vintage) and VGI Opportunity Fund (¥40 billion, 2023 vintage), the total amount raised by 2023-vintage funds
decreased by ¥21 billion year-over-year.
Note 3) For each of the Japanese general partners (GPs), the oldest fund they had raised since 2013 is regarded as the "1st time fund".
Source: INITIAL

22

Japan : Fundraising | New Funds• 2023 vintage roster is dominated by CVCs or VCs affiliated with financial institutions.
Top 10 Funds Launched in 2022

Top 10 Funds Launched in 2023

★ VCs managed by independent manager (not affiliated with any parent organization) .
fund( Management company name )

Size1
(¥ B)

JIC VGF2(JIC Venture Growth Investments Co., Ltd.)
Globis Fund VII, L.P. ★
(Globis Capital Partners & Co.)
JP Investment II(Japan Post Investment Corporation)
JAFCO SV7 ★
(JAFCO Group Co., Ltd.)82 Sustainability I(82 Investment)
EEI5 ★
(Energy & Environment Investment, Inc.)
Eight Roads Ventures Japan III, L.P.
(Eight Roads Ventures Japan)
Sony Innovation Fund 3 L.P.
(Sony Ventures Corporation)
UMI3★
(Universal Materials Incubator Co., Ltd.)DNX Partners Japan IV, LP★
(DNX Ventures)

200.0 2022/12

VintageDate

72.7 2022/4
70.0 2022/7
56.0 2022/6

30.0 2022/1
30.0 2022/9
28.0 2022/6
26.5 2022/2

17.1 2022/9
16.0 2022/10

Fund name( Management company name )

Size1
(¥ B)

Vintage
Date

SBI Venture Fund2023/SBI Digital Space Fund 100.0 2023/9(SBI Investment Co., Ltd. )JICVGI Opportunity Fund No.1
40.0 2023/9(JIC Venture Growth Investments Co., Ltd.)
Mitsubishi UFJ Capital IX
30.0 2023/3(Mitsubishi UFJ Capital Co., Ltd. )SMBC-GB Growth30.0 2023/7(Global Brain Corporation)
SMBC Asia Rising27.0 2023/4(Incubate Fund Management Pte. Ltd.)NTT Investment Partners Fund IV
20.0 2023/4(NTT Docomo Ventures, Inc.)
Mitsubishi UFJ Life Science IV
20.0 2023/4(Mitsubishi UFJ Capital Co., Ltd. )QR2
20.0 2023/7(QR Investment Co., Ltd.)ALL STAR SAAS FUND THREE PTE. LTD.★ 15.7 * 2023/8(BEENEXT Capital Management Pte. Ltd.)
Delight Ventures No. 2
15.1 2023/4(Delight Capital Co., Ltd.)

1 Size as of February 2024.

* USD 110 M. Converted at USD1=JPY142.7 (According to the company's press release in August) .
(C) JIC. All Rights Reserved.

Source: INITIAL
23

Contents
1 SummaryP42 Startup

P5

2.1

Japan｜Deal Activity

2.2Japan｜Exit

2.3

US｜Deal Activity

2.4

US｜Valuation

2.5

US｜Exit

3 Venture capital
3.1

Japan｜Fundraising

3.2

US｜Fundraising

3.3

US｜Dry powder(C) JIC. All Rights Reserved.

4 Supplementary material collection
4.1

Unicorns

4.2

US Tech Company Trends

4.3

European Market Overview

4.4

Indian Market Overview

4.5

Secondary trading

4.6

Other

P29

P21

24

US: Fundraising｜Overview• VC fund raising activity in 2023 was in slump. In particular, emerging managers has been impacted.
• The two factors contributed to the move were (a) a slow down in the exit activities decreased
distributions from funds to LPs, and (b) a decline in the value of listed equity portfolio was translated intoa denominator effect in asset allocation of LPs.
• Although the recovery in the value of listed equity portfolios is alleviating the denominator effect,
stagnant distributions are acting as a headwind for fundraising activities. The outlook appears grim.

Fundraising by emerging1 and experienced

VC fundraising activity by vintage year
Amount ($B)

Fund counts
1,543

300

1,600

1,340

1,400

250

1,200
200

927

150
100

474

795 786494

581 628

70%

1,000

62% 62%

51%

66% 62% 67% 65%

77% 75%

800

662

600
169 173

340

50

56%

71 73

93

400
67

200

51 47
23 39 42002013 14 15 16 17 18 19 20 21 22 2023

44%
30%2013 14

38% 38%

15

16

49%

17

34% 38% 33% 35%
18

19

20

21

Fund countEmerging Firm capital raised ($B)

Capital Raised ($B)

Experienced Firm capital raised ($B)

23% 25%22 2023

Note 1) "Emerging" is defined as firms that have launched fewer than 4 funds. "Experienced" firms are defined as those that have raised 4 or more funds.
Source: Pitchbook(C) JIC. All Rights Reserved.

25

US Fundraising | Major New Funds• The landscape has shifted, with large growth funds that once dominated the top positions involume no longer prominent. Instead, funds focusing on early-stage startups are now leading thepack.
#Fund name 1Size 2 ($M)

Strategy

Investment field• IT , Healthcare, Consumer
Goods

1

GC Venture XI(General Catalyst)

4,600

Early Stage

2

OrbiMed Private
Investments IX

1,860

General3

Khosla Ventures VIII

1,343

Early Stage• Deep tech

4Lux Ventures VIII

1,150

Early Stage• Deep tech( healthcare, aerospace, bio, IT)

5

RTP IV(RTP Global)

1,000

Early Stage• Consumer Goods, IT , Software

6

8VC Fund V

880

Early Stage• Deep tech, IT , healthcare

7

Canaan XIII

850

Early Stage• Bio, financial/insurance services,
IT , logistics, pharmaceuticals

8Felicis Ventures IX

825

Early Stage

• IT

9

Elephant Partners V

800

Early Stage• IT , cyber security

10 Eclipse Ventures Fund V

720

General• Bio, healthcare, IT ,pharmaceutical• Energy, Healthcare, IT ,Semiconductor, Transportation

Note 1) US focused closed funds only, exclude evergreen funds
Note 2) Closed
Source: Preqin, Pitchbook(C) JIC. All Rights Reserved.

26

Contents
1 SummaryP42 Startup

P5

2.1

Japan｜Deal Activity

2.2Japan｜Exit

2.3

US｜Deal Activity

2.4

US｜Valuation

2.5

US｜Exit

3 Venture capital
3.1

Japan｜Fundraising

3.2

US｜Fundraising

3.3

US｜Dry powder(C) JIC. All Rights Reserved.

4 Supplementary material collection
4.1

Unicorns

4.2

US Tech Company Trends

4.3

European Market Overview

4.4

Indian Market Overview

4.5

Secondary trading

4.6

Other

P29

P21

27

USA : Dry Powder｜Overview• The undrawn commitment balance (dry powder) of VC funds is accumulating. VCs are cautiously
evaluatuing investment opportunities and deploying capital slowly as further valuation adjustment ofinvestee SUs is likely and the prospect of recovery in the exit market is uncertain.

• In response to these challenges, some GPs have decided to cut funds size to appease LPs or havelowered the fund raising target.
Dry Powder Volume・Yearly

Major GP company responses to dry powder

Total assets under management in the North American VC market( AuM ) ($B)

GP

Policies reported ( time )Tiger Global

Reducing the target size for its latest venture
fund to $5 billion, down from an expected
size of $12.7Bn ( February 2023 )Founders
Fund

Cut the size of its $1.9Bn VC fund raised byhalf.( March 2023 )Insight
Partners

The target amount of the new fund has been
lowered from $20B to $ 15B ( June 2023 )Sequoia
CapitalCut the size of its cryptocurrency fund to$200M from $585M.
Slashed the size of ecosystem fund to$450M from $900M. ( July 2023 )1,200
Dry Powder($B)

1,000

Unrealized value($B)

$316B
800
600
400
200
0
2006 08

10

12

14

16

18

20

2223
Jun

Note 1) At the end of each year, as of June 30th in 2023
Source: Preqin, The Information, Financial Times, Press Research(C) JIC. All Rights Reserved.

28

Contents
1 SummaryP42 Startup

P5

2.1

Japan｜Deal Activity

2.2Japan｜Exit

2.3

US｜Deal Activity

2.4

US｜Valuation

2.5

US｜Exit

3 Venture capital
3.1

Japan｜Fundraising

3.2

US｜Fundraising

3.3

US｜Dry powder(C) JIC. All Rights Reserved.

4 Supplementary material collection
4.1

Unicorns

4.2

US Tech Company Trends

4.3

European Market Overview

4.4

Indian Market Overview

4.5

Secondary trading

4.6

Other

P29

P21

29

Global: Unicorn｜Overview• The number of new unicorn births per annum has significantly decreased since 2021.
• Total unicorn counts reads over 1,300 currently, but, considering the decline in trading price insecondary market and/or reported valuation applied in financial reports of investors, it is likely to
see many unicorns will be forced to be mark down in the next round in the future.

Number of new unicorns/quarterly/number of companies
180

171

178

North America
148

150

145 142Europe

123

Asia

120

LatAm-Caribbean

90

Africa83

79

Australia
60
30

46 47
18 19 17

10 13

24 20

31 33 28

52
35 39

52

Middle East38

34 34 31

27 28

21

31
10

0
Q1
2016

Q3

Q1
2017

Q3

Note 1) as of 15th February, 2024

(C) JIC. All Rights Reserved.

Q1
2018

Q3

Q1
2019

Q3

Q1
2020

Q3

Q1
2021

Q3

Q1
2022

Q3

Q1
2023

Q3 Q12024

Source PitchBook
30

Global: Unicorn | Valuation• The recent rise in stock prices of listed equities benefits the valuations of some AI-related
unicorns. However, for other types of unicorns, there is evidence of declines in trading prices inthe secondary market and/or reported valuations applied in financial reports by investors.
Valuation in secondary transactions(% , compared to the previous round )
-80

-60

-40

-20

Stripe valuation (Fidelity Investments) 1
0

20
45

2023/12

Anthropic

2023/11

Databricks

2023/10OpenAI

2023/8 Hugging Face
Flexport
2022/3

Series H share price

40
35
30

Brex

2022/12021/12

Airtable

2021/9

Notion2021/9

Discord2021/82021/8

Reddit2021/4

Scale AI

Carta

25

20
15
10
5
2021

(C) JIC. All Rights Reserved.

2022

2023

Note 1: Fidelity slightly increased the valuation of Stripe, a stockincluded in its investment trust, in its investment report( December 2023 )Source:PitchBook , Notice, The Economist

2024

31

Views on the growth potential of IT/SaaS• The number of newly born unicorns has continued to slow down since 2021, and it has been
noted that the reason for this slowdown is not solely due to a higher discount rate applied tovalue these loss-making startups.
• Recently, Andrew Cote at Andreesen Horowitz1 have pointed out that the SaaS business, which
had been the mainstream up until now, has matured. There are fewer SUs that receive highvaluations based on expectations for explosive returns.
• Traditionally, many SUs have been evaluated as unicorns in the SaaS category. However,today's SaaS may have a less attractive risk-return profile for VCs . Some believe that in the
future, AI, space, defense, life sciences, etc. may replace SaaS as new investment target.
S-curve of expected economic growth of newtechnology 1

In the “Request for Startups” shared by YC in February
2024, categories including space, manufacturing, defense,
etc. are among the top of the list of the areas of interest:

Degree oftechnologicalprogressTime
Note 1: Pointed out by Andrew Cote in his newsletter. It was originally based on
the theory advocated by economist Carlota Perez that “economic growthfrom new technology follows an S-shaped curve.”(C) JIC. All Rights Reserved.

Reference: Y Combinator investment theme• Applying machine learning to robotics•Using machine learning to simulate the physical world• New defense technology• Bring manufacturing back to America• New space companies• Climate technology•Commercial open source companies•Spatial computing•New enterprise resource planning software (ERPs)•Developer tools inspired by existing internal tools•Explainable AI•LLMs for manual back office processes in legacy enterprises•AI to build enterprise software•Stablecoin finance•A way to end cancer•Foundation models for biological systems•The managed service organization model for healthcare•Eliminating middlemen in healthcare•Better enterprise glue
•Small fine-tuned models as an alternative to giant generic ones

Source: TechCrunch and Y Combinator website .

32

Contents
1 SummaryP42 Startup

P5

2.1

Japan｜Deal Activity

2.2Japan｜Exit

2.3

US｜Deal Activity

2.4

US｜Valuation

2.5

USA｜Exit

3 Venture capital
3.1

Japan｜Fundraising

3.2

US｜Fundraising

3.3

US｜Dry powder(C) JIC. All Rights Reserved.

4 Supplementary material collection
4.1

Unicorns

4.2

US Tech Company Trends

4.3

European Market Overview

4.4

Indian Market Overview

4.5

Secondary trading

4.6

Other

P29

P21

33

U.S. tech company trends | Headcount reduction• The layoffs at tech companies, which began in 2022, peaked in the first half of 2023 and then reached alull for a while. However, since the beginning of 2024, major tech companies have resumed large-scalelayoffs. In response to the post-pandemic environment, major tech companies are conducting strategic
reviews on business lines that are unlikely to yield quick results. They are cutting investments andfocusing more on cost efficiency. These layoffs have been appreciated by investors and are reflected in
the current stock prices.

Trends of layoffs in tech companies since thecoronavirus shock
No. of layoffs(‘0,000)

No. of companies with layoffs
600

24Companies with layoffs

22

Employees laid off

20

500

18
400

16
14

300

12

Major tech companies layoffs
・Google: Targets a wide range of operations including voiceassistant (Google Assistant), engineering, and advertisingsales ( few hundred people )・Amazon : Reduction in video distribution and production
business (several hundred people)
・Microsoft : Reduced the number of people in the gamedepartment ( After acquisition of Activision Blizzard ) (1,900
people )・Apple : Plans to lay off development team employees due towithdrawal from EV business・Cisco : Deteriorating environment in networking equipment
business ( 5% of total employees, over 4,000 people )Changing trends

10
200

8

6
100

4

-2023

2
0

0
2020

2021

2022

2023

2024

2024Source: Layoffs.fyi (data as of March 11, 2024) and news reports(C) JIC. All Rights Reserved.

• Adjusting overstaffing in light ofdeteriorating company performance(due to rising inflation, weak
consumer demand).
• Companies including those with great
performance are reducing personnel
to improve organizational efficiency.
34

Contents
1 SummaryP42 Startup

P5

2.1

Japan｜Deal Activity

2.2Japan｜Exit

2.3

US｜Deal Activity

2.4

US｜Valuation

2.5

USA｜Exit

3 Venture capital
3.1

Japan｜Fundraising

3.2

US｜Fundraising

3.3

US｜Dry powder(C) JIC. All Rights Reserved.

4 Supplementary material collection
4.1

Unicorns

4.2

US Tech Company Trends

4.3

European Market Overview

4.4

Indian Market Overview

4.5

Secondary trading

4.6

Other

P29

P21

35

Europe Deal Activities| Overview• Overall deal activities began to decline in 2022, and this trend continued into 2023 with further
decreases. The main contributing factor was a decrease in later/growth stage deals.
• On a quarterly basis, deal activities have remained almost flat after experiencing a significant
decrease from 2022 Q2.
Annual deal activity trends 1

Quarterly deal activity trends 1

Deal Counts

Seed/Angel

Deal Value(€B)

Early

Deal Counts(‘000)

120

110

15
105

100
80

10

60

5

33

19
9

40

4.5

35

4.0

30

3.5

3.0

25

15

1.5

10

20

12

1.0

5

0

0
2013 14

Deal Counts(‘000)

2.0

26
20

Deal Value(€B)

20

41
40

Growth

2.5

57

52

Later

15

16

17

18

19

20

21

22 2023

0.5

0

0.0
2021

2022

2023

Note 1) Stage definitions are based on PitchBook classification. Growth stage refers to funding from Series E.
Source: PitchBook(C) JIC. All Rights Reserved.

36

Europe : Valuation | Overview• In 2023, growth and later-stage startup's valuation sharply declined from the level of theprevious year.

Valuation Changes: Venture Growth Stage 1

Valuation Changes: Other stages 1

Pre-money valuation/median (€M)

Pre-money valuation/average value (€ M)

60

18

-46%

-32%

16

50

14

40

12
10

30

8

20

6

4

10

2

0
2015 16

17

18

19

20

21

0
2015 16

22 2023

Growth

Later

Early

17

18

19

20

21

22 2023

Seed

Note: Pitchbook defined venture growth stage as rounds after Series E.
Source: Pitchbook(C) JIC. All Rights Reserved.

37

Europe : Exit | Overview• European SU exit activity is sluggish in both IPOs and M&A. In 2023, the IPOs of ARM and
IONOS, two former European SUs, were expected to have a positive impact on other IPO
hopefuls, but the expectation did not materialize.
• In 2024, Klarna and Northvolt are expected to go public, and the results will attract attention.
• Exits were mainly through M&A in 2023. The largest deal was the acquisition of the biotech /pharmaceutical SU Kerecis (Iceland) by the medical equipment manufacturer Coloplast(Denmark) at a valuation of €1.2 billion.
IPO Activity by quarter
Deal value (€B)

M&A Activity by quarter
Deal counts

60

80

Deal value (€B)
15350

Deal counts

Total deal counts

Deal value

M&A deal value

60
40

Deal counts

Buyout deal value

10

300
250
200

40

150
20

5

100

20

50
0

0

2015 2016 2017 2018 2019 2020 2021 2022 2023

002015 2016 2017 2018 2019 2020 2021 2022 2023

Source: PitchBook(C) JIC. All Rights Reserved.

38

Europe : Fundraising | Overview• VC fund raising activities continue to be sluggish. In particular emerging managers perform poorly.
• European public investment institutions, such as the EIF, are increasing their funding to VC funds,
recognizing the equity funding gap for growth-stage SUs. Additionally, in light of rising geopolitical risks,NATO has launched a fund, the NATO Innovation Fund, to invest in deep tech SUs/VCs. The fundraised a total of €1 billion from the governments of 13 NATO member countries and others.

Fundraising by emerging1 and experienced

VC fundraising activity by vintage year
Amount (€ B)

Fund counts

3525

278 270274

350

302 299

291

33

181

10

18
10

10

2013 14

15

9

22

46%
57%

54% 55%

250

150

21
17

15

48%

200

28

27

35% 37% 34%
42% 39% 40%

300
141

233

20

5

400

370

30

15

450

409

65% 63% 66%
58% 61% 60%

100

52%

54%
43%

46% 45%

50

0

0
16

17

18

19

20

21

22 2023

2013

14

15

16

17

18

19

20

21

Fund counts

Emerging Firm capital raised (€ B)

Capital raised (€ B)

Experienced Firm capital raised (€ B)

22

2023

Note 1) "Emerging" is defined as firms that have launched fewer than 4 funds. "Experienced" firms are defined as those that have raised 4 or more funds.
Source: Pitchbook(C) JIC. All Rights Reserved.

39

Contents
1 SummaryP4

2 startup

P5

2.1

Japan｜Deal Activity

2.2Japan｜Exit

2.3

US｜Deal Activity

2.4

US｜Valuation

2.5

USA｜Exit

3 venture capital
3.1

Japan｜Fundraising

3.2

US｜Fundraising

3.3

US｜Dry powder(C) JIC. All Rights Reserved.

4 Supplementary material collection
4.1

Unicorns

4.2

US Tech Company Trends

4.3

European Market Overview

4.4

Indian Market Overview

4.5

Secondary trading

4.6

Other

P29

P21

40

India : SU Finance Market Overview• India's SU finance market is the fourth largest in the world after the US, UK, and China .

index

US

Europe

China

India

SEA

Japan * Global
2023 SU Funding Top

SU funding
amountGlobal ranking /composition ratio
(%)

$107B

#1
( 56% )

$40B

21%

$12B

#3
( 6% )$7B#4( 4% )

$4B

(2%)

$5B

#7
-

$189B

US

$107B

England

$12B

China

$12B

India

$7B

Germany$7B

France

$6B

Japan

$5B

100%

SU funding deal
counts

5,691

3,783

578

1,000

448

2,828

13,572

Unicorn ( current )

660

198

152

94

45

9

1,275

New unicorn

28

4

4

2

1

1

58

EXIT (M&A)

1,263

1,425

22

119

61

118

3,569

EXIT (IPO)

34

11

30

18

10

49

130

* Japanese data is from INITIAL. Converted to USD at USD 1 = JPY150.
Source: Tracxn, INITIAL(C) JIC. All Rights Reserved.

41

India : SU finance market• India is expected to experience high economic growth, particularly in the consumer market, driven by
the increase in its vast middle-class population. The Indian government made efforts to improve scienceand mathematics education in the 1990s. The country also benefits from an abundance of highly skilled
IT personnel, leading to a rise in the number of IT development bases.
• India's favorable economic environment is fostering the growth of startups (SUs). Additionally, there arehigh expectations for startups to play a key role in addressing social issues such as economic
disparities that emerge during the growth process. Consequently, Indian startups are attracting
investment not only from domestic investors but also from foreign investors.
Marketcharacteristics

Opportunities in the SU sector✓

Fintech: Financial inclusion needs
Less than 5% of households have access to credit.

✓

Ecommerce / Consumer Service / Internet:
A large number of people are connected to the Internet*, and there is a large needto consume goods and services via the Internet.
*the number of Internet users is over 700 million, and smartphone users is over
900 million.

✓

B2B Commerce & Services :63 million small and medium-sized enterprises have large needs for technology
implementation.

✓

Healthcare:
Improvements in living standards and changes in lifestyles are creating newneeds, such as dealing with lifestyle-related diseases, but healthcare services
remain inefficient.

✓Enterprise Tech/SaaS:
Abundant highly skilled human resources and relatively low labor costs.

Huge
consumer market

Abundant
high-level IT
human resources(C) JIC. All Rights Reserved.

42

India : Deal Activities• In line with the global trend, startup (SU) deal activities in India are also experiencing a steep
decline after peaking in 2021. The deal value of SUs in 2023 decreased by 72% from its peak.
Particularly, the deal value of later-stage SUs, which previously constituted the largest segment,
witnessed the most significant decline, plummeting by 88%.
Deal Activity 1 (Amount ($B) /Deal Counts )Amount raised
($B)
Seed
45
Early
40
Later

35

Deal Counts

3,500

42

3,000

Deal Counts [Right]
2,500

30

26
25

20

17

15

1,500

17
13

12

1,000

12

10

7

9

9
5
0

2,000

33

1

3

2018

4
1
2019

1

3

2020

7

8

2

2

2021

2022

500

4
1

2

0

2023
Source: Tracxn

Note 1) Series A and B are shown as Early, and Series C+ are shown as Later, according to Tracxn's classification.
(C) JIC. All Rights Reserved.

43

India : Deal Activities ｜ Deal Size
• Average deal size for Series C and later is declining.

Average Deal Size
USD M

USD M

30

250
Series C+
200

20
Series B

150
100
10

Series A

50

Seed
2019

20

21

22

2023

2019

20

21

22

2023

Source: Tracxn(C) JIC. All Rights Reserved.

44

India : Deal Activities ｜ Valuation• Valuations for Series C and later has been halved since its peak in 2020. 1

Valuation Changes (Post-money valuation / average)
USD M

USD M

3,500

140
Series C+

3,000

120

2,500

100

2,000

80

1,500

60

1,000

40

500

20

0
2019

Series B

Series A

Seed
20

21

2022

2019

20

21

2022

Note 1) 2023 data is exlcuded from the graphs due to limited sample size.
Source: Tracxn(C) JIC. All Rights Reserved.

45

India : Deal Activities ｜ Sector• The scale of startup (SU) financing in sectors such as Fintech, E-commerce, and Enterprisetech
reflects India’s market characteristics, including its large consumer market. Despite thesignificant shrinkage of the entire funding market in 2023, these three sectors remained relatively
strong compared to others. As a result, their composition ratio within the whole increased
compared to the previous year, rising from 49% to 70%.
SU funding amount (by sector) (in $B )2022
0Fintech

1

2

2023
3

4

0

5

1

2

3

4

5

FintechEcommerce

EcommerceEnterprise techEnterprise tech

EdtechMedia & Entertainment

Cleantech
Deeptech

Consumer Services
Logistics

Consumer Services
Media & Entertainment
Deeptech

Other(C) JIC. All Rights Reserved.

EdtechHealthtech
Source: Inc42

46

India : Foreign investors• International investors used to frequently participate in Indian startups' later-stage financing. However,their appetite has waned, and they are now participating less. For instance, foreign investors who wereactively investing in later-stage startups, such as Tiger Global and Accel, are now participating fewertransactions. Tiger Global made 48 deals in 2021, 22 deals in 2022, and 2 deals in 2023.

Trends in foreign investors investing in Indian SU( number of investors )Top Foreign investors
Stage

Investor name

1,000

#Investments
in 2023

Y Combinator

19 ( ▲ 56%)

Surge

11 (±0%)Better Capital

8 ( ▲ 79%)Accel

9 ( ▲ 64%)

Tiger Global Management

2 ( ▲ 89%)

Lightspeed Venture Partners

2 ( ▲ 50%)

Glade Brook Capital

1 (±0%)

800
Seed

600

400
Early

200

0
2018

2019

2020

2021

2022

2023

Later

Source: Tracxn(C) JIC. All Rights Reserved.

47

India : Exit
• While India boasts numerous unicorns, a relatively small number of them have gone public sofar. Potential reasons behind this include: (a) India lacks a well-developed dedicated listing
market for startups, akin to NASDAQ in the US, and strict listing standards are applied tostartups., and (b) The IPO application process is complex, and underwriting costs are expensive.
Additionally, many investors prefer to invest in startups, and it's often a favorable choice forstartups to continue private funding to fuel growth rather than going public.
• The number of M&A deals in 2023 saw a decline of 36% compared to the previous year,
reflecting the overall slump in the capital market.
Indian SU EXITs ( IPO , M&A )202

IPO deal counts

23

M&A deal counts

206
19

137
18
93
9

78
5

179

187
119

84

2019

73

2020

2021

2022

2023

Note 1) “ IPO landscape: Challenges and opportunities for Indian unicorns to go public ” ( mint, December 22 , 2023 )(C) JIC. All Rights Reserved.

Source: Tracxn

48

India : Unicorns• India's vast consumer market and ample investment funds for late-stage startups, primarily from foreign
investors, have contributed to the emergence of numerous consumer/internet and fintech-related unicorns.
• However, mirroring global downtrends, there are former unicorns whose stock price performance has beenlackluster post-listing, as well as current unicorns facing downward valuation adjustments by investors.

Typical former unicorn (Post-IPO)• Zomato: fintech founded in 2008, valued at$16.5B (IPO in 2021 )• Paytm: fintech founded in 2000, valued at$3.0B (IPO in 2021 )Post-IPO Unicorn : Stock price trends ( indexed with the end of 2021 as 100 )SENSEXZOMATO

PAYTM
NYKAA

140
120
100
80

• Nykaa: online marketplace founded in 2012,valuation $5.2B (IPO in 2021)

60
40

20
2021/122022/62022/122023/62023/12Current representative unicorn ( IPO planning in progress)• Swiggy: online food delivery service,
founded in 2014 , valued at $12.2B,(planning IPO in 2024 )• Ola Electric: , ride sharing service, founded in2017, valued at $5.5B (planning IPO in 2024)• Byju’s: Education /Edtech, founded in2011 , valued at $1.0B(C) JIC. All Rights Reserved.

Changes in unicorn evaluation(%)[ from the 2023 investment reports of each investment company ]-100 -80 -60 -40 -20 0

20

Swiggy (Baron Capital Group)
OLA (Vanguard)
Byju’s (BlackRock)

Source: Bloomberg , Tracxn , Inc42 .

49Contents
1 SummaryP42 Startup

P5

2.1

Japan｜Deal Activity

2.2Japan｜Exit

2.3

USA｜Deal Activity

2.4

US｜Valuation

2.5

USA｜Exit

3 Venture capital
3.1

Japan｜Fundraising

3.2

USA｜Fundraising

3.3

USA｜Dry powder(C) JIC. All Rights Reserved.

4 Supplementary material collection
4.1

Unicorns

4.2

US Tech Company Trends

4.3

European Market Overview

4.4

Indian Market Overview

4.5

Secondary trading

4.6

Other

P29

P21

50

Japan | Expanding secondary needs• The lifespan of a VC fund is 10 years+α . Consequently, VC funds from the 2012 to 2014 vintage are now
approaching the point where they must liquidate their portfolios to meet the fund dissolution deadline.
• In total, there are 106 VC funds from the 2012 to 2014 vintage, with a combined fundraising amount of¥440 billion. According to estimates by JIC (*), the net asset value (NAV) of the portfolios held by theseVC funds is approximately ¥340 billion.
• Given the current unfavorable IPO environment and the underdeveloped M&A market for acquiring
startups in Japan, there is a growing necessity to sell these portfolios in the secondary market.
¥B[VC fundraising status (by vintage ) ]

730

800
2012-2014 vintage commitmentamount : ¥ 440B

600
400

200

83.6

19

85

67

38

2010

2011

2012

222

183

2013

2014

525

262

321

589

538

397

390

252

0
2008

2009

2015

*

2016

2017

2018

2019

2020

2021

2022

2023

The estimation is made by multiplying the median PIC (%) and median RVPI (%)
for each vintage in the JVCA-Preqin survey ( based on the end of December
2022 ) by the VC fundraising amount by vintage (INITIAL).

[ Potential secondary sales needs (by vintage) ]¥B¥500-600B

600

2012-2014 vintage NAV : ¥ 340 B

400
200
0

14

41

Current primary VC fund2011
Total annual fundraising amount(¥ 500 – 600 B)

2012

109

2013

190

2014

As VC fundraising by vintage has been increasing since 2014, the needfor sale in the secondary market is also expected to continue to expand.

2015

2016

2017

2018

2019

2020

2021

2022

2023
51

Contents
1 SummaryP42 Startup

P5

2.1

Japan｜Deal Activity

2.2Japan｜Exit

2.3

USA｜Deal Activity

2.4

US｜Valuation

2.5

USA｜Exit

3 Venture capital
3.1

Japan｜Fundraising

3.2

USA｜Fundraising

3.3

USA｜Dry powder(C) JIC. All Rights Reserved.

4 Supplementary material collection
4.1

Unicorns

4.2

US Tech Company Trends

4.3

European Market Overview

4.4

Indian Market Overview

4.5

Secondary trading

4.6

Other

P29

P21

52

Other | Market cyclicality

Maximum value

North American VC funds, by vintage, Net Multiple ( times )1st quartile

8

Median7

1st quartile
minimum value

6
5
4
3
2
1
0
83

85

87

89

91

93

95

97

99

01

03

05

07

09

11

13

15

17

19

21

2023

Source: Preqin(C) JIC. All Rights Reserved.

53

Other | Market cyclicality• Excellent startups emerged from boom and bust cycles in the past.

Source: Bloomberg(C) JIC. All Rights Reserved.

54