Global and Japan Venture
Capital Market Update・2023H1

September 2023
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 August
2023.
• 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,
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• The information and analysis herein do not constitute advice of any kind, are not intended to
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• Ask JIC for more information: https://www.j-ic.co.jp/en/contact/(C) JIC. All Rights Reserved.

2

Contents
1

2

Start-up

1.1

Japan | Deal Activity

6

1.2

Japan | Exit

14

1.3

US | Deal Activity

18

1.4

US | Valuation

23

1.5

US | Exit

27

Venture Capital

2.1

Japan | Fundraising

29

2.2

US | Fundraising

32

2.3

US | Dry Powder

35(C) JIC. All Rights Reserved.

3

Summary• In the US, the first half of 2023 recorded an even steeper downturn in terms of start-up financing
activities and venture capital market.
• Japan’s start-up financing activities also faced market headwind and showed fatigue.
US

Japan

Start-up• Deal activity continued to plummet in•both dollar value and deal counts.
Valuations adjustment materialized in bothlate and early stages, while venture•
growth stage was hit most.
• Non-traditional Investors’ (cross-over•investor etc.) participation in deal activity
declined sharply.
• Exit still muted for both IPO and M&A.

Venture Capital• Fundraising stalled, and LP preferred
to concentrate commitments on
proven VC funds rather than emerging
managers.
• Dry powder continued to pile up due toslow-down in capital deployment.
• LP reduces commitment due to thediminishing distributions from VC funds.

(C) JIC. All Rights Reserved.

Deal activity began to show fatigue.
Average deal size in late stage shrinks,
implying the down trend of valuation.
International investors’ participation in
major deals continued dropping.
IPO counts slightly decline compared tolast year’s record, whereas M&A activities
kept the same pace with last year’s record.

• Total amount raised by 2023 vintage VC
funds slightly increased compared to lastyear’s record.

4

Contents
1

2

Start-up

1.1

Japan | Deal Activity

6

1.2

Japan | Exit

14

1.3

US | Deal Activity

18

1.4

US | Valuation

23

1.5

US | Exit

27

Venture Capital

2.1

Japan | Fundraising

29

2.2

US | Fundraising

32

2.3

US | Dry Powder

35(C) JIC. All Rights Reserved.

5

Deal Activity｜Overview• Start-ups raised total amount of ¥335Bn in the first half of 2023H1.
• It is a clear slow-down compared to the preliminary results of the same period last year.
Deal Activity1

Half on Half Comparison

Deal Value(¥Bn)

Deal Counts

1,500

3,500

3,227
3,081 3,135 3,061
3,062

Deal Counts

Deal Value

1,200

3,000

Deal Value(H1)

1,990

900

946

2,164

868

1,639

607
492

1,241
555

143

203

257
125

0

150

450

2,500

350

2,000

300

-19%

416

240

256

271

388

335

250
1,500
1,000

361
300

500

400

2,520

600

Deal Value of 1st Half of the Year(¥Bn)

200
150
100

491
335

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
H1

500
0

50

0
2022 H1
2023 H1(as of July 2022) (as of July 2023)

Note 1) The above figure is the aggregate value of current data. It might be subject to revise when deals in the past are identified retrospectively.
Source: INITIAL( as of July 2023)(C) JIC. All Rights Reserved.

6

Deal Activity｜Average Deal Size
• The overall average deal size slips due to the increase in smaller transactions.
• The average deal size falls significantly for established companies (founded within 3-7 years;
founded 7 or more years ago).
• Meantime, the less established companies (founded within 1-3 years) were also impacted by thetrend of valuation adjustment.
Average1 Deal Size2

Average3 Deal Size by Found Year Bucket

(¥Mn)

(¥Mn)

400

700

350

600

300

500

250

400

Founded 7+ years

300

Founded within 3-7 years

200
150

200

100

100

50
0
2014

Founded within 1-3 years

15

16

17

18

19

20

21

22

2023
H1

Founded less than 1 year0201415 16 17 18 19 20 21 222023
H1

Note 1) Total amount of deal value divided by the total number of deal counts
Note 2) The above figure is the aggregate value of current data. It might be subject to revise when 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( as of July 2023)(C) JIC. All Rights Reserved.

7

Reference｜SU founded 7+ years• The following table lists up Top 10 deals of SU that founded 7 or more years ago, ranked byvalue.
2023H1 Top 10 Deals

2022 Top 10 Deals

2021 Top 10 Deals

Company Name

Deal Size(¥Bn)

Company Name

Deal Size(¥Bn)

Company Name

Deal Size(¥Bn)

1Astroscale Holdings

10.0

1

Shizen Energy Inc.

24.4

1

SmartNews, Inc.

25.1

2

GO

9.9

2

ANDPAD Inc.

10.6

2

GO

17.6

3

Cluster

5.2

3

Spiber10.5

3

SmartHR

15.6

4

Enito Group, Inc.

4.6

4

Gojo and Company, Inc.

8.0

4

Spiber

14.4

5

Terra Motors

4.0

5

Rapyuta Robotics

6.4

5

Astroscale Holdings

11.6

6

CureApp

3.5

6

SPREAD Co., Ltd.

5.6

6

TBM

9.7

7

Gojo and Company, Inc.

3.3

7

Kyash

5.2

7

STORES

8.1

8

hacomono

2.9

8SUPER STUDIO

5.0

8

NETSTARS

7.9

9

Cellusion Inc.

2.8

9

ELIIY Power Co., Ltd.

5.0

9bitbank, Inc.

7.5

2.8

10 XICA Inc.

4.5

10 ATONARP Inc.

5.9

10 STORES

Average 4.9

Average 8.5

Average 12.3

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

8

Reference｜Japan Stock Market Index• TSE Mothers Index’s underperformance over TOPIX suggests the sluggish recovery ofJapanese tech companies stock in the first half of 2023.
Stock Price on Dec 30th 2021 as starting value of 1001
120

TPX Index2

115
110
105

100

100

95
90
85
80

TSEMOTHR Index3

75
70

65
60
01/22

03/22

05/22

07/22

09/22

11/22

01/23

03/23

05/23

07/23

09/23

11/23

Note 1) The range of above data set is from Jan 4th 2022 to Sept 5th 2023.
Note 2) Ticker: TPX Index
Note 3) Ticker: TSEMOTHR Index
Source: Bloomberg(C) JIC. All Rights Reserved.

9

Deal Activity｜Major Deals(2023H1)• International investors’ participation in major deals continued dropping.(4 out of top 20)(Unit ¥Bn)

Company NameBusiness Description
1 Kyoto Fusioneering Developer of fusion technology

Amount1 Series Valuation Date Investors｜International Investors (Blue)、JIC VGI (Red)
10.5

C

54.5

2 Astroscale HD

Space/space debris removal

10.0

E

126.1

3 GO
4 CADDi
5 LayerX

Dispatch system for taxi drivers
Procurement platform for manufacturers
Corporate expense management service"Bakuraku", etc.

9.9
8.8
8.1

B
C
B

136.5
63.1
36.4

6 cluster

Metaverse platform (live music/conferences, 5.2
etc.)
Dating Apps Service
4.6
Charging Infrastructure for EVs
4.0

D

29.2

-

80.5
10.7

e-sports and entertainment (theme park
3.6
development, platform business)
Disease treatment App
3.5
Mobile communication device for medical
3.4
institutions
Microfinance in developing countries
3.3
Membership management and reservation
2.9
platform
Micro electric mobility
3.0
Development of cell therapy using iPS cell- 2.8
derived corneal endothelial replacement cells

C

6.9

E
D

49.7
12.4

C

73.9
11.9

C
B

16.2
5.8

Platform for small merchants setting up online 2.8
store, POS cash register, cashless payment,
reservation system, and store applications.
Comprehensive, global solution for token
2.7
compensation & tax compliance
Small-scale decentralized water circulation
2.7
systemE-

2/3 Cool Japan Fund
2/3 Coral Capital; Rakuten Group; Cygames Capital; GMO Venture Partners; Signifiant; BEENEXT
Capital Management Pte. Ltd.
5/12
5/31 JIC VGI; Nissay Capital; Sparks Asset Management; Axil Capital Partners II Limited Liability
Partnership; SBI Investment; AIS CAPITAL; University of Tokyo Edge Capital Partners; DBJ
Capital DBJ Capital; SMBC Venture Capital; Gemseki
1/16 Google LLC--

5/9 Next Web Capital; gmjp; Orange DAO

-

23.6

-

19.0

4/28 Mitsubishi UFJ Trust and Banking Corporation; Sumitomo Mitsui Trust Bank; Metawater;
Takasago Thermal Engineering; San-ai Obbli; Sekisui Chemical; Dentsu Innovation Partners;
Maesawa Industry; Iyogin Capital; NCB Venture Capital; Himegin Lease; Ocean Lease; Future
Venture Capital; Yamanashi Chugin Management Consulting Co. Future Venture Capital;
Yamanashi Chugin Management Consulting; Iwagin Creative Capital; KOBASHI HD; quantum
4/3 KDDI; KDDI Digital Divergence HD

C

46.0

7 Enito Group
8 Terra Motors
9 TEG
10 CureApp
11 frontier field
12 Gojyo & Co.
13 hacomono
14 Luup
15 CELLUSION

16 STORES

17 Toku Inc

18 WOTA19 FLYWHEEL, Inc.

20 Telexistence

Platform that enables the collection, analysis, 2.5
and utilization of data across departments in acompany.
Robot/AR/VR
2.5

5/17 JIC VGI; INPEX; SMBC Venture Capital; MOL; PLUS GK,; K4 Ventures; Coral Capital; Sumitomo
Mitsui Trust Investment; Jafco Group; DBJ Capital; Power Development; Global Brain; Mitsui & Co;
Mitsubishi Corporation; Mitsubishi UFJ Capital; Mitsubishi UFJ Bank
2/27 Mitsubishi Electric Corporation; Bank of Mitsubishi UFJ; Mitsubishi Corporation; Development Bankof Japan; FEL Inc.
5/19 The Goldman Sachs Group, Inc.
3/10
5/31 Mitsui; ANRI; BEENEXT Capital Management; GMO Venture Partners; Jafco Group; Spiral
Capital; Z Venture Capital; Dawn Capital; Mitsubishi Estate; Mitsubishi UFJ Capital; JIC VGI;
Mitsubishi UFJ Innovation Partners; DIMENSION; UB Ventures; SBI Investment; Mizuho Capital
5/31 Sparks Asset Management; SBI Investment; ORIX Corporation; Global Brain; Skyland Ventures;
Sumitomo Mitsui Trust Bank; NOBUNAGA Capital Village; Hakuhodo DY Holdings.
4/6
6/26 Osaka Gas; Tokyo Century Corporation; Sumitomo Mitsui Auto Service Company, Limited;
Pegasus Tech Ventures; KSK Angel Fund LLC
4/28 IMAGICA GROUP; Saif; GCI Ventures Pte. Ltd; Japan Tobacco; Property Agent; Media Create
Communications; Robot Home; Maruichi
5/10
5/29 Suzuken; Otsuka Pharmaceutical Factory

5/31 Monoful Venture Partners LLC; Global Brain; Airbus Ventures; Softbank Group; Foxconn
Technology Co., Globis Capital Partners

Source: INITIAL, Pitchbook, Company websites(C) JIC. All Rights Reserved.

10

Deal Activity｜Major Deals(2022)• 8 out of top 20 deals witnessed the international investors’ participation.
Company Name
1 Shizen EnergyGroup
2 LegalOn
Technologies(Unit ¥Bn)

Business Description
Amount1 Series Valuation Date Investors｜International Investors (Blue)、 VGI (Red)
Renewable energy power plants (IPP) 24.4
A
43.2
10/26 Caisse de dépôt et placement du Québec; JIC VGI; SIGMAXIS Investment
AI contract review platform that enables 13.6
legal professionals to review contracts
quickly and efficiently.
High-precision 3D map data
13.4

D

88.4

6/29 SB Investment Advisers (UK) Limited; Sequoia Capital China; The Goldman Sachs Group Inc; World
Innovation Lab; Mizuho Capital; Mitsubishi UFJ Capital

C

68.5

4/26 HULIC STARTUP; Mitsubishi UFJ CapitalOpen source automated driving software12.1
Cloud-based construction project
10.6
management service
Structural protein material development 10.5
Development of flying cars and logistics 9.1
drones

C
D

90.8
85.3

6/3
9/2

D
D

145.7
29.9

Microfinance in developing countries

8.0

-

70.2

9 AI Medical Service Development of AI to support diagnostic 8.0
imaging of endoscopes
10 Kakehashi
Cloud-based electronic medication
7.7
history system for patients

C

40.4

-

40.5

11 Animoca Brands

Building platform utilizing blockchain
7.4
technology
12 Rapyuta Robotics Robot platform developer
6.4
13 Ubie
Telemedicine/symptom search system 6.2

A

74.3

D
C

22.2
31.1

14 SpreadManagement of vertical farms and sales 5.6of vertically farmed produce
Development and operation of small
5.4
SAR satellites
Development, production and sales of 5.3
plant meat

A

13.8

B

40.2

E

33.5

Wallet App
5.2
Provider of corporate cards and payment5.2
tools for fast-growing companies
19 Jinjer
Business efficiency support cloud service5.1
20 SUPER STUDIO E-commerce platform "ecforce”
5.0

D
D

33.9
39.7

A
B

27.0
23.5

3 Dynamic Map
Platform
4 TIER IV
5 ANDPAD
6 Spiber
7 SkyDrive

8 Gojyo & Co.

15 Synspective
16 DAIZ

17 Kyash
18 UPSIDER(C) JIC. All Rights Reserved.

SOMPO Holdings; Yamaha Motor; Bridgestone Corporation
Minerva Growth Partners; T. Rowe Price Japan; Globis Capital Partners; DNX Ventures; Sumitomo Mitsui
Trust Investment; Development Bank of Japan; for Startups, Inc
3/28 The Carlyle Group; Cool Japan Fund; Tokyo Century; Spiber Group Employee Stock Ownership Plan
9/21 SCSK; Kansai Electric Power Company; Kintetsu Group HD.; Suzuki Motor Corporation; Sompo Japan;
Tokio Marine HD; Toyoda Iron Works; Nippon Kayaku; NHK SPRING CO., LTD.; Sumitomo Mitsui Trust
Bank; Mitsubishi UFJ Bank; Pegasus Tech Ventures
12/27 GMO Venture Partners; TGVest Capital Inc.; Miyagin Venture Capital; Itochu Corporation; Venture Lab
Investment; HFA Capital; FFG Venture Business Partners; Samurai Incubate; Hashimoto Foundation;
CAPITAL X; QR Investment; TransLink Capital; Sumisho Venture Partners; Marubeni; Chiba Dojo; Tsuneishi
Capital Partners; iSGS Investment Works; SMBC Nikko Securities; ACA Investments Pte Ltd; Hakuhodo DY
Ventures; Global Brain
5/11 SB Investment Advisers (UK) Limited; Globis Capital Partners; World Innovation Lab; Incubate Fund
12/20 Mynavi; AXIOM ASIA PRIVATE CAPITAL PTE. LTD; Dai-ichi Life Insurance; Aozora Corporate Investment;
for Startups Capital LLC; Globis Capital Partners; DNX Ventures; Sumitomo Mitsui Trust Investment;.
Salesforce Ventures
8/26 Mitsubishi UFJ Bank; Animoca Brands Corporation Limited.; MCP NFT I Management Limited
5/13 The Goldman Sachs Group Inc; Mercuria Investment; Mizuho Leasing; Mitsubishi Warehouse; MOL PLUS
10/6 Norinchukin Capital; NVenture Capital; Dai-ichi Life Insurance; Egg Forward; Suzuken; Chubu Electric Power;
SOGO Medical; AAIC INVESTMENT PTE. LTD; Rakuten Group; Japan Impact Investment No. 2 LLP
8/1 MANSEI CORPORATION
6/20 Sumitomo Mitsui Trust Investment; Shinsei Corporate Investment; Sompo Japan; Oriental Consultants
Global; Japan Post Capital; Mizuho Capital; Growth Capital of Japan, INC.; Mori Trust
11/24 Toyo Seikan Group Holdings; Miyoshi Oil & Fat; JA Mitsui Leasing; Nissin Flour Milling Group; Cool Japan
Fund; Investment Lab; MITSUI SUMITOMO INSURANCE Venture Capital; SBI Investment; Nissin Foods
Holdings Co.
6/3
6/30 Mizuho Capital; SMBC Venture Capital; DST Global Partners; Arena Holdings Management; Tybourne
Capital; Mitsubishi UFJ Capital; Saison Ventures; World Innovation Lab; ANRI;. Global Brain; DNX Ventures
6/30 Link and Motivation Co.
7/7 SB Payment Service Co.

11

Deal Activity｜Major Deals(2021)• 13 out of top 20 deals witnessed the oversea investors participation.
Company Name
1 SmartNews

Business Description
News App “SmartNews”

2 GO
3 SmartHR

Dispatch system for taxi drivers
Provision of "SmartHR" cloud-based HR
software
Structural Protein Material Development

4 Spiber㈱5 Astroscale
Holdings

Space/space debris removal

6 TBM

Development and production ofenvironmentally friendly materials“SNKRDUNK”, a sneaker & high-brand flea 9.1
market app
Healthcare platform business
8.2

7 SODA(Unit ¥Bn)

Amount1 Series Valuation Date Investors｜International Investors (Blue)、 VGI (Red)
25.1
F
203.9
10/29 Princevi Capital; Woodline Partners; ACA Investments. JIC VGI; Green Co-Invest Investment; YamauchiNo.10 Family Office; SMBC Venture Capital Co.
17.6
B
116.9
6/30 Aioi Nissay Dowa Insurance Co.
15.6
D
173.2
6/30 Light Street Capital; Signifiant; Sequoia Heritage; Sequoia Capital Global Equities; Arena Holdings
Management; Greyhound Capital; Whale Rock Capital Management
14.4
D
135.2
12/29 Universal Materials Incubator Corporation; Baillie Gifford; The Carlyle Group; Cool Japan Fund; Fidelity
Investment Trust; Tokyo Century; The Yamagata Bank, Ltd; Satake Chemical Equipment MFG.
11.6
E
95.5
11/30 Signifiant; Japan Growth Capital Investment Corporation; Seraphim Space Investment Trust; DNCA
Invest Beyond Global Leaders; Energy & Environment Investment; AXA Life Insurance Company;
Innovation Engine; Ops Inc. Solaris ESG Master Fund LP; Chiba Dojo K.K.; Prelude Structured
Alternatives Master Fund; Yamauchi-No.10 Family Office; Y's Investment
9.7
F
133.7
6/30 SK Japan Investment; Musashi Paint Holdings Co.

C

36.8

C

28.2

12/3 SB Investment Advisers (UK) Limited; KREAM Corporation; Altos Ventures; SoftBank Ventures Asia;
JAFCO Group Co., Ltd.; BP1 LLP; COLOPL NEXT; THE GUILD Co., Ltd.
12/10 Bain Capital Private Equity; Pavilion Capital; Incubate Fund.; Doll Capital Management; Nissay Capital

8.1

E

92.2

7/9

8.0

C

48.0

9/3

Multi-QR payment gateway "StarPay"
7.9
Crypto currency exchange “bitbank”
7.5
Drug discovery in neurological and
6.8
psychiatric diseases
14 Bitkey
Digital key platform for ID linkage,
6.7
authentication and processing
15 HIKKY
Planning, production, and operation related 6.5
to the metaverse
16 atama plus
Developing educational services using AI 6.2
17 ORIZURU
Development project for regenerative
6.2
THERAPEUTICS medicine products derived from iPS cells

E
C
A

36.2
35.3
10.9

E

69.6

A

64.4

B
A

52.2
10.5

18 ATONARP

Digital molecular profiling

5.9

D

24.9

19 iSpace

Lunar robotic exploration

5.6

C

75.6

10/22 Incubate Fund; Innovation Engine; SBI Investment; HiJoJo Partners Co., Ltd.; Aizawa Investments;
Aizawa Asset Management; AXIOM ASIA PRIVATE CAPITAL; Airbus ventures

20 CBcloud

Crowdsourced delivery services

5.0

C

28.0

12/8 SBI Investment

8 Linc'well
9 STORES

10 CADDi

Platform for small merchants setting up
online store, POS cash register, cashless
payment, reservation system, and store
applications
Procurement platform for manufacturers

11 Netstars
12 bitbank
13 Aculys(C) JIC. All Rights Reserved.

Globis Capital Partners Co., Ltd.; World Innovation Lab; Doll Capital Management; Global Brain Co., Ltd.;DST Global; Arena Holdings Management; Minerva Growth Partners; Tybourne Capital Management;
JAFCO Group Co., Ltd.; SBI Investment Co., Ltd.
3/31 Susquehanna International Group; Kohlberg Kravis Roberts; Lunn Partners Group
9/30 MIXI
10/29 SB Investment Advisers (UK) Limited; Catalys Pacific; HBM Healthcare Investments; Global Founders
Capital; Sumitomo Mitsui Trust Investment Co., Ltd.; ANRI
11/30 Sankei Building Co., Ltd.; Daikin Industries, Ltd.; Nippon Steel Kowa Real Estate; Tokyo Tatemono;
Sparks Group; Prime Life Technologies; Panasonic Holdings; SHIFT Co., Ltd.
10/29 NTT Docomo
12/24 Doll Capital Management; JAFCO Group Co., Ltd.; Pavilion Capital; T. Rowe Price Japan Co., Ltd.
9/30 Kyoto University Innovation Capital; Takeda Pharmaceutical; SMBC Venture Capital; Mitsubishi UFJ
Bank; Medipal Holdings; Sumitomo Mitsui Finance & Lease; Sumitomo Mitsui Trust Bank; Japan Venture
Capital10/29 Banner Industries; Furukawa Electric; JP Investment; Boscolo Intervest; ATIK CO.; Celesta Capital

12

Contents
1

2

Start-up

1.1

Japan | Deal Activity

6

1.2

Japan | Exit

14

1.3

US | Deal Activity

18

1.4

US | Valuation

23

1.5

US | Exit

27

Venture Capital

2.1

Japan | Fundraising

29

2.2

US | Fundraising

32

2.3

US | Dry Powder

35(C) JIC. All Rights Reserved.

13

Exit｜Overview• IPO counts slightly decline compared to last year’s record, whereas M&A activities kept thesame momentum with last year’s record.
Start-up IPOs counts1

Start-up M&A deals counts

No. of companies

No. of deals

70

186

169

58

60
50

200

66

47

50
46

150

43

166
146

147

133

40
100

+8%

-23%

30
20

50
26

10

77

20

0

83

0
2017

2018

2019
Annual

2020

2021

2022

1st half of the year2

2023

2017

2018

2019
Annual2020

2021

2022 2023H1

1st half of the year2

Note 1) Only count IPOs filing in Japan market.
Note 2) Compared with data collected same period last year.
Source: INITIAL(as of July 2023)(C) JIC. All Rights Reserved.

14

Exit｜Major SU IPOs
• The following table listed up all major startup IPOs in 2023H1, ranked by IPO date.
IPO Info.
Date Company Name Business Description
6/30

Kuradashi

•

6/28

•

6/27

Noile-Immune
Biotech
CUORiPS

6/22

Aidemy•6/14

Globee

•

6/13

ABEJA

•

4/26

Ridge-i•

4/12

ispace•3/29

AnyMind Group •3/28

Monstarlab

•

3/28

Arent

•

3/27

Cover

•

•

“Kuradashi”, a shopping site that aims to reducefood loss.
Development of novel cancer immunotherapies
mainly using CAR T cells.
Development and commercialization of iPS cellderived cardiomyocyte sheets
AI/DX-related product and solution services forcorporate clients and individual customers.
Develop AI adopted English learning App andplatform.
“ABEJA Platform”, an AI platform that support DX
execution
Consulting and development of AI/deep learningtechnology, AI analysis solutions using satellite
data
Lunar robotic exploration

One-stop platform to support production, EC
construction, marketing& logistics for enterprises,
publishers, creators, etc.
Digital consulting business and product business(RPA tools, order systems for stores, etc.)
Digital consulting and system development for
construction companies.
VTuber production and live streaming service

Last Primary RoundChange(B)(A)÷(B)-1(A)
IPO Current Market Cap Date/ Series2 Valuation
price Price (¥Bn)1
(¥Bn)
(%)
520 4492022/6/28
A
6.7
3.8
▲43%
18.7

2022/8/31

D 34.2▲45%

1,560 1,921

11.8

2021/3/26

B 5.6

110%

1,050 2,2748.82021/11/29 A 5.7

54%1,150 2,002

9.6

2018/8/31

1619%

1,550 4,995

39.5

2018/11/30 C 24.5

61%

1,750 2,084

7.2

2020/12/25 B 8.4

▲14%

254

1,516

84.0

2021/10/22 C 75.6

11%1,000 1,18967.8

2022/7/15

22%

720

10.7

2022/12/30 F 31.2

▲66%

1,440 6,230

36.0

2021/10/29 A 11.2

221%

750

127.8

2020/4/30

4255%

740

472

330

2,143

- 0.6

- 55.6B 2.9

Note 1) The current stock price (closing price on August 22, 2023) multiplied by the number of issued shares before IPO.
Note 2) By INITIAL Definition
Source: JPX, EDINET, INITIAL, Company disclosures(C) JIC. All Rights Reserved.

15

Exit｜Major SU M&A deals• The following table listed up all major startup M&A deals in 2023H1, ranked by transaction date.

Date

Company Name Found
Date

Business Description

7/31

LAMILA

2019/5/27 •6/30

Stadium

6/28

BUSiCONET

2012/8/30 ••2020/2/14 •

4/28

VES

2003/7/1

4/5

Shuuumatu
2016/9/12 •WORKER
Dr.KENKO KEIEI 2019/2/22 •

4/3
4/1

•

•

2012/4/2

3/31

Realive
Corporation
Kanmu

2/24

Pacific Porter

2013/12/3 •1/31

OriCiro2018/12/3 •1/16

Brainsellers.com 2000/1/26 •2011/1/14 •Acquisition Info.
(A)
Deal Acquirer
Value1(¥Bn)
0.5
J-Stream Inc.

A platform that helps corporate to convert
manuals and knowledge into videos
Sales support and BPO
2.7
Web services and system development
Business consulting and digital marketing 1.7
support
Providing software testing (third party
1.9
verification) service
Agent service that matches companies with 1.2
part-time job hunter.
Medical and mental care service for
0.5
corporate employees
Provide consulting services and support on 0.9
new graduate recruitment
Prepaid card service "bundle card"
14.3
Web reservation management system forbeauty salon
Products using cell-free technologies forlarge DNA assembly and amplification
Development and sales of software
package product

2.9

Change(A)÷(B)-1(%)
96%

EXAWIZARDS 2022/5/13 C 68

▲60%

VECTOR INC. -- --Orchestra HD

-

- -

-

Crowd Works

2023/4/5

C 19

▲41%

- -

-

- -

-

Project
Company
Boutiques, Inc -Mitsubishi UFJ 2020/7/31 C 107
Bank
2022/3/25 A 16
CYND

11.12 Moderna
0.8

Last Primary Round(B)
Date/ Series Valuation(¥Bn)
2021/9/17 - 3

2022/5/20 C 38

Tecnos Japan -

- -

33%
83%
196%
-

Note 1) Include INITIAL estimates
Note 2) calculated at the currency rate of 129.47 yen/dollar.
Source: INITIAL (as of July 14th 2023), EDINET, Nikkei(C) JIC. All Rights Reserved.

16

Contents
1

2

Start-up

1.1

Japan | Deal Activity

6

1.2

Japan | Exit

14

1.3

US | Deal Activity

18

1.4

US | Valuation

23

1.5

US | Exit

27

Venture Capital

2.1

Japan | Fundraising

29

2.2

US | Fundraising

32

2.3

US | Dry Powder

35(C) JIC. All Rights Reserved.

17

US Deal Activity｜Overview• VC deal value plummets dramatically after peaking in 2021Q4, and gradually falling to pre-covid
level around $40Bn.

Deal Counts(‘000)

Deal Value by stage ($B)
160

5.5

5.0

140

4.5
120

4.0
97
87
84
82
79

100
80

3.5

3.0

77

2.5

60
40

25
21
27
21
23
23
23
12
21
21
21
20
19 17 19
20 11 12 13 15 17

35
30 32

49
38 39 48 47
41 38
35 37

47

41

46
40

2.0
1.5

1.0
0.5

0

0.0
2013

2014

2015

2016

Deal Counts

2017
Seed/Angel

2018

2019
Early

Late

2020

2021

2022

2023

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

18

US Deal Activity｜NTI• In the bull market of 2021, Non-traditional investors (NTIs: cross-over fund, hedge fund, PE, etc.)
actively participated in venture capital market. However, NTI started to flee out since 2022 whenthe market turns down.

VC deal activity with NTI participation

Deal activity by NTI investor type

Quarterly Deal Value($Bn)

Deals with NTI participation as share of all US VC deal value(%)

Deal Counts(‘000)

100

2.0
Deal Counts

70

Deal Value

CVC
60

80
1.5

50
60
1.0
40
0.5

20

0

0.0
2015

16

17

18

19

20

21

22

23

40

PE Investor

30

Asset Manager

20

Others10

Government/SWF

02013 14 15 16 17 18 19 20 21 22 2023
Q2

Note: As of 6/30/2023
Source: Pitchbook(C) JIC. All Rights Reserved.

19

US Deal Activity｜Mega Deals• First half of 2023 witnessed multiple mega deals in Generative AI sector, such as OpenAI,
Inflection AI.
2023H1 Top 20 Deals by size ($Mn)
OpenAI
Stripe1
Inflection AI
Generate CapitalSpaceX
Zwift
Xpansiv
Curie.Bio
LessenRippling
Anthropic
CoreWeave
ElevateBio
Netskope
Nexamp
Monogram Health
PacketFabricElectric Hydrogen
Adept AI
Amplify

10,000
6,870
1,300
881
750
620
525
520
500
500
450
421
401
401
400
375
373
356
350
350

AI Related

Others

Note 1) The funds raised will be used to provide liquidity to current and former employees and address employee withholding tax obligations related to equity awards.
Stripe does not need this capital to run its business.
Source: Pitchbook, Stripe website(C) JIC. All Rights Reserved.

20

US Deal Activity｜Sectors• Deal Activities slowed down across all sectors• Software sector as the only exception, which was mostly driven by the recent generative AI
boom.
Quarterly US VC deal value ($Bn) by sector
35
30
25

32
30

+51%
21

19

20
17

15
10

13

11
99

8

77
55

5

7
5 55

9

87

7
3332

7
334

5
2 222222

332

121 122211 121

0Software Commercial Pharma ConsumerHC
HC devices
IT
products & & biotech goods & services & & supplies hardware
services
services
systems
2022 Q1

2022 Q2

2022 Q3

2022 Q4

Energy2023 Q1

000

11211

324

0

2

Media Transportation Other

2023 Q2

Note: As of 6/30/2023
Source: Pitchbook(C) JIC. All Rights Reserved.

21

Contents
1

2

Start-up

1.1

Japan | Deal Activity

6

1.2

Japan | Exit

14

1.3

US | Deal Activity

18

1.4

US | Valuation

23

1.5

US | Exit

27

Venture Capital

2.1

Japan | Fundraising

29

2.2

US | Fundraising

32

2.3

US | Dry Powder

35(C) JIC. All Rights Reserved.

22

US Valuation｜Overview• Valuation adjustment materialized in both late and early stages, while venture growth stage was
hit most.

Valuation Changes: Venture Growth Stage

Valuation Changes: Other stages

Pre-money Valuation・Median($Mn)

Pre-money Valuation・Median($Mn)

400

80
-12%

300

60
-62%

200

40
-20%

100

0
2013 14

20

15

16

17

18

19

20

21

Venture Growth0
22 20232013 14 15 16 17
H1
Late
Early
Angel
Seed

18

19

20

21

22 2023
H1

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

23

US Valuation｜Unicorn Down Round• Some top unicorns’ valuation shrank by down rounds and/or internal valuation cut.
• Generative AI developer “Open AI” broke into the ranking for the first time.

Valuation rank as of July 2023 ($Bn) Financing or Down Rounds
SpaceX

127
137

95

Stripe50• (2023) Raised $750Mn at a $137Bn valuation

Business Description• Manufactures andlaunches spacecraft.

• (2022) Cut its internal valuation to $63 billion.
• Online Payment Service• (2023) Valued at $50B by $6.5B raise(down round)

Epic
Games

32
32

• No events during the period.

• Game & 3D engine
development

Databricks

38
31• (2022) Databricks trimmed its internal share priceto $31Bn• Data Analytics Platform
for AI & machine learning

Fanatics

27
31• (2022) Raised $700Mn at a $31Bn valuation• An online retailer oflicensed sports goods• (2023) Raised $10Bn from Microsoft• Develop Generative AI• No events during the period• Digital Bank• (2022) Instacart cut its valuation 4 times to $10Bn• Food delivery service

OpenAI1

4
29

Chime

25
25

Instacart

39
10

Post-Val as of Sept 2022

Pre-Val as of July 2023

Amount Raised

Note 1) The $4Bn valuation is estimated at a secondary transaction conducted in Jan 2023
Source: Pitchbook, CB Insights, PwC Top 100 Unicorn Report, Forbes, TechCrunch, The Information, CNBC(C) JIC. All Rights Reserved.

24

US Valuation｜VC Secondaries• As the valuation collapse of private market continued to materialize, the pricing of secondary(LPportfolio/fund stake and start-up shares) significantly discounted (as of NAV).
• However, this might be just the discount that routinely applied by investors, considering aforeseeably shrinking NAV in 2023.
Fund Stake Secondaries

Start-up Shares Secondaries

VC LP portfolio pricing (% of NAV)(% of post-valuation of last primary round)

88

90
83

85
80

78

20

83

•

0
77

-20

75

75

•

-40
68

70

-60

65
2016 2017 2018 2019 2020 2021 2022

-80
2022

VC LP Portfolio Secondaries Deal Value3($Bn)

Indication of Interest of selling shareson Forge Market (No. of unique Issuer)

15

2023

•

250
12

200

10

150
4

5

Deal Examples in 2023

30

StepStone GroupStepStone Group manages one of theworld's largest dedicated VC secondary
funds.
StepStone Group is seeing stakes in VC
funds trade at discounts closer to 40-60%
below net asset value.
ーBusiness Insider

Tiger Global
Tiger Global conducted a strip sale insecondary market with a package of
portfolio assets.
ーPitchbook News

100
50
0

2021

2022

2023H1

2022

23

Note 1) based on Jefferies report
Note 2) based on Forge Market (one of the major secondary transaction platforms) report
Note 3) JIC estimation based on Jefferies report
Source: Jefferies, Forge Market, Pitchbook, Business Insider(C) JIC. All Rights Reserved.

25

Contents
1

2

Start-up

1.1

Japan | Deal Activity

6

1.2

Japan | Exit

14

1.3

US | Deal Activity

18

1.4

US | Valuation

23

1.5

US | Exit

27

Venture Capital

2.1

Japan | Fundraising

29

2.2

US | Fundraising

32

2.3

US | Dry Powder

35(C) JIC. All Rights Reserved.

26

US Exit｜Overview• Exit still muted for both IPO and M&A.
• However, the latest IPO or IPO plans might reignite IPO market

IPO Activity by quarter

Latest IPO and IPO plans

M&A Activity by quarter

Deal Value ($B)••

Deal Value ($B)

250
200

•
•

150
100
•
•

50

A casual Mediterranean restaurant chain
Its shares opened on the New York Stock
Exchange at nearly double its IPO price.

50

40
Vietnam EV Start-up
Share price skyrocketed 270% on the firstday of trade, propelling VinFast’s market cap 30
above $85 billion, more than Volkswagen orFord.
20
ARM planned to IPO in September
Targeting at a valuation of between $60
billion and $70 billion, which could be thebiggest IPO deal this year.

0

10
0

15 16 17 18 19 20 21 22 23
Public Listing

15 16 17 18 19 20 21 22 23•

Grocery delivery unicorn Instacart said it
plans to go public on the Nasdaq in
September

Acquisition

BuyoutSource: Pitchbook, Press Research(C) JIC. All Rights Reserved.

27

Contents
1

2

Start-up

1.1

Japan | Deal Activity

6

1.2

Japan | Exit

14

1.3

US | Deal Activity

18

1.4

US | Valuation

23

1.5

US | Exit

27

Venture Capital

2.1

Japan | Fundraising

29

2.2

US | Fundraising

32

2.3

US | Dry Powder

35(C) JIC. All Rights Reserved.

28

Fundraising｜Overview• 61 new funds launched and raised ¥217Bn in 2023H1, which outpaced last year’s fundraising
activities of the same period.
• The yearly capital raised is expected to increase in the second half of 2023 as the fundraising
activities continues.
VC Fundraising Activity1

Half on Half Comparison(¥Bn)

Counts

(¥Bn)

150

400

147

1,000
Fund count

127

800

106
93

350
120

718
91

90
72

73
61

51

200

222

183

60

718
525
262

321

589

591
30

397

272

61

70
60

300

250
200

38

Capital Raised

49

600

400

80
Fund Counts

Capital raised (¥Bn)

67

Counts

217
186

50
40

150

30

100

20

50

10

217

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
H1

0

0
0

0

2022 H1(as of July
2022)

2023 H1(as of July
2023)

Note 1) The figure above is presented on a fund vintage year basis and may be subject to upward revisions as past vintage funds close successive rounds moving
forward.
Source: INITIAL(as of July 2023）(C) JIC. All Rights Reserved.

29

Fundraising｜New Funds• No independent VCs were found in the 2023H1 top ten roster.
Top 10 Funds Launched in 2022

Top 10 Funds Launched in 2023H1★ VCs managed by independent managers that are not affiliated with any parent organization.

Fund Name(Manager)

Size1
(¥Bn）

Vintage
Date

Fund Name(Manager)

Size1
(¥Bn）

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)
Eight Roads Ventures Japan III, L.P.
(Eight Roads Ventures Japan)
Sony Innovation Fund 3 L.P.
(Sony Ventures Corporation)
EEI5 ★
(Energy & Environment Investment, Inc.)
UMI3★
(Universal Materials Incubator Co., Ltd.)DNX Partners Japan IV, LP★
(DNX Ventures)

200.0

2022/1272.7

2022/470.0

2022/737.5

2022/630.0

2022/128.0

2022/626.5

2022/221.8

2022/917.1

2022/916.0

2022/10

Mitsubishi UFJ Capital IX, L.P.
30.0
(Mitsubishi UFJ Capital Co., Ltd.)NTT Investment Partners Fund IV, L.P.
20.0
(NTT DOCOMO Ventures, Inc.)
Mitsubishi UFJ Life Science IV, L.P.
20.0
(Mitsubishi UFJ Capital Co., Ltd.)
Nissay Capital XIII
10.0
(NISSAY CAPITAL CO., LTD.)
MSIVC2023V
10.0(Mitsui Sumitomo Insurance Venture Capital)
NSCF I
10.0(Norinchukin Capital Co., Ltd)
7.2
DCI Venture Growth Investment L.P. II(Daiwa Corporate Investment)
7.0
Value Chain Innovation Fund(Spiral Innovation Partners)
6.0
Yokohama Next Fund
(Yokohama Capital)
5.0
NX Global Innovation Fund
(SBI Investment Co., Ltd.)

VintageDate2023/42023/42023/42023/12023/62023/52023/12023/62023/32023/1

Source: INITIAL (as of August 16th 2023)(C) JIC. All Rights Reserved.

30

Contents
1

2

Start-up

1.1

Japan | Deal Activity

6

1.2

Japan | Exit

14

1.3

US | Deal Activity

18

1.4

US | Valuation

23

1.5

US | Exit

27

Venture Capital

2.1

Japan | Fundraising

29

2.2

US | Fundraising

32

2.3

US | Dry Powder

35(C) JIC. All Rights Reserved.

31

US Fundraising｜Overview• Fundraising stalled, and LP preferred to concentrate commitments on VC funds with provenperformance other than emerging managers.

Fundraising by emerging1 & experienced firms

VC fundraising activity by vintage year
Capital Raised($B)

Fund Counts

300

1,600

1,443

1,400

250

1,095
200

913

100

1,000

784 772

150
497

584

800

644 660

233

343

50

160 167
72 71 91

1,200

600
400

200
43 51 46
33
22 37
0
0
2013 14 15 16 17 18 19 20 21 22 2023
Q2

45%
28%
2013 14

36% 38%

15

16

48%
34%

17

18

43%

19

34% 35%20

21

Fund countEmerging Firm capital raised ($B)

Capital raised ($B)

Experienced Firm capital raised ($B)

23% 19%22 2023
Q2

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

32

US Fundraising｜ Major New Funds• Most funds closed in 2023 H1 were the early stage focused funds, which signaled the weak
investment interests in later stage amid market downturn.
Fund1

Size2($Mn) Strategy

Geo Focus

1

GC Venture XI

4,600

GeneralNorth America ー

2

Lux Ventures VIII

1,150

Early Stage United Stages• Artificial Intelligence, HealthTech,
Manufacturing, Robotics

3

8VC Fund V

880

Early Stage United Stages• Information Technology

4

Canaan XIII

850

Early Stage North America • Artificial Intelligence, Autonomous Vehicle, Ecommerce, FinTech, Machine Learning,
Robotics, Smart Supply Chain

5

Felicis Ventures IX

825

Early Stage North America ー

6Eclipse Ventures Fund V

720

General7

Nexus Ventures VII

700

Early Stage United Stages

8

QED Fund VIII

650

Early Stage North America • FinTech

98VC Fund IV

640

Early Stage North America • Information Technology, Health Care10

SR One Capital Fund II

600

Early Stage United Stages

United Stages

Investment Themes• Manufacturing, Smart Supply Chain• Artificial Intelligence, E-commerce, FinTech,Saas• Life Science

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

33

Contents
1

2

Start-up

1.1

Japan | Deal Activity

6

1.2

Japan | Exit

14

1.3

US | Deal Activity

18

1.4

US | Valuation

23

1.5

US | Exit

27

Venture Capital

2.1

Japan | Fundraising

29

2.2

US | Fundraising

32

2.3

US | Dry Powder

35(C) JIC. All Rights Reserved.

34

Dry Powder｜Overview• Dry powder reached record high level due to the deteriorated dealmaking environment.
• Accordingly, GPs show less appetite for commitments while LPs reduce the new commitment
due to the slower distributions from existing fund portfolio.
• Some GPs to cut the size of the funds that had already been raised or to lower the fundraisingtargets for new funds, based on the market reality that too much dry power for too few promising
investment opportunities.
Dry Powder Volume・Yearly

Major VC company responses to dry powder

North America VC Asset under Management 2($Bn)
1,100
1,000
900

Dry Powder($Bn)
Unrealized Value($Bn)$270Bn

800
700
600
500
400

300
200
100
0
06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22

Note 1) as of December 31st 2022
Source: Preqin, The Information, Financial Times, Press Research(C) JIC. All Rights Reserved.

Insight Partners• Insight Partners has just under $10bn of “dry powder” but they
still chosen to slow the pace of dealmaking because– “not seeing a volume of companies that excited about”– “Still seeking the bottom of the valuation”• Slashed the $20bn target for its latest fund to $15Bn as ancounteract to the depressed dealmaking environment
ー Financial Times
Tiger Global Management• Reducing the target size for its latest venture fund to $5 billion,
down from an expected size of $12.7Bn
ー The Wall Street Journal
Founders Fund• Cut the size of its $1.9Bn VC fund raised a year ago by half.
• The reductions can appease VC funds’ limited partners upset
about paying management fees on cash that’s not immediately
slated for investment.
ー The Information
Sequoia Capital• Cut the size of its cryptocurrency fund to $200Mn from $585Mn
and shift the strategy from late to early stage.
• Slashed the size of ecosystem fund to $450Mn from $900Mn.
• Lowered the amount of committed capital required from LPs.
ー The Wall Street Journal
35