The missing link in Japan’s startup ecosystem—late-stage growth capital—is getting a boost.
Tokyo-based Minerva Growth Partners has secured a first close of ¥7 billion ($44 million) for its second fund, with backing from the state-owned Japan Investment Corp (JIC). The firm is targeting a total corpus of ¥20 billion to back late-stage startups.
📉 THE MARKET GAP: Japan has historically suffered from a “hollow middle”—a lack of late-stage private capital that forces startups to go public too early, resulting in small-cap listings with limited liquidity.
- The Shift: The Tokyo Stock Exchange (TSE) is tightening listing criteria to discourage tiny IPOs.
- The Strategy: Minerva aims to provide the runway companies need to scale privately. Managing Partner Kensuke Murashima notes: “The number of companies not rushing to IPO and aiming to go public after growing further is increasing.”
👥 THE PEDIGREE: Minerva is led by veterans of the global and local financial scene:
- Kensuke Murashima: Former banker at Morgan Stanley.
- Kei Nagasawa: Former CFO of Mercari (one of Japan’s rare unicorns).
- Backing: Supported by Hong Kong’s Pleiad Investment Advisors.
🏆 TRACK RECORD: Their Fund I (¥19.2B, vintage 2020) has already seen exits, including payments company Infcurion, which successfully went public last October.
💡 ANALYST TAKEAWAY: This fund represents the maturation of the Tokyo venture scene. For years, “IPO” was the only exit strategy for Japanese founders. With funds like Minerva and backers like JIC stepping in, we are finally seeing the infrastructure build-out for a “stay private longer” approach, which is necessary to create true global competitors rather than just domestic micro-caps.
👇 Japan Investors: Will tighter TSE rules and more late-stage capital finally produce the next Sony or SoftBank?