In recent years in Japan, there have been a number of cases where start-ups have not been supported by patient shareholders who properly ascribe value to those businesses which, despite near-term operating losses, are aggressively investing for future growth with upfront investments. As a result, in many of these cases post-IPO, this has resulted in volatile and stagnant share prices, thereby limiting these companies’ ability to strategically invest for further growth. Furthermore, the number of late stage*institutional investors who can provide patient capital at scale are still very limited, which forces a number of start-ups to go public on the retail-heavy TSE Mothers market before they achieve sustainable profits.
*Late stage refers to a state in which the business model has been established with robust and proven unit economics with a structurally profitable financial model.
Minerva Growth Partners (hereinafter referred to as “MGP”) provides start-ups with the option to raise sizable capital not only through IPOs, but also through private capital raising which allows them to aggressively invest capital and management resources for the strategic growth of their businesses. By doing so, we believe that Japanese start-ups will continue to invest boldly based on a long-term strategic vision, rather than simply focusing on short-term profits and losses, and that this will create greater competitiveness and vitality across these industries in Japan. By providing growth capital backed mainly by our local and global institutional investors, MGP will support the creation of the next generation category leaders from Japan whom we believe may ultimately compete globally.