Growth path diversity needed as startup ecosystem takes off
IPO not the only goal
The J-Startup program has so far selected a total of 139 companies to support. I now feel we need to diversify their growth paths, in addition to creating an environment conducive to their growth.
In Japan, the mainstream way of exiting investment is an initial public offering, but in the United States, nearly 9 out of 10 exits are through mergers and acquisitions.
We think startups should be able to take the strategy of raising large amounts of money before listing their shares, in addition to listing, so that they make their presence felt dynamically in the global market.
For this, we have high hopes for the role of larger businesses tying up with startups and the active role of corporate venture capital investment. The recently launched Open Innovation Promotion Tax System is aimed at promoting tie-ups between large companies and startups. We believe we can create a significant impact on society by combining technologies and business models of startups with the business resources of large companies and help them develop as bases of larger growth.