Kepple, an Tokyo-based investor service backed by Nikkei, has launched a fund investing in late-stage startups. This marks the company's second fund, with total assets under management expected to reach ¥15 billion. The aim is to support startups nearing IPO, and facilitate large-scale listings.

The newly established fund will support late-stage companies by utilizing “secondary transactions,” where shares of portfolio companies are traded between funds.

VC funds in Japan typically have a 10-year IPO-based investment model, recovering capital by selling shares of portfolio companies through IPOs. While numerous VC funds launched in Japan in the mid-2010s, many are now approaching the end of their investment periods, making capital recovery a pressing issue, and the push to IPO as quickly as possible is a recognized issue in Japanese investment circles.

Particularly for late-stage and deep tech companies, IPOs often take considerable time. This left shares in startups invested in a decade ago with few exit options. Kepple acquires these shares from funds, enabling late-stage companies to avoid rushing toward an IPO.