Mizuho Financial Group and Tokyo-based fintech startup UPSIDER announced the launch of their new ¥14.3 billion vanture debt fund. The fund will support the cash flow of emerging companies in their expansion phase using a proprietary credit model using artificial intelligence. It will provide loans averaging 4 billion yen per case, with a maximum of 10 billion yen.

Venture debt allows startups to raise funds without diluting equity, providing startups in the middle and later stages of development with flexible funding. In addition to Mizuho FG, Kyoto Capital Partners (affiliated with Kyoto Bank), Yamagata Ginko Bank, Nagoya Bank, Hiroshima Bank, and Fukuoka Bank have joined as limited partners. According to UPSIDER, the cumulative fund size of 24.3 billion yen is the largest in Japan for a venture debt fund established with contributions from multiple LPs.

According to data from the startup information site Speed, venture debt financing in Japan rose from 37.9 billion yen in 2019 to 231.8 billion yen in 2024.