UNITED, Inc.

Business Details

Engages in direct investment in domestic startups—mainly at the seed/early stage—and fund management. Revenue is primarily derived from proceeds from the sale of held securities (recorded as "other revenue"). From FY2027 (ending March 2027), the segment will be repositioned as a core business, with a policy of focusing on AI-related investments and "Zenshin Investment" (investment in startups addressing social issues). The company will also promote profit generation through diverse exit methods beyond IPOs.

Recent Overview

Volume of portfolio company share sales declined sharply year on year, resulting in a segment loss of ¥186 million

Full-year FY2026 (ending March 2026) revenue for the Investment Business was ¥400 million (down 92.0% year on year), and segment loss was ¥186 million (versus segment profit of ¥3,907 million in the prior year). The main cause was a significant year-on-year decline in the volume of portfolio company shares sold. On the other hand, the balance of operating investment securities expanded to ¥9,066 million (up ¥1,364 million from the prior year-end) due to new capital contributions and other factors. As a subsequent event, in April 2026 Fogg Inc. was deconsolidated and transitioned to an equity-method affiliate following a partial sale of shares and a third-party allotment of new shares.

Key Products

Growth Drivers

• Identification of promising investment targets through sourcing capability and investment judgment built up over years of investment track record
• Policy of focusing on AI-related investments and Zenshin Investment (investment in startups addressing social issues)
• Diversification of profit generation through a variety of exit methods (including M&A) beyond IPOs
• Continued expansion of agile new investments funded by proprietary capital (operating investment securities balance on an increasing trend)
• Value-up of portfolio companies through collaboration with the education business and staffing/matching business (digital talent matching)

Risks

• A revenue structure heavily dependent on the timing and volume of sales of held securities (a decline in sales volume causes a sharp drop in revenue)
• Risk of valuation losses on shares due to deteriorating business progress or fundraising difficulties at portfolio startups
• Risk of impairment recognition when the substantial value of unlisted shares with no market price falls 50% or more below acquisition cost (unlisted shares balance of ¥5,556 million)
• Impact of fluctuations in financial and capital markets (equity market conditions, foreign exchange) on the fair value measurement of operating investment securities
• Changes in the operating environment of portfolio companies due to deterioration in external conditions such as U.S. tariff policy and geopolitical risk