FUNDINNO,INC.

Business Details

Builds a risk-money circulation cycle across three domains: the Primary domain (equity-based crowdfunding "FUNDINNO" and large-scale fundraising for qualified investors "FUNDINNO PLUS+"), the Growth domain (shareholder management SaaS "FUNDOOR" and recruitment support "FUNDINNO GROWTH"), and the Secondary domain (unlisted stock trading "FUNDINNO MARKET"). A single segment whose business purpose is to supply risk money to startups, resolve information asymmetry, and improve the liquidity of unlisted shares.

Recent Overview

Loss widened due to sluggish FUNDINNO PLUS+ handling volume; full write-off of deferred tax assets

In the interim period of FY2026 (ending October 2026) (November 2025 to April 2026), GMV remained at ¥41.4 million (41.4百万円), and compared to the same period of the prior year, operating revenue decreased 9.9% to ¥899 million, while the operating loss widened significantly to ¥354 million (from -¥96 million in the same period prior year). The main causes were sluggish acceptance fee revenue due to stalled handling volume at FUNDINNO PLUS+, along with increases in personnel expenses (up 21.5% year on year to ¥555 million) and transaction-related expenses (up 27.1% year on year to ¥214 million). Furthermore, following the downward revision of the full-year earnings forecast, the company fully wrote off ¥188 million in deferred tax assets, recording this as an income tax adjustment. As a result, the interim net loss expanded to ¥550 million. On the other hand, expansion of platform functions continued, including the start of handling startup investments by business corporations, the realization of secondary transactions, and an increase of 273 in the number of qualified investors (reaching 1,895 at period-end). The full-year earnings forecast has been revised to operating revenue of ¥1,800 million (down 28.0% year on year) and an operating loss of ¥799 million.

Key Products

Growth Drivers

• GMV expansion through FUNDINNO PLUS+: Large-scale fundraising support utilizing the qualified investor issue system (J-Ships) is the core revenue driver. Although it stalled in the current interim period, with a cumulative GMV base of ¥32.16 billion (321.6億円), recovery in the second half is key to achieving the full-year forecast
• Continued growth in the number of qualified investors: Reached 1,895 at the end of the current interim period (up 273 from the previous period-end). Building up FUNDINNO PLUS+ investment potential through conversion from retail investors, sales to wealthy individuals, partnership with partner companies, and development of corporate investors
• Diversification of sales channels: In addition to hiring investor sales personnel and developing partner companies, sales activities targeting business corporations have begun. Startup investment by corporate investors is starting to be realized
• Expansion of platform functions: Aims to develop new investor segments and improve liquidity in the secondary market through strengthened systems toward registration as a Type II Financial Instruments Business and an Investment Management Business
• Policy tailwinds: The government's "Five-Year Plan for Startup Development" targets ¥10 trillion in investment by 2027. A target has also been set for fundraising amounts via market intermediaries to reach ¥180 billion by fiscal 2027
• Tightening of listing maintenance criteria on the TSE Growth Market (from 2030 onward): The lengthening of the pre-listing preparation period is increasing the need for additional fundraising at the unlisted stage and for securing shareholder liquidity
• Deepening of digital marketing: Strengthening the digital marketing framework by replacing SFA/CRM systems and leveraging accumulated data, promoting full-fledged data utilization

Risks

• Risk of sluggish GMV growth: GMV in the current interim period remained at ¥4.14 billion, with FUNDINNO PLUS+ deal acquisition falling short of expectations. Achieving the full-year forecast requires a substantial recovery in the second half
• Risk of accelerating earnings deterioration: The full-year earnings forecast has already been revised downward to an operating loss of ¥799 million and a net loss of ¥990 million. The full write-off of deferred tax assets reflects a cautious view of future recoverability
• Quarterly GMV volatility risk: Because revenue depends on the timing of deal closings, quarterly earnings fluctuate significantly, making it difficult to forecast achievement of plans
• Risk of slowing qualified investor acquisition: FUNDINNO PLUS+ deal closings depend almost entirely on the investment potential of qualified investors; a slowdown in acquisition pace would constrain revenue growth
• Simultaneous cost increase and revenue decline: Personnel and transaction-related expenses are increasing while operating revenue is declining, making the outlook for profit and loss improvement unclear
• Risk of intensifying competition: The number of J-Ships handling association members is on an expanding trend, and differentiation from competitors, including major comprehensive securities firms, is a challenge
• Regulatory change risk: Changes in regulations such as the Financial Instruments and Exchange Act, equity-based crowdfunding regulations, and the qualified investor system could directly affect the business model
• Obligation to maintain the capital adequacy ratio: As a Type I Financial Instruments Business Operator, the company is legally obligated to maintain a capital adequacy ratio of 120% or higher. Capital management is required if losses continue to expand