"IPO STORY" unravels the trajectory from the encounter between an entrepreneur and JAFCO to the listing. We will talk about the episodes and thoughts that can be told now that the entrepreneur has successfully grabbed the listing, and the outlook for the future. This time, we will deliver a dialogue between Mr. Akiyuki Minami, Chairman of coconala Inc., which was listed on Mothers in March 2021, and Yoshikazu Akagawa, the capitalist in charge of JAFCO.
【profile】
Akiyuki Minami, Chairman and CEO of coconala Inc.
Born in 1975. After graduating from Keio University, joined Sumitomo Bank (currently Sumitomo Mitsui Banking Corporation) and worked at branches and corporate research departments. In 2004, he changed his job to Advantage Partners, a private equity fund, and was involved in the overall management of multiple investment projects. Completed the Master of Business Administration (MBA) from Oxford University, UK in 2009. After returning to Japan, he launched and operated the NPO Blast Beat and the second NPO business card. Established the Company in January 2012 and assumed the post of Representative Director. Appointed Chairman of the Board in September 2020.
[What's coconala Inc.]
With the vision of "creating a world where each person lives their own story," we operate Japan's largest skill market, "coconala," where everyone's strengths such as knowledge, skills, and experience can be exhibited and purchased as a service. Since its founding, the number of listing services and transactions has continued to increase, including listings at the industry's professional level, creating a system that allows everyone to connect with society and play an active role at any time. Received funding from JAFCO in November 2015 and March 2017, and listed on Mothers on March 19, 2021.
From a fund that moves 50 billion yen to a business with a unit price of 500 yen
Minami Mr. Akagawa of JAFCO first visited us immediately after the company was established in January 2012. At that time, before the launch of "coconala", there was only information on the company profile Peraichi on the Web (laughs).
Akagawa I was interested in seeing the information about Peraichi and Mr. Minami's SNS. Although he is a super elite with banks, major corporate acquisition funds, Oxford MBA holders, etc., he also has different perspectives such as establishing an NPO. Minami-san is trying to do something.
Minami I met several individual investors, but Mr. Akakawa was the first VC. You were still in your mid-20s at the time, right?
Akagawa Yes. When I actually met Mr. Minami, I thought he was a very good person in terms of perspective, how to talk, and how to organize materials. That's why when I heard about the concept of "coconala," I asked, "Why this business?"
Minami I was told a lot on the internet (laughs). In my previous job 500 Even though I was moving 100 million yen, why is it unlikely to make a profit? 500 He said he would start a yen skill market. But life 100 Year era. 80 Considering that I will work until my age and the times will change, I cannot continue my life just by extending the past. I thought it would be better to think about things from a permanent interest rather than relying on past experiences.
Akagawa Mr. Minami's permanent interest is "coconala". Can you tell us how you decided to start a business?
Minami When I got a job, the bank went bankrupt and restructuring began, and the number of suicides surged from 10,000 to 30,000 a year. I joined a bank to change that situation with corporate support, and then changed jobs to a corporate acquisition fund. We have also launched two NPOs that support children's social education and individual independence. All I came to was "support for the acquisition of the power to live." After the Great East Japan Earthquake, the desire to be close to each individual's "living" became stronger. If everyone can live by making the most of their "specialties" and "likes", everyone will be happy. Such feelings are the basis of "coconala".
After years of struggling, the road to IPO opens
Akagawa JAFCO made an investment in 2015. Until then, you shared the status of your business every year, but how about looking back at that time?
Minami The amount of money for the "coconala" business was small even when it started, so it was very difficult to raise funds from 2013 to 2014. I was repeatedly refused by a number of investors and managed to get their consent at the very end.
Akagawa After the launch of "coconala", I saw a lot of similar competitors coming out and withdrawing, and I saw how they proceeded with the business without blurring, and I felt that "this will come someday". ..
Minami It's almost impossible for a startup to be the "first idea in the world" business. A huge number of people come up with ideas at the same time in light of changes in society and technology. The person who can see the essence most and act best will survive. The declining birthrate and aging population will be an unavoidable social issue in the future, but the biggest problem is that local governments will go bankrupt and will not be able to provide public services. If this happens, people will have no choice but to help each other and live. From the perspective of the sharing economy twenty one Japan will not be possible without creating a new infrastructure for the century.
From the beginning, "coconala" has been looking at these social issues and aiming to "support the acquisition of the power to live." I think we survived because we knew the essence.
Akagawa When did you start to feel the response of business expansion?
Minami Since the beginning of 2015. For the first time, the path of IPO came into view, as the numbers began to show that we had come to a steady pace. So, when I consulted with Mr. JAFCO, who had been watching us from the beginning, I tried to understand deeply whether I could ask for an interview with an actual user, and on the spot, the Investment Division manager at that time. I was surprised that Mr. Miyoshi (Director, Keisuke Miyoshi) was present. The decision was quick. It took about two weeks to make a decision, and three weeks later the contract was ready (laughs).
Akagawa Minami is a type of entrepreneur who clarifies his strategy. The strategy at the time of our founding has taken shape, and the total amount of distribution has gradually increased, so I remember telling him immediately, "Please let me invest." Since the unit price is low, it is also true that there were internal discussions such as "whether it will end with an NPO-like business" or "whether it will be possible to close a different market". But more than that, I had great trust and expectations for Mr. Minami. I think that the fact that I was from an investment fund and understood how to organize the information and materials required by VCs was also a point that accelerated decision-making.
Minami Financing from VC is not decided unless not only the top management but also the capitalist in charge has thoughts and intentions for the company. Ultimately, the passion of the person in charge is great to be able to persuade the company while no one can predict the future of the company. First of all, I was conscious of trusting Mr. Akakawa himself, and proactively presenting information that would be absolutely asked within the company to overwhelmingly enhance the impression of the company.
Taking the IPO of a Japanese venture one step further
Minami After seeing the road to IPO in 2015, we immediately started selecting securities companies and audit corporations. Since 2016, we have been developing a management system for audits. From 2017 to 2018, we focused on investor tours of listed stocks and prepared for a "good listing", that is, to get good investors. In today's world, it is important to get foreign investors to join us in order to achieve a "good listing". We have actively expanded our network with overseas, such as introducing Hong Kong investors to Mr. JAFCO, and have also visited London, Hong Kong, and Singapore for IR tours to build relationships on an annual basis.
Akagawa In 2016, you received a second round of financing consultation. I want you to make an additional investment to hit a TV commercial.
Minami I just procured it a year ago (laughs). At that time, it was an era when the composition that "the marketplace that gained recognition wins" was visible, and there were still few startups that hit commercials. It was time to set up a commercial, taking into account the trends of competition, so it was really helpful to be able to make a decision immediately. How did you persuade the company?
Akagawa I just told Mr. Minami's story, "Now is the timing of the game." Also, looking at the situation after the first investment, there was confidence that "people who can make good use of funds" and "people who can deposit important funds".
Minami The commercial was broadcast from July 2017, and we were able to raise awareness to the point where other companies could not catch up. Hitting a commercial that doesn't fit your height at that time is one of the "top 3 good decision-making" in your 9-year entrepreneurial life.
Akagawa Financing from Fidelity International (a global asset management company) in 2019 was also epoch-making.
Minami It is unusual in Japan to raise funds from overseas listed stock investors when they are unlisted. In fact, this was the first time Fidelity had invested in a Japanese unlisted company in a single round. Japanese startup IPO I am proud that I was able to take this one step further. At that time VC Shareholding ratio Five I was looking for a leading overseas investor who would continue to hold shares even after listing because it was relatively expensive. If you invest in such investors, you can accelerate the speed of listing at once, and new cm I had a plan, so I needed some money.
Akagawa It's been less than two years since then until the listing of Mothers in March 2021. What are your frank impressions of the successful listing?
Minami Although listing is just a passing point, there is a tremendous sense of accomplishment in completing a difficult project. I think "I have crossed the first barrier" and "I have finally set up on a stage where I can play a big game." We received compliments from investors around the world for this listing. This is also the case with Fidelity, which I mentioned earlier, because I was able to create many achievements that no one has ever done in Japan. For example, the ratio of overseas investors for sale is 50 There was an implicit rule to make it less than%, but after confirming that there was no legal problem, it was the first time for a non-global offering. 50 Exceeded%. The number of investor interviews 130 I went up to the company.
Our ancestors have continued to take on challenges in this way, and in the future there will surely be young entrepreneurs who will see the case of coconala and break new customs. I think it was an IPO that not only benefited the company but also had a social impact.
Toward a society where everyone can demonstrate their value and live happily
Akagawa Looking at Mr. Minami, I strongly feel that one of the competitiveness of entrepreneurs is the power of will. I have seen many times the team members, including Mr. Minami, turn over what seemed impossible and realize it like Othello. I try to make decisions as a VC as quickly as possible so as not to interfere with that will and speed.
Minami Jafco's strong network has always helped me. Not only investors but also TV stations and public relations areas have a wide face. I think that it is a rare existence that combines the knowledge unique to the largest VC with financial roots and the flexibility that seems to be independent. Also, JAFCO is the only major investor in coconala whose person in charge hasn't changed. Mr. Akakawa has known me since the company was founded, so I have a sense of trust. As for my question, what is the most enjoyable moment as a venture capitalist?
Akagawa That's when the investment destinations you believed in are growing. Startup investment is a world where you "go to create" rather than "find" the answer, so you can't do it without the will to support yourself. That is why I am deeply moved by the process by which the answers that I have made seriously take shape. Mr. Minami seems to be very suitable.
Minami Certainly, I'm a manager, but I also have an investor's perspective. I have no desire to "create my own company" or "become the top", and I have the image of being on a project called coconala. If the vision, mission, and value are the Constitution, I always objectively think about "how to improve the company" as if I were the Prime Minister.
Akagawa It was the same perspective in the decision-making from president to chairman.
Minami That's right. Suzuki (Ayumi Suzuki, President and CEO) has been involved in management for a long time, and the system has not changed significantly. The ideal for investors is for the founder to be involved in management for a long time. On the other hand, it is also the founder's duty to find a successor for the next generation. We cleared both of them and were able to explain them to investors properly before listing, so the current "two-person management system" is rather highly evaluated.
Akagawa How will your company evolve in the future as you enter the next stage?
Minami "coconala" has exceeded 2 million users. Even if we focus not only on the number but also on the individual users, there is a "feel" that the number of users who say "'coconala' has changed my life" is increasing. For example, a user who plays music has been able to make music his main business since he started "coconala". I was absent from work for a while because my child was born and the time was drastically reduced, but now I am devoting my comfortable time to work at "coconala". "Whenever I was worried about what to do in my life, I always had a coconala by my side," she said.
I mentioned earlier that we must create a new infrastructure for the 21st century, but I feel that we are finally at the starting line where we can do something about that issue.
Akagawa It seems that the unit price, which was often pointed out by investors when the company was founded, has been gradually raised and has continued to rise until now.
Minami The number of corporate projects is increasing, 100 There are also many projects in units of 10,000 yen. From the beginning, I explained that the unit price would go up, but no one believed that such a service was unprecedented (laughs). life 100 In the age of years, we must be able to eat on our own. It is important that you are financially self-supporting, or that you are able to do a job that at least fills your heart. Demonstrate your own value, get the right price, and get the feeling that you are functioning in the community. Our mission is to create a society where everyone can live while feeling such "human happiness."
