Joel Fukuzawa’s Post

In China's bull market where liquidity and exits were easy, liquidation preference, redemption, and drag-along clauses etc weren't taken seriously. With the drying up of the IPO markets, many PE/VC funds are invoking clauses that force portfolio companies to buy them out at a pre-arranged yield. This is putting enormous pressure on them. Also, as the investors themselves are increasingly facing financial trouble --and quite many are affiliated with state companies or funds -- they are not willing or allowed to just write off their investments or take a haircut as western PR/VCs more often do. Adding to the pain, bankruptcy process in China could be unavailable or unpredictable, and investors have extra tools to squeeze the founders, such as adding them to the governmen’s “low-on-credit” list (失信人名单) which bars them from buying flight or train tickets, all of which require the state monitored ID. Many of the shortcomings of an immature and arbitrary system are getting exposed in a down market. The optimistic sentiment of entrepreneurs, already down, might get nipped like a candle.

New Post: Japan’s Nikkei soars over 3% to clock best week in 4 years amid a broad rally in Asia markets - https://lnkd.in/g59BU5NZ - Traders in Asia digested non-oil exports data from Singapore, which massively beat Reuters' poll expectations - #news #business #world -------------------------------------------------- #MagicTheGathering #macos #mac #tradingcardgame - SellingIt(.)org ---> https://sellingit.org

“Value-add” is often used as a selling point by Asian fund managers, but how many are actually equipped to deliver it? It’s a question that has become more pertinent as they grapple with inflationary fuel and labour pressures, volatile emerging market currencies, and an overall slower growth environment. More in my latest piece for DealStreetAsia below:

Kerrine Koh, CFA, CAIA of Hamilton Lane spoke to DealStreetAsia's Kavitha N. on how evergreen structures can boost the private markets in Asia and the resilience of the region to geopolitical risks. “Even a small allocation from wealth investors can substantially boost capital flow into private markets. Yet, these investors have primarily directed their capital toward global funds due to a lack of vehicles tailored for Asia,” said Koh.

Have you seen any recent small-cap bank bankruptcies in Japan? Answer is No Why :oftentimes due to a general unwillingness to take high risks but they supposed to do it for society. According to my recent experience. Even when negotiating with small private banks, approval often involves third parties that are semi-governmental. (Process is bit away from capitalism ) These entities tend to invest in assets and businesses with proven stability rather than high-risk ventures. As a result, there is a lag in new innovations. #japan #japanstartup #innovation #wfo #entrepreneurship #kansai #Osaka

51,302 to 260... This is the incredible decline of new companies started in China. Does this mark the bottom or is the entrepreneurial spirit being taken away to other places? For stock markets, valuations don't really matter if values have changed. Moved from "prosperity" to "common prosperity". Moved from "growing economy" to "dual economy". Moved from "grow at all costs" to "quality growth". You get the picture. But things could finally be changing... while the recent NDRC announcement disappointed with no specific numbers, investors are watching what will be announced in the coming NPC (end Oct/early Nov). Something is definitely brewing and investors are eagerly waiting. #nowornever Stay nimble folks. Lesson from Japan of the past shows that strong and tradable rallies can exist even in a prolonged down cycle. Many foreign investors are still under-positioned in China. Check our latest views here: Link here: https://lnkd.in/gW3sv7zH Credit: Visual Capitalist

This week's 𝐖𝐞𝐞𝐤𝐥𝐲 𝐍𝐞𝐰𝐬 𝐅𝐫𝐨𝐦 𝐉𝐚𝐩𝐚𝐧 is brought to you by one of our principals, Jonathan Masayasu Hayashi. Bringing you the most insightful news of the week, here are the highlights: 𝐅𝐨𝐥𝐥𝐨𝐰 𝐮𝐬 𝐭𝐨 𝐤𝐞𝐞𝐩 𝐮𝐩𝐝𝐚𝐭𝐞𝐝 𝐞𝐯𝐞𝐫𝐲 𝐌𝐨𝐧𝐝𝐚𝐲! 1️⃣ 𝐎𝐧𝐞 𝐨𝐟 𝐭𝐡𝐞 𝐭𝐡𝐫𝐞𝐞 𝐥𝐚𝐫𝐠𝐞𝐬𝐭 𝐭𝐫𝐮𝐬𝐭 𝐛𝐚𝐧𝐤𝐬 sell trusts with VC funds as underlying assets to retail investors for the first time in Japan. Read more: https://lnkd.in/g-FWvDdp 2️⃣ 𝐉𝐚𝐩𝐚𝐧'𝐬 𝐥𝐚𝐫𝐠𝐞𝐬𝐭 𝐫𝐚𝐢𝐥𝐰𝐚𝐲 company launches Internet Banking service. Read more: https://lnkd.in/gRWyKHKX 3️⃣ Sumitomo Mitsui Banking Corporation – SMBC Group achieves JPY 1 trillion (USD 64B) net profit for the first time. Read more: https://lnkd.in/gd358VqV Read below for the extended version of these news. You can also click on the 𝐀𝐜𝐜𝐞𝐬𝐬𝐢𝐛𝐢𝐥𝐢𝐭𝐲 𝐌𝐨𝐝𝐞 (Desktop) for the article links. --- Have you subscribed to our newsletter yet? --> https://lnkd.in/gnQDubA7 #headlineasia #vc #venturecapital #saas #investing #invest #investmentopportunities #vcfunding #technologynews #tech #companies #japan #japanbusiness #japanese #startups #business cc : CHEN-HSI (Claire) LIAU, Brian Yen, Jennifer Lin, Tzu Ning ( Kate ) L., Isamu Nishijima, Shimakawa Toshiaki, Ian Su, Kohei Suzuki, Tatsuya Kawamura

I resonate with B. Paul Santos' insightful commentary on Singapore's position in the equity markets. He speaks with the authority and understanding necessary to align the SGX with the aspirations of the startup and VC ecosystem in Southeast Asia. TL;DR: Success begins with a shift in mindset before taking action. But here’s the next challenge: Who will step up to lead this mindset shift and commit to transforming IPO opportunities for startups, even if it means risking their career? Over the past 16 years, I’ve witnessed a few courageous individuals in Singapore drive change in the startup landscape. From pioneering the iconic Block 71 and the launch of JFDI, Singapore’s first accelerator, to initiatives like IPPL-led accelerators and government-backed programs like iJAM.Reload, TiS, and SGTech commercialization grants. Change was made by bold initiatives and courage of men who stepped in to transform the startup ecosystem to what it is today. The question now is who are the next people who will see through the new change. Whether we’ll see a new wave of innovation that propels Singapore into another golden era for startups—or risk being overtaken by a rising Bursa Malaysia as the preferred destination for IPOs. https://lnkd.in/erAiiWv2

🚀 Introducing Capital Bridge: Your Go-To Newsletter on Raising Capital and Doing Cross-Border Business 🌍 Founders, if you’re navigating fundraising or expansion, Capital Bridge by Velocity-VC brings you the insights you need on shifting global capital markets. In our latest issue, we cover: 📊 Key trends in global capital flows across the US, Europe, APAC, and emerging markets. 💡 How the Fed’s rate cuts are opening doors for startups seeking capital. 🌍 The comeback of emerging markets like India and Indonesia, and what this means for your company. Check out the article here: https://lnkd.in/d7__bvVz Whether you're scaling globally or seeking capital, Velocity VC can help you tap into new opportunities. 👀 Subscribe now for actionable insights and interviews with founders and investors shaping the future. #Startups #CapitalRaising #GlobalMarkets #EmergingMarkets #VelocityVC #Newsletter #Entrepreneurship

Volatile Chinese markets have unsurprisingly been a tough sell for private banks in 2024, but a Temasek-backed private markets manager has come up with an intriguing solution. SeaTown, founded in Singapore in 2009, sees the “China plus 1” strategy adopted by many companies to diversify their supply chains into ASEAN, as an important thematic investment opportunity for private wealth clients to consider. The move is part of a broader pivot by SeaTown, which is wholly owned by Temasek’s asset management subsidiary Seviora Holdings, towards raising funds from the private wealth and institutional investment channels. Previously, US$4 billion in AUM SeaTown had only invested funds on behalf of its Singapore state-owned parent. Featuring Chi Kit Chai at SeaTown Holdings International