Funds raises ¥300M in venture debt from Fivot's Flex Capital
What's the deal? Japanese fintech FivotDealroom has a profile for this one. Try Dealroom → has extended ¥300 million (roughly $1.9 million) in debt financing to Funds, operator of the direct-finance platform of the same name. The deal ran through Fivot's startup-focused lending arm, Flex CapitalDealroom has a profile for this one. Try Dealroom →.
What does Funds do? Founded in 2016, Funds connects individual investors with companies seeking capital, letting people invest from as little as ¥1. It has assembled more than 600 funds worth over ¥140 billion cumulatively.
Why now? Funds has been expanding across both business lines and geographies, including venture-debt support through subsidiary Funds StartupsDealroom has a profile for this one. Try Dealroom → and the acquisition of Taiwan's AMFCDealroom has a profile for this one. Try Dealroom →. Fivot said it based the financing on Funds' track record and operational structure.
What's the endgame? Fivot, founded in 2019, is building toward becoming a challenger bank. Its ecosystem pairs cashless app IDAREDealroom has a profile for this one. Try Dealroom → with Flex Capital, which offers non-dilutive venture debt, revenue-based financing, and invoice services.
Flex Capital reports cumulative lending of more than ¥18 billion across over 500 companies, with a default rate of about 0.3% as of the end of July 2026.
What they're saying: "Flexible and fast financing methods like those Flex Capital provides are indispensable for companies to grow without losing momentum," said Funds chief executive officer Yuichiro Fujita (translated from Japanese).
Fivot chief executive officer Shogo Abe pointed to shared goals, calling Funds "a pioneer in Japan's so-called social lending industry" that has "steadily built up a track record."
The signal: The financing reflects growing demand in Japan for debt-based capital that lets startups scale without diluting equity. Both firms frame the deal as part of widening the country's financing options — adding depth and alternatives to a market long dominated by traditional funding.
Image credit: Generated with Gemini
