SDF Capital deploys from $126M second fund, backing six Japanese startups
What's the deal? SDF CapitalDealroom has a profile for this one. Try Dealroom → has issued loans to six startups — AirXDealroom has a profile for this one. Try Dealroom →, SANU, Smooth, HAKKI GROUP, bellFace, and RevComm — from its Startup Debt Fund No.2, a ¥20 billion ($126 million) vehicle targeting Japanese mid-to-late-stage companies. The package mixes new borrowers with repeat financing for SANU and RevComm, both backed since the firm's first fund. SDF did not disclose loan amounts or terms.
Why now? The second fund launched in April with a roughly ¥5 billion first close and a target of up to ¥20 billion, making these loans an early deployment signal. SDF says it has made about 40 investments and loans totaling ¥9.3 billion since its first fund opened in 2022.
What's the endgame? SDF, which calls itself Japan's first independent debt fund dedicated to startups, structures financing around each company's business and funding needs; some deals involved co-investment with its limited partners. The borrowers span sectors, including next-generation air mobility firm AirX, whose field the government is pushing toward real-world adoption.
What the firm says: "It is becoming increasingly important for companies to be able to choose funding methods suited to their own business and growth strategy," co-founder and chief executive officer Takumi Fukuda said (translated from Japanese), citing changing listing-maintenance rules on the Tokyo Stock Exchange Growth Market.
The signal: SDF's move lands amid a broader expansion of Japanese venture debt. AozoraDealroom has a profile for this one. Try Dealroom → set up a ¥15 billion fund in August, while a separate fund led by Funds StartupsDealroom has a profile for this one. Try Dealroom → and anchored by MUFGDealroom has a profile for this one. Try Dealroom → targets ¥10 billion, including support for deep-tech firms. The trend points to dedicated debt funds taking a larger role as startups seek alternatives to equity dilution.
Read more: prtimes.jp
Image credit: Generated with Gemini
