Japanese M&A marketplace banks $1.4m from SBI Investment-led round

Japan-based Bizit, which operates a global marketplace for middle-market companies, financial advisors, investment bankers, and private equity funds, has acquired 150 million yen (about US$1.4 million) in an investment round led by SBI AI & Blockchain Fund, operated by SBI Holdings subsidiary SBI Investment.

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Through its Bizit M&A platform, the company provides information on small and medium-sized deals gathered from users across 158 countries worldwide. It collects acquisition and investment needs from Japanese firms to connect them to M&A opportunities from sell-side users on its platform.

It plans to use the new capital to further develop its platform, improve user experience, invest in marketing for business expansion, and grow its team, according to a statement.

Bizit was spun out of Tokyo-based M&A advisory firm Tryfunds in response to the growing needs of Japanese companies for overseas expansion. It was intended to concentrate management resources, improve service quality, and accelerate business growth, the company said.

Bizit positioned itself as a faster and more cost-effective alternative to establishing a local subsidiary overseas and starting a business from scratch.

According to a 2017 and 2018 survey administered by the Japan External Trade Organization, roughly 60% of companies in the country seek cross-border business expansions. A recent report by financial markets data provider Refinitiv also found that Japanese M&A activities in 2018 amounted to US$358.2 billion, representing a 129% increase from the prior year.

Marcus Yeung, founder and CEO of tech-focused boutique investment bank SEAbridge Partners, also recently said that he expects a spike in M&A activity in Southeast Asia, as the earliest batch of tech startups in the region have ripened enough for investors to want to buy them.

“Every industry is being disrupted, meaning the incumbents are challenged by startups. In order to stay ahead of the curve, they need to invest actively and acquire companies to keep their competitive edge,” Yeung explains.

Launched in 2018, Bizit claims its platform is being used by over 5,000 companies, with more than 500 Japanese firms seeking outbound M&A deals.