As the saying goes, "a company is its people," and human resources is a critical aspect of scaling a business. For startups, in particular, the strategies for recruitment and organizational design, as well as the challenges faced, differ at each business phase. Many founders may find themselves struggling with the gap between their ideals and reality.

JAFCO has long provided "HR support" to address these challenges faced by startups.

In this article, Kazuki Tsuboi and Masakazu Yazaki from our HR Support team discuss the functions and stance of JAFCO's "HR support," offering a look at the "reality of portfolio support."

【Profiles】

Kazuki Tsuboi, Business Development Division, JAFCO Group Co., Ltd.
After gaining experience in business and organizational development at an organizational/HR consulting firm, an IT startup, and Digital Garage, Inc., Mr. Tsuboi practiced HR that contributes to business, with a focus on organizational and personnel development. He joined DeNA Co., Ltd. in 2018, where he served as an HRBP for the entertainment-focused game business and was highly active in external communications regarding HRBPs. He has given numerous lectures, including speaking at the HR Japan Summit for two consecutive years. He joined JAFCO in August 2022. As an HRBP, he is involved in talent acquisition and organizational development for portfolio companies, while also supporting the individual growth of entrepreneurs and executives as a CxO coach through executive coaching.

Masakazu Yazaki, Business Development Division, JAFCO Group Co., Ltd.
After graduating from university, Mr. Yazaki worked at a human resource development consulting firm, where he was in charge of consulting projects for SI/IT consulting firms. He later joined a foreign-affiliated IT company as an HR professional. Subsequently, at Akatsuki Inc. and KAKEHASHI Inc., he was responsible for everything from launching an engineering recruitment organization to serving as an HRBP, organizational development, HR system planning, and managing the entire HR organization. He has experience partnering with businesses and organizations as an in-house HR professional at various stages, from seed/early to middle/later, as well as at listed and global companies. He joined JAFCO in April 2025.

—First, could you give us an overview of the support provided by the HR support team?

Tsuboi: The content of our support varies depending on the stage of the portfolio company, but in HR support, we provide assistance for both people and the organization. Specifically, our support can be divided into three categories: "organizational design and talent acquisition" during the seed and early stages; "organizational and personnel development" during the middle and later stages; and "executive coaching," which we engage in at all stages.

The HR support team was established in 2018, starting initially with recruitment support. To date, we have provided recruitment support to over 80 portfolio companies, resulting in about 380 successful hires. We particularly focus on recruiting executive talent such as CxOs, and have placed over 100 CxO-level individuals. We also provide recruitment support centered on acquiring talent that can have a significant impact on corporate value, such as department heads and managers in administrative divisions.

—Could you tell us about the background behind JAFCO's HR support initiatives and its distinctive features?

Tsuboi: The HR support team was launched in response to challenges we identified within our marketing and sales support.

Even when we created initial sales opportunities, they often didn't lead to formal orders. As we analyzed the reasons, numerous issues related to people and the organization came to light. Startups tend to have a high degree of dependence on their founders for everything, despite having a lot to do. We thought that HR support could be effective in creating a structure that allows founders to concentrate on the work they should be doing themselves.

Yazaki: I feel that JAFCO's HR support is unique in that we can provide HR assistance from the position of a VC, which is different from being a consultant or an in-house HR person at the portfolio company. Because we are investing as a VC, we can focus more on the company's medium- to long-term business and organizational growth, collaborate with capitalists, and provide sustained support toward achieving the vision they want to accomplish.

Also, our team consists of three members: two of us have extensive experience as in-house HR professionals partnering closely with organizations and businesses at various corporate phases, and the other was originally a capitalist and is an "investment professional." Because we have dealt with many startups, entrepreneurs, and evolving businesses and organizations, we strive to be a team that can provide more essential HR support with an eye toward the future of the portfolio companies we assist.

Seed/Early Stage: HR Support to "Accelerate Business Growth"

—First, please tell us about the support you provide during the seed and early stages.

Tsuboi: In the seed and early stages, we provide HR support to accelerate business growth under the theme of "organizational design and talent acquisition." Specifically, we support "recruitment of CxO / executive talent" on the people side, and "organizational / personnel planning" on the organizational side.

In this phase, the number of employees is small, and the HR function is often handled by someone with other responsibilities rather than a dedicated person. Also, since the company's name recognition is often not yet high, talent acquisition becomes an all-out effort involving everyone, including the entrepreneurs and executive talent. In such situations, the challenge is that the entrepreneurs have too much to do and cannot concentrate on the core business, or they lack the right people to help grow the business.

Therefore, JAFCO's HR support is conducted with the image of creating a structure through recruitment that allows entrepreneurs and executive talent to focus on more important tasks where they excel. In the actual recruitment process, while it's important for entrepreneurs to commit to hiring, we also try to take on tasks in a way that allows them to focus as much as possible on things only a top leader can do, such as attracting candidates.

Yazaki: Before providing "how-to" support for recruitment activities, we sometimes start by discussing the ideal organizational structure that the portfolio company is aiming for. The necessary talent differs depending on the company's business and phase, so we first act as a "sounding board" for the founders to consider an organizational design that aligns with their business plan.

Specifically, we flesh out the organizational structure for the next two to three years based on the business plan, and increase the resolution on the organizational capabilities and talent needed to achieve it.

Ultimately, we sometimes provide support up to the point where they can monitor their personnel plan according to the condition of the business and organization and run a PDCA cycle.

Regarding specific support for talent acquisition, depending on the portfolio company's situation, we may help with everything from designing a recruitment strategy and creating a template for sourcing/candidate pool formation to interviewer training. We may also handle some of the hands-on work on behalf of the portfolio company.

In addition, we aim for increased efficiency and sophistication by introducing various recruitment support services that have a proven track record with our portfolio companies, such as executive search agents, direct recruiting, and RPO (Recruitment Process Outsourcing), as well as by supporting the implementation of AI-powered recruiting agents.

Tsuboi: Recently, we have also been focusing on "recruitment marketing" support to strengthen the hiring of our seed and early-stage portfolio companies. Specifically, we provide planning and production of video content that can be used in recruitment activities.

The main goal is to have the founders and executives of our portfolio companies convey information with a "human touch" through video and their own voices, so that candidates can have a high-resolution image of the company even before the interview/meeting. We feel that by improving both the quantity and quality of communication, we can enhance the recruitment selection experience.

Middle/Later Stage: Contributing to the "Growth" of the Organization and People

—Next, please tell us about the support you provide during the middle and later stages.

Tsuboi: In the middle and later stages, which correspond to the company's expansion phase, we provide support for the growth of the organization and its people under the theme of "organizational and personnel development." Specifically, we focus on supporting "cultivation of MVV / culture" and "construction of HR systems" for the organization, and "systematization of management enhancement" for the people.

In this phase, the company has demonstrated PMF (Product-Market Fit), the number of employees has grown to 50, 100, and beyond, and the nature of the organization changes significantly. Therefore, they are required to address new challenges such as "building an organization that can withstand growth" and "personnel development."

In response to these challenges, JAFCO believes that approaching both the soft side of corporate culture and the hard side of HR systems is an initiative that can leverage a company's growth. To face the different challenges of this phase and overcome the 50- and 100-employee walls, we provide support that enables a shift from a state of "individual" strength within the company to one of "team" strength.

—MVV and corporate culture have an aspect that is inherently difficult to evaluate quantitatively. Is there an approach that JAFCO emphasizes in its HR support?

Yazaki: Yes. For example, JAFCO incorporates a "diagnostic organizational development approach." We use surveys and questionnaires, and in some cases, conduct direct interviews with employees of the portfolio company to gather opinions and data. We then visualize the current situation and identify issues before engaging in a dialogue with the management.

As the number of employees increases, so do the things that become invisible. Therefore, deciding on the priority of issues after objectively looking at the whole picture leads to an improvement in the quality of problem-solving.

Coaching for Founders to Foster Further Growth of the Organization and People

—"Executive coaching" is a type of support you provide across all stages. What does this actually entail?

Tsuboi: Executive coaching is a support service where we provide coaching to executives, such as founders and the management team. Over a period of six months to a year, the individual sets a goal they want to achieve, such as clarifying their vision or executing a strategy. We then use coaching skills to communicate with them in a way that creates new changes in their thinking and actions to help them achieve that goal. We started this in 2022 when I joined, and in three years, we have had 625 hours of dialogue with over 30 executives from about 20 portfolio companies.

Yazaki: From JAFCO's experience supporting various portfolio companies in the past, and from my own experience, I believe that one of the important factors for a founder of a growing company is "whether they are a person who can change themselves."

Concepts like "what must be changed versus what must not be changed" and "having an open ear versus having strong conviction" may seem contradictory at first glance. However, I feel that behind the scenes, they are constantly gathering information with a high level of awareness, unhesitatingly updating their approach if they find something better, and continuing with the existing way if nothing superior comes along.

Tsuboi: From my position as a coach, I feel that the strength of an entrepreneur's "spirit of challenge" and "desire for improvement" is proportional to the company's growth. Leaders who constantly ask and think about questions like, "What vision lies ahead if we continue this business?" and "What kind of impact is it important to have on the organization and employees?" are truly captivating.

The reason JAFCO's HR support includes "executive coaching" is that we believe the growth of the founder is the support that has the most leverage on both the organization and its people.

As an initiative that can closely support the strong will and compelling challenges of founders, we want to support their personal growth through executive coaching.

—The way people work and the nature of organizations seem to have changed significantly in recent years. From the HR support team's perspective, how do you view this change?

Tsuboi: In recent years, especially, it seems to have become more difficult for a single charismatic founder to grow a company or business as in the past. The specialization of each job function has increased, and the composition of the organization now includes more contractors and freelancers in addition to full-time employees. The professionalization of work and the diversification of work styles are advancing. I think what's required is not just the strength of the founder as an "individual," but the strength of the management "team"—for example, whether the organization can act as a cohesive unit toward achieving its vision.

Yazaki: I see the market as a whole having shifted to an era where individuals build their careers autonomously rather than depending on a company, following the evolution of technology and the experience of the pandemic. Furthermore, as individuals' views on careers have changed and we've entered an era where people choose "companies they can empathize with," I believe that a company's unique "identity" is being called into question. This "identity" is not just about words; it is cultivated by translating corporate philosophies such as mission, vision, and values into HR systems and organizational culture. I believe that as a business phase progresses, the alignment of this philosophy and these systems becomes essential for enhancing organizational strength.

This kind of strategic organization building enables the acquisition and retention of talented personnel and is directly linked to the sustainable growth of the business and organization and the enhancement of corporate value, so I want to partner closely with founders on this.

—Finally, based on the journey of HR support so far, please tell us about the "future" of HR support.

Yazaki: As I mentioned earlier, I believe that people's ways of working and their values are changing significantly. Amid the changes that are likely to increase in the future, as HR support, I hope we can strengthen our role as a partner who co-creates medium- to long-term business growth, rather than just dealing with one-off organizational issues.

As the HR support team, we cherish the desire to "contribute to the enhancement of corporate value" and "support the resolution of people and organizational issues." We want to partner deeply with our portfolio companies from a long-term perspective. From recruiting CxO / executive talent in the founding stage, to designing organizational structures and recruitment strategies based on business plans, and launching HR organizations and designing HR systems in the business expansion phase, we want to be the most accessible sounding board for founders and HR professionals from an HR perspective, thinking together and working hands-on together.

Furthermore, in our initiatives to promote business growth based on solving people and organizational issues, I hope we can help instill the organization's "identity" and partner with them in building their own unique "strong team."

Tsuboi: Recently, in addition to supporting individual portfolio companies, we are also accelerating our knowledge-sharing initiatives to disseminate information about the challenges startups face and how to overcome them. For example, under the title "The Startup Wall," we have an initiative to create video content that shares the real-life experiences and challenges of our portfolio companies, the struggles and dilemmas they felt, and the insights gained from them.

Also, through our recent executive coaching initiatives, as I work as a coach for CEOs, I find myself increasingly dealing with common themes and challenges across different companies. For important themes for entrepreneurs and executives, what insights are gained from coaching, and what actions are taken? I am working on formalizing this knowledge, believing that if we can share it, we can create even more corporate growth.

In this way, we believe that disseminating valuable information not only to our portfolio companies but to many startups is something that we, as a company that has partnered with businesses through investment for many years, are uniquely positioned to do. We will continue to explore and carry out these activities to contribute to the startup ecosystem.