Our History
JAFCO was founded in 1973, when private equity investment was still in its infancy in Japan. Over the next 50 years, we continued to invest in bold visions, working closely with highly motivated entrepreneurs and business owners. This is our story of pioneering progress on the front lines of the risk capital market through periods of rapid change.
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1973 - 1981
Establishment
JAFCO started as a joint venture between Nomura Securities, Nippon Life Insurance Company, and The Sanwa Bank (now MUFG Bank) during the early years of venture capital in Japan. In addition to investment activities, the company strengthened its earnings base through the expansion of its lending business.
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1973
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Japan Associated Finance Co., Ltd. established as joint venture between three companies*; Launched venture investment business
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1981
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Started recruiting new graduates
* Nomura Securities Co., Ltd., Nippon Life Insurance Company, and The Sanwa Bank, Ltd. (now MUFG Bank, Ltd.)
Notable events and market environment
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1973
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First oil crisis; End of Japan's period of rapid economic growth
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1976
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Japan OTC Securities Co., Ltd. established
1982 - 1992
Business expansion
After establishing Japan's first investment private partnership (fund), JAFCO steadily increased its funding, delivering high performance backed by the growth of the Japanese economy. It successively launched large funds, expanded domestic investment, and initiated overseas investment. The cumulative number of domestic portfolio companies surpassed 1,000.
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1982
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Established Japan’s first venture capital fund, JAFCO No. 1 Investment Enterprise Partnership
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1984
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Established US subsidiary, JAFCO America Ventures Inc.
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1986
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Established JAFCO Investment Inc. as first business base in Asia
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1987
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Registered as over-the-counter stock with Japan Securities Dealers Association
Notable events and market environment
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1983
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New OTC market opened
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1985
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Rapid appreciation of yen due to Plaza Accord
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1991
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End of Japan’s bubble economy
1993 - 1997
Post-bubble economy
With domestic investment stagnating, JAFCO adopted an end-to-end approach to investment, enhancing portfolio company support with IPO preparation and talent introduction. It also began full-scale investment activities in Asia, the US, and Europe.
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1997
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Established Japan’s first industry–academia fund
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1997
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Changed company name from Japan Associated Finance Co., Ltd. to JAFCO Co., Ltd.
Notable events and market environment
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1994
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Regulations eased for dispatch of directors and officers from VCs
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1997
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Asian financial crisis
String of bankruptcies among financial institutions
1998 - 2002
Concentration on venture capital and private equity investment
JAFCO expanded its private equity investment business by launching buyout investment. Benefiting from the IT boom, it continued to perform strongly both domestically and internationally, focusing on seed and early-stage IT startups for venture investment.
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1998
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Launched specialized investment for buyout investment
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2000
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Established specialized division for adding value to overseas portfolio companies
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2001
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Listed on First Section of Tokyo Stock Exchange (TSE)
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2001
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Established specialized division for investment in university-originated startups
Notable events and market environment
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1998
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Limited Partnership Act for Investment enacted
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1999
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Act on Supporting Business Innovation of Small and Medium-Sized Enterprises enforced TSE Mothers Market established
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2001
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Collapse of dot-com bubble
2003 - 2009
Diversified full-line investment
After the collapse of the dot-com bubble, JAFCO recorded losses for the first time since its founding. It geared itself toward gaining market shares in the domestic IPO market and increasing the size of funds through investments spanning a variety of business types and development stages.
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2004
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Established specialized division for adding value to portfolio companies in Japan
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2007
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Registered as financial instruments business operator
Notable events and market environment
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2007
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Financial Instruments and Exchange Act enforced
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2008
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Global financial crisis
2010 - 2021
Highly selective, intensive
investment
By investing in ventures with high potential and securing influential stakes, JAFCO enhanced its corporate value, aiming to build a performance foundation resilient to market fluctuations. The number of IPOs it backed surpassed 1,000, while cumulative assets under management reached one trillion yen.
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2010
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Shifted fully toward highly selective, intensive investment
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2015
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Transitioned to company with a board-audit committee
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2017
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Became financially independent from the Nomura Group (Acquired all JAFCO shares held by Nomura Holdings and Nomura Research Institute)
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2018
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Introduced partnership model to business structure
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2020
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Changed company name to JAFCO Group Co., Ltd.
Notable events and market environment
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2011
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Great East Japan Earthquake
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2012
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Inauguration of second Abe administration (start of “Abenomics”)
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2016
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Bank of Japan introduced negative interest rate policy
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2020
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Global COVID-19 pandemic
2022 - Present
Evolution of "highly selective,
intensive investment" and
fulfilling our Purpose
With venture investment and buyout investment as its two key drivers, JAFCO is promoting the further evolution of its highly selective, intensive investment approach. By focusing on domestic investment where the market is expected to continue growing, it is strengthening its efforts aimed at fulfilling its Purpose.
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2022
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Formulated the Basic Policy for Enhancing Corporate Value
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2023
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Formulated our Purpose: "Fueling perpetual growth; investing in bold visions"
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2024
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Jointly developed first domestic publicly offered investment trust for Japanese stocks incorporating unlisted securities
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2025
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Announced shift of focus to domestic investment
Notable events and market environment
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2024
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Negative interest rate policy lifted
Toward the Future
We believe that ongoing investment and market expansion are essential to fulfilling
our Purpose—"Fueling perpetual growth; investing in bold visions"—and Contributing a sustainable society,
and we have taken action accordingly.
Amid major social, economic, and global environmental changes,
not only have we invested in bold visions but we have also laid the groundwork
for new businesses to come forward such as by nurturing entrepreneurs and developing ecosystems.
Learn more about our efforts for a sustainable future in the articles below.
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