Stock compensation SaaS platform Nstock raises JPY 3bn in funding

Nstock has raised 3 billion yen in third-party allocation of new shares from WiL, Coral Capital, Chiba Dojo Fund, ALL STAR SAAS FUND, and East Ventures.

The newly raised funds will be used primarily for product development, business registration under the Financial Instruments and Exchange Act, preparations for the launch of new businesses, and hiring members to carry out these tasks. The company also plans to use the funds to expand the functionality of its stock-based compensation SaaS and build an exchange for unlisted stocks for startups.

Founded in 2022, Nstock is already in the process of launching its “Stock Compensation SaaS Business,” preparing for business registration and other steps to launch its “Secondary Business,” and verifying the needs of its “Startup Reinvestment Business.” Through these three businesses, Nstock aims to eliminate bottlenecks in the startup ecosystem and lay the foundation for the birth of many unicorns and decacorns in Japan.

Nstock, a stock compensation SaaS that will soon be celebrating its first anniversary since the product became paid, is software that makes it easy to conclude contracts for stock options (SOs) and manage rights holders. On the rights holder’s “My Page,” the contract details and economic value of SOs can be visualized, and rights holders can feel that the company’s success leads to their economic success, which has the effect of increasing motivation. There is also high anticipation for the SO exercise application and approval function added in August 2024 and the RS/RSU support that will be developed in the future, and the average monthly sales growth rate is exceeding 30% (as of July 2024).

In the secondary shares business, which is scheduled to start in 2025, Nstock aims to build an exchange for unlisted stocks based on the concept of an “in-house exchange” where the issuer startup company can control the trading participants and trading conditions. Even at the time of unlisting, there will be an opportunity to make SOs and shares liquid, which will not only increase the attractiveness of SO compensation, but will also allow startups to avoid “small IPOs” at undesirable times due to the SO exercise deadline, and choose an IPO at the optimal time.

Furthermore, Nstock has begun verifying the needs for their third business, a “startup reinvestment business.” By creating opportunities to reinvest capital gains, know-how, and experience gained from successful startups in new startups, we aim to build an ecosystem that creates a virtuous cycle.

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