Youth Venture Equity Exchange
Introduction
The Youth Venture Equity Exchange is the only integrated platform for equity registration and custody, equity financing, and equity trading for young non-listed companies in Japan. Youth entrepreneurship equity transactions are for non-listed non-public companies, high-tech enterprises, and high-growth companies. The core business is private equity financing, supporting services are based on custody and trading, and joint-stock reform, consulting services, and equity The pledge financing service is an extension of the business, actively exploring innovative business varieties such as private equity fund issuance and share trading, and trust products; providing small, fast, multiple, and low-cost equity financing services for enterprises to build equity financing, corporate listing cultivation, and Incubation and PE exit from the three functions of a professional platform.
Trading Varieties of Youth Venture Equity Exchange
1. Common stock equity
It refers to the shares of shareholders' equity issued by an unlisted company limited by shares. After application and review, they are listed on the Youth Venture Stock Exchange. The Japanese Equity Registration Management Center handles the registration, custody, and transfer of equity, and manages the register of shareholders. After the equity is listed, if it is registered with the Youth Venture Equity Exchange, it will perform the operation of buying and selling equity and transferring funds.
2. Private placement bonds of small, medium and micro enterprises fund
It refers to private placement bonds issued by small, medium and micro enterprises (unlimited companies). After application and filing, they are divided into 200 shares on average and listed on the Youth Venture Stock Exchange. The Japanese Equity Registration Management Center handles the registration and custody of bonds, transfer business, and manages the investor roster. After the private placement bonds are listed, the private placement bonds are traded and funds are transferred. After the bonds expire, the issuing entity shall perform the repayment obligations to the registered investors.
The Significance of Listing
1. Why should companies borrow capital markets
The capital market is a place where social wealth can be traded and circulated, and it provides the functions of value discovery, integration, and optimized allocation for human activities and resources. The purpose of setting up an enterprise is to create and chase wealth, and the value of wealth can only be fairly represented in the capital market, and only the capital market can give a reasonable judgment on the value of the enterprise. Therefore, an enterprise must not only understand production and operation, but also more importantly, understand the "language" and rules of the capital market, allocate resources in accordance with the requirements of capital, enhance strengths and avoid weaknesses, and maximize value. With the help of capital markets, it is easier for companies to grow bigger and stronger. First, to achieve horizontal and vertical integration of assets at reasonable prices, to rapidly expand market share and form a scale effect; second, to introduce strategic investors through public listing (listing), accept supervision, and establish a standardized corporate governance structure for enterprises , Improve scientific decision-making, reduce risk; third, through listing (listing), to provide shareholders with exit channels, can attract more investors to join, thereby obtaining low-cost funds, improving the company's capital structure, reducing capital costs, reducing Financial risks; Fourth, through listing (listing), improve the visibility and reputation of enterprises and brands, and pass standardized operating information to the market, so that the company can gain a larger market share.
2. What kind of help can the Youth Venture Stock Exchange provide for enterprises
Listed on the Youth Venture Stock Exchange, the company can provide the following help for the company's business development:
- Equity financing activities can be carried out in a standardized, orderly and efficient manner
- Private placement bonds can be issued
- Depending on the liquidity of the platform, equity incentives can be set up for senior managers and core technical personnel of enterprises
- It can standardize the corporate governance structure, conduct listing cultivation, and transfer to a higher-level securities trading venue when conditions are ripe
- It is possible to increase the efficiency of equity pledge financing through the appreciation of liquidity and standardized governance, which can be recognized by financial institutions
Business Listing Process
1. Conditions that an enterprise should meet
Enterprises applying for listing on the Youth Venture Stock Exchange shall meet the following conditions:
- Established in accordance with the law and continue to operate for two years or more
- Both the registered capital and net assets are not less than 15 million yen, and the registered capital is fully in place
- Complying with national industrial policies and outstanding main business
- The business is basically independent and has the ability to continue operations
- sound governance structure and standardized operation
- There is no significant inter-bank competition, obviously unfair related party transactions, large amounts of shareholders 'appropriation of assets and other acts that harm investors' interests
- The number of shareholders does not exceed 100 in principle
- Consecutive profits in the last two years, with a total net profit of not less than 50 million yen or a net profit of not less than 30 million yen in the latest year
- The operating income of the last year is not less than 150 million yen or the growth rate of the operating income of the latest year is not less than 20%
Articles (8) and (9) may be appropriately relaxed for innovative, high-growth and high-tech enterprises and high-quality small and micro-enterprises in the state's key encouraged development industries
2. Market entities involved in corporate listing
Referrer: Responsible for all matters listed on the Youth Venture Stock Exchange. The recommender will coordinate the accounting firm and law firm to jointly carry out the shareholding system reform, design the financing structure, determine the financing price, discover the highlights of the enterprise, and sort out the business model of the enterprise. Accounting firm: Issue audit reports and capital verification reports for the company in the last two years. Law firm: Issue legal opinion and lawyer's work report for listed companies.
3. Total cost of listing
Enterprises listed on the Youth Venture Stock Exchange mainly incur the following direct expenses:
- The listing fee of the Youth Venture Stock Exchange: 200,000 yen
- Financing service fee of the Youth Venture Equity Exchange: It is charged according to the amount of financing, and 2% for the part below 20 million yen, and 1% for the part between 20 million and 50 million yen
- Referral fee: 500,000 yen
- Accounting firm: 1 million yen
- Law firm: 1 million yen
Except for items (1) and (2), the rest are determined through consultation between the enterprise and the contracting parties. The above amounts are for reference only.