AAA Space Market races to IPO stage

Space Market races to IPO stage

Space Market, a Japan-based physical space rental platform backed by corporates Opt, CyberAgent, Tokyo Tatemono, JTB, Tokyo Metro and Recruit, has been approved for an initial public offering, The Bridge has reported.

The company plans to float on Tokyo Stock Exchange’s Mothers Market on December 20, issuing some 520,000 shares, with almost 270,000 shares reserved for the over-allotment option.

Founded in 2014, Space Market runs an online platform where businesses can rent space in disused venues, taking a commission from the owners of the spaces. The offering is expected to value it at about $53m according to The Bridge.

Underground rail operator Tokyo Metro invested an undisclosed amount in the company in April this year, three months after it had raised $7.8m from investors including travel agency JTB, property developer Tokyo Tatemono and Opt Ventures, a subsidiary of digital marketing agency Opt.

The February round also featured financial services firm SBI and strategic consulting services provider XTech Ventures.

Opt Ventures led a $3.9m round for Space Market in 2016 that included Recruit unit Recruit Strategic Partners, SBI subsidiary SBI Investment and financial services firms Orix and Mizuho Ventures, the latter through venture capital vehicle Mizuho Capital.

Mizuho Capital and CyberAgent Ventures, a corporate venturing vehicle for internet company CyberAgent, had provided $940,000 in funding for the company in 2014.

Dausuke Shigematsu, Space Market’s founder and CEO, has the largest stake in the company, owning a 47.6% stake through investment holding vehicle company Double Pines.

Opt Ventures holds 10.6%, CyberAgent Ventures successor CyberAgent Capital 6.6%, recruitment firm Mynavi 2.9%, Orix 2.2%, Mizuho Capital 1.8%, Tokyo Tatemono 1.5%, XTech Ventures 1.5% and Docomo Innovation Fund, part of mobile network NTT Docomo, 1.5%.

By Robert Lavine

Robert Lavine is special features editor for Global Venturing.

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