Fivot, Inc., pushed by its mission to “Create new flows of capital for rising industries,” is pioneering new monetary methods by leveraging its distinctive applied sciences. As a number one fintech innovator, the corporate has drawn appreciable consideration—most notably by successful 1st Place within the Monetary Innovation Class on the Tokyo Monetary Award 2024. We requested Abe Shogo, CEO of the corporate, in regards to the potential and way forward for startups in Tokyo.
Aiming to turn out to be a Japanese challenger financial institution
Fivot, Inc. is a FinTech startup established in 2019. It supplies monetary companies designed to advertise clean financial circulation throughout society by means of Flex Capital, a debt financing answer tailor-made particularly for startups, and IDARE, a mobile-based financial savings and cost service for people.
Earlier than founding Fivot, Abe labored within the funding banking division of a significant securities agency, the place he was concerned in M&A advisory and underwriting. “I used to be fascinated by how capital flows by means of society and contributes to company progress. On the similar time, I felt inflexible laws and outdated applied sciences within the monetary sector had been holding the business again, and thought that if banking may evolve with extra flexibility, it may make society higher.”
A turning level got here round 2016, when so-called “challenger banks” started to emerge abroad. These had been startups that had acquired banking licenses and launched progressive companies that conventional monetary establishments couldn’t present. Seeing this, he realized this enterprise mannequin was precisely matched to the challenges he needed to unravel. Impressed by this, he launched Fivot with a transparent mission—to remodel Japan’s monetary sector by means of innovation in banking.
Flex capital supplies quick and versatile financing for enterprise progress
One in every of Fivot’s core companies, Flex Capital, is a debt financing answer tailor-made for startups. Not like the normal means of credit score evaluation, which depends closely on monetary statements, Flex Capital leverages superior, distinctive know-how to investigate a variety of different information sources. Even corporations presently working at a loss might qualify for financing if the outcomes of the information evaluation point out potential for future progress and profitability.
“Early-stage startups typically publish losses, so conventional banks are likely to reject them based mostly solely on monetary statements. We collect and analyze a variety of knowledge—together with financial institution transaction data and accounting journals and even social media exercise—to evaluate enterprise potential, indicators of company progress, enterprise viability, and total worth.”
What units Flex Capital aside is its pace and ease. Startups can safe debt financing of as much as 300 million yen inside two weeks of submitting their purposes.
“All the course of is accomplished on-line. With API integrations and different applied sciences, we notice an unmatched pace that allows candidates to submit purposes inside 10 minutes, and sometimes obtain a choice inside 10 enterprise days,” explains Abe, in regards to the pace of the method.
As of June 2025, Flex Capital has supplied over 10 billion yen in cumulative financing, and supported greater than 270 corporations. Its distinctive mixture of flexibility and pace is unmatched by different financing companies, and makes it a strong companion for startups aiming for speedy progress.
IDARE, a cashless private financial savings and cost service
So as to remodel the movement of capital throughout society, Fivot can also be working to offer private monetary companies. IDARE is a cellular app based mostly on a pay as you go card system designed to assist customers saving cash. Customers can create personalized “bins” based mostly on their targets and accumulate financial savings in response to their very own plans.
Abe explains how IDARE differs from typical cashless cost companies: “Most cashless cost companies, together with bank cards, reward customers with bonus factors after they spend. IDARE, nonetheless, rewards customers based mostly on the typical stability they maintain of their account. Customers earn bonus factors equal to an annual price of two%, which makes saving simpler.”
IDARE celebrated its fourth anniversary in April 2025. Because the launch of the service, customers have created over 180,000 financial savings bins, with a mean stability of roughly 160,000 yen. One other benefit of IDARE is that all the sign-up course of may be accomplished by means of the app, permitting customers to start out saving instantly. Like Flex Capital, IDARE lowers the obstacles to entry, making it accessible to extra various customers.
Received 1st place within the Monetary Innovation Class of the Tokyo Monetary Award 2024
Flex Capital Bill service, a service supplied by Fivot, received 1st Place within the Monetary Innovation Class of the Tokyo Monetary Award 2024, hosted by the Tokyo Metropolitan Authorities (TMG). Established in 2018, the Tokyo Monetary Award honors companies that contribute to creating monetary innovation and constructing a extra sustainable society, with the aim of revitalizing the monetary business and making the lives of Tokyo residents extra handy. The award consists of two classes: Monetary Innovation and Sustainability. Within the Monetary Innovation Class, monetary corporations are invited to suggest options to monetary challenges voiced by Tokyo residents and companies, thereby facilitating the matching of those challenges and progressive options.
Flex Capital Bill pays an organization’s invoices upfront for the corporate, and gives deferred, installment-based reimbursement. Abe highlights the distinctiveness and novelty of the service.
“Not like conventional factoring and enterprise loans which allow corporations to monetize receivables earlier, Flex Capital Bill permits them to delay outgoing funds. I consider it has been well-received because it helps money movement not just for startups but additionally for a wider vary of corporations, together with small- and medium-sized corporations.”
Profitable the award has additionally introduced them elevated consideration from banks and different monetary establishments, considerably boosting the corporate’s credibility. “It takes time for startups to construct credibility. Profitable an award like this offers us proof that we’re offering useful companies and merchandise, and enhances each our credibility and recognition.”
Trying forward, Fivot goals to develop new companies by means of collaboration, combining its strengths as a FinTech firm—know-how and suppleness—with the credibility and powerful assets conventional banks have. The truth is, the corporate has additionally begun efforts to offer a few of its in-house developed methods to assist banking operations.
The potential of startups in Tokyo: A hub for expertise, capital, and knowledge
As of the top of 2022, there have been 10,395 startups headquartered in Tokyo, which accounts for 66% of all startups in Japan. Moreover, as of January 2024, staff at startups made up over 8% of Tokyo’s whole workforce, in comparison with lower than 1% in all different prefectures besides Osaka, illustrating clearly the excessive focus of startups in Tokyo. Certainly, Abe notes that a lot of the corporations utilizing Flex Capital are based mostly in Tokyo.
He mentioned the position and potential of startups in Tokyo, and their speedy progress there.
“By supporting startups financially, we hope to speed up their progress, create extra jobs, and in the end catalyze sustainable and powerful financial progress in Tokyo.”
Why achieve this many startups flock to Tokyo? Drawing on his personal expertise, Abe analyzes its enchantment. “Tokyo brings collectively prime expertise, ample capital, and up-to-date data. There are additionally many enterprise capital corporations right here. This creates an surroundings the place it is simpler to discover a expertise, create a robust group, and safe funding when beginning an organization.”
Tokyo additionally gives extra alternatives for networking and collaboration by means of frequent startup associated occasions, creating environments the place connections can naturally result in enterprise progress—one thing that’s typically more durable to attain in rural areas.
One other draw is the sturdy public assist for startups. The TMG operates Tokyo Sogyo NET, which gives quite a lot of data on subjects equivalent to enterprise planning, financing and normal entrepreneurship assist. Moreover, in November 2022, town introduced its “International Innovation with STARTUPS” technique, which goals to extend the variety of unicorns, startups, and public-private collaborations originating in Tokyo tenfold inside 5 years. Moreover, in June 2024, Tokyo was additionally designated a Particular Zone for Monetary and Asset Administration Companies, in an effort to appeal to world asset managers and improve funding surroundings for startups.
Driving challenges and reworking the movement of the financial system
Whereas working to assist startups, Abe—himself a founder throughout the startup ecosystem in Tokyo—encourages others to take motion: “You probably have one thing you actually wish to do, do not hesitate—go for it, and maintain going for it.”
“If we have now entrepreneurs saying, ‘I used to be capable of safe funding due to Fivot, and that allowed the enterprise to develop,’ and if we will improve such circumstances from one to 10, from ten to 100 or perhaps a thousand, I consider it is going to finally have a major impression on all the financial system.”
Funding is only one device, however as a companion that empowers daring challenges and progress, Fivot might be on the core of driving transformation. By creating new flows of capital, Fivot has the potential to revitalize the startup ecosystem and even form the way forward for Japan’s financial system.
Interview and writing by Kato Natsuko
Translation by Tanaka Seira
