Funds Startups Co., Ltd. (Headquarters: Shibuya-ku, Tokyo; Representative Director: Hirofumi Maekawa; hereinafter referred to as "the Company") is pleased to announce the establishment of "Funds Venture Debt Fund 2" (hereinafter referred to as "Fund 2") and the completion of its first closing. Fund 2 is designed as an "All-Stage Deep Tech Debt Fund" to consistently support startups in the deep tech domain from their early stages through their growth and expansion phases, with a target total fund size of 10 billion yen. With The Bank of Mitsubishi UFJ, Ltd. (Headquarters: Chiyoda-ku, Tokyo) serving as the anchor investor, and with additional investments from existing LPs and the participation of new banks, we have become the GP with the largest number of participating banks in Japan through Funds 1 and Fund 2. We will lead the venture debt market together with financial institutions across Japan. Building on the track record of Fund 1, this fund comprehensively addresses the funding challenges faced by deep tech startups. We have newly established a system capable of providing integrated, tailor-made support from seed to later stages by combining subsidy bridge finance, convertible bonds (hereinafter referred to as "CB"), and venture debt. ◾️ Background: Fundamental Improvement of Startup Financing Structure through Modern Industrial Finance Development When startups in Japan raise funds, the practically available options are limited to equity and senior debt, with a limited number of providers, creating a financial environment with uniform dynamics. Consequently, startups have often been unable to make the choices they would ideally prefer due to the constraints of this financial environment. However, in recent years, finance that fills this gap, led by venture debt, has been developed and popularized in the market, significantly increasing the depth of the startup financing environment compared to the past. On the other hand, startups themselves have also diversifi