Simple Form raises JPY 4bn in Series B to support Japanese due diligence

Simple Form has raised a total of 4 billion yen in Series B funding, consisting of a 2.6 billion yen third-party allotment of shares to nine investors, including a government-affiliated fund, four megabank-affiliated venture capital firms, and independent venture capital firms, and a 1.4 billion yen loan from financial institutions.

Background of Funding and Use of Funds

Since its founding in 2020, Simple Form has been working to revolutionize due diligence in corporate transactions with the mission of “creating a world where all corporations can connect fairly.”

In recent years, non-face-to-face crimes such as cross-border money laundering, specialized fraud, and cybercrime have been increasing, and regulations are being strengthened. As a result, companies are struggling to keep up with these measures. While strengthening only the due diligence process in non-face-to-face transactions reduces operational efficiency and user convenience, there is a need to build a due diligence system that balances regulatory compliance and convenience.

Against this backdrop, Simple Form is developing products such as ‘SimpleCheck,’ which automates the corporate investigation process by collecting and databasing qualitative information on 5 million corporations in Japan, and ‘SimpleMonitor,’ which monitors important changes in corporate risk information, to promote DX in the lagging due diligence process. Products and professional services that support the construction and operation of due diligence systems for corporate transactions are being adopted by financial institutions and credit card companies to prevent financial crimes and improve operational productivity. We will make the following investments to further enhance our services:

Enhancement of Existing Products

Simple Form will improve the accuracy, functionality, UI, and UX of ‘SimpleCheck’ and ‘SimpleMonitor’ to further improve the efficiency and sophistication of our customers’ due diligence operations.

Development of New Products and Investment in New Businesses

Simple Form will accelerate the development of products based on accumulated data, such as products that detect and provide criteria for judging irregularities in corporate activities from various aspects, including changes in corporate attributes, connections with other corporations, and patterns in public information, and products that support due diligence operations for inexperienced personnel.

In the medium to long term, Simple Form aims to realize the concept of ‘SimpleForm,’ a service that integrates multiple products, including ‘SimpleCheck’ and ‘SimpleMonitor,’ and their expertise in supporting due diligence operations to provide one-stop support for corporate transaction due diligence.

Recruitment and Organizational Strengthening

Simple Form will expand their organization, focusing on the sales department, development department, and research department, which is responsible for data collection, analysis, and research, to further strengthen our development and service provision systems.

Simple Form will begin full-scale new graduate recruitment and expand the number of regular employees to over 100 by the end of 2025.

Simple Form will establish a system to strengthen their consulting functions to design due diligence operations that meet the needs of the times.

Funding Overview

Through this round, Simple Form has received support from a government-affiliated fund, four domestic megabank-affiliated VCs, and leading Japanese VCs, building a strong team to update due diligence operations in Japan.

In addition, two existing investors, DNX Ventures and DBJ Capital, made additional investments beyond the exercise of rights based on regulations, based on their evaluation of our past performance.

New equity investors:

• SMBC Venture Capital
• Angel Bridge
• JIC Venture Growth Investments
• JAFCO Group
• Mizuho Capital
• Mitsubishi UFJ Capital
• Resona Capital

Existing equity investors with additional investment:

• DNX Ventures
• DBJ Capital

Venture debt providers:

• Shoko Chukin Bank
• The Bank of Fukuoka
• Mizuho Bank
• Sumitomo Mitsui Banking Corporation
• MUFG Bank
• Resona Bank

Business Status

Simple Form has introduced its products to top customers, mainly financial institutions and platformers, and achieved significant sales growth of 10 times in about two years. Their Net Revenue Retention (NRR) per existing customer has grown to 152%. 90% of its business discussions are referrals from trusted customers who introduce us to other departments and group companies.

Approximately 3,300 users log in to ‘SimpleCheck’ at least once every two days, using it for their daily due diligence operations. ‘SimpleMonitor,’ which was officially launched in June 2024, reduces the burden on customers’ risk judgments by adding our analysis and interpretation to data showing the latest movements of 5 million corporations nationwide, enabling sophisticated judgments and prompt risk mitigation actions. The number of regular employees has reached 60 (as of November 1, 2024).

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