What I did
- Verified the monorepo repository created yesterday and started setting up the local development environment
- Decided not to switch the production environment today due to risk
- Evaluated ZenHub (GitHub Chrome extension) for project management. Aiming to keep everything within GitHub
- Attended a pitch event. Gathered information about fundraising and company formation
Learnings
Loan-to-Capital Conversion Is Difficult
Investigated whether a loan could be temporarily booked as a liability and later converted to equity capital. Conclusion: it's not straightforward. Debt (loans) and equity (capital investment) are fundamentally different in nature, so a simple reclassification isn't possible.
VC Investment Scale
VCs typically need to see a market opportunity in the range of 100 billion yen (roughly $700M+) to consider investing. Smaller markets don't attract venture capital.
Public Offering Disclosure Rules
When announcing a public offering (soliciting investment) at a venue with 50+ attendees, prior filing is required. This is regulated under the Financial Instruments and Exchange Act.
Corporation vs. LLC
Two main corporate structures: Kabushiki Kaisha (corporation) and Godo Kaisha (LLC). Corporations are better for attracting external investment; LLCs have lower setup costs. The choice depends on the business direction.
The pitch event reinforced that startups require far more than engineering. Fundraising, legal, and accounting knowledge are essential. Most problems you'll face can't be solved with code.