Target Company Overview

Akatsuki Ventures has invested in Sanu Inc., headquartered in Chuo-ku, Tokyo, which operates the SANU 2nd Home subscription service. SANU 2nd Home offers a unique service that allows individuals to enjoy a "second home" experience by providing access to cabins located in natural settings across Japan for a monthly fee of 55,000 JPY. Unlike traditional vacation rentals or purchases, users can subscribe and access a network of cabins conveniently through their smartphones. Since its service launch in April 2021, the initial membership slots sold out rapidly, and by November 2021, the waiting list reached 2,300 individuals in just five months.

Sanu aims to expand its footprint by establishing 200 cabins across 20 locations by 2024, focusing on promoting the concept of second homes and expanding its market presence.

Industry Overview in Japan

The trend towards lifestyle changes emphasizing connection with nature has been gaining traction in Japan. With urban living often leading to a disconnect from natural environments, many individuals seek alternatives that provide a break from city life. This shift is reflected in the popularity of outdoor and rural living options, where people are increasingly interested in experiencing nature up close.

In recent years, the Japanese government has also encouraged initiatives for regional revitalization, which has further supported the growth of industries surrounding nature-based tourism and rural accommodations. As more people look for escapes from the hustle and bustle, the demand for second-home services is likely to continue increasing.

In addition to lifestyle choices, the emphasis on sustainability and environmental consciousness is driving investments in businesses that offer experiences closely tied to nature. Companies that align with these values are positioned well for growth in this evolving market landscape.

Rationale Behind the Deal

Akatsuki Ventures resonates with SANU's vision of “Live with nature,” believing that providing more individuals with access to nature will contribute to a society where humans coexist harmoniously with the environment. The investment reflects a commitment to enhancing this lifestyle choice, which is becoming increasingly popular among urban dwellers seeking to reconnect with nature.

By leveraging Akatsuki's extensive support network and resources, SANU aims to scale its operations effectively, ensuring that it can fulfill its ambitious expansion goals while staying true to its mission.

Investor Information

Akatsuki Ventures, a wholly-owned subsidiary of Akatsuki Co., Ltd., is set to manage the new 5 billion JPY fund named Dawn Capital, which aims to invest in innovative startups that create impactful services and products. This fund is designed to provide hands-on support to portfolio companies, with a dedicated operational team working closely with entrepreneurs to foster growth.

The investment in SANU is aligned with Akatsuki Venture's focus on nurturing businesses that can drive societal change, particularly in creating sustainable living and experiential offerings related to nature.

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This investment in SANU is seen as a strategic move that capitalizes on the growing trend of nature-oriented lifestyles. With the increasing demand for unique living experiences that combine comfort with nature, SANU is well-positioned to attract a diverse customer base. Additionally, the planned expansion will likely drive revenue growth and enhance market penetration, making it a promising investment opportunity.

Moreover, Akatsuki's active involvement in supporting SANU beyond just financial backing bodes well for the company's future. The expertise that Akatsuki brings to the table could help SANU navigate challenges as it scales its operations, increasing the likelihood of long-term success.

Overall, the deal presents a synergistic partnership whereby both entities can further their objectives while supporting the higher purpose of fostering a more sustainable relationship between humanity and nature. Therefore, it is projected to be a strong investment with significant growth potential in the coming years.

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