The Tokyo Stock Exchange is raising the minimum market capitalisation for companies listed in its Growth Market section to ¥10 billion by 2030, a move that could significantly impact secondaries activity in Japan. This new requirement represents a substantial increase from current thresholds and signals a shift toward attracting larger, more established companies to the exchange.

The change is particularly relevant for Japanese venture capital firms, as it could create challenges for realizing returns through public listings. Many growth-stage companies currently in VC portfolios may struggle to meet the new criteria, potentially extending holding periods and complicating exit strategies for investors.

For the secondary market, this development could accelerate activity as funds seek alternative exit routes. With fewer companies qualifying for public listings, secondary buyers may see increased opportunities to acquire stakes in promising startups that can't meet the new listing requirements. This could reshape the Japanese startup ecosystem and influence how VCs structure their investments and exit timelines.