MOLTON Inc. (Headquarters: Chuo-ku, Tokyo; CEO: Yasufumi Sakichi), a provider of Alternative Legal Service Provider (ALSP) solutions and the BPaaS platform "Cloud Legal," announced on March 11 the launch of a new service designed to significantly reduce the workload of legal, intellectual property (IP), financial, and tax due diligence (DD) in M&A and other transactions.
By combining initial reviews performed by the latest generative AI with final verification by lawyers and other specialists, this service achieves both high precision and speed in DD operations. It aims to create an environment where companies can focus on more strategic aspects of M&A.
In recent years, the scale and frequency of domestic M&A and business transfers have grown, leading to a rapid expansion of the risk scope covered by legal DD. Investigations now span a wide range of areas, including contractual relationships, intellectual property, human resources and labor relations, information security, and regulatory permits.
Traditionally, legal and IP DD have relied heavily on manual labor, placing a significant burden on companies in terms of cost and turnaround time. Many organizations have faced challenges such as being forced to abandon sudden deals due to an inability to respond quickly, or finding that DD costs put excessive pressure on the overall project budget.
In MOLTON's new service, high-precision generative AI—designed and supervised by lawyers and professional specialists—performs the primary review of vast volumes of relevant documents and executed contracts. Subsequently, a system is in place where experts conduct direct final verifications, taking into account the specific circumstances and conditions of individual companies.
This "AI x Expert double-check" system prevents omissions while successfully reducing review and check man-hours to less than half of traditional methods. Furthermore, the service complies with the latest legislative changes, such as the New Freelance Act, and can be used in conjunction or integrated with existing corporate legal counsel or previously implemented legal tech services.
Moving forward, the company plans to strengthen its capabilities in IP, financial, and tax DD. Through initiatives such as consulting for the improvement of integrated reports, MOLTON aims to provide comprehensive support for securing capital from domestic and international investors and enhancing overall corporate value.
■ ICT Startup League
Launched in FY2023, this support program originated from the Ministry of Internal Affairs and Communications' "Project for Supporting R&D for Seed-stage Startup Creation."
The ICT Startup League supports startups through four main pillars:
1. R&D Funding / Hands-on Support
Provides up to 20 million yen in R&D funding via subsidies. In terms of hands-on support, the selection committee members who evaluated the league members continue to provide guidance after the selection process to accelerate growth. For companies rated as "must-adopt" by evaluators, a support system similar to "fandom-style" mentorship is established, where evaluators themselves provide ongoing advice on business plans and growth opportunities.
2. Discovery & Cultivation
Provides opportunities for learning and networking to promote the business growth of league members. It also seeks to discover aspiring entrepreneurs to expand the ecosystem.
3. Competition & Co-creation
Functioning like a positive competitive environment in a sports league, the system allows startups to learn from and challenge one another to win the necessary funding (up to 20 million yen). It also provides a space for "co-creation" where league members collaborate to expand their businesses through sessions with selection committee members and various other opportunities.
4. Dissemination
Collaborates with media to promote the initiatives of league members! By raising awareness of these businesses, the program aims to broaden the scope for new matching opportunities and growth.
■ Related Websites
ICT Startup League
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MOLTON Inc. (Official Site)
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a23s Inc. (now MOLTON Inc.) (LEAGUE MEMBER)
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Cloud Legal
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Original Press Release (Japanese)
For more details on STARTUP LEAGUE's startup support, please see here.
