・EstablishJIC VGI, the first authorized fund under JIC’s new management structure
・Supply sufficient risk capital to growth-stage startups
・Build afoundation for the establishment of a virtuous cycleof risk capital through stimulating private sector investment and promotingindustrial collaboration and open innovation
株式会社産業革新投資機構（本社：東京都千代田区、代表取締役社長：横尾敬介、以下「JIC」）は、傘下の認可ファンドとなる「JIC Venture Growth Investments（以下「JIC VGI」）」の設立を決定し、本日、会社設立登記の申請を行いました。
JICは、オープンイノベーションによる企業の成長と競争力強化に対する資金供給を通じて民間投資を促進するとともに、投資人材の育成等を行い、我が国の次世代産業を支えるリスクマネーの好循環創出を目的に設立されました。JICは、傘下にファンドを組成し、そのファンドを通して政策的に意義のある事業分野への投資を行います。JIC VGIは、新経営陣の下での初めての認可ファンドであり、設立登記等の完了後、速やかに投資活動を開始することになります。
Tokyo, July 8, 2020 – Japan Investment Corporation (“JIC”) has announcedits decision to establish JIC Venture Growth Investments (“JIC VGI”), an authorizedfund under JIC’s umbrella, and today has filed an application to register thecompany.
JIC aims to generate a virtuous cycle ofrisk capital to support next-generation industries in Japan. To achieve this vision, JICpromotes open innovation as a means of supporting growth and enhancing the internationalcompetitiveness of Japanese businesses. JIC approaches these challenges bystimulating private sector investments in open innovation together with JIC’s owninvestment while fostering investment professionals. JIC will establish fundsunder its umbrella and through investments in these funds, JIC intends toinvest in strategic areas from the policy perspective. JIC VGI will be the first authorized fundunder JIC’s new management, and it will promptly begin investment activities onceregistration is complete.
Overview of JIC VGI:
１．Backgroundof JIC VGI’s establishment
Although Japan’s venture industry hasachieved significant growth in the last 10 years, the supply of risk capital inJapan remains low compared to other countries. There is also the gap of thenumber of startups launched each year and the number of unicorn companiesbetween Japan and other countries, which means that the further development of bothrisk capital provided and startup launched are essential in Japan. At the sametime, the advancing of innovation by the public and private sector workingtogether is expected to fulfill urgent needs to address accelerating changes inthe competitive environment surrounding Japanese industry, as well as theissues stemming from structural changes in industry and society.
２．JIC VGI’s mission
JIC VGI’s mission is to strengthen Japan’sinternational competitiveness by driving innovation and to help address theindustrial and social issues facing the country. In order to achieve itsmission, JIC VGI has five objectives:
I. Strengthen industrial competitiveness through ample riskcapital supply to growth-stage startups based on the industrial policy and collaborationwith private businesses.
II. Help resolve social and industrial issues throughaccelerating innovation which is created by discovering and supporting newtechnologies and new businesses driving industrial transformation.
III. Driveopen innovation beyond the boundaries of existing industrial sectors,aiming to encourage social implementation of innovation and contribute to thedevelopment of a domestic innovation ecosystem.
IV. Focuson deal sourcing, hands-on approach and value-up activities includingindustrial collaboration, leveraging the networks and catalytic functions uniqueto a public and private industry fund, to maximize investment returns.
V. Throughthe above activities, identify and develop investment talent and contribute to establishinga base for deep and diverse risk capital supply in Japan
３．Outline of JIC VGI
（１）Size of fund
JIC agrees to invest JPY 120 billion as anLP for the fund established as JIC VGI (JIC Venture Growth Fund No.1 InvestmentLimited Partnership (“VGF1”)).
（２）Overview of VGF1
・Unlimitedliability partner (GP):
JIC Venture Growth Investments (“VGI”)
・Limited liability partners (LP)：
Japan Investment Corporation (“JIC”)
VGFI Officer and Employee Investment Limited Partnership (“VGF1 OEILP”)
*JIC Venture Growth Investments (JIC VGI) is a collective term for VGF1, VGI,and VGF1 OEILP.
（３）Period of operation and investment horizon
In principle, JIC VGI will operate for 12years, and the investment period will be five years after its establishment.
（４）Investment areas
JIC VGI identifies industrial areas wherethe supply of risk capital for growth-stage startups is insufficient anddetermine its targeted areas in order to create new industries in Japan.Priority investment areas are:
1. Telecommunications
2. Finance (FinTech, security technology, etc.)
3. Transportation and retail
4. Manufacturing industries
5. Service industries
6. Education, medical, and welfare services (nursing care, childcare, etc.)
7. Healthcare (ICT healthcare (hardware/software), testing equipment, etc.)
8. Health and medical industries (drug discovery, medical equipment, etc.)
9. Education (childcare/EdTech)
10. Construction and utilities
11. Materials chemistry
12. Primary industries (agriculture, food, etc.)
13. New industries (space, quantum, deep tech, etc.)
14. Other areas that contribute to strengthening Japanese industrialcompetitiveness
15. Other areas that contribute to addressing social issues in Japan
4．JIC VGI’smanagement structure
VGF1 isoperated by VGI, which is the GP.
■ Company name: JIC Venture Growth Investments
■ Shareholder: JIC 100%
■ Established: July 8, 2020 (assuming completion of registration)
■ Business outline:
・Management of VGF1 (startup investment,large-enterprise joint investment, overseas investment, etc.)
・JIC collaborative activities (linkage topolicies, on-site collaboration with startups, etc.)
・Activities for building an innovationecosystem (cooperation with large companies, private VCs, etc.)
・Development of investment talent (Encouragingtalent mobility in portfolio companies and private companies is included.)
■ Presidentand CEO, Member of the Board HidekiYarimizu
■ CIO, Member of the Board TomohiroTange
■ Member of the Board ToshiyukiKumura (JIC Member of the Board)
■ Member of the Board TakuyaFukumoto (JIC Member of the Board)
■ Auditor Shinichi Shirayama
Profile: Hideki Yarimizu
1991: Graduated Waseda University (BA inlaw)
1991: Joined Mitsui Life Insurance CompanyLtd.
2000: Joined PwC Consulting LLC
2002: Joined Aozora Bank, Ltd.
2009: Joined INCJ, Ltd.
Profile: Tomohiro Tange
2005: Graduated University of SouthernCalifornia
2006: Joined Ernst & Young Transaction Advisory Services Co., Ltd.
2010: Joined INCJ, Ltd.
JIC aims to generate a virtuous cycle ofrisk capital to support next-generation industries in Japan, as well as promotes open innovationas a means of supporting growth, creating new industries and enhancing theinternational competitiveness of Japanese businesses. JIC has been preparingfor the establishment of a fund under its new management since last December.The foundation of JIC VGI will be the first big step for JIC. In addition toJIC VGI focusing on venture area, JIC will continue to prepare for theestablishment of authorized funds to promote business consolidation andoverseas investment.
(Reference) JIC's fund investment strategy
JIC invests in funds established under JIC’s initiative and in private sectorfunds. JIC VGI is established under JIC’s own initiative. JIC will continue toconsider investments based on its funds’ strategy and its principle ofcomplementing the private sector.
About Japan Investment Corporation (JIC)
Japan InvestmentCorporation (“JIC”) was established in September, 2018. Amid the accelerateduse of IoT, Big Data, AI, and other new information technologies globally, JICaims to address the growing demand for risk capital for long-term, large-scalegrowth investments with a governance structure conducive to quick and flexibleinvestment decision making.
Press Contacts
Japan Investment Corporation
Corporate Planning, Communications Group:
Tokyo Toranomon Global Square 9F,
1-3-1 Toranomon, Minato-ku, Tokyo 105-0001
