JIC makes LP investment in GLOBIS 7th FUND

・Promoting the creation of global unicorn startups from Japan
・Creating a role model for domestic VC to create global unicorn startups
・Promoting new business creation in the field of deep tech in order to achieve Society 5.0
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Tokyo, July 5, 2022 – Japan Investment Corporation (“JIC”) has announced its decision to make an LP investment in GLOBIS 7th FUND (“GCP7”), a fund managed by GLOBIS CAPITAL PARTNERS & Co.
*GLOBIS 7th FUND Investment Limited Partnership and GLOBIS 7th S FUND Investment Limited Partnership

JIC aims to stimulate a virtuous cycle of risk capital to support next-generation industries in Japan. To achieve this vision, JIC promotes open innovation as a means of supporting growth and enhancing the international competitiveness of businesses. JIC approaches these challenges by stimulating private sector investments in open innovation together with JIC’s own investment, while fostering investment professionals.

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About LP investment in GCP7
JIC makes LP investments in private funds based on its investment strategies, and has signed an LP investment agreement committing to invest up to JPY8 billion in GCP7.
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1. Background
In JIC’s investment criteria*, “Creating unicorn startups” and “Driving the creation of new businesses for Society 5.0” are listed as its investment focus areas.

The "creation of unicorn startups" requires a long-term, large-scale supply of risk capital to unicorn startups, unlisted with an enterprise value of USD1 billion or more, which aims to grow competitively and sustainably in the global economy.
In driving the creation of new businesses for Society 5.0, it is necessary to provide long-term, large-scale risk capital in business areas that can be internationally competitive, such as social implementation of technologies related to the Fourth Industrial Revolution, including AI, IoT, and robotics.

* https://www.j-ic.co.jp/en/investment/criteria/

2. About GCP7
GCP7 is an investment fund established with GCP as the effective manager. The fund's investment strategy is aimed at producing leading Japanese startups that grow to enterprise values of several hundred billion to one trillion yen, with the goal of creating global unicorn startups originating from Japan. GCP7 selects investment themes with the potential to become global leaders and, as lead investor, supports the development of products, services, and business models with a view to expanding into overseas markets, adopting capital policies in line with global standards, and establishing organizational structures. In addition, GCP will follow-on invest growth capital in promising companies on a growth trajectory and provide consistent support from the early stage to the later stage, which will lead to obtaining support from overseas investors while also utilizing GCP's network with global VCs. GCP has a track record of investing in startups in the deep tech* as part of its portfolio, and plans to invest in startups in this area as part of GCP7's efforts to invest in themes that will trigger the creation of next-generation industries in Japan.

JIC hopes that the LP investment in GCP7 will result in the creation of a global unicorn startups from Japan, and that GCP will grow to become a role model for domestic VCs to create global unicorn startups. JIC also hopes that GCP will create globally competitive startups from Japan in the deep tech area to promote the creation of new businesses for Society 5.0.
*Deep tech: Solving significant issues with global impacts through scientific discoveries and innovative technologies

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Overview of GCP7
Name ：GLOBIS 7th FUND Investment Limited Partnership
              GLOBIS 7th S FUND Investment Limited Partnership
Established ：April 2022
Duration ：10 years (Extension of up to 2 years possible)
GP ：GLOBIS 7th FUND Limited Liability Partnership

Overview of management company
Name ：GLOBIS CAPITAL PARTNERS & Co.
Established ：January 2019
Location ：Chiyoda-ku, Tokyo
CEO ：Yoshito Hori

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(For reference)
JIC’s fund investment strategy
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(For reference)
Objectives of JIC’s LP investments

1. Stimulate the supply of risk capital to help companies grow and to enhance their competitiveness

JIC intends to provide capital to areas that are essential from the perspective of strengthening industrial competitiveness but lack private investment capital (investment strategies, sectors, stages, regions, etc.) with the aim of stimulating private investment capital in the short term and medium-long term.

2. Create diverse investment teams, professionals, and strategies to support a virtuous cycle of risk capital

1) Investment teams
JIC promotes growth of the investee funds as a leader in the intermediary of risk capital provided by institutional investors (pension funds, foreign investors, etc.) towards the establishment of future funds. This will be achieved by expanding experience and track records among its fund investment team (management company) and by further improving its ability to respond to institutional investors.

2) Investment professionals
With the cooperation of industry organizations such as JVCA, institutional investors, and investee managers, JIC supports the research and introduction of best practices of managers and the development of human resources serving as investment professionals.

3) Investment strategy
JIC will add diversity and depth to the market by making an LP investment in funds even for those with strategies that are not common in Japan yet, in response to their fund raising, including at the time of its establishment.

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About Japan Investment Corporation (JIC)
Japan Investment Corporation (“JIC”) was established on September 25, 2018 under the Industrial Competitiveness Enhancement Act. JIC’s investment focus areas are driving the creation of new businesses for Society 5.0, creating "unicorn startups", leveraging promising untapped regional technologies and promoting business consolidation across industries and organizations. JIC provides risk capital to these areas through funds independently established by JIC and LP investment in private funds to promote open innovation and contribute to strengthening the competitiveness of Japanese industries and expanding the investment ecosystem.