・Driving thecreation of new businesses in the field of deep tech for Society 5.0
・Promoting openinnovation transcending the boundaries of traditional industries and organizations
・Promoting riskcapital procurement from institutional investors
Tokyo, December 9, 2022 – Japan Investment Corporation (“JIC”)has announced its decision to make an LP investment of JPY3 billion yen in the SpiralCapital Japan Fund II (“SCJ2”) managed by Spiral Capital.
JIC aims to stimulate 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 businesses. JIC approaches these challenges by stimulating privatesector investments in open innovation together with JIC’s own investment, whilefostering investment professionals.
About LP investment in SCJ2
（１） JIC investment criteria
JIC’s investment criteria* identifies “Driving the creationof new businesses for Society 5.0” as a focus area. JIC provides support tobusiness sectors involved in the creation of new businesses characterized bydiscontinuous growth with high uncertainty from a business perspective and whichrequire a long-term, large-scale supply of risk capital.
※https://www.j-ic.co.jp/en/investment/criteria/
（２） Currentstatus of investment area
With regard to driving the creation of new businesses for Society 5.0,Japan faces the challenges of limited R&D in support of discontinuousinnovation and a lack of collaboration among external organizations and institutions,including startups. Creating new businesses and industries for Society 5.0requires supporting deep tech startups with the potential to have a significantimpact on solving social issues based on discontinuous innovation, and these areasrequire long-term,large-scale funding from research and development throughto social implementation. In addition, open innovation that transcends theboundaries of traditional industries and organizations is needed to respondquickly to rapid changes in industrial structures and international competitiveconditions, and to create businesses that contribute to solving social issues.
（３） About SCJ2
SCJ2 is aninvestment fund managed by Spiral Capital, which has an extensive network withdomestic companies.
Spiral Capitalhas a policy of investing in the fintech, healthcare, and smart infrastructuresectors as well as in the deep tech sector, with the aim of creating unicorns. SpiralCapital plans to allocate approximately 20-30% of SCJ2 investment activity tothe deep tech sector.
The company hasa proven track record of forming capital and business alliances between itsportfolio companies and domestic companies through the use of its proprietarydatabase and by holding matching events to promote collaboration betweenstartups and domestic companies. JIC expects the LP investment in SCJ2 to promoteopen innovation. In the deep tech sector, where the company is focusing itsactivity, capital and business alliances between startups and domesticcompanies are often significant, and SCJ2 is expected to serve as a bridgebetween startups and domestic companies.
In addition, JICwill support Spiral Capital in developing its ability to respond to the needsof institutional investors in order to increase the supply of risk capitalraised from these investors.
Overview of SCJ2
Name: Spiral Capital Japan Fund II
Established: 2019
Duration: 10 years (with a possibleextension of 3 years)
GP: Spiral Capital LLP
Overview of management company
Name: Spiral Capital
Established: 2017
Address: Minato-ku, Tokyo
Managing Partner: TomokazuOkuno
(For reference)
JIC’s fund investment strategy
(For reference)
Objectives of JIC’s LPinvestments
1. Stimulate the supply of risk capital to helpcompanies grow and to enhance their competitiveness
JIC intends to provide capital to areas that areessential from the perspective of strengthening industrial competitiveness butlack private investment capital (investment strategies, sectors, stages,regions, etc.) with the aim of stimulating private investment capital in theshort term and medium-long term.
2. Create diverse investment teams, professionals, andstrategies to support a virtuous cycle of risk capital
1) Investmentteams
JIC promotes growth of the investee fundsas a leader in the intermediary of risk capital provided by institutionalinvestors (pension funds, foreign investors, etc.) towards the establishment offuture funds. This will be achieved by expanding experience and track recordsamong its fund investment team (management company) and by further improvingits ability to respond to institutional investors.
2) Investmentprofessionals
With the cooperation of industryorganizations such as JVCA, institutional investors, and investee managers, JICsupports the research and introduction of best practices of managers and thedevelopment of human resources serving as investment professionals.
3) Investmentstrategy
JIC will add diversity and depth to themarket by making an LP investment in funds even for those with strategies thatare not common in Japan yet, in response to their fund raising, including atthe time of its establishment.
About Japan Investment Corporation (JIC)
Japan InvestmentCorporation (“JIC”) was established on September 25, 2018 under the IndustrialCompetitiveness Enhancement Act. JIC’s investment focus areas are driving thecreation of new businesses for Society 5.0, creating "unicorn startups",leveraging promising untapped regional technologies and promoting businessconsolidation across industries and organizations. JIC provides risk capital tothese areas through funds independently established by JIC and LP investment inprivate funds to promote open innovation and contribute to strengthening thecompetitiveness of Japanese industries and expanding the investment ecosystem.
Press Contacts
Japan Investment Corporation
Corporate Planning, Communications Group:
Tokyo Toranomon Global Square 9F,
1-3-1 Toranomon, Minato-ku, Tokyo 105-0001
