JIC makes LP investment in KUSABI No.1 Investment Limited Partnership

・Providing riskcapital for startups in the pre-seed/seed stage to create unicorns

・Promoting thecreation of new businesses for Society 5.0

・Promoting risk capitalprocurement from institutional investors

 

 

Tokyo, December 15, 2022 – Japan Investment Corporation (“JIC”)has announced its decision to make an LP investment of JPY2.6 billion yen in  KUSABI No.1 Investment Limited Partnership (“KSB1”)managed by Wedge Inc..

 

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 for 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 KSB1

（１）  JICinvestment criteria

JIC’s investment criteria* identifies“Driving the creation of new businesses for Society 5.0” and “Creating unicornstartups” as focus areas. JIC provides support to business sectors involved inthe creation of new businesses characterized by discontinuous growth with high uncertaintyfrom a business perspective and which require a long-term, large-scale supplyof risk capital.

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

 

（２）  Current status of investment area

In recent years, the supply of risk capital for pre-seed/seedstage startups in the domestic market has been limited.Accelerating the creation of unicorns in Japan requires both active supportof entrepreneurs who are trying to create new businesses and increasing thenumber of promising startups that have the potential to become unicorns. In Japan, research and development that leads todiscontinuous innovation toward the realization of Society 5.0 is inadequate – a situation that has beenattributed to insufficientcollaboration with external organizations and institutions, such as start-ups,and the need for long-term, large-scale funding.

 

（３）   About KSB1　　

KSB1 is the first fund managed by Wedge. Its purpose is to create 1trillion yen companies through vertically integrated support from thepre-seed/seed stage, including sourcing through a unique acceleration program.

　　　　　　　　

KSB1 views companies that seek to resolve industrial issues through theapplication of innovative technology as promising investment targets, andintends to invest in startups that effectively integrate the cyber and physicaldomains through digital technology.

 

JIC believes that its LP investment in KSB1 willstrengthen investment activities in pre-seed/seed stage startups, allow thestartup ecosystem to accelerate the creation of unicorns from Japan, andcontribute to the creation of new businesses for Society 5.0.

 

In addition, JIC will support KSB1 in developing its ability to respond tothe needs of institutional investors in order to increase the supply of risk capitalraised from institutional investors.

 

Overview of KSB1

Name:                               KUSABI No.1 Investment LimitedPartnership

Established:                      2021

Duration:                           10 years (with a possibleextension of 2 years)

GP:                                     KUSABI Limited Liability Partnership

 

Overview of management company

Name:                               Wedge Inc.

Established:                      2020

Address:                            Chuo-ku, Tokyo

Representative:   　　　   Kenko Nagai, JunyaYoshida, Yuki Watanabe

 

 

(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.

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