・Creatingopportunities for collaboration between domestic/overseas VC to create globalstartups
・Introducingglobal standards/practices to domestic market
・Appealing toforeign investors who can bring risk capital to the domestic market
Tokyo, January 31, 2023 – Japan Investment Corporation (“JIC”)has announced its decision to make an LP investment of USD50 million in NewEnterprise Associates 18, L.P. (“NEA18”) and USD50 million in NEA 18 VentureGrowth Equity, L.P. (“NEA18VGE”), for a total investment of USD100 million.NEA18 and NEA18VGE are managed by New Enterprise Associates (“NEA”) which is headquartered in the US andhas a long track record of investing in innovative companies at all stages.
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 NEA18 and NEA18VGE
(1) JICinvestment criteria
JIC’s investment criteria* identifies“Creating unicorn startups” as one of its focus areas. A long-term, largesupply of risk capital is required for the creation of unicorns—defined as privatelyheld companies with an enterprise value of $1 billion or more—which can grow business sustainably with competitive global economicstrength.
*https://www.j-ic.co.jp/en/investment/criteria/
(2) Current status of investment market
With the size of thedomestic market shrinking amid a declining birthrate and aging population, it hasbecome important to enter global markets to grow startups with the corporatevalue of unicorns or greater. Successful business expansion in the globalmarket can be facilitated by receivingsupport from VCs who make investments globally, based on the knowledge andexperience they have gained addressing regulations, business practices, andother issues that differ by country and region. To become a global unicorn, consistentVC support throughout the growth stages, including support for the developmentof multimarket business models, global standard capital policy/organizationalstructures and investment contract terms, and growth financing is helpful.
(3) About NEA18 and NEA18VGE
NEA, founded in the US in 1977, has funded more than 100 billion-dollar-plusbusinesses and is one of the largestglobal venture capital firms in terms of total assets under management. Throughoutmany years of fund management, NEA has focused on technology and healthcare, developinga competitive investment team, domain expertise and strong sector networks, andproviding consistent support as a lead investor from early stage to growthstage business development.
NEA18 has a strategy of early--stage investment, while NEA18VGEinvests in the later stages and beyond. NEA aims to offer companiesfull-lifecycle support in the technology and healthcare areas through NEA18 andNEA18VGE.
From its perspective as a global investor, in the currentinternational and economic environment NEA considers the Japanese startupmarket to have strong potential. "Go Global" is listed as one of the JIC’spriority investment areas, and the organization is committed to investing in overseasVCs to strengthen ties between domestic VCs/startups and overseas VCs.
JIC,through its investments in NEA18 and NEA18VGE, aims to create opportunities forcollaboration between NEA and domestic VCs, to learn from NEA's investmentexperience, and to introduce global standard practices to the domestic market.JIC hopes that these efforts will lead to increased interest in the Japanesemarket by other foreign investors.
Overview of NEA18
Name: NewEnterprise Associates 18, L.P.
Established: 2022
Duration: 12years (with a possible extension of 3 years)
GP: NEA Partners18, L.P.
Overview of NEA18VGE
Name: NEA 18 VentureGrowth Equity, L.P.
Established: 2022
Duration: 12years (with a possible extension of 3 years)
GP: NEA Partners 18 VGE, L.P.
Overview of management company
Name: New Enterprise Associates
Established: 1977
Address: US (California,Washington DC, New York, Maryland)
Representatives: ScottSandell、Tony Florence、Mohamad Makhzoumi
(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
