JIC makes LP investment in MIYAKO Kyoto University Innovation III L.P.

・Supplying risk capitalto deep tech startups from academia

・Utilizingpromising technologies lying dormant in local areas

・Attracting more fundingfrom institutional investors

 

 

Tokyo, August 4, 2023 – Japan Investment Corporation (“JIC”)has announced its decision to

make an LP investment of JPY2 billion in MIYAKOKyoto University Innovation III L.P. (“Miyako III”),which is managed by MIYAKO CAPITAL CO. LTD (“Miyako”), a company that supportsstartups originating from academia.

 

JIC aims to stimulate a virtuous cycle ofrisk capital to support next-generation industries in Japan. To achieve thisvision, JIC promotes open innovation as a means for supporting growth andenhancing the international competitiveness of businesses. JIC approaches thesechallenges by stimulating private sector investments in open innovationtogether with JIC’s own investment, while fostering investment professionals.

To achieve its mission, JIC invests inpolicy-relevant strategic business areas through LP investments in funds underJIC’s umbrella and in private funds.

 

 

About LP investment in Miyako III

 

(1) JIC investment criteria

JIC investment criteria* identifies “Driving thecreation of new businesses for Society 5.0” and “Utilizing promising technologies lying dormant inlocal areas” as key focus areas. Specifically, JIC believes that it isnecessary to provide long-term, large-scale risk capital for socialimplementation of technologies related to the Fourth Industrial Revolution,such as AI, IoT, and robotics, as well as business fields that can be globallycompetitive, such as biotechnology, drug discovery, healthcare, mobility,space, materials, and electronic devices. There is also a need to provide risk capitalto meet the funding needs of startups from regional academia, etc., that havetechnologies that can be expected to generate high profits through commercializationbut which have not been given sufficient opportunities to grow as businesses.

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

 

(2) Current status of investment market

When supporting startups working on deeptech, it is necessary to support the creation of academia-based startups that seekto commercialize the results of scientific research and innovative technologydevelopment being conducted at universities. However, the supply of risk capitalfor academia-based startups in Japan remains limited despite the establishmentin recent years of funds that support industry-academia collaboration.

 

(3) About Miyako III

 

Miyako is a collaboration fund with KyotoUniversity, and has a strong track record of supporting deep tech startups inthe fields of life sciences and medicine, IT and electronics, and theenvironment and energy. Miyako III will maintain this investment strategy. Itwill focus on supporting seed- and early-stage startups, with a particularfocus on technologies developed by academia.

Miyako is strengthening its ties withuniversities in Japan and overseas, including Kyoto University, and is activelyworking to uncover technological seeds that are lying dormant in local areas. MiyakoIII also plans to invest in promising university startups, including those fromlocal universities, by utilizing the collaborative relationships that Miyako maintainswith universities and research institutions.

Through its LP investment in Miyako III,JIC aims to provide risk capital to startups originating in academia and to actas a catalyst for private investment funds. JIC anticipates that by providingrisk capital to technology startups in the Kyoto region and beyond, it cancontribute to the development and growth of the local startup ecosystem.

In addition, JIC expects to expand fundingfrom institutional investors by providing support to Miyako, such as by establishingan operation system in respond to the needs of institutional investors.

 

 

Overview ofMiyako III

Name:                                MIYAKO Kyoto University Innovation IIIL.P.

Established:                      2023

Duration:                           10 years (with apossible extension of 3 years)

GP:                                     MIYAKO CM3 Limited Liability Partnership

 

Overview ofmanagement company

Name:                               MIYAKO CAPITAL CO. LTD

Established:                      2013

Address:                            Kyoto City, KyotoPrefecture

Representative:                President and Representative Director HiroakiOkahashi

 

 

(For reference)

JIC’s fund investment strategy

(For reference)

Objectives of JIC’s LP investments

 

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 "unicornstartups", leveraging promising untapped regional technologies andpromoting business consolidation across industries and organizations. JIC providesrisk capital to these areas through funds independently established by JIC andLP investment in private funds to promote open innovation and contribute tostrengthening the competitiveness of Japanese industries and expanding theinvestment ecosystem.

‍