・Utilizing promising technology seeds in academia
・Driving thecreation of new businesses in deep tech for Society 5.0
・Promoting riskcapital procurement from institutional investors
Tokyo, October 31, 2023 – Japan Investment Corporation (“JIC”)has announced its decision to make an LP investment of JPY3 billion in KII3,LPS (“KII3”) managed by Keio Innovation Initiative, Inc. (“KII”).
JIC aims to stimulate a virtuous cycle of risk capital to supportnext-generation industries in
Japan. To achieve this vision, JIC promotes open innovation as a means forsupporting
growth and enhancing the international competitiveness of businesses. JICapproaches
these challenges by stimulating private sector investments in openinnovation together with JIC’s own investment, while fostering investmentprofessionals.
To achieve its mission, JIC invests in policy-relevant strategic businessareas through LP investments in funds under JIC’s umbrella and in privatefunds.
About LP investment in KII3
(1) JIC investment criteria
JIC’s investment criteria* identifies“Driving the creation of new businesses for Society 5.0” as one of its focus areas. Thesocial implementation of Fourth Industrial Revolution technologies— such as AI, IoTand robotics, as well as biotechnology, drug discovery, healthcare, mobility, space,materials, electronic devices and other areas that might become internationally competitive—needa long-term and large-scale supply of risk capital.
*https://www.j-ic.co.jp/en/investment/criteria/
(2) Current status of investment market
In supporting startups engaged in deep tech,it is necessary to support the creation of startups originating from academiathat aim to commercialize the results of scientific research and innovativetechnology development at universities and other institutions. Although thishas been driving the establishment of funds supporting industry-academiacollaboration, the supply of risk capital to startups from academia in Japanremains limited.
(3) About KII3
KII is Keio University’s venture capital, and since launching its firstfund it has consistently supported deep tech startups from academia in the medical/healtharena, including healthcare and drug discovery, and in digital technology,including AI, robotics, space, and clean tech. KII has one of the strongest trackrecords in Japan for deep tech. KII3 also has a policy of focusing onsupporting deep tech startups from academia, mainly in the seed/early stages.KII3 plans to make impact investments by establishing an investment andmonitoring system for startups aimed at addressing social issue.
JIC expects that the LP investment in KII3 will lead to enhanced follow-oninvestment that will promote further growth, not only through the discovery andcommercialization of promising technology seeds originating from academia incollaboration with universities and research institutions, but also by meetingthe demand for funds for business expansion, including mass production andoverseas expansion. It is also expected to provide growth opportunities fordomestic deep tech startups that utilize technology seeds originating fromacademia, which tend to lack private investment funds, and lead to the creationof new businesses in deep tech for Society 5.0. JIC will support KII3 indeveloping its ability to respond to the needs of institutional investors toincrease the supply of risk capital raised from these investors as well asoffer risk capital.
Overview of KII3
Name: KII3,LPS
Established: 2023
Duration: 10years (with a possible extension of 2 years)
GP: Keio Innovation Initiative3, LLP
Overview of management company
Name: Keio Innovation Initiative, Inc.
Established: 2015
Address: Minato-ku,Tokyo
Representative: Kotaro Yamagishi
(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
