JIC makes LP investment in AN Venture Partners I, LP

・Creating global startups from Japan

・Promoting openinnovation in the life science field

・Strengtheningthe startup ecosystem in the life science filed

 

 

Tokyo, December 4, 2023 – Japan Investment Corporation (“JIC”)has announced its decision to make an LP investment of USD30 million at theinitial closing in AN Venture Partners I, LP (“ANV1”) managed by ANVManagement, LLC, which invests primarily in the life sciences.

 

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 ofbusinesses. JIC approaches

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 ANV1

 

(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—including AI,IoT and robotics but also biotechnology, drug discovery, healthcare, mobility, space,materials, electronic devices and other areas that might become internationally competitive—requiresa long-term and large-scale supply of risk capital.

 

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

 

(2)  Current status of investment market

To create discontinuous innovation for therealization of Society 5.0, it is critically important to support startups inlife science fields such as biotechnology and drug discovery, which require a long-termand large-scale supply of capital from the research and development stage throughto market launch. Although promising basic research and technologies in these fieldscan be found in Japan, there is insufficient private investment capital forstartups to commercialize research results and technologies, and the ecosystemsupporting startups is comparatively immature relative to those in Europe andthe United States. In addition, since realization of Society 5.0 is contingentupon the creation of new businesses that can contribute to solving socialissues, domestic companies are expected to break away from the self-sufficiencyapproach to R&D and business development, leading to open innovation thattranscends industries and organizations.

 

(3)  About ANV1　　　

ANV, which manages ANV1, was established in 2022 by Japanese and U.S. VCs withextensive experience investing in the life science field to create globalstartups in that area. ANV1 will invest in all stages, focusing on pre-seed,seed and early-stage startups in the biotech and biotech-related fields.

ANV plans to establish global startups by co-investing with the world's topVC firms and hiring top-level global executives for promising research atuniversities, research institutions, and business companies in Japan, and todevelop products through business development in Japan and collaboration withJapanese companies.

ANV, in alliance with ARCH Venture Partners, a U.S. firm with over 30 yearsof investment experience in the life science field, will leverage the U.S.biotech ecosystem and ample capital markets to promote efficient socialimplementation of Japanese science and technology seeds, while aiming to belisted on domestic and foreign stock markets and to conduct M&A with globalcompanies both in Japan and overseas.

JIC expects that the LP investment in ANV1 will lead to the creation ofglobal startups in the life science field originating in Japan and thestrengthening of the domestic startup ecosystem in the life science field. JICalso expects to promote open innovation in the life science field in Japan byintroducing to the domestic market the knowledge, know-how, and practices ofthe U.S. life science ecosystem, and by promoting collaboration betweenJapanese universities, research institutions, and business companies and thestartups in which JIC has invested. JIC also expects that this will lead to thepromotion of open innovation in the life science field in Japan.

In addition, JIC will support ANV1 in developing its ability to respond tothe needs of institutional investors to increase the supply of risk capitalraised from these investors as well as offer risk capital.

 

Overview of ANV1

Name:                               ANVenture Partners I, LP　　
Established:                      2023

Duration:                           10years (with a possible extension of 2 years)

GP:                                     ANV GP I, LP

 

Overview of management company

Name:                               ANVManagement, LLC
Established:                      2022
Address:                            Tokyo,The United States (San Francisco, Seattle)Representative:   Ken Horne

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(For reference)

JIC’s fund investment strategy

(For reference)

Objectives of JIC’s LPinvestments

 

1. Stimulate the supply of risk capital to help companiesgrow 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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