Tokyo, December 18, 2023 – Japan Investment Corporation (“JIC”)has announced its decision to make an LP investment of JPY2 billion in DBC No.1Investment Limited Partnership (“DBC1”), which is managed by Dual Bridge Capital (“DBC”), a company thatsupports pre-seed/seed stage startups.
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 sectorinvestments in open innovation together with JIC’s own investment, whilefostering investment professionals.
To achieve its mission, JIC invests in policy-relevant strategic businessareas through LP investments in funds under JIC’s umbrella and in privatefunds.
AboutLP investment in DBC1
(1) JIC investment criteria
JIC’s investment criteria* list “Creating unicorn startups” and “Drivingthe creation of new businesses for Society 5.0” as focus areas. A long-term, large-scale supply of risk capital is required forthe creation of unicorns—defined as privately held companies with an enterprisevalue of USD1 billion or more—that can grow their business sustainably withcompetitive global economic strength.
*https://www.j-ic.co.jp/en/investment/criteria/
(2) Current status of investment market
To accelerate the creation of unicorns from Japan,actively supporting entrepreneurs who are trying to create new businesses andincrease the number of promising startups that have the potential to grow intounicorns in the future is critically important, but the supply of risk capitalfor pre-seed/seed stage startups in the domestic market remains limited.
(3) About DBC1
As DBC's first fund, DBC1 will focus on investments atthe pre-seed/seed stage, leveraging the unique network cultivated by itsmanagement team, which has a track record of investment and support for startupsat these stages. Midas Capital, an affiliate of DBC, has a vision of “creatinga world-class group of companies” and invests in unlisted startups and otherbusinesses. DBC will be able to use thehuman network of the companies in Midas Capital’s portfolio for its sourcing. Inaddition, DBC has a policy of investing in areas where market changes areoccurring due to technological innovation, and in startups and other businessesin existing industries that are using new technologies and business models suchas AI as a competitive advantage.
JIC expects the LP investment in DBC1 to lead to thecreation of new businesses and new industries for Society 5.0. JIC also expectsthat strengthening investment activities in pre-seed/seed stage startups willincrease the number of unicorn candidates, bolstering the startup ecosystem inJapan. In addition, JIC will support DBC1 in developing its ability to respondto the needs of institutional investors to increase the supply of risk capitalraised from these investors as well as offer risk capital.
Overview of DBC1
Name: DBCNo.1 Investment Limited Partnership
Established: 2023
Duration: 10 years (with a possible extension of 2 years)
GP: MVLimited Liability Partnership
Overview of management company
Name: DualBridge Capital
Established: 2022
Address: Tokyo
Representatives: Shun Ito, ShusukeTerada
(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
