JIC makes LP investment in BEE ACCELERATE FUND2 LP

・  Promoting open innovation between Japanesecompanies and startups in India and Southeast Asia

・   Developingfund managers in India and Southeast Asia with a “Japan angle” strategy

・   Drivingthe creation of new businesses for Society 5.0

Tokyo, June 28, 2024 – Japan Investment Corporation (“JIC”)has announced its decision to make an LP investment of USD30 million in BEEACCELERATE FUND2 LP (“BAF2”), which is managed by BEENEXT Capital ManagementPte. Ltd. (“BEENEXT”), a fund that invests in acceleration-stage companies in awide range of technology sectors, including growth-stage fintech, e-commerce,and marketplaces, primarily in India and Southeast Asia.

JIC aims to stimulate a virtuous cycle of risk capital to supportnext-generation industries in Japan. To achieve this vision, JIC promotes openinnovation as a means for supporting growth and enhancing the internationalcompetitiveness of businesses. JIC approaches these challenges by stimulatingprivate sector investments in open innovation together with JIC’s owninvestment, while fostering investment professionals.

To achieve itsmission, JIC invests in policy-relevant strategic business areas through LPinvestments in funds under JIC’s umbrella and in private funds.

About LP investment in BAF2

(1) JIC investment criteria

JIC’s investment criteria* identifies “Drivingthe creation of new businesses for Society 5.0” as one of its focus areas. Specifically, JICbelieves that it is necessary to provide long-term, large-scale risk capital for social implementationof technologies related to the Fourth Industrial Revolution, such as AI, IoT,and robotics, as well as business fields that can be globally competitive, suchas biotechnology, drug discovery, healthcare, mobility, space, materials, andelectronic devices.

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

(2) Current status of investment market

The creation ofnew businesses for Society 5.0 requires agile response to rapid changes inindustrial structure and international competitive conditions against thebackdrop of the Fourth Industrial Revolution and other factors, and thedevelopment of businesses that can contribute to resolving social issues. To addressthis challenge, Japanese companies are expected to move away from their verticaland self-focused approach to R&D and business development and activelyengage in open innovation that transcends industries and organizations.

To promote openinnovation among domestic companies, it can be effective for venture capitalfirms with a “Japan angle” strategy that supports collaboration betweenJapanese companies and promising overseas startups with cutting-edgetechnologies and new business models to function as a bridge between the two. However, only a limitednumber of influential fund managers that invest in startups in the growingmarkets of India and Southeast Asia currently adopt this “Japan angle”as their strategy.

(3) About BAF2

BAF2 invests instartups in a wide range of technology sectors, including fintech, e-commerce,and marketplaces, primarily in India and Southeast Asia.

BEENEXT, theinvestment manager of BAF2, is actively involved in connecting promising portfoliostartups in India and Southeast Asia with Japanese companies to increase thevalue of its investments of its funds and provide LP support. Inaddition, through community building activities for entrepreneurs, LPs, etc.,it has a proven track record of expanding networks in India and Southeast Asiafor Japanese companies.

Throughits investment in BAF2, JIC will promote open innovation through businessalliances between Japanese companies and promising startups in India andSoutheast Asia with the expectation of contributing to the creation of newbusinesses and new industries.

BEENEXT,as an investment management company for funds investing mainly in startups inIndia and Southeast Asia, is one of the few fund managers with a “Japan Angle” strategy, which promotes collaboration between Japanese companies andpromising startups in India and Southeast Asia that have cutting-edgetechnologies and new business models, supports Japanese companies in theirentry and expansion into the Indian and Southeast Asian markets, and supports the introduction of new technologies and business models into the Japanese market. JIC expects thatits LP investment in BAF2 will enhance BEENEXT’s presence, lead to increasedinvestment in its funds by Japanese companies, and eventually result in growthin the number of fund managers with strategies similar to that of BEENEXT.

Overview of BAF2

Name:                             BEE ACCELERATEFUND2 LP

Established:                    2022

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

GP:                                  BEE ACCELERATE FUND2 GP

Overview of BEENEXT

Name:                             BEENEXT Capital Management Pte. Ltd.

Established:                    2016

Address:                         Singapore  

Representative& CEO:   Teruhide Sato

(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. JICprovides risk capital to these areas through funds independently established byJIC and LP investment in private funds to promote open innovation andcontribute to strengthening the competitiveness of Japanese industries andexpanding the investment ecosystem.