JIC makes LP investment in Real Tech Fund 4 Investment Limited Partnership

Tokyo, January 16, 2025 – Japan Investment Corporation (“JIC”) hasannounced its decision to make an LP investment of JPY2 billion in Real Tech Fund 4 Investment Limited Partnership (“RTF4”)managed by UntroD Capital Japan, Inc. (“UntroD”), which invests in a wide range of deeptech fields.

JIC announced on December 4, 2024, that ithas decided to require the investees to establish a Code of Ethics and Conduct (8items) and Anti-Harassment Policy (10 items) in its role as a public-privatefund for strengthening governance and promoting DE&I in the startupecosystem and investment industry. The LP investment in RTF4 is the firstinvestment which fulfills these requirements since the announcement.

JIC’s mission is to create a virtuous cycle of risk capital that supportsthe next generation of domestic industries by providing funds to help companiesgrow and strengthen their competitiveness through open innovation, promotion ofprivate investment, and the development of investment professionals. To achieveits mission, JIC invests in policy-relevant strategic business areas through LPinvestments in funds under JIC’s umbrella and in private funds.

 

About LP investment in RTF4

(1) Current status of investment market

To create innovations that address new social issuesin the lead-up to Society 5.0, support for deep tech startups is extremelyimportant, but funding for deep tech startups in Japan remains limited becauseit can take a long time and a significant amount of capital to go from theresearch and development stage to commercialization. There is also a need toaddress the funding needs of startups from regional universities and otherorganizations that have technologies with the potential to generate highprofits through commercialization, but which are not being given sufficientopportunities to grow as businesses.

(2) About RTF4

Starting with itsfirst fund, UntroD has consistently promoted investments in Japan’s deep techfield, where risk capital is in short supply, including the energy, space,agriculture, medical care, electronics, and new materials sectors. In theprocess, it has attained one of the best investment track records in thecountry for this field. UntroD also offers hands-on support for the socialimplementation of new technologies, making use of experts in a variety offields including Leave a Nest, Co., Ltd. (“Leave a Nest”) which provides a deeptech acceleration program and support for science and technology development. Throughits LP investment in RTF4, JIC will provide risk capital to the deep tech fieldto stimulate the private funding, and support the creation of new businesses.

UntroD is also strengtheningits ties with universities and research institutions across the country, and isactively working to create startups that make use of promising technologicalseeds. Via RTF4, the company will continue to proactively develop startups thatutilize promising technologies lying dormant in local areas, leveraging thenetwork it has cultivated among universities and research institutes across thecountry and through its collaboration with Leave a Nest. As such, JIC expectsto contribute to the development and cultivation of a deep tech startupecosystem in local areas.  

Furthermore, through itsLP investment in RTF4, JIC will provide support on fund management, etc. and helpUntroD increase through its funds the supply of risk capital from institutionalinvestors over the medium to long term.

Overview of RTF4

Name:                              Real Tech Fund 4 Investment Limited Partnership

Established:                    2023

Duration:                         10.5 years (with a possibleextension of 3 years)

GP:                                   Real Tech Fund 4 Limited Liability Partnership

Overview of UntroD

Name:                               UntroD CapitalJapan, Inc.

Established:                     2022 (Company name changedfrom Real Tech Holdings Co., Ltd. in June 2024)

Address:                           Tokyo

CEO:                                 AkihikoNagata

 (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 Investment Corporation (“JIC”) was established on September 25, 2018under the Industrial Competitiveness Enhancement Act. JIC’s investment focusareas are driving the creation of a positive cycle of domestic investment andinnovation, creating and developing startups, leveraging untapped regionalmanagement resources of academic startups and leading medium enterprises andpromoting business consolidation in response to changes in market and businessenvironment. JIC provides risk capital to these areas through fundsindependently established by JIC and LP investment in private funds to promoteopen innovation and contribute to strengthening the competitiveness of Japaneseindustries and expanding the investment ecosystem.