JIC publishes JIC Model Term Sheet

Tokyo, March 24, 2026 – Japan InvestmentCorporation (“JIC”) has released the “JIC Model Term Sheet,” a list of keyterms for venture capital (VC) funds.

JIC has been working topromote a virtuous cycle of risk capital. To achieve such a cycle, it isessential that sufficient funding be supplied to startups, particularly intheir growth stages, and that capital from large-scale institutional investors be expanded. These priorities havealso been emphasized in various recent government initiatives. As agovernment‑backed investment fund, JIC has been investing with the aim ofexpanding the number of VC firms that manage capital from institutionalinvestors. As part of this effort, JIC has organized what it considers to bethe key terms commonly required by institutional investors in limited partnership agreements (LPAs), and compiled theminto the “JIC Model Term Sheet.”

This Model Term Sheetfollows the “Investment Guidelines” published by JIC in March 2025. Whilereflecting the fundamental investment principles set out in those guidelines,it focuses more specifically on contractual terms from the perspective ofattracting capital from institutional investors—both domestic andinternational—who invest on a purely commercial basis.  The purpose of this document is to clarify theprinciples that JIC considers essential for ensuring sound governance andachieving appropriate alignment of interests between the General Partner (GP)and Limited Partners (LPs).

Investment inJapanese VC funds by domestic and overseas institutional investors remainslimited. As a result, some LPAs contain contractual terms and conditions thatmay not be entirely favorable to LPs whose sole purpose is pure investment.

JIC believes that publication ofthis Model Term Sheet will help expand institutional investor commitments todomestic VC funds,and ultimately contribute to the sustainable development of Japan's startupecosystem.

Please note that the Model Term Sheet may berevised or updated without prior notice to reflect actual practices, etc.When reviewing the content, please refer to the latest version available onJIC’s website.

(Attachment) “JIC Model Term Sheet”

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About Japan Investment Corporation (JIC)

Japan InvestmentCorporation (“JIC”) was established in September 2018 under the IndustrialCompetitiveness Enhancement Act. JIC’s investment focus areas are creating avirtuous cycle of domestic investment and innovation; creating and fosteringstartups; leveraging promising untapped management resources lying dormant inlocal areas, including startups from academia and medium-sized companies; andpromoting business restructuring in response to changes in market and businessenvironments. JIC provides risk capital to these areas through fundsindependently established by JIC and LP investment in private funds to promoteopen innovation in Japan, strengthen the competitiveness of Japanese industries,and contribute to expansion of Japan’s investment ecosystem.