JIC Makes JPY 3.5bn LP Investment in Genesia Venture Fund IV
Japan Investment Corporation (JIC) has decided to make an LP investment of JPY3.5 billion in Genesia Venture Fund IV Investment Limited Partnership (“GV-4”), which is managed by Genesia Ventures.
JIC’s mission is to create a virtuous cycle of risk capital that supports the next generation of domestic industries by providing funds to help companies grow and strengthen their competitiveness through open innovation, promotion of private investment, and the development of investment professionals. To achieve its mission, JIC invests in policy-relevant strategic business areas through LP investments in funds under JIC’s umbrella and in private funds.
Current status of investment market
The creation of global unicorns—defined as privately held companies with an enterprise value of USD1 billion or more—requires long-term, large-scale risk capital investment in the seed and pre-seed stages in order to expand the pool of promising startups.
Moreover, in business sectors where Japanese companies can maintain their international competitiveness and in fields where demand is expected to grow both domestically and internationally over the medium to long term, Japanese companies are expected to leverage the cutting-edge digital technologies and business models of startups in Southeast Asia and India, where digital transformation (DX) is advancing, to create new businesses. Furthermore, it is anticipated that Japanese companies will be able to participate in local supply chains in Southeast Asia and India, where the digitalization of supply chains is progressing rapidly. As such, promoting open innovation and building partnerships with the promising local startups that will be leading the digitalization push from the early stages of their growth will be crucial to achieving these outcomes.
About GV-4
Genesia mainly invests in digital businesses and some deep tech companies, with more than 80 percent of its domestic investments made in the pre-seed/seed stage. Despite being a Japanese VC, it has established a solid position as a rare entity that supports business and capital alliances between investee startups in Southeast Asia and Japanese companies, as well as promoting collaboration between Japanese companies and local startups. It has also expanded into India.
Through GV-4, JIC will focus on pre-seed and seed stage investments, with the aim of strengthening Genesia’s investment activities and supporting the Japanese startup ecosystem’s capacity to create global unicorns. In Southeast Asia and India, JIC will strengthen its support for partnerships between Japanese companies and local startups, with the aim of helping Japanese companies create new businesses and expand into new markets.
In addition, JIC expects that by supporting promising startups that use digital technology to provide services that address challenges specific to domestic industries, it can promote DX in industry.
Furthermore, by providing fund management support to Genesia, JIC will seek to expand the supply of risk capital from institutional investors through the funds managed by the company over the medium to long term.
Norbert Gehrke
