Press Release
December 21, 2020
DCI Partners Co., Ltd.
Daiwa Corporate Investment Co., Ltd.

Establishment ofDaiwa Taiwan-Japan BioVenture Investment Limited Partnership II
DCI Partners Co., Ltd. (“DCIP”), a group company of Daiwa Securities Group, Inc. and wholly owned by
Daiwa Corporate Investment Co., Ltd.(“DCI”), hereby announces the first closing of Daiwa Taiwan-Japan
BioVenture Investment Limited Partnership II (total capital commitment of JPY 14 billion, the "Fund") withthe participation of the Organization for Small & Medium Enterprises and Regional Innovation, JAPAN ("SMESupport, JAPAN"), National Development Fund, Executive Yuan ("NDF"), a Taiwanese government fund, andother investors. Total Fund’s commitment size may be increased to around JPY 15 billion at the subsequentclosings.
1.

Overview

The Fund is a venture capital fund that will invest in privately-held biotech companies centered on thetherapeutic field in Japan and Taiwan. It will be managed as a subsequent fund of Daiwa Taiwan-Japan Biotech
Fund Investment Limited Partnership (“Fund I”) which was established with JPY 11.6 billion in 2015
specialized in the life science field.
From the perspective of responding to the pandemic in speed and technical capabilities, at the time when newcoronavirus is rampant, biotech companies have attracted more attention than ever and people's expectations
for their social significance and role are also increasing. In the last few years, public research expenses suchas subsidies and financial support from government funds have begun to be in place that continuously lowering
the hurdles for initiating research and development, however the supply of risk money at the stage of further
development and commercialization, where the demand for funds is increasing, is yet to be sufficient, and thegrowth of venture companies continues to be difficult due to financial constraints.
Under these circumstances, with strong support from SME Support, JAPAN, NDF and other investors,
thankfully DCIP has formed this Fund with amount that exceeds Fund I, which was Japan's largest fundspecialized in biotech investment.
By utilizing the know-how and financial strength that DCIP has accumulated so far, DCIP will continue tosupply risk money to biotech companies in Japan and Taiwan through this Fund, strive to promote the researchand development of investee companies and increase their corporate value, and pursue investment returns.

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Investment Climate and Features of the Fund

Investment Climate in Japan
Under its Healthcare Policy and Japan Revitalization Strategy, the Japanese government is firmly promoting
the development of the healthcare industry. To achieve “realization of an ultra-smart society”, the formationof a healthy and long-lived society by realizing the world's most advanced medical technology is cited as animportant issue. Recently, new bio-strategy has been drawn up for the first time in 10 years, along with thedevelopment of regulatory aspects surrounding drug development environment centered on regenerative
medicine, various types of support are being provided.
In therapeutics, the number of license-out cases is on the rise as pharmaceutical companies shift thedevelopment body from self-reliance to biotech companies. Successful cases of launching products developedby biotech companies in new fields such as regenerative medicine and biologics, also the number of appearanceof pipeline nearing commercialization has been steadily accumulated. The alliance between pharmaceuticalcompanies and biotech companies is becoming more active, and further license-out deals by biotech companies
and exits through IPOs and M&As are expected in the future.

Investment Climate in Taiwan
The Taiwanese government has positioned the biotechnology industry as one of the Six Emerging Industries
and is firmly moving forward with its development. Taiwan boasts an excellent drug development platform
and has a geographical advantage as a clinical development hub in Asia.
In Taiwan biotech space, in addition to traditional manufacturers of active pharmaceutical ingredients,
generic drugs and medical devices, a large number of startups conducting new drug developments are emerging
in recent years. This movement provides significant investment opportunities for the Fund.
Along with the number of listed biotech companies in Taiwan has increased year after year, M&A deals withscale over several hundreds of million USD occurred since 2017. With the booming market and theestablishment of environment in which exits through M&A could be expected, further growth and developmentof Taiwan biotech companies can be expected in the future.

Features of the Fund
In addition to investing in biotech companies that have already been started, the Fund will continue to adopt
the "venture creation model" that promotes business under the initiative of the fund by utilizing humanresources, know-how, and the financial strength of the Fund. In venture creation model, the Fund takes aninitiative in drug development business including setting up new companies, in-licensing seeds, hiring talents

Press Releaseand executing R&D.
Aside from supplying risk money, DCIP will also collaborate with experienced external experts who haveknowledge of drug development, licensing strategy, regulatory affairs strategy, business development, etc., andthrough collaboration with universities, research institutes, biotech companies, pharmaceutical companies, etc. ,DCIP will actively provide hands-on support to investee companies to improve the corporate value of investee
companies.
DCIP believes that by actively promoting alliances between Japan and Taiwan companies through this Fund,various forms of support will be provided to biotech companies that require global business development.
DCIP will make efforts and hopes that the Fund's investment activities will contribute to the furtherdevelopment of the healthcare and pharmaceutical industries in Japan and Taiwan, and to the health and societyof all people.

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Fund Scheme

Overview of the Fund
Name
Date of Establishment
Total Committed Capital
General Partner (GP)Operation Period
Investment Period
Overview of DCI Partners
Name
Date of Establishment
CapitalHead Office
Shareholder
President and Representative
Director

Daiwa Taiwan-Japan BioVenture Investment Limited
Partnership II
December 15, 2020
JPY14 billion
DCI Partners Co., Ltd.
10 years
5 years

DCI Partners Co., Ltd.
May 20, 2014
JPY 50 million
1-9-1 Marunouchi, Chiyoda-ku, Tokyo
Daiwa Corporate Investment Co., Ltd. (100%)
Hiroki Narita