IMPACTREPORT
2023

Contents
Introduction

Our FundInvestees

Special Features

Message from the President

Vision

InvesteesImpact Due DiligenceMessage from the Managing DirectorMission

Kakemichi Project

Entrepreneur Interviews



Theory of Change

MySherpa

Exit to CommunityImpact Classification

Light-Right

5 LESSONSHighlights



LTB



Notes from Our Editors



HistoryMinna no Mikata HD

Disclaimer

Overview



GOOD COFFEE FARMS



Team



IRIS



Investment Process and Decision Criteria



CoCooking

congrant

A’s Child

SHINMIRAI

BAOBAB



GAXI



RENNOVATER

vKiriromRapport Hair Group47PLANNING

Polaris

I SUN SUN GROUP

Impact Report 2023

Contents

2

Introduction

Believe in possibilities

Pioneering social impact investment

On March 14, 2011, amid aftershocks from the Great Tohoku Earthquake, about 100

Japan still faces a wide range of social challenges. Government budgets are limited, but thevolunteers gathered at the GLOBIS University Tokyo Campus. Working from what we knew

private sector can solve these challenges with creative ingenuity. Our generation has a

we could do, we set up a foundation, collected donations, and started supporting leaders in

responsibility to pass on a better Japan to the next generation.

the affected areas. This was the origin of KIBOW.
Impact entrepreneurs are the key. Through the KIBOW Social Investment Fund, we provide
Time passed. In 2015, an old acquaintance of mine, Sir Ronald Cohen, visited Japan. GLOBIS

in-depth support to leaders who put solving social problems at the heart of their core

had expanded its VC investment by launching the Apax GLOBIS Japan Fund in 1999 as abusiness. We believe in their potential.

joint venture with Apax Partners, which Sir Ronald had cofounded. He suggested that westart social impact investments to improve society. I immediately said “I'll do it.”
It was the moment when the venture investment know-how that GLOBIS had developed
over the years and the aspirations that we had received from entrepreneurs in the

Yoshito Hori
President
KIBOW Foundation

disaster-affected Tohoku region were connected in one respect: social impact investment.
KIBOW launched its first fund by investing my personal assets. Since then, it has been
funded by Kohei Terada of Warehouse TERRADA, GLOBIS, and Allen Minor Foundation.
KIBOW managed a third fund of ¥1 billion. Led by six investment professionals fromGLOBIS, KIBOW has invested in twenty-one companies to date with the help of its advisors’
expertise. As a pioneer of social impact investing in venture companies in Japan, we have
paved the way.

Impact Report 2023

Introduction

3

Introduction

Creating hope out of despair with entrepreneurs
Twelve years have passed since KIBOW was launched in the wake of the Great Tohoku

Japan is facing various social issues: a rapidly aging population, widespread mental

Earthquake. Our faith that entrepreneurs can create new hope and transform society

illness, and declining quality of life in rural areas, to name a few. As in other countries,

was born in the disaster-hit Tohoku region. That belief has now become a conviction.

relentless natural disasters aggravate those challenges.

KIBOW launched the KIBOW Social Investment Fund in 2015. As of 2023, we are

Nevertheless, we do have hope. It is the hope created by social entrepreneurs who

managing Fund No. 3 (¥1 billion) and have invested in a total of twenty-one startups.

tackle social issues and pioneer change. It is the hope that none of us needs to despair
about our future, regardless of social circumstance, personal health, or economic status.

This report provides an overview of the current social impact of KIBOW and our portfolio

Our impact investment aims to foster and spread such hope.

companies. Twice a year, we evaluate the social impact of each company and report backto the KIBOW Advisory Board. Due to the confidential nature of some of that

We look forward to receiving your feedback and discussing how we can foster more hope

information, we will not disclose all of our portfolio companies in this report, but rather

in the world with you.

provide an in-depth look at a few of them.
The fundʼs performance is strong in terms of financial returns. However, in terms of social
impact, it is an honest reflection that we are halfway there.

Impact Report 2023

Introduction

Reiji Yamanaka
Managing Director
KIBOW Impact Investment Fund

4

Our Fund

Investments
in possibilities

Theory of Change

We invest in entrepreneurs who solve social challenges
and create hope.

VisionTo be a leading fund that creates Japan-born best practices
for social impact investment

MissionTogether with entrepreneurs who tackle social challenges andgenerate hope, we create businesses and transform society.
We accelerate the creation and transformation of society
through the following three streams:

CapitalNew flows of capital through social impact investment

PeopleNew, diverse talent flows toward our investees
to stimulate growth

Knowledge
New knowledge flows that accumulate
and expand best practices

Impact Report 2023

Our Fund5

Impact Classiﬁcation
Our portfolio is categorized by ABC impact (avoid harm, benefit stakeholders, contribute to solutions) and investor contribution.
The KIBOW Social Investment Fund includes being actively involved in management as a lead investor,
providing flexible capital, and developing new or under-resourced capital markets.

Our Contribution as an Investor

Avoid harm

Benefit stakeholders

Contribute to solutions

1

Signal that impact matters

Ethical bond funds, etc.

Positively screened /best-in-class ESG funds, etc.

Sovereign-backed bonds (secondary
markets) funding vaccine delivery tounderserved communities, renewableenergy projects, etc.

2

 Get involved

Shareholder activist funds, etc.

Positively screened / best-in-class
ESG funds using deep shareholder
engagement to improve
performance, etc.

Public / private equity funds selecting andengaging with businesses that have asignificant impact on education andhealth for underserved communities, etc.

3

 Grow new / under-resourced capital markets

Anchor investment innegatively screened real estate
funds in frontier markets, etc.

Positively screened
infrastructure funds infrontier markets, etc.

Bond funds anchoring primary issuancesby businesses that have a significant
impact on environmental sustainability,
access to clean water and sanitation, etc.

Positively screened private
equity funds with anchor
investments in frontier markets,
etc.

Private equity funds making anchor
investments in businesses that have asignificant impact on income andemployment for underserved
communities, etc.

ref: impact frontiers

4 Get involved

5 Grow new / under-resourced capital markets

6 Get involved

 Grow new / under-resourced capital markets

 Provide flexibility on risk-adjusted return Grow new / under-resourced capital markets
 Provide flexibility on risk-adjusted return

Impact Report 2023

Impact Classiﬁcation

Below-market charity bonds or unsecured
debt funds focusing on businesses thathave a significant impact on underserved
communities, etc.

KIBOW
Social Investment Fund

6

Highlights
CapitalCumulative number of investments(including follow-on investments)

26

Cumulative invested capital(including follow-on investments)¥ 937million

Catalytic effect of investment*

Exits¥ 3,874 million

2

PeopleEntrepreneur diversity ratio**

Investee headcount growth***23.8 %

542*Estimated cumulative amount of funds attracted for investments led by KIBOW (co-investments, investments by other companies, loans, and grants)**Ratio of minority groups among KIBOW-invested entrepreneurs (women, LGBTQ+, non-Japanese nationals, and people with disabilities)***Number of added personnel (including management and non-executive directors dispatched by KIBOW ) at investee companies

Impact Report 2023

Highlights

7

Highlights

I SUN SUN GROUP

Knowledge“What Is KIBOW Social Investment / Activities of the First Investee, I
SUN SUN GROUP”

Events and Media Coverage
Articles and videos about portfolio companies were published in Japaneseon GLOBIS Chikenroku and in English on GLOBIS Insights.

A’s Child“There Is No Difference in People's Abilities, There Is Only a
Difference in Thoughts”“Empowering Children and Parents to Deal with Online Bullying –Interview with A’s Child”“A Society Where Both Adults and Children Can Seek Advice –Interview with A’s Child”

Seeds of Wish

“Revitalizing Lost Communities with 'Cinemas in the City' –Interview with Daizo Aoyama, Seeds of Wish”

47PLANNING“The Power of the Private Sector to Stand Up to the Disaster – with
Project KIBOW”“Starting Up in the AI Industry with No Expertise Changed –Interview with BAOBAB, Part 2”“What Is the Future of Fan-Based Marketing?”“Sincere Engagement with the Frontline and Quantifying the Social
Value of the Company: Impact Measurement and Management”

vKirirom

Rennovater

GAXI“Creating an Ecosystem of Learning and Innovation in Cambodia – A
New Challenge for Japanese Entrepreneurs”“AI Annotation Business to Enable Unconstrained Work – Interview
with BAOBAB, Part 1”“Quantifying Qualitative Value to Demonstrate Purpose and Change
Society – Impact Measurement and Management”“A Peaceful Home for Everyone – Entrepreneurs with a Truly
Inclusive Mindset Are the Leaders in Solving Social Issues”

IRIS“What Is the Scholarship Platform GAXI? Thoughts on Starting a
Business, Part 1”“Thinking Together: The 'LGBTs Housing Agenda' and the Future of
the Real Estate Industry”

Light-Right“The Creation of a Logic Model Led to Decision-Making Confronting
Outcomes”“What Is the Scholarship Platform GAXI? Changing the Future ofJapan through Youth Support, Part 2”

Impact Report 2023

BAOBAB

Highlights“Sharing Awareness from the Community Perspective andPromoting Business Renovation”
8Highlights

Knowledge

Contributing to ecosystem construction

Participation in the GSG National Advisory
Board

Signing of Japan Impact-driven Financing
Initiative

Participation in Social Impact Management
Initiatives

The Global Steering Group for Impact Investment (GSG) is aJapan Impact-driven Financing Initiative promotes impact

The Social Impact Management Initiative (SIMI) is a collaborative

global networking organization promoting social impact

investment through cooperation and collaboration between

effort of diverse stakeholders in Japan, including nonprofits,investment for people and the planet. KIBOW is a supporting

multiple diverse financial institutions that believe the purpose

businesses, funders, funding intermediaries, governmentorganization, and Reiji Yamanaka is a member of the Impactof financial institutions is to actively address social andagencies, intermediary support organizations, think tanks,

IPO working group.

environmental issues, holistically understanding impact.

evaluators, and researchers. KIBOW is a supporting member of

KIBOW has signed the initiative and participates in the VC

SIMI. Takeshi Igarashi is also a research fellow at the SIMI Global

subcommittee.

Resource Center.

Participation in the Cabinet Secretariat’s Study Group on Impact Investment for Global HealthParticipation in the Impact Startup
Association
The Impact Startup Association aims to create a sustainable

The Japanese Cabinet Secretariat organized the Impact Investment for Global Health study group, where experts gathered to exchange
views and produce initiatives to encourage private sector investment in global health ahead of the 2023 G7 held in Japan. Takeshi Igarashi
served as an expert committee member. Following recommendations in the final report, the Impact Investment Initiative for Global
Health (Triple I for GH) was announced in the Leaders’ Communiqué of the G7 Hiroshima Summit. KIBOW is a member of this initiative.

society by building an ecosystem for impact startups. Impact
startups bring positive impact to society by solving social issues
and promoting economic growth. Takeshi Igarashi is the auditor of
the Impact Startup Association.

Impact Report 2023

Highlights

9Our History“KIBOW” started with earthquake disaster recovery support

In 2011, the Great Tohoku Earthquake struck Japan.

the world with hope. Our initial activities included

It was a pioneer fund in Japan with a mission toThree days later, Yoshito Hori and his friends began

fundraising and donations, disseminating information

accelerate the creation and transformation of society

serious discussions about what they could do. KIBOW

overseas, transporting supplies, and organizingby creating the flow of capital, the flow of people towas born as a project to support recovery in theevents.

invest in and grow, and the flow of knowledge for best

disaster-affected areas.

In 2015, we launched the KIBOW Social Investment

practices that transcend society.

The name “KIBOW” is a combination of the words

Fund, which provides social impact investment for

kibou (“hope” in Japanese) and “rainbow,” whichstartups. This move was based on advice from Sir

represents connecting people to people and Japan to

Ronald Cohen, the father of social impact investment.

Impact Report 2023

Our History

10

Fund Overview
Purpose

Focus

TargetTo invest in entrepreneurs who contribute tosolving social challenges, to support their
growth, and to accelerate social change

Healthcare and elderly care

Startups that meet the following criteria:

To build a social impact investment ecosystem
in JapanChildcare and parenting support
PovertySocial inclusion
Regional revitalization (including
disaster-affected areas)
Environmental preservation-

Contributing to solving serious social
problems-

Demonstrating an ability to generate
financial return on investment-

Showing a high-potential management
team

International cooperation

Conditions

Stage
We invest in early stage startups.

Preferred shares¥10–100 million per investment
Equity share: 5–20%
Duration of support: 7–10 years

Impact Report 2023

Fund Overview

11

Team

Investment Professionals

Reiji Yamanaka

Suzuka Kobayakawa

Takanori Matsui

Managing Director, KIBOW Social Investment Fund
Faculty, GLOBIS University
External Director, I SUN SUN GROUP and STORIA

Faculty, GLOBIS University
External Director, GOOD COFFEE FARMS

External Director, BAOBAB

Prior to establishing our fund, Reiji led businessdevelopment at two social purpose healthcare
startups. Before that, he worked for GLOBIS CapitalPartners as a venture capitalist. He started his
career at Canon.
He gained an MBA from Harvard Business School
and a BA from Hitotsubashi University.

Prior to joining GLOBIS and KIBOW, Suzuka
advanced financial inclusion at a Nigerian startup,
supported the reintegration of former child soldierswith UNDP in Nepal, and was involved in sales at
Recruit Co. Ltd. in Japan.
She holds an MA in sustainable development from
SIT Graduate Institute and a BA in international
development from the University of Tsukuba. She isan Acumen Global Fellow (2014), a World Learning
Fellow (2010), and a Rotary Ambassadorial Scholar(2009).

After working for a consulting company, Takanori
became involved in organizational management as
managing director of the NPO Nimaime-no-meishi.
He launched a collaborative, “cross-boundary
learning” project between a team of working people
and social entrepreneurs for next-generation
leaders. He has implemented about sixty otherprojects and is involved in empirical research incollaboration with universities.
He graduated from the Hitotsubashi University
Faculty of Law and Waseda University Graduate
School.

Mizuki Uchimaru

Natsuki Tamura

Takeshi Igarashi

Mizuki worked at Industrial Growth Platform, Inc.,focusing on consulting for overseas expansion andnew business development. She also engaged inbusiness development and management planning at
an invested venture company. She later joined
GLOBIS, where she was involved in corporate sales
for executive training and organizational
development for corporations.

Natsuki worked in Nikon’s Corporate Venture
Capital Team, where she was involved in investing indeep tech, planning new businesses, andestablishing open innovation frameworks. She
subsequently joined Recruit Co., Ltd.’s Human
Resources Planning Department and the HR Tech
Product Development Team. After launching
G-STARTUP at GLOBIS, she joined KIBOW andcurrently serves as Director-General.

External Director, RENNOVATER

She graduated from the Department of Health andWelfare Sciences at Waseda University.

He graduated from Keio University with a degree in
Economics and completed his MBA at the Universityof Oxford in the UK.

She graduated from Waseda University’s School of
Political Science and Economics.

Impact Report 2023

Team

Takeshi’s career path includes roles at PwC, Japan’s
Cabinet Office, and Big Society Capital in the UK,
which led to his current position. He is the founderof Accountability for Change and a former CFO at
Teach For Japan. He is a certified public accountant
and a supervisory auditor for the Impact Startup
Association.

12

Team

Advisory Board

The KIBOW Advisory Board members have a diverse range of expertise.
Semi-annual meetings are held to provide advice on portfolio companies.

Hiroki Komazaki

Daigo Sato

Kohei Terada

Haruo Miyagi

Founder & CEO, Florence

CEO & President, dot-jp
Professor, Musashino University

President & CEO, Warehouse TERRADA

Founder, ETIC.

Kumi Fujisawa

Retsu Fujisawa

Allen Miner

Yoshito Hori

Chairperson, Institute for International
Socio-Economic Studies

Representative Director, RCF

Founder & Chairman, SunBridge Corp.

President, GLOBIS University
Managing Partner, GLOBIS Capital Partners

Value-Add Professionals

Faculty members from GLOBIS University are dispatched as external directors of portfolio
companies to provide hands-on support.

Tomoko Kimijima

Soichiro Serizawa

Masaki Mizoguchi

Toshiaki Touju

Responsible for Rapport Hair Group
Dean, GLOBIS University (Japanese)
Executive Trustee, Educational Corporationof GLOBIS University

Responsible for 47PLANNING
Courses: Keiei Dojo, Organizational Behavior
and Leadership, Power and Influence,
Human Resource Management, Facilitation
and Negotiation

Responsible for Polaris
Courses: Essentials of Accounting,Accounting I, Accounting II, Essentials of
Finance, Finance I

Responsible for Minna no Mikata HD
and Light-Right
Courses: Accounting I

Megumi Kose

Mami Kajii

Koji Torigata

Tsukasa Osaki

Responsible for GAXI
Courses: Critical Thinking, Design Thinking
and User Experience

Responsible for A’s Child
Courses: Technovate Thinking

Responsible for SHINMIRAI
Courses: Venture Management, Venture
Business Planning

Responsible for MySherpa
Courses: Essentials of Marketing andStrategy

Yosuke Inoue

Chieko Inoue

Mamiko Matsumura

Akio Mori

Responsible for congrant
Courses: Research and Startup Project(G-INCUBATE), Design Thinking and User
Experience, Venture Business Planning

Responsible for CoCooking
Courses: Accounting I, Essentials of
Accounting

Responsible for IRISGLOBIS Corporation
Manager, The GLOBIS AI Management
Education Research Institute (GAiMERi)

Responsible for Kakemichi Project
Courses: Accounting I, Essentials of Finance,
Essentials of Accounting, Finance I,
Research and Startup Project(G-INCUBATE)

Noriyuki Hanazaki
Responsible for LTB
Courses: Customer Journey and Branding

Impact Report 2023

Team

13

Investment Process & Decision Criteria

Investment Process

Investment Decision Criteria

We provide hands-on social impact investment to startups
through the following process:We invest for both social innovation (structural changes in society) andfinancial return. The business models we look at must deliver on both of these.
Our prerequisites are scalability of the business and competence of the
management team.

Impact Report 2023

Investment Process & Decision Criteria

14

Investees
Name of Company

Social Issue

Name of Company

Social Issue

Kakemichi ProjectChild and family mental health

SHINMIRAI

Forest sustainability

MySherpa

Mental health

BAOBAB

Social inclusion

Light-Right

Regional revitalization, business succession

GAXI

Educational inequality

LTB

Foreign worker equality

RENNOVATER

Social housing

Minna no Mikata HD

Equal employement for people with disabilities

vKirirom

Educational inequality

GOOD COFFEE FARMS

Poverty among small-scale farmers in developing countries,

Rapport Hair Group

Gender inequality

47PLANNING

Regional revitalization

PolarisGeriatric care

I SUN SUN GROUP

Equal employement for people withenvironmental issues
IRIS

LGBTQ+ equality

CoCookingFood waste

congrant

Intermediary support for NPOs

A’s Child

Bullying, truancy, abuse, loneliness, and isolation of children

disabilities

Listed in chronological order based on investment execution date

Impact Report 2023

Investees

15

Investees

Kakemichi Project
VisionProvide optimal support to 100,000 children
with mental health care needs
Social Issues
The number of children in need of mental health care for issues such as truancy and developmental
disabilities is increasing. However, the number of child psychiatrists is radically insufficient̶ children are
not receiving the support they need.

Business Summary
The company operates the Nannaru home nursing station, which specializes in child psychiatry.

Impact Report 2023

Investees

Investees

Kakemichi Project
Impact Model

Impact KPIs

GAF averageContract date

50.2

July 2022

55.7

June 2023

54.5

Sample data from the Global Assessment of Functioning (GAF) for psychiatric home care (n=25)
Scores significantly improved from 50.2 at the time of contracting to 54.5 in June 2023. There is nodata for 60 and above, as support would be terminated.

Impact Story
A primary school child had developmental disabilities. She grew up in ahousehold of alleged abuse by her father until her parents eventually
divorced. But the child went on to show verbal and physical aggression
toward her mother, and there were frequent tantrums. This took a toll on themother ʼs body and mind, causing her to lose hope. The Kakemichi Project,unable to ignore the seriousness of the situation, offered psychologicalsupport to the mother and evaluated the child. They also gained anin-depth understanding of the family situation and provided interventions
to help the mother-child relationship. This gradually reduced the heavy
burden that the mother had been carrying alone, and improvements began
to show for both her and her child.

Impact Report 2023

Investees17

Investees

MySherpa
VisionA society where everyone has access tomental health care support
Social Issues
It is currently estimated that around 13.5 million people in Japan potentially have mental health problems, and that
number is increasing. There are 20,000 suicides per year̶ one of the highest rates in the developed world. Approximately
9.5 million people who have never visited a hospital or been hospitalized are suffering from mental distress.

Business Summary
The company provides online counseling services for corporations, local governments, and other entities. Under thesupervision of psychiatrists, licensed psychologists and clinical psychologists conduct sessions based on theirexpertise and a scientific approach.

Impact Report 2023

Investees

Investees

MySherpa
Impact Model

Impact KPIs

Impact Story
Our client, the non-profit organization Katariba, is

ImpactImproving well-being

A society where counselingis readily accessible to all

on a mission to support children affected bydisasters and families in financial difficulty.
However, this noble work is also a great emotional

Intermediate

OutcomeDeterring andimproving poor
performancedue to mental
health problems

Improvingmental healthindicators
withincommunities

Makingcounseling thefirst choiceburden for staff, many of whom have had to take

A society withfree access tomental healthcareleave as a result. In the past, HR responded bytalking to individual employees after
psychological effects had started to appear, rather

DirectOutcomePreventing mental
health problems

Improving mental
health problems

Increasing utilization
within communities

than taking preventative measures.
A survey conducted by My Sherpa* shows a user trend towards improved mental health after
counseling.

OutputNumber of evidence-based
counseling sessions conducted

Amount of free access to counseling

To address this, MySherpa’s online counseling*Questionnaire for users of My Sherpa’s counseling services within 6 months (valid

service was introduced. Users expressed that it

responses: 75)

was very helpful. Hearing this, Katariba decided to
introduce the service during new staff
orientations. Now 10% of staff use this service at

Activity

Input

Impact Report 2023

Quality control bypsychiatrists; improved
counselor levels

Recruitment ofquality counselors

Creating aneasy-accessenvironment

Medical cooperation

Improving mental
health literacy

Awareness-raising
within the community

Insights frompsychiatrists

Network of professionallyqualified counselors
seeking opportunities

Social impact
investment

Investees

an early stage to help identify issues and maintaintheir mental health.

19

Investees

Light-Right
VisionShininga light
to make the future rightSocial Issues
With Japan ʼs aging population, small and medium-sized enterprises (SMEs) in local areas are struggling. More andmore face closure of business, while others lack successors. This makes it difficult for people who depend on thosebusinesses to maintain their livelihood and place in the community.

Business Summary
Light-Right operates the non-anonymous business succession platform Relay for owners (sellers) who want to ensure
they have the right successors. The platform matches such owners with sympathetic successors (buyers) who will
preserve their thoughts and stories.

Impact Report 2023

Investees

Investees

Light-Right
Impact KPIs

Impact Model

July 1, 2022 – June 30, 2023

Number of
local community leaders

インパクトモデル

Impact Model+25

Number ofmunicipal partnerships*

5

Changes after business succession

10 %Closedbusinesses
(2)

30 %
Sales growth
(6)

60 %
Unconfirmed(12)*April 1, 2022 - March 31, 2023

Impact Story
Business successions involving Light-Right have changed businesses andlocal communities for the better. In the town of Takaharu,
Nishimorogata-gun, Miyazaki Prefecture, the non-anonymous businesssuccession platform Relay led to eight new businesses in eighteen months,
including three business successions. The region is undergoing a majortransformation thanks to an increase in successors migrating in. A
Takaharu PR Section has been established in the town hall, and local
residents have welcomed the migrants and new stores that have sprung up
in the shopping arcade. Business successors have become community
leaders. Thanks to their work with the local people, the region is being
revitalized.
Impact Report 2023

Investees

21

Investees

LTB
VisionA safe and secure experiencefor foreign worker employment
A safe environment for foreign workers to excel
Social Issues
The number of foreigners living in Japan is expected to increase by 2 million over the next ten years. Currently, there
are many cases of illegal employment and overstaying visas in the country due to employment mistakes, resulting indeportation and immigration detention. In addition, due to language and cultural differences, power harassment andbullying are common in the workplace.

Business Summary
LTB operates a job-matching platform for employers and foreign nationals seeking work. The platform ʼs automatedmatching of visa status and job category, as well as its employment management system, aims to eliminate illegal
employment, which is the biggest risk for both employers and foreign nationals.

Impact Report 2023

Investees

Investees

LTB
Impact KPIs

Impact Model

July 1, 2022 – June 30, 2023

Total number of jobs for foreign nationals withdiverse options (some undisclosed)

3,812

Number of applications using automatic visa
screening to prevent illegal employment

4,300

Number of downloads of onboarding/best-practicematerials for working with foreign nationals

83

Impact Story
A construction company in Gifu Prefecture has taken a step
forward by hiring one person from the Philippines and two
people from Brazil as assistant site supervisors. The company
president made a heartfelt promise to welcome them not just as
workers, but as human beings and family members: “We value
you and your family as our own.” Under this sincere president, theworkers are actively making suggestions and devising new ways
to do their jobs. Their enthusiasm and efforts are highly
appreciated in the field, and their reputations continue to growday by day.

Impact Report 2023

Investees

23

Investees

Minna no Mikata HD
VisionEliminate the word and concept of
disability in Japan
Social Issues
Corporate perception is a barrier for people with disabilities,
limiting opportunities to work and play an active role.

Business Summary
Minna no Mikata HD matches companies with employment support facilities for people withdisabilities, providing opportunities for those people to work in jobs that suit them.

Impact Report 2023

Investees

Investees

Minna no Mikata HD
Impact Model

Impact KPIs

Impact Story

June 1, 2022 – May 31, 2023

Company A, which operates sixty-two car
SDG 10

インパクトモデル

Impact Model

REDUCED INEQUALITIESSame hourly wages as
non-disabled workers¥

accessory shops in the Kanto region, and1084.7(Jan 1, 2023 – May 31, 2023)

SDG 8

headquartered in Nagoya, visited Minna no
Mikata HD. Seeing disabled employees at work
gave them a change of mindset from “work that

DECENT WORK AND
ECONOMIC GROWTH

Number of organizations
registered to Shigoto System,a proprietary business process

Company T, a century-old company

even disabled people can do” to “work that our84

company needs help with.” Both signed up for theservice. In addition, Company T announced in apress release and in the Nikkan Kogyo Shimbun (aSDG 8

Number of jobs provided eachmonth throughout the year

Impact Report 2023

Investeesnewspaper) its intention to increase employment

DECENT WORK AND
ECONOMIC GROWTH

4

opportunities for people with disabilities.

25

Investees

GOOD COFFEE FARMS
VisionCoffee Changing the World
Sustainable coffee made with bicycles
Social Issues
For producers: Small-scale coffee farmers must deal with poverty, unemployment, and immigration.

There are also environmental problems, such as water pollution caused by alkaloid substances released during coffee refining.
For consumers: Changing the current situation where coffee is consumed is a challenge,

as consumers have little awareness of the relevant social issues.

Business Summary
GCF provides small-scale coffee farmers with equipment, knowledge, a dignified working environment,
and market access to produce high-quality specialty coffee with low environmental impact.
The slogan, “Coffee Changing the World,” reflects how the company produces sustainable coffee made by bicycleand delivers it to roasters and consumers in Japan and around the world.

Impact Report 2023

Investees

Investees

GOOD COFFEE FARMS

Impact Model

Impact KPIs

Impact Story

Number of registered farmers

229

Direct interaction between producers andconsumers is gradually changing the attitudes
and behaviors of both. A female grower who

Number of farmers whose
high-quality products
achieved exports

62

became a contract farmer in Colombia and afemale roaster in Japan agreed, “The industry isdominated by men, but I am glad andencouraged to see a woman taking leadership.

Number of farmers dealing
directly with Japanese roasters(My Farm contracts)

10Letʼs work hard together!”
One Guatemalan production leader is studying
production management systems while

July 1, 2022 - June 30, 2023

providing guidance to others. This attitude has
influenced the farmers around him, leading to
the production of high-quality products.

*GCF= GOOD COFFEE FARMS

Impact Report 2023

Investees27

Investees

IRIS
VisionDon t give up
on being true
to yourself
Social Issues
Discrimination against gender minorities (LGBTQ+) by estateagents/managers on grounds of sexuality

Business Summary
IRIS is a real estate agency where LGBTQ+ and other people can feel
comfortable discussing their housing needs.

Impact Report 2023

Investees

Investees

IRIS
Impact Model

Impact KPIs

July 1, 2022 – June 30, 2023

Qualitative
indicator

Number of rental andsales contracts signed

Number of enquiries

141

424

Number of website
unique users

Company name andservice recognition

6.3 %675,110(approximately 420,000 people)

Quantitative
indicator

Customer satisfaction*

90

/ 100
*As of July 2022

Impact Story
Housing Support Goes LiveAs of September 2023, there were eight
cumulative transactions through IRIS, totaling
approximately ¥328 million. In Japan, same-sex
couples were traditionally unable to take out
SOGI: Sexual orientation, gender identity

mortgages, but starting with Mizuho Bank in 2017,
more than thirty-five financial institutions now
offer such services. However, the application
screening is complex, and there are far fewer
opportunities for support. IRIS is removing thesebarriers to home purchase.

Impact Report 2023

Investees

29

Investees

CoCookingVisionConnecting food with people
to the very last bite
Social Issues
Large quantities of food waste are generated every day in various mid-market
and food service establishments.

Business Summary
CoCooking developed TABETE, an app that matches sellers (food businesses)with buyers and rescues products that would otherwise be thrown away.

Impact Report 2023

Investees

Investees

CoCookingImpact Model

Impact KPIs
Number of rescued products(monthly)

Number of users performing rescues(monthly)

Jan 2022

Jan 2022

20,5909,041

Sep 2022 21,283

Sep 2022 9,541

Feb 2023 27,960

Feb 2023 12,998

Jul 2023

Jul 2023

32,592

14,055

Number of shops using TABETE

CO2 emission reductions (monthly)

Jan 2022

Jan 2022

492

28.3t

Sep 2022 681

Sep 2022 29.2t

Feb 2023 695

Feb 2023 38.5t

Jul 2023

Jul 2023

723

44.8t

Impact Story
The Celestine Tokyo Shiba introduced the TABETE app for
its hotel buffet. By working with the head chef to develop
an operational methodology, the hotel’s high hygiene
standards were met, and food waste was successfully
reduced by 360 meals in about six months. This effort
reduced the overall food waste by more than 90% forbread and more than 50% for other dishes.

Impact Report 2023

Investees31

Investees

congrant
VisionRealizing a world
where donations reach every challenge
Social Issues
The social sector is responsible for solving social issues that cannot be reached by national and local governments alone.
However, Japanʼs donation-to-GDP ratio is very low̶just one-twentieth that of the US.
NPOs without experience or resources struggle to raise sustainable funds.

Business Summary
The company provides a combined fundraising system for NPOs and the social sector, including donation solicitation, settlement, and CRM.
It also runs a number of unique grant programs that enable NPOs to realize fundraising through tie-ups with companies.

Impact Report 2023

Investees

Investees

congrant
Impact Model
インパクトモデル

Impact Story
Impact Model

The Monthly Donation Challenge
Program was offered to nineorganizations, resulting in a total of 106
continuous donors in two months. The
program provided know-how fromorganizations that had alreadysucceeded in attracting recurring
donors, opportunities for organizations
to learn from each other, and practicalaccompaniment support.
Organizations commented that theaccompanying support gave themconcrete information on the donation
page, the content of the campaign, andhow to gather supporters. This helped
build a serious attitude towards public
relations.

Impact KPIs

July 2022 - June 2023

Amount of donor settlement¥

1,837,474,252

Impact Report 2023

Investees

Number of monthly supporters ofcontinuing contracting organizations

12,590（2022）

Donation amount: Total donations received bymember NPOs through the congrant donation
website annually
Number of monthly supporters: Total number ofcontinuous donors who donate a certain amountof money each month (not one-off donations)33

Investees

A’s Child
VisionBrighten the future for children
Social Issues
There is a lack of support for the increasingly diverse concerns of children and young people, including
bullying, truancy, withdrawal, domestic violence, and harassment.

Business Summary
The company provides social media consultation and other counseling services via casual online chat.

Impact Report 2023

Investees

Investees

A’s Child
Impact Model

Impact KPIs

Sep 2023

Range of municipalities withsocial media consultation systems in place
Centralministries andagencies

8

Prefectures

Municipalities

24

36

NPOs, companies,
educational institutions, etc.

58

Number of users registered with the social media consultation system (cumulative)

775,150

Number of consultation cases handled (cumulative)

454,176
Impact Story

In collaboration with Cluster Inc., A’s Child provided a metaverse space for“young people with difficulties in life” in Fukuoka Prefecture. In addition to
standard social media consultation (one-to-one chatting with a counselor),
the space has realized a first in Japan. People can use the space to talk witha mental health worker, interact with university students close to thecounselor’s age, and share problems with other children, all in the privacyof an online environment.
Impact Report 2023

Investees

35

Investees

SHINMIRAI
VisionMake forests sustainable
for the next generation
Social Issues
Japan’s abundant forest resources have been underutilized in recent years,
and investments in forests have been inadequate.

Business Summary
The company procures and sells mainly sustainable timber that does not fall into the category of deforestation,
which damages the global environment. It also operates eTREE, a timber information platformthat educates about certified timber.

Impact Report 2023

Investees2

Investees

SHINMIRAI

Impact KPIs

July 1, 2022 – June 30, 2023

Percentage of domestic timber (target: 75%)

112

Sustainable wood ratio (target: 50%)

Percentage of FSC-certified timber(target: 5%)

Number of FSC consultations

Impact Report 2023

Investees

47

7

188

188

188

60%
25%
4%

Impact Story
From July 1, 2022, to June 30, 2023, the company
delivered a total of 188 pieces of timber. Of these,
112 (approx. 60%) were domestic timber, 47(approx. 25%) were sustainable wood as definedby the company, and 7 (approx. 4%) were Forest
Stewardship Council (FSC) certified. In addition,
six consultancies for FSC certification werecarried out.

6
37

Investees

BAOBAB
VisionA world with mutual respect and freedomof choice for everyone
Social Issues
Employment opportunities are restricted for people with a range of unique circumstances, including people with disabilities,
those raising children, family caretakers, and refugees residing in Japan.

Business Summary
BAOBAB creates AI training data for large corporations and research organizations, outsources work,and provides implementation support to people with working restrictions.

Impact Report 2023

Investees

Investees

BAOBAB
Impact KPIs

Impact Model

Qualitative indicator
Four indicators of change in the people
who undertake work for BAOBAB

インパクトモデル

Quantitative
indicator

Impact Model

Number of people who have undertaken work for BAOBAB to date

2,115

Creating and expanding opportunities for everyone to contribute tosociety and gain self-esteem through work, regardless of differencesin circumstances

3.6

Building support communities through work

3.4

Discovering and developing talents through annotationand expanding the market for new workers

4.1

Paving the way to economic independence and a world
where workers and their families never give up on their future

3.1

/ 5.0

/ 5.0

/ 5.0

/ 5.0

Impact Story
A Lebanese refugee living as a housewife participated in the BAOBAB Annotation team Leader
Training Program (ALT) to develop image annotation skills, digital literacy, and management
skills. Over ten months, she grew as a team leader and realized her potential: “I'm remarkable!”
She is now a team leader in charge of project management, as well as supervising the second
wave of ALT participants. She says, “I want to further develop my skills to find my value in thisfield.”
Annotation: the process of adding information to data in AI development

Impact Report 2023

Investees

39

Investees

GAXI
VisionChange scholarship inequality.
Change destiny.
Change society.
Social Issues
Inequality of information in the scholarship area limits students ʼ future possibilities and career options.

Business Summary
The company runs GA XI, a portal site where anyone can access scholarship information,
and GA XI Agent, a management system for organizations administering scholarships.

Impact Report 2023

Investees

Investees

GAXI
Impact Model

Impact KPIs

*As of Nov 2023

Impact Story
A single mother with three children (university, high school, andjunior high school age) searched for and applied for scholarships
on GAXI, leading to several scholarships awarded. The process ofapplying also helped her children clarify their goals and increase
their motivation to study. GAXI has made it easier to find existing
scholarships, but it is also planning more original scholarshipsthat women like this will be able to utilize in the future.

Impact Report 2023

Investees

41

Investees

RENNOVATER
VisionPeaceful homes for all
Social Issues
People with low incomes, elderly people living alone, single mothers, and foreign nationals
are often refused contracts by landlords and others, making it difficult for them to secure
housing.

Business Summary
The company acquires and repairs vacant houses and offers them at low rental rates
to people who have difficulty securing housing.

Impact Report 2023

Investees

Investees

RENNOVATER
Impact Model

Impact KPIs (Quantitative Indicators)







Number of properties held by thecompany





Number of tenants occupying
company properties


Total number of tenants
assisted

Impact KPIs (Qualitative Indicators)

Impact Story
A foreign couple in their thirties (both dispatched workers with company housing) were suddenly asked to relocate. Instead,
deciding they liked living in the region, they resigned from the company. RENNOVATER provided them with a place to live.
They have since found new jobs and are enjoying life in a place they chose.

 .

.

.

.

.

Residence Intention
satisfaction to remain

Qualityof lifeStateof healthState of
Economiccommunity conditions
relations

EatinghabitsMentalhealth

A woman in her thirties suffered from depression and schizophrenia. She was living with her siblings in a single-bedroom
apartment. RENNOVATER found her accommodations near the hospital and helped her apply for welfare assistance. Her
stress levels dropped when she got her own place, and she continues to receive treatment at the hospital.

Impact Report 2023

Investees

43

Investees

vKirirom
VisionA world where anyone can be a global leader
Social Issues
Since the Khmer Rouge genocide under Pol Pot, Cambodia’s intellectual class has declined,
resulting in a shortage of advanced educators.

Business Summary
The Kirirom Institute of Technology was established to provide high-level IT, entrepreneurship,
and other education, as well as a scholarship system.
The project also addresses the shortage of IT human resources in both Cambodia and Japanby creating opportunities for Japanese young people to study in Kirirom.

Impact Report 2023

Investees

Investees

vKirirom

Impact KPIs

July 1, 2022 – June 30, 2023

Number of students admitted

36(including 36 Cambodians)

Number of students taking leave (negative impact)0

Number of dropouts (negative impact)

0

Impact Story
Jobify, a startup from the Kirirom Institute of Technology,
qualified for the 2023 ASEAN-Korea AI Youth FESTA(held in Indonesia) and was selected as one of the top 18
out of 136 participating companies from ten ASEAN
countries.

A survey of Cambodian graduates found that(i) 96% found full-time employment(ii) 84% of those who found employment said they found a good job(iii) 39% of graduates earned more than five times the legal minimum wage in Cambodia

Impact Report 2023

Investees

45

Investees

Rapport Hair Group
VisionA society where everyone can continue
to work as they choose
Social Issues
Constraints due to childcare, nursing care, etc., as well as restrictions on employment status and gender roles,
make it difficult for women to continue working and utilizing their skills, especially in rural areas.

Business Summary
The company develops beauty salons that circulate “thank yous” and improve the well-being of the local community.
Specifically, it manages and nurtures directly operated and franchised salons with a unique management andhuman resource system enabling people with time and mobility constraints to continue working as they wish.

Impact Report 2023

Investees2

Investees

Rapport Hair Group

Impact KPIs

Impact Story

Fifteen years after she left her job as a beautician to have a baby, awoman had settled down to raise her children. But she questioned if she
was really happy with her life and wondered what she really wanted todo. She had loved her job as a beautician, but it had been fifteen years.
She lacked the confidence to even inquire about a job interview. Then

she visited Rapport Hair as a customer and saw how they worked as ateam. Realizing she could apply even though she was still raising herchildren and had a gap in her resume, she took the plunge. She stillworks for the company today.

One staff member said she is “having a lot of fun now” and has not onlyFeb 
Unit: individuals

Jun 
Number of beauticians

Dec 

Jun 

Direct management

Feb 
Franchises

Mar 
Visiting beauticians

Sep 

become more cheerful, but has also changed her appearance and isplaying an active role in the shop. She is even considering working more
hours once her children are older.

Impact Report 2023

Investees47

Investees

47PLANNING
Vision

Revitalize all forty-seven prefecturesand enhance Japan s national strength
Social Issues
As regional populations decline, local attractions and liveliness are being lost.

Business Summary
The company operates BYAKU, a restaurant with accommodations that condenses the charm of local areas.
It also promotes regional excitement through talent support for event management.

Impact Report 2023

Investees

Investees

47PLANNING

Impact KPIs

July 1, 2022 – June 30, 2023

Impact StoryBYAKU Narai in Naraijuku, Nagano Prefecture, has

4,418

Number of guests in BYAKU Narai (excluding children)

completed its second year of operation with thenumber of guests up 170% year over year. The
average annual occupancy rate also rose from63

Jobs created in BYAKU Narai(number of employees, including retired and temporary staff)

33.5% to 50.2%. In August 2023, two more oldhouses were acquired, and four rooms wereadded, bringing the total number of vacant[Review rating] Ikkyu.com (domestic customer satisfaction)[Review rating] Booking.com (international customer satisfaction)

Impact Report 2023

Investees

4.64

5

9.6

10

4.64 / 5houses to 11.
（102 ）

9.6 / 10（69）

49

Investees

Polaris
VisionA society in which the elderly can leadmeaningful, independent lives to the end
Social Issues
Disuse syndrome has led to a decline in physical function and many people becoming bedridden as a result of excessive rest.
This significantly undermines the well-being of the elderly, but also leads to higher healthcare and long-term care costs forsociety as a whole, placing a significant burden on social security systems.

Business Summary
The company provides independence support, mainly through day services. Specifically, the care improves frailty andprevents the elderly from becoming bedridden by providing gait training tailored to their individual goals.

Impact Report 2023

Investees2

Investees

PolarisImpact Model

Impact KPIs
Number of customers

Number of graduates*1

Improvement score*2

Jul–Dec 2021

5,605

Jul–Dec 2021

21

Jul–Dec 2021

0.85

Jan–Jun 2022

5,800

Jan–Jun 2022

18

Jan–Jun 2022

0.86

Jul–Dec 2022

5,742

Jul–Dec 2022

25

Jul–Dec 2022

0.91

Jan–Jun 2023

5,958

Jan–Jun 2023

42

Jan–Jun 2023

0.90

*1 Graduates: Users who attended Polaris day services requiring support became more energetic and are no longer eligible forcare insurance benefits.
*2 Improvement score: Average degree of reduction (improvement) in the level of care required. If all users improve by one(e.g., 5 → 4, 4 → 3), this score is 2. If all users deteriorate by one, this score is 0.

Impact Story
An eighty-year-old woman (level of care required: 1) suffered from severe hemiplegia due to astroke, but improved to level 2 support after about two years of rehabilitation. When she first started
Polypharmacy: use of five or more medications
Disuse syndrome: a condition with symptoms such as muscle weakness resulting from prolonged periods ofexcessive rest or reduced activity, such as being bedridden
Independence: physical, mental, and social independence as defined by WHO
ADL: activities of daily living

Impact Report 2023

Investeesusing the service, she was worried that she would never be able to graduate from nursing care, but
after attending Polaris twice a week, she was eventually able to walk independently. Her activity
level increased, and she now participates in folk song classes and karaoke. She is continuing her
rehabilitation with the new goal of resuming ballroom dancing.
51

Investees

I SUN SUN GROUP
VisionTo connect future generations with hopeso they can feel I m glad I was born.
Social Issues
People with disabilities and the elderly face difficulty just living.
Statistics show that the proportion of people with disabilities who are successfully employed vs. those who wish to work is approximately 50%.
Meanwhile, depopulated areas suffer a lack of facilities to support peaceful living for elderly people who need care.

Business Summary
The company integrates welfare for the disabled and the elderly to create a society in which everyone is glad to have been born.
Specifically, the company operates a nursing home, a day service, and a boxed lunch delivery businesswith an employment support center and group home for people with disabilities.

Impact Report 2023

Investees

Investees

I SUN SUN GROUP

Impact KPIs

Impact Story
A thirty-six-year-old man with full visual impairment was
Number of people with disabilities working for I SUN SUN



Number of people with disabilities
working106

laid off from his job due to COVID-19 and entered I SUN

Number of people with disabilities
employed by other companies(cumulative)

30

a user. He was the first person in Ishinomaki to switch fromNumber of single mothers employed10

In-house employment of persons withdisabilities

9




Number of people with disabilities employed by other companies (cumulative)

Number of single mothers employed

Number of people with disabilities employed in-house

Dec 

Dec 

Impact Report 2023

Dec 

June 

Investees

SUN Village (employment support Type B) in Ishinomaki asType B to general employment.

July ,  - June , Mar 

June 

Dec 

June 

53

Special Features

KIBOW’s Impact Due Diligence
KIBOW conducts impact due diligence in investment decision-making.
Below are some specific details of this process.

First, we ask about the entrepreneurʼsor pain to anyone, as well as examining

vision. Visions tend to be broad andthe entrepreneurs to ensure they are notabstract, but we ask specifically when,

imposing their own values.

where, how many, and what kind ofProcess

people they are aiming to create a society

If, after all of this due diligence, it isfor. We also want to understanddetermined that there is potential forchallenges or suffering the beneficiaries

structural change in society, we move onare currently experiencing and how deep

to full-scale due diligence. This involves

How

Is the vision appealing?

Entrepreneur pitchthat goes. We ask why this is the social

development of an impact model toIs the social issue serious?

Q&A

issue they are working on because that

determine how society can transform, theWhat problem are you trying to solve, and for whom?

motivation should be the driving force

development of a strategy to expand theWhat motivates you to work on solving this social issue?

and unbreakable axis for solving any

impact, and how KIBOW can contributesocial issue.

to this process. In addition to discussions

Initialdue diligence

Question

What structures create the social challenge, and where is
the leverage point?

with entrepreneurs and a literature
After that, we conduct a literature review

Why does this social problem remain unresolved?

review, we will conduct field research. We

to gain a structural understanding of theIs there any unintended negative impact?

interview experts, employees,social issue: Why is it occurring? What

beneficiaries, and around twenty otherhave other companies, including

people to develop an impact model thatgovernments and NPOs, been doing

makes sense.

Full-scaledue diligence

What paths can be taken to transform society?

Impact model development

Is the strategy for expanding the impact clear?

Strategies to expand impact

How can KIBOW contribute?

Interviews with beneficiaries
and other stakeholders

Is the impact model feasible?
Are initial outcomes being generated?
Are there clear measures to address negative impact?

Impact Report 2023

Literature review
Social issue structure

Special Features

about it? Why arenʼt those efforts
working? Why does the social issue

To ensure that the impact model is reallyremain? We then test hypotheses about

feasible, impact KPIs are set, and anwhether the business activities caninitial impact measurement is carried outtransform a vicious circle of social

before investment. Finally,

Initial impact measurement

problems into a virtuous circle of social

countermeasures against the risk of

Impact risk response policy
development

problem-solving. We also check fornegative impact are considered.

unintended negative impact. This

Investment decisions are made only after

includes examining the business criticallyconfirming that such risks can be

to ensure that it does not cause suffering

minimized.

KPI setting based on impact
models54

Entrepreneur Interview

How Development of an Impact Model Led to a Decision
to Face Social OutcomesLight-Right CEO Ryuta Saito x KIBOW Dialogue
One of the challenges facing Japan’s super-aging society, known as the “2025 Problem,” is mass closure of small and medium-sized enterprises (SMEs) and subsequent decline in regional
well-being. Light-Right operates a matching platform for businesses seeking successors to prevent this from happening.
Below is a dialogue between Mr. Ryuta Saito, the company’s representative director, and KIBOW’s investment managers, Takanori Matsui and Natsuki Tamura. They discuss the development of
the impact model, its effects leading up to the investment decision, the “business renovation” experienced by the two investment officers in Miyazaki, and future prospects for the company.

Could you first explain what

actually work: What was M&A matching?
What, exactly, did regional revitalization

Light-Right does?

mean? But after a series of discussions, you
SAITO: Light-Right operates a service called

proceeded with your investment decision.

Relay, which is a matching platform for

What was that process like?

business succession. Japan as a whole isaging. That means the number of business

MATSUI: Initially, in parallel withowners is also aging, and the number ofstakeholder interviews and confirmation ofbusiness closures and bankruptcies isfinancial KPIs, an impact model* wasincreasing. But the loss of one business in adeveloped. We used that model as the basis

small town in a rural area means that certainfor discussions.

goods are no longer available, and people
have to travel to the next town. But*Impact model: a design diagram thattransportation problems stand in the way,organizes the cause-and-effectwhich can lead to socially vulnerable people.

relationships that enable an organization to

We want to solve these problems byachieve the changes and effects (outcomes)

opening up possibilities for local businessit aims for through business activities

succession.
TAMURA: Mr. Saito, this was your first time
In the beginning, there were many

creating an impact model. How was it?

questions about how supporting the
succession of regional SMEs would
Light-Right Relay impact model

Impact Report 2023

Entrepreneur Interview

55

Entrepreneur Interview

Light-Right CEO Ryuta Saito x KIBOW Dialogue

SAITO: I am very satisfied with the impact

TAMURA: Seeing the relationships between

model. The biggest thing was that it

the local shopping area and the stores, thesolidified the mindset that we have to facereaction of the government officials andthe social outcomes. I think that many M&A

everyone else, we realized that thesematching businesses really do not want tobusinesses were not just being taken over.

do that because M&A is often difficult after

They were being renovated and creating

the deal is concluded, and disputes can

new value for the local community. After

naturally arise around and within thegoing through such due diligence, did thecompany. However, by creating the impact

company or the situation change when you

model, we were able to make up our minds

actually received the investment?

that we are going to pursue certain
outcomes. We can now demonstrate clearly

SAITO: Businesses start from your own will,

and persuasively that business succession isthat feeling of “I wish to make society agood for society. I am more convinced thanbetter place.” But after a time, we tend toever of the benefits of business succession.

think only about how to make money. Of
course, a business has to be profitable, but

Natsuki Tamura, KIBOW

Ryuta Saito, Light-Right CEO

Takanori Matsui, KIBOW

In working together to create thethrough our discussions, I think I was able toimpact model, KIBOW visited Light-Right’s

turn my attention back to what I want to dobase in Miyazaki. They met with people who

and the direction we want to go as a

had succeeded or taken over businesses

company. I believe KIBOW will continue tothere, toured their shops, and spoke withbe a good partner for us.

government officials.
TAMURA: The idea of developing an impact
MATSUI: We actually visited the site, hadmodel and measuring with IMM* is still aconversations with the successors, andpretty foreign concept in the Japaneselistened carefully to what they had been

startup industry. I hope we can continue toworking on. For the first time, I realized how

support other impact startups withsignificant it is for a person who has

Light-Right as a role model.

supported the community to entrust theirbusiness to someone else.

*IMM: impact measurement andmanagement

Impact Report 2023

Entrepreneur Interview

56

Entrepreneur Interview

Facing the Situation andMeasuring Our Social Value in Numbers
BAOBAB CEO Miori Sagara talks about delegating work to individuals with working restrictions,
undertaking AI data creation tasks from major corporations and research organizations, and impact measurement and management.

Impact KPIs

Four indicators ofchange in those
entrusted with
our work

Number of people for whom work could be commissioned

2,115

Creating and expanding opportunities for everyone to contribute tosociety and gain a sense of self-esteem through work, regardless ofdifferences in circumstances or disability

3.6

Creating communities of connection and support through work

3.4

/ 5.0

Discovering and developing the talents of workers throughannotation and expanding the market for new workers

4.1

/ 5.0

Paving the way to economic independence and creating a world where
workers and their families never give up on their future

3.1

KIBOW TAMURA: How do you feel about these results? What
are your impressions?

Finding the Right Measurement Parameters throughFrank Interviews

SAGARA: First of all, as CEO of the company, I accept the

TAMURA: Can you tell us a little more about how you dealt with the question ofscore with humility. At the same time, I believe that we cannot
be happy or sad depending on how high or low a score is. For
example, in employment support facilities, leaving can be agood thing or a bad thing. If a person is able to move into
general employment quickly, that is a very happy thing, isn’t
it? So even if we know that people are being replaced quickly,
we can’t tell if it’s good or bad unless we check on theindividual. So depending on what the parameters are and how
you ask the questions, the score can be completely different.
We tried to minimize this difference as much as possible, but I
Miori Sagara
BAOBAB CEO

Impact Report 2023

have to admit that it was still difficult.

Entrepreneur Interview

/ 5.0

/ 5.0

parameters?
SAGARA: Baopart workers are not only paid for their annotation work. They are gaining
inner fulfilment and growth opportunities through a sense of community andachievement. However, existing evaluation frameworks didn’t incorporate this kind of
impact. Therefore, we started by identifying elements to serve as new parameters while
engaging in frank interviews with users.
In the end, based on about eight hours of interviews, we were able to systematize our six
social values.

57Entrepreneur Interview

Six Value Elements and Metrics at Baobab

TAMURA: What was most important when you were creating
questions for the survey?
SAGARA: We focused on choosing words that are meaningful for
frontline users and could be understood from their point of view.
Workers at the support facilities helped us with this. The initial draft
came back with a lot of revisions, but we were able to eventually get it
right thanks to the honest feedback we received. I believe the trust
and relationships of BAOBAB employees who are involved with users
on a daily basis played a crucial role in facilitating clear
communication.

No Impact Management before Funding
TAMURA: When did you really solidify what kind of social impact you
wanted to make and how you were going to make it?
SAGARA: We didn’t have a clear idea of what we wanted to do until
KIBOW invested in us. After that, everything became clearer.
As a business owner, it required courage to accept external funding.
Nonetheless, I wanted to receive KIBOW funding because I want tochange misconceptions—for example, the idea that people with
autism cannot work. That’s how we want to drive our business,
improve society, and increase the number of people who are happy.
To achieve this, we wanted to clarify why we are here and what kind ofcompany we are. By making these values publically known, we hoped
to attract like-minded individuals and expand our impact. We believethat if our model spreads, the number of people with disabilities who
feel confident in their brilliance and connected to society will grow,Ref “ Social Value of a Work Environment Where Everyone Can Work as They Are ”,

and the world will become an even more beautiful place.

co-authored by Fumihiro Oba and Miori Sagara, from the Stanford Social Innovation Review Japan

Impact Report 2023

Entrepreneur Interview

58

Features

Exit to Community
KIBOW takes a unique approach to exit.
Many venture capitalists invest with the aim of getting their investees listed on the stock exchange through IPO.
However, social impact investment does not always aim for IPO. At KIBOW, we believe in “exit to community.”

Changes in manaby’s impact over KIBOW’s investment period

M&A

IPO

Exit to Community

Case Study: manaby
Since its establishment in June 2016, manaby has provided

to improve its services, strengthen its operations, andhas strengthened its partnership structure while making a

IT education to people with disabilities and their families,

expand its locations. KIBOW conducted impact due

capital gain. This model of social franchising, in which

giving them new hope. In October 2020, KIBOW

diligence to ensure that manaby’s impact was not only

like-minded people work together to expand socialtransferred its shareholding in manaby to a number ofsustainable, but that it would further develop after exit.

enterprises, is expected to expand further.

manaby’s partner companies.

manaby established a unique system to provide developed

KIBOW had provided hands-on support after a ¥40 million

content to partner companies across Japan. By

investment in October 2018. We supported the company

transferring our shareholdings to these partners, KIBOW

Impact Report 2023

Features59

Features

5 LESSONS
As a pioneer of social impact investing in Japan, here are some of the lessons we have learned so far.


Uncovering the reason social issues persist requires careful thought
and research.
What contexts and structures generate social problems? And why has no one been able tosolve these issues until now? We not only conduct literature research, but also visit thefield to confirm with our own eyes and ears and think carefully about what we find there.

Case
In Japan, the number of occupational injury claims related to mental disabilities continues
to increase at a rate of 200 per year. Wanting to know why, we investigated throughmultiple approaches: 1) an analysis based on a literature review and expert interviews
considering historical context, 2) interviews with companies, including HR personnel, and3) counseling sessions as a stakeholder. We found that mental health care measuresintended to counteract the issue are often tokenistic. There are limited counselingconsultations and experienced counselors. Our solution, then, had two parts: creating asystem that is more user-friendly and creating a culture of in-house counseling. We
decided to invest in MySherpa to make this a reality.

Impact Report 2023

Features60

Features

5 LESSONS
As a pioneer in social impact investing in Japan, here are some of the lessons we have learned so far.



Due diligence is the first step in creating businesses andtransforming society with entrepreneurs.

The power to solve social problems lies in entrepreneurial
decision-making.

Due diligence is not just verifying a business and its social value. It is a process of working

Impact models do not automatically improve society. Even the most impressive impact

with entrepreneurs to develop a strategy to change society, articulate and visualize value,model will not work without the will of the entrepreneur. It is their diligent

and formulate a concrete plan. Even if due diligence does not result in an investment, wedecision-making on the front lines that brings change. The social impact investor showswant our efforts to earn a “thank you” from each entrepreneur.

their skills by supporting that decision-making.

Case

Case

We were initially unsure whether GOOD COFFEE FARMS (GCF) was really leading to

A’s Child has received many offers for investments, business alliances, and acquisitions

higher incomes for farmers. We therefore conducted direct interviews with GCF contract

thanks to its technical prowess. If the company had only focused on finances and business

farmers in Guatemala and found that not only had their income increased, but their lives

expansion, it would have been quick to accept all of these offers.

had improved, as well. Farmers shared some important comments, such as “I used to only
see my children sleeping, but now I can spend time with my family” and “I can eat lunch

However, A’s Child makes every decision based on a particular criterion: “Will this lead toand take tea breaks.”

the improvement of society?” Offers that do not meet this criterion are rejected outright,
and yet A’s Child has achieved remarkable business growth. The company’s ability to

We reaffirmed that due diligence is not an itemized assessment, but an important processchange society is supported by mission-based decision-making.

that enables us to think together about how to increase producers on the other side of
the planet who are improving their lives and the environment, as well as consumers who
are thinking about their own purchasing behavior.
Impact Report 2023

Features61

Features

5 LESSONS
As a pioneer in social impact investing in Japan, here are some of the lessons we have learned so far.

Impact measurement and management (IMM) comesat a significant cost. But it is worth it.

Creating impact attracts more resources,
which leads to business growth.

“Has this project really improved society?” This question is not easy. IMM requires

Aim for impact-led growth, as this will attract employees, investors, and customers andconsiderable money, time, and manpower. It also sometimes means facing a negative

create social empathy. All of that equals long-term business growth. By placing impact atsituation. However, it is through such difficult work that we can learn and see the world as

the heart of your strategy, you can generate new ideas and uniqueness.

it is. Social impact investors must continue to believe in and support impact measurement
no matter what.

Case

Case

In preparation of its own impact report, congrant involved its members in serious

Together, we developed an impact model that showed how society could be changed

discussions about the impact model and conducted many surveys of NPOs. It was awith tenants at the center. This was published in a release and simultaneously in an article

challenging process, but the report was successfully published. Not only that, but theon GLOBIS Chikenroku, generating interest which in turn led to new investments, loans,logic of how the business was connected to its mission became clearer. That made it

and grants, as well as media mentions on television and in magazines. Owners offeredeasier to openly discuss how to realize the mission through daily business policies andtheir properties for free or at reduced prices. RENNOVATER saw an increase in job

measures. The best-case NPOs were compiled from the interviews for the team to study

applicants. Tenant satisfaction and other factors continued to be reviewed throughand emulate.

questionnaires to improve the quality of the service and measure impact. The initiative
has been well received by the government, creating a virtuous circle and positive
reputation.

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Notes from Our Editors

Thank you for taking the time to read KIBOW’s “Impact

Thank you for your interest in this report. There were a lot ofThis is the first time I have been involved in the production

Report 2023.” The purpose of this report is to share with you

challenges and heated debates as each of us shared ourand design of a KIBOW Impact Report. The word “impact”

the ideal society that we at the KIBOW Social Investment

experiences and thoughts. We were finally able to publish,

inspired a design that would move people, which also is

Fund and our portfolio companies envision together, thebut this is not the end of the story. We want this to be ansomething I value in my everyday life.

concrete paths we are taking to achieve that vision, andopportunity to deepen discussions about the possibilities ofwhere we are today. To this end, we have aimed for a reportsocial impact we are creating with entrepreneurs. Therefore,

The first step in artistic creation is the concept: What isthat is easy to understand. The vivid pictures and words

we welcome you to share your thoughts. Let us know what

KIBOW thinking about? What is KIBOW trying to do? What

depict the changes in society we want to see. The impact

you would like to know more about. This will be a great

is KIBOW in the first place? In addition to this was themodels of our investees show the concrete paths to realizing

encouragement not only for us, but also for thegrowing awareness of SDGs, welfare, and the investment

their visions. We also used impact KPIs as quantitative

entrepreneurs working on the front lines. Your first step may

perspective needed to link that to business. We thought a lot

indicators and impact stories as qualitative descriptions. As

ignite a new discussion on how to improve society. You canabout how to present all this as a concept, and we hope thatyou have seen, our efforts are already producing exciting

connect with us on our official X account below or throughwe were able to deliver something that will catch people’s

results.

our members’ social media accounts.

attention and leave a lasting impression.

In the future, we will focus on three key areas:
1.

Setting clear and achievable impact targets

2. Transparent disclosure of information, including any
negative impact
3. Third-party verification of impact
インパクトレポート企画編集
五十嵐 剛志KIBOW
Official X Accountwe will continue to envision a hopeful future.

edition: the photography, direction, and graphics. We aim for

Finally, we would like to express our gratitude to each of theconsistent quality, as design needs to be refined for visual

many people and companies who have taught us so muchcommunication, imagery, and typography.

while we prepared this report. I look forward to thanking youin person.

We aim to contribute to the industry and society as a whole.
Our goal is to create a historical impact. Together with you,

Already, we are thinking about improvements for the next

株式会社CREAMU 代表取締役

Natsuki Tamura
田村菜津紀 Report Editor
Impactインパクトレポート企画編集

アートディレクター・デザイナー

Kunitaka Kawashimo
CEO of creamu Inc.
Art Director and Designer

川下 城誉

Takeshi Igarashi
Impact Report Director

Impact Report 2023

Notes from Our Editors

63

Disclaimer:
The investee information contained in this report is, in principle, current as of theend of June 2023. It does not reflect future changes in facts or circumstances.
The information in this report has also, in principle, been obtained from theinvestee companies. No guarantee is given as to its accuracy or completeness.
Any actions or decisions taken on the basis of this report are at the reader’s sole
discretion and risk. The content of this report is for general information purposes
only and does not constitute advice or recommendations tailored to thecircumstances of any particular individual or organization. We accept no liability
for any loss or damage arising from the use of this report. The photographs in thisreport may include illustrative images.

Impact Report 2023

Disclaimer

64