JIC makes LP investment in Spiral Capital Japan Fund III
・ Driving the creation of new businesses in the field of deep tech for Society 5.0
・ Promoting open innovation transcending the boundaries of traditional industries andorganizations
・ Promoting risk capital procurement from institutional investors
Tokyo, April 26, 2024 – Japan Investment Corporation (“JIC”) has announced its decision tomake an LP investment of JPY3 billion in Spiral Capital Japan Fund III (“SCJ3”), which ismanaged by Spiral Capital (“Spiral Capital”) and invests primarily in early-stage deep tech,fintech, healthcare, smart infrastructure, AI, and other sectors.
JIC aims to stimulate a virtuous cycle of risk capital to support next-generation industries inJapan. To achieve this vision, JIC promotes open innovation as a means for supporting
growth and enhancing the international competitiveness of businesses. JIC approaches
these challenges by stimulating private sector investments in open innovation together with
JIC’s own investment, while fostering 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.

About LP investment in SCJ3
(1) JIC investment Criteria
JIC’s investment criteria* identifies “Driving the creation of new businesses for Society 5.0” as
one of its focus areas. The social implementation of Fourth Industrial Revolution
technologies—such as AI, IoT and robotics, as well as biotechnology, drug discovery,
healthcare, mobility, space, materials, electronic devices and other areas that might become
internationally competitive—need a long-term and large-scale supply of risk capital.
*https://www.j-ic.co.jp/en/investment/criteria/(2) Current status of investment market
Regarding R&D and innovation in Japan, it has been pointed out that a high percentage ofcompanies focus on incremental innovation, and that R&D in pursuit of discontinuous
innovation is limited. From the perspective of creating discontinuous innovation for therealization of Society 5.0, support for startups working on deep tech is extremely important
given its potentially significant contribution to resolving social issues and its need for long-term,large-scale supply of risk capital from the research and development stage through tocommercialization.
Furthermore, domestic R&D and innovation tends to be self-focused, with insufficientcollaboration with external organizations/institutions, including startups. To respond quickly torapid changes in industrial structure and international competition, and to create businesses
that contribute to resolving social issues, domestic companies and others will be expected tobreak away from their self-focused approach and engage in open innovation.

1(3) About SCJ3
As part of its ongoing efforts to foster Japanese unicorns, Spiral Capital has a policy ofinvesting in deep tech; it plans to allocate approximately 30% of its investment in SCJ3 to thisdomain. JIC expects that the LP investment in SCJ3 will provide risk capital to deep-techstartups and promote the creation of new businesses and industries in this area toward therealization of Society 5.0.
Through SCJ3, Spiral Capital plans to support partnerships between its portfolio companies
and domestic companies, utilizing its extensive network and database of large companies. JIC
expects that the LP investment in SCJ3 will promote open innovation and the creation of newbusinesses through collaboration between domestic companies and portfolio company
startups.
In addition, JIC intends to promote fundraising from institutional investors by providing SCJ3
with risk capital as well as support for the development of its structure.

Overview of SCJ3
Name:
Established:
Duration:GP:

Spiral Capital Japan Fund III
2024
10 years (with a possible extension of 2 years)
Spiral Capital LLP

Overview of management company
Name:
Established:
Address:
Representative:

Spiral Capital
2017
Minato-ku, TokyoTomokazu Okuno2

(For reference)
JIC’s fund investment strategy(For reference)
Objectives of JIC’s LP investments
1. Stimulate the supply of risk capital to help companies grow and to enhance their competitiveness
JIC intends to provide capital to areas that are essential from the perspective of strengthening industrial
competitiveness but lack private investment capital (investment strategies, sectors, stages, regions, etc.)with the aim of stimulating private investment capital in the short term and medium-long term.
2. Create diverse investment teams, professionals, and strategies to support a virtuous cycle of risk capital1) Investment teams
JIC promotes growth of the investee funds as a leader in the intermediary of risk capital provided byinstitutional investors (pension funds, foreign investors, etc.) towards the establishment of future funds. This
will be achieved by expanding experience and track records among its fund investment team (managementcompany) and by further improving its ability to respond to institutional investors.
2) Investment professionals
With the cooperation of industry organizations such as JVCA, institutional investors, and investeemanagers, JIC supports the research and introduction of best practices of managers and the developmentof human resources serving as investment professionals.
3) Investment strategy

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JIC will add diversity and depth to the market by making an LP investment in funds even for those withstrategies that are not common in Japan yet, in response to their fund raising, including at the time of its
establishment.

About Japan Investment Corporation (JIC)
Japan Investment Corporation (“JIC”) was established on September 25, 2018 under theIndustrial Competitiveness Enhancement Act. JIC’s investment focus areas are driving thecreation of new businesses for Society 5.0, creating "unicorn startups", leveraging promising
untapped regional technologies and promoting business consolidation across industries andorganizations. JIC provides risk capital to these areas through funds independently established
by JIC and LP investment in private funds to promote open innovation and contribute tostrengthening the competitiveness of Japanese industries and expanding the investment
ecosystem.
URL: https://www.j-ic.co.jp/en/

Press Contacts
Japan Investment Corporation
Corporate Planning, Communications Group:
Okumura (070-3960-3640), Mikado (080-8098-0445)
Tokyo Toranomon Global Square 9F,
1-3-1 Toranomon, Minato-ku, Tokyo 105-0001

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