Japan's JGC, Global Brain launch $46m VC fund
Japanese engineering conglomerate JGC Group has teamed up with local VC Global Brain to establish a JPY5 billion ($46 million) fund targeting industrial sector technology start-ups.
JGC is investing via its JGC Holdings and JGC Japan Corporation divisions as part of a JPY10 billion start-up agenda. Global Brain, a stage-agnostic investor with a significant US presence, will act as fund manager.
The JGC Mirai Innovation Fund will focus on JGC's social sustainability vision. According to a statement, it will invest in domestic and foreign start-ups focused on achieving carbon neutrality, resilient infrastructure, and smart industries. Technology that improves quality of life in the context of Japan's aging demographics is another core theme. Investees are expected to collaborate with JGC.
Founded as Japan Gasoline in 1928, JGC provides engineering services in industrial areas such as manufacturing, infrastructure, and oil and gas, with offices in 22 cities globally. It has significant technology R&D capacities in energy, chemicals, life sciences, and environmental conservation.
JGC began consulting on environmental issues as early as the 1970s. In recent years, the firm has advanced a more concerted and formalized agenda targeting challenges around population growth, urbanization, and carbon emissions reduction. It backed Tsing Capital's Japan-China Energy Efficiency and Environment Fund in 2011.
Global Brain has agreed several corporate VC partnerships. It has set up two funds with property developer Mitsui Fudosan under the name 31 Ventures, with the latest vintage mobilizing JPY8.5 billion last year. Sony and fellow electronics maker Epson, as well as logistics company Yamato Transport and beer brewer Kirin have all backed similar funds. Each of these had a corpus of JPY5 billion.
Meanwhile, there have been three funds in partnership with telecoms operator KDDI Corporation. The latest of these, KOIF III, aims to invest JPY20 billion by 2023. KOIF I and KOIF II were each JPY5 billion in size. This series has raised capital from LPs other than KDDI.
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