Equity Participation in Fund that Invests in Advanced Technology Companies Mainly in Silicon Valley
Supporting Japanese Companies in Strengthening International Competitiveness through Investments in Venture Capital Fund
- Region: North America
- Equity Participations
The Japan Bank for International Cooperation (JBIC; Governor: MAEDA Tadashi) signed on June 14 an agreement for equity participation in the Geodesic Capital Fund II, L.P. (the Fund), a venture capital fund managed by Geodesic Capital Partners II, L.P., established in the Cayman Islands. In March 2018, JBIC signed an agreement with Geodesic Capital Fund I-S, L.P.*1
for equity participation. This is the second such agreement.
The Fund is to invest in advanced technology companies mainly in the United States. It receives investments from JBIC, Sompo Holdings, Inc., Sumitomo Mitsui Banking Corporation, Mitsubishi Corporation, and others.
Japanese companies are promoting open innovation to increase the efficiency of existing businesses and to create new added value by combining external resources and the company’s internal strength in technology and experience. As part of the effort, they focus on promoting digital transformation (DX), and these efforts are accelerating due to the COVID-19 pandemic.
The Fund is not only to invest in advanced technology companies mainly in the United States, but also to provide Japanese investors with strategic services, such as offering opportunities to form businesses and capital alliances with those companies. The participation of JBIC in the Fund is expected to contribute toward maintaining and strengthening the international competitiveness of Japanese companies.
As Japan’s policy-based financial institution, JBIC will continue to proactively support Japanese industries in maintaining and strengthening their international competitiveness by utilizing various financing tools, including equity participation and investments.