Equity Participation in Fund Investing in Startups in Central and Eastern Europe (CEE)
Strengthening International Competitiveness of Japanese Companies through Investments in CEE, “Next Innovation Hub of Europe”

• Region: Europe
• Others
• Equity Investment

1. The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on May 30 an agreement for equity participation in ff Red & White (the Fund) of Luxembourg. The Fund is targeting EUR 60 million, toward which JBIC committed to investing EUR 16 million.
     
2. The Fund is a venture capital fund to invest in startups that will contribute toward technologies for automation, remote operation, and labor-saving, etc., in CEE^*1. The Fund is jointly established and managed by JBIC IG Partners, which is a joint venture between JBIC and Industrial Growth Platform, Inc. (IGPI), and ff Venture Capital, which has a proven track record in the United States and Poland. JBIC and the following Japanese companies committed to investing in the Fund at the first closing.
   
   

   Sojitz Corporation	JGC HOLDINGS CORPORATION
   DMG MORI CO., LTD.	KDDI CORPORATION
   SBI Holdings, Inc.*2

   
     
3. As CEE has a large number of highly skilled software engineers who graduated from universities or academic institutions with expertise in mathematics and computer science, leading European and American tech companies have established their R&D centers and promoted the development of cutting-edge technologies. Recently, the engineers who have worked for these tech companies have started their own businesses. In addition, Germany, one of the world's leading manufacturing nations, has developed technologies related to industrial automation. Therefore, promising startups that contribute to Digital Transformation (DX), such as automation, remote operation, and labor-saving in industry and business activities, are beginning to emerge in the region.
     
4. The Fund will support Japanese companies in achieving DX by promoting business and capital alliance between these startups in CEE and Japanese strategic investors. The equity participation of JBIC is expected to contribute toward maintaining and improving the international competitiveness of Japanese companies.
     
5. As Japan's policy-based financial institution, JBIC will continue to provide financial support for the maintenance and improvement of the international competitiveness of Japanese industry, by drawing on its various financial facilities and schemes for structuring projects and by performing its risk-assuming function, including equity participation and investments.
     

Note

1. *1 
   CEE comprises seven countries: Poland, Hungary, the Czech Republic, Slovakia, Romania, Germany, and Austria.
2. *2 
   SBI Holdings, Inc. commits to the Fund through its subsidiary.