Equity Participation in Fund That Invests in Early-Stage Startups in Deep Tech Sector Mainly in United States
Strengthening International Competitiveness of Japanese Companies through Investments in a Fund Based in United States, Leading Deep Tech Sector

• Region: North America
• Others
• Equity Investment

1. The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on April 23 an agreement for equity investment in the Geodesic Alliance Fund, L.P. (the Fund) of the British Cayman Islands, in which Geodesic Investments, L.L.C. (Geodesic) in the United States (the U.S.) is involved in the management^*1.
     
2. The Fund, a U.S.-based venture capital (VC) fund structured and operated by Geodesic, will invest in early-stage startups in the deep tech sector^*2, mainly in the U.S. In addition to JBIC, NEC Corporation, etc. will participate in the Fund at the first closing.
     
3. In the U.S., private sector innovation is progressing in deep tech fields such as space and robotics within the world's leading startup ecosystem. Governmental agencies are actively investing in deep tech fields and public-private collaborations adopting consumer technologies are deepening. As a result, the U.S. now leads the world in deep tech-related investment, technology development, and commercialization.
     
4. For Japanese companies with deep tech-related businesses, it is becoming increasingly important to form partnerships with VCs possessing expertise and networks in this field, in order to collaborate with startups in the U.S. and other countries, and to seize business opportunities. The Fund aims not only to invest in early-stage deep tech startups mainly in the U.S., but also to provide Japanese strategic investors with strategic services by promoting business partnerships with such startups. Since a VC fund that specializes in this field and provides such strategic services to Japanese companies is rare, this equity investment of JBIC is expected to contribute toward maintaining and strengthening 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 industries by utilizing its various financial facilities and schemes for structuring projects, including its equity participation function, and by performing its risk-assuming function.
     

Note

1. *1 
   This equity investment provided to the fund structured and operated by Geodesic, follows those made to Geodesic Capital Fund I-S, L.P. in March 2018 and Geodesic Capital Fund II, L.P. in June 2021. 
2. *2 
   Deep tech is technology based on scientific discoveries made through research in specific fields of natural science. If it can be commercialized and implemented, it has the potential to significantly impact society by solving economic and social issues that need to be addressed by countries and the world as a whole. It includes AI, space, robotics, automation technology, and others.