Feature ArticleSTARTUP SUPPORT TO BUILD THE FUTURE
Kyuden International Corporation (KIC), a subsidiary of Kyushu Electric Power, also wears the hat of an investor and places importance on nurturing new business seeds through partnerships. The company has set its sights on Europe’s startups, taking a stake in a German venture introduced by the NordicNinja investment fund, in which it also has a stake.
Members of the German startup LiveEO joined Kyuden Group teams in the mountains of Saga Prefecture, Kyushu, for on-site verification. “That’s the kind of hands-on partnership we aim to have with startups,” says ARAKI (front row, far left).
Exploring open innovation by focusing on European startups
As more Japanese companies invest in unlisted startups, their objectives vary widely. At Fukuoka-based KIC, the Kyuden Group's overseas business arm, the mission is to "explore new technologies and business models, and grow new business ideas by working with partners," says ARAKI Toshirou, the company's Business Innovation Unit general manager.
In recent years, KIC has been expanding its energy solution business to North America and Europe, while maintaining a strong foothold in Asia. Its Business Innovation Unit, established about five years ago, is dedicated to new business creation, with a particular focus on European startups.
KIC invested in NordicNinja VC in 2023, marking a more systematic commitment to open innovation by actively adopting external ideas and technologies. Through this fund, KIC was introduced to dozens of companies excelling in digital transformation and sustainability, gaining insights while seeking partnership opportunities. According to ARAKI, “NordicNinja’s insight, decisiveness, and unwavering trust in their portfolio companies have been inspiring.”
In spring 2025, KIC formed a business alliance with LiveEO, a German startup that uses AI technology to analyze satellite data for forest management, infrastructure inspection, and monitoring. A proposal to the Kyuden Group's power grid operations led to a demonstration test aimed at improving maintenance efficiency. Kyuden has been relying heavily on manual labor to maintain and manage its many transmission lines in mountainous areas.
"Infrastructure companies like ours tend to be cautious about full-scale adoption of new technologies," notes ARAKI. "Starting small, validating value, and gaining on-site buy-in was a significant first step."
When partnering with overseas startups, KIC emphasizes the importance of “clearly defining objectives— explaining why collaboration matters and what new value both sides aim to create together,” says ARAKI Toshirou, General Manager of Kyuden International’s Business Innovation Unit.
“Working up a sweat together” with German startup LiveEO
One particularly memorable episode saw members of the grid operation maintenance team, KIC, and LiveEO conduct risk assessment on power lines during a hot summer downpour in the mountains of Saga. For KIC, which values building close working relationships that go beyond the investor-recipient dynamic, this was literally “working up a sweat together.” The partnership is now considering expanding from Kyushu to the wider Japanese market, establishing joint sales initiatives, and exploring horizontal expansion into other infrastructure sectors, such as railways.
KIC has also invested in startups across the U.S., Europe, and Asia in fields such as microgrids and solar power, guided by a clear investment policy. While some corporate venture capital arms prioritize financial returns alone, KIC pursues both strategic and operational gains alongside economic returns to drive innovation. This approach offers one model for how Japanese major corporations can invest in startups, and how such collaborations can accelerate corporate transformation.
General Manager, Business Innovation Unit
New Business Department, Global Strategy Division
Kyuden International Corporation
ARAKI Toshirou
Joined Kyuden Group in 1994. After years in power grid operations as an engineer, including local energy management in cooperation with local governments and companies, he assumed his current post in 2023.
