JBIC’s new investment approach goes beyond loans

Breaking new ground through collaboration with the private sector

Although JBIC’s core activity is supporting overseas infrastructure and resource development projects through loans and equity investment, in recent years it has moved proactively into startup investment.

“Building a completely new entity from scratch—the sense of accomplishment is enormous,” says UCHIDA Makoto, JBIC senior managing director overseeing the Equity Finance Group and Energy and Natural Resources Finance Group, chair of the Startup Investment Committee, and an executive director of JBIC IG Partners (JBIC IG).

This all began with the joint establishment of JBIC IG in 2017, an investment advisory firm dedicated to overseas investment, with Industrial Growth Platform, Inc. (IGPI), a strategic consulting firm.

JBIC IG is JBIC's first investment platform established through a joint venture with an external partner. It was able to build practical expertise in supplying risk capital through investment work on the ground that combined IGPI's insights on enhancing corporate value with JBIC's international financial network.

The founding of JBIC IG, which became the starting point for building an institutional framework, and the establishment of a joint management system with a private company were unprecedented challenges. UCHIDA recalls that it was truly a journey of exploration.

“Our relationships with people in venture capital (VC) are also different from those with large corporations. VC operations are a world driven by a ‘collection of individuals.’ Relationships of trust with joint managing partners, the local teams, and the founders of portfolio companies determine success or failure. I keenly felt the importance of pouring time and energy into building mutual understanding, including breaking down cultural and language barriers.”

Successive establishment of funds targeting Europe

One major accomplishment of JBIC IG was the 2019 launch of NordicNinja VC, a VC fund targeting Nordic countries. UCHIDA reflects on its significance: “NordicNinja was launched through JBIC IG, but the initiative was new ground for JBIC itself. The knowledge we gained from NordicNinja was immense.”

The fund was established to promote collaboration between Nordic and Baltic startups and Japanese companies. It has invested in promising companies in fields including cleantech, mobility, and digital technologies, becoming a pioneering collaboration model connecting Japanese technology and corporate networks to European high-growth companies.

Building on this experience, JBIC established the ff Red & White VC fund in 2023 to invest in Central and Eastern European startups. The fund focuses mainly on the region’s seed and early-stage companies (pre-launch and immediately after launch) engaged in industrial digital transformation, automation, and labor-saving. It is also promoting Japan-Europe business partnerships. JBIC built a joint management system with ff Venture Capital, headquartered in New York, and an investment team that includes Polish members was established to enhance team-building and investment decision-making capabilities.

UCHIDA is confident that JBIC’s accumulated strengths can be fully leveraged in startup investment as well.

“In uncertain fields such as investment activities, cultural barriers are often greater than language differences. The ability to operate with local talent as a unified whole is absolutely crucial. Because there are limits to how deeply an all-Japanese team can penetrate local markets, I consider it fundamental to work together with local offices and partners. Indeed, both NordicNinja and ff Red & White have mixed teams with local members.”

This is where JBIC’s strengths—its capability in handling overseas projects, networks spanning 18 locations worldwide, and expertise in analyzing policy and industry data—are put to good use.

“JBIC is known for its ability to create concrete opportunities for collaboration between investment targets and major corporations. Our strength lies in our ability to provide a ‘working conduit,’ a system that effectively bridges Japanese companies' open innovation efforts and promising overseas startups.”

Broader support through amendment of the JBIC Act

At the start of 2022, the government under former Prime Minister KISHIDA declared that year to be the “first year for founding startups” and made startup support a key pillar of Japan’s growth strategy. In response, JBIC undertook institutional reforms.

In April 2023, the JBIC Act was partially amended, enabling direct equity investment in domestic startups.

With the enactment of the amended JBIC Act in October that year, the bank moved ahead with detailed internal deliberations on operational implementation. Studies were conducted over the course of a year to design optimal schemes, set investment areas, and establish a swift decision-making process. This resulted in the formulation of the Startup Investment Strategy in October 2024. At the same time, an investment team to implement the strategy was formed along with the establishment of the Startup Investment Committee.

“The insights gained through VC operations in Europe have become a valuable foundation for feedback to Japan's startup ecosystem,” believes UCHIDA.

Aiming for investments that win on the world stage

Investment is not a matter of deal numbers but their substance. UCHIDA argues that real meaning lies in building a portfolio of successful projects. He places importance on honing an eye for ascertaining whether open, trust-based relationships can be built.

“When meeting with company leaders and founders, we check for ‘integrity’ and ‘energy.’ Of course, they must be managing their business in an honest and sincere manner, but we also look at their passion, perspectives, and how they work with people and drive their organization. We look at their capabilities in overcoming the challenging realities of business—not only their technological strengths, but also product market fit, pricing, mass production and quality control, and team building.”

There is an enormous sense of accomplishment in building something from scratch, but considerable energy is needed to simultaneously advance consensus-building with stakeholders, build trust with the local ecosystem, and facilitate internal decision-making. Nevertheless, the continued efforts taken amid such unprecedented challenges are paying off.

Following the launch of NordicNinja Fund I in 2019, NordicNinja Fund II was established in 2023, and in that same year, ff Red & White commenced operations. IPO and M&A exits to recover investment capital are also on the horizon for multiple projects.

"With growing recognition of NordicNinja in Europe, inquiries from Japanese companies are also increasing. The quality of our portfolio companies has earned acclaim, creating a positive cycle attracting even more high-quality deals and information. We hope to maximize synergistic effects in both Japan and Europe."

UCHIDA has high expectations for young talent who will lead the future. With his eyes on long-term investment activities, the startup investment team includes staff members in their 20s and 30s. Morale is high, and a growing enthusiasm for taking on new challenges is evident.

Although JBIC has a long history, startup investment is still in its nascent stage.

With his eyes on the future, UCHIDA declares, “To steadily build up investments that will produce unicorns, we aim to concentrate resources on promising ventures and cultivate globally successful startups that will be recognized by the market.” JBIC will continue to provide support to ensure that Japan’s open innovation can deliver greater value around the world.

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