1. We also are a venture enterprise
Started from zero by our Founder, Yoji Kawake, our company is a venture enterprise that continues to grow. To foster our growth, our employees take risks in tackling important new challenges, and so they possess practical experience of the unavoidable problems that venture enterprises encounter. Thus, having learned first-hand, they are able to offer sincere and appropriate advice and solutions to portfolio companies.
2. Focus on regional development
We are expanding our activities positively through regional hubs across Japan.
On the face of it, it could be seen as costly and inefficient to establish bases and locate staff in such a way, and it may be felt that e-mail, telephone, and occasional business trips from a central base of operation are sufficient for dealing with regional affairs.
However, by forming a close network on the ground with key regional players, such as local governments and financial institutions, we are able to uncover and gather abundant information on promising venture enterprises that would go unnoticed from afar. Moreover, to provide precise and timely support to portfolio companies, especially at the high risk early stage, it is important to meet frequently with managers.
Therefore, to build and strengthen the mutual trust indispensable to our portfolio companies’ and our own success, we have established regional offices to facilitate regular communication and on-site support.
3. Investment in early stage enterprises
We invest positively in venture enterprises in early stages.
It must be acknowledged that early stage venture enterprises bring greater investment risk as they have yet to establish stable business foundations. However, if such risks are not taken, the substantial returns expected from a VC fund cannot be generated.
Moreover, many early stage enterprises face great difficulty in raising capital from traditional sources because they lack creditworthiness. But, isn’t offering capital to high growth potential enterprises, regardless of their creditworthiness, what venture capital is for?
We believe it is our role to invest positively and to lend support to early stage ventures, and that by doing so, significant benefits can be generated for the venture enterprise, for investors, and for the wider society.
4. A high ratio as lead investor
After initial investment, we continue to offer our advice, expertise, and network to support the portfolio company’s management team.
In order to provide and make such support effective, it is essential that we are able establish greater mutual trust and more open communication with the portfolio company’s management team than other VC investors. Therefore, when assessing a potential investment, we always consider seriously whether we will be able to support it as lead investor (*).
The investor that plays the most central and active role in terms of arranging finance, providing management support etc.