KDDI Employees Engage with Cross-Border Startup Program to Enhance Investment Projects

KDDI's Innovative Approach to Employee Development and Startup Support

In an exciting new initiative set to take off in May 2026, KDDI Corporation, a leading telecom company in Japan, is expanding its unique cross-border program, termed "side project." This program encourages employees to engage with promising startup ventures, allowing them to allocate a portion of their work hours to these innovative businesses. It represents a significant stride toward bridging the gap between corporate giants and agile startups, enabling a fruitful exchange of ideas and expertise.

Introduction of the Side Project Program

The recent launch of the ninth phase of the "side project" program, orchestrated by LoanDeal, a company headquartered in Tokyo's Minato, aims to facilitate genuine collaboration between four KDDI employees and startups invested in through KDDI's corporate venture fund, the KDDI Open Innovation Fund (KOIF). This program, lasting three months, enables employees to dedicate 20% of their work time to these startups, ensuring that they remain rooted in their primary jobs while supporting burgeoning businesses.

Addressing Common Corporate Venture Capital Challenges

Corporate Venture Capital (CVC) has seen significant growth in recent years among large companies. However, a notable issue often arises: investments are made, yet meaningful collaboration seldom follows. For true synergy between business entities, a profound understanding at the grassroots level is essential. Nevertheless, there is a scarcity of personnel who can effectively bridge the corporate-startup divide. The "side project" seeks to remedy this by fostering mutual understanding through hands-on involvement in startup operations.

Participation Without Disruption

The structure of the "side project" allows participants to immerse themselves in the world of startups without the disruption of stepping away completely from their corporate roles. With the investment in four startups, KDDI employees will gain valuable insights, enabling them to contribute to these innovative projects meaningfully. The program incorporates a self-reflection component prior to participation, wherein employees assess their aspirations and capabilities, laying the groundwork for personal development during the project.

Comprehensive Learning Experience

As part of the program, employees partake in weekly reports, reflections, and monthly group sessions. This multifaceted approach encourages them to articulate their experiences, fostering a collaborative environment for feedback and learning among participants from various organizations. By moving back and forth between practice and reflection, the experience transcends mere participation, embedding the lessons learned as valuable insights into the participants' professional skill sets.

Simultaneous Talent Development and Business Collaboration

This initiative signifies a paradigm shift in how corporate investments in startups can be executed. By combining financial investment with tangible human resource engagement, the program enhances mutual understanding and paves the way for fruitful business collaborations. The integration of reflective practices surrounding the engagement enriches the participants' ability to continue adding value even after the project concludes. This not only benefits the individuals involved but also contributes to the growth of a dynamic business ecosystem.

Future Prospects and Call for Participation

In 2023, an additional measure was adopted by JR East Startup Corporation to strengthen ties with startups by introducing a rental transfer system for human resources. The dual aim of fostering business growth through external collaborations while nurturing internal talents is paramount. Moving forward, the expectation is that programs like the "side project" will receive greater attention as viable avenues for achieving both objectives simultaneously.

As of now, LoanDeal is inviting companies to participate in the upcoming tenth phase, set to last from September to November 2026. Interested parties are encouraged to reach out to learn more.

For more information on the "side project," visit the following links:

KDDI's Broader Commitment to Open Innovation

KDDI's commitment to supporting promising startups involves substantial strategic investments through the KDDI Open Innovation Fund and collaborative efforts to accelerate co-creation with over 100 business partners through the KDDI MUGENLABO platform. By connecting these dual efforts, KDDI aims to foster a thriving startup ecosystem while exploring new business ventures that hold the potential to reshape the future of the industry in Japan and abroad.

In summary, initiatives like the "side project" not only strengthen networks between corporations and startups but also enhance the capabilities of professionals, setting a foundation for a more collaborative and innovative business landscape in Japan.