#Japan #Fukuoka #Innovation Fund #Kraftia #Spiral Innovation

Spiral Innovation Partners Collaborates with KRAFTIA to Launch Innovation Fund

In a significant move towards transforming the construction industry, Spiral Innovation Partners, a subsidiary of Spiral Capital, has teamed up with KRAFTIA to establish a new Corporate Venture Capital (CVC) fund known as the KRAFTIA Innovation Fund. This fund, which amounts to a substantial 5 billion yen, aims to address societal challenges by leveraging green innovation and advanced digital technologies, targeting the construction sector for major changes in industry practices and value creation.

Background and Purpose of the Fund

With an impressive lineage of supporting collaboration between large corporations and startups, Spiral Innovation Partners has launched multiple CVC funds that promote industry reform and the creation of new businesses. The debut of the KRAFTIA Innovation Fund coincides with KRAFTIA's rebranding for its 80th anniversary, previously known as Kyudenko, under the motto Craft × Innovation × Action. This new partnership is designed to foster open innovation in the construction industry, responding to major structural changes affecting sectors such as construction, energy, real estate, and urban development.

The construction industry is currently facing numerous challenges, including labor shortages, demands for improved productivity, and the urgent necessity to transition towards carbon neutrality. The KRAFTIA Innovation Fund aims to harness KRAFTIA's extensive technological capabilities, field assets, and customer networks, combined with Spiral's expertise in startup support, to instigate transformation from the ground up.

Investment Themes and Focus Areas

The KRAFTIA Innovation Fund is poised to make investments in four critical themes aligned with KRAFTIA's visionary objectives:
1. Green Innovation: Focusing on renewable energy, energy storage, and carbon-neutral technologies.
2. AI & Digital: Targeting industry transformation technologies such as AI, IoT, robotics, and autonomous vehicles.
3. Construction Technology: Including technologies that enhance on-site operations, such as digital transformation of construction sites, 3D CAD, BIM, and matchmaking platforms.
4. Real Estate and Urban Development: Investing in smart buildings, urban development digital transformation, digital twins, and services that address local challenges.

Co-Creation and Asset Utilization

What sets the KRAFTIA Innovation Fund apart is its commitment to not just investing but actively engaging in co-creation and practical implementation within the construction sector. Leveraging KRAFTIA's technical prowess in facility construction, a skilled workforce of around 2,000 technical experts, and a vast customer base comprising commercial and public facilities, the fund will drive pilot projects and social implementations in collaboration with startups.

Spiral Innovation Partners is dedicated to supporting the entire journey from investment to growth, implementing an integrated approach that fosters new industrial transformation models starting from the construction industry.

Official Comments and Future Outlook

Kazuhira Kamata, General Partner at Spiral Innovation Partners, expressed immense pride in the launch of the KRAFTIA Innovation Fund, emphasizing the significance of collaborating under KRAFTIA's guiding principles of Craft × Innovation × Action. He stated, “We are honored to have established this fund which will foster industrial transformation beyond the confines of the construction sector. The KRAFTIA Innovation Fund will connect the innovative energy of startups with KRAFTIA’s operational strengths to co-create a new future for society and industry.”

Fund Overview

• - Fund Name: KRAFTIA Innovation Fund
• - General Partner (GP): Spiral Innovation Partners LLP
• - Limited Partner (LP): KRAFTIA Inc.
• - Total Managed Amount: ¥5 billion
• - Investment Areas: Focused on green innovation, AI & digital technologies, construction tech, real estate, and urban development, along with other solutions to societal issues.
• - Investment Amount: Approximately ¥200 million per investment
• - Website: KRAFTIA Innovation Fund

About Spiral Innovation Partners

Spiral Innovation Partners operates under the umbrella of Spiral Capital, an independent venture capital firm, focusing on the operation of CVC funds and supporting open innovation. To date, it has successfully pushed for co-creation between large corporations and startups across various industries, including logistics, housing, insurance, and finance. The establishment of the KRAFTIA Innovation Fund represents a strategic expansion into the construction industry as a new area for collaboration and innovation.

For further information, please visit the official Spiral Capital Group website.