#Japan #Tokyo #Venture Debt #Funds Startups #COPY Inc.

Funds Startups Partners with COPY Inc. through Venture Debt

Funds Startups, headquartered in Shibuya, Tokyo, under CEO Hiroshi Maekawa, recently announced a significant venture debt investment into COPY Inc., an AI startup originating from the University of Tokyo and Inria in France. COPY Inc., based in Chiyoda, Tokyo and led by CEO Kohei Yamamoto, is dedicated to implementing artificial intelligence (AI) technology within mission-critical domains, utilizing explainable AI (XAI) and quality verification for AI (QAAI) technologies.

Investment Background

The decision to invest in COPY Inc. arises from the company's strong foundation in XAI and QAAI technologies, aiming to facilitate AI adoption in sectors where failure is not an option. COPY is currently developing solutions through their flagship product, 'CONFIDE', which supports AI development, operational management, and quality assurance. This business model includes SaaS offerings (AI products/licenses) alongside support services (AI R&D/DX).

In businesses like COPY that operate both SaaS and support services, a stable revenue base from these support services allows for growth through debt financing alongside equity funding. It's important to note that startups may face unique financial needs that traditional lending institutions cannot fully address, particularly as they progress through different growth stages.

Funds Startups is committed to helping diverse startups like COPY select optimal financing strategies tailored to their specific business characteristics, and this venture debt investment was driven by a desire to accelerate growth through debt financing based on COPY's robust technological foundation.

About COPY Inc.

COPY Inc. operates under the mission of "saving lives and enhancing equality through advanced AI technology", targeting AI implementation in mission-critical areas where failure is not an option. They focus on quality assurance essential for real-world AI deployment, concentrating on enhancing explanatory capabilities using XAI and verifying robustness and vulnerabilities in real environments using QAAI technologies. Their efforts extend to developing comprehensive algorithms and solutions.

In collaboration with the New Energy and Industrial Technology Development Organization (NEDO), COPY is working on setting standards for AI safety and management necessary for controlling and utilizing generative AI appropriately.

Comments from Leaders

Kohei Yamamoto, CEO of COPY Inc. expressed deep gratitude for the support provided by Funds Startups through venture debt, acknowledging the importance of XAI and QAAI technologies in safely deploying AI in mission-critical fields. He emphasized that the evolving demands of AI require more than traditional design principles; sustainable design thinking is essential to operationalize their advanced technologies effectively in real-world scenarios.

This support from Funds Startups represents not only financial backing but also emphasizes a shared commitment to achieving a future where AI is safely and confidently accepted by society. Yamamoto is determined to lead the industry in developing AI that aligns with operational standards, ensuring a seamless integration of technology into societal functions.

Mami Ohara, Principal at Funds Venture Debt Fund, also highlighted the significance of adopting AI in mission-critical domains. She noted that as the world increasingly emphasizes the importance of AI safety, COPY Inc.'s advancements in XAI and QAAI technologies are critical to overcoming structural challenges. As these requirements become more pressing, Fund Startups is proud to support COPY's mission-driven efforts and looks forward to their contributions to the industry worldwide.

About Funds Startups

Funds Startups, a wholly-owned subsidiary of Funds Inc. established in December 2023, aims to create a framework through which startups can achieve ideal growth while generating social impact. Positioned as the General Partner for the Funds Venture Debt Fund, they focus on fund operations and providing financing support to startups. In the future, they plan to expand their role in diversifying funding methods for startups, akin to an investment banking arm specialized in this sector.