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AKaFUJI: Blending Local Strengths with Startup Innovation

A newly founded venture capital firm, AKaFUJI, is making waves in Japan's investment landscape by announcing the initiation of its first fund worth 3 billion yen in collaboration with Shizuoka Capital Co., Ltd. Headquartered in Shibuya, Tokyo, AKaFUJI aims to harness the region's unique assets and capabilities through innovative startup solutions. The firm is led by co-representatives Masahiro Hattori and Kentaro Nagahara, both of whom bring extensive experience in venture capital and startup development.

Purpose and Vision: Addressing Japan's Challenges

Japan is currently grappling with significant structural challenges, including a declining workforce due to an aging population and an increasing shortage of personnel in the healthcare and nursing sectors. Additionally, issues such as low energy self-sufficiency and regional disparities have raised important questions about the country's sustainability. Despite these obstacles, AKaFUJI sees these challenges as catalysts for growth and innovation.

Japan is home to an array of distinctive assets that can be leveraged for future advancement. The country boasts advanced manufacturing prowess in robotics, sustainable technologies that coexist with nature, and progressive agricultural innovations driven by its rich environment. AKaFUJI aims to connect these robust regional foundations with the flexibility and creativity of startups, fostering a collaborative approach that enhances both industries and employment in local communities while establishing new growth avenues for the Japanese economy.

Investment Strategy of the Fund

The AKaFUJI fund will focus on three primary areas:
1. AI, Deep Tech & Industry DX: Investing in rapidly evolving technologies such as AI, robotics, and mobility, which have the potential to revolutionize industrial structures. The fund's long-term investment scheme allows for support from the research phase onwards, benefiting early-stage companies.
2. Global Entertainment & IP: Where Japan holds competitive advantages, particularly in anime, IP, and other entertainment sectors. AKaFUJI will emphasize projects that engage in collaborations with local enterprises, ensuring that investments create reciprocal economic windfalls for the local economies.
3. Sustainability & Regional Assets: Committed to green technology and the efficiency of primary industries such as agriculture and fisheries, AKaFUJI aims to enable sustainability within regions while addressing societal challenges.

Shizuoka: A Hub of Innovation

Shizuoka, where one of the co-founders hails from, is known for its formidable manufacturing output and diverse industry cluster, representing a microcosm of Japan's economic landscape. Its outstanding accessibility to the greater Tokyo area and rich tourist resources make it an ideal testing ground for startups. With the support of Shizuoka Financial Group's extensive regional network, AKaFUJI is positioned to facilitate significant collaborations between startups and local companies.

About AKaFUJI

AKaFUJI is a unique venture capital firm led by managing partners from diverse backgrounds, including financial, independent VC, and corporate sectors. Beyond financial investments, the firm prides itself on offering precise business development support backed by practical experience. Both partners bring a wealth of experience, having invested in over 100 companies and achieving approximately 40 successful exits, including nine IPOs.

Profiles of the Managing Partners

• - Masahiro Hattori: Having joined SMBC Venture Capital during its inception, Masahiro has been actively involved in VC since the aftermath of the Lehman Shock, investing in over 80 companies exemplifying strong disciplined investment judgment.
• - Kentaro Nagahara: With more than ten years of startup investment experience at CyberAgent, DBJ Capital, and Delight Ventures, Kentaro has steered investments in around 30 companies, specializing in providing strategic support to early-stage entrepreneurs.

Fund Details

• - Established: January 28, 2023
• - Fund Name: Deep Blue 1st Investment Limited Liability Partnership
• - Fund Size: 3 billion yen
• - Target Investments: Domestic and international startups looking to cooperate with Shizuoka companies and governments
• - Investment Instruments: Common stock, preferred stock, stock options, and convertible bonds
• - Fund Duration: Ten years (with the possibility of extending for up to five additional years)
• - Investment Per Company: Determined individually based on the investment stage and nature of the business.

In conclusion, AKaFUJI stands poised to transform Japan's startup ecosystem by effectively merging local assets with groundbreaking innovations, setting the stage for sustainable growth and success in the region.