Establishment of "Plug and Play Japan Fund I" to Support Startups Going Global

Plug and Play Japan has established the investment limited partnership "Plug and Play Japan Fund I" to support the global expansion of startups in Japan. For the first close, they have received investments totaling over 3 billion yen from MUFG Bank, Organization for Small & Medium Enterprises and Regional Innovation, Tokyu Land, and SAZABY LEAGUE. They aim for a total fund size of 5 billion yen and will continue activities toward the final close in parallel with fund management.

Background and Purpose of "Plug and Play Japan Fund I"

Plug and Play was founded in Silicon Valley in 2006. To date, they have invested in more than 2,000 companies including PayPal, Dropbox, and Guardant Health, produced over 30 unicorn companies, and established themselves as one of the world's most active investors. In Japan, since their entry in 2017, they have built a unique ecosystem through open innovation activities including accelerator programs and have invested in more than 20 companies through their own account. Through these activities, they have witnessed firsthand the enormous opportunity loss caused by the lack of access to overseas markets in Japan's startup ecosystem and its challenges and limitations. To create unicorn companies originating from Japan, it is essential for Japanese startups to expand overseas in addition to their excellent technology. Investors who can provide support with the global market in mind, depending on the industry, business content, and stage of investment, are needed. "Plug and Play Japan Fund I" aims to support Japanese startups that can compete globally and produce unicorn companies originating from Japan by leveraging their global investment track record, recognition, network, and startup support know-how.

"Plug and Play Japan Fund I" will operate as a fund specializing in the Japanese market under the mission "The fund that connects Japan to the world." This fund will invest in seed and early-stage startups in Japan and some overseas startups with high affinity to the Japanese market and cutting-edge technology.

About 80% of this fund will be allocated to investing in domestic Japanese startups, leveraging Plug and Play's extensive global network and track record to provide hands-on support for overseas expansion and create collaboration opportunities with large companies. The remaining 20% will be allocated to investing in overseas startups with high affinity to the Japanese market and cutting-edge technology.

By providing access to major Japanese companies and the startup ecosystem, they aim to accelerate business expansion in the Japanese market and contribute to improving Japan's technological capabilities.

Features of "Plug and Play Japan Fund I"

This fund will maximize the following strengths of Plug and Play to accelerate the growth of portfolio startups:

• Support for overseas expansion through a global network of more than 60 locations
• Collaboration support between startups and large companies leveraging a network of more than 550 domestic and foreign large companies
• Providing opportunities for various EXIT methods such as M&A to overseas large companies and IPO in overseas markets