Equity Engagement in Investment Fund Focused on Central and Eastern European (CEE) Startup Ecosystem
Enhancing Global Competitiveness of Japanese Corporations through Investments in CEE, the "Next Innovation Hub of Europe"

On May 30, the Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) entered into an agreement to participate in ff Red & White (referred to as the Fund), a Luxembourg-based venture. The Fund aims to secure EUR 60 million in funding, with JBIC committing to invest EUR 16 million.

The Fund operates as a venture capital fund with a primary objective of backing startups that contribute to advancements in automation, remote operations, labor-saving solutions, and similar areas within CEE*1. JBIC IG Partners, a collaboration between JBIC and Industrial Growth Platform, Inc. (IGPI), and ff Venture Capital, an established player in the United States and Poland, jointly manage the Fund. JBIC and the subsequent Japanese companies are set to invest in the Fund during its first closing stage:

    Sojitz Corporation
    JGC HOLDINGS CORPORATION
    DMG MORI CO., LTD.
    KDDI CORPORATION
    SBI Holdings, Inc.*2

CEE stands out due to its abundance of highly skilled software engineers, often graduates of institutions specializing in mathematics and computer science. This fact has attracted prominent European and American tech giants, leading to the establishment of R&D hubs and the advancement of cutting-edge technologies. Notably, former employees of these tech giants have embarked on their own entrepreneurial journeys. Additionally, Germany, renowned for its prowess in manufacturing, has pioneered industrial automation technologies. As a result, a wave of promising startups dedicated to Digital Transformation (DX) and related fields, such as automation, remote operations, and efficiency enhancement across industries and business operations, has emerged in the region.

The Fund's mission revolves around supporting Japanese enterprises in realizing their DX goals by fostering collaboration and financial partnerships between CEE startups and strategic Japanese investors. JBIC's equity participation is poised to bolster the international competitiveness of Japanese companies, contributing to their growth and resilience on the global stage.

As a policy-driven financial institution representing Japan, JBIC remains committed to offering financial backing for the continued enhancement of Japan's industrial competitiveness. This is facilitated through a variety of financial instruments, project structuring schemes, and risk-assumption roles, including equity participation and investments, that JBIC is equipped to provide.