Kanematsu Corporation
Kanematsu Electronics Ltd.
Global Security Experts Inc
Kanematsu Corporation (hereinafter “Kanematsu”), Kanematsu Electronics Ltd. (hereinafter “KEL”), and Global Security Experts Inc. (hereinafter “GSX”) have decided to establish the “Nippon Cyber Security Fund 1 Investment Limited Partnership”, the first fund in Japan to specially invest in security companies, on April 1, 2024 with WERU Investment Co., Ltd. (hereinafter “WERU Investment”) as its general partner.
Against the backdrop of the spread of DX and the increasing sophistication of cyber attacks, all companies and organizations in Japan are urged to respond to and take countermeasures against such attacks. As the number of companies and organizations targeted by attacks increases each year, and the scope and content of countermeasures continue to change, it is essential for security companies to join forces to face the challenges in order to protect Japanese companies from these threats. In addition, a number of security companies have emerged that will continue to grow by offering unique services that utilize AI and other cutting-edge technologies. This fund is "the first fund specializing in the cyber security industry in Japan, in which companies specializing in security invest in security companies," making growth opportunities for the security industry as a whole a reality.
We will continue to encourage companies, financial institutions, and institutional investors in the security industry to participate in the fund, with the goal of establishing a fund with a maximum amount of 10 billion yen.
■Schedule
March 25, 2024 : Signing of the limited partnership agreement
April 1, 2024 : Formation of the "Nippon Cyber Security Fund 1 Investment Limited Partnership" First close
Late June 2024 : Second close
After mid-2024 : Final close
◆Two factors that increase the success rate of portfolio companies
1. Establishment of an "Advisory Board" consisting of security-specialized LP companies (expert evaluation)
This fund is a specialized cyber security fund in which GSX and other companies specializing in security are investing. Within the fund, an "Advisory Board" consisting of LP companies will be established, which will have the function of research and examination (expert evaluation) of potential portfolio companies based on their industry experience and knowledge of trends, to increase the probability of success in selecting companies in which to invest.
2. Support portfolio companies through mutual cooperation among LP companies (professional support)
Each of the LP companies will share their services, sales channels, and management know-how, and provide support to the fund's portfolio companies. The growth of the portfolio companies will be accelerated to better ensure their success.
◆GP (general partner): WERU Investment's investment track record
Born from a university research group established in 1993, the firm is the first university-fueled independent venture capital firm in Japan, focused on seed and early stage investment in technology startups in Japan and abroad. In recent years, the firm served as the lead investor and supported the growth of LeoLabs, a leading provider of orbital data of satellites and space debris, which was spun-out from SRI International (formerly the Stanford Research Institute), one of the world's leading research institutions founded by Stanford University. Within the cyber security domain, the firm is currently supporting Confidencial as its lead investor, which is conducting pilot projects with US government agencies, and has experience in supporting cyber security startups, including in the United States. The Nippon Cyber Security Fund will be managed by drawing on the experience of nearly 30 years of domestic and international investment and more than 20 IPOs since the firm’s establishment.
■Comments by representatives of the four initiating companies
President & CEO/Tadashi Takiguchi, WERU Investment Co., Ltd.
 |
Amid the constantly increasing importance of security for companies and government agencies, this fund will be established with the objective of contributing to the development of the cyber security industry in our country and inducing innovation in the industry. In particular, as international geopolitical risk in Europe and the Pacific Rim has increased significantly in recent years, it is essential to support and adopt high-caliber domestic cyber security technologies, as well as those from overseas, and I hope that the fund’s activities will lead to great dynamism and societal contribution in Japan. |
President & CEO/ Yoshiya Miyabe, Kanematsu Corporation
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Responding to cyber attacks has become an important issue for Japanese companies in recent years. We participated in the formation of this fund as a foothold to develop cyber security solutions for the Group's customer base of approximately 20,000 companies and to evolve the supply chain to a sustainable one. We intend to function as a "solution provider" that transcends the boundaries of a trading company by promoting the formation and development of inter-company alliances among companies in the domestic security industry, which will become LPs, and portfolio startups. |
President & CEO/Akira Watanabe, Kanematsu Electronics Ltd.
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The acceleration of DX for the evolution of Japanese companies and the increasing number of cyber attacks and security measures continue to grow in importance. We believe that our participation in Japan's first fund specializing in security will contribute to raising the level of knowledge and human resources in the security industry as a whole. We have high expectations for expanding our community with endorsing companies through the fund and providing comprehensive security managed services, from consulting to security implementation and operation, as a customer-oriented solution. |
President and CEO/Shiro Aoyagi, Global Security Experts Inc.
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In recent years, with the intensification of cyber attacks, we have seen many customers who unfortunately suffered damages and were left in trouble with no one (security vendor) to consult with while their business activities were suspended. We security vendors need to stand up for them with "ALL JAPAN". The name of the fund reflects this belief. We have decided to establish this fund with a sense of mission that now is the time to increase the number of our partners and protect domestic companies through mutual cooperation. We are confident that this initiative will contribute to the revitalization and value enhancement of the cyber security industry as a whole. |
■Overview of the four initiating companies
◆Weru Investment Co., Ltd.
Official Name: Weru Investment Co., Ltd.
Head Office : Kasuya Building 3F, 65 Kikui-cho, Shinjuku-ku, Tokyo 162-0044
Representative : Tadashi Takiguchi
Paid-in Capital : ¥461 million
Establishment : June 8, 1998
Web SIte URL : https://www.weruinvest.com/
◆Kanematsu Corporation
Official Name : Kanematsu Corporation
Head Office : JP TOWER, 7-2 Marunouchi 2-chome, Chiyoda-ku, Tokyo 100-7017, Japan
Representative : Yoshiya Miyabe
Stock code : 8020
Stock Exchange listing : Prime Market, Tokyo Stock Exchange
Paid-in Capital : ¥27,781 million
Establishment : March 18, 1918
Web Site URL : https://www.kanematsu.co.jp/en
◆Kanematsu Electronics Ltd.
Official Name : Kanematsu Electronics Ltd.
Head Office : Kyobashi-MID Bldg. 13-10 Kyobashi 2-chome, Chuo-ku, Tokyo 104-8338
Representative : Akira Watanabe
Paid-in Capital : ¥9,031 million
Establishment : July 23, 1968
Web Site URL : https://www.kel.co.jp/english/
◆Global Security Experts Inc.
Official Name : Global Security Experts Inc.
Head Office : 4th Floor,1-15-1 Kaigan, Minato-ku, Tokyo, Japan, 105-0022
Representative : Shiro Aoyagi
Srock Code : 4417
Stock Exchange Listings : Growth Market, Tokyo Stock Exchange.
Paid-in Capital : ¥543 million（End of December 2023 ）
Establishment : April, 2000（The date of trade name change to Global Security Expert）
Web Site URL : https://www.gsx.co.jp/english/
*All company and product names mentioned herein are trademarks or registered trademarks of their respective companies.
Contact:
WERU Investment Co., Ltd./Business Development and Research Dept.
TEL :+81-3-5272-0471 https://www.weruinvest.com/contact/
Kanematsu Corporation/Public & Investor Relation Section
TEL：+81-3-6747-5000 https://www.kanematsu.co.jp/en/inquiry/
Kanematsu Electronics Ltd./Corporate Planning Dept.
TEL：+81-3-5250-6821 info@kel.co.jp>
Global Security Experts Inc./Marketing Section. Strategic Management Dept.
TEL：+81-3-3578-9001 MAIL：mktg@gsx.co.jp