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We are looking for promising startups with whom we can invest in and collaborate!

Toyo Kanetsu Corporate Venture
Investment Partnership (TKCV)

Guide for Equity Investments and Business Alliances

What is TKCV?

  • The Toyo Kanetsu Corporate Venture Investment Partnership (TKCV) is a corporate venture capital fund established by Toyo Kanetsu K.K. (listed on the 1st section of the Tokyo Stock Exchange) in October 2017.
  • As a general partner (GP), TC Consulting Co., Ltd. acts to search, review, invest, and follow-up to investee companies. Toyo Kanetsu K.K., a limited partner (LP), is also partially responsible for these tasks.
    TC’s Corporate Web
  • We vigorously promote open innovation and collaborate with startup companies to aim for the launch of new business that will lead to future prospects.
Calling all Promising Startups in Japan and the United States!
Let’s Join into an Alliance with Toyo Kanetsu Group!
TKCV will actively invest in private equity!
Currently, we are looking for startups that will collaborate with the Toyo Kanetsu Group to develop new products, new services, and new business!
TKCV

The 5 Main Features of the Fund

  • We invest in startups leading to new business

    We will actively invest in unlisted venture companies with technologies and business seeds leading to new business of the Toyo Kanetsu Group! We will also invest in companies outside of Japan, mainly California, USA. We focus on the possibilities of alliances and future growth, not current sales and profits.

  • AI, IoT, and Robotics are the main target fields

    We are mainly targeting startups related to artificial intelligence (AI), Internet of Things (IoT), and robotics. However, we will still boldly invest in fields not related to the existing business of the Toyo Kanetsu Group if there is a possibility that it will lead to a new business.

  • We expect collaboration rather than a financial return

    For investment, we do not ask solely for financial return. We also do not ask for IPO (Initial Public Offerings) to an investee company. We hope the investee companies would collaborate with Toyo Kanetsu Group and contribute to new business! We also hope that overseas companies will be granted the right and a contract to sell their products or services to Japanese customers and operate their business model in Japan.

  • We seek long-term stable shareholders as an alliance partner

    The investment amount is 10 to 100 million yen (90 thousand to 900 thousand USD) per company. Because TKCV is a fund, there is a deadline period of 5 years and 3 months (MAX 7 years 3 months), but the shares of investee companies with good relationships will continue to be held in the main body of Toyo Kanetsu K.K. or the next fund even after the fund deadline. The fund would be a stable shareholder of the investee companies.

  • We expect internalization into the group or growth as an independent entity

    As a final EXIT for our investment, we expect (1) a pattern to join the Toyo Kanetsu Group (incorporation as a new business project), or (2) a pattern to grow as a related subsidiary and independent entity. Moreover, it is also an option to grow on a standalone basis such as by IPO.

Purpose of Corporate Venture Capital (CVC)
Establishment for TKK

TKK’s Problems Common Check-in Counter Baggage Claim issues in new business developments

  • Limitation of the in-house
    innovation

    Due to rapid technological innovation, there are limitations in R&D and ideas in-house, with progress also being slow

  • Commoditization of existing
    technologies

    The source of added value of enterprises tends to shift from manufacturing to planning, development, and service

  • Innovator’s dilemma

    Due to having existing products and customers, it is difficult to create destructive innovations

  • Changes in startups’ position

    From the vertical industrial structure (subcontracting structure) to the era of cooperation and collaboration between large enterprises and startups

Increase in the importance of having contacts with startups
with innovative technologies and ideas

  • Collaboration with startups by establishing a CVC to realize open innovation
  • Acquirement of the seeds that will be our next profitable business and launch them as new business developments

Who is Toyo Kanetsu K.K. (TKK) as a Limited Partner?

  • Toyo Kanetsu K.K.http://www.toyokanetsu.co.jp/global/

    Contruction of new LNG tankContruction of new LNG tank Maintenance WorkMaintenance Work

    The top manufacturer of large tanks for LNG (Liquefied Natural Gas), LPG (Liquefied Petroleum Gas), crude oil, etc. listed on TSE 1st section (securities code: 6369). Founded in 1941. We boast the second largest such manufacturer in the world.
    We have a respectable relationship with major Japanese energy companies, engineering companies, major construction companies, and so forth. We have overseas subsidiaries in Indonesia, Malaysia, and Singapore.
    In addition to Toyo Kanetsu Solutions K.K. shown on the right, we have several affiliated subsidiaries including Toyo Koken K.K. for industrial equipment such as winches, hoists, and balancers, Toyo Kanetsu Builtec K.K. for construction, gondolas, scaffolds, etc., and Toyo Service System K.K. for office support and real estate management. Our total consolidated group employees total approximately 900 people.

  • Toyo Kanetsu Solution K.K.http://www.tksl.co.jp/en/

    Sorting SystemSorting System Picking & Allocating SystemPicking & Allocating System Check-in CounterCheck-in Counter Baggage ClaimBaggage Claim

    Toyo Kanetsu Solutions K.K. was established in 2002 as a wholly owned subsidiary through a newly established company split from TKK.
    It is a leading company in planning, designing, manufacturing, construction, selling and maintenance of physical distribution systems mainly focused on material handling. Our customers include major EC operating companies, major manufacturers, major retail and wholesalers, airports, Co-op, and 3PL (Third Party Logistics). We provide the baggage handling systems(BHS) which have 90% market share in Japan. We are eager to use AI (Artificial Intelligence), IoT, and robotics in logistics systems.
    As the needs for logistics efficiency and labor savings continually increase, we aim to introduce cutting edge technologies including those technologies to logistics systems. For example, IoT systems for failure prediction is a demanded solution.

  • Toyo Kanetsu currently holds abundant internal reserves, and in November 2016, set a new business investment frame (M&A and venture investment) of 4 billion yen (36 million USD).
  • Among them, on October 1, 2017, the fund was established. We are working on making new business developments following upon our two business pillars of large storage tanks and logistics systems.

Outline of Toyo Kanetsu Corporate Expected Investment Stories and Exit Strategies Venture Investment Partnership

  • Form and basis

    Voluntary association on civil law (two-part union of Toyo Kanetsu K.K. and TC Consulting Co., Ltd.)
    TC’s Corporate Web

  • Total fund amount

    500 million yen (4.5 million USD) (Toyo Kanetsu: 499 million yen, T.C. Consulting: 1 million yen)

  • Operating period

    October 1, 2017 to December 31, 2022 (5 years 3 months)

MAX 7 years and 3 months possible due to a MAX 2-year extension
Targeted assets for investment
  1. Unlisted promising startups both in Japan and in the United States, mainly California
  2. LP portions of other venture capital investment fund
  3. The main business domains and technological fields are expected to be artificial intelligence (AI), IoT, and robotics.
Goals and expected achievements
  1. Strive for promoting new business developments by acquiring new technologies and business seeds for the next revenue business.
  2. Not only financial returns as investment funds are required, but also collaboration with startups for new business developments are expected.

Exit Strategy

  • Expected Investment Stories and Exit Strategies

    Investees are acquired and imported by TKK as a division, project, or subsidiary inside the TKK Group
    Rather than allowing startups to grow on independently, when the startup has progressed to a certain stage, we will incorporate the startups inside TKK Group and then expand their business as an internal business development project.
    Investees grow as independent entities outside TKK
    If it is judged that it is better to grow the startups themselves as independent corporation entities or when they wish, TKK will not import them internally and develop invested startups as affiliated companies of which TKK holds a minor share or just invested companies with which TKK have a collaborative relationship.
    Development and production of new services or products are outsourced for the TKK Group
    In investing in companies that possess AI engineers, etc., the startups are responsible for developing services or products that will become new businesses for the TKK Group. This pattern is associated with pattern 1 or 2 above.
  • Two Expected Types of CVC Investment as a Function of New Business Developments

    Substitution of business development inside TKK
    The activity of developments of new business, services or products originally within the TKK Group would be entrusted to investee startups and then the investee startups conduct trial and error (namely PDCA) of launching a new business.
    The type of CVC investment for this purpose is defined as “substitution type” of business developments inside the TKK Group.
    Complementary type for new business development in the TKK Group
    At the time when the TKK Group tries to launch new business, if the group lacks certain functions, technologies, and so on, CVC funds will invest in some startups to aim to acquire these functions and technologies from them. The type of CVC investment for this purpose is defined as “complementary type” of business developments for the TKK Group.

Members

Cooperation with UC San Diego / JFIT

TKCV is cooperating with The Japan Forum for Innovation and Technology (JFIT) at the University of California San Diego(UCSD) to seek out promising startups in California as a potential investee and alliance partner. This fund is a member of the 3i Corporate Membership Program. Dr. Satoshi Tomita, chairman of the investment committee and Mr. Akira Kakihara, member of the committee will visit and stay in San Diego every 1~2 months for a week at a time. We are aiming to invest in startups, mainly in the fields of AI, IoT, and robotics related to UC San Diego.

Members of the Investment Committee

Chairman(Main investment officer in the key-man clause)

Satoshi Tomita Dr. Tomita’s profile

President and CEO, TC Consulting Co., Ltd TC’s Corporate Web

Educational Background
Ph.D. in Media and Governance, Keio University
MA in Economics, Kyoto University
BA in International Policy Management, Keio University
Business Career
Through an American bank, he participated in the launch of an independent venture capital. He invested in many startups that led to IPO, and the VC itself also achieved IPO. He was formerly an assistant professor (venture capital theory) at Osaka City University and in charge of investment in VC funds at Sumitomo Trust and Banking. From 2008, he established his new consulting firm and has been providing his consulting services to more than 180 companies. His areas of expertise are making corporate alliances and new business developments. From 2017 he has held the position of professor at Graduate School of Business Administration (MBA course) of Rikkyo University in Tokyo. He is teaching alliance strategy theory, management of technology, and commercialization of IoT and applied AI. As an author he has several published books including “Textbook of new business developments: for business leaders to get a competitive advantage”, “Alliance Strategies in the IoT era: The evolution of artificial intelligence and proposal of mathematical matching models”, and “The venture capital cycle”.

Members of Investment Committee

  • Keisuke Kodama

    Director and Senior Executive Officer
    Division Manager / Corporate Management Division
    Toyo Kanetsu K.K.

  • Tetsuya Watanabe

    Senior Executive Officer
    Deputy Division Manager / Corporate Management Division
    Toyo Kanetsu K.K.

  • Akira Kakihara

    Executive Officer & General Manager
    Corporate Planning Department
    Toyo Kanetsu K.K.

Contact

Please feel free to contact us
Contact us

  • TC Consulting Co., Ltd.http://www.tcconsulting.co.jp/english

    Satoshi Tomita, President & CEO
    Minami Aoyama Bldg. 7F, 2-11-13 Minami Aoyama Minato-ku,
    Tokyo 107-0062, Japan
    (On Aoyama street in Gaienmae. 5 minutes walk from Gaienmae station or Aoyama 1chome station on the Ginza subway line)

    E-Mail tkcv@tcconsulting.co.jp
    TEL +81-3-6455-5255 FAX +81-3-3470-8538
  • Toyo Kanetsu K.K.http://www.toyokanetsu.co.jp/global/

    Shintaro Yoshizawa, Corporate Planning Department
    11-1, Minamisuna 2chome, Koto-ku, Tokyo 136-8666, Japan
    (5 minute walk from Toyocho station on the Tozai subway line)

    E-Mail tkk-cvip@toyokanetsu.co.jp
    TEL +81-3-5857-3153 FAX +81-3-5857-3171