JAPAN CVC SUMMIT 2024: How to Use CVC in Global Strategy <Session Report>

As the establishment of corporate venture capital (CVC) accelerates among large corporations, more companies are beginning to intensify investments in overseas firms. At the "JAPAN CVC SUMMIT" held on July 2, 2024, Hiroshi Nishikiori, President of Toshiba Tec Corporation, Kohei Yamamoto, Managing Partner of X&KSK Fund, and Daiki Kanayama, Director of Strategy at I&CO, discussed global CVC activities and the key points to success. The moderator was Kazunori Yamada, CEO of FIRST CVC Inc.

Global Investment Perspectives from CVC, VC, and Startup Support Standpoints

‍Yamada: Today, we have three guests with different perspectives to discuss the current status and challenges of global expansion for domestic CVCs, as well as the key points to success. First, let’s hear about Toshiba Tec from Nishikiori-san.

Nishikiori: Our company was established in 1950 as an electronics manufacturer. Our retail business accounts for 56% of sales, and our workplace business accounts for 44%. Over 60% of our sales come from overseas.

Yamada: So, global expansion is already progressing at the business level.

Next, let’s hear from Yamamoto-san of X&KSK Fund. Yamamoto-san previously engaged in investment activities with Rakuten Capital, correct?

Yamamoto: Yes, I invested in companies in the U.S., Latin America, and India. After that, I co-founded X&KSK Fund with Keisuke Honda, and now we focus on investing in Japanese startups.

Lastly, Kanayama-san from I&CO, could you share about your company?

Kanayama: We support businesses and branding strategy development for our clients. Our founder is creative director Rei Inamoto, and we are based in the U.S. and Tokyo. We are also expanding to Singapore in 2024. I hope to share my thoughts from a third-party perspective today.

Achieving Business Goals Through Global CVC Expansion

‍Yamada: Nishikiori-san, could you explain how Toshiba Tec established its CVC and expanded globally?

Nishikiori: We set up our CVC in 2019 and initially invested mainly in domestic companies. However, with the progress of digital transformation (DX), we began focusing on investing in U.S. startups to gain insights from there. We have about 20 members in our CVC organization, and starting in 2024, we have stationed staff in Silicon Valley.

Challenges in Local Sourcing for Domestic CVCs

‍Yamada: What challenges did you face when expanding to the U.S.?

Yamamoto: The main challenge was maintaining focus and the difficulty of sourcing. Nishikiori-san, how does Toshiba Tec source its investment opportunities?

Nishikiori: We use local funds and customer connections to select our investments.

Kanayama: For APAC expansion, it’s crucial to understand both the Japanese business context and the global standards as well as the local startup context.

The Vision Through Open Innovation

‍Yamada: What challenges have you faced in open innovation?

Nishikiori: It was difficult to connect across the entire data value chain, but with the advent of generative AI, the technical barriers have lowered. The next step is to connect data vertically.

Yamamoto: Considering past failures in the U.S. retail sector, how does Toshiba Tec plan to utilize data?

Nishikiori: We aim to address issues like promotional activities and staff shortages, and we will approach this in stages.

Key Points for Success in Global CVC Activities

‍Yamada: What are the key points to making global CVC activities successful?

Nishikiori: When expanding globally, it’s important to have respect for advanced business practices.

Yamamoto: Japanese companies need the resolve to build a market foundation from scratch when going global.

Yamada: Today, we primarily focused on outbound investment, but there is also inbound global investment. Kanayama-san, could you tell us about the situation in Singapore?

Kanayama: In Singapore, the healthcare and biotech sectors are thriving, and many startups aiming to enter the Japanese market are emerging.

Yamada: Collaboration with overseas startups targeting the Japanese market is another way CVCs can be used in global strategy. Thank you very much.

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