JAPAN CVC SURVEY 2023

The CVC community "FIRST CVC" has released the "Japan CVC Survey 2023," one of the largest surveys on startup investments by corporations and CVCs.

The survey, which includes 127 respondent companies from diverse industries and sizes, investigates the actual state of startup investments, with a total investment budget of approximately 700 billion yen. It provides a comprehensive and detailed overview of the latest startup investment activities by Japanese CVCs and corporations. This year, more companies have joined the survey compared to last year, and with the collaboration of Hitotsubashi University, the depth of the research has increased.

This survey is valuable for companies running or considering CVCs, startups seeking CVC investment, VCs exploring partnerships, policy agencies, and local governments promoting startups.

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Survey Overview

Survey Period: May–September 2024

Method: Online survey to responding companies

Target: Corporations and CVC funds investing in or considering investments in startups, including VC firms primarily managing in-house funds such as financial VCs.

Purpose: To provide startups with insights into corporate and CVC investment activities and trends, offering options for fundraising and alliances. It also aims to clarify the role of CVCs in Japan’s startup ecosystem and contribute to the promotion of Japan’s startup industry. As an industry organization for CVC participants, it provides benchmarks and guidelines for future investment activities.

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Excerpt from Report Contents

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Key Survey Findings

1. Market Size and Trends

- About 1/4 of Japanese corporations have a CVC
- Over 80% began CVC activities after 2016
- Approximately 28% of these companies have annual revenues exceeding 1 trillion yen

2. Investment Characteristics

- AI, SaaS, and DX-related sectors are top investment targets
- Majority of investments are in the 1-5% range
- Both strategic value and financial returns are prioritized

3. CVC Classification and Success Factors

- Three categories: “Leading CVCs” (Top 25), “General CVCs,” and “Startup CVCs”
- Key features of successful CVCs:

• Balance of strategic value and financial returns
• Strengthened collaboration both internally and externally
• Securing specialized talent
• Robust post-investment support systems

4. CVC Challenges

- Aligning interests with existing internal business units
- Balancing strategic value and financial returns in investment decisions
- Harmonizing decision-making processes with startups

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