JAFCOʼs mission is "Commit to new business creation and jointly shape the future."
Under this mission, we identify new technologies and services that are in high demand and commercialize them into new businesses with entrepreneurs with the aim of realizing a better society. We believe that achieving this mission through our daily investment activities allows us to contribute to sustainable growth of the society.
As "Co-Founder" of cutting-edge startups, we also aim to be an advanced role model in terms of organization and workstyle. Our Toranomon office embodies our ambition of creating new values by providing a pleasant and innovative atmosphere that inspires broad-minded collaboration. We will continue with our reform efforts to help each member feel their own growth and a sense of satisfaction and fulfillment working at JAFCO.
Investment in environmental sectors
Preservation of global environment is an eternal theme for all mankind. In the fields of resource recycling and preventive measures against global warming and air/ soil/ water pollution, innovative technologies and services are in constant demand. In Japan, a number of startups tackling environmental issues have been born since the 2011 earthquake and tsunami. Among these startups, we rigorously select businesses that would make a positive impact on society, and make investments from a medium- to long-term perspective.
Environmental preservation efforts at offices
We provide notebook PCs to our entire workforce to promote paperless operation.
Handouts for in-house meetings are no longer printed for distribution and storage of paper documents, etc. is kept to minimum.
For the Society
Investment to realize a better society
- In selecting companies, we always keep in mind what kind of positive impact that a startup would make on the society. Based on this approach, we have identified businesses offering energy usage visualization systems, satellites to remove space debris, services to allow sharing of things and information, medical support utilizing AI and big data, platforms to promote communications, and games and other forms of entertainment that add spice to peopleʼs lives.
- Through growth and success of these companies, we make significant contributions to the creation of new job opportunities and realization of a sustainable society.
Development of individual ability and personnel diversification
- We have introduced complete flextime since March 2017 to allow each member to choose their working hours depending on their work and physical conditions.
- We promote remote workstyle by providing office-like environment through cloud/ mobile IT systems to allow members to work from anywhere.
- Through these measures, we have provided an environment where members can improve work efficiency and reduce idle hours at work, so that they can better manage their health and adapt to changes in family circumstances. We also encourage our members to take a two-week vacation to inspire out-of-the-box thinking.
- We had previously been focusing on new graduate recruitment and OJT career development, but an increase in startup investment meant that companiesʼ management issues diversified and more specialized expertise became necessary.
As a result, we have started to promote personnel diversification through midcareer recruitment from other industries and cooperation with external professionals.With regard to new graduate recruitment, we have adopted a long-term internship program and other new recruitment methods.
- We also encourage our members to engage in side businesses with the aim of building up various experiences that canʼt be gained at JAFCO and enhancing their professionalism.
Composition/ operation of the Board of Directors and business execution structure
- The Company is a company with Board-Audit Committee and, in principle, independent directors comprise a majority of the Board of Directors. Currently, four out of seven directors are Board-Audit Committee members, all of whom are independent directors. Independent directors supervise the business execution of directors, etc. from an independent and objective perspective.
- Election, dismissal and remuneration of directors are determined by the Board of Directors after deliberations by the Nomination and Remuneration Committee composed of all Board-Audit Committee members and the President.
- The Company has introduced the corporate officer system to strengthen and accelerate business execution.
- The Company proactively selects suitable executive candidates from diverse background regardless of gender and nationality. Currently, one of the seven directors and one of the two corporate officers are women.
Management of conflict of interest in fund management
- We will preserve discipline and transparency under the following three management policies.
- We will not establish industry-specific funds
- We will not establish investor-specific funds
- We will not engage in any business other than PE investment and fund management
- In principle, we do not make direct investments using our own capital. We invest our own capital in funds that we manage as General Partner, thereby making indirect investments as part of fundsʼ assets under management.
- In principle, there are no transactions between JAFCO and its funds, or between JAFCO funds.
Investment risk management
- JAFCO transformed to a partnership model VC in March 2018 and appointed six partners who make important investment decisions. The partners are responsible for overall fund management and involved in all investment deals.
- The investment committee is comprised of the six partners and the president & CEO, and investment decisions are made based on unanimous consent of its members. Opinions from the investment division and members in charge of investment evaluation are reflected in investment decisions. Directors serving as Board-Audit Committee members also attend the investment committee meetings on an as-needed basis. When negative factors are found in the deal-sourcing and due diligence processes in light of ESG, SDGs, social norms, etc., such deals are dropped based on our investment discipline.
- We strive to enhance corporate value of portfolio companies through rigorous screening, a decent shareholding and deep involvement in management. We also work to reduce compliance risks of portfolio companies by regularly confirming the implementation status of corporate governance at portfolio companies. Startup companies face various difficulties when launching and expanding their businesses. Our partners and investment division members quickly identify issues facing the companies and take appropriate measures with entrepreneurs.
Investment Activity and SDGs
- Many start-up companies identify business opportunities in social issues and develop and provide new products and services to address such issues. Start-ups also proactively introduce the latest technologies and new workstyles to create decent work and employment. Establishment and growth of such startups lead to the realization of SDGs.
- We invest in and provide diverse support for startups that help enrich the society by developing cutting-edge technologies in the fields of AI, robotics, biotech, etc. and using such technologies to revolutionize various industries and create new industries. We also contribute to the expansion and dissemination of innovations by backing up their overseas development and partnerships with major companies. By promoting a venture investment business, we aim to contribute to the attainment of SDGs and fulfill our social responsibility.