Investment in Two Tech Funds Managed by Overseas Venture Capitals

With the aim of building stronger partnerships with overseas start-ups, ITOCHU Techno-Solutions Corporation (headquartered in Minato-ku, Tokyo; Ichiro Tsuge, President and CEO; hereinafter “CTC”) has invested as a limited partner (LP) in two tech funds established and managed by venture capitals (VCs) in the U. S. and Europe.

CTC has been working on market research on the latest technologies, discovery of new products and services and collaboration with partners, mainly in North America since the 1980s to accumulate advanced technologies and expertise. In recent years, CTC has been strengthening our intellectual capital with the aim of further enhancing our corporate value. To this end, in addition to our existing business models, CTC launched the NAPP (North America Partnership Program), an initiative to co-create businesses including products and services, with ITOCHU Techno-Solutions America, Inc., our U.S. consolidated subsidiary, and overseas venture capital firms in April 2023.

As part of the initiative to co-create new businesses with start-ups that have cutting-edge technologies such as generative AI, CTC has contributed capital as a LP^*1 to two tech funds set up and managed by venture capitals based in the U.S. and Europe. Specifically, we have made the contributions to a fund formed by OSS Capital LLC, a U.S. venture capital firm well versed in the OSS (Open Source Software) industry and a fund formed by Dig Ventures Ltd., a U.K. venture capital firm that has a strong network with European start-up founders. In addition to the two VCs, we are also in discussions with Sozo Ventures, a U.S. venture capital firm with its strength in assisting start-ups for their global expansion, for collaboration.

Going forward, we will be involved in selection of investee start-ups and collaborate with portfolio companies as a limited partner of the funds to develop services related to generative AI solutions, OSS and other advanced technologies.