
KDDI
Description
KDDI, a major Japanese telecommunications conglomerate, actively participates in the venture capital landscape through its dedicated corporate venture capital arm, the KDDI Open Innovation Fund (KOIF). Established to foster strategic partnerships and drive innovation, KOIF invests in startups that align with KDDI's core business and future growth initiatives. The fund is notably managed by Global Brain, a prominent independent venture capital firm, which brings extensive investment expertise and network to the partnership. This collaborative model allows KDDI to leverage external innovation while providing startups with access to a large corporate partner's resources and market reach.
The KOIF's investment strategy is deeply rooted in supporting the evolution of telecommunications and digital services. Their focus areas are broad yet strategically aligned, encompassing emerging technologies such as Web3, XR (Extended Reality), IoT, AI, and FinTech, as well as sectors like healthcare, education, and entertainment. They target companies across various stages, typically from Seed to Series B, seeking to identify and nurture promising ventures that can contribute to KDDI's "Next Generation Telecommunications" vision. The latest iteration, KDDI Open Innovation Fund III (KOIF III), launched in 2021, boasts a substantial fund size of 20 billion Japanese Yen, equivalent to approximately $130 million USD. This significant capital allocation underscores KDDI's commitment to open innovation and its belief in the potential of startups to shape future industries.
Beyond capital infusion, KDDI aims to create synergistic value by integrating portfolio companies' technologies and services into its vast ecosystem. Startups benefit from KDDI's extensive customer base, robust infrastructure, and deep industry knowledge, accelerating their market penetration and growth. This strategic support extends to providing business development opportunities, technical collaboration, and global expansion assistance. KDDI's consistent investment activity through multiple funds, including KOIF I, II, and III, solidifies its position as a key corporate investor in Japan and increasingly on the global stage, actively shaping the future of digital services and connectivity.
Investor Profile
KDDI has backed more than 26 startups, with 7 new investments in the last 12 months alone. The firm has led 5 rounds, about 19% of its total and boasts 22 exits across its portfolio.
Investment Focus Highlights
- Concentrates on Series B, Series A, Seed rounds (top funding stages).
- Majority of deals are located in Japan, United States, Israel.
- Strong thematic focus on Software, Artificial Intelligence (AI), Robotics.
- Led 2 rounds in the past year.
- Typical check size: $500K – $7M.
Stage Focus
- Series B (27%)
- Series A (27%)
- Seed (15%)
- Series Unknown (12%)
- Series C (12%)
- Post Ipo Equity (4%)
- Series E (4%)
Country Focus
- Japan (46%)
- United States (35%)
- Israel (12%)
- Germany (4%)
- South Korea (4%)
Industry Focus
- Software
- Artificial Intelligence (Ai)
- Robotics
- Machine Learning
- Information Technology
- Internet
- Virtual Reality
- Financial Services
- Internet Of Things
- Mobile
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