The importance of ‘impact investment’, which brings both social and environmental impact as well as financial return, has been increasing in recent years. The annual growth rate of total assets managed by impact investors globally has risen to 18% between 2017 and 2022. Impact investors who invest in seed-stage startups account for 30% of the total, and this figure reaches 65% for those investing in growth-stage startups, highlighting the growing significance of impact investments in startup fundraising.
As a result, in order to strengthen fundraising opportunities from global investors and accelerate the creation of unicorns, it is becoming increasingly vital for Tokyo-based startups to accurately grasp the trends and essentials of impact investment and incorporate them into their business strategies and capital policies.
However, startups originating from Japan have not been able to fully capture the global demand for impact funds. Therefore, in this project, in collaboration with partners in Luxembourg—where over 80% of European funds are consolidated and which serves as the gateway to the European market—we will leverage the geopolitical and industrial advantages of both Japan and Luxembourg. We will facilitate the understanding of investment trends and ecosystem dynamics among startups from both nations and support Tokyo-based startups in utilizing the Luxembourg and European capital markets through the ‘Japan-Luxembourg Impact Program’.
Our goal is to bolster global fundraising capabilities, promote overseas expansion that backs the next unicorns, further develop in emerging markets through collaborations with European institutions, and accelerate the growth and innovation of startups contributing to solving societal challenges.
In this project, we will fully utilize our firm’s strong network with the innovation ecosystem in Luxembourg. We will support the growth of Tokyo-based startups in collaboration with leading innovation institutions in the European market, such as Technoport, a government-affiliated incubator that houses numerous startups specializing in next-generation technologies, and LHoFT (with whom we have a strategic collaboration MoU), a fintech institution in the country.