Domestic private equity funds are making successive investments in Japanese deep-tech companies. Beginning with Kyulux, the investment amounts and backgrounds have been reported, with Japanese-capital deal activity expanding.
Domestic private equity fund (PEF) managers have been making successive investments in Japanese deep-tech, materials, components and equipment companies, which are reportedly considered attractive investments because their valuations are relatively low.
H&Q Partners and Helios PE invested in Kyulux, a Japanese developer of next-generation OLED emissive materials. The investment amounts were approximately KRW 40 billion and KRW 10 billion, respectively, and another investment was reported earlier, in June.
Kyulux was established in Fukuoka based on research at Kyushu University and owns core technology for third- and fourth-generation OLED emissive materials. Compared with the second-generation materials widely used today, the technology is said to achieve high efficiency without using rare metals.
IMMJ, IMM Investment's Japanese subsidiary, led efforts to attract investment in Kyoto Fusioneering's Series D financing and raised funds through a project fund. The technology's high level and relatively low price were cited as favourable investment conditions.
In Japan's market, the median investment in domestic startups is increasing from the previous year, while there have also been cases of stricter screening of foreign-affiliated investments. Some observers believe that the investment environment still requires further development.