Sumisho Venture Partners Establishes New ¥10 Billion-Scale Fund- Strengthening Sumitomo Corporation Group strategic and financial returns through a fund structure -

Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President and Chief Executive Officer: Shingo Ueno) today announced that Sumisho Venture Partners, Inc. (hereinafter "SVP"), which is responsible for the Group's corporate venture capital (CVC) activities in Japan, has established a new startup investment fund (hereinafter the "Fund"). The Fund will be on the scale of ¥10 billion, including existing investments under management. To date, SVP has pursued CVC activities aimed at achieving both "strategic returns"*1, which generate open innovation within the Sumitomo Corporation Group, and "financial returns"*2, which target capital gains, delivering steady results. Through the establishment of the Fund, SVP will further strengthen its investment capabilities to pursue both types of returns.

Background to Fund Establishment

In recent years, the number of companies establishing CVC units in Japan has increased, and the competitive landscape surrounding startup investment has become increasingly sophisticated. Many CVCs are now entering a phase – typically five to ten years after establishment – where they are expected to deliver both strategic returns through the creation of new businesses and financial returns through successful investment exits.
Since launching its CVC activities in the United States in 1998, Sumitomo Corporation has conducted startup investments across five global bases: North America, Europe, Hong Kong, Israel and Japan, pursuing both strategic and financial returns. SVP was established in 2022 as the Group's domestic base and has steadily accumulated investments in Japanese startups with a view to business co-creation.
Building on the expertise and human capital accumulated over nearly 30 years of startup investment, and with the aim of advancing its domestic CVC activities to the next stage of growth, SVP is transitioning to a fund-based structure.

Objectives of Transitioning SVP to a Fund Structure

By adopting a fund structure, SVP will promote startup investment activities from a more medium- to long-term perspective and increase investment amounts per deal, thereby enabling lead investments and active involvement in portfolio company management. Through these changes, SVP aims to further strengthen collaboration with portfolio companies, foster a corporate culture that leverages insights from both internal and external sources, and enhances its innovative business building capabilities. In doing so, SVP will further evolve its role as a CVC that drives business creation, a vision it has pursued since establishment.
Including the Fund, the Sumitomo Corporation Group will operate CVC assets under management of approximately USD 450 million on a global basis*3.

Future Outlook

Moving forward, SVP will further promote investment in and business co-creation with startups, focusing on growth areas such as digital, AI and deep tech, while leveraging the Sumitomo Corporation Group's business expertise and network.
Through CVC activities with the Fund, Sumitomo Corporation will work to enhance corporate value by generating new business concepts that drive future growth, and continuously evolving its corporate culture underpinning such initiatives.

*1 Strategic returns
Promoting open innovation within the company based on insight gained through investments, enabling collaboration with existing businesses, thereby contributing to growth and enhanced competitiveness
*2 Financial returns
Generating monetary gains through the growth of portfolio companies, including through IPOs and exits
*3 Assets under management
Total assets under management at fair value, including unrealized gains

Sumisho Venture Partners Overview