JAFCO

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JAFCO Group Co., Ltd
Native name
ジャフコ グループ株式会社
Company type Public ( Kabushiki gaisha )
Industry Investment management
Founded1973;52 years ago (1973)
Headquarters
Toranomon Hills, Toranomon, Minato-ku, Tokyo
,
Japan
Key people
Shinichi Fuki
(President & CEO)
Products Private Equity
Venture Capital
RevenueIncrease2.svg ¥27.68 billion (31 March 2022)
Increase2.svg¥16.88 billion (31 March 2022)
Decrease2.svg¥15.08 billion (31 March 2022)
Total assets Decrease2.svg¥233.02 billion (31 March 2022)
Total equity Decrease2.svg¥197.39 billion (31 March 2022)
Number of employees
Increase2.svg135 (31 March 2022)
Subsidiaries JAFCO Asia
Icon Ventures
Website jafco.co.jp
Footnotes /references
[1] [2] [3] [4] [5]

JAFCO Group Co., Ltd. (ジャフコ グループ株式会社) is an investment holding company headquartered in the Toranomon district of Minato-ku, Tokyo, Japan. [3] [2] It is listed on the First Section of the Tokyo Stock Exchange. JAFCO is considered to be the oldest as well as largest venture capital company in Japan. [3] [6] [7]

Contents

History

In April 1973, JAFCO was established in Chūō, Tokyo under the name Japan Associated Finance Co. Ltd, with a capital of ¥500 million. [3] It was created by multiple Japanese financial institutions including Nomura Securities, Nippon Life Insurance and Sanwa Bank. Nomura was the largest shareholder. [1]

In April 1982, JAFCO established Japan's first venture capital partnership fund. [3] [1]

In April 1984, JAFCO America Ventures Inc. was established in San Francisco. [1]

In February 1996, JAFCO moved its head office to Chiyoda, Tokyo. [3]

In August 1997, the company was renamed to JAFCO Co., Ltd. [3] [1]

In May 1998, JAFCO established its buyout investment unit. [3]

In January 2001, JAFCO held an initial public offering to list its shares on the First Section of the Tokyo Stock Exchange. [3] [1]

In 2003, JAFCO America Ventures Inc., was spun off to become Globespan Capital Partners, as part of a management buyout. [8] In the same year a second American subsidiary was established called Jafco Ventures (now renamed to Icon Ventures). [9]

In July 2017, Nomura sold all its shares of its stake in JAFCO. [3] [10]

In October 2020, the company was renamed to JAFCO Group Co. Ltd. [3]

Business overview

JAFCO raises capital from investors and allocates it to its funds. The funds make equity investments in selected startups and unlisted companies to provide growth capital. JAFCO also provides management services, loans and consultation services to the invested companies. The objective is to increase enterprise value of its portfolio companies and to lead them to exits through various means such as IPO, M&A. JAFCO will receive capital gains as a result of the successful exits. [3] [2]

As of 31 March 2020, the majority of JAFCO's investments are venture capital investments made in Japan (55.2%). Other investments include buyout investments in Japan (16.4%) and venture capital investments made in US (24.2%) and Asia ex-Japan (4.2%). [3]

JAFCO is headquartered in the Toranomon district of Minato-ku, Tokyo, Japan with other regional branches in Chubu, Kansai and Kyushu. [3]

Notable investments include Shintom, [1] Nippon Cable, [1] Cyberdyne [3] and UUUM. [3]

Alleged Misconduct

Sexual Assault Incident

In October 2024, multiple male employees of JAFCO Group were reported to have sexually assaulted a female contract worker [11] . According to the woman’s account, she faced persistent harassment from shortly after joining the company in 2018, including late-night phone calls and pressure to attend drinking sessions. In December 2019, following a year-end party, she alleges that one of the employees strangled her with a scarf and touched her chest [12] . Disciplinary actions were taken against the perpetrators; however, the woman was subsequently encouraged to resign and forced to renew her contract at half her previous salary. She was ultimately laid off in 2022 [13] .

While the victim is pursuing legal action, JAFCO Group denies any link between her dismissal and her sexual harassment complaints [14] . Reporting on the incident has drawn parallels to broader concerns in Japan, where 52.4% of female entrepreneurs have reported experiencing some form of harassment within the past year [15] . The case has also brought attention to how sexual harassment issues are addressed industry-wide, including by the Japan Venture Capital Association [16] .

On November 20, 2024, the victim’s legal representative sent letters to seven companies that co-invest with JAFCO, asking them to urge JAFCO—from their position as investors—to provide a formal apology, compensation, and to improve the workplace environment [17] . Of those seven companies, four (Chugoku Electric Power, Intec, Azbil, and Chudenko) formally requested that JAFCO “respect human rights” and “implement preventive measures against harassment, including secondary harassment. [18] ” Meanwhile, the Development Bank of Japan, Moriroku Holdings, and Hokkaido Electric Power stated that they would not comment.

The request is based on the “United Nations Guiding Principles on Business and Human Rights (UNGPs),” adopted by the United Nations Human Rights Council in 2011, which encourages businesses to address human rights issues. Specifically, the request calls for [19] :

  1. A formal apology and compensation for the victim.
  2. Creation of a workplace environment that prevents further sexual harassment.
  3. Establishment of mechanisms and policies to prevent recurrence.

Subsidiaries

JAFCO Asia

JAFCO Asia is a wholly owned subsidiary of JAFCO that operates in Asia (excluding Japan) with a focus on technology companies. [3] [1]

In 1990, JAFCO and Nomura established a joint-venture subsidiary in Singapore named Nomura/JAFCO Investment (Asia) Ltd. In 1999, JAFCO acquired full control of the subsidiary where it was renamed to JAFCO Investment (Asia Pacific). [3] [1]

It is headquartered in Singapore with additional offices in Beijing, Shanghai and Taipei. [3] JAFCO Asia also had an office in South Korea which spun off to become BridgePole Investment Co. Ltd. as part of a management buyout in 2019. [20]

Notable investments include Tudou, [21] Teabox, [22] Bubbly, [23] ChinaCache, [24] Mistral Solutions, [25] CustomerXPs [26] and HiSoft. [27]

Icon Ventures

Icon Ventures is a wholly owned subsidiary of JAFCO that operates in the United States. [3]

in 2003, Jafco Ventures was founded by Joe Horowitz in 2003 in Palo Alto, California. [9] JAFCO would provide capital for its funds. [9] In 2015, Jafco Ventures was rebranded as Icon Ventures to strengthen its brand name in the US. [28]

Icon Ventures has historically funded early stage, and growth stage investments in private technology-based businesses. Significant technology companies that it has backed include Bill.com, [29] Teladoc, [30] FireEye, [31] Palo Alto Networks, [32] and Proofpoint. [33]

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References

  1. 1 2 3 4 5 6 7 8 9 10 "JAFCO Co. Ltd". www.encyclopedia.com.
  2. 1 2 3 "JAFCO Group Co. Ltd. Company Profile & Executives - WSJ". www.wsj.com.
  3. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 "JAFCO Group / 8595" (PDF). 27 May 2021. Archived from the original (PDF) on 27 May 2021.
  4. ↑ "8595.T - JAFCO Group Co Ltd Financials". www.reuters.com.
  5. ↑ "8595.T - JAFCO Group Co Ltd Financials". www.reuters.com.
  6. ↑ Kitamura, Motoya (21 December 2020). "Is Japan's venture capital ecosystem finally coming of age?". Unravel.
  7. ↑ Niessner, Justin (11 March 2020). "Japan's Jafco closes sixth flagship VC fund at $765m". AVCJ.
  8. ↑ "JAFCO Ventures spins out to become Globespan Capital Partners | AltAssets Private Equity News". 22 January 2003. Retrieved 27 May 2021.
  9. 1 2 3 Gage, Deborah (22 November 2013). "Three's a Charm: Hat Trick for Jafco Ventures". Wall Street Journal. ISSN   0099-9660 . Retrieved 27 May 2021.
  10. ↑ Wilson, Thomas (28 July 2017). "Japan's Nomura sells stake in venture capital firm Jafco". Reuters. Retrieved 27 May 2021.
  11. ↑ "セクハラ被害に遭った後、老舗ベンチャーキャピタルを雇い止めに…女性契約社員の訴え：東京新聞デジタル". 東京新聞デジタル (in Japanese). Retrieved 19 January 2025.
  12. ↑ 「週刊文春」編集部 (11 October 2024). "タイミー、UUUM上場の立役者・ベンチャー投資最大手「ジャフコ」で"悪質セクハラ"が発覚 「キスや不貞行為を迫られ」「やらせてやってよ、と」被害女性が悲痛告発". 文春オンライン (in Japanese). Retrieved 19 January 2025.
  13. ↑ 「週刊文春」編集部 (11 October 2024). "タイミー、UUUM上場の立役者・ベンチャー投資最大手「ジャフコ」で"悪質セクハラ"が発覚 「キスや不貞行為を迫られ」「やらせてやってよ、と」被害女性が悲痛告発". 文春オンライン (in Japanese). Retrieved 19 January 2025.
  14. ↑ 横山耕太郎 (11 October 2024). "ジャフコ"首絞め"セクハラ告発。弁護士が会見｢業界の体質に問題｣と指摘". BUSINESS INSIDER JAPAN (in Japanese). Retrieved 19 January 2025.
  15. ↑ 日本放送協会 (28 August 2024). ""女性起業家の半数がセクハラ被害" スタートアップ業界で何が - 性暴力を考える - NHK みんなでプラス". NHK みんなでプラス - みんなの声で社会をプラスに変える (in Japanese). Retrieved 19 January 2025.
  16. ↑ "ジャフコ、首絞めセクハラと「退職勧奨」 代理人弁護士が会見「責任否定、重大な問題」（小川たまか） - エキスパート". Yahoo!ニュース (in Japanese). Retrieved 19 January 2025.
  17. ↑ "VC大手「ジャフコ」に出資企業4社"人権尊重"要請 元女性社員へのセクハラ・雇い止め問題「法的責任の否定」を受け | 弁護士JPニュース". 弁護士JP｜あなたの悩みを解決する弁護士検索サイト (in Japanese). 17 December 2024. Retrieved 19 January 2025.
  18. ↑ 横山耕太郎 (13 December 2024). "VCセクハラ問題：中国電力など出資4社｢適切な対応｣を要請【ジャフコ側コメント更新】". BUSINESS INSIDER JAPAN (in Japanese). Retrieved 19 January 2025.
  19. ↑ "セクハラ訴えたら「隙がある」と非難され雇い止め…ジャフコの問題受け、ファンド出資4社が適切な対応を要請：東京新聞デジタル". 東京新聞デジタル (in Japanese). Retrieved 19 January 2025.
  20. ↑ "BridgePole Investment". www.bpinvestment.kr. Retrieved 27 May 2021.
  21. ↑ Taylor, Sophie (23 March 2008). "China publishes "blacklist" of video Web sites". Reuters. Retrieved 27 May 2021.
  22. ↑ "Teabox Raises $6M To Grow Its Global Tea-Commerce Business". TechCrunch. 25 March 2015. Retrieved 27 May 2021.
  23. ↑ "Bubble Motion Receives Additional $5M From Japan's Largest VC, JAFCO, to Continue Rapid Global Expansion". 14 October 2012. Archived from the original on 14 October 2012. Retrieved 27 May 2021.
  24. ↑ "ChinaCache Announces Successful Closing of Series B of Private Placement - PR Newswire APAC". en.prnasia.com. Retrieved 27 May 2021.
  25. ↑ Abrar, Peerzada. "Indian start-up Mistral Solutions finds business in developing technology for US defence and homeland security". The Economic Times. Retrieved 27 May 2021.
  26. ↑ ET Bureau (12 September 2011). "CustomerXPs a software with a human touch". The Economic Times.
  27. ↑ "hiSoft Corporation >> About hiSoft : Our Investors". 9 January 2008. Archived from the original on 9 January 2008. Retrieved 27 May 2021.
  28. ↑ Gage, Deborah (26 January 2015). "Jafco Rebrands as Icon Ventures, Adds New Venture Partner". Wall Street Journal. ISSN   0099-9660 . Retrieved 27 May 2021.
  29. ↑ Rao, Leena (16 June 2010). "Bill.com raises another $8.5M to streamline business bill payments". Techcrunch.
  30. ↑ Sullivan, Mark (23 September 2014). "Teladoc raises $50M for telemedicine platform". Venturebeat.
  31. ↑ Acohido, Byron (24 September 2013). "Investors Lured By FireEyes Likely Explosive Growth". USA Today.
  32. ↑ Kuchler, Hannah (20 February 2014). "Google backs two more cyber security start-ups". Financial Times.
  33. ↑ "Proofpoint Raises $28M". New York Times. 28 February 2008.
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