what we do
gvc is an independent, Tokyo-based partnership in the business of managing venture capital funds. The individuals constituting gvc have been active in entrepreneurship, venture capital and private equity globally for over 20 years. Since 1997, gvc has been responsible for managing a series of venture capital funds with total committed capital of 6.3 billion yen, which has been directly invested in over 35 companies both inside and outside of Japan . Direct investments in portfolio companies have resulted in seven IPO’s to date. As a result, gvc has achieved returns exceeding industry benchmarks for its investors.
gvc’s investment strategy is to “source globally and invest locally”. gvc considers investments in early-stage ventures located around the globe that have “meaningful contacts” with Japan and/or other economies of Asia . “Meaningful contacts” include one or more of the following attributes:
1. A large potential market in Japan and/or other Asian countries and a strong commitment on the part of management to consider these markets to be of significant importance.
2. A technology, product or service that is amenable to due diligence by applying technology resources accessible to gvc internally or in Japanese and/or other Asia-based corporations or academic/research institutions.
3. A strong potential interest by Japanese or other Asia-based corporations in partnering with the venture.
4. The potential to undertake an IPO on the Japanese capital markets.
Because gvc is Tokyo-based and composed of highly committed professionals with the requisite knowledge and experience, this investment strategy makes it possible for gvc to produce top-tier returns for its investors. This investment strategy and gvc’s unique composition enhances the performance of all of the tasks required of successful VC’s, including due diligence, structuring, negotiating and making the investment, adding value to the portfolio company and, finally, achieving a timely exit. In addition, gvc’s location and contacts give it access to deal flow information on a global basis.
Although its strategy is to “source globally and invest locally”, in order to effectively manage risk gvc will consider investments only in companies originating in countries where the legal infrastructure is well-established and documentation is typically in either English or Japanese. This effectively limits our investments to companies incorporated in Japan , the United States , the Commonwealth Realms, a limited number of other jurisdictions and certain offshore financial centers such as the Cayman Islands . We expect to invest half of each fund in Japanese companies and the balance in companies established in other countries.
Currently, gvc comprises five partners involved on either a part-time or full-time basis. Four are Japanese and one is a bilingual American. Four partners have graduate degrees (two in tech areas), one has practiced corporate law, one is a CPA, one is a certified adviser to small businesses, one is an entrepreneur who has founded and later successfully exited companies and all have had significant operating experience in both small and large companies.