Scotland forges new investment partnership with Japanese research giant

A groundbreaking new partnership has been formed with one of Japan’s leading research investment vehicles in a move that will help Scottish life sciences and green technology companies tap into a $50 million investment fund.

Scotland’s economic development agency, Scottish Enterprise (SE), today 3 October 2013 signed a strategic agreement in Japan with RIKEN Innovation Capital (RIC), the investment arm of Japan’s leading scientific research organisation, RIKEN.

The agreement will formalise RIC as one of SE’s key global investment partners where together the partners will seek to co-invest in some of Scotland’s most promising life sciences and green technologies to help bring new innovations to market and grow Scottish companies into globally competitive international businesses.

The fund, which will complete its first close, later this month at $25 million, is on track to raise a total of $50 million by the end of this year.

Signing the agreement on behalf of Scottish Enterprise, managing director Paul Lewis said: “RIKEN is a major player in Japan’s research and funding community and this new partnership represents an opportunity for Scottish companies not only to access significant international investment but to collaborate with a world leading research institution to help develop and commercialise technologies for the future.

“RIC’s decision to partner with Scottish Enterprise reinforces Scotland’s reputation as a fertile breeding ground for new life sciences and green technologies and as a location where young companies with global potential are nurtured and supported to commercialise technologies and take them to the international marketplace.”

“Scotland continues to produce exciting innovative young companies with emerging technologies, products and services that boast global potential and through international strategic agreements like this, our investment activities will continue to drive further investment and confidence in those companies and in Scotland.”

Kenji Okuma, President, Riken Innovation Capital commented: “We share Scotland’s ambition for international collaboration in the life sciences and green technology area and recognise the value of Scotland’s attractive environment for research and clinical studies and its sophisticated system to support leading edge technology companies.

“Scotland’s major universities contribute a lot to create interesting university spinout opportunities and we believe this agreement signals a historical step for our mutual success to achieve win-win investment cases while extending our network.”

RIC is the latest international investment partner to join forces with SE’s investment arm, the Scottish Investment Bank, as it explores and develops new opportunities and international routes to increase access to finance for Scotland’s key industries.

This agreement builds on recent investment opportunities developed including the £103 million Renewable Energy Investment Fund and the £50 million Rock Spring Ventures life sciences fund.

Since SE’s equity funds began in 2003, more than £600m has been invested by SE and its private sector partners in some of Scotland’s most promising companies and its co-investment approach is internationally recognised as stimulating and supporting early stage risk capital to generate economic wealth.

RIC’s focus on life sciences and green technology sectors is a natural fit for Scottish Enterprise’s current portfolio of 237 companies which features a high percentage of renewable and life sciences investments.