Japan invests $20M in the Horizon Capital fund

The Japan International Cooperation Agency (JICA) is investing $20 million in the American venture capital fund Horizon Capital Growth Fund IV, becoming the first Japanese investor in the company. This was reported to AIN.Capital by Horizon Capital.

• Horizon Capital is a private American investment company with a total capital of $1.6 billion that invests primarily in technology and export-oriented companies in Ukraine.
• The agreement to raise $20 million from Japan’s JICA was signed during the Japan-Ukraine Economic Reconstruction Support Conference in Tokyo on February 19.
• This is the first investment Horizon Capital has received from Japan. Thus, the country joined the base of investors from the United States and Europe with a total capital of about $700 billion.
• The investment is aimed at promoting the global growth of innovative technology companies of Ukrainian origin and expanding their research and development platforms.

Horizon Capital Growth Fund IV (HCGF IV) was established in September 2022 to promote the development of technology and export-oriented companies in Ukraine and Moldova.

JICA is a Japanese government agency that administers international aid to developing countries and advances international cooperation. To promote sustainable development and security in partner countries, JICA provides technical assistance, grants, loans, and training programs. JICA has 96 offices abroad and operates in about 140 countries and regions around the world.

Why is this important?

On February 19, 2024, it was also reported that Japan would allocate €1.25 billion to support Japanese investors in Ukraine. In addition, the two countries signed a convention for the avoidance of double taxation, which should simplify the operations for businesses. 

Japan also pledged to provide $12.1 billion in aid to Ukraine, including a $4.7 billion grant that they intend to allocate by the end of this month. This commitment shows extended support from the Japanese government that will help negate the economic impact due to Russia’s full-scale invasion of Ukraine.