Review on JAFCO Japan by Douglas Cachazo
JAFCO Japan: Venture fund for technology ventures
The very accelerated dynamics in which it is moving in the new financial world ventures play an almost leading role, there is a chain composed of: Ventures, Accelerators, partner companies and Financiers.
The financiers with their funds for high-risk investments, are the ones who put the bulk of the financing capital and assume the risk as such, but in my opinion is more profit than possible loss as they rely on prestigious accelerators that guarantee a minimum margin of loss, which is why there are many companies like Jafco whose goal is precisely to finance, their profit is oriented either with the return on investment plus percentage for it, equity participation of the company that usually ranges between 5 and 7 percent and another modality is to take equity participation in the venture. This has generated a great win-win business.
Founded in Japan and despite being a global financial company, it gives preference to investments in Japan, Asian countries and the United States. The area in which they invest is in technological projects in the areas of information technology, health, electronics and innovative services.
The investment modality is for the initial stage, growth and finally expansion and the return on investment is based on the capital invested plus interest, the other modality is the purchase of shares of the assisted companies.
In terms of numbers, it can be observed that since its foundation, the company has made important investments with a robust and verifiable portfolio of financed companies that are successful today.
Finally, I can say that the company does not operate alone, it has important partners willing to invest.
Pros
- Successful financial company
- Demonstrable portfolio of success stories
- Finances information technology, healthcare, services and technological innovations.
- Good partnership with other investors.
Cons
- Preference given to Japan, Asian countries and the U.S., not yet global.
