Tokyo, Japan – Seiko Epson Corporation has established Epson X Investment Corporation ("EXI"), a new corporate venture capital (CVC)1 subsidiary. The aim of the subsidiary is to accelerate collaboration and open innovation, grow existing businesses, and create new ones. A ¥5 billion fund will be set up for venture investment.

One of the basic policies of Epson's Phase 2 Mid-Range Business Plan is to accelerate growth by taking maximum advantage of assets and through collaboration and open innovation. In the past ten years, Epson has invested about ¥10 billion in mergers and acquisitions and in collaborative projects and capital tie-ups with venture businesses. We have primarily pursued opportunities in which we could take advantage of synergies with our core devices, especially our core inkjet devices. This has helped us break ground in new businesses and develop new markets that expand the scope of applications.

M&As are the most common way for enterprises to enter other industry sectors. In recent years, however, CVC has gained attention as an effective way to form collaborative relationships and capital tie-ups with venture companies in a wide and diverse range of fields and sectors. It is also seen as a way to prepare for major environmental changes and disruption.2 This situation prompted Epson to found EXI as a CVC subsidiary capable of rapidly making decisions and investments. This will help us further accelerate our open innovation strategy

Epson's general partner3 in EXI will be Global Brain Corporation ("GB"), an independent venture capital company with considerable expertise in CVC management. The Epson Group will have a 99% interest in a new corporate venture fund with a total of ¥5 billion available for investment. Fund management will target investments in venture companies worldwide.

Epson will help to achieve a sustainable society by creating a variety of partnerships and synergies based on its proprietary technologies, products, and services.