What We Do: Social Investment Partners

Fund-Based Support

Operational Flow Chart
(Click image to enlarge)

SIP established the Japan Venture Philanthropy Fund (JVPF) in March 2013 to provide financial and non-financial support to social purpose organizations, with an initial endowment of ¥100M.
The JVPF is set up under The Nippon Foundation, a public interest incorporated foundation. SIP works together with The Nippon Foundation to manage the fund.
As the first full-scale venture philanthropy fund in Japan, the JVPF aims to support social purpose organizations to aid their development as sustainable organizations. Our focus areas are those that contribute in sustaining the Japanese society through fostering the next generation, specifically "education and youth employment", "childcare and women empowerment" and "community development".
The social purpose organizations receiving support can take any legal form of entity, from NPOs to corporations. They are selected by SIP's thorough due diligence in consideration of innovative solution to social issues, scale-out potential, business sustainability, management leadership and origination system, etc.
SIP supports the sustainable growth of its support receiving organization by providing not only financial support, but knowledge from the business sector and expertise in business management on a mid-long term basis.

Fund Name:	the Japan Venture Philanthropy Fund (JVPF)
Fund Amount:	¥972 million (as of the end of March 2022)
Established:	March 2013
Managed By:	the Nippon Foundation Social Innovation and Investment Foundation Social Investment Partners

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Basic Strategy

¥20-50M in funding is provided per project

Optimal funding plan (grants or financing) chosen based on the feasibility of the business
Use of funds is unrestricted-- support receiving organization commits to the achievement of a multi-year plan

Proactive Search & Selection of Projects

Organizations from the Nippon Foundation database and SIP’s network are screened
Multiple interviews, and possibly a probationary period lasting over a year as part of the refining process

Mid-long term managerial support

Seek the target organization’s commitment to achieve business plan goals, governance through board of directors
Provision of comprehensive support from professional organizations (legal advice, strategic consulting, advocacy consulting, and accounting)

Strictly performed Due Diligence

Reconfirm the business segment and define social impact/KPI to formulate business plans together with the target organization
Clarify challenges & support to be provided to enhance probability of achieving business plan
The organization receiving support is required to invest a lot of time as well

^* "KPI" : Key Performance Indicators

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Areas of Focus

We focus on areas that contribute in sustaining the Japanese society through fostering the next generation.

Education & Youth Employment

Unequal educational opportunity due to economic inequality,
Increase of the socially withdrawn/NEETs,
Increase in youth unemployment,
Increase in the population of young homeless etc.

Childcare & Women Empowerment
by Women in the Workplace

Aging population and declining birthrate,
Difficulty for women to continue working,
Difficulty in child rearing due to changes in family structure (expansion of nuclear families) etc.

Community Development

Weakening of the regional community,
Ailing primary industries.

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Criteria for Selection

Selection of the organization to provide support based on 5 selection criteria (1-3 organizations selected per year)

Measurable Social Impact

Able to visualize and measure the social impact of its business model
Identification of the output and outcomes of SPOs is possible
Able to visualize social impact from quantified outcomes

Sustainability

Has the intention and ability to continuously operate its business.

Scalability

Has the potential for quantitative and qualitative expansion of its business to solve social issues which go beyond the limits of the initial targeted areas.

Management Leadership Capacity

Holds a clear mission, vision, strategy, and leadership within the organization.

Shared Mission & Vision

Is able to share its social awareness, mission/vision and goals of its activities wth SIP.

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Due Diligence Process

Period	Investigation point	Details	Aim
1 s t m o n t h	Identification of social issue and positioning of the organization	Context of the social issue, current and future trends Confirmation of government policies Industry mapping and position of organization	Reconfirm target segment Consider planning such as the scale-out model as a reference for strategy formulation
1 s t m o n t h	Social impact	Assessment of social impact based on the logic model Identification of beneficiaries Organize the outcomes for each beneficiary Organize the ultimate social impacts	Confirm stakeholders value chain Set objective numerical values such as SROI and KPI Measure the beneficiaries' needs and impacts
2 n d m o n t h	Feasibility and revenue model analysis	Understanding the business and its characteristics Analysis of a revenue model for each key business Analysis of past revenue performance	As knowledge base for business strategy formulation As a model for creating the financial plan
	Business strategy	Specific social impacts that should be aimed for Mid-term（3-5 years）strategy Goal imaging for 3-5 years ahead Specific numerical targets per business segment	Set internal and external guidelines Identify lacking resources Identify necessary external support (Pro-bono, industry collaboration)
	Business Plan	Revenue/Financial planning（PL, BS, CF) Scenario Analysis (Base, Best, Worst) Scheduling	Financing plan Risk management
	Organizational analysis	Decision making, job assignment, risk management scheme Management system for general affairs, accounting, finance, human resources	Desirable governance system Identify organization/human resources needing reinforcement
3 r d m o n t h	SWOT Analysis	Strength, Weakness, Opportunity & Threat	Reflection to business plans
	Financing plan	Amount, usage, timing Key collateral conditions, governance conditions
	Exit strategy and support plan	Set specific goals with time limit （KPI, Scale-out, etc.) Chronological supporting scheme based on the business plan	Identify in what state the provision of support will end

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Supporting Process

Phase		Activities
Selection & Evaluation （Entry）	Target Research	・Research target organizations to support based on selection criteria, select group of candidates for funding
Selection & Evaluation （Entry）	Selection of Candidates	・Evaluate the feasibility of target organizations, select final candidate based on specific aid proposals and expectations on the target's business growth ・Advise the Fund's Grant Committee on the selection process
Support （Adding value）	Formulation of Strategy & Goals	・Based on knowledge obtained through the evaluation of business feasibility, discuss strategy with support receiving organization, set up detailed business plan, period of funding and project to be funded ・Consult with support receiving organization to establish performance indicators and business goals
	Funding	・Provide the necessary financial support through the fund to business activities in order to achieve its goals.
	Strategy Implementation Support	・In addition to SIP-supported projects, outside resources from pro-bono partners and cooperative network may be brought in as needed for non-financial support
	Regular Progress Evaluation	・Progress is monitored, continuation of support is discussed and determined
	Reporting	・Carry out reporting activities based on the use of indicators which have been agreed upon, and provide feedback to the support receiving organization.
End of Support （Exit）	Exit Decision	・Termination of support is determined based on consultation with supporting organization through the monitoring process (1) when the business phase has reached the exit level agreed upon at the start of funding, or (2) if supporting organization becomes unable to meet quality standards for selection
End of Support （Exit）	Evaluation of Outcome & Follow-Up	・Introduce external financial and network support as needed to support the continuation and expansion of the supporting organization's business ・Prepare progress reports throughout funding period, reporting to the Fund and to external stakeholders

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Portfolio (support receiving organization)

Organization Name	Field	Location	Activities	Period		Funding Amount	Funding Format
Organization Name	Field	Location	Activities	Start	End	Funding Amount	Funding Format
STANDBY Co., Ltd. renamed from STOPit Japan Co., Ltd. In April 2022	Education	Chuo-ku, Tokyo	Provides a comprehensive approach to bullying through an anonymous app that allows people to talk to and report bullying, and anti-bullying awareness classes	September 2021		¥30 million	Equity
Ridilover Inc.	Education	Bunkyo-ku, Tokyo	To address social indifference through study tours, event planning, online salons and owned media, etc., so that each individual can see social issues as his or her own and aim for solutions.	June 2021		¥30 million	Equity
JOINS, Inc.	Revitalizing Local Communities	Chiyoda-ku Tokyo	Through side job matching of professionals in urban areas with companies in rural areas, offers a flexibile workstyle without restrictions of location, time, or affiliation, that ultimately would lead to indreased number of people involved in local community	June 2021		¥29.96 million	Bond, Equity
Learning for All	Education Revitalizing Local Communities	Shinjuku-ku Tokyo	Aims to provide fundamental solution to any type of difficulties faced by children in relative poverty, through learning assistance, providing secure places, and knowledge development and deployment	May 2021		¥37.24 million	Grant
Chance for Children	Education	Koto-ku, Tokyo	Provide study vouchers to children from low income households in aim to resolve disparities in access to education	August 2019	March 2022	¥45 million	Grant
Teachers Initiative	Education	Chiyoda-ku, Tokyo	Provide programs tailored to teachers seeking “21st century style” active learning to improve educational standards	September 2018	September 2021	¥30 million	Grant
Aeru	Revitalizing Local Communities	Shinagawa-ku, Tokyo	Offers retail products and consultation blending artisan techniques and modern design to connect Japanese traditions to the next generation	October 2017	October 2020	¥20 million	Common stock
Hattatsu-Wanpaku-kai.Org.	Childcare & Women Empowerment Revitalizing Local Communities	Chiba prefecture	Support for developmentally challenged pre-school age children and their parents	March 2016	March 2019	¥30 million	Grant
AsMama Inc.	Childcare & Women Empowerment	Kanazawa prefecture	promotes community building for parents to share the responsibilities of childcare amongst their peers.	September 2015	August 2019	¥30 million	Convertible Bond
Teach For Japan	Education	Minato-ku, Tokyo	Selects and trains teachers mainly from candidates with business background and delegate them to public schools	January 2015	December 2019	¥30 million	Grant
NPO Afterschool	Education Women's Participation in the Workplace Revitalizing Local Communities	Minato-ku, Tokyo	Operates after-school programs for elementary school students	December 2013	March 2017	¥20 million	Grant