Epson has established a new corporate venture capital (CVC) subsidiary named Epson X Investment Corporation (EXI).
The set-up of the new subsidiary aims to accelerate collaboration and open innovation, grow existing businesses, and create new ones.
The company mentioned that a multi-million-dollar fund will be set up for the venture investment.
“One of the basic policies of Epson’s phase two mid-range business plan is to accelerate growth by taking maximum advantage of assets and through collaboration and open innovation,” the company said, in a statement.
“In the past ten years, Epson has invested millions of dollars in mergers and acquisitions and in collaborative projects and capital tie-ups with venture businesses.
“Epson has primarily pursued opportunities in which it could take advantage of synergies with its core devices, especially its core inkjet devices. This has helped the company break ground in new businesses and develop new markets that expand the scope of applications.”
According to Epson, M&As are the most common way for enterprises to enter other industry sectors but in recent years, 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”, according to the company.
“This situation prompted Epson to found EXI as a CVC subsidiary capable of rapidly making decisions and investments. This will help the company further accelerate its open innovation strategy,” it said.
Epson has partnered with an independent venture capital company with expertise in CVC management, Global Brain Corporation (GB), for EXI.
“The Epson Group will have a 99 per cent interest in a new corporate venture fund with many millions of dollars available for investment. Fund management will target investments in venture companies worldwide,” it said.
“Epson will help to achieve a sustainable society by creating a variety of partnerships and synergies based on its proprietary technologies, products, and services.”
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