JR East Startup and S Innovation Begin Collaboration to Co-create Regional Startup Ecosystem in Niigata Area

JR East Local Startup Investment Limited Partnership (Location: Minato-ku, Tokyo; hereinafter "JR East Local Startup Fund") and S Innovation Co., Ltd. (Headquarters: Niigata City, Niigata Prefecture; hereinafter "S Innovation") have commenced a comprehensive collaboration aimed at fostering the creation and growth of regional startups and promoting business co-creation in the Niigata area.

By combining the JR East Group's touchpoints and business foundation with stations, station buildings, and areas along its railway lines, with S Innovation's network cultivated in Niigata encompassing regional companies, startups, local governments, and financial institutions, the two companies will work to create a system where challenges undertaken by startups and regional businesses pursuing second careers can be born, nurtured, and expanded into successful ventures both within and outside Niigata.

1. Background Challenges undertaken by startups and second careers in regional areas often emerge from community roots and daily interactions, and their growth requires the establishment of deep, ongoing relationships within the region.

As the CVC of the JR East Group, JR East Startup has promoted the creation of new businesses centered around stations, railways, and areas along its lines through investments in and collaborations with startup companies. In 2023, it established a system to co-create with locally rooted startups, and in 2024, it launched the JR East Local Startup Fund with a long-term perspective and a 20-year operational period, advancing initiatives that lead to regional business creation originating from startups and enhancing the value of areas along its lines.

Based in Niigata, S Innovation has been working to solve regional issues and create new businesses in the Niigata area through investments in and incubation of seed-stage startups, support for second careers and business succession for regional companies, and promotion of open innovation. The regional innovation platform "InnoLabo NIIGATA" operated by the company has served as a venue for challengers in Niigata and regional companies to meet, with 109 startups and 32 regional companies having presented there to date.

This collaboration aims to combine the strengths of both companies to create an ecosystem in the Niigata area where regional innovations are continuously generated, starting with startup co-creation.

2. Overview of Collaboration This collaboration will begin with the JR East Local Startup Fund making an LP investment in the Regional Innovation Tech Niigata No. 1 Fund, deepening the partnership with S Innovation to discover and support the growth of promising startups and regional businesses pursuing second careers in the Niigata area. Additionally, opportunities for new business co-creation will be advanced by connecting startups from outside Niigata Prefecture, including those invested in by JR East Startup, with regional companies in the Niigata area. By combining the JR East Group's touchpoints and business foundation with stations, station buildings, and areas along its railway lines, with S Innovation's network cultivated in Niigata encompassing regional companies, startups, local governments, and financial institutions, the aim is to create a flow where regional businesses, starting with startups, are born, nurtured, and expanded. Leveraging their respective roles and strengths, both companies aim to create a flow in the Niigata area where regional startups are born and nurtured, and expand into businesses through co-creation with the JR East Group and regional companies. Specific initiatives will be promoted in stages through discussions among the two companies and relevant parties.

3. About the Regional Innovation Tech Niigata No. 1 Fund

The Regional Innovation Tech Niigata No. 1 Fund, managed by S Innovation as GP, is a regional fund primarily targeting startups originating from Niigata Prefecture, startups aiming to expand into or collaborate with Niigata, and regional businesses pursuing second careers.

Through its LP investment in this fund, the JR East Local Startup Fund aims to establish continuous touchpoints with regional startups in the Niigata area and further promote business co-creation with the JR East Group.

4. Future Outlook Through their initiatives in Niigata, both companies aim to create a flow where regional startups, regional businesses pursuing second careers and business succession, and startups from outside the Niigata area aiming to develop businesses there can connect with players inside and outside the region and grow into successful ventures. Furthermore, by leveraging the knowledge and connections gained through their practice in Niigata, they aim to expand the mechanism for continuous connection between regions and startups with partners in various regions, thereby developing initiatives that contribute to both the sustainable growth of regions and the enhancement of the JR East Group's value along its lines.

5. Comments

JR East Startup Co., Ltd. President & CEO, Yutaka Shibata

"There are many excellent, yet undiscovered, startup challenges in the regions. We aim to support and nurture these regional endeavors by leveraging the JR East Group's business foundation. Starting with our initiatives in Niigata, we will work with partners in various regions to create a system where regions and startups are continuously connected, and new, locally rooted businesses continue to emerge."

S Innovation Co., Ltd. President & CEO, Yoshinobu Hoshino

"In Niigata, we have been working on creating and nurturing startups and collaborating with regional companies. Through this partnership, we believe we can provide greater growth opportunities to regional challengers by connecting them with the JR East Group's extensive network and business foundation. We will create a flow of continuous innovation originating from Niigata."

Company Overview

JR East Local Startup Investment Limited Partnership

Location: Tokyo Yard Building, 2-21-42 Takanawa, Minato-ku, Tokyo Limited Partner: East Japan Railway Company General Partner: JR East Startup Co., Ltd. Fund Size: 1 billion yen Fund Management Period: 20 years (extendable)

Homepage: https://jrestartup.co.jp/jre-lsup/

Investment Target: Businesses that contribute to regional revitalization and are expected to achieve sustainable regional growth and business synergy with the JR East Group.

S Innovation Co., Ltd.

Headquarters Location: 3F Nishibori 501 Building, 790 Nishibori 3-chome, Chuo-ku, Niigata City Representative: President & CEO Yoshinobu Hoshino

Homepage: https://sinnovation.jp

Business Activities: - Development and operation of the regional innovation platform "oO"

- New business development support (including CVC establishment and operational support)

- Planning and operation of regional open innovation content (Innovation Labo)

- Structuring and operation of regional innovation tech funds

- New business development support (including accelerator planning and operation)

- Startup M&A Partner https://sinnovation.jp/startupma-lp/