2016.09.29 Corporate Announcement
Tokyo, Japan - September 29, 2016 - LINE Corporation (Headquarters: Shibuya-ku, Tokyo, Japan; President & CEO: Takeshi Idezawa; hereinafter “the Company”) announces that it passed a resolution during its board meeting held on September 29, 2016 to invest, via its subsidiary LINE Plus Corporation (Headquarters: Seongnam, Gyeonggi-do, Korea; Representative: Jung-ho Shin), in venture capital firm DAG Ventures (Headquarters: California, USA) and K-Fund 1, a fund established by venture capital firm Korelya Capital (Headquarters: Paris, France; Representative: Fleur Pellerin).
The investment in K-Fund 1 will be a joint initiative conducted with LINE’s parent company NAVER Corporation, with both companies respectively investing 50 million euros each for a total 100 million euro investment.
1.Reasons for this investment
LINE is currently strategically focused on the four countries of Japan, Thailand, Taiwan and Indonesia, and until now its investment strategy has also focused on investments related to existing LINE business in these four countries. However, looking to the future, the company has determined it is necessary to perform forward-looking investment activities to ensure continuous information-gathering and network-building in regions like the U.S., Europe, China, India where there is a high concentration of advanced tech companies (from globally dominant corporations to promising startups). This determination has led to the decision to invest in these American and French venture capital firms.
DAG Ventures boasts a vigorous investment track record, ranking eighth in tech exits in the last 4 years＊. Korelya Capital is an IT-focused investment company established by Fleur Pellerin, the former French Minister of Culture and Communications who led the establishment of France’s leadership role in the tech industry through her trumpeting of support for tech startups. The two companies were targeted for investment due to their compatibility with LINE’s aims and needs.
*Source: CB Insights “INVESTORS IN THE TOP 100 VC-BACKED US TECH EXITS Q4’12-Q2’16”
By investing in venture capital firms that have built up a significant presence in their respective home markets, LINE will be able to indirectly invest in local startups, collect insights on trends and market conditions and build up its network within these regions, which the company anticipates will lead to the future expansion of LINE’S business and services as well as the provision of new value to LINE users.
LINE will maintain its long-term perspective as it rolls out various initiatives with a view towards investments in the global market.
2.Overview of investee companies
Company Name: DAG Ventures
Location: 251 Lytton Avenue, Suite 200, Palo Alto, CA, 94301
Company Name: Korelya Capital
Location: Paris, France
Representative: Fleur Pellerin
About LINE Plus Corporation
Location: Seongnam, Gyeonggi-do, Korea
CEO: Jung-ho Shin
Business: Overseas marketing and development of various LINE-related global services
Capital: 19,969,240,000 won (wholly owned subsidiary of LINE Corporation)