Benesse sets up 5 billion yen Digital Innovation Fund for education and care startups

Benesse Holdings, the Japanese education and nursing care group, established the Benesse Digital Innovation Fund on November 5, 2021 with an investment allocation of 5 billion yen. As reported by Internet Watch on November 9, 2021, the fund invests in venture companies in education, lifestyle and care, as well as in businesses related to digital transformation.

Two initial investments were planned. The first is Code Chrysalis Japan, which runs bootcamp-style training programs for software engineers; Benesse intends to combine that company's product with the marketing experience it has built up through the Udemy online learning platform. The second is Hmcomm, a developer of voice recognition artificial intelligence. Benesse plans to explore using Hmcomm's technology for data use in educational products such as Shinkenzemi and Kodomo Challenge, in its care business, and to make call center and corporate sales operations more efficient.

The fund is linked to Benesse's medium-term management plan, which calls for evolving its core businesses and taking on new domains. Benesse said the fund is meant to speed up digital transformation in its existing operations and to create new businesses jointly with startups. The structure is a corporate venture vehicle, with the company investing in and partnering with young firms whose technology can be applied across its education and care services.