KYC Consulting, a provider of enterprise risk databases, KYC Consulting, a provider of corporate risk database, raises a total of 420 million yen through a Series C round third-party allotment of shares Total amount of 420 million yen raised through Series C round of third-party allotment

~Allocated for the development of an overseas level risk information monitoring system

2024.02.07 14:15

KYCコンサルティング株式会社

KYC Consulting Corporation (headquartered in Chiyoda-ku, Tokyo; Hisamasa Tobinai, President; hereinafter "KYCC"), a provider of corporate risk databases, raised a total of 420 million yen in a Series C investment round (*) in February 2024 through a private placement of new shares. The subscribers were Deep Core Inc. as an existing investor, JIC Venture Growth Investments, Inc. as a new investor, Nippon Venture Capital, Inc. and one other operating company.

Compliance with FSA guidelines Aiming to achieve continuous monitoring in customer management

KYCC offers Risk Analyse, a web-based compliance checking tool, and Solomon, an advanced functional risk information retrieval system.

In November 2021, the Financial Services Agency (FSA) published the "Guidelines on Anti-Money Laundering and Anti-Terrorist Financing". According to the Guidelines, "Customer Due Diligence (CDD)" refers to "a series of steps to investigate each customer's information and the nature of transactions conducted by the customer, and to determine and implement mitigation measures to be taken based on the investigation results in light of the risk assessment results. It is also positioned as "a core element of risk mitigation measures.

The funds raised will be used to develop a real-time system for continuous monitoring of CDD in accordance with the guidelines and to strengthen the organization. The system is scheduled for release this summer. This system is scheduled for release this summer.

We aim to raise the level of risk management and safety in Japanese society to that of advanced KYC (Know Your Customer) countries overseas, and to realize sound economic transactions.

*Funding round: A funding mechanism originated in the U.S. that divides the business stages of a startup company into six stages. An indicator that investors use as a guideline for investing in a company.

Comments from Underwriters

Satoshi Suenaga, Partner, JIC Venture Growth Investments, Inc.

Taking appropriate measures to eliminate antisocial forces and AML/CFT is essential for each company to fulfill its social responsibility, but conventional methods are time-consuming and costly.

KYCC's service enables both proper customer management and pursuit of business efficiency and productivity through the power of technology, and we believe that this service is in demand by many companies.

Minoru Tagaya, President and Representative Director, Nippon Venture Capital Co.

KYC Consulting's "Risk Analyze" and "Solomon" products, which enable the timely consolidation of compliance checks, have the potential to become tools for solving social issues. The importance of compliance checks has been increasing in recent corporate activities, and we believe that it is directly related to the economic losses incurred by companies as well as society. We would like to support the future development of our company, which maintains expertise in this field.

Mr. Yuki Nara, Manager, Deep Core, Inc.

We are pleased to have invested in this round, following our investment in 2022. With the diversification of business partners due to open innovation and other factors, the need for compliance checks is increasing, especially among major companies. We believe that Risk Analyze and Solomon provided by KYCC can meet the demand in this trend. We look forward to continuing our support for further growth.

■Outline of the underwriting company (in no particular order)

Company name: JIC Venture Growth Investments, Inc.

Location: 1-3-1 Toranomon, Minato-ku, Tokyo

Representative: Hideki Yarimizu, President and Representative Director

Establishment: July 2020

Capital: 20 million yen

URL : https://www.j-vgi.co.jp/

Company name: Nippon Venture Capital Co.

Location: Marunouchi Building 34F, 2-4-1 Marunouchi, Chiyoda-ku, Tokyo

Representative: Minoru Tagaya, President and Representative Director

Establishment: February 1996

Capital: 2.05 billion yen