Cool Japan and other state-backed funds hit by huge losses

Poor management identified as a key cause for underwhelming performance

20191011 A-Five and cool japan

Some of Japan's major public-private funds like Cool Japan and A-Five are struggling to make up losses on their investments. (Source photos by Kyodo and screenshot of A-Five website)

HISAO KODACHI, Nikkei staff writer

TOKYO -- Kunihiko Ono, president of Kyoto-based farming startup Sakanotochu, had a problem that many executives face: jittery investors.

In May, his company raised 600 million yen ($5.56 million) in a private placement with venture capital along with money from A-Five, a public-private investment fund that receives monies from the agriculture ministry. But one of Ono's investors was worried, claiming that A-Five knows little about farming and has a reputation for interfering with the companies in which it invests.

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