Visions - Spring 2020 - 6

BUSINESS DEVELOPMENT

R&D Fund Builds the Businesses
of Tomorrow by Investing Today
CALIFORNIA

Santa Clara

n 2017, SC and SCOA established the Research & Development Fund as a method to invest in startup
companies that showed promise in one particularly identifiable way: how they would use technology to
assist SCOA business groups. As a de facto venture capital resource, the R&D Fund became the tool by
which SCOA could invest in disruption - as well as improvement - of their own businesses once the
company achieves scalability. Through SCOA's Silicon Valley Office, and in cooperation with Presidio Ventures,
a corporate venture capital of SC Group, this investment vehicle has supported 12 different startup
companies since the fund's inception, and that is just the beginning.
The
SCOA Silicon
Valley Office
team

"This R&D fund was established in my predecessor's
time," explained Tak Niki, General Manager of SCOA's
Silicon Valley Office. "The fund was created to support
new businesses for our business groups in terms of utilizing new technology, specifically from startups. It provides
financial support for transforming our present businesses
using these new technologies. After two years, I can say
that many business groups and units have been using this
fund to forge into new areas."
"With 12 total investments, I can say that we are on the
right track and we are constantly increasing our portfolio," Niki further explained. "However, when it comes
to results, because the nature of this fund's investment is
concentrated on early stage startups, the technology is
also still in early stage development, and monetization
is very challenging. It takes more time than expected to

Investment Profile Highlight | Elementum 3D
Elementum 3D, Inc. serves as an additive manufacturing research and development company
specializing in the creation of advanced metals, composites and ceramics. By securing a
patent for a special metal powder blended with ceramics that enables faster printing speed,
stronger mechanical properties and a wider usage of metal grades that have not traditionally
been suitable for additive manufacturing, Elementum 3D looks to expand the marketing and
sales of this proprietary powder, thanks to the investment from SCOA's R&D Fund.
"This investment is an excellent complement to our growing portfolio in the additive
manufacturing space," said Mr. Kazuaki Tsuda, SVP & GM of SCOA's Steel and Non-Ferrous Metal Group. "Elementum
is pioneering new intelligence related to the raw materials supply chain in additive manufacturing, and we see abundant
opportunity for these applications in the near future."
Elementum's products have the potential to be utilized across several of the company's business verticals, including
steel, mineral resources, aerospace and tubular, with technology that could disrupt the current supply chain altogether.
Additive manufacturing end-users could find themselves working directly with Elementum rather than traditional raw
materials manufacturers.
"We are excited to have Sumitomo Corporation of Americas come onboard as an investor. It speaks volumes that a
company of this size and reach has such confidence in what we are creating," said Dr. Jacob Nuechterlein, President
at Elementum 3D, Inc. "With this funding, we are eager to get our product further out into the marketplace and
continue to grow our client base."
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Spring 2020

Visions - Spring 2020

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