The shipping industry, which has a history of more than 100 years, has a well-established business model of "transporting cargo by ship," which makes it difficult for new businesses to emerge. However, with the changing of times, we are required to look ahead to the future of logistics in order to meet new challenges.
Under these circumstances, MOL PLUS was established as the first corporate venture capital (CVC) in the shipping industry. It was founded in 2021 as an organization that "PLUS" new value to the ocean shipping industry and society, then how has it changed? We asked Mr. Takuya Sakamoto, a founding member and Chief Executive Officer, about its history and future prospects.
--- Please tell me about MOL PLUS.
Mr. Sakamoto
MOL PLUS is a CVC established by MOL to develop new businesses. We are working with startups to create innovative businesses that are not bound by existing shipping businesses.
The company invests in early- and mid-stage startups in Japan and overseas, with a planned investment limit of 4 billion yen. Approximately 70-80% of the investment will be made directly to startups, with the remaining 20-30% going to venture capital (VC) funds. Through M&A and joint ventures with investee companies, we aim to contribute to MOL's profits and obtain strategic returns. We also aim to gain financial returns from exits and secondary benefits like personnel exchanges and knowledge sharing.
For more information about MOL PLUS, click here.
MOL PLUS Corporate site
---What has changed compared to previous CVC trends?
Mr. Sakamoto
About 15 years ago, most startups were software companies. These business models were relatively capital-free and could grow independently with talented engineers, so collaboration with operating companies was not essential. In recent years, however, there has been an emphasis on solving environmental and social issues, and there is a need for startups to tackle major issues on a global scale, rather than simply improving convenience. For this reason, it is essential to cooperate with companies in heavy industry. Companies in the plant and heavy industries sectors that were once distant from startups are now among the top companies willing to work with them.
In this context, expectations for the marine transportation industry are rising, and when we interviewed related parties at the time of the launch of MOL PLUS, we heard many comments that welcomed MOL's new business development. There are few companies in the Japanese shipping industry that handle CVCs, and MOL's access to shipping, logistics, and maritime businesses makes it a strong investor. For example, when introducing renewable energy solutions to ports, knowledge of port operations and connections with ports around the world are essential for business growth. MOL's ability to leverage this infrastructure knowledge makes it a very valuable and attractive partner for startups in the future.
---What do you focus on as the criteria for choosing investments?
Mr. Sakamoto
In selecting investment targets, we place the greatest emphasis on the potential for growth and the potential for collaboration. Specifically, whether the company will expand sales and generate profits as planned. It also means how much potential they have to collaborate with MOL. These are the basic criteria.
However, specifically, we have set investment themes which have social issues and growth areas in mind. For example, if the theme is "labor shortage in the shipping industry," various areas such as robotics for automation and digital processing for operational efficiency are candidates. I think it is best to look at themes rather than areas, as there are limitations to choosing where to invest based on areas.
One of the themes we are pursuing is "new business models in ocean utilization." In the area of "renewable ocean energy," a variety of venture businesses have emerged, including offshore wind power generation, wave power generation, ocean thermal energy conversion, and tidal power generation. The aquaculture market is expanding due to the importance of securing protein sources for the growing population. In terms of post-catch transportation, the cold chain transportation (low-temperature transportation) is also involved, and cooperation with MOL is expected. Interest in blue carbon (CO₂ absorption using the oceans) is growing, and new businesses contributing to solving environmental issues are increasing. For something a little different, in 2024, we decided to invest in a company, Innovative Space Carrier Inc, developing rockets. Some of you may think, "What does space have to do with the ocean?" Not all rockets remain in space after launch, and the fuselage will be reused dozens of times. The collection will be conducted at sea, so if the number of launches increases, business opportunities will be created here. Truly, the ocean has endless possibilities.
Looking at the total investments currently being made, approximately 30% are related to ocean shipping and logistics, and approximately 30% are related to new marine businesses. The other 40% are new businesses that we focus on regardless of the theme. If we focus on the investment themes we set, we risk missing out on innovative technologies and businesses that we could not imagine. We are always on the lookout for potential investments by keeping an eye on market trends.
---How has MOL PLUS grown and changed since its creation in 2021?
Mr. Sakamoto
The number of investment projects is progressing as planned with 24 direct investments and 6 investments in VC funds, which is in line with the target. With offices all over the world, including the UK, Singapore, and India, the 18 members extend their startup investments beyond borders. The MOL Group has also launched a fund called MOL Switch, specializing in renewable energy, and DAIBIRU CORPORATION, a real estate-related Group company, has launched a CVC, accelerating the creation of new businesses across the Group. However, as this is a new business, there are many issues that need to be addressed and followed-up from a long-term perspective.
---What does MOL PLUS need to do to grow in the future?
Mr. Sakamoto
What will be required from now on is “selection and concentration”. While it is necessary to secure a large number of investment targets for a successful new business, it is also important to balance the number of at-bats and the batting average. Over the next two to three years, the key will be to identify the top 20% or so projects that are expected to produce greater results, and to concentrate resources such as human resources and funds on these projects.
Related to this, securing and developing human resources is a major issue. About half of the members of MOL PLUS are internal candidates from MOL, and they are highly motivated to participate. However, because the shipping industry is a company that is responsible for infrastructure, there are cases in which even though they are good at executing their business reliably, they are not accustomed to continuing to take on challenges while making many mistakes. On the other hand, those who come from outside, such as CVCs and consultants, need to learn the length of the time frame that is unique to the industry and the communication methods that make it easy to gain sympathy in negotiations within MOL. We use a good combination of both onboarding and assignment to put the right people in the right places, such as using experienced personnel in areas related to marine logistics and incorporating the expertise of people from outside the company in new business areas. In order to develop human resources suitable for new businesses and create an environment where they can continue to take on challenges, MOL PLUS will proactively engage in human resource development and create a cycle where they can play an active role.
Nevertheless, the success of a new business depends on the willingness of each individual to "want to do this!" Rather than making decisions from the top down, we have established a flexible system to determine roles through discussions with internal and external stakeholders so that each employee can maximize his or her abilities in areas that match the theme.
---What is your outlook for the future?
Mr. Sakamoto
Our ultimate goal is to create new businesses. In this regard, while the approach of MOL PLUS to startup investment and to its in-house development of new businesses are different, the goal is the same. For this reason, we intend to strengthen cooperation with each business division of MOL to support new business development. Our job is to be “connoisseurs” who explore the growth potential of startups on a daily basis, so we are good at giving advice such as, “This point is weak as a plan,” or “You should analyze your competitors a little more.” I would like to work with people who aim to create new businesses by raising their perspective, rather than sticking to their own territory.
(This article is based on interviews conducted in February 2025.)