Innovation Kyoto 2016 Investment Limited Partnership ("KYOTO-iCAP No.1 Fund"), with Kyoto University Innovation Capital Corporation ("Kyoto iCAP") (Head Office: Sakyo-ku, Kyoto; Representative Director: Koji Murota) as the general partner, has made an investment in Stem Cell & Device Institute Inc. (SCAD) (Head office: Shimogyo-ku, Kyoto; Representative Director: Kensuke Kato), a venture company that utilizes research results from Kyoto University.

Execution of Investment in ○SCAD
SCAD is a company that develops and markets cellular devices for drug screening applications by combining technology developed by Professor Emeritus Norio Nakatsuji, founding director of the Institute for Integrated Cell-Material Sciences (iCeMS) at Kyoto University, with nanofiber and other device technologies to induce differentiation of human iPS cell-derived cardiomyocytes and other cells to mature and enhance the functionality of these cells. The company develops and sells cellular devices for drug screening applications by combining technology to induce differentiation of human iPS cell-derived cardiomyocytes and other cells and device technology such as nanofibers. The use of human iPS cell-derived cardiomyocytes in the evaluation of cardiotoxicity in the drug discovery process is increasingly being discussed for international standardization, particularly in Japan, the U.S., and Europe. SCAD is expected to become a leading company in the development of human iPS cell-derived cell products for full-scale industrial applications. SCAD plans to further enhance the functionality, stabilize the quality, and mass-produce cell products through this private placement of new shares.

Following the Series A private placement made on June 15, 2016, Kyoto iCAP has now invested approximately ¥160 million in SCAD's Series B private placement totaling approximately ¥350 million, together with Nissay Capital Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director: Eiji Arima) and SMBC Venture Capital Co. (Head office: Chuo-ku, Tokyo; Representative Director: Tatsushi Ishibashi), and invested approximately 160 million yen as lead investor.

Outline of Stem Cell & Device Institute, Inc.

Establishment	May 2014
Business	Development and marketing of cellular devices for drug discovery screening
Head Office Location	Shimogyo-ku, Kyoto
President & CEO	Kensuke Kato