Japanese VC firm acquires Fort Collins-based EnConnect

FORT COLLINS — A venture-capital firm based in Japan on Thursday announced that it has acquired Fort Collins-based EnConnect Holdings LLC and will use the firm as its U.S. headquarters.

Future Venture Capital Co. Ltd. acquired EnConnect, founded by Hope Hartman and Denny Otsuga in 2015, which will operate as FVC Americas. Financial terms of the deal were not disclosed.

Otsuga said he is working out of his house, but he is looking for a location for the company. Right now, the only employee is Otsuga, but he expects to add up to four employees in the future.

Hartman left EnConnect when the company was acquired. Now, she is the executive director of BizGirls and director of community success at Community Funded, two organizations based in Fort Collins.

FVC Americas will operate as a subsidiary of Future Venture Capital and offer resources to small businesses and entrepreneurs, including venture-capital investment to startups in Northern Colorado.

In October, the city of Fort Collins and Future Venture Capital Ltd. agreed to collaborate on projects to connect cities, venture businesses, corporations, investors and entrepreneurs in Japan and Colorado.

Josh Birks, Fort Collins’ economic health director, said this announcement continues to solidify the collaborative relationship between the city and FVC.

“With FVC and its strengths, we’re excited to integrate valuable international experience and influence into our innovation ecosystem, energizing our already vibrant local economy,” Birks said. “We look forward to working together in an effort to retain, develop and recruit innovative startups and small businesses.”
Otsuga assisted Future Venture Capital in its decision to choose Colorado over other states to establish its first subsidiary outside Japan.

Otsuga is also director of Venture Community Development for the Rockies Venture Club, the largest angel investor network in Colorado, which has a chapter in Fort Collins.

“With a presence in Fort Collins and a comprehensive approach to supporting small and startup businesses, FVCA will build on an already strong community,” Otsuga said in a prepared statement. “It will undoubtedly bolster our growing network of entrepreneurs in Northern Colorado and beyond.”

Yuji Fujinaga, chief strategy officer of FVC, said after working with Otsuga, FVC became aware of a “vibrant startup environment in Colorado.” He said the company has contributed to the growth and success of ventures in small- and medium-size communities in Japan. “We’re excited to continue our work in the United States, starting in Colorado.”

Future Venture Capital, founded in 1998, is publicly traded on the Tokyo Stock Exchange’s Jasdaq market. It has invested in 350 deals since its inception and currently manages 25 funds totaling more than $200 million in assets. FVC often invests in early-stage deals as the lead investor. FVC provides resources to startups, including workspace, education, events, mentors, strategic partners and exit support.

Prior to co-founding EnConnect, Otsuga supported the technology transfer and commercializing of intellectual property at Colorado State University as vice president of CSU Ventures. He also was executive director of the University of Kentucky’s Office of Technology Transfer, and founding director of the South Dakota State University Technology Transfer Office.

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