Relations between Estonia and Japan

Estonia and Japan are two countries divided by nearly 8000 kilometres. Whilst the distance between the countries is an undeniable geographical fact, the people and the cultures of the countries are more similar than one might presume. These two countries are also united by a strong belief in education and innovation.

The historical relations between Estonia and Japan go back to the time when Estonia became independent for the first time in 1918. Japan officially recognised the independent Republic of Estonia de facto on 6 March 1919 and as a member of the Supreme Council of the Entente de jure on 26 January 1921. However, even before an independent Estonia became reality, the Estonian born explorer Adam Johann von Krusenstern led an expedition from the Russian empire which made its way to Japan in the early 19th century.

Following the Restoration of Independence in Estonia on 20 August 1991, Japan officially recognised the independence of the Republic of Estonia on 6 September 1991. In January 1993, Japan’s embassy in Tallinn was opened and in March 1996 the Embassy of the Republic of Estonia was opened in Tokyo.

In modern times the synergy between Estonia and Japan has largely depended on our common experience and fascination with technology. The first Japan – Estonia Cyber Dialogue was held in Tallinn in December 2014, followed by a second one that was held in Tokyo in December 2015. These dialogues enabled the Japanese and Estonian participants to have lively discussions on topics, which included cybersecurity. Furthermore, the former Prime Minister of Japan, Shinzo Abe, is among the most notable Estonian e-residents.

Though the economic relationship between Estonia and Japan is exciting, there is still so much more room for flourishment. Estonian companies have potential but may lack the necessary capital or the market to make the most of that. The goal of the EJTC is to create a more substantial harmony between Estonia and Japan whilst creating value for its own shareholders.

The history between Estonia and Japan is rich and varied. The goal of Estonia Japan Trading Company AS is to expand on that history and leave its own mark.

The Focus of the Company

Beside the traditional trading, the primary focus of EJTC is facilitating investments to innovative Estonian and Baltic region companies with exciting growth opportunities and scalable business models.

EJTC invests in companies with the potential aiming to take their business to the next level and thereby creating value for EJTC and its shareholders. EJTC is looking for start-ups that need between EUR 200 000 to EUR 2 000 000 in capital injection. EJTC seeks returns of at least ten times their initial investment, within eight years. This level of return on investment is essential due to the high risk and likelihood of failure among early-stage ventures. EJTC is ready to take both short term as well as long term equity positions.

EJTC will be technically structured as a holding company, administrating the activities of the EJTC group companies. The intention is to structure each business-line of the Company under a separate subsidiary of the Company, we also do not exclude opening subsidiaries in other jurisdictions, as the case may be. EJTC reviews the operations of its group companies as a business portfolio and leads the day-to-day management of investments and activities.

In deciding on the companies to invest in, EJTC values experienced and capable management teams, with a clear ambition. EJTC is an opportunity for the companies in the Baltics to gain access not only to Japanese capital, but also the Japanese market.

The purpose of EJTC is to empower founders and companies to develop their business with access to additional capital and market opportunities, without becoming overbearing and limiting their creativity.