Japanese giant SBI Holdings will start managing a fund to invest in Start-ups such as Web3, AI (artificial intelligence) and Metaverse by the end of 2023.
SBI Holdings Invests in Web3, AI and Metaverse
The investment amount per investment is expected to range from several hundred million to several billion yen, with investments in 150-200 companies in total.
The total fund is expected to be worth 100 billion yen. Major Japanese banks and regional banks will also be invited to invest in the fund to support Japanese start-ups.
The fund has already received commitments to invest a total of over ¥50 billion, including from Sumitomo Mitsui Banking Corporation, Mizuho Bank, Nippon Life Insurance and Daiwa Securities Group.
There are very few venture capital (VC) funds at the 100 billion yen scale in Japan, and an SBI representative commented that the presence of a financially strong provider is essential to nurturing Start-ups that can compete globally.
Japan now faces the challenge of nurturing Start-ups. In November 2022, the Kishida Government decided on the content of the Five-Year Plan for Start-up Development.
He noted the challenge at the time, saying, “By 2022, although a wide range of challengers have emerged, the rate of startups and the number of startups remain low compared to the United States and Europe.”
*This is not investment advice.