Japanese Finance Powerhouse Initiates 660M Dollars Fund to Support Startups in Web3, AI, and Metaverse Spaces

Crypto News– SBI Holdings, a prominent player in the Japanese financial scene, has declared its plan to roll out a ¥100 billion ($660 million) fund tailored for startups specializing in web3, artificial intelligence (AI), and the metaverse.

This fund, slated to kick off in 2023, stands out as a rare instance of substantial venture capital in Japan, a country renowned for its well-established crypto regulations. Anticipated to invest varying sums, from several hundred million to several billion yen per company, the fund is set to extend its financial reach to 150 to 200 startups.

Japanese Finance Powerhouse Initiates 660M Dollars Fund to Support Startups in Web3, AI, and Metaverse Spaces

What adds a feather to its cap is the early commitment of over ¥50 billion from major financial heavyweights, including Sumitomo Mitsui Banking Corporation, Mizuho Bank, Nippon Life Insurance Company, and Daiwa Securities Group.

This strategic move aligns seamlessly with the Japanese government’s recent push to cultivate startup growth. Back in November 2022, the Kishida administration laid the groundwork for a “Five-Year Plan for Startup Development,” to ramp up the current ¥800 billion investment in startups to a staggering ¥10 trillion by 2027.

In a June 2023 interview, Mizuho executive Kazutoshi Isogai couldn’t help but brag about the success of many startups in their portfolio:

“Startup business has been our forte.”

The government’s ambitious target is nothing short of creating 100 unicorns and birthing 100,000 startups, propelling Japan into the position of the largest startup hub in Asia and a heavyweight in the global startup arena.

Crafting Crypto Regulations for a Tech-Friendly Landscape

Alongside providing financial backing, the Japanese government is actively fostering a favorable environment for burgeoning industries. A notable shift involves the green light given to startups to issue crypto tokens instead of traditional stocks when venturing into public funding.

This strategic move is geared towards broadening revenue channels for nascent businesses and pushing the envelope on the nation’s already mature crypto regulations.

This innovative approach to equity financing falls under the jurisdiction of the Limited Partnership Act for Investment, establishing the terms and conditions for limited liability partners to sell shares to their unlimited liability counterparts.