SBI Holdings Launches ¥100 Billion Fund for Web3 and AI Startups
SBI Holdings, a major Japanese financial firm, has announced plans to launch a ¥100 billion ($660 million) fund dedicated to startups focusing on web3, artificial intelligence (AI), and the metaverse. This venture capital initiative is set to debut in 2023 and is a rare occurrence in Japan, known for its mature crypto regulations.
The fund is expected to invest several hundred million to several billion yen per company, with an estimated 150 to 200 companies receiving investment. Notably, it has already secured over ¥50 billion in commitments from major financial institutions.
The creation of this fund aligns with the Japanese government’s recent efforts to foster startup growth, as outlined in the “Five-Year Plan for Startup Development” established by the Kishida administration in November 2022.
Mizuho Executive Boasts About Startup Success
In an interview from June 2023, Mizuho executive Kazutoshi Isogai boasted about the success of many of its funded startups, emphasizing that “Startup business has been our forte.” The government’s ambitious goal is to create 100 unicorns and 100,000 startups, making Japan the largest startup hub in Asia and among the leading startup clusters globally.
Tailoring Crypto Regulations to Benefit the Tech Industry
Aside from financial support, the Japanese government is also working to create a conducive environment for emerging sectors by allowing startups to issue crypto tokens instead of stocks when seeking public funding. This move aims to diversify income streams for new businesses and further advance the country’s mature crypto regulations.
The new form of equity financing is subject to the Limited Partnership Act for Investment, which sets conditions under which limited liability partners can sell shares to unlimited liability partners. Japan continues to lead in crypto regulations and has recently introduced new stablecoin legislation.
Hot Take: Japan’s Growing Tech Startup Sector
SBI Holdings’ fund and the government’s supportive policies signal a significant shift in Japan’s tech startup sector. The country is nurturing its domestic startups and positioning itself as a global leader in the web3, AI, and metaverse industries.
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