IMJ launches new $52m fund focused on Japanese startups

Photo credit: Moyan Brenn

IMJ Investment Partners (IMJ), a Singapore-based venture capital fund, will focus on Japan with a new US$52.16 million fund.

Although IMJ has supported startup acceleration programs in Japan, it has been investing mostly in Southeast Asian companies until October of last year, when it established IMJ Investment Partners Japan. This new fund is the first of the Japan branch and, according to a press release on IMJ’s website, US$17.44 million has already been committed. IMJ has begun investment activities and aims to raise the additional funding by the end of 2016.

While this new fund lags behind large corporate venture capital (CVC) funds like Rakuten’s new US$86.93 million fund and Globis’ US$139.50 million fund, it now puts IMJ on par with well-known Japanese CVCs such as Gree and their US$43.59 million fund.

Previously also a CVC, IMJ prides itself on now being fully independent. When asked about starting the fund, IMJ responded, “In Japan it is said that there are few players who are willing to contribute risk money above series A. In regards to that, we thought we could support the ecosystem by being a fund that can invest at a level of a few million dollars. In addition, there are not many VCs who can be a bridge to Southeast Asia. We also want to improve that.”

The fund will mainly contribute to startups in stages above series A and is looking for companies to disrupt large traditional markets such as banking, healthcare, education, and security. It is also looking to shake up markets with large cross segments like artificial intelligence, alternate and virtual reality, internet-of-things, robotics, online-to-offline, and blockchain technologies.

Converted from Japanese Yen. Rate: US$1 = JPY 114.79

Update on February 11 2016, 12:37pm JST: We previously wrote that IMJ is a corporate venture capital firm. It is in fact fully independent now.
Update on February 13 2016, 10:20pm JST: Article was updated to include IMJ’s response about starting the fund.