Japan’s Incubate Fund reloads, raises $92M for investment

Japan’s startup news cycle is kicking the year off with a bang. Incubate Fund, a well-known seed-stage venture capital firm, announced today the start of a new JPY 11 billion (US$92 million) fund. The funds will be used over a 10-year term.

Incubate Fund tells Tech in Asia that the new fund will be investing multi-million dollars in startups as opposed to the sub-US$1 million amounts it has typically done. The firm will also begin to focus more closely on startups involved in the internet of things (IoT).

Incubate Fund’s public interest in IoT is part of a growing trend in Japan. Major organizations like Yahoo Japan and GMO have identified IoT as a target industry for growing their own businesses. With Incubate Fund supplying cash to startups, the competitive landscape will grow more crowded.

Key investors in the fund include prominent public-private investment organizations (Innovation Network Corporation of Japan and the Development Bank of Japan) as well as major tech firms (Yahoo Japan, Mixi, Sega Sammy, and Taizo Son’s Mistletoe). The heavy-hitters don’t stop there as Tencent Holdings, banking conglomerate SMBC, and major broadcaster TBS all chipped in as well. Nikkei reports that the Innovation Network Corporation of Japan put in the biggest chunk of change, with roughly US$42 million.

Incubate Fund was established in 1999 and has so far invested US$171 million. Notable successes include Gumi, Cybozu, Pokelabo, MugenUp, Origami, and Sansan. This marks the firm’s third fund.

See: GMO buys Finland’s Ubisecure for $12.3M to lay groundwork for Internet of Everything