Mizuho Financial Group Inc., a Japan-based holding company, has raised ¥14.3 billion (US$97 million) for its new startup fund.

The Tokyo-based lender announced on July 9, 2025, that the fund is co-managed with payments startup Upsider Inc.

It includes investments from seven Japanese financial institutions, including Sumitomo Mitsui Trust Bank Ltd. and Fukoku Mutual Life Insurance Co.

This funding marks an increase in support from Japanese banks for local startups.

The new fund is part of Mizuho’s strategy to expand into the private credit market.

Mizuho and Upsider previously launched a ¥10 billion (US$64.5 million) fund in November 2023, targeting growth-stage companies.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Japanese banks’ strategic shift to alternative investments follows global trend

Mizuho’s new ¥14.3 billion startup fund represents a broader strategic pivot among Japanese financial institutions moving beyond traditional banking into alternative investments.

This latest fund follows Mizuho’s previous ¥10 billion startup fund launched just six months ago in November 2023, demonstrating an accelerating commitment to this investment category.

Mizuho has been methodically building experience in alternative investments since at least 2016, when it launched the Cosmic Blue PF Trust Lily infrastructure fund that eventually raised ¥33 billion ($302 million) by 20171.

The participation of seven Japanese financial institutions in this latest fund, including major players like Sumitomo Mitsui Trust Bank, indicates this shift extends beyond Mizuho to the broader Japanese financial sector.

This movement reflects global trends where established financial institutions are diversifying their investment strategies beyond traditional lending into higher-yield alternatives to boost returns in a challenging interest rate environment.

2️⃣ Private credit’s explosive growth attracts both capital and regulatory scrutiny

Mizuho’s push into private credit comes amid extraordinary growth in this market, which has expanded nearly tenfold since 2009 to reach approximately $2 trillion by 20232 and reportedly surpassed $3 trillion more recently3.