Rakuten Ventures launches $85m fund aimed at Japanese startups

Photo credit: Moyan Brenn

Rakuten Ventures, the venture capital and investment arm of Japan’s Rakuten group, today announced the launch of the Rakuten Ventures Japan Fund, worth JPY 10 billion (US$85 million). The capital commitment has been approved by Rakuten Ventures parent company, Rakuten Inc.

The fund will be aimed at early and growth-stage Japanese startups that focus on “unique technologies and business models,” according to a press release. This includes unique ecommerce models, marketing tech, adtech in the realm of programmatic audio and native advertising, and gaming.

The amount invested in each startup and the equity stake Rakuten Ventures takes will vary with each investment, Saemin Ahn, managing partner at Rakuten Ventures, tells Tech in Asia. Rakuten Ventures will look to provide a runway of two to two-and-a-half years to businesses, allowing them to grow without being distracted by fundraising.

The fund will be run out of Singapore, by Saemin and investment manager Hogil Doh.

Through its previous funds, like the 2013 Southeast Asia Fund and 2014’s US$100 million Global Fund, Rakuten Ventures has invested in startups worldwide, including Carousell, Coda Payments, PocketMath, and AdsNative.

“Through investing in diverse industries and sub-verticals we reaffirmed our philosophy of investing in good tech, products, and services that Rakuten Ventures understands and can add value to,” Saemin says.