Japan SBI Holdings Unveils 100 Billion Yen Fund for Web3 and AI Startups

SBI Holdings, a prominent Japanese financial institution, is set to inaugurate a fund in 2023 aimed at investing in emerging startups in fields like Web3, artificial intelligence, and the Metaverse.

Renowned Chinese reporter Colin Wu spotlighted the development in a recent post, citing a local Japanese publishing outlet.

The new fund of Japanese financial giant SBI Holdings will begin investing in Web3, AI, metaverse and other start-up companies, totaling 150 to 200 companies. The total fund is expected to reach $663 million. Half of the LPs come from other traditional consortiums in Japan.…

— Wu Blockchain (@WuBlockchain) November 9, 2023

100 Billion Yen for Web3, AI

According to the report, the fund anticipates individual investments ranging from hundreds of millions to several billion yen. It targets a portfolio of about 200 companies, with the total fund value seeking to reach 100 billion yen or $662,365,000. 

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With the magnitude of the projected fund, SBI Holdings invites significant domestic and regional banks to contribute investments to bolster the Japanese startup space. 

Furthermore, the report noted that leading financial organizations, including Mizuho Bank, Sumitomo Mitsui Banking Corporation, Daiwa Securities Group, and Nippon Life Insurance, have committed over 50 billion yen to the initiative. 

Notably, an SBI representative has underscored the need for a potent sponsorship to cultivate startups capable of competing globally. The statement read: 

“In order to foster startup companies that can compete on the global stage, the presence of a source with financial power is essential.”

Japan Startup Ecosystem 

Meanwhile, the report highlighted that the move from SBI Holding comes as Japan grapples with fostering a robust startup ecosystem. It highlighted that in November 2022, the Fumio Kishida-led administration sketched a “5-year startup development plan.” 

Quoting the Japanese prime minister, it argued that despite an influx of innovative entrepreneurs, Japan lags behind the U.S. and Europe in startup rates and unicorn companies.

As a result, the Kishida-led administration seeks to propel startups to the forefront. The objective is to use them as economic and social sustainability catalysts to pursue “new capitalism.” 

Emphatically, the five-year plan aims to amplify startup investment to 10 trillion yen or $66,222,530,000 ($66.2 billion) by 2027. According to the report, the projection is a tenfold increase from the 2022 figures. It added that the government envisages partnerships between the public and private sectors to achieve this target.

Ultimately, the administration aims to create 100 unicorns and 100,000 startups, positioning Japan as Asia’s largest startup hub.