Sony And Daiwa Are Setting Up A 20 Billion Yen Startup Growth Fund

By Noah Long ● July 9, 2019
  • Sony and Daiwa Capital announced recently that it established the Innovation Growth Ventures (IGV) with an aim to hit 20 billion yen in size

Sony Corporation and Daiwa Capital Holdings Co (a subsidiary of Daiwa Securities Group) announced recently that it established the Innovation Growth Ventures Co., Ltd. (IGV) — which is a joint venture company that was created for the purpose of establishing a joint investment fund.

And IGV recently completed the first Limited Partner commitment for its Innovation Growth Fund, which was established for the purpose of investing in startup companies in key high-growth industries.

“Through its corporate venture capital activities to date, Sony has incubated the next generation of technologies and startups while promoting open innovation,” said Sony EVP Toshimoto Mitomo in a statement. “With the establishment of this fund through IGV, we hope to accelerate open innovation while contributing to social development. Sony will support IGV’s efforts to maximize the performance of this fund, based on the experience it has cultivated through its corporate venture capital activities.”

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As of the first closing in June 2019, financial institutions like Sumitomo Mitsui Banking Corporation and Osaka Shoko Shinkin Bank along with entities such as Mitsubishi UFJ Lease & Finance Company Limited and educational institution which operates university have signed on to the Fund as limited partners.

“Daiwa Securities Group has held traditional securities as its core business while striving to expand its business portfolio as an integrated securities group with a hybrid business model,” added Daiwa Securities Co. executive managing director Yoshihisa Kaneko. “Through this fund, we hope to contribute and provide various forms of support to our investment targets, including sourcing, support with stock market listing, and matching support with other listed firms. We believe that the integration of Sony’s insight of cutting-edge technologies and Daiwa Securities Group’s expertise in finance will lead to the creation of a new kind of venture capital business while providing the spark for new trends in the venture capital ecosystem.”

IGV is going to leverage the platform of the Sony group and Daiwa Securities Group while supporting the Fund’s portfolio companies. And the Fund is aiming to hit 20 billion yen in size.

“By harnessing the various resources of Sony and Daiwa Securities Group, IGV aims to support the business growth of portfolio companies and thereby increasing investment returns,” explained Innovation Growth Ventures representative director Gen Tsuchikawa. “Furthermore, by supporting collaborations between the portfolio companies and third parties, including renowned research institutions and other startup companies, we also hope to contribute to the promotion of open innovation. We hope to take full advantage of the wealth of corporate venture capital experience offered by both Sony and Daiwa Securities Group.”