Japanese funds push record high investment into start-ups since financial crisis

21 March 2017   Category: News, Asia, Global   By Asia Asset management

Japanese funds’ investments in start-ups reached 276.3 billion yen (US$2.45 billion) last year, with a significant increase from independent venture capital (VC) funds.

The amount is the largest since the financial crisis in 2008, and was up from 236.1 billion yen in 2015, according to a report in Nikkei Asian Review, which cited data from Tokyo-based Japan Venture Research.

The report says 53 start-up funds were set up by VC groups and non-financial companies last year, down from 58 that were created in 2015, but up from 47 in 2014.

Independent funds accounted for 44% of the total with 121.2 billion yen in 2016, up from 18.2 billion yen in 2015. University-linked funds also increased from 41.1 billion yen in 2015 to 56 billion yen last year.

Across Southeast Asia, Tech in Asia’s database shows that Singapore start-ups drew the most financing, with US$1.4 billion of investments, followed by Indonesia and Malaysia, with $967 million and $84.8 million respectively. Thailand drew $79.3 million and Vietnam $60.9 million.

Total start-up funding in Southeast Asia jumped over 60% to $2.6 billion in 2016, as compared to the previous year’s $1.6 billion, according to Tech in Asia. This was despite the number of deals falling from 380 in 2015 to last year’s 365.