Japan’s Sumitomo Mitsui Banking Corporation (SMBC) along with its investment arm SMBC Venture Capital Management (SMBC VCM) and venture capital firm Global Brain has jointly set up a fund worth JPY 30 billion (US4210 million).

The “SMBC-GB Growth Fund” aims to invest in promising startups that will underpin future economic growth in Japan.

According to the statement,

“Global Brain sees the current situation as a unique opportunity for Japanese startups and VCs to bring more Japanese startups to a global unicorn status. We are committed to vigorously investing in new startups with potential to innovate the next generation of business.”

While many startups are being founded in Japan, the number of unicorns remains low compared to the United States and Europe. The impact is particularly significant at later stages, with down-round IPOs occurring, creating a challenging environment for startups to raise funds.

Under such circumstances, Global Brain, working hand in hand with SMBC Group added that it “will invest billions of yen in startups that seek to make a strong impact on the Japanese economy and further back them to become unicorns”.