MUFG Sets up JPY 20 Billion Fund to Support Startups With Innovative Techby Fintech News Hong Kong September 12, 2023
Mitsubishi UFJ Financial Group (MUFG) and its subsidiary, Mitsubishi UFJ Innovation Partners (MUIP), have established a JPY 20 billion (US$136.4 million) fund to support startups.
The fund, called the MUFG Innovation Partners No. 3 Investment Partnership (No. 3 Fund), will invest in startups with innovative technologies, such as generative artificial intelligence (AI) to enhance the bank’s financial services and products.
The No. 3 Fund’s general partner is MUIP with an investment ratio of 0.1% while the limited partner will be MUFG Group entities with an investment ratio of 99.9%.
For seed to early-stage startups, MUFG will support startups through equity investments mainly from Mitsubishi UFJ Capital Co., Ltd and MUIP funds.
Meanwhile, middle to late-stage startups will receive equity investments totaling JPY 570 billion from MUFG Bank (MUBK) and other entities.
In addition to these equity investments, MUFG will also support startups by offering debt finance from MUBK, and AI-based loans from Mars Growth Capital.
MUFG has invested in more than 40 startups through its two core funds and an additional fund focused on Indonesia.