Sony and Daiwa Capital announced the establishment of Innovation Growth Ventures (IGV), a joint venture company created to establish a joint investment fund. IGV has recently completed the first Limited Partner commitment for its Innovation Growth Fund, set up for investing in startups in high-growth industries.
Sony and Daiwa have not disclosed the investments poured into the fund, but its goal is to grow the fund to 20 billion yen in size. To that end, IGV aims to leverage Sony group and Daiwa Securities’ platform to help its portfolio companies grow.
At first closing in June 2019, the fund has attracted companies like Sumitomo Mitsui, Osaka Shoko Shinkin Bank, Mitsubishi UFJ and education institutions affiliated with universities to join as limited partners.
Sony established Sony Innovation Fund, its corporate venture fund, in July 2016. With offices in Japan, North America, and Europe, Sony Innovation Fund has been carrying out investment activities targeting startup companies in business domains such as AI and robotics. It has conducted over 40 investments in the past three years, and put the fund together specifically to invest into startups.
Daiwa Securities is a Japanese investment bank that is the second largest securities brokerage after Nomura Securities. The company’s venture capital arm, Daiwa Capital, primarily invests in seed or startup-stage companies, particularly those in need of management help to grow.
Gen Tsuchikawa, Representative Director, Innovation Growth Ventures said:
“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.
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