In a strategic move to bolster Japan’s startup ecosystem, Plug and Play Japan has announced the establishment of its inaugural investment fund, “Plug and Play Japan Fund I,” aimed at supporting domestic startups with global ambitions. The fund has successfully secured over ¥3 billion ($33 million) in its first close, with contributions from prominent institutions including MUFG Bank, the Organization for Small & Medium Enterprises and Regional Innovation (SME Support Japan), Tokyu Land Corporation, and Sazaby League.
“The Japanese market isn’t a rapidly growing market, so I think there’s kind of more necessity for startups now to look outside of Japan,” said Phillip Vincent, CEO of Plug and Play Japan, emphasizing the importance of global expansion for Japanese startups.
The fund plans to allocate approximately 80% of its investments to Japanese startups, particularly those in the seed to early stages, focusing on sectors such as deep tech, AI, and sustainability. The remaining 20% will target overseas startups with strong synergies to the Japanese market.
Leveraging Plug and Play’s extensive global network, which spans over 60 locations and includes partnerships with more than 550 corporations, the fund aims to provide startups with opportunities for international expansion, collaborations with major enterprises, and diverse exit strategies, including mergers and acquisitions and IPOs.
This initiative aligns with Japan’s broader efforts to invigorate its startup landscape. The government has been actively promoting entrepreneurship through various programs, including the Global Acceleration Hub and the Japan Innovation Campus in Silicon Valley, to facilitate international collaborations and investments.
With the establishment of Plug and Play Japan Fund I, Japanese startups are poised to receive the support and resources necessary to scale globally, marking a significant step towards fostering innovation and economic growth in the region.
