Japan's NTT launches $500m global VC fund

Establishment of the fund, confirmed in a regulatory filing, is part of an innovation agenda that will leverage the resources of several NTT divisions. These include Tokyo-based IT consultant NTT Data, US-based R&D lab NTT Innovation Institute, and Dimension Data, a South African IT and cybersecurity company recently acquired by NTT. 

The fund, known as NTT Venture Capital, and its associated NTT subsidiaries will be organized under a holding company to be headed by NTT CEO Jun Sawada. The new entity is estimated to generate revenue of $38 billion. NTT Venture Capital will operate independently of NTT Docomo Ventures, which was created in 2013 with a similar technology focus.

“We've seen rapid progress in technology innovation, disruption caused by new business models, and the aggressive expansion of innovative competitors,” NTT said in a statement. “These factors have led to clients' increasing demand for digital transformation. We believe it's an opportunity for us to create new value and increase our presence in the global market.”

Activity among corporate VCs is ramping up in Asia as strategics look to access new technology and position themselves for future growth. Recent activity in Japan includes the creation of Panasonic Ventures and Alliance Ventures, which combines the resources of Nissan Motor, Mitsubishi Motors and France’s Renault. Last week, Japanese auto parts supplier Toyoda Gosei launched an approximately $26.5 million VC fund.

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• Topics
• North Asia
• Fundraising
• Venture
• Japan
• Technology