Japan's Hiroshima Venture launches start-up, SME fund

The firm has positioned the vehicle as a lifeline for companies that are struggling financially in the current downturn. According to a statement, it will leverage increased cooperation with Hiroshima Bank, a longstanding LP. Additional backers include Hiroshima Shinai Real Estate, life insurance company Hiroshima Action Service, and regional IT services provider Mighty Net. 

This is Hiroshima’s 15th fund since inception in 1995. It follows a first close of JPY760 million last year for another vehicle targeting at-risk businesses called Heavy Rain Disaster Recovery Support Fund. Heavy Rain plans to raise JPY1.5 billion for businesses impacted by a severe weather event in western Japan during 2018 that resulted in floods, mudslides, and hundreds of deaths. It is also backed by several Hiroshima area institutions, including Hiroshima Bank. 

Hiroshima claims to have invested more than 50 start-ups and SMEs. Activity this year includes participation in an early-stage round for pet insurance provider Anipos and a growth round for automotive parts manufacturer Kumada. The VC firm claims to have realized 28 IPOs and three exits via M&A. The latter include online funeral services provider Uniquest, shopping marketplace Sekaie, and Laxus, an app that lets users rent high-end handbags.

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• Topics
• North Asia
• Fundraising
• Venture
• Japan
• SME