Japan's Global Brain launches two VC funds, expands global remit

Both vehicles have achieved nominal first closes, with contributions coming from existing domestic LPs including pension funds and financial institutions. A second close of at least $100 million is said to be on track for Fund VIII.

Global Brain has tracked increasing interest in Japan VC from international LPs in recent years and has been in talks with global family offices.

Fund VII raised JPY19.8 billion last year, on par with Fund VI, which closed on JPY19.7 billion with about JP5 billion coming from the government’s Cool Japan Fund. Other domestic LPs in recent vintages include Hitachi High Technologies, Information Services International-Dentsu, KDDI Corporation, and Sumitomo Mitsui Banking Corporation.

The JPY10 billion follow-on fund will make later-stage investments in existing portfolio companies from Funds VI and VII. Global Brain has identified a Series C funding gap in Japan, which it expects to be filled by increasing activity among early-stage VCs, international GPs, and private equity.

Global Brain has made overseas investments with previous funds, including several corporate VC partnerships where the firm acts as manager for vehicles backed by the likes of KDDI, Sony, and Kirin. The newest of these, a JPY5 billion fund launched with engineering conglomerate JGC Group, backed a US health-tech company, MedRhtyms, as recently as last month.

Fund VIII will make early-stage, sector agnostic technology investments mostly in Japan, although there will be expanded scope for deployments in the US, Europe, and Southeast Asia. Target areas will include IT, deep tech, and business models addressing social issues. Earlier this month, Global Brain joined the Japan Impact-driven Financing Initiative.

Global Brain has made at least 115 investments this year to date. This number is expected to hit 120 with the finalization of a number of pending deals. The total for 2020 was 103. Standout activity in the past year includes participation in a JPY2.6 billion Series C for microsatellite developer Axelspace and a JPY1.8 billion Series B for advanced robotics supplier Gitai.

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• Topics
• North Asia
• Fundraising
• Venture
• Technology
• Japan
• Global Brain Corporation