Global Brain, Mitsubishi launch $44m VC fund

Global Brain has extensive experience helping local corporations manage their innovation agendas in this way. It has similar partnerships with electronics makers Sony and Epson, logistics company, Yamato Transport, beer brewer Kirin, and telecoms operator KDDI Corporation. Last year, it set up a JPY 5bn fund with engineering conglomerate JGC Group.

It comes a month after the VC firm launched its eighth flagship fund, seeking JPY 40bn with a view to broadening its international exposure. Much of the investment track record outside of Japan to date is associated with corporate partnerships. A follow-on fund targeting JPY 10bn to support existing portfolio companies from the flagship funds is also in the market.

Through ME Innovation Fund, Mitsubishi Electric and Global Brain will invest in start-ups seen as having potential for breakthrough innovations primarily in digital and cleantech areas, according to a statement. The vehicle will provide business knowledge and management support, as well as technology and access to collaborations with Mitsubishi Electric.

Global Brain’s strong focus on corporate partnerships has resulted in a relatively low ratio of IPO exits versus trade sales among Japanese VCs. Only 25% of its portfolio companies are typically exited via IPO versus a national average of 67%. Nevertheless, the firm expects to benefit from the Tokyo Stock Exchange’s recent momentum in terms of sizeable tech listings.

The standout exit last year was smart security camera company Safie, which completed a USD 100m IPO in October and now has a market capitalization of around USD 545m. Global Brain invested in the company via 31 Ventures, its joint venture with property developer Mitsui Fudosan. 31 Ventures set up its second fund in 2020 with a corpus of JPY 8.5bn.

“In our unique business model, which creates value through collaboration between start-ups and corporate VC owners, there will be more situations where corporate VCs will have wider options, including the pursuit of economic returns via more IPO exits such as Safie, as well as business synergies via M&A,” Yuki Matsuo, a principal at Global Brain, told AVCJ in November.

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• Topics
• North Asia
• Fundraising
• Cleantech
• Technology
• Japan
• Global Brain Corporation
• mitsubishi
• corporate venture capital