Japanese digital alternatives platform gets pre-Series A
Luca, a Japan-based fundraising platform that aims to give local high net worth investors access to alternatives, has received seed-stage funding from VC investors.
Delight Ventures has led a JPY 400m (USD 2.7m) pre-Series A round, bringing total funding since the start-up’s inception in 2021 to about JPY 630m. Earlier backers include the likes of East Ventures, Headline Asia, Plug And Play Japan, Saison Ventures, Finolab, Carbon Ventures, Mizuho Innovation Frontier, QR Investment, and Shizen Capital.
Luca was set up by Keiko Sydenham, previously a fundraiser for The Blackstone Group in Japan, to tap local investors uncovered by intermediaries, including high net worth individuals (HNWIs) and small to medium-sized institutional investors. The firm claims it can scale down the minimum investment amount for overseas alternative funds from JPY 500m-JPY 1bn to less than JPY 10m.
The offering is in effect an automation of HNWI fundraising legwork done in partnership with banks, advisors, and other intermediaries that often requires rare networking skillsets. It is also framed as an instrument of inclusion for investors who don’t normally have access to alternatives.
“While the Hokuriku region is characterized by affluent households with a high rate of homeownership, the concept of investment beyond savings is just beginning to take hold,” Fumio Hamano, president and CEO of QR Investment, said in a statement.
“Luca’s digital platform has the potential to transform individual investors into participants in alternative investments, shifting from savings to investment. We hope to promote the democratization of alternative investments and improve the return on investment for household financial assets, which have reached JPY 2,000trn.”
Luca launched its first fund product last April. It services real estate, hedge funds, and private credit, in addition to private equity. Users are able to compare funds and fund documents via a data room. Reporting, capital call notifications, payment confirmations, document signatures, and other administrative procedures can all be handled via smart phone.
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