Japan's KSP reaches $11m first close on fourth venture fund

The vehicle, which was launched earlier this month, is targeting a final close of JPY5 billion by June next year. The target is almost twice the size of its predecessor, a 2006 vintage vehicle which reached a close of JPY2.4 billion. The fund will focus on early stage investments involving rapidly-growing, high technology ventures.

Launched in 1987, KSP is a business incubator in the traditional sense and claims to be one of the country's first. The firm is located in the Kanagawa Science Park in Kawasaki City in the Great Tokyo Area where it rents out office space and provides support services to start-ups. It also runs the KSP Business Innovation School.

KSP's LPs in previous funds include the likes of government-backed Organization for Small & Medium Enterprises and Regional Innovation (SMRJ).The incubator itself is owned by the Development Bank of Japan (DBJ), Kanagawa Prefecture and a consortium of 47 private financial insitutions including Nippon Life Insurance, Meiji Yasuda Life Insurance,Tokio Marine & Nichido Fire Insurance,Mitsui Life Insurance and The Bank of Yokohama.

Its venture capital arm has been going since 1997. The company manages JPY3.71 billion through three other funds. On its website KSP reports a return on investment of 422% and 196% for Funds I and II, respectively. Fund III is still active.

To date, KSP has taken eight portfolio companies public. The most recent was ReproCell, a bio technology firm also backed by the likes of SBI Investment, DBJ Capital, Jafco, Mitsubishi UFJ and Nissay Capital. ReproCell managed to raise $49 million in June last year when it floated on the JASDAQ exchange.

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• Topics
• North Asia
• Venture
• Fundraising
• Early-stage
• Japan
• Venture
• Fundraising
• Technology