Japan-based internet company Digital Garage’s corporate venture capital subsidiary, DG Incubation, has teamed up with financial services firm Bank of Yokohama to form a ¥3bn ($28.8m) investment vehicle.
Hamagin DG Innovation Fund is set to operate for eight years and will be overseen by DG Incubation. It will target developers of digital technologies in areas including electronic payment and online marketing that will facilitate open innovation in the finance sector.
The joint venture is intended to revitalise the local economy in the Japanese prefecture of Kanagawa where Bank of Yokohama is headquartered, as well as the adjacent Tokyo region.
Formally known as DG Ventures, DG Incubation was formed in 2009 and invests in entrepreneurs that are working on internet-focused services and products. It also helps portfolio companies identify synergistic opportunities with its parent’s group companies.
Bank of Yokohama also has a venture capital unit, Yokohama Capital, and its portfolio companies include Minna-Denryoku, Finc Technologies and iYell. The bank has additionally made limited partner commitments to corporate venturing vehicles Innovation Growth Ventures and Globis Capital Partners.
