Japan-based, drone-focused investment firm Drone Fund has received ¥5bn ($44.2m) from multiple investors including corporates to close its latest fund at its $95m target.
Marine propulsion equipment manufacturer Nakashima Propeller and aircraft engine and aerospace parts producer Yoshimasu were among the limited partners for Drone Fund 3, as was automotive information services Proto’s corporate venturing subsidiary, Proto Ventures.
The LPs also numbered Logistics Innovation Fund, which is run by logistics group Seino Holdings and venture capital firm Spiral Ventures’ fund management subsidiary, Spiral Innovation Partners, in addition to public-private partnership Innovation Network Corporation of Japan.
The latest close included Organisation for Small and Medium Enterprises and Regional Innovation’s $18.3m contribution in August this year, and it has committed $27.4m in total.
Drone Fund 3 was formed in May 2020 before reaching a first close five months later featuring agricultural machinery producer Kobashi Industries, construction firm Kokusai Kogyo (Japan Asia Group), telecommunications firms NTT Docomo and SoftBank, brokerage SMBC Nikko Securities and research group Leave a Nest.
Construction firm Shimizu and Canal Ventures, a vehicle for IT services firm Nihon Unisys, contributed to a subsequent close in March 2021, lifting the fund to $46m.
The firm’s first and second funds have together backed some 40 companies in Japan and other countries, focusing on unmanned aerial vehicles (UAVs) and air mobility technology. Drone Fund 3 is expanding its investment scope to include other relevant areas such as the real-world and industrial application of drones.
Photo courtesy of Alessio Soggetti via Unsplash.
