Japan-based marketing firm Dentsu launched a corporate venturing fund called Dentsu Ventures today with ¥5bn ($41.8m) of capital.
Dentsu Ventures will invest in companies in the US, Europe and Asia, and will provide portfolio companies with business support as well as funding.
The company plans to commit the ¥5bn over a seven-year period, and will focus on startups at seed and series A stage, though it is also open to investing at later stages. It will target companies developing innovative technology, particularly technology that can be used for marketing and communication.
Dentsu has previously made venture capital investments through the ¥10bn Dentsu Digital Fund, a unit established in 2010 and managed by its digital advertising subsidiary, Dentsu Digital Holdings.
However, the company cited an accelerating business environment both for itself and the advertising industry as a whole for the decision to diversify its corporate venturing activities, and in particular importance of open innovation through collaboration with up-and-coming businesses.
Companies funded by Dentsu over the past five years include printing services provider Raksul, online accounting service Money Forward and crowdsourcing platform Crowdworks.