Gree Ventures, the investment vehicle of Japan-based online gaming company Gree, has raised ¥4bn ($37m) for the first close of a fund named AT-II Limited Investment Partnership, The Bridge reported yesterday.
AT-II is aiming for a $64.5m final close, to be reached by the end of 2016. It has secured commitments from Gree, financial services conglomerate Mizuho Financial Group and undisclosed other Japan-based corporates and financial institutions.
Like its predecessor, AT-II will focus on seed to early-stage startups operating in the sectors of adtech, digital health, fintech, crowdsourcing and the mobile optimisation of existing offerings.
Gree Ventures expects to invest between 70% and 80% of the fund in Japan, but it will also seek out opportunities outside of Japan and Southeast Asia, with India-based companies a priority.
Each startup stands to benefit from a commitment between $900,000 and $2.7m, with the fund looking to participate in rounds as a lead investor. Portfolio companies will also receive support with recruitment and attracting clients.
The fund has already made its first two investments, in Sorabito, an online marketplace for heavy machinery, and Ookami, the developer of a live sports app called Player.
Sorabito raised $4.6m from Gree Ventures; SMBC Venture Capital, which acts as the venture capital arm of financial services firm Sumitomo Mitsui Financial Group, as well as financial services provider JA Mitsui Leasing, corporate venturing units GMO Venture Partners and Opt Ventures, and angel investors Fumiaki Koizumi and Hidetoshi Takano.
Ookami meanwhile received an undisclosed sum from Gree Ventures for its seed round. The company had previously raised ¥30m in funding from assorted angel investors across tranches in 2014 and March 2015.
Gree Ventures has added a host of new staff to run the new fund alongside existing managers: principal Albert Shyy (formerly of Lazada), associate Nikhil Kapur (formerly an entrepreneur in India), associate Masyuki Minato (formerly of Boston Consulting Group), Natsumi Negishi (formerly of Nomura Research and Advisory) and analyst Yuya Mineshima (formerly of Goldman Sachs).
AT-I was established in 2014 with ¥5bn in funding. It has backed 16 startups in Japan and nine in Southeast Asia.