Japan-based phone operator KDDI has started a Y5bn ($65m) corporate venturing fund to be managed by venture capital (VC) firm managed by Global Brain.
The KDDI Open Innovation Fund will invest in local and foreign companies and KDDI said it would also offer service development, platforms for cloud services using the phone operator’s Au Smart Pass content offering, and support for promotional activities.
Founded by Yasuhiko Yurimoto in 1998, Global Brain set up its first fund, GV-I in 2000 along with an incubator. Global Brain has a number of other strategic partnerships with corporations, including Fujitsu, Nifty, NTT Data, IBM Japan, Sun Microsystems and Oracle Japan.
This is the first fund solely sponsored by KDDI, although it was a limited partner alongside social network Gree in the $100m A-Fund managed by VC firm DCM set up last year. A year earlier, in October 2010, KDDI was also part of the investment syndicate providing $12m to Tonchidot, a Japan-based provider of a mobile augmented reality service’s, series B round.
Yasunori Matsuda, senior director at KDDI, said: "The combination of KDDI’s knowledge and assets, along with Global Brain’s investment and management support capabilities, is exactly what is needed to accelerate cooperative activities with these promising startup companies."
"As a proven venture capital firm, Global Brain seeks to build as many excellent ventures as possible, and is looking for startups with established services or technologies, primarily in Smart Phone related sectors," adds Global Brain executive president Yasuhiko Yurimoto. "In partnering with KDDI Corporation, an innovative company that makes the same strides for success as we do — in terms of commitments, strong track records, and expertise, we are also looking out for ventures that can align well with KDDI as an international telecommunications leader."
According to the firm, opportunities in the US, Singapore, China, Korea, and Taiwan are strongest at the moment. Other up and coming regions include India, Indonesia, Vietnam, and Malaysia.