US-headquartered venture capital firm and accelerator 500 Startups has spun out a Japan-based investment firm called Coral Capital with a ¥5bn ($45m) fund backed by several corporate limited partners.
The fund has received commitments from property developer Mitsubishi Estate, energy utility J-Power, financial services firms Mizuho Bank and Shinsei Bank and private investors Taizo Son, Paul Kuo and Kotaro Chiba. A few top-tier institutional investors account for almost 50% of the fund’s total.
All five of the existing employees at 500 Startups Japan are moving to work on the new vehicle, with Coral operating out of the same Tokyo office used by the unit.
500 Startups Japan partner James Riney and venture partner Yohei Sawayama will be tasked with leading the new fund, which will adopt a sector-agnostic approach in Japan.
During their time at 500 Startups Japan, the Coral team made more than 40 investments, in portfolio companies including Graffer, Diggle, SmartHR, Homma, Inforstellar, CreditEngine, Spacee, Anglers and Holmes.