Online advertising agency CyberAgent and two other firms are investing Y350m ($4m) in Kayac, which is developing software for smartphones and video games.
Besides CyberAgent, online clothing store operator Start Today and venture capital firm Globis Capital Partners will take private placements of Kayac shares, with their stakes adding up to nearly 10%, according to news wire Nikkei.
Kayac and CyberAgent will consider working together on video games for CyberAgent’s Ameba online community, ad campaigns and website design services, Nikkei added, while the portfolio company will partner with Start Today in developing smartphone applications.
Founded in 1998, Kayac aims to go public as early as next year and will use the proceeds from the share sales to enlarge its staff of about 130 and expand its business overseas, the news wire added.