Drone Fund, a Japan-based investment fund targeting drone-focused startups, has raised ¥5.2bn ($47.3m) for its second fund, from limited partners (LPs) including several corporates.
The second fund was launched in July 2018, Drone Fund having previously secured about $15m for its first fund six months earlier.
Returning investors from the first fund included engineering consultancy Japan Asia Group, price data aggregator Oak Fan, education provider Leave a Nest, internet company Digital Garage’s DG Incubation subsidiary, financial services firm Bank of Fukuoka’s FFG Venture Business Partners unit, Mistletoe Venture Partners, and Canal Ventures, systems integrator Nihon Unisys’ investment arm.
LPs that contributed to the latest fund’s first close include agricultural equipment producer Kobashi Kogyo, price comparison platform Aucfan, telecommunications firm KDDI, marketing group Dentsu, entertainment group Sega Sammy, film studio Shochiku, brokerage Daiwa Securities, Mizuho Bank, KSK Angel Fund and the founding family of motor manufacturer Mabuchi Motor.
New LPs include natural gas producer Saibu Gas, internet group GMO Internet, financial services firm Orix, map publisher Zenrin, online recruitment firm En-Japan, entertainment conglomerate Avex, Japan Post Capital and Tepco Ventures, subsidiaries of postal service Japan Post and energy utility Tokyo Electric Power.
Drone Fund’s second fund had already invested in seven companies including agricultural drone producer Nileworks, flying vehicle developer SkyDrive, personal air mobility technology developer Tetra Aviation and Metro Weather, Kyoto University’s first startup.
In addition to Japan-based startups, the fund is also investing in companies located in the US, Malaysia and Norway. Drone Fund now has 29 portfolio companies altogether.
