Japan-based advertising holding company Hakuhodo DY Holdings has formed a corporate venture capital arm, Hakuhodo DY Ventures, in addition to a strategic fund called Hakuhodo DY Future Design Fund.
The unit has been allocated an initial ¥200m ($1.8m) in capital, but Hakuhodo said it intends to invest up to ¥10bn ($92.4m) in corporate VC activities by the end of 2023 as part of its medium-term business plan.
Hakuhodo DY told TechCrunch Japan the investment period for the vehicle is expected to be 10 years, and that it will begin by focusing on Japan-situated companies across a range of sectors, participating at seed to late stage.
The corporate had previously participated in a $21m series C round for millennial-focused online publisher Mic in early 2017 through its US subsidiary, Kyu Collective.
Members of Hakuhodo DY Group will contribute to the fund’s operations, assisting portfolio companies in areas including marketing data, media content and business development. The group also seeks to access new business models that can help its affiliates be more innovative.
Akihiko Tokuhisa, president and CEO of Hakuhodo DY Ventures, said: “The establishment of Hakuhodo DY Future Design Fund provides opportunities for me to collaborate with venture companies in a broad range of domains and stages like never before.
“I look forward to meeting entrepreneurs that we can link arms with to design future ways of living for Sei-katsu-sha (Hakuhodo DY’s data-driven marketing scheme) and work together to realise them.”
