Innovation Growth Ventures (IGV), an investment vehicle for Japan-based consumer electronics manufacturer Sony and brokerage Daiwa Securities’ Daiwa Capital Holdings subsidiary, reached a $145m second close last month, they have announced.
Launched in July 2019, IGV is seeking ¥20bn ($185m) for its first fund and has now raised approximately 80% of its target.
The latest limited partners (LPs) for the vehicle were financial services firms Bank of Yokohama, Osaka Kosei Shinkin Bank, Shiga Bank and Sumitomo Mitsui Trust Bank, as well as educational institution Iwasaki Gakuen and brokerage SMBC Nikko Securities.
The initial close featured commitments from Mitsubishi UFJ Lease & Finance Company, a leasing subsidiary of financial services group Mitsubishi UFJ Financial, in addition to banks Sumitomo Mitsui Banking Corporation and Osaka Shoko Shinkin Bank, and an undisclosed university.
Sony already runs Sony Innovation Fund (SIF), a $100m fund it formed in 2016 that has participated in roughly 60 deals focusing on mobility, health, artificial intelligence and robotics technology developers such as Zoomcar India, Promethera Biosciences, Cinnamon and Connected Robotics.
Sony’s chief strategy officer, Gen Tsuchikawa, who oversees IGV and SIF as chief executive and chief investment officer, told Global Corporate Venturing SIF primarily backs seed and early-stage startups while IGV concentrates on mid-to-late stage companies and are managed by the same team.
IGV will also partner Sony, Daiwa Securities and the LPs in a bid to support its portfolio companies, which include Minma.jp and AI Medical Service.
Tsuchikawa added: “We are excited that our first [general partner]–LP fund received good interest from key Japanese institutional investors and school funds, and allows us to invest in larger sums.”
