AAA Incubate hatches $91m fund

Incubate hatches $91m fund

Japan-based venture capital firm Incubate Fund launched its ¥11bn ($91.5m) third fund today with contributions from backers including internet portal Tencent, internet company Yahoo Japan, video game developer Sega Sammy and broadcaster Tokyo Broadcasting System.

Japan-based social networking service Mixi also invested, alongside state-backed entities Innovation Network Corporation of Japan (INCJ) and Development Bank of Japan, financial services provider Sumitomo Mitsui Banking Corporation and venture capital firm Misteltoe.

INCJ provided the largest chunk of capital for the fund, committing about $42m according to Nikkei.

Incubate plans to invest in early-stage startups based in Japan and the rest of Asia as well as North America. It previously raised ¥2bn in for its second fund in March 2013.

Incubate Fund III will invest larger sums compared to the firm’s earlier funds, which focused on sub-$1m seed investments. It will target startups from a wide range of sectors including media, entertainment, gaming, e-commerce, logistics, healthcare, financial, real estate and housing.

The fund has already made its first investment, supplying $2m in December 2014 to Drivemode, a US-based startup developing a smartphone operation app for drivers.

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