Japan’s Incubate Fund, a venture firm primarily backed by local games developer Dena, has invested Y30m ($2m) in ResuPress, a local start-up, while raising its second fund.
The other named investor in ResuPress was Japanese seed accelerator venture capital firm Anri.
ResuPress operates an online application called Storys.jp which allows users to post their own experience as a story to share with others. ResuPress operates Linking with Facebook, which makes it possible to understand the personality of Facebook friends through the story, which you cannot get to know solely from Facebook posts, claims the start-up.
ResuPress will use the capital raised to improve the service and strengthen marketing activities.
In related news, Incubate Fund is fundraising a reported Y2bn ($21m) for its second fund. Back in March, Global Corporate Venturing reported that Japanese gaming company, Dena had not committed to the second Incubate fund. . In 2010 Dena had invested $27.5m for an 83% stake in the $33m Incubate Fund No. 1.
Incubate Fund has, however, raised commitments from corporations Infocom, Sega, the Japan Organization for Small & Medium Enterprises and Regional Innovation, D2C, Nissay Capital, Mixi, Mitsubishi UFJ Capital among others.
Incubator Fund has broadened its investment remit since it first set up its first fund back in 2010. The first fund had targeted largely gaming start-ups, such as Pokelabo, which it successfully exited in 2012 in an all-cash $175m sale to Gree.
For Japanese technology venture capital firm, DCM, and Incubate Fund, which invested a combined $11 m in Pokelabo, it meant a six-times return. Gaming business Sega also had an undisclosed strategic investment in the company with a 19 per cent stake.
However, since 2010 the first Incubate fund has gradually been invested in other sectors including crowd sourcing and social media, ResuPress being a recent example.
The second Incubator Fund is expected to back 100 start-ups over the next three years.
ResuPress co-investor, Anri, has a fund size of about Y500m with a typical investment size of between Y10m and Y30m.