Japan-based biotechnology company Euglena launched a ¥2bn ($17m) early-stage investment fund with financial services provider SMBC Nikko Securities and science venture company Leave A Nest on Friday.
SMBC Nikko Securities is a subsidiary of financial services provider Sumitomo Mitsui Financial Group, while Leave A Nest is a science venture company that provides student training programmes and workshops across Japan. Euglena will invest in the fund through its Euglena Imvestment unit.
Cigarette manufacturer Japan Tobacco, real estate developer Mitsui Fudosan, restaurant chain Yoshinoya Holdings, pharmaceutical company Rohto Pharmaceutical and electronic components trading company Kanetsu have also committed cash to the fund as limited partners.
They are expected to attract further corporates and increase the fund to more than $42m in size. It will focus on startups working in the robotics, biotech, internet of things, agriculture, energy, and research and development-related sectors.
The fund’s LPs are expected to support startups financially, but also through collaborative research, connecting them with other businesses, providing research and development assets and establishing sales channels.