Japan-based electrical equipment manufacturer Mitsubishi Electric launched the ¥5bn ($43.7m) ME Innovation Fund today with venture capital firm Global Brain, building on the established presence of both in the corporate venturing space.
The announcement came two days before the 101st anniversary of Mitsubishi Electric, a subsidiary of conglomerate Mitsubishi Group that provides electric and electronic products including household appliances, air conditioners, lifts, factory automation equipment, semiconductors and satellites.
ME Innovation Fund is set to operate for a decade and will back entrepreneurs focusing on digitalisation and sustainability innovation technologies, additionally providing business, management and technology know-how as well as collaboration opportunities with Mitsubishi Electric.
Global Brain was founded in 1998 and runs investment funds for corporate partners including real estate developers Mitsui Fudosan, Hankyu Hanshin Properties, Hulic, Nomura Real Estate and Tokyu Fudosan.
Concerning the fund’s investment strategy, Satoshi Matsushita, senior managing executive officer of Mitsubishi Electric and general manager of its business innovation division, told Cnet Japan: “In the past, Mitsubishi Electric’s business scope has been too focused on everything from suppliers to customers.
“This time, we would like to review the fund from a broader perspective, covering everything from the origin to end-users.” (Translated from Japanese by Global Corporate Venturing)
Matsushita added that ME Innovation Fund may increase its size and include new target areas not yet identified at this stage. Mitsubishi Electric set aside $100m in mid-2020 for corporate venturing activities and this vehicle is part of those ongoing efforts.
The corporate has since invested in three companies directly, including Finland-based train management system provider Eke-Electronics in June 2020 and Japan-headquartered elderly care service Z-Works five months later.
Mitsubishi Electric is also a strategic partner for Leap Over, an accelerator sponsored by sister unit Mitsubishi UFJ Financial Group and its Mitsubishi UFJ Research & Consulting subsidiary, both of which also fall under the auspices of Mitsubishi Group.
In the past, Mitsubishi Electric regularly took minority stakes in startups, investing in drone and blockchain product developer ALI Technologies Japan, 3D mapping software provider Dynamic Map Platform and Realtime Robotics, a Duke University spinout working on automated robotics and driverless vehicles, in 2019.
Photo courtesy of Mitsubishi Electric Corporation.
