Japan-based electronics conglomerates Omron and Ricoh will launch a ¥5bn ($44.5m) joint corporate venturing fund next month aimed at emerging technology sectors, Nikkei reported on Wednesday.
The fund is also supported by Innovation Network Corporation of Japan (INCJ), a ¥300bn public-private partnership backed by Japan’s government and 26 domestic companies, and financial services firm Sumitomo Mitsui.
The corporates will provide a total of $13.3m while INCJ supplied the rest. Omron and Ricoh hope to attract additional capital from three to five companies in the car and industrial machinery sectors, targeting a $62m close by the end of 2016.
The fund will seek out approximately 30 investees and inject up to $2.7m in each startup. It will consider sectors such as the internet of things, robotics, self-driving cars and automated farming.
Apart from funding, startups also stand to benefit from Omron’s and Ricoh’s expertise and will be able to access assistance with mass production and establishing sales networks. Omron has specialised in the production of sensors and control technology, while Ricoh focuses on the optics sector.