Japan-based internet and e-commerce firm Rakuten launched a $100m strategic corporate venturing fund today that will target investments in early to mid-stage financial technology companies.
Rakuten FinTech Fund will look to invest in startups and growth-stage companies in the US and Europe with strategic relevance. Oskar Mielczarek de la Miel will run the fund as managing partner.
The strategic element of the unit will fuel development of Rakuten subsidiaries such as Rakuten Card, Rakuten Securities, Rakuten Bank and Rakuten Life Insurance, all of which portfolio companies will be able to access.
Hiroshi Mikitani, Rakuten’s chief executive, said: “Rakuten is committed to empowering great entrepreneurs around the world and Rakuten’s new FinTech Fund represents another milestone in our global expansion of the financial services business.”
Fintech companies already funded by Rakuten include payments processing platform WePay, online payment technology developer Currency Cloud and digital commerce platform Bitnet.
Oskar Miel said: “If you just look at the last couple of years, companies like Currency Cloud, WePay or Bitnet are great examples of disruption changing the landscape in payments and providing innovative solutions that address fundamental needs of global customers.
“The Rakuten FinTech Fund is dedicated to helping these businesses accelerate disruption and innovation in historically more traditional and conservative markets.”
Rakuten’s increasing focus in the sector mirrors that of another Asian internet company, China-based Renren, which began life as a social media provider, before branching out into fintech through a series of high-profile investments in companies including SoFi, LendingHome and Motif.