US-based seed-stage venture capital firm 500 Startups has recruited James Riney from internet company DeNA to oversee a new $30m Japan-focused fund.
Riney, who previously worked at investment bank JP Morgan, founded storytelling platform Storys.JP before joining DeNA’s corporate venturing team in April 2014 as principal. He told TechCrunch his decision to move was based partly on the opportunity to have more autonomy in investing.
500 Startups formation of the Japanese fund follows the $85m closure of its third global fund, which counts Japan-based corporates Dentsu and Yahoo Japan as limited partners, last week.
The firm has not disclosed the LPs for the newest fund, which is still being raised, but Riley told TechCrunch most are based in Japan, though there has also been interest from international investors.
Riney, in a blog post in Tech in Asia, expanded on the venture, claiming: “We will be the most well-known seed-stage Silicon Valley VC to actively invest in Japan. No other local seed investor will have as far a global reach, with as deep an understanding of the local market.
“With our investment, Japanese startups will no longer be stuck in a black box. They get a globally recognisable brand, Silicon Valley expertise, and a network to help them compete on a global scale. We open up doors to abroad for investment and M&A never before seen in the local startup ecosystem.”
News of the Japanese fund broke just prior to 500 Startups co-founder Dave McClure telling TechCrunch the firm has begun raising $200m for a fourth global fund, half of which will be reserved for follow-on investments so 500 Startups can maintain larger stakes in its successful seed-stage portfolio companies. A specialised growth-stage fund is also on the way.
– Photo of James Riney courtesy of 500 Startups