Japan-headquartered consumer electronics and entertainment group Sony reached a first close of its fourth Sony Innovation Fund, which has a ¥25bn ($217m) target for its final close, today.
Sony Innovation Fund 3’s limited partners include Sony itself as well as industrial and vehicle manufacturer Kawasaki Heavy Industries, real estate developer Mitsubishi Estate and Koei Tecmo Capital, a subsidiary of video game and entertainment group Koei Tecmo.
Financial services firms SMBC Group, Mizuho Group, Daiwa Securities Group, Sumitomo Mitsui Trust Bank, Bank of Yokohama and Shiga Bank are also among the vehicle’s LPs.
Sony manufactures a host of consumer products including smartphones, laptops, televisions, audio equipment, cameras and the PlayStation gaming console as well as releasing feature films and music through its Sony Entertainment subsidiary.
The corporate established a dedicated vehicle called Sony Ventures Corporation in July 2021 to oversee its Innovation Funds, which back consumer and enterprise-focused companies in areas such as entertainment, healthcare, mobility, sensor and financial technology.
The first Innovation Fund was launched in 2016 before Sony formed the $185m Innovation Growth Fund with brokerage Daiwa three years later and a $9.4m environmental, social and governance (ESG)-focused vehicle called Sony Innovation Fund: Environment in September 2020.
Sony now has a total of roughly $520m under management across the four funds and has built a portfolio spanning Asia, North America, Europe and Israel, having most recently taken part in data capture technology developer Scandit’s $150m series D round last week.
Other portfolio companies include Trax, the retail data technology provider which raised $640m in April 2021 at a reported $2bn valuation, and e-scooter producer Superpedestrian, which secured $125m in funding earlier this month.
The formation of the latest fund comes as 5G technology becomes more accepted, potentially opening the door for the expansion of the internet-of-things sector, and just over a year after the release of the PlayStation 5.
Sony Ventures Corporation CEO Gen Tsuchikawa said: “We actively foster entrepreneurs and startups that lead the creation of next generation technologies, promote open innovation and contribute to the global environment and social development through our corporate venture capital activities.
“Sony Ventures Corporation will not only invest in emerging technology sectors and high-growth startups but will further strengthen its ESG initiatives and eagerly support its portfolio companies.”
Photo courtesy of Sony Group Corporation.
