SBI Holdings to Launch $663 Million Fund to Invest in Web3 and AI

Japanese financial powerhouse SBI Holdings is gearing up to launch a $663 million fund dedicated to Web3, AI and other fintech startups, as reported by Nikkei Shimbun.

SBI Holdings fund, which will invest in 150-200 companies, is expected to commence operations by the end of this year.

The investment scale is expected to be robust, ranging from hundreds of millions to billions of yen per project.

This ambitious fund is anticipated to reach a substantial 100 billion yen, with key contributions already confirmed from prominent financial institutions.

The Fund Will be Backed by Traditional Consortiums in Japan

Sumitomo Mitsui Banking Corporation, Mizuho Bank, Nippon Life Insurance, and Daiwa Securities Group have committed to invest more than 50 billion yen into this initiative.

In a nation where venture capital (VC) funds of this magnitude are relatively scarce, this financial injection carries immense significance.

Japan has faced challenges in nurturing and fostering startup enterprises, a concern that prompted the Kishida administration to outline a “5-year startup development plan” in November 2022.

The plan seeks to address the issue of lagging startup rates compared to the United States and Europe and aims to elevate Japan as a startup hub in Asia.

Japan Aims to Increase Investment in Startups to 10 Trillion Yen

Crucially, the government has set an ambitious goal of increasing investment in startup companies from 800 billion yen in 2022 to an astounding 10 trillion yen ($66 billion) by 2027, achieved through cooperation between the public and private sectors.

Furthermore, the administration has declared its intent to foster 100 unicorns and 100,000 startup companies, positioning Japan as a thriving global startup cluster and consolidating its status as Asia’s largest startup hub.

As the environment for Web3 and AI startups evolves, regulatory challenges and tax reform become crucial considerations.

Addressing these concerns, the Japanese government is taking steps to revise the tax system related to Web3 companies, specifically concerning corporate taxes and virtual currencies. The proposed tax reform outline is expected to be finalized around mid-December.