February 19, 2016 6:00 am JST
Financial technology

Japanese investment fund seeks know-how from US startups

TOKYO -- A dozen or so Japanese companies in various business sectors will set up an investment fund to lure U.S. financial technology startups to Japan, hoping to develop new services via partnerships.

     U.S. venture capital company Sozo Ventures will create the fund as early as this fiscal year, taking in a total of around 20 billion yen ($176 million) from the Bank of Tokyo-Mitsubishi UFJ, Yamato Holdings and others. The fund will invest in promising U.S. startups active in the Silicon Valley and elsewhere that are considering expansion into Japan.

     In each business sector, one major Japanese company will be designated a strategic partner in exchange for its funding contribution. Sumitomo Mitsui Card will represent credit cards, while Sompo Japan Nipponkoa is considering doing the same for insurance. Participation will be solicited from real estate, advertising and other companies. Yamato sees the fund as an opportunity to partner with U.S. tech companies.

     In recent years, financial services have been increasingly integrated into the operations of nonfinancial companies to enhance customer convenience. For instance, Chinese e-commerce giant Alibaba Group now offers its own transaction settlement services. Japanese companies are eager to tap advanced expertise from abroad to broaden their services.

     Increased cross-industry collaboration may accelerate development of settlement systems linked to the movement of physical goods as well as increase the use of big-data analysis, with potential applications such as auto insurance premiums that vary by the driver's skill.

(Nikkei)

Yamato Holdings Co., Ltd.

Japan

Market(Ticker): TKS(9064)
Sector:
Industry:
Transportation
Air Freight/Couriers
Market cap(USD): 8,878.79M
Shares: 411.33M

Sompo Holdings, Inc.

Japan

Market(Ticker): TKS(8630)
Sector:
Industry:
Finance
Property/Casualty Insurance
Market cap(USD): 15,742.48M
Shares: 415.35M
Asia300

Alibaba Group Holding Ltd.

China

Market(Ticker): NYS(BABA)
Sector:
Industry:
Retail Trade
Internet Retail
Market cap(USD): 279,397.00M
Shares: 2,430.17M

Get Insights on Asia In Your Inbox

To read the full story, Subscribe or Log in

Get your first month for $0.99

Redeemable only through the Subscribe button below

Once subscribed, you can…

  • Read all stories with unlimited access (5 articles per month without subscription)
  • Use our smartphone and tablet apps

To read the full story, Subscribe or Log in

3 months for $9
SUBSCRIBE TODAY

Take advantage of this limited offer.
Subscribe now to get unlimited access to all articles.

To read the full story, Update your account

We could not renew your subscription.
You need to update your payment information.

To read the full story, Subscribe or Log in

Once subscribed, you can…

  • Read all stories with unlimited access (5 articles per month without subscription)
  • Use our smartphone and tablet apps

To read the full story, Subscribe or Log in

3 months for $9
SUBSCRIBE TODAY

Take advantage of this limited offer.
Subscribe now to get unlimited access to all articles.

To read the full story, Update your account

We could not renew your subscription.
You need to update your payment information.