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Business trends

Innovation-hungry Japanese companies investing directly in startups

But some question whether corporate venture capital will truly pay off

KDDI bought "internet of things" specialist Soracom last year.

TOKYO -- Corporate venture capital funds are on the hunt in Japan as big-name companies become increasingly reliant on startups for innovation and talent, but their prospects for making the most of the spoils remain to be seen.

"We've had many inquiries from corporate venture capital funds about making investments, so it's easy to move toward creating ties with large companies," said Atsuyoshi Shimazu, president of internet security company Caulis.

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