ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print

Japan's biggest firms recycle cash piles into tech start-ups

Corporate-backed VCs deploy record investment into Japanese startups, hope to spawn Unicorns

Tokyo-based aggregation app SmartNews raised $28 million in August, an effort led by the investment arm of Japan Post.

TOKYO -- Record levels of venture capital investment in Japan suggest that some of the nation's biggest companies are increasingly deploying some of their massive cash reserves into the country's fledgling tech start-up sector in a quest to create billion dollar tech "Unicorns".

Japanese companies are sitting on a cash pile of 273 trillion yen ($2.5 trillion) as of March, a record high, according to data from the Bank of Japan, and their cash-heavy balance sheets, coupled with extremely low interest rates, have helped venture capital funds secure capital amid growing interest for risky but high-growth companies. Japanese businesses can invest directly in startups or through their own venture capital funds.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more