In a bid to revolutionize Japan’s startup landscape, SBI Holdings, a prominent financial conglomerate, has unveiled plans to initiate a groundbreaking investment fund by the end of 2023. Focused on sectors like Web3, artificial intelligence (AI), and the metaverse, this fund is set to inject vitality into Japan’s burgeoning startup ecosystem.
About SBI Holdings
SBI Holdings, a major player in Japan’s financial realm, is spearheading an ambitious effort to support emerging companies. The conglomerate is not just aiming to invest but to nurture startups, with a fund projected to reach a substantial 100 billion yen. The collaboration with major and regional banks, including Sumitomo Mitsui Banking Corporation, Mizuho Bank, Nippon Life Insurance, and Daiwa Securities Group, highlights the commitment of significant financial institutions to bolstering Japan’s startup scene.
Collaborative Funding from Major Financial Institutions
To ensure the success of this venture, SBI Holdings has secured commitments exceeding 50 billion yen from influential financial players. This collaborative funding approach is a rarity in Japan’s startup landscape, emphasizing the importance of strong financial backing to foster globally competitive startups.
Japan’s Current Landscape and Startup Goals
Japan, under Prime Minister Kishida’s administration, recognizes the challenges in cultivating startups. The “Startup Development 5-Year Plan,” initiated in November 2022, sets ambitious goals to increase startup investment from 800 billion yen to over 10 trillion yen by 2027. With a focus on “New Capitalism,” the plan envisions Japan as Asia’s leading startup hub, aiming for the creation of 100 unicorns and 100,000 new startup companies.
Enhancing the Ecosystem for Web3
Acknowledging the importance of emerging fields like Web3, the Japanese government is actively working on tax reforms. In the fiscal year 2023, corporate taxes for Web3 companies have undergone partial reforms, exempting self-issued cryptocurrencies under certain conditions. Further reforms for third-party held cryptocurrencies are on the horizon, with decisions expected by mid-December.
About the Funding
The investment fund is poised to make a significant impact, reaching up to 100 billion yen. SBI Holdings plans to invest in 150 to 200 startups, with individual investments ranging from several hundred million to a few billion yen. This injection of capital aims to provide the necessary financial support for startups to thrive in the competitive landscape.
SBI Holdings‘ commitment to launching a substantial investment fund marks a pivotal moment for Japan’s startup ecosystem. With collaborative funding from major financial institutions and a keen focus on emerging sectors, this initiative aligns with the government’s vision for a vibrant and globally competitive startup landscape.
Why is SBI Holdings focusing on Web3, AI, and the metaverse?
SBI Holdings recognizes the transformative potential of these sectors and aims to position Japan as a leader in emerging technologies.
How does the collaborative funding approach benefit Japan’s startups?
Collaborative funding ensures a robust financial backing from major institutions, providing startups with the necessary resources to compete on a global scale.
What impact do the tax reforms have on Web3 companies in Japan?
The fiscal year 2023 tax reforms exempt self-issued cryptocurrencies from market value evaluation, with further reforms expected in the fiscal year 2024 for third-party held cryptocurrencies.