Jun 16 (the-japan-news.com) - Japan, eclipsed by China in startup activity, is boosting efforts to get foreign venture capital firms more involved with its entrepreneurs.
The government-backed Cool Japan Fund said Thursday it will contribute $10 million to become the largest limited partner in the Japan-focused fund of 500 Startups, a San Francisco-based venture firm specializing in early-stage investments.
The partnership aims to help startups in the archipelago expand abroad by leveraging the venture firm's global network in about 60 countries.
The deal is unusual in a country where startup funding is dominated by local corporations, and marks the first time the state has directly backed a non-Japanese venture capital firm.
The investment helps to show that foreign venture backers will be supported if they dedicate more resources to Japan.
The investment brings total capital raised for the venture firm's Japan fund to $35 million, exceeding its initial target of $30 million when it debuted last year.
