SBI Holdings launches a 100 billion yen fund, focusing on fintech, AI, and Web3 startups.

Japanese financial group SBI Holdings has announced the launch of a new venture capital fund worth 100 billion yen, with participation from traditional financial giants such as Sumitomo Mitsui Banking Corporation, aiming to collectively support domestic startups in Japan.

SBI's New Fund Supports Web3 and AI Startups

SBI Holdings is set to launch a new fund by the end of 2023, focusing on investing in fintech, metaverse, Web3, AI, and other related startups. The fund will invest in a total of 150 to 200 companies, with expected investment amounts ranging from several hundred million to several billion Japanese yen per project.

According to the Japanese media outlet CoinPost, the total fund size is projected to reach 100 billion Japanese yen, approximately 6.62 billion USD, with participation from major domestic banks and regional banks. The following institutions have already committed to investing 50 billion USD in the fund:

• Mizuho Bank

• Nippon Life Insurance

• Sumitomo Mitsui Banking Corporation

• Daiwa Securities Group

SBI Aims to Reach 10 Trillion Yen by 2027

An SBI representative pointed out that venture capital funds of 100 billion yen scale are rare in Japan, and the number of unicorn companies with market values exceeding 100 billion yen is relatively low compared to the US and Europe. To nurture startup companies and compete globally, sufficient funding sources are needed.

SBI plans to expand the fund by over 10 times through a five-year implementation plan, reaching a scale of 10 trillion yen by 2027, with efforts from both the public and private sectors in Japan to achieve this goal.

Will Tax Reform be the Key to Boosting Japan's Web3?

CoinPost mentions at the end of the article that one of the major challenges in conducting Web3 business in Japan is the tax system, and the Japan Blockchain Association has previously put forward three tax reform demands.

The outline of the tax reform, as determined by the Japanese Tax Commission, is expected to be announced in mid-December.

Japan Blockchain Association Proposes Three Tax Reform Demands: No Taxation on Cryptocurrency-to-Cryptocurrency Trades, Ability to Offset Trading Losses Within Three Years