The size of the VC fund of SBI Holdings is testament to the Japanese government’s intention to elevate the country as a startup hub in Asia.

SBI Holdings (TYO: 8473), a major Japanese financial firm, is launching a $663 million fund aimed at supporting Web3, AI, and fintech startups. Scheduled to invest in 150-200 companies, the fund is set to begin operations by year-end. The investment scale is substantial, with key contributions secured from major financial institutions like Sumitomo Mitsui Banking Corporation (TYO: 8316), Mizuho Bank (TYO: 8411), Nippon Life Insurance, and Daiwa Securities Group (TYO: 8601).

This injection of more than 50 billion yen represents a significant push in a nation where large venture capital funds are rare. (CryptoPotato)

Japan has been addressing the challenge of fostering startup enterprises, prompting the Kishida administration to outline a “5-year startup development plan” in 2022. This plan aims to boost Japan to the status of a startup hub in Asia, reflecting the belief that startups embody an innovative capitalist mindset by converting societal challenges into growth catalysts.

The Japanese government is ambitiously aiming to increase startup investments from 800 billion yen in 2022 to 10 trillion yen by 2027, focusing on collaboration between the public and private sectors. Their vision includes the development of 100 unicorns and 100,000 startup companies to solidify Japan as a global startup hub.

As the Web3 and AI landscape evolves, regulatory challenges and tax policies are becoming crucial. The government is revising tax frameworks for Web3 companies, with the final reform outline expected around mid-December.

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