Published 12 Oct 2022

Sumitomo Corp. launches its CVC to invest in Japanese startups

Sumitomo Corp. launches its CVC to invest in Japanese startups

On October 12, 2022, Sumitomo Corporation announced the launch of Sumisho Venture Partners Corporation in April 2022 as a corporate venture capital firm to invest in startups in Japan.

Sumitomo Corp. has invested in more than 300 startups globally since 1998, first in Silicon Valley, then in Hong Kong, Tel Aviv, and London. In 2022, the company launched Sumisho Venture Partners in Tokyo, and will continue to invest in Japanese startups while leveraging its global expertise and know-how.

Sumisho Venture Partners has a dual investment strategy of pursuing capital gains and business synergies. First, from the perspective of a VC, the company identifies and investigates startups whose corporate value is expected to grow rapidly in the future. In addition, the Sumitomo Corporation Group will contribute to the disruptive growth of startups in Japan by investing in companies with which it sees potential for collaboration in the short to medium term. Also, through its global CVC experience, the company has established a lean decision-making process and plans to provide flexible investment consideration and business support in line with the management speed of the startups.

Sumisho Venture Partners focuses its investments on the next-generation growth strategy themes set forth in Sumitomo Corporation's management strategy called "SHIFT2023," including next-generation energy, social infrastructure, retail/consumer, healthcare, and agriculture. The targeted investment stage is mainly Series A or later, with a focus on middle-stage investments. The company will support its portfolio through sales expansion of existing businesses, overseas expansion by leveraging Sumitomo Corporation's assets and resources, and co-creation of new businesses that will become future core businesses by leveraging Sumitomo Corporation's business platform.

The company also announced that it has invested in Nudge Corporation, which provides a next-generation credit card service called "Nudge.” Nudge is a service that allows any artist, creator, sports team, etc. with a fan community to issue credit cards. The company aims to provide a new financial experience for both users and partners, and to become a challenger bank in Japan. Sumitomo Corporation will be utilizing Nudge for its retail business and Sustainability City, which is under consideration.

Sumisho Venture Partners’ company profile is here: