World industry is changing the way it works for a couple of decades now. Startups, ventures are new trendy and fruitful things that people follow and market accepts these days. But running a startup is not a game of novice. The main thing you require is money and money come from funding. Making investor put their money in a product is easier said than done. Your business plan has to be robust enough and your product should be scalable so that it can comprehensively adapt any market change that would occur in coming time. A unique venture named 500 Startups has announced its closed in Japan fund backed by Japanese Government.

 

Doing it Japanese way to raise Japan Fund

Japanese Government backed 500 Startups with Japan Fund
Image Courtesy: TechCrunch

It took them 1.5 years of a journey after they initiated the organisation. The enterprise had targeted to close the fund in $30 Million. But thanks to excited investors, the company got more than expected as said by James Riney, one of the team members of 500 Startups. The funding is also backed by the Japanese Government who came on the table through LP by its Cool Japan Fund. Cool Japan Fund is an initiative which targets to invest money in promoting Japanese products overseas. CJF (Cool Japan Fund) has committed $10 Million dollars but the dignity it adds to the venture has more value than the offer. It will naturally attract the attention of the world’s big investor since the government has shown the trust.

 

Got opportunity to build more opportunity

Japanese Government backed 500 Startups with Japan Fund
Yohei Sawayama (L) and James Riney (R) Image Courtesy: Tech in Asia

Riney also said that 500 Startups would work along with Cool Japan Fund to create a better opportunity for local Japanese startups. In other words, the will help other startups in seed funding and may be inviting CJF to invest around $10 to $20 million on them. This will lead them to have an incredible leading edge in the global scale. He also added that CJF is affirmative in investing outside the country of Japan. But they found that they lack mainly in the network. They have capital, but they don’t have enough contacts to have a “go ahead”. Riney added that, “we have consistently been working to build a network outside the US where there will be one known person of us who has best contacts and give them the ability to hit the ground running”.

The company is already looking to help other ventures reach to the glory. Riney said that 500 Startups are eager to invest in the business starting from $100,000 to more than $450,000. They would also like to increase their bid to approximately $1 Million based on the product and startup they are investing in. These numbers show the enormous potential opportunities that Japanese startups are getting or will get in the coming time. The amount of money will undoubtedly help them better working space, cope with the technological advancements and connect with better human resource throughout their tenure.

Also read: Nokia’s Comeback in Tech World

Riney’s viewpoint ahead for 500 Startups

Japanese Government backed 500 Startups with Japan Fund
Source: disruptingJapan

Riney remarked that initially, we saw people who want $20 Million – $30 Million is going IPO. But now, they have observed that more companies are preferring staying private after later rounds. The viewpoint behind this is getting better capital and growth in future. This move from companies has made investors comfortable. Such scenarios show that how people are changing in taking risks for their startups with the aim of better future.

The 500 Startups has few real investors and relatively lesser links outside of the Japan. 500 startups are in a good position that will allow them to have a good flow of the deals. But, this organisation is evident that future coming technologies and industries across the world.

Leave a Reply