MUFG, Liquidity Capital to form JV in Singapore, launch an $80-mil fund for startups

11, Aug. 2020

Photo by S O C I A L . C U T on Unsplash
Photo by S O C I A L . C U T on Unsplash

SINGAPORE, NNA - MUFG Bank, a subsidiary of Japan’s Mitsubishi UFJ Financial Group Inc., and Israeli fintech firm Liquidity Capital M.C. Ltd. will set up a joint venture in Singapore to launch a debt fund this year to help startups in the Asia-Pacific region as the COVID-19 pandemic drives application of digitization and smart technologies.

The 50-50 joint venture, called Mars Growth Capital Pte. Ltd., will establish a debt fund with an initial capital commitment of $80 million based on a limited partnership agreement between Mars Growth Capital, as a general partner, and MUFG Bank as a limited partner. Mars Growth Capital will have capital of up to $6 million.

“With the changes in individuals’ preference toward remote communications accelerated by COVID-19, it is expected that the market for the tech industry will grow, with even more new startups arising,” the Japanese bank said in a press release Friday last week.

Liquidity Capital, founded in Tel Aviv in 2018, uses a unique credit scoring model based on artificial intelligence technology and real-time financial and accounting data and forecast future earnings and cash flow. The company is leveraging its strengths to assist startup firms that are growing but face difficulty in obtaining finance.

The establishment of a joint venture came after MUFG invested in Liquidity Capital last year through its corporate venture capital Mitsubishi UFJ Innovation Partners Co.