Marubeni, SMBC, 2 other Japan firms invest in venture fund managed by Temasek arm

10, Dec. 2019

Photo by Annie Spratt on Unsplash
Photo by Annie Spratt on Unsplash

SINGAPORE, NNA – Trading house Marubeni Corp., Sumitomo Mitsui Banking Corp. and two other Japanese firms will pour over $70 million in total into a fund managed by a Singapore-based venture capital arm of Temasek Holdings (Private) Ltd., tapping cutting-edge technology fields via investment.

The trader, the Japanese lender, Tokyo-based ABeam Consulting Ltd. and the government-backed Development Bank of Japan Inc., said Monday they sealed the deal to inject the capital into Vertex Master Fund (SG) II LP.

The fund is run by Vertex Venture Holdings Ltd. , which is wholly owned by Temasek, a Singapore government-backed investment vehicle, and invests globally via its network funds in Silicon Valley, Israel, and India among other places. Vertex Venture aims to boost the fund size to $770 million, according to their statements.

Marubeni plans to spend $50 million, one of three mega commercial banks in Japan known as SMBC will invest $20 million, and ABeam Consulting will contribute $10 million. The Development Bank of Japan did not disclose the investment sum, the statement said.

Vertex Master Fund (SG) II sponsors startups with cutting-edge technologies in such fields as healthcare, artificial intelligence, fintech and the internet of things.

ABeam Consulting will inject the capital into Vertex Master Fund (SG) II through RISA Vertex Venture Fund, a gateway for Japanese investors to participate in Vertex Master Fund (SG) II’s fundraising, it said in a statement.

Abeam teamed up with RISA Partners Inc., a Tokyo-based investment firm that established the venture fund earlier this year, with the aim of helping Japanese companies collaborate in technology enhancement and form capital alliances with startups abroad.

The Development Bank of Japan also intends to help more Japanese firms cooperate with foreign startups in Vertex Venture Holdings’ portfolio, the lender said in its statement.