Incubate Fund Asia Announces First Close of $50 Million Third Fund to Boost Early-Stage Startups
- ByStartupStory | September 21, 2023
Incubate Fund Asia, a Japanese venture capital fund with a sector-agnostic approach, has revealed the successful initial closure of its third fund, which seeks to secure a total corpus of $50 million (approximately Rs 416 crore). Marking the third fund by the Japanese venture capital firm in India, it specializes in seed-stage investments. The fund’s capital will be deployed for investments in early-stage startups and to provide follow-on funding for startups demonstrating robust foundational growth. The third fund aims to construct a portfolio of approximately 20 startups, allocating 40% of its total investable corpus to create the portfolio and reserving the remaining portion for backing the standout performers in its portfolio.
Incubate Fund’s India-focused entity has undergone a rebranding, now known as Incubate Fund Asia, with a broader commitment to supporting pre-seed and seed-stage startups across India and Southeast Asia (SEA). The fund was initiated and has been led by Nao Murakami, the Founder and General Partner of the fund, with the support of Incubate Fund’s Japan-based team.
Nao Murakami expressed, “With the target fund closure of $50 million, we will be ready to significantly enhance our support to emerging ventures, driving sustainable growth and innovation. Incubate Fund Asia remains deeply committed to its vision of nurturing innovation and catalyzing the growth of startups, ultimately contributing to the development of a thriving entrepreneurial ecosystem across Asia.”
Having previously nurtured over 200 startups in Japan and various Asian regions, Incubate Fund Asia expanded its operations to India in 2016, establishing Incubate Fund India, which was recently rebranded as Incubate Fund Asia. The firm actively engages with startups, offering hands-on support and mentorship, positioning itself as a vital partner for entrepreneurs. Incubate Fund Asia takes on a significant role as a lead investor by dedicating a substantial 80% of its funds to Indian startups. To date, the fund has provided support to 27 Indian companies, including prominent ventures like ShopKirana and Captain Fresh. The fund’s contributions play a pivotal role in advancing business digitization and innovation, consistently investing in the range of $500K to $1.5 million. In 2019, Incubate Fund initiated a $18 million Fund II.
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