A Japanese venture capital firm that focuses on seed-stage investments, Incubate Fund Asia, has announced the first close of its third fund, which has a target corpus of $50 million (roughly Rs 416 crores).
In 2019, Incubate Fund debuted its $18 million Fund II.
Additionally, the Singapore-based fund announced that it is changing its name to Incubate Fund Asia. Prior to that, it was known as Incubate Fund India, and its first two funds since 2016 were used to support domestic startups like Captain Fresh, Yulu, ShopKirana, and Plum.
So far, Incubate Fund has supported 27 businesses.
According to a press release from the company, the proceeds of the fund will be used to make early-stage investments as well as follow-on investments in startups that have demonstrated strong fundamental growth. The third fund is intended to be used to create a portfolio of approximately 20 startups. Only 40% of the total investible corpus will be used to create the portfolio; the remaining 60% will be used to support the portfolio’s “winners”.
Incubate Fund was founded in 2016 and keeps offices in prominent cities like Tokyo, Singapore, Bangalore, Mumbai, So Paulo, and Mountain View.
The sister funds in nations like Brazil, the United States, and India are structured independently of the parent Incubate Fund group, which has its headquarters in Tokyo, Japan. Over 200 startups are included in the main Japan fund’s portfolio.
