Japanese IT firm launches $150m VC fund

NEC Corporation, a Tokyo-based IT firm, has launched a corporate VC (CVC) fund to invest up to US$150 million in tech startups across Asia, Israel, the US, and Europe.

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Photo credit: NEC Corporation

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The fund will focus on investing in areas like 5G and 6G communication, digital government, digital finance, smart cities, healthcare and life sciences, and carbon neutrality.

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“NEC believes that the evolution of network technology and the transformation of digital services will drive the creation of new social value,” the company said in a statement. “The CVC fund will invest in both technology and services, and aim to maximize the investment by generating synergies.”

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The IT firm said it will build ecosystems with corporate enterprises and its portfolio startups to accelerate new business development activities.

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See also: These are the most active investors in Japan’s startups

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The new fund plans to raise capital by the end of June 2022 from corporate enterprises that share its goals.

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In 2016, Lenovo Group bought out most of NEC’s stake in the two firm’s PC-focused joint venture for nearly US$195 million.