Banking giant SBI Holdings, a partner of Ripple, intends to provide financial support to Japanese startups operating in Web3 and Artificial Intelligence (AI) domains.
The financial support will have a transformative effect, facilitating progress for numerous startup enterprises based in Japan.
However, the massive financing firm will reportedly establish a fund to invest 100 billion Japanese Yen (JPY), or $663 million, in about 150 startup companies.
SBI Holdings Funds Will Change AI & Web3 Startups
Japan will undergo a revolution by announcing distinct funding plans for the AI and Web3 industries, strengthening the country’s position in the mentioned sectors and benefiting domestic businesses.
However, compared to the United States and Europe, the rate of development of startup companies and financing for unicorns is notably lower in Japan.
This is the optimal strategy to alter the situation and transform Japan into a startup hub.
A SBI Holdings representative underscored the criticality of the financing, stating that it will propel the startup ecosystem, Web3, and AI industries forward, allowing Japan to contend with other nations in this sector.
Furthermore, it is anticipated that major domestic and regional institutions will provide additional funding to several startups, thereby augmenting the available funds.
Startup Investment in Japan to Reach 10 Trillion Yen
Japan’s SBI Holdings developed this financing management strategy in light of the considerable potential of startups in the country and the fact that inadequate funding is a barrier to progress.
In addition, Daiwa Securities Group, Sumitomo Mitsui Banking Corporation, Mizuho Bank, and Japan Life Insurance have all decided to invest over 500 billion yen in this fund.
SBI Holdings confirmed that few venture capital (VC) funds in Japan have a value of one billion yen.
Meanwhile, the announcement of startup funding will follow the announcement of the XRP lending service.
SBI Holdings and a significant Ripple strategic partner recently declared the launch of the industry-leading XRP service.
Businesses can borrow XRP held by the firm from customers in exchange for a usage charge proportional to the lent amount and term via the new lending services.
Following the success of XRP Lending Service, which boosted the cryptocurrency market, SBI Holdings of Japan will now enter the financing of startups specializing in the development of artificial intelligence and the Web3 sector.