ME Innovation Fund

History

2021: Fund launch

On January 12, 2022, Mitsubishi Electric and Global Brain announced the immediate launch of ME Innovation Fund, a corporate venture capital fund (CVC) that will invest and collaborate with startups around the world. The fund will work with a commitment to invest 5 billion yen ($44 million) over ten years until 2032.

Mitsubishi Electric has created a venture fund to invest in startups around the world

Through ME Innovation Fund, Mitsubishi Electric and Global Brain will invest and support the growth of global startups, which are believed to have the potential for breakthrough innovation, primarily in the field of digital technology and green innovation. In addition to funding, the fund will provide a wide range of business knowledge and management support, as well as technologies aimed at creating new promising enterprises that can collaborate with Mitsubishi Electric to contribute to a more sustainable world.

Mitsubishi Electric has created its venture capital fund amid growing interest in Japanese startups, including from foreign investors. According to the local company Initial, in January-June 2021, a total of 342.5 billion yen (more than $3 billion) was invested in startups based in the country, which is three times the result of a year ago. Foreign investment giants such as Sequoia, Soros Capital and Peter Thiel's Founders Fund, as well as Masayoshi Song's Vision Fund, which began investing in Japanese projects in 2021, were particularly active.

Interest in Japanese startups is primarily associated with pressure on the Chinese technology sector, which is provided by local authorities. In addition, the COVID-19 pandemic spurred the development of remote communications, which made the physical location of the company less important.^[1]

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