MUFG launches new $185m fintech fund
MUFG has established MUFG Innovation Partners (MUIP), a JPY 20 billion ($185 million) fund to accelerate open innovation and partnerships with fintech start-ups.
MUIP will manage corporate venture capital funds of MUFG, as the bank believes that the financial services industry is being transformed by fintech start-ups that have scaled up rapidly and have raised substantial amounts of capital from financial and non-financial institutions.
The bank believes that, unlike previous, smaller investments by its different entities, a larger, collaborative and more sophisticated framework for strategic investments is needed to adapt itself to rapid marketplace changes and enhance open innovation.
MUIP says it will promote investments in start-ups and business “synergies” between MUFG and such start-ups. Around 30% to 40% of the investment funds will go toward Japanese start-ups, according to the firm.
MUIP will take advantage of “The Investment Specialised Subsidiary” status under the Japanese Banking Act, which allows MUIP to acquire more than 5% ownerships of investees under certain conditions.
