GREE Fund

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A corporate-led fund of funds and direct investment initiative aimed at strengthening Japan’s venture capital and startup ecosystem.
What are the main aims and objectives?

The GREE Fund is designed to accelerate digital innovation in Japan by supporting both venture capital funds and early-stage startups, particularly in the IT and technology sectors. Its principal aim is to increase the flow of capital, expertise, and cross-industry collaboration, helping new ventures overcome barriers related to limited investment options, insufficient networks, and lack of international exposure. By serving as a bridge between Japanese corporates, global VC funds, and emerging startups, the Fund seeks to invigorate entrepreneurship and foster sustainable growth within the country’s digital economy.

How does the program work?

GREE Fund operates as a hybrid investment vehicle, featuring both fund of funds (FoF) and direct investment components. Its main flagship, GREE LP Fund JP2, pools capital from institutional and corporate investors, including GREE Holdings, and deploys resources across a diversified portfolio of Japanese venture capital (VC) funds. By investing in approximately 20 different VC funds, the Fund indirectly supports over 600 startups.

The FoF approach allows GREE to mitigate risk through diversification and gives institutional investors exposure to a wide range of sectors and stages. VC funds in the portfolio cover micro VC targeting seed-stage companies as well as established managers that focus on growth-stage ventures. This design aims to attract both domestic and international limited partners (LPs), opening Japanese VC markets to broader collaboration.

Separately, GREE Ventures executes direct investments in high-potential startups, particularly those innovating in mobile, SaaS, gaming, fintech, and healthcare IT. Through vehicles such as STRIVE (targeting Southeast Asia and Japan) and GFR Fund (focusing on global gaming ventures), GREE supports founders with not only funding but also operational and strategic expertise. Startups benefit from guidance in business development, go-to-market strategy, and access to GREE’s extensive technological and industry network.

Selection and oversight are managed by an experienced investment committee, drawing on backgrounds in venture capital, M&A, and private equity. Centralized governance ensures capital is allocated with a long-term view; the Fund typically operates with a 12-year term and periodic reviews. GREE acts as an anchor investor for new VC funds and participates in secondary opportunities to bolster deal flow. Throughout, the Fund emphasizes transparency, disciplined manager selection, and active engagement with LPs to ensure alignment and maximise ecosystem impact.

What is the overall cost?

GREE LP Fund JP2 completed its first close in July 2025, raising ¥4.4billion (approximately $30million), with a targeted final fund size of ¥6billion ($41million). The previous fund, JP Fund I (launched in 2022), raised ¥12billion (around $83million) entirely from GREE Holdings’ balance sheet. Funding is privately sourced from corporate and institutional investors, and there is currently no cost contribution required from supported startups.

How was it implemented?

GREE Holdings established its venture investment arm in 2010, leveraging its experience in gaming, digital media, and technology. The initial implementation centered on direct investments, later expanding to the fund of funds model to mobilize third-party capital and broaden the investment mandate. Dedicated teams were recruited with backgrounds across investment management, operational leadership, and corporate finance. Internal training and governance procedures ensured staff could conduct rigorous due diligence and maintain best practices in investment evaluation.

Milestones:

  • 2010: GREE Holdings launches venture investment activities.
  • 2022: Introduction of JP Fund I, solely funded by GREE’s corporate capital.
  • July 2025: Launch of GREE LP Fund JP2, opening the structure to external LPs and targeting investment in roughly 20 Japanese VC funds.
    Key implementation roles were held by GREE Ventures’ leadership team and investment committee, bringing together experts in VC, buyouts, and corporate development. As the anchor investor, GREE played a central role in catalyzing involvement from other corporates and institutional investors, enabling broader risk-sharing and sector coverage. The Fund maintains close relationships with portfolio managers and provides ongoing strategic input to enhance returns and impact.
What impact has been measured?

Since its inception, GREE Fund has facilitated investments in over 100 VC funds and indirectly enabled growth for more than 600 startups in Japan. The initiative has expanded Japanese startups’ access to capital, networks, and expertise, especially those facing barriers in the domestic VC market. By pooling resources, the Fund opened Japanese VC funds to international LPs, helping increase deal flow and attract cross-border investment. Specific participation metrics and long-term economic outcomes—including increased innovation in technology sectors and improved investor connectivity—have been cited in corporate releases, though detailed impact evaluations are limited.

What lessons can be learned?
  • Fund size remains moderate compared to global VC mega-funds, which may limit scale and strategic impact in the wider region.
  • Limited availability of systematic evaluation data restricts clear measurement of broader economic effects.
  • Active involvement of a corporate anchor has been beneficial, but increased diversification among LPs may further strengthen resilience.
  • Continued efforts to improve transparency and publish impact metrics will help stakeholders assess progress and refine practices.
  • Opening Japanese VC funds to international LPs has promoted cross-border opportunities and helped overcome local capital constraints.

CURATED BY

Tom Hancock

Research Associate
Global Entrepreneurship Network
United Kingdom