02-06-2025
Japan's Mitsubishi Launches $700 Million VC Arm
Mitsubishi's logo on display in Tokyo, Japan.
Japanese conglomerate Mitsubishi Corp. has launched its first corporate venture capital arm with a total fund size of 100 billion yen (about $700 million). The fund includes capital already deployed by Mitsubishi's eight business groups.
Titled MC Global Innovation (MCGI), the new CVC will 'make flexible investments across a broad range of sectors,' Mitsubishi said in a statement. MCGI will invest across the startup life cycle, from seed to later stages, with a focus on early-stage investments, according to the statement.
The firm will primarily target the fields of 'AI, software, bio and health care,' a representative of Mitsubishi added in emailed comments, but may also include segments such as 'robotics, aerospace, and next-generation computing,' among others.
Mitsubishi's startup portfolio currently spans approximately 100 companies, with assets under management totalling $300 million. Following the establishment of MCGI, Mitsubishi plans to invest another $300 million over the next ten years, according to the representative.
The CVC's debut comes on the heels of Mitsubishi's latest corporate strategy launch in April. To navigate what it described as an uncertain business environment linked to 'unprecedented geopolitical and economic risks,' the company stated it plans to allocate approximately 1 trillion yen to sustaining capex and more than 3 trillion yen to growth investments by 2027.
Through MCGI, Mitsubishi will consolidate its portfolio of startup investments from its eight business groups, spanning environmental energy, materials solutions, mineral resources, urban development and infrastructure, mobility, food industry, consumer technology-focused 'Smart Life Creation,' and power solutions.
Recent deals have centered on the fields of sustainable materials and mobility. On Monday, Mitsubishi separately announced it would invest in and enter a partnership with London-headquartered startup DEScycle, which recycles metals from electronic waste. Last November, Mitsubishi invested $25 million in Ample, a San Francisco-headquartered electric vehicle charging startup that develops battery-swapping infrastructure. Ample previously partnered with commercial vehicle manufacturer Mitsubishi Fuso Truck and Bus Corp. to pilot its technology on electric trucks in Japan.
A Mitsubishi Motors model on display at the 2025 Tokyo Auto Salon event in Chiba, Japan.
In addition to Mitsubishi Corp., the broader Mitsubishi Group includes financial services giant Mitsubishi UFJ Financial Group (MUFG), which operates Japan's largest bank by total assets, MUFG Bank; automaker Mitsubishi Motors; electronics and electrical equipment manufacturer Mitsubishi Electric; and industrial group Mitsubishi Heavy Industries.
CVCs have seen an uptick in activity in Japan, where corporations, including CVCs, were among the key types of investors 'making significant investments in startups' in 2024, according to an April report published by the government-owned Japan Investment Corp. Over this period, Mitsubishi UFJ Capital—a VC arm of MUFG, commonly known as MUCAP–participated in 22 seed-stage funding rounds and 44 in Series A to B, the report added, making it one of Japan's most active investors. As opposed to MUFG Innovation Partners, MUFG's dedicated CVC arm, MUCAP has a broader investment mandate that extends beyond financial services.
A rising area for investment has been Japan's semiconductor industry, which has seen a surge in both public and private investment. In March, the Japanese government pledged an additional $5.4 billion to its homegrown chipmaker Rapidus, bringing its total government subsidies or grants to around $11.5 billion. With backing from industry giants, including MUFG Bank and SoftBank, Rapidus aims to commence commercial production of chips using a 2-nanometer (2nm) process node—some of the world's most advanced—by 2027.
