Mitsubishi UFJ Financial Group (MUFG), one of the largest financial institutions in the world, announced on Friday the establishment of MUFG Innovation Partners Co., Ltd. (MUIP), which will manage corporate venture capital funds of MUFG to accelerate open innovation and strengthening partnerships with fintech related startups.
MUFG Group reported that its entities have previously made separate strategic investments in fintech related startups, a larger, collaborative and more sophisticated framework for strategic investments is needed by MUFG in order to adapt itself to rapid marketplace changes and enhance open innovation. The organization revealed:
“MUIP will launch a JPY 20 billion fund backed by commitments from the MUFG Group entities and will promote strategic investments in FinTech related startups and business synergies between MUFG and such startups.”
MUFG Group noted that the MUIP will take advantage of “The Investment Specialized Subsidiary” status under the Japanese Banking Act, which allows MUIP to acquire more than 5% ownerships of investees under certain conditions. MUFG then added:
“Regarding the team development, MUIP has hired venture capitalists and other professionals who have wide experiences of working with and investing in Japanese and global startups to establish a high capability of global open innovation. Additionally, MUIP is committed to maximizing its portfolio startups’ enterprise value by providing knowhow and leveraging the global network of MUFG.”