Startups

Japanese Pension Funds Tiptoe Into Moonshot Tech Investments

  • VC firms like Beyond Next benefit from Tokyo’s startup support
  • Tiny amounts from aging nation’s giant annuities testing risk

The investments are one of the first signs that a trickle of money from the aging economy’s pension assets is going into the startup ecosystem.

Photographer: Yuriko Nakao/Bloomberg
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Tokyo-based Beyond Next Ventures Inc.’s latest startup fund is 56% bigger than its predecessor, thanks to growing interest from the country’s traditionally risk-averse pension funds.

Of the ¥25.7 billion ($160 million) the company raised for bets on cutting-edge tech and research startups, 20% came from trustees handling annuities and other long-term investments, according to the company. It’s one of the first signs that a trickle of money from the aging economy’s $3.3 trillion dollars’ worth of pension assets is going into the startup ecosystem.