MUFG sets up equity fund to invest in middle, late-stage startups in Japan

Japanese startups struggle to achieve sufficient growth due to lack of support.

Mitsubishi UFJ Financial Group (MUFG) is establishing an equity fund to invest in middle and later-stage startups in Japan.

The fund, formed together with MUFG Bank and the Mitsubishi UFJ Trust and Banking Corporation (MUTB) will invest in equities targeting Japanese growth companies.

This comes as MUFG observed that venture capital firms (VCs), synergy-driven corporations, and their venture capital arms (CVC) have principally invested in seed and early-stage startups, according to the press announcement on 1 October 2025.

“Due to the market structure, Japanese startups often struggle to achieve sufficient growth, resulting in a lack of creative destruction,” the bank said in a press release.

Key aims for the fund include connecting Japanese growth companies with Japanese and international investors; develop investees and Japanese markets by leveraging the capabilities of the MUFG Group and deliver and enhance returns to Japanese and international investors.