THE BRIDGE

The Bridge

The Bridge

The Bridge accepts guest contributions from individuals with special insights into technology or the startup space.

http://www.thebridge.jp

Articles

Japan’s AAIC announces second close of Africa-focused second healthcare fund

SHARE:

Updated on Nov.1 at 11am: Correction Line section was removed. AAIC Investment announced on Thursday that the amount raised by the Africa Innovation & Healthcare Fund (AHF) II, which was announced its first close in April, has reached $40 million US at its 2nd close phase. The company has set the final fund size at US$150 million and expects to continue raising funds in the future. Combined with AHF I ($47 million), which was launched in 2017, the firm’s AUM (assets under management) has reached $87 million so far. AHF II has apparently been funded by Asahi Intec (TSE: 7747), Eisai (TSE: 4523), Ohara Pharmaceutical Industry, Marubeni (TSE: 8002), Development Bank of Japan, QR Investment by Hokkoku Financial Holdings Group (TSE: 7381), and TOPPAN Holdings (TSE: 7911) and among others. Of these, Marubeni follows their previous investment in AHF I. AHF I has competed its mission by investing in 30 companies while AHF II has so far invested in 15 companies including Aumet (pharmaceutical B2B marketplace connecting pharmacies and suppliers in Jordan, Egypt, Turkey, and Saudi Arabia), The Baobab Network (startup accelerator based in Nairobi, Kenya), CredAble (digital banking service for sub-Saharan Africa), and Yodawy (pharmacy benefit management service in…

Image credit: AAIC

Updated on Nov.1 at 11am: Correction Line section was removed.

AAIC Investment announced on Thursday that the amount raised by the Africa Innovation & Healthcare Fund (AHF) II, which was announced its first close in April, has reached $40 million US at its 2nd close phase. The company has set the final fund size at US$150 million and expects to continue raising funds in the future. Combined with AHF I ($47 million), which was launched in 2017, the firm’s AUM (assets under management) has reached $87 million so far.

AHF II has apparently been funded by Asahi Intec (TSE: 7747), Eisai (TSE: 4523), Ohara Pharmaceutical Industry, Marubeni (TSE: 8002), Development Bank of Japan, QR Investment by Hokkoku Financial Holdings Group (TSE: 7381), and TOPPAN Holdings (TSE: 7911) and among others. Of these, Marubeni follows their previous investment in AHF I.

AHF I has competed its mission by investing in 30 companies while AHF II has so far invested in 15 companies including Aumet (pharmaceutical B2B marketplace connecting pharmacies and suppliers in Jordan, Egypt, Turkey, and Saudi Arabia), The Baobab Network (startup accelerator based in Nairobi, Kenya), CredAble (digital banking service for sub-Saharan Africa), and Yodawy (pharmacy benefit management service in Egypt).

Porfolio of AHF I
Image credit: AAIC

via PR Times

xGoogler founders-led startup Tonari launches new model of life-size video conferencing system

SHARE:

Tokyo-based Tonari, the Japanese startup developing and offering a next-gen communication service that connects remote locations under the same name, introduced on Wednesday a new product called ‘tonari lite’, along with the ‘tonari pro’ existing model. The lite version is also available on a subscription-based rental basis. Their products have been installed in many organizations and facilities over the past three years, but the company felt it needed to reduce costs and simplify installation for further expansion. The company improved the manufacturing process and redesigned the product to achieve versatile size and price optimization. This simplified the installation process and made it easier to fit into international deployments and smaller teams. The lite version maintains the functionality of the previous model while saving space, and is optimized for small-group communication, making it easy to use in small offices, medical facilities, educational institutions, and other locations where space is limited. In addition, the revised design significantly reduces installation work. The company expects the lite version to contribute to reducing the frequency of overseas business trips while maintaining smooth cross-border communication. Tonari was founded in 2018 by Taj Campbell, a former product manager at Google, and Ryo Kawaguchi, a former engineer at…

Image credit: Tonari

Tokyo-based Tonari, the Japanese startup developing and offering a next-gen communication service that connects remote locations under the same name, introduced on Wednesday a new product called ‘tonari lite’, along with the ‘tonari pro’ existing model. The lite version is also available on a subscription-based rental basis.

Their products have been installed in many organizations and facilities over the past three years, but the company felt it needed to reduce costs and simplify installation for further expansion. The company improved the manufacturing process and redesigned the product to achieve versatile size and price optimization. This simplified the installation process and made it easier to fit into international deployments and smaller teams.

The lite version maintains the functionality of the previous model while saving space, and is optimized for small-group communication, making it easy to use in small offices, medical facilities, educational institutions, and other locations where space is limited. In addition, the revised design significantly reduces installation work. The company expects the lite version to contribute to reducing the frequency of overseas business trips while maintaining smooth cross-border communication.

Tonari was founded in 2018 by Taj Campbell, a former product manager at Google, and Ryo Kawaguchi, a former engineer at Google (the product name was Continuum while the company name was WorkAnywhere at that time). The company has developed a life-size video system that seamlessly connects two remote locations, creating a smooth and realistic space with a natural eye contact mechanism, clear audio, and low latency.

The company secured 340 million yen (about $3.2 million US in the exchange rate at the timing) in a seed round (led by One Capital, with participation from Mistletoe Japan, Leave a Nest Capital, ABBALab, and several angel investors) in November of 2020, and subsequently 450 million yen (about $3.3 million US in the exchange rate at the timing) in a pre-series A round (from Real Tech Fund and One Capital) in June of 2022.

via PR Times

Japan’s Hakki secures $10M+ funding to empower Kenyan cab drivers with own vehicles

SHARE:

Tokyo-based Hakki Africa, the Japanese startup offering micro-finance services for cab drivers in Kenya, announced on Tuesday that it has secured 1.58 billion yen (about $10.6 million) in the 1st close of its series B round. This round is led by SBI Investment with participation from QR Investment (by Hokkoku Financial Holdings), Deepcore, Hakobune, Music Securities in addition to debt from an undisclosed Japanese megabank and Hokkoku Bank. For the company, this follows their seed round in December of 2020 (secured 30 million yen) and Series A round in March of 2022 (secured 220 million yen including debt). The latest round brought their funding sum up to date to more than 1.83 billion yen (about $12.3 million). In Africa, it is very difficult to borrow unsecured loans due to the underdevelopment of financial services. The company offers a micro-finance service focused on used cars in the continent, especially in Kenya. It offers a loan screening based on a cab driver’s credit rating, with points deducted for multiple debts based on the history of the M-PESA mobile money usage, and points added for stability of cab sales on a weekly basis, offering the opportunity to purchase a car. In this particular…

The Hakki Africa team
Image credit: Hakki Africa

Tokyo-based Hakki Africa, the Japanese startup offering micro-finance services for cab drivers in Kenya, announced on Tuesday that it has secured 1.58 billion yen (about $10.6 million) in the 1st close of its series B round. This round is led by SBI Investment with participation from QR Investment (by Hokkoku Financial Holdings), Deepcore, Hakobune, Music Securities in addition to debt from an undisclosed Japanese megabank and Hokkoku Bank.

For the company, this follows their seed round in December of 2020 (secured 30 million yen) and Series A round in March of 2022 (secured 220 million yen including debt). The latest round brought their funding sum up to date to more than 1.83 billion yen (about $12.3 million).

In Africa, it is very difficult to borrow unsecured loans due to the underdevelopment of financial services. The company offers a micro-finance service focused on used cars in the continent, especially in Kenya. It offers a loan screening based on a cab driver’s credit rating, with points deducted for multiple debts based on the history of the M-PESA mobile money usage, and points added for stability of cab sales on a weekly basis, offering the opportunity to purchase a car.

In this particular area, some of our readers may recall a startup called Moove, offering vehicle financing to private business owners in several African countries. Backed by Japan’s Mitsubishi UFJ Innovation Partners, the company recently secured $10 million in debt in August this year.

See also:

via PR Times

Shizen Capital produces first female investor from Sprout GP-in-training initiative

SHARE:

This guest post is authored by Mark Bivens. Mark is a Silicon Valley native and former entrepreneur, having started three companies before “turning to the dark side of VC.” He is a venture capitalist that travels between Paris and Tokyo (aka the RudeVC). He is the Managing Partner of Shizen Capital (formerly known as Tachi.ai Ventures) in Japan. You can read more on his blog at http://rude.vc or follow him @markbivens. The Japanese translation of this article is available here. Just prior to the summer we announced our new Sprout initiative at Shizen Capital. Our hypothesis was that female venture capitalists were far too scarce in Japan, and not for lack of talent. We believe that diversity in venture capital teams is important for maximizing financial performance of a fund, as well as for identifying and supporting women and minority startup founders, who are also disadvantaged in venture ecosystems worldwide, and by extension funding innovative projects which merit backing yet fall off the conventional radars.  The diversity issue in our view is complex and systemic, and there is no single magic bullet of a solution to address it. However, as active investors in the market, we believe that we hold some…

This guest post is authored by Mark Bivens. Mark is a Silicon Valley native and former entrepreneur, having started three companies before “turning to the dark side of VC.”

He is a venture capitalist that travels between Paris and Tokyo (aka the RudeVC). He is the Managing Partner of Shizen Capital (formerly known as Tachi.ai Ventures) in Japan. You can read more on his blog at http://rude.vc or follow him @markbivens. The Japanese translation of this article is available here.


Mayumi Wakebe (picture from her LinkedIn account)

Just prior to the summer we announced our new Sprout initiative at Shizen Capital.

Our hypothesis was that female venture capitalists were far too scarce in Japan, and not for lack of talent. We believe that diversity in venture capital teams is important for maximizing financial performance of a fund, as well as for identifying and supporting women and minority startup founders, who are also disadvantaged in venture ecosystems worldwide, and by extension funding innovative projects which merit backing yet fall off the conventional radars. 

The diversity issue in our view is complex and systemic, and there is no single magic bullet of a solution to address it. However, as active investors in the market, we believe that we hold some accountability for the problem and hence have a role to play in solving it. Rather than discussing the topic ad infinitum in pursuit of the perfect solution, we chose to act.

Accordingly, we expect that the first incarnation of our Sprout initiative will be imperfect, but we are confident that we can improve and refine it along the way. We’re essentially applying The Lean Startup methodology toward addressing the complex problem of lack of diversity in venture capital. We’ve structured the Shizen Capital Sprout initiative as an apprenticeship program for emerging female VC fund managers. 

Although only a few months in, we’ve already witnessed several market characteristics validating our initial hypothesis. 

Shizen Capital held a gathering on April 26, where the firm’s limited partners listened to some of their several portfolio companies making pitches. The picture above shows Braid Technologies, one of the firm’s portfolio.
Image credit: Braid Technologies

For one, the volume of inbound applicants from truly impressive individuals debunks any myth of a scarcity of female VC talent in Japan. Our single blog post announcing the program — not even in Japanese for a role requiring native fluency — has appeared to tap an artery. As a small team, we regret that we could not hold extensive conversations with every candidate, but among the short list of those with whom we did, we found it difficult to narrow our selection to only one. For the others — and you know who you are — we are deeply grateful for the opportunity to have explored a collaboration with each of you. In our philosophy, there is a non-negligible chance that destiny will bring our professional paths together again in the future.

Another discovery during this preliminary phase: a tendency toward organizational hierarchy pervades the market. An elaborate degree of hierarchy is understandable in large and incumbent corporations. In venture however, our view is that excessive hierarchy serves as an impediment to investing in innovation. In other emerging venture ecosystems, we’ve witnessed how this can contribute to a dearth of early-stage capital, insufferably long due diligence cycles, and a proliferation of unwieldy investment syndicates that eschew stepping outside comfort zones. We respectfully encourage flatter fund organizations before this becomes a problem in Japan.

One final observation: several applicants approached us by leading with an apology that they lacked direct VC experience. This illustrates exactly the vicious cycle we are hoping to break ! The entire raison d’être of Sprout is to enable candidates with the right attitude and aptitude to become VC fund managers, regardless of their prior experience and career background. 

As the inaugural Sprout participant, Mayumi has joined Shizen Capital as a full-time Investment Director on a track to become full GP. Mayumi impressed us with her global mindset as well as her long-term ambition to build a VC fund focused on the African market, in pursuit of financial return and social impact, a commendable aspiration which Shizen endeavours to support in the future.

We are thrilled to count Mayumi as our newest member of the Shizen Capital family! Please feel free to introduce yourselves when you see her out at events. 

‘Dots for’ secures $670K to help Africa’s unconnected population benefit from digital economy

SHARE:

Japanese startup Dots for, the company aiming to help digitalizing rural villages in Africa with distributed communications using mesh network technology, announced on Friday that it has secured 100 million yen (about $670,000 US) in a seed round. Participating investors arew Anobaka, Quantum Leap Ventures (QXLV), G-Startup Fund, and unnamed several angel investors. QXLV followed their previous investment in the startup’s pre-seed seed round in September of 2022. The company says that it will use the funds to help people in rural areas of African gain access digital services and spend daily lives comparable to those in cities. It also expects to contribute to improving the incomes of rural residents through allowing them to remotely obtain jobs from developed countries and urban areas in Africa through efforts including matching sales of agricultural products. Dots for was founded in October of 2021 by Carlos Oba, who has worked at Amazon, Recruit, and C Channel, among others, in business startups and management. Prior to launching Dots for, he led the launch of a service for motorcycle cab operators in Tanzania and other countries as a new business manager at Wassha, the Japanese startup delivering electricity to off-grid areas in Africa. While urban…

Image credit: Dots for

Japanese startup Dots for, the company aiming to help digitalizing rural villages in Africa with distributed communications using mesh network technology, announced on Friday that it has secured 100 million yen (about $670,000 US) in a seed round. Participating investors arew Anobaka, Quantum Leap Ventures (QXLV), G-Startup Fund, and unnamed several angel investors. QXLV followed their previous investment in the startup’s pre-seed seed round in September of 2022.

The company says that it will use the funds to help people in rural areas of African gain access digital services and spend daily lives comparable to those in cities. It also expects to contribute to improving the incomes of rural residents through allowing them to remotely obtain jobs from developed countries and urban areas in Africa through efforts including matching sales of agricultural products.

Dots for was founded in October of 2021 by Carlos Oba, who has worked at Amazon, Recruit, and C Channel, among others, in business startups and management. Prior to launching Dots for, he led the launch of a service for motorcycle cab operators in Tanzania and other countries as a new business manager at Wassha, the Japanese startup delivering electricity to off-grid areas in Africa.

While urban areas in African countries are experiencing economic development and digitalization, rural areas with low incomes are facing a variety of unresolved issues, including Internet connectivity. The company uses mesh network technology to build wireless network infrastructure called d.CONNECT in rural villages in Africa at an overwhelmingly low cost and in a short period of time.

via PR Times

Japanese robotics startup Mujin secures $83M in series C for Europe expansion

SHARE:

Tokyo-based Mujin, the Japanese startup developing intelligent robotics solutions for industrial use, announced on Tuesday that it has secured 12.3 billion yen (over $83 million US) in a Series C round. Participating investors include SBI Investment, Pegasus Tech Ventures, Accenture, Dr. James Kuffner (robotics researcher, CEO of Toyota’s Wovn Planet Holdings), and 7-Industries Holdings. This follows the company’s Series B round back in August of 2014. The latest round brought their funding sum up to date to 20.5 billion yen (about $139 million). Mujin was founded in 2011 by robotics scientist Rosen Diankov and grew out of the University of Tokyo. His team developed OpenRAVE, motion planning software for real robot applications, as well as Mujin Controller, software enabling simulate different robot motion patterns and optimize performance before full-scale operation. In 2012, the company secured 75 million yen (about $960,000 US in the exchange rate at the time) from the University of Tokyo Edge Capital (UTEC) and other investors in a Series A round. See also: 9 Japanese robotics startups to watch in 2014 In robotics operations, automation of complex processes has conventionally been considered difficult. However, Mujin Controller has given intelligence to robots, enabling them to adapt to changes…

Image credit: Mujin

Tokyo-based Mujin, the Japanese startup developing intelligent robotics solutions for industrial use, announced on Tuesday that it has secured 12.3 billion yen (over $83 million US) in a Series C round. Participating investors include SBI Investment, Pegasus Tech Ventures, Accenture, Dr. James Kuffner (robotics researcher, CEO of Toyota’s Wovn Planet Holdings), and 7-Industries Holdings. This follows the company’s Series B round back in August of 2014. The latest round brought their funding sum up to date to 20.5 billion yen (about $139 million).

Mujin was founded in 2011 by robotics scientist Rosen Diankov and grew out of the University of Tokyo. His team developed OpenRAVE, motion planning software for real robot applications, as well as Mujin Controller, software enabling simulate different robot motion patterns and optimize performance before full-scale operation. In 2012, the company secured 75 million yen (about $960,000 US in the exchange rate at the time) from the University of Tokyo Edge Capital (UTEC) and other investors in a Series A round.

See also:

In robotics operations, automation of complex processes has conventionally been considered difficult. However, Mujin Controller has given intelligence to robots, enabling them to adapt to changes in the environment. In addition to industrial robots, Mujin also provides large-scale automation solutions by linking robots with robot hands, AGVs (Automated Guided Vehicles), conveyors, and other devices.

The company will use the funds to invest in technology for intelligent robot controllers and 3D vision systems to achieve greater sophistication and multifunctionality. They also plan to launch new products such as mobile robots and devanning robots, provide total automation solutions, promote business expansion into the European market in addition to the US market where they already have presence.

via PR Times

Japan’s Caster, introducing remote workers to companies, files for IPO

SHARE:

Japanese startup Caster, the company offering online-based office assistant services for companies, announced on Wednesday that its initial listing application on the Tokyo Stock Exchange had been approved. The company will be listed on the TSE Growth Market on October 4 with plans to offer 350,000 shares for public subscription and to sell 52,500 shares in over-allotment options. The underwriting will be led by Daiwa Securities while Caster’s ticker code will be 9331. Based on the company’s estimated issue price is 650 yen (about $4.5) per share, its market cap is approximately 1.24 billion yen (about $8.5 million). Its share price range will be released on September 14 with bookbuilding scheduled to start on September 19 and pricing on September 25. The final public offering price will be determined on September 26. According to its consolidated statement as of August of 2022, the company posted revenue of 3.34 billion yen ($23 million) with an ordinary loss of 161.8 million yen ($1.1 million). Founded in September of 2014, the company offers Caster Biz and other services helping enterprises connect with freelance or contract-based remote workers to outsource corporate tasks such as secretary, personnel, accounting, and translation operations. Over 800 remote workers…

Japanese startup Caster, the company offering online-based office assistant services for companies, announced on Wednesday that its initial listing application on the Tokyo Stock Exchange had been approved. The company will be listed on the TSE Growth Market on October 4 with plans to offer 350,000 shares for public subscription and to sell 52,500 shares in over-allotment options. The underwriting will be led by Daiwa Securities while Caster’s ticker code will be 9331.

Based on the company’s estimated issue price is 650 yen (about $4.5) per share, its market cap is approximately 1.24 billion yen (about $8.5 million). Its share price range will be released on September 14 with bookbuilding scheduled to start on September 19 and pricing on September 25. The final public offering price will be determined on September 26. According to its consolidated statement as of August of 2022, the company posted revenue of 3.34 billion yen ($23 million) with an ordinary loss of 161.8 million yen ($1.1 million).

Founded in September of 2014, the company offers Caster Biz and other services helping enterprises connect with freelance or contract-based remote workers to outsource corporate tasks such as secretary, personnel, accounting, and translation operations. Over 800 remote workers have been registered while the company has served more than 2,900 companies in total as of 2021.

Major shareholders include Incubate Fund (25.24% through two funds), Blue Monday (20.05%, founder and CEO Shota Nakagawa’s asset management company), WiL (11.1%), Daiwa Corporate Investment (9.33%), Strive (6.08%), CEO Nakagawa (3.54%), Gree Co-Invest (3.3%), SMBC Venture Capital (2.8%), Gunosy Capital (2.43%), Hideaki Ishikura (1.7%, managing director), Dip (1.21%, TSE:2379), and Yamaguchi Capital (1.21%).

See also:

Japanese space robot developer Gitai gets additional $15M in series B extension round

SHARE:

Tokyo / Los Angeles-based Gitai, the Japanese telexistance robotics startup for the space industry, announced on Wednesday that it has additionally secured $15 million US in a Series B extension round. In conjunction with the $30 million (4 billion yen) funding announced in May, the total amount secured in the Series B extension round has reached $45 million. Participating investors are Green Co-Invest, Pacific Bays Capital, and Mitsui Sumitomo Insurance Venture Capital while the amount includes loans from MUFG Bank. The robotics startup’s exact funding sum to date has not been disclosed, however, it is believed to have reached over 9 billion yen (over $62 million) in total, including the latest funding. The company plans to use the funds to expand its business operation in the U.S. and for part of the lunar surface demonstration. Prior to launching Gitai in 2016 (under its previous name of MacroSpace), the company’s founder Sho Nakanose previously worked for IBM Japan followed by founding an IT services company in India and sold it to an Indian company. Some of our readers may recall that Yuto Nakanishi, a humanoid scientist/engineer and former CEO of Schaft (acquied by Google X), joined Gitai as COO (now CRO,…

GITAI Lunar Rover

Tokyo / Los Angeles-based Gitai, the Japanese telexistance robotics startup for the space industry, announced on Wednesday that it has additionally secured $15 million US in a Series B extension round. In conjunction with the $30 million (4 billion yen) funding announced in May, the total amount secured in the Series B extension round has reached $45 million.

Participating investors are Green Co-Invest, Pacific Bays Capital, and Mitsui Sumitomo Insurance Venture Capital while the amount includes loans from MUFG Bank. The robotics startup’s exact funding sum to date has not been disclosed, however, it is believed to have reached over 9 billion yen (over $62 million) in total, including the latest funding. The company plans to use the funds to expand its business operation in the U.S. and for part of the lunar surface demonstration.

Prior to launching Gitai in 2016 (under its previous name of MacroSpace), the company’s founder Sho Nakanose previously worked for IBM Japan followed by founding an IT services company in India and sold it to an Indian company.

Some of our readers may recall that Yuto Nakanishi, a humanoid scientist/engineer and former CEO of Schaft (acquied by Google X), joined Gitai as COO (now CRO, Chief Robot Officer).

Gitai secured $4.1 million US in a Series A round in July of 2019 followed by 1.8 billion yen (about $17 million US in the exchange rate at the time) in a Series B round in March of 2021.

via PR Newswire

Japanese VTuber studio Brave group secures $13.7M to strengthen global expansion

SHARE:

Tokyo-based Brave group, a Japanese VTuber studio and working on other intellectual property (IP)-related businesses, announced on Wednesday that it has secured 1.99 billion yen (about $13.7 million) in the 1st close of its series D round. This was led by Simplex Capital Investment with participation from Tokyo University of Science Innovation Capital, Money Forward Venture Partners (HIRAC FUND), Revamp, and Adways Ventures. The latest round brought the company’s funding sum up to date to 5.03 billion yen ($34.5 million). Some of our readers may recall that the company secured 300 million (about $2 million) from Animoca Brands Japan back in January. Brave group was founded in 2017 by Japanese serial entrepreneur Keito Noguchi. The company produces and operates VTuber groups, including the virtual music label BlitzWing, and has developed IP-related businesses, a platform business using the Brave Engine metaverse engine in addition to pioneering emerging areas such as e-sports and Web3. The company established a US subsidiary in June to launch V4Mirai, a VTuber project focused on English-speaking markets. Brave group acquired Virtual Entertainment and MateReal in June. Virtual Entertainment operates manages Buisseppo! e-sports-focused VTuber group while MateReal manages the Palette Project female virtual idol group. In July, the…

Image credit: Brave group

Tokyo-based Brave group, a Japanese VTuber studio and working on other intellectual property (IP)-related businesses, announced on Wednesday that it has secured 1.99 billion yen (about $13.7 million) in the 1st close of its series D round. This was led by Simplex Capital Investment with participation from Tokyo University of Science Innovation Capital, Money Forward Venture Partners (HIRAC FUND), Revamp, and Adways Ventures.

The latest round brought the company’s funding sum up to date to 5.03 billion yen ($34.5 million). Some of our readers may recall that the company secured 300 million (about $2 million) from Animoca Brands Japan back in January.

Brave group was founded in 2017 by Japanese serial entrepreneur Keito Noguchi. The company produces and operates VTuber groups, including the virtual music label BlitzWing, and has developed IP-related businesses, a platform business using the Brave Engine metaverse engine in addition to pioneering emerging areas such as e-sports and Web3. The company established a US subsidiary in June to launch V4Mirai, a VTuber project focused on English-speaking markets.

Brave group acquired Virtual Entertainment and MateReal in June. Virtual Entertainment operates manages Buisseppo! e-sports-focused VTuber group while MateReal manages the Palette Project female virtual idol group. In July, the company acquired Geek Hive which offers digital transformation support for enterprises. The company will use the funds to strengthen overseas expansion and more aggressively merge and acquire other companies to further diversify revenue stream.

via PR Times    Summarized by ChatGPT

Fake Busters raises $5.6M to strengthen AI-powered authenticity check for branded goods

SHARE:

Tokyo-based IVA, the Japanese startup behind the Fake Busters AI-powered authenticity detection service for branded goods, announced on Wednesday that it has secured about 800 million yen (about $5.8 million US) in the latest round. The amount includes loans from Mizuho Bank and Resona Bank. This is the first funding for the five-year-old startup. Participating investors are Mercari (TSE:4385), De Capital family office, and four angel investors – Shogo Kawada (co-founder of DeNA), Yuzuru Honda (founder of Freakout Holdings), Eiko Matsumura, and Yusuke Masuda. Fake Busters offers product authenticity services by combining a team of experienced appraisers with diverse backgrounds, state-of-the-art specialized equipment, and AI-powered authenticity detection technology. The company is capable of appraising 88 brands in the fields of sneakers, luxury goods, apparel, and accessories, which have large secondary distribution demand. The company has appraised a total of 1.5 million items to date, and offers appraisal services tailored to customer needs, such as quick appraisals based on images as well as complete appraisals based on actual items. The company uses the funds to plans to further enhance its AI capability, which currently has a 99.9% authenticity rate, to speed up the process, and to add an express option that…

Image credit: IVA

Tokyo-based IVA, the Japanese startup behind the Fake Busters AI-powered authenticity detection service for branded goods, announced on Wednesday that it has secured about 800 million yen (about $5.8 million US) in the latest round. The amount includes loans from Mizuho Bank and Resona Bank. This is the first funding for the five-year-old startup. Participating investors are Mercari (TSE:4385), De Capital family office, and four angel investors – Shogo Kawada (co-founder of DeNA), Yuzuru Honda (founder of Freakout Holdings), Eiko Matsumura, and Yusuke Masuda.

Fake Busters offers product authenticity services by combining a team of experienced appraisers with diverse backgrounds, state-of-the-art specialized equipment, and AI-powered authenticity detection technology. The company is capable of appraising 88 brands in the fields of sneakers, luxury goods, apparel, and accessories, which have large secondary distribution demand. The company has appraised a total of 1.5 million items to date, and offers appraisal services tailored to customer needs, such as quick appraisals based on images as well as complete appraisals based on actual items.

The company uses the funds to plans to further enhance its AI capability, which currently has a 99.9% authenticity rate, to speed up the process, and to add an express option that will provide results in 60-90 minutes, previously within 48 hours. The company will expand applying the AI-based authenticity detection into further product categories such as luxury brand bags, jewelry, and trading cards.

Launched a Taiwanese office in June, the company plans to set up a subsidiary in Mainland China in August with consideration of expanding into the South Korea, Southeast Asia, and North America markets in the future. The service supports Japanese, English, Simplified Chinese, Traditional Chinese, Korean, and nine major currencies.

via PR Times