Coral Capital closes its $128M third fund called Coral Capital III

At a Glance

Coral Capital, a venture capital firm based in Tokyo, has announced the completion of its third fund, Coral Capital III, which raised $128 million (14B yen). The organization will invest in SaaS, insurance, fintech, healthcare, deep tech, fusion engineering companies, and robotic enterprises.  

Coral Capital, a Tokyo-based venture capital firm, has announced that it has closed its third fund of $128 million (14 billion yen) called Coral Capital III. Coral Capital now has $275 million in total assets under management (AUM).

Mizuho Bank, Mitsubishi Estate, Shinsei Bank, Pavilion Capital, Founders Fund, Dai-ichi Life Insurance, GREE, and unnamed domestic and foreign institutional investors are among the fund’s limited partners.

According to James Riney, founding partner and CEO of Coral Capital, the current fund is distinguished by its longer fund life, which can be extended to 14 years. “We want our founders to focus on building,” James told TechCrunch, “without the pressure of a VC looking for a quick exit.” The previous two funds had a fund life of around ten years, he added.

Coral Capital, created by two partners James and Yohei Sawayama, plans to continue investing in seed and early-stage firms in Japan, with first checks ranging from $500,000 to $5 million and follow-on funding, according to CEO and founding partner James.

We have made a few large follow-on investments – $20 million into SmartHR and $17 million into Graffer. we also allocated a significant portion of our latest fund for follow-on investment.

James Riney, founding partner and CEO of Coral Capital

He added that Coral Capital intends to be a bridge between its Japan-based portfolio firms and the worldwide venture capital community for reaching international size, with over 30% of its third fund coming from global investors from the US, Asia, and Europe.

According to James, the company will invest in digital transformation in SaaS, insurance, fintech, healthcare, deep tech, fusion engineering companies, and robotic enterprises.

In February 2016, James and Yohei, co-founders of 500 Startups Japan, announced their first fund collaborating with 500 Startups. In February 2019, Coral Capital launched its $45 million second fund, Capital Fund II, under its brand name. 

James added that Coral Capital has invested in over 80 firms in Japan and exited seven of them. SmartHR, Graffer, GITAI, and Kyoto Fusioneering are among the companies in which it has invested.

Coral Capital also intends to expand its media outlet, Coral Insights, and hire new employees to help it grow its community. Many business founders, employees, and investors share their lessons learned, raising the bar for everyone in the ecosystem, and Japan is beginning to resemble Silicon Valley, according to James.

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