Mori Building Innovation Fund will back early and mid-stage startups that can improve the city’s buildings and urban environment.
Japanese real estate developer Mori Building has announced a ¥10bn ($63m) corporate venture capital fund to invest in startups developing technology that will support the cities of the future.
Unveiled this week, the Mori Building Innovation Fund has been active since February and was formed in partnership with Spiral Innovation Partners, the CVC fund manager subsidiary of venture firm Spiral Capital.
Mori concentrates its property development in Tokyo and seeks technologies that can accelerate the city’s evolution, it said in a release announcing the initiative. The company has backed external VC funds in the past but has not previously invested in startups.
The fund will invest in three main areas: advancement of urban infrastructure and industries, involving startups that can make buildings smarter, more energy efficient and resistant to disasters; creation of new urban value and experiences, which centres on new urban consumer experiences; and urban knowledge, co-creation and global connectivity, looking at ways organisations can collaborate on research, growth and cross-border businesses.
Mori Building Innovation Fund is expected to invest the capital over a 10-year period, typically providing ¥100m to ¥1bn per deal at early to mid-stage. It plans to pilot the technology at Mori’s Toranomon Hills and Azabudai Hills complexes in Tokyo.
Robert Lavine
Robert Lavine is special features editor for Global Venturing.