Coral Capital Raises $160 Million to Bet on Japan’s Startups

Japanese early-stage investor Coral Capital Inc. has raised ¥25 billion ($160 million) for its fourth fund, as the country’s institutional investors show a growing appetite for taking on risk.

State-backed Development Bank of Japan Inc., along with the likes of Mizuho Bank and Dai-ichi Life Holdings Inc., are investing, according to Coral Capital Chief Executive Officer James Riney. Institutional investors make up almost 70% of the capital committed, he said.

That reflects a shift in Japan’s startup ecosystem, where corporate VCs traditionally played an outsized role. A wider range of investors are exploring bets on Japan’s young ...