Japanese pension funds tiptoe into moonshot tech investments

Tokyo-based Beyond Next Ventures’ latest startup fund is 56% bigger than its predecessor, thanks to growing interest from the country’s traditionally risk-averse pension funds.

Of the ¥25.7 billion ($160 million) the company raised for bets on cutting-edge tech and research startups, 20% came from trustees handling annuities and other long-term investments, according to the company. It’s one of the first signs that a trickle of money from the aging economy’s $$3.3 trillion’ worth of pension assets is going into the startup ecosystem.

A steady flow will likely continue to make its way into startups from pension funds in the years ahead, said Yuma Saito, president of Deloitte Tohmatsu Venture Support. Interest is especially high in the long-term potential of scientific and engineering advances developed in the country’s universities, he said.