(The Japan News)
The government plans to lift regulations that have required domestic venture capital funds to invest at least 50% of the money they raised in Japanese start-ups, The Yomiuri Shimbun has learned.
According to sources, the new system could be introduced as early as this summer.
A venture capital fund is a type of high-risk, high-return pooled investment fund that lets investors buy equity stakes in early-stage start-ups struggling to secure financing. The special provision is expected to increase cashflow to domestic start-ups by encouraging foreign investors, who have been cautious in light of the “50 percent rule,” to invest in such funds.
