In a statement posted on its website on Tuesday, 500 Startups Japan confirmed that it led the round through a special purpose vehicle (SPV), a special fund that invests only in Series B of SmartHR.
Other participants in the fundraising include Tokio Marine & Nichido Fire Insurance, Nikko Co Ltd, and CVC, which invested in SmartHR through 500 Startup Japan’s SPV.
James Riney, head, 500 Startups Japan, said, they have decided to introduce the SPV to participate in the fundraising without having to account for the entire amount raised.
The SPV allowed other investors to put in $1 million to $2 million, with SmartHR not having to communicate to each of the investors but to 500 Startups Japan alone.
“500 Startups Japan will continue to introduce various new initiatives like the SPV to support Japanese startups,” Riney said.
SmartHR Inc. develops the cloud-based software to automate the procedure of social insurance and employment insurance. Based in Tokyo, SmartHR was formerly known as KUFU, Inc. It was founded on January 23, 2013.
In 2015, SmartHR launched the cloud-based personnel and labor management platform for which clients do not need to install servers or other devices. Some 5,000 companies have adopted it.
It was not 500 Startup Japan’s first participation in SmartHR’s fundraising. According to a TechinAsia report, 500 Startups backed SmartHR’s Series A fundraiser in August 2016.
SmartHR said the funds raised will be used to further develop SmartHR and finance hiring and marketing activities, among others.