While Japan’s investment landscape remains vibrant and attractive – with more capital being deployed and new funds coming in – the exit market remains the biggest challenge for investors in the country, according to David Milstein, managing partner and head of Eight Roads Ventures Japan.
“We need more exit options and there is a need for investors and companies to create more M&A scenarios,” Milstein said in an interaction with DealStreetAsia.
Eight Roads, an active investor in Asia, is a global proprietary investment firm backed by Fidelity. It has invested nearly $6 billion into growing companies in the last 10 years through venture capital, principal investments, and real estate investments.
Its global presence spans Singapore, India, China, the US, Europe, and Japan. In 2012, Milstein re-joined Eight Roads Ventures to build the venture capital business for Fidelity in Japan.
Eight Roads Ventures launched its first Japan fund of 22 billion yen ($197 million) in 2015 and its second fund, Japan II Venture Fund, of 25 billion yen ($224 million) in 2017. The Japanese fund invests primarily at the growth stage with a focus on technology, fintech, healthcare, and emerging technologies.
This week, Eight Roads Ventures Japan led a Series A funding for Binfinity AG, operator of a digital asset exchange platform developed by a team of capital markets specialists in Tokyo.
In an interview, Milstein talks about the current investment landscape in Japan, his team’s approach in the country, and the challenges he sees.