SMBC Edge Deploys ¥3 Billion into Five Startups in Initial Push to Revitalize Japanese Innovation
SMBC Edge, a strategic subsidiary of the Sumitomo Mitsui Banking Corporation (SMBC) Group, has executed approximately ¥3 billion in capital investments across five domestic startups. This marks the first major deployment of capital from the “SMBC Edge Fund I, L.P.,” which was established in October 2025 to accelerate the creation of new industries in Japan.
Operating under the mission of “Realizing Japan’s regrowth through new industry creation,” SMBC Edge is positioning itself as more than a passive investor. The firm aims to bolster Japan’s industrial competitiveness by targeting sectors critical to national productivity, including next-generation space development and living environment innovation.
Strategic Portfolio Construction
The initial cohort of five portfolio companies represents a diverse cross-section of deep tech and service platforms. The recipients of the investment are:
- Interstellar Technologies (Space/Rocket Development)
- BALLAS (Construction/Manufacturing DX)
- MeetsMore (Service Marketplace)
- MW (Material Science/Manufacturing)
- VALANCE (Technology/Infrastructure)
These investments are aligned with SMBC Edge’s broader thesis of addressing Japan’s structural social challenges, specifically population decline and labor shortages, while facilitating global expansion for domestic firms.
Hands-On Operational Support
SMBC Edge is differentiating its model by integrating investment capital with robust business development functions. The firm has committed to a hands-on engagement style, deploying specialized teams to assist portfolio companies with business development (BizDev), human resources (HR), and sales strategy.
"SMBC Edge aims to work closely with its portfolio companies to address a wide range of management challenges through an integrated collaboration between its investment and business development teams," the company stated. This support structure leverages the extensive network of the wider SMBC Group to bridge startups with established corporations and global markets.
Organizational Expansion
Reflecting its aggressive growth strategy, SMBC Edge has rapidly expanded its internal capabilities. As of February 2026, the firm employs a diverse team of 19 professionals ranging from investors and researchers to consultants.
Geographically, the firm is moving to decentralize its operations beyond its Tokyo headquarters. A permanent presence was established in Osaka in January 2026, with further plans to open offices in Kobe, Fukuoka, and Singapore. The Singapore expansion highlights the firm's intent to serve as a gateway connecting the Japanese ecosystem with Asian and global markets.
About SMBC Edge
Established in 2025 and led by President Hiroaki Yoshikawa, SMBC Edge is the business development and investment arm of the SMBC Group dedicated to the startup ecosystem. The company focuses on venture investment, open innovation consulting, and ecosystem connectivity between VCs, academia, and regional governments.
Norbert Gehrke
