> ## Content Index
> Fetch the complete content index at: https://www.fintechobserver.com/llms.txt
> Use this file to discover other available public pages before exploring further.

# Tokyo Selects Daiwa Corporate Investment for JPY 5bn Crossover Fund to Combat Premature IPOs
- URL: https://www.fintechobserver.com/tokyo-selects-daiwa-corporate-investment-for-jpy-5bn-crossover-fund-to-combat-premature-ipos/
- Published: 2026-10-25T02:17:35.000Z
- Updated: 2026-10-25T02:17:35.000Z
- Author: Norbert Gehrke
- Tags: venture capital, tokyo metropolitan government, startups, IPO

The Tokyo Metropolitan Government (TMG) has selected Daiwa Corporate Investment as the candidate manager for its newly established "TOKYO Crossover Fund," an initiative aimed at providing continuous capital to high-growth enterprises from pre-IPO through post-listing stages.

Under the scheme, TMG plans to commit ¥5 billion to the fund within the current fiscal year following final contractual negotiations, alongside capital from private-sector investors. Daiwa Corporate Investment, a wholly owned venture capital subsidiary of Daiwa Securities Group, will both manage and co-invest in the vehicle, which will primarily target equities of unlisted growth companies.

![](https://storage.ghost.io/c/46/cb/46cbd57f-e0e8-41a4-a1e2-710103a4267b/content/images/2026/10/Gemini_Generated_Image_t7tsl1t7tsl1t7ts.jpeg)

The crossover initiative is designed to address a persistent structural issue in Japan's startup ecosystem: a tendency toward small-scale, premature initial public offerings. Driven by an emphasis on early public listings and quick profit realization, many emerging Japanese firms go public before achieving sufficient scale. Consequently, they often fail to meet the liquidity and market capitalization thresholds required by institutional investors, causing post-listing enterprise growth to stagnate.

## Sign up for Japan FinTech Observer

Cutting through the noise of Japanese Finance & FinTech

Subscribe 

Email sent! Check your inbox to complete your signup. 

No spam. Unsubscribe anytime.

The fund's launch also comes ahead of tightened listing maintenance criteria scheduled for the Tokyo Stock Exchange’s Growth Market starting in March 2030\. By deploying a crossover investment model that bridges late-stage private equity and early-stage public markets, TMG intends to cultivate globally competitive companies while enhancing capital market dynamism.

Daiwa Corporate Investment was selected following a screening process that opened in June 2026\. Candidate proposals underwent external expert due diligence before being finalized by a dedicated selection committee in September. Led by Representative Shinichi Seto, the Tokyo-based firm traces its investment roots back more than four decades to its predecessor, Nippon Investment & Finance.

The transaction forms part of Strategy 12 ("Global Financial City Tokyo") under the metropolitan government's long-term "2050 Tokyo Strategy," which seeks to bolster Tokyo’s standing as an international financial center.

---

[Tokyo Metropolitan Government Completes Capital Deployment into Specialized Deep-Tech FundsIndicating a strong desire to operationalize the "2050 Tokyo Strategy," the Tokyo Metropolitan Government (TMG) finalized its second major capital deployment under the GX Innovation Promotion Support Fund at the beginning of June. This milestone signals a sophisticated evolution in Tokyo’s industrial policy, moving to address the acute liquidity![](https://storage.ghost.io/c/46/cb/46cbd57f-e0e8-41a4-a1e2-710103a4267b/content/images/icon/Newsletter-Small-ae56a3b0-f9c4-4bb7-b854-f3d9aec31842.png)Japan FinTech ObserverNorbert Gehrke![](https://storage.ghost.io/c/46/cb/46cbd57f-e0e8-41a4-a1e2-710103a4267b/content/images/thumbnail/TMG-5ab96e6c-cccd-451b-af16-105ee4e41848.png)](https://www.fintechobserver.com/tokyo-metropolitan-government-completes-capital-deployment-into-specialized-deep-tech-funds/)