Sumitomo Mitsui Banking Corp has joined forces with a U.S. venture capital firm to back fintech startups.
The Tokyo headquartered mega-bank is linking up with Entrepreneurs Roundtable Accelerator, (ERA) to establish a fund backing financial technology startups.
Though the fund's total capitalisation has not been disclosed, Sumitomo Mitsui Banking Corp (SMBC) says it will commit up to $3 million and become the major shareholder.
Decade Long Relationship
According to an article in the «Nikkei Asian Review» SMBC will send staff to ERA, headquartered in New York City (NYC), to collect data on cutting-edge technology that could be applicable to developing products and services.
The bank will also provide funding and other support to firms planning to expand to Japan. The investment vehicle will operate for 10 years.
Extensive Established Network
New York based ERA combines seed capital and hands-on help to impact the trajectory of early-stage startups.
It runs NYC's largest accelerator program and boasts a mentor network with more than 300 expert investors, technologists, product specialists and more, across all major industries represented in NYC.
