MS&AD Ventures Inc., the corporate venture capital (CVC) arm of MS&AD Insurance Group, has increased its fund size by $100 million, bringing the total to $400 million (approximately JPY 60 billion). This expansion aims to support innovative startups in areas such as Insurtech, Fintech, AI, Sustainability, Mobility, and Life & Health.
Let’s dive into this exciting milestone for the venture capital firm shaking up the global insurance market.
Founded in October 2018, MS&AD Ventures Inc. is the corporate venture capital arm of MS&AD Insurance Group Holdings, making it Japan's first insurance-backed CVC. The company is headquartered in Menlo Park, California, strategically positioning itself to identify and make early entryways into promising startups within Silicon Valley’s innovation ecosystem.
MS&AD Ventures focuses on early-stage investments, targeting sectors such as Insurtech, Fintech, Artificial Intelligence, Mobility, Sustainability, and Life & Health. The firm aims to advance MS&AD’s global business strategy by adopting cutting-edge technologies and fostering collaboration with innovative startups.
Jon Soberg, CEO and Managing Partner, and Jack Toyama, President, Managing Partner, and Director, currently comprise the top-tier leadership, with Yuki Sakurai and Mark Yanagisawa both acting as Senior Managers of Strategic Partnerships and Senior Associates.
The CVC is a 100% subsidiary of MS&AD Insurance Group Holdings, headquartered in Tokyo, Japan, and led by Shinichiro Funabiki, President and Group CEO. Since its inception, MS&AD Ventures has invested in 112 startups to foster growth and enable the development of next-generation solutions.
Some notable beneficiaries of the fund include:
The firm partners with startups that can synergize with MS&AD Group's core insurance operations and help it gain a foothold in new markets. This dual focus has, by necessity, led MS&AD to grow into its role as one of the leaders in leveraging innovative solutions to persistent industry challenges.
The new capital allocation aims to enhance cross-group initiatives, including developing innovative insurance products and strategic alliances with startups. According to the company’s leadership, the increased fund size will enable faster adoption of technologies that offer both financial returns and social impact, reinforcing MS&AD’s commitment to sustainable growth.
In December 2024, MS&AD Ventures Inc., the corporate venture capital arm of MS&AD Insurance Group Holdings, announced a significant expansion of its fund size. The firm increased its investment pool by $100 million, raising the total under management to $400 million (approximately JPY 60 billion*).
This marks a strategic effort to accelerate investments in early-stage startups across the CVC’s strategic areas of activity.
The decision to increase the fund reflects the firm’s strong performance and growing opportunities. A spokesperson for MS&AD Insurance Group stated, “Considering MS&AD Ventures’ portfolio companies are growing well, and MS&AD Ventures has tons of good opportunities to invest in by expanding our business operation, MS&AD Insurance Group Holdings, Inc. has decided to increase the fund amount.”
This additional capital will enable MS&AD Ventures to drive innovation, strengthen the Group’s insurance profitability, and transform its business through new market entries and startup collaborations.
The firm emphasized its commitment to business creation, adding, “We will accelerate business creation activities in various fields by utilizing the knowledge we have accumulated through our investment activities regarding innovative businesses.”
*US $1 = 150 yen
The addition of a fifth $100 million fund, MS&AD Ventures V, is only one among many signals highlighting the optimistic and aggressive footing MS&AD is on. However, it serves as an impressive capstone on an exciting year for the firm.
In March 2024, the CVC participated in a $25 million Series C funding round for Vouch, a business insurance provider tailored to startups. By July 2024, the firm had celebrated 12 successful portfolio exits, reflecting the success of its long-term strategy.
Additionally, its portfolio companies generated over $100 million in revenue during 2023, underlining the financial viability of its investments.
Among its standout portfolio members is Artificial Labs, a UK-based startup specializing in AI-automated tools for insurers. MS&AD had previously participated in a £8M Series A+ funding round for the company, led by Augmentum Fintech, one of Europe’s top publicly-listed fintech funds.
MS&AD Ventures' fund expansion and strategic investments showcase its bold vision for innovation and transformation in the insurance industry. With a strong portfolio and focus on emerging technologies, the company is poised to shape the future of Insurtech and beyond, driving meaningful progress in a rapidly evolving global market.