Keisuke Honda, a former professional footballer and a unique figure in Japan as an athlete-turned-investor, is currently negotiating to secure up to ¥15 billion (approximately $100 million) for his inaugural venture fund focused exclusively on Japanese startups.
The X&KSK Fund, spearheaded by Honda, aims to invest in around 30 startups in Japan, with the ambition of nurturing at least one to achieve a $10 billion valuation. Honda, 37, attributes his investment success to the reputation he built as a renowned soccer player. “My football career has opened doors to some exceptional investment opportunities,” he remarked.
Unlike in the United States, where numerous sports celebrities like Andre Iguodala, Shaquille O’Neal, LeBron James, and Serena Williams have transitioned into successful venture capitalists, Honda faces minimal competition in Japan, a country where public figures typically avoid discussing their financial endeavors. “In this space, I’m without rivals, which is an incredibly fortunate position,” Honda stated.
Honda’s venture into investing aligns with a growing interest in Japan’s startup sector. In 2022, investments in startups soared to new heights, bolstered by Prime Minister Fumio Kishida’s five-year strategy to redirect funds from the Government Pension Investment Fund into the startup ecosystem. Despite a recent dip in deal values, the venture capital scene is expanding, with 61 new funds launching in the first half of 2023, a 25% increase from the previous year, as reported by Initial, a Japanese startup data company.
Previously, Honda pursued investments in international startups, collaborating with U.S. celebrities like Will Smith and joining forces with other venture capitalists. His joint venture with Smith, the Dreamers VC, established in 2018 and supported by Nomura, has stakes in various companies, including Elon Musk’s Neuralink Corp. and The Boring Co.
Initially, Honda considered launching his new fund in the U.S., where investment opportunities and exits are more prevalent. However, the renewed emphasis on startups in Tokyo and Honda’s previous investment successes in Japan, including successful bets on companies like Makuake Inc., AnyMind Group Inc., Progrit Inc., Luup KK, and Layerx KK, swayed his decision to focus on Japan.
“I was inspired by the new five-year plan and saw a unique opportunity,” Honda said, praising Kishida’s initiative in supporting startups. He intends to use his U.S. connections to assist Japanese entrepreneurs in raising capital and establishing a presence in the American market.
Yusuke Murata, co-founder of Incubate Fund and a seven-year acquaintance of Honda, who has also invested alongside him, noted the significance of Honda’s support for Japanese entrepreneurs. “His involvement is crucial in driving more activity and spotlighting the developments in Japan,” Murata said. “We need to cultivate a greater acceptance of risk.”
As Japanese startups, from software outsourcing to innovative tech product creators, gear up for listings on Nasdaq, they aim to appeal to American investors and reduce their dependence on Japan’s conservative and aging market. Honda emphasizes the need for a global perspective. “Japanese startups have been too inward-looking. We aim to support the most ambitious ones and help transform them into global entities.”
