Venture Kickoff: Keisuke Honda’s $100M Fund Aims to Score Big for Japanese Startups

Keisuke Honda, once a stellar football player and now a Japanese angel investor, is currently in discussions to secure funding targeting approximately ¥15 billion (equivalent to $100 million) for his debut fund, known as the X KSK Fund.

With aspirations of contributing to the Japanese startup ecosystem, the X KSK Fund is designed to support around 30 startups in Japan. In an interview, Honda revealed the fund’s objective of identifying at least one startup within this portfolio that will ultimately achieve an impressive valuation of $10 billion. 

In contrast to the United States, where numerous star athletes have become influential figures in venture capital, Honda’s venture into angel investing breaks away from the norm. Notably, the 37-year-old former AC Milan midfielder has previously delved into startup investments, co-founding The Dreamers VC with Hollywood actor Will Smith in 2018. This venture capital firm has invested in projects such as Elon Musk’s Neuralink Corp and The Boring Co.

Honda sheds light on the advantages of his transition, acknowledging, “I realized I was getting much better deals because people know who I am from my career as a football player.” 

In a landscape where celebrities in Japan tend to maintain discretion about their financial matters, Honda, with his football background, encounters minimal competition from other sports figures. Honda notes that he is expressing his unique position in Japan’s startup investment landscape, “I have no rival here. I’m in a very fortunate place.” 

This comes as Honda becomes part of the increased investment flow into Japan’s historically overlooked startup ecosystem. Prime Minister Fumio Kishida’s comprehensive five-year plan, injecting more funds into startups from various sources, has propelled investments in the sector to record highs in 2022. 

Although the past year experienced a decline in deal value, the startup scene witnessed a surge in new players, with 61 new venture funds launched in the country during the first half of 2023, according to data from Japanese startup data firm Initialise, marking a 25% increase from the previous year.

While considering the establishment of his fund in the US, Honda ultimately directed his focus to Japan, inspired by Prime Minister Kishida’s plan to boost startup investments. His decision was further influenced by Honda’s prior successful investments in Japanese companies that have subsequently gone public. His KSK Angel Fund has celebrated profitable exits from companies like Makuake Inc. and has actively invested in others, including Luup KK and Layerx KK.

Leveraging his connections in the US, Honda aims to assist founders in raising funds and establishing a presence in the world’s largest consumer market. Honda envisions identifying high-potential startups hungry for growth and transforming them into global entities.

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