I-nest Capital closes $42M second fund, adds third partner
What's the deal? Tokyo-based I-nest CapitalDealroom has a profile for this one. Try Dealroom → has completed the fundraising for its second venture fund, i-nest Fund II, at roughly ¥6.5 billion (about $42 million). The independent firm reached the total after an additional round following its first close on January 31, 2025.
Who backed it? The fund drew capital from existing limited partners plus new investors, chiefly corporations and financial institutions.
The strategy: I-nest Capital invests across three areas — new lifestyle and entertainment, value creation for existing industries (AX and DX), and innovative industries built on advanced technology. Fund II targets mainly domestic unlisted startups from seed to later stage over a 10-year term, with the option to extend by up to two years.
Why now? As venture funds grow larger in Japan and abroad, I-nest is deliberately staying mid-sized to stay closely involved with each company. "We chose to maintain a mid-size scale and engage deeply with each company," said representative general partner Takashi Yamanaka (translated from Japanese).
The hire: Tetsuya Nakajima joined as partner in June 2026, moving the firm to a three-partner structure alongside Yamanaka and Shigeo Tsukamoto. Nakajima previously handled corporate venture capital work at Colopl NextDealroom has a profile for this one. Try Dealroom → and produced more than 20 exits over roughly a decade. Each partner now holds investment responsibility and sits on the investment committee.
The track record: Fund I, raised in December 2019 at ¥7.3 billion, backed 45 companies and delivered 14 exits, including four IPOs — Cover, Secure, THECOO, and BasicDealroom has a profile for this one. Try Dealroom →. Fund II has already made 11 investments since its first close.
The signal: I-nest's decision to hold size rather than chase scale is a bet that discipline and long-term backing across all stages beat capital volume. As Japan's larger funds expand, mid-sized players are positioning depth of involvement as their edge.
Image credit: I-nest Capital
