Japan’s Mori Building Launches $63M Venture Fund With Spiral Capital

Mori Building has established a JPY 10 billion ($63 million) corporate venture capital fund, part of a broader push by the Tokyo developer to accelerate innovation and strengthen the city’s global competitiveness.

The Mori Building Innovation Fund Investment Limited Partnership, formed with Japanese VC firm Spiral Capital, was set up in February with a 10-year lifespan, the companies said Tuesday in a release. The initiative expands Mori Building’s long-running efforts to cultivate an innovation ecosystem anchored in its mixed-use complexes, positioning the fund as a new capital engine alongside its existing incubation platforms.

The developer said the vehicle would invest in both Japanese and overseas startups, with portfolio companies gaining access to Mori Building’s “Hills” developments — including Azabudai Hills, Toranomon Hills and Roppongi Hills — which will serve as real-world testing grounds for new technologies and services.

“The fund utilises the creative environments and communication platforms within each Hills complex, including Tokyo Node in Toranomon Hills,” said the builder led by president and CEO Shingo Tsuji. “This cross-disciplinary approach is expected to generate new value that cuts across the fields of business, technology and culture, ultimately to create a broad stage for the debut of new companies and experiences.”

Dual Engine Revs

Mori Building described the fund and its incubation facilities as a “dual engine” strategy, combining capital deployment with on-the-ground implementation to accelerate the commercialisation of new ideas. Through this model, startups can pilot their offerings in high-density urban settings, tapping into the developer’s tenant base, visitor traffic and operational infrastructure to refine products before scaling, the company said.

Tokyo-based Spiral Capital backs early-stage startups, with a strategy centred on what it calls X-Tech — the integration of digital technologies with traditional industries like finance, logistics, real estate and infrastructure. The firm was spun out of a venture unit within retailer CCC Group, establishing itself as a standalone VC platform in 2019 under CEO Tomokazu Okuno.

Spiral’s assets under management stand at JPY 75 billion across general and corporate venture capital vehicles. The new fund will target a broad set of themes tied to urban development, including smart buildings, energy optimisation, mobility systems, AI, robotics and cybersecurity, alongside consumer-facing sectors like tourism, entertainment and media.

A further focus is on platforms that enable cross-industry collaboration, research commercialisation and global expansion, reflecting Mori Building’s aim to position Tokyo as a nexus for international innovation flows. The developer cited rankings that place the Japanese capital just ninth out of 48 global cities in the startup sector.

“For Tokyo to succeed in the fiercely competitive global landscape and continue attracting people, goods, capital and information from around the world, the city must perpetually foster innovation and drive the evolution of its urban society and industries,” Mori Building said.

Beyond Development

The innovation fund underscores a shift by Mori Building to extend its influence beyond property development and into ecosystem building, using its physical assets as platforms for economic and technological activity.

That strategy was highlighted by last October’s completion of the Azabudai Hills project, a landmark mixed-use complex designed as a “city within a city” in Tokyo’s Minato ward, integrating offices, residences, retail and cultural facilities.

In the making for 35 years in collaboration with 300 rights holders, Azabudai Hills is fully complete with an additional 970 residential units, a comprehensive east-west and north-south road network and a barrier-free underground pedestrian network linking two subway stations.

In 2023, Mori Building opened Japan’s tallest office tower at Azabudai Hills. The 330 metre (1,082 foot) Mori JP Tower dwarfs the previous tallest office building, the 255 metre Mori-built Toranomon Hills Station Tower.

The developer has also been expanding its overseas footprint, including by acquiring a stake in New York’s One Vanderbilt tower, as it looks to export its urban development model while reinforcing ties between Tokyo and global markets.