The Future with ZVC: Supporting Startups and Driving Co-Creation with LY Group
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An interview article featuring ZVC’s capitalist has been published on “LY Stories,” a platform operated by LY. Please view the Japanese article on the LY website.
（https://www.lycorp.co.jp/ja/story/20250116/zvc.html）
“The Future with ZVC: Supporting Startups and Driving Co-Creation with LY Group“
Z Venture Capital (ZVC), the corporate venture capital (CVC) arm of the LY Group, is shaping the future of innovation and entrepreneurship. In January 2025, ZVC launched its second fund, ZVC Fund II, with 30 billion yen under management. With this, ZVC continues to invest in promising startups at all stages worldwide, providing not just funding but also strategic support and knowledge sharing.
Since 2024, ZVC has also hosted “ZVC Connect,” a pitch event designed to foster collaboration and co-creation between startups and the LY Group. These events have already led to partnerships that are driving meaningful innovation across various industries.
In a crowded field of VCs and CVCs, what makes ZVC stand out? What unique strengths and synergies are being created through its approach?
As generative AI continues to reshape industries and society, what mindset should entrepreneurs adopt to stay ahead?
We sat down with three key leaders to get their thoughts on these questions and explore how ZVC is empowering the next generation of innovators.
Table of Contents
- ー ZVC’s Key Advantage: Leveraging LY’s Assets
- ー Market Trends from a Venture Capital Perspective
- ー What ZVC Looks for in Investments
- ー Shaping the Future Together with Entrepreneurs
Principal
At Yahoo (now LY Group), gained valuable experience in search and display advertising planning, marketing optimization for company-wide promotions, and financial analysis and business planning for the media division. Joined ZVC in 2018, focusing on investments in the fintech and SaaS sectors.
Investment Manager
Started a career in business planning and management at GE (General Electric), followed by supporting business growth and new business development at IGPI (Industrial Growth Platform). Joined ZVC in 2022, specializing in investment operations within the commerce sector.
Investment Manager
Gained extensive experience in M&A and corporate legal affairs as a lawyer at Nishimura & Asahi Law Firm. Later, worked at YCP Solidiance, providing consulting for new business development and managing PE investment operations. Joined ZVC in 2023, with a current focus on investments in the media and entertainment sector.
ZVC’s Key Advantage: Leveraging LY’s Assets
—To start, what sets ZVC apart from other venture capital firms?
Yuda:
ZVC stands out with several unique strengths that set us apart from other VCs.
One of our biggest advantages is the ability to tap into LY Group’s extensive resources. As LY operates a wide range of internet businesses, we gain access to valuable industry expertise, opportunities for collaboration, and the chance to build impactful partnerships. This connection is a key differentiator for ZVC.
Another strength is the scale of our funds. After the success of our 30-billion-yen ZVC Fund I, we launched ZVC Fund II in January 2025, also at 30 billion yen. This allows us to provide consistent and meaningful support to startups, demonstrating our commitment as a long-term partner.
Our global reach is also a major asset. With offices in Tokyo, San Francisco, and Seoul, we actively invest across regions. The U.S. often leads in areas like AI technology, while Korea is a hub for content and consumer innovation.
This global presence gives us access to cutting-edge trends and insights from key markets, providing a strong foundation to support startups and help them grow.
Uchimaru:
When it comes to assets, we have the unique advantage of collaborating not only with LY but also with the SoftBank Group and NAVER Group. This enables us to approach business planning from a broader, more strategic perspective. Additionally, ZVC’s small, agile team allows us to quickly share information, even on global initiatives, which I believe is another key strength.
— ZVC has a long history of active investment, dating back to 2012, even before the merger of LINE Ventures and YJ Capital. What have been the key turning points in ZVC’s journey?
Uchimaru:
The biggest milestone for us came in 2021 with the establishment of the former Z Holdings. The merger of the two venture capital firms significantly expanded the scale and scope of our investment activities.
Yuda:
The merger not only increased the size of our team but also expanded our portfolio and the scale of our funds. Collaboration between our global offices has become stronger, significantly enhancing our ability to gather and share information.
For example, the former YJ Capital was deeply rooted in the Japanese market, while LINE Ventures had a strong presence in international markets. By combining these strengths, we are now better equipped to support startups with global ambitions and help them scale their businesses internationally.
— In 2024, you introduced “ZVC Connect,” an event aimed at fostering collaboration and co-creation between startups and the LY Group. What was the inspiration and purpose behind this initiative?
Yuda:
At its heart, this initiative was born from our desire to act as a bridge between the LY Group and startups, which inspired the creation of “ZVC Connect.”
For the LY Group, collaborating with external partners brings fresh ideas and assets that can drive transformative growth and innovation.
For startups, partnering with a large organization like the LY Group, with its vast resources and reach, offers a powerful opportunity to accelerate growth. However, many startups face challenges in navigating the right channels or timing to establish such connections.
With “ZVC Connect,” we aim to break down these barriers, making collaboration more accessible and opening the door to impactful partnerships.
Entrepreneurs (front row) and capitalists (back row) who participated in the highly successful ZVC Connect Vol. 2
Pitch Event for Collaboration and Co-Creation Between Startups and the LY Group – ZVC Connect Vol. 1 Held
— What key areas should startups prioritize when delivering their pitches at “ZVC Connect”?
Kameoka:
With various LY Group companies participating in ZVC Connect, I encourage startups to focus on highlighting their collaboration proposals. We understand, however, that it can be difficult for external parties to fully grasp the specific needs and challenges within the LY Group. That’s where we come in—we’re here to help startups craft compelling and effective collaboration proposals by leveraging our insights into the group’s operations and priorities.
ZVC Connect attracts many talented young entrepreneurs
Uchimaru:
When proposing collaborations, I encourage startups to focus on the “win-win” aspect. While it’s natural for proposals to emphasize the benefits for the startups themselves, they become far more compelling when they clearly outline the value they can bring to the LY Group as well.
At ZVC Connect, our role is to support startups in crafting well-rounded, mutually beneficial proposals. We strive to help shape collaborations that are uniquely possible with ZVC’s guidance and involvement, ensuring they create meaningful impact for both sides.
The latter part of ZVC Connect saw dynamic interactions between startups and LY employees, sparking vibrant and engaging exchanges.
Market Trends from a Venture Capital perspective
— The rise of generative AI has brought significant transformations to society and the business world. What trends are we currently seeing in the startup ecosystem as a result?
Kameoka:
The impact of generative AI has been immense. Since around 2023, there’s been a significant rise in startups aiming to build businesses in this space. However, developing a large language model (LLM) from the ground up is incredibly challenging, especially when competing with well-established players in Europe and the U.S.
As a result, many entrepreneurs are shifting their focus toward harnessing generative AI to create innovative use cases. This includes developing applications and services such as AI-powered chatbots or image generation tools tailored to specific industries or needs.
Uchimaru:
In the U.S., the majority of startups seeking funding are focused on generative AI, making it increasingly challenging for companies in other sectors to secure investment. While this trend hasn’t become as prominent in Japan yet, I believe AI adoption will continue to grow. In the future, it’s likely that AI will seamlessly operate in the background of many products and services, often unnoticed by users, becoming an integral part of everyday experiences.
— What trends are you currently noticing within your areas of focus in ZVC’s investment activities?
Uchimaru:
In the e-commerce sector, entering the field has become significantly easier than it used to be. This shift is largely driven by generative AI, which has greatly simplified many of the detailed tasks involved in setting up a website and launching a business. I also believe that the rise of AI agents will further accelerate the digitization of B2B e-commerce, an area that has traditionally lagged behind in adopting digital solutions.
Kameoka:
In the media sector, content-focused startups are currently experiencing strong growth. Notable IPOs, such as those of Cover and ANYCOLOR, which are leaders in the VTuber entertainment space, have made a significant impact with their substantial public offerings.
Japanese content, including manga and anime, continues to enjoy immense popularity in global markets, presenting excellent opportunities for international expansion. Additionally, as Gen Z increasingly spends time engaging with vertical, short-form content on platforms like TikTok, there is growing interest in business models that reformat existing content into vertical and short video formats to meet this demand.
Yuda:
In fintech, household and asset management remain key areas of focus, driven by growing societal concerns about the future, including global inflation and stagnant wages in Japan. At the same time, advancements in technologies such as digital wallets, cryptocurrencies, and large language models (LLMs) offer significant potential to address these challenges.
We are likely on the cusp of a new era where AI will play a central role in assisting with decision-making and streamlining operations related to savings, investments, and personal finance.
What ZVC Looks for in Investments
— What are the key factors in ZVC’s investment decisions?
Uchimaru:
We focus on areas with the potential to drive significant industrial transformation and seek out entrepreneurs with bold aspirations to create such impactful changes. While there are many exceptional entrepreneurs leading outstanding businesses, we can only invest in a select few. For this reason, we prioritize opportunities that demonstrate the potential to create large-scale, transformative impact.
Yuda:
The former Yahoo was built on a “user-first” philosophy, while the former LINE prioritized delivering “WOW” experiences. Inspired by these values, we are especially eager to support entrepreneurs dedicated to creating services that offer exceptional convenience and delight for users.
— Based on this mindset, can you share any successful examples from the projects you’ve handled so far?
Kameoka:
We maintain regular communication with LY’s business units to stay informed about their ongoing projects, challenges, and needs. When one of our portfolio startups aligns with these areas, we often facilitate connections to explore potential collaborations.
Startups sometimes face difficulties in identifying or articulating bottlenecks, such as resource or funding challenges, when working with LINE Yahoo. In these cases, we establish a casual, consultative relationship to bridge the gap, enabling LY to provide the necessary support and paving the way for successful partnerships.
— ZVC truly serves as a bridge, doesn’t it?
Uchimaru:
From a VC perspective, achieving a return through an IPO is often seen as a measure of success. However, I also believe that success can be defined by meaningful business collaborations that drive LY’s operations forward. From a synergy standpoint, this too represents a significant achievement.
Shaping the Future Together with Entrepreneurs
— Based on your experiences, what common traits do successful entrepreneurs share?
Kameoka:
I believe that “speed in decision-making and execution” is absolutely critical.
We frequently receive monthly progress updates from entrepreneurs, and there’s a noticeable difference in how quickly they think, make decisions, take action, and validate their approaches. Entrepreneurs who consistently report a high volume of actions and outcomes, even when faced with challenges, tend to demonstrate remarkable resilience and the ability to overcome obstacles.
These companies also excel in building strong teams. Effective hiring is a key factor in their success and plays a vital role in driving their growth.
Yuda:
For me, “staying hungry” is essential. I’ve observed that individuals who are constantly pursuing business opportunities, seeking out talent, and actively asking for feedback on their daily efforts tend to grow and evolve at an impressive pace.
Masayoshi Son and Yusaku Maezawa are perfect examples of this mindset. Despite their incredible success, they remain driven by a desire to achieve even more. Their willingness to embrace new challenges and their insatiable hunger for growth are truly inspiring.
Uchimaru:
For me, “integrity” is what truly stands out. Entrepreneurs who engage sincerely with every stakeholder and approach their work with genuine authenticity are incredibly compelling.
While it’s possible for some to find success without integrity, when it comes to saying, “let’s work together,” it’s always the individuals with integrity who leave the strongest impression and earn that trust.
— Finally, based on your experience, do you have any advice for entrepreneurs?
Yuda:
As a student, I was profoundly influenced by the rise of the iPhone and social media, which sparked my passion for creating internet services. That passion has remained with me, and I’m still deeply motivated to contribute to businesses that use IT to make society more convenient and address social challenges. Being part of such impactful efforts continues to inspire me.
Uchimaru:
In fact, my mother started her own business in her late 50s, and one of my closest friends is also an entrepreneur. It’s from my deep admiration for ambitious individuals like them that I’ve found my way into this role.
I understand the immense struggles and pressures entrepreneurs face, and I’m committed to doing everything I can to support them and stand by their side throughout their journey.
Kameoka:
During my previous role as CFO for a portfolio company, I experienced firsthand the immense pressure that business owners face. That experience gave me a deep appreciation for entrepreneurs, and it’s why I’m so passionate about supporting them as a VC.
I aim to fully leverage LY’s resources, collaborate with companies with brilliant ideas, and work together to make a meaningful impact on the world. Let’s join forces to bring those visions to life.
If you’re reading this and would like to connect or consult with someone at ZVC, don’t hesitate to reach out. I’d be happy to hear from you!
(Translation by ZVC)
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