Mizuho Securities is set to capitalize on the global surge in popularity of Japan’s low-budget animation films by launching a new investment fund aimed at boosting financing for the sector.
The Tokyo-based brokerage firm plans to establish the fund by the end of this year, initially securing between ¥1.5 billion ($9.5 million) to ¥2.5 billion for investment purposes. Each movie financed by the fund is expected to receive approximately ¥800 million in funding.
This initiative represents a departure from the traditional model where anime movies have primarily been funded by individuals within the industry. Mizuho’s move comes amidst increasing interest from global investment firms in Japan’s pop culture. In May, Blackstone emerged as the buyer of manga company Infocom, underscoring this trend.
The fund will target investors including financial institutions and corporations, with unit investments starting at about ¥50 million. Mizuho also aims to attract overseas investors to participate in the fund, reflecting the international appeal of Japanese animation.
Shuichiro Tomihari, Director at Mizuho’s global investment banking division, highlighted the growing global interest in Japanese animation. He emphasized the fund’s role in creating opportunities for third-party investment and revitalizing the animation industry.
The Japanese government has also expressed support for the country’s pop culture industries, recognizing them as significant economic assets comparable to industries like steel and semiconductors. Prime Minister Fumio Kishida’s “New Capitalism” proposals in June underscored this sentiment.
Gaku Nakatani, director of the animation “Forest of Piano” and a former DreamWorks Animation staffer, noted the potential of additional institutional funding to improve animator standards of living. He highlighted the increasing popularity of Japanese animation abroad and predicted further demand growth.
According to data from the Association of Japanese Animations, Japan’s anime market nearly doubled in size to ¥2.93 trillion over the past decade. However, financing movies still carries inherent risks. Only a small percentage of Japanese films achieve significant box office success, with just 34 films earning over ¥1 billion in 2023.
The Mizuho fund will be developed in collaboration with Questry, a blockchain securities startup, and Royalty Bank, which facilitates royalty transactions. Tomonobu Ibe, founder and CEO of Questry and a former Goldman Sachs banker, anticipates a substantial impact from investor funds, potentially enhancing production scale and creating a positive cycle of improved compensation for industry workers.
In conclusion, Mizuho Securities’ venture into funding Japanese animation films reflects a strategic move to capitalize on global interest and foster growth in a culturally and economically significant sector.
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