Daiwa Securities unit partners with Australian VC to launch fund for AI, quantum startups

Daiwa Corporate Investment, a subsidiary of Japan's Daiwa Securities Group, has announced a strategic partnership with an Australian venture capital firm to establish a new investment fund targeting high-growth startups in Australia, with a particular focus on quantum technology, artificial intelligence, and food tech.

The collaboration marks a significant step in Daiwa's international expansion strategy, as the Japanese financial group seeks to gain exposure to cutting-edge innovation emerging from Australia's technology ecosystem. By teaming up with a local VC partner, Daiwa aims to leverage on-the-ground expertise and deal flow in a market that has become increasingly attractive for institutional investors seeking early-stage opportunities in deep tech and sustainability-driven sectors.

The fund will concentrate on backing leading Australian companies, with quantum technology and food tech highlighted as key areas of interest. While the exact size of the fund has not been disclosed, the initiative underscores the growing appetite among Japanese financial institutions for cross-border venture investments that diversify their portfolios beyond traditional asset classes.

Industry observers note that the partnership reflects a broader trend of Asian financial groups channeling capital into Australia's innovation landscape, which has seen a surge in government-backed research and commercial activity in quantum computing, advanced materials, and agri-food technologies. For Daiwa, the move aligns with its long-term strategy to build a global venture investment platform capable of identifying transformative technologies early.

The collaboration also signals confidence in Australia's ability to produce globally competitive startups, particularly in fields where the country has established research leadership. As quantum technology moves closer to commercial application and food tech gains urgency amid global supply chain and sustainability challenges, the fund is positioned to play a role in accelerating the growth of startups in these domains.