DNX Ventures

DNX Ventures, formerly known as Draper Nexus Ventures, is a venture capital firm established in 2011. The firm has offices in Tokyo, Japan, and Silicon Valley, USA. DNX Ventures focuses on early-stage B2B startups, particularly in the Seed and Series A funding stages. The firm's main areas of investment include SaaS/cloud, cybersecurity, deep tech, sustainability, hardware, retail, and finance. By investing in startups in both Japan and the United States, DNX Ventures aims to connect these two unique and innovative markets, supporting founders in each region.

DNX Ventures has created more than 100 partnerships between startups and Fortune 500 companies by using its network of CXOs (Chief Experience Officers) and executives from large corporations. The firm is part of the Draper Venture Network and focuses on helping startups that aim to transform industries and improve the way people live and work. DNX Ventures prioritises building strong teams and organisations rather than supporting individual star players, with the goal of long-term industry transformation.

In Japan, DNX Ventures has worked with over 30 partner companies, helping them implement open innovation strategies and cultivate entrepreneurial organisations. It has supported over 200 partnerships between Japanese companies and startups, enabling the development of new business ideas and technologies.

The firm has raised multiple funds to support its investment activities. In March 2024, DNX Ventures announced the final close of two new Japan funds: Japan Fund IV, which raised $188 million, and Japan Annex Fund III, which raised $55 million, bringing their total to $243 million. These funds will be used to invest in early-stage B2B startups across a range of sectors, including cybersecurity, fintech, and retail tech.

DNX Ventures continues to actively invest in startups in both Japan and the United States. Some of its notable portfolio companies include Cylance, an AI-based cybersecurity firm, and Nauto, an autonomous driving and driver assistance system provider. The firm has also helped startups like Quollio Technologies, Shiftmation, and Li Industries raise significant funding.

DNX Ventures also offers support through various programs, workshops, and events designed to foster innovation. Initiatives like the SaaS Department and B2B Summits provide startups with the knowledge and resources they need to grow and succeed. DNX Ventures remains committed to driving innovation and supporting the growth of early-stage startups in both regions.

DNX Ventures, originally known as Draper Nexus Ventures, was established in 2011 as a venture capital firm with a focus on early-stage B2B startups. The firm was co-founded by Mitch Kitamura, Q Motiwala, and Tetsujiro Nakagaki. It set up offices in Tokyo, Japan, and Silicon Valley, USA, to bridge the two innovative markets of Japan and the United States. From its inception, DNX Ventures concentrated on supporting startups that aimed to solve significant challenges in industries such as SaaS/cloud, cybersecurity, deep tech, sustainability, hardware, retail, and finance.

In 2011, DNX Ventures began making its first investments, focusing on Seed and Series A startups. It became part of the Draper Network, a group of independent venture capital firms that share resources and networks globally. DNX Ventures set its primary goal to support companies that would help transform industries and improve the way people live and work.

By 2013, the firm had made significant investments in several key sectors, including AI, cybersecurity, and deep tech. DNX Ventures quickly established itself as a major player in Japan and the U.S., working closely with startups to help them grow and scale. In the early years, DNX Ventures fostered strong partnerships between startups and Fortune 500 companies, which became a central part of its strategy. By using its network of CXOs and corporate executives, the firm facilitated over 100 partnerships.

In 2017, DNX Ventures made notable investments in companies like Cylance, a cybersecurity startup that was later acquired by BlackBerry. The firm's focus on cybersecurity continued with investments in firms such as SafeBreach and Nauto, an autonomous driving and driver assistance system company. These investments further solidified DNX’s commitment to supporting emerging technologies.

Over the next few years, DNX Ventures expanded its portfolio to include companies involved in fintech, retail tech, and sustainability. By 2019, the firm had supported over 200 partnerships between startups and Japanese companies, assisting in developing new business ideas and technologies through open innovation.

In 2020, DNX Ventures raised its third venture capital fund, closing at $315 million. This marked a significant milestone for the firm, as it continued to expand its investments across Japan and the U.S. In the same year, DNX Ventures made key investments in deep tech and cloud infrastructure companies, including Quollio Technologies and CloudNatix.

Throughout 2021 and 2022, DNX Ventures continued its focus on B2B startups, particularly those in sectors such as AI, SaaS, and cybersecurity. The firm also actively supported startups working in sustainability, recognising the growing demand for environmentally responsible business solutions. DNX Ventures provided additional resources to its portfolio companies through workshops, events, and mentorship programs designed to foster innovation.

In March 2024, DNX Ventures announced the final close of two new Japan-focused funds: Japan Fund IV and Japan Annex Fund III. Together, these funds raised $243 million, furthering the firm's ability to invest in early-stage startups. These funds were designated to support startups in both Japan and the U.S., with a continued emphasis on areas like cybersecurity, fintech, and sustainability.

As of 2024, DNX Ventures has facilitated the growth of more than 250 startups and played a pivotal role in connecting Japanese and U.S. markets. Its latest investments include companies like Shiftmation and Li Industries, focusing on automation and sustainability technologies. The firm continues to leverage its vast network of corporate executives to help its portfolio companies form strategic partnerships and develop innovative solutions for large industries.

DNX Ventures has clear investment criteria focused on supporting early-stage B2B startups, particularly in the Seed and Series A stages. Their primary goal is to invest in companies that address significant challenges faced by large industries and enterprise businesses. The firm looks for startups with strong teams, scalable business models, and the potential to transform industries through innovation.

Key Investment Areas:

SaaS/Cloud: DNX Ventures is interested in startups that develop SaaS (Software as a Service) and cloud-based solutions. They focus on companies that can optimise and improve business processes like sales, marketing, operations, and customer service using data and technology.

Cybersecurity: The firm invests in cybersecurity startups that create solutions to protect companies from data breaches, cyber-attacks, and information leaks. DNX Ventures has a history of supporting innovative cybersecurity companies, such as Cylance, and continues to prioritise this sector due to the growing need for security across industries.

Deep Tech: DNX Ventures looks for startups working on advanced technologies like AI, machine learning, robotics, and autonomous systems. They are particularly interested in companies developing hardware or software that pushes the boundaries of technology, especially in areas like 5G and autonomous driving systems.

Sustainability: DNX Ventures actively seeks investments in startups that focus on sustainability, addressing environmental challenges, and helping businesses become more eco-friendly. This aligns with the growing demand for sustainable solutions across industries.

Retail Tech: The firm also invests in companies developing technology to improve the retail sector. This includes solutions for digital marketing, customer experience, and sales support.

Fintech: DNX Ventures supports startups in the fintech sector that provide digital financial services, streamline business processes, or develop new business models. This includes solutions for payments, transactions, and financial management.

DNX Ventures is committed to providing more than just financial support to startups. The firm believes in creating long-term value by working closely with the startups they invest in. Their approach is centred on helping companies grow through mentorship, strategic guidance, and connecting them to industry leaders.

Key Values:

Building Strong Teams: DNX Ventures believes that successful startups are built by strong teams, not just individual star players. They focus on helping startups build effective teams that can collaborate well and drive the business forward. The firm supports startups in recruiting talent, structuring teams, and developing leadership skills.

Partnerships and Networking: One of the key strengths of DNX Ventures is its vast network of corporate executives and industry leaders. The firm leverages this network to connect startups with Fortune 500 companies and global conglomerates. These partnerships provide startups with valuable opportunities for collaboration, growth, and access to new markets.

Industry Transformation: DNX Ventures aims to invest in startups that are working to transform industries. They look for companies that not only bring innovative products or services to the market but also have the potential to reshape the way industries operate. The firm supports startups that can create long-term value by solving major challenges faced by businesses.

Open Innovation: DNX Ventures promotes open innovation by helping startups and large corporations collaborate. The firm supports more than 30 partner companies in Japan, assisting them in adapting to changes and driving innovation through collaboration with startups. This approach allows both startups and established companies to benefit from shared knowledge and ideas.

Sustained Growth: DNX Ventures provides ongoing support to its portfolio companies, offering guidance on scaling their business, refining their strategy, and navigating industry challenges. The firm runs workshops, events, and mentoring programmes to help startups grow and succeed in the long term.

DNX Ventures' mission is to support early-stage B2B startups that are solving significant challenges and transforming industries. They aim to connect the innovative markets of Japan and the United States by investing in companies focused on sectors like SaaS/cloud, cybersecurity, deep tech, and sustainability. DNX Ventures is dedicated to helping startups build strong teams, form valuable partnerships, and drive long-term growth. Their mission is to foster innovation through collaboration between startups and large corporations, ensuring that new ideas and technologies can positively impact the way people live and work.

Here’s a well-organised portfolio for DNX Ventures with a brief description of each company:

Cylance: A cybersecurity company that uses artificial intelligence to prevent cyber attacks. It was later acquired by BlackBerry for its advanced AI-driven threat detection.

Nauto: Provides autonomous driving and driver assistance systems that use AI to improve road safety for fleets and drivers worldwide.

Quollio Technologies: A deep tech startup developing data intelligence solutions that help businesses process and manage large datasets more effectively.

Shiftmation: Specialises in workforce management software for businesses, streamlining shift scheduling and improving operational efficiency.

Li Industries: A sustainability-focused company that offers battery recycling technology to reduce environmental impact and support the circular economy.

SafeBreach: Offers a cyber attack simulation platform that helps organisations test and strengthen their security systems against potential threats.

CloudNatix: Provides cloud infrastructure management solutions, enabling businesses to optimise and monitor their multi-cloud and on-premise environments.

Appdome: A platform that automates mobile app integration, enabling developers to quickly secure and enhance their applications without code changes.

ICEYE: Develops small satellites for real-time Earth observation, providing critical data for sectors such as disaster response and environmental monitoring.

Diligent Robotics: Builds robotic assistants for healthcare, helping nurses and hospital staff with routine tasks to improve patient care.

Paystand: A fintech company offering B2B payment processing services, focused on reducing transaction costs and improving payment automation.

Prime Roots: Produces plant-based deli meats made from koji-based ingredients, offering sustainable alternatives to traditional meat products.

Coalesce: Provides data transformation tools that help businesses convert, manage, and utilise data more efficiently.

Bright Security: Focuses on application security for developers, providing tools to detect and fix vulnerabilities in software development.

Leap: A platform that connects retail businesses with the necessary real estate and staffing resources to help them expand their operations.