Japan, eclipsed by China in startup activity, is boosting efforts to get foreign venture capital firms more involved with its entrepreneurs.

The government-backed Cool Japan Fund said Thursday it will contribute $10 million to become the largest limited partner in the Japan-focused fund of 500 Startups, a San Francisco-based venture firm specializing in early-stage investments. The partnership aims to help startups in the archipelago expand abroad by leveraging the venture firm’s global network in about 60 countries.

The deal is unusual in a country where startup funding is dominated by local corporations, and marks the first time the state has directly backed a non-Japanese venture capital firm. The investment helps to show that foreign venture backers will be supported if they dedicate more resources to Japan.

The investment brings total capital raised for the venture firm’s Japan fund to $35 million, exceeding its initial target of $30 million when it debuted last year. So far the firm has invested about a quarter of that amount in over 20 local startups, including satellite services provider Infostellar Inc. and high-tech wheelchair maker Whill Inc. Its parent firm oversees $350 million and has invested in about 1,800 companies globally.

By joining with 500 Startups, Cool Japan is aiming to bring in more local entrepreneurs. After nurturing businesses in their early stages, the state-backed fund may step in with more financing in later rounds.

Cool Japan, established in 2013, invests in firms that promote Japanese culture. The government provides about 85 percent of its ¥69.3 billion ($630 million) in capital. Since its inception, it has taken stakes in more than 20 companies, including Japanese TV channel operator Wakuwaku Japan Corp. and cafe chain Green Tea World USA Inc.

500 Startups is one of the few foreign venture firms that operate in Japan. Others include Salesforce.com Inc.’s venture fund and Eight Roads, the late-stage venture capital arm of Fidelity Investments. Silicon Valley accelerator Plug and Play Tech Center will open its Japan office as early as this month, Bloomberg News reported last week.

More foreign backers could help boost venture activity in Japan, where startup funding reached ¥210 billion last year, according to Japan Venture Research Co. Still, that’s far below China, which climbed to $31 billion in 2016 from $3 billion three years prior, according to KPMG.

James Riney, the head of 500 Startups in Japan, says foreign venture firms can help change a culture dominated by corporate funding. He says companies dominate Japan’s startup ecosystem, accounting for 72 percent of venture funding in 2016, compared with 24 percent in the U.S., according to CB Insights. Corporate oversight can stifle risk-taking and innovation, and result in startups going public too soon, he said.

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