The popular Japanese message service Line announced its partnership with a New York-based venture capital firm, Collaborative Fund, for an enhanced presence in the United States.

Craig Shapiro, Chief Executive of the venture capital firm, said they formed a joint investment vehicle with Line to purchase small stakes in American start-ups.

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The joint fund has US$10 million capital and aims to focus on start-ups in the earliest stages of the development.

The partnership with Collaborative Fund is the newest sign of Line's goals in expanding beyond its home market and diversifying its business beyond messaging.

Line has quite a substantial following in Japan and has more than 430 million users across the globe. The company is considering an initial public offering in Tokyo.

Naver Corporation of South Korea, parent company of Line, said there's a possibility of listing the messaging service in Japan or in the U.S. or in both countries.

According to Line, the U.S. market is more difficult to take a crack at as they will be up against Facebook, Twitter and other rising messaging services such as WhatsApp and Snapchat.

However, Line is entirely unique with its offering of various virtual stickers and other paid content.

Mr. Shapiro said Line could possibly build good relationships with new companies by investing in start-ups via Collaborative Fund. They may also potentially make acquisitions if everything falls into place.

“It’s much more of a media-centric company. Messaging is just the distribution or the delivery mechanism,” Mr. Shapiro said.

Line's top executives have yet to comment on the partnership.

TagsCollaborative Fund, venture capital firm, LINE Messaging Service, Messaging service, snapchat, WhatsApp