#Japan #Tokyo #Deep Tech #Tokyo Startup Fund #University Ventures

Tokyo's Innovative Approach to Startup Funding

In February 2024, the city of Tokyo introduced an ambitious initiative aimed at enhancing the entrepreneurial ecosystem by establishing the "University-based Startup Promotion Fund." With a substantial investment of 5 billion yen (approximately $45 million), the fund is designed to nurture cutting-edge technology firms emerging from universities and research institutions, fostering their global presence.

This fund operates under a "fund of funds" structure, wherein it invests in university-affiliated venture capital (VC) funds that subsequently direct capital towards startups originating from academic settings. The ultimate objective is to scale the startup landscape and amplify the reach of university spin-offs and deep tech enterprises.

The primary goal of this initiative is to lay the groundwork for successful startups by collaborating closely with universities known for their research excellence. As of November 2025, the overall size of the fund's investments exceeds 80 billion yen, reflecting a robust pipeline dedicated to the support and investment in university-based startups and deep tech ventures.

Investing in Future Innovations

The fund has strategically aligned with several venture capital firms that share a commitment to fostering innovation and supporting startups across diverse sectors. Below are some noteworthy funds and their contributions:

1. Miyako Kyoto University Innovation Fund No. 3 - Operated by Miyako Capital, this fund emphasizes collaboration with domestic and international universities, focusing on the development of regional technological seeds and support for startups aiming at global expansion.

2. VI-1 Investment Business Limited Partnership - Established by a subsidiary of Kanazawa University, this fund is dedicated to investing in deep tech domains, especially in life sciences, IT, and materials, enabling the growth of national university-based startups.

3. ONE Carbon Neutral Fund No. 1 - By partnering with research institutions and corporations, this fund assists startups innovating in the carbon neutrality sector.

4. GHOVC Fund I - This multicultural team, comprising experts with global entrepreneurial experience, offers substantial support to Japanese deep tech startups seeking international opportunities.

5. ITF Fund 9 L.P. - This fund has a proven track record in deep tech investments and is designed to assist all technology sectors, excluding drug discovery.

6. Vertex Ventures Japan Fund No. 1 - Focused on supporting Japanese startups, this fund seeks to invest in growth sectors like deep tech while facilitating international expansion through global networks.

7. Abies Ventures Fund II - An independent VC focusing on seed and early-stage startups that leverage deep tech, offering insights and connections for robust global growth.

8. UTEC Fund No. 6 - This fund emphasizes commercializing research results from the University of Tokyo and other institutions, supporting the dual direction of Japanese technologies entering international markets and foreign innovations being adapted domestically.

9. Red Capital Healthcare Fund No. 1 - Founded by two women with doctoral backgrounds in science and life sciences, this fund invests in deep tech startups across various healthcare applications, including drug discovery and digital health technologies.

Portfolio Companies Making Waves

From the aforementioned funds, several innovative companies are already making significant strides, including:

• - Aqas Inc.: Developing separation technology to visualize trace components in nature. Link
• - Wavelet Inc.: Creating systems for subsurface exploration and monitoring using vibration big data analytics. Link
• - Cubix Inc.: Offering early diagnosis services based on RNA analysis from blood. Link
• - Future Space Transport Inc.: Focused on developing reusable small rockets. Link
• - Nice Robots Inc.: Innovating in robotics for handling heavy items. Link

The fund is a part of Tokyo's broader strategic initiative to develop a vibrant startup ecosystem, promoting entrepreneurship that contributes to a dynamic economic future. As the city continues to foster and support these ventures, the potential for impactful innovations remains vast. By investing in talent, technology, and collaboration, Tokyo is paving the way for a new generation of globally competitive startups.

This venture represents Tokyo's commitment to the "2050 Tokyo Strategy," which emphasizes nurturing groundbreaking startups that can make their mark on the world stage.