#Japan #Tokyo #Deep Tech #BXG Innovation #BUILD Inc.

Establishment of the GX Innovation Support Fund

The GX Innovation Support Fund has been formally established to support innovative ideas and advanced technologies within startups that contribute to Green Transformation (GX). This initiative aims to provide financial backing and resources to promising organizations pursuing sustainability and cutting-edge tech solutions.

In December of last year, the first fund manager was appointed, successfully launching the inaugural fund. As of recently, a second fund operator has been confirmed, and following the establishment of the fund in March of this year and the completion of investments from the Tokyo Metropolitan Government, investment activities are now officially underway.

Overview of the Fund Management Entity

Company Details

• - Name: BUILD Inc.
• - Location: 2-2-1 Otemachi, Chiyoda-ku, Tokyo, in the New Otemachi Building, 3rd floor.
• - Key Executives: Masahiro Samejima (CEO), Hiroaki Kubo (Board Member).

This newly established venture capital firm specializes in the deep tech sector, particularly in GX. Its members boast extensive investment expertise focused on supporting startups from inception through a process termed "Company Creation." By leveraging a wide network comprising industry, government, academia, and finance, BUILD aims to facilitate the emergence of new industries in Japan.

Fund Details

• - Name: BUILD No. 1 Investment Limited Liability Partnership
• - Establishment: March 2026.
• - Investment Focus: Startups in sectors such as decarbonization, environmental technology, semiconductors, quantum computing, and space technology.
• - Characteristics: The fund plans on identifying and fostering technology seeds from universities and research institutions, supporting startups from launch onward. This approach extends beyond mere fundraising; BUILD will also provide long-term, hands-on support for organizational development and business partnerships, enhancing the scaling process for GX and deep tech startups, which often face prolonged timelines for technological implementation into society.

Fund Duration

The fund is set to operate for a duration of 15 years, until March 2041, with an option for a three-year extension.

Fund Scale

The target fund size is approximately 8 to 10 billion yen, which includes an investment of 2 billion yen from the metropolitan government.

Scheme of the GX Innovation Support Fund

The implementation of this fund is part of a broader strategic framework aimed at bolstering Tokyo's economic and environmental landscape through innovative ventures and startups.

Process of Selection and Establishment

Following the selection of the first fund management entity in October 2025, an open call for new managers was launched. A due diligence investigation carried out by consulting experts paved the way for a committee composed of external knowledge leaders, which ultimately chose the second management entity.

A contract was finalized in March 2026, leading to the establishment of the limited liability partnership, followed by an additional 2 billion yen investment from the city government in May of the same year.

Future Plans for the Newly Established Fund

• - March 2026: Fund formation with a 2 billion yen investment.
• - March 2026 to September 2027: Recruitment of investors both domestically and internationally, with sequential investments into startups.
• - September 2027: Deadline for investor recruitment with a target of 8 to 10 billion yen.
• - September 2027 to March 2041: Continued execution of investments (expected completion by March 2031) and hands-on support for investees.
• - March 2041: Conclusion of the fund’s operation.

This initiative aligns with the "Tokyo 2050 Strategy," which emphasizes the development of globally competitive startups and aims to establish a foundation that encourages innovation across environmental and technological fronts.