#Japan #Tokyo #Global Innovation Strategy #Tokyo Innovation Fund #Startup Growth Fund

Exploring Tokyo's Public-Private Partnership Funds for Startups

Tokyo is spearheading an impressive initiative under its startup strategy, known as the “Global Innovation Strategy 2.0 STARTUP & SCALEUP,” which aims to propel startups to new heights in the global marketplace. At the core of this strategy is the proactive use of public-private partnership funds to provide critical financial support and scaling assistance to emerging businesses.

In recent updates, the Tokyo Metropolitan Government has consolidated investment activities from three significant funds established in previous years: the “University-initiated Startup Promotion Fund,” the “Public-Private Partnership Impact Growth Fund,” and the “GX Innovation Promotion Support Fund.” These funds have been designed specifically to assist startups in expanding their reach and enhancing their potential in international markets.

University-Initiated Startup Promotion Fund

Overview

• - Fund Name: University-Initiated Startup Promotion Fund Investment Limited Partnership
• - Managing Organization: The University of Tokyo’s Collaborative Platform Development Co., Ltd.
• - Established: February 2024
• - Total Capital from Tokyo: ¥5 billion

This fund focuses on investing in venture capital funds aimed at university-initiated startups and deep tech companies. By leveraging high-quality research and development from universities, it aims to create globally competitive startups and expand the overall startup ecosystem.

Investment Targets

The fund primarily invests in VC funds dedicated to university-originated startups and those focusing on deep tech sectors.

Notable Fund Recipients

As of August 2024, key recipients of investments through this fund include:

• - Miyako Kyoto University Innovation Fund: A collaboration with Kyoto University focused on supporting startups targeting both domestic and international markets.
• - Vision Incubator I Fund: A Kanazawa University initiative aimed at fostering deep tech startups in life sciences and IT.
• - ONE Carbon Neutral Fund: Focused on supporting startups in carbon neutrality through university and industry collaborations.

Public-Private Partnership Impact Growth Fund

Overview

• - Fund Name: IFGrowth I Fund
• - Managing Organization: Incubate Fund, Inc.
• - Established: March 2023
• - Investment Amount from Tokyo: ¥10 billion

This fund is designed to support growth-stage startups addressing societal challenges. It targets domestic impact-driven startups capable of transforming existing industries and creating new ones.

Investment Targets

The focus is on mature, impact-oriented startups that are poised for significant growth.

Key Investments

Notable investments from this fund include:

• - Asuene Inc.: Offers cloud services for visualizing and reducing CO2 emissions, aiding businesses in transitioning to decarbonized strategies.
• - Pixiedust Technologies: Develops products utilizing unique wave control technology, enhancing opportunities for the elderly and disabled.

GX Innovation Promotion Support Fund

This fund aims to accelerate the overall GX (Green Transformation) efforts by supporting startups with innovative ideas and outstanding technological capabilities.

Overview

• - Funds Established: Mirai Creation III and BUILD I (December 2023 and March 2024)
• - Total Investment from Tokyo: ¥3 billion and ¥2 billion respectively

Investment Focus

This fund primarily focuses on startups with promising technologies in the GX sector and other advanced areas including semiconductors, quantum computing, and more.

Recent Investments

Key beneficiaries include:

• - Wavelet Inc.: Provides a platform for high-resolution subterranean imaging, advancing the development of next-generation geothermal energy.
• - Equitas Medical Inc.: Implements medical DX for clinics using advanced AI technologies.

Through these initiatives and investments, Tokyo is not only cultivating a robust ecosystem for startups but also strategically positioning itself as a global hub for innovation and sustainable technological advancements. The ongoing efforts in establishing these public-private partnerships demonstrate the city's commitment to fostering future leaders in the startup landscape and beyond.