UTEC Launches New Initiative for Deep Tech Commercialization

UTEC Launches New Program for Deep Tech Founders

The University of Tokyo Edge Capital Partners (UTEC) is introducing a novel initiative designed to tackle a common challenge faced by founders in the deep tech sector. Many promising ventures secure initial pre-seed funding through incubators or accelerators, yet encounter a financial shortfall before progressing to subsequent early-stage investment rounds.

This lack of readily available capital can significantly prolong the process of bringing innovative technologies to market, regardless of their potential.

Introducing the UTEC Founders Program (UFP)

To bridge this gap, UTEC, an independent venture fund affiliated with The University of Tokyo and other leading academic institutions, has established the UTEC Founders Program (UFP). The program features two distinct pathways for support.

• Equity Track: Provides investments of up to $1 million with adaptable terms.
• Grant Track: Offers nondilutive grants of approximately $50,000, with occasional awards reaching $100,000, distributed every six months.

Applications for the UFP are open globally to deep tech researchers and founders.

UTEC’s Investment Capacity

UTEC recently launched a $275 million fund in May, typically making initial investments ranging from $1 million to $5 million.

With approximately $780 million in aggregated assets under management, UTEC stands as Japan’s largest venture capital fund specializing in science and technology companies, and a prominent deep tech fund throughout Asia.

Addressing the Seed Funding Readiness Gap

Feedback gathered from deep tech researchers and entrepreneurs highlighted a recurring issue. Even with groundbreaking technology, many teams lacked immediate readiness for seed funding.

These teams would greatly benefit from expedited funding to further refine their technology for commercialization, rather than navigating extended due diligence procedures.

A Nimble Approach to Investment

According to UTEC principals, Hiroaki Kobayashi and Kiran Mysore, in a communication with TechCrunch, “Similar to entrepreneurs who develop new products to fulfill unmet market demands, we at UTEC are committed to being more responsive and offering innovative investment solutions to serve researchers and entrepreneurs in science and technology.

UFP represents UTEC’s effort to leverage over 15 years of deep tech investing expertise and insights into an early-stage technology commercialization program.”

Details of the Equity and Grant Tracks

The equity track is geared towards seed and pre-Series A startups, offering flexible investment instruments such as SAFE notes, KISS and J-KISS, convertible notes and bonds, and common stocks.

Applications are accepted continuously, and shortlisted candidates can expect an initial interview within three days. Mysore indicated that the complete due diligence and investment committee review will be finalized within four weeks of the initial interview.

The grant track is designed for pre-launch or early-stage ventures, with funds allocated to activities like prototyping, market validation, and talent acquisition. Applications are reviewed bi-annually, with approximately five teams selected each round.

The application deadline for the first cohort is July 31, with decisions anticipated in September.

Access to a Robust Network

Teams participating in the UFP also gain access to UTEC’s extensive network, encompassing over 115 Japanese and international startups, academic institutions, governmental bodies, and corporations.

This network provides valuable opportunities for collaboration and support.