New Fund Launched to Support Japanese Technology: Boosting Growth for Deep Tech Companies
UntroD Capital Japan Co., Ltd. has announced the establishment of a new investment fund, the "Deep Tech Venture Debt Fund." This fund aims to support "deep tech" companies that possess advanced technologies to solve the complex challenges facing the Earth and humanity. Having already completed its initial fundraising, the fund has officially commenced its operations.
"Deep tech" refers to innovative technologies based on discoveries made at universities and research institutions. Examples include new energy technologies that help solve environmental issues and unprecedented medical technologies. While making these technologies practical for society requires significant time and capital, securing stable funding has historically been a major challenge.
A key feature of this fund is the implementation of a "venture debt" structure. This is a method where startup companies borrow funds in the form of loans rather than obtaining capital by selling shares of their company. This allows management to secure the necessary funds for research and development while maintaining ownership of their business.
Japan is home to many startups with excellent technology, but more diverse financing methods are needed to compete and grow globally. Through this new fund, UntroD Capital Japan aims to facilitate the smooth expansion of Japan's innovative technologies into society.
This initiative is expected to make it easier for Japanese deep tech companies to grow. It represents a significant step forward for Japan's startup industry toward a future where social challenges are solved through the power of science and technology.