Kyoto University-affiliated venture capital firm Miyako Capital has established a fund expected to raise roughly 20 billion yen ($141 million) to back startups involved in deep-tech biology and artificial intelligence.
The fund will be one of the biggest vehicles of its kind in Japan, injecting between 500 million yen and 1 billion yen into each startup.
Half the funds will go toward startups in biology and other life sciences, while the other half will go toward AI and electronics. Miyako Capital will hire more staff with experience in evaluating these types of advanced tech.
The firm will collaborate with other colleges as well to hunt for targets throughout the country.
About half the 20 billion yen will come from two state-backed funds: Japan Investment Corp. and the Organization for Small and Medium Enterprises and Regional Innovation, Japan. The rest will come from other investors, such as Japan Post Bank and Shiga Bank.
Deep tech startups pursue fundamental innovation, meaning they require time to grow and investors willing to go the long haul.
Miyako Capital will use its Silicon Valley office to provide support to startups for overseas expansion.
Similarly, University of Tokyo Edge Capital Partners, a VC affiliated with the University of Tokyo, launched a fund worth over 30 billion yen in 2021 to invest in deep tech.
Full story: Kyoto University’s VC fund to invest $140m in AI and biotech – Nikkei Asia
