In a significant move underscoring Japan’s growing ambition to nurture deep-tech innovation, UTokyo Innovation Platform Co., Ltd. (UTokyo IPC), led by President and CEO Kosuke Ueda, has announced a limited partner (LP) investment into Abies Ventures Fund II. The investment will be made through the Academic Startup Acceleration (ASA) Fund, a major initiative operated under the Tokyo Metropolitan Government’s “Global Innovation with STARTUPS” program.

The decision marks another bold step toward revitalizing Japan’s academic entrepreneurship landscape, aligning deep-tech research with robust commercialization efforts capable of standing shoulder-to-shoulder with global counterparts.

Backing Deep-Tech Pioneers for a Global Stage

Founded in 2017, Abies Ventures has rapidly established itself as a formidable presence in Japan’s venture capital ecosystem. Unlike traditional VC firms, Abies Ventures operates with a laser focus on deep-tech startups—companies born out of sophisticated scientific and engineering advances rather than mere digital iteration.

The firm’s core investment areas read like a blueprint for future industries: robotics and mobility, artificial intelligence (AI) and computing, advanced communications, next-generation materials, climate technologies, and even space exploration.

At a time when national economic strategies increasingly hinge on technological self-reliance and climate resilience, these sectors are not just desirable—they are essential. By backing startups at the seed and early stages, Abies Ventures provides critical lifelines to ideas that often require long development horizons but promise transformational impact.

Leading the charge at Abies Ventures are seasoned entrepreneurs and investors like Fuyuki Yamaguchi and Sota Nagano. Together, they bring a rare blend of technical insight, hands-on operational experience, and deep global networks. Their strategy is more than about capital—it’s about surrounding startups with strategic management support, building international bridges for funding, and unlocking pathways into complex global markets.

This philosophy resonates deeply with UTokyo IPC’s vision of empowering university-born innovation with not just financial muscle, but strategic foresight and global execution.

Strategic Alignment: A Partnership Rooted in Purpose

UTokyo IPC’s investment decision did not emerge in a vacuum. It reflects a deliberate effort to overcome one of Japan’s longstanding challenges: translating world-class research into commercially viable, globally competitive enterprises.

Despite boasting some of the most cited academic research globally, Japan has often lagged in converting scientific breakthroughs into startup success stories. Structural barriers such as risk-averse funding environments, limited entrepreneurial culture within academia, and fragmented industry-academic collaboration have historically impeded progress.

Recognizing Abies Ventures’ proven ability to bridge science and scalable business models, UTokyo IPC saw in the firm a strategic partner capable of accelerating a cultural and economic shift. Particularly appealing was Abies Ventures’ track record in cross-border investments and IPO navigation, vital for Japanese startups aiming to succeed beyond domestic markets.

This partnership embodies a broader national effort. In recent years, Japan has launched various initiatives to revitalize its startup ecosystem—most notably the “Startup Development Five-Year Plan” unveiled by Prime Minister Fumio Kishida’s administration, aiming to increase startup investments tenfold by 2027.

UTokyo IPC’s collaboration with Abies Ventures thus fits squarely within this macro vision: fostering globally minded entrepreneurs who can transform deep scientific expertise into world-class companies.

Voices from the Frontline: Abies Ventures’ Perspective

In response to the announcement, Fuyuki Yamaguchi, Managing Partner at Abies Ventures, emphasized the firm’s mission and its synergy with UTokyo IPC’s objectives:

“Abies Ventures focuses on deep tech fields, which are expected to grow from the perspectives of digital transformation (DX), green transformation (GX), and economic security. Our goal is to realize a sustainable society and advance Society 5.0, while helping Japanese startups globalize. With UTokyo IPC’s investment, we are even more committed to creating internationally competitive unicorns from university-based innovations.”

Society 5.0, a concept championed by Japan’s government, envisions a future where digital innovation solves social challenges—from aging populations to environmental crises. For Abies Ventures and UTokyo IPC alike, investing in deep tech startups is not merely an economic imperative—it’s a societal mission.

ASA Fund: A Cornerstone for Academic Innovation

The Academic Startup Acceleration (ASA) Fund, launched in February 2024 by UTokyo IPC, plays a critical role in this evolving landscape. Functioning as a fund-of-funds, the ASA Fund invests in venture capital firms supporting startups emerging from universities.

Rather than picking individual startups directly, the ASA Fund strategically places its bets on experienced VC managers, leveraging their sectoral expertise and operational know-how to maximize impact.

The goals are clear:

• Accelerate commercialization of university research
• Address funding gaps for early-stage deep-tech ventures
• Promote global competitiveness of Japanese innovations
• Strengthen ecosystem collaboration between academia, government, and private sector
  

The Tokyo Metropolitan Government’s backing of the ASA Fund reflects a recognition that startup ecosystems thrive not just on isolated successes but on the strength of interwoven networks. The ASA Fund’s collaborative, ecosystem-first model is designed to cultivate an environment where promising ideas are nurtured into globally viable companies.

A Broader Context: Why Deep Tech, Why Now?

Deep-tech startups are distinct from typical software startups. Their products often involve complex engineering and scientific discoveries that may take years to mature. However, the payoff can be monumental—consider breakthroughs like CRISPR gene editing, quantum computing, or renewable energy innovations.

Global investors are increasingly recognizing the transformative potential—and necessity—of deep-tech innovation. According to BCG and Hello Tomorrow’s “Deep Tech Investment Report,” global deep-tech investment grew from around $15 billion in 2016 to nearly $60 billion by 2020, and the trajectory continues upward.

Japan, despite its scientific prowess, has traditionally been underrepresented in this sector. Closing this gap has become a matter of national strategy. With technological sovereignty becoming a critical pillar of economic security, deep tech is no longer just about economic growth—it’s about geopolitical resilience.

VCs like Abies Ventures and institutional supporters like UTokyo IPC are thus not only betting on economic returns; they are investing in Japan’s future relevance on the world stage.

Future Outlook: Creating Japan’s Next Wave of Unicorns

The partnership between UTokyo IPC and Abies Ventures is emblematic of a wider shift in Japan’s innovation policy: from insular research excellence to outward-facing, market-driven entrepreneurship.

As this collaboration deepens, several outcomes are anticipated:

• Higher rates of university startups advancing beyond seed stages
• More cross-border startup expansions into North America, Europe, and emerging markets
• Increased number of unicorns (startups valued over $1 billion) originating from Japanese academia
• Stronger integration of Japan’s innovation ecosystem into global supply chains and research networks

While challenges remain—such as the need to further loosen regulatory barriers and incentivize entrepreneurial risk-taking—the groundwork is clearly being laid for a more dynamic, globally integrated startup environment.

Conclusion: A Strategic Leap Forward

UTokyo IPC’s LP investment into Abies Ventures Fund II represents more than just capital allocation; it’s a decisive step toward reimagining Japan’s innovation landscape.

By aligning top-tier academic research with world-class venture capital expertise, and embedding global expansion into the DNA of university-born startups, UTokyo IPC and Abies Ventures are charting a new course—one that aspires to position Japan not just as a knowledge economy, but as a startup powerhouse.

As the global race for deep-tech supremacy accelerates, partnerships like these could very well determine which countries lead the next wave of technological revolutions. And judging by their ambitions, UTokyo IPC and Abies Ventures are determined to make sure Japan is one of them.

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photo source: Google

By: Montel Kamau

Serrari Financial Analyst

28th April, 2025