Kyoto University Innovation Capital (Kyoto iCap), the venture capital subsidiary of Kyoto University, has launched the Innovation Kyoto 2026 Investment Limited Partnership (also referred to as Fund III) with a ¥20 billion target size.
Limited partners in the fund thus far include pharmaceutical firm Astellas Pharma, sustainable aviation fuel producer Cosmo Energy Holdings, precision instruments and medical equipment manufacturer Shimadzu, real estate developer Tokyu Land, and insurer Nippon Life Insurance.
VC firm Kyoto Capital Partners, as well as financial services firms Senshu Ikeda Bank, Bank of Kyoto, Kyoto Chuo Shinkin Bank, and Sumitomo Mitsui Trust Bank, have also backed the fund.
The Taiwanese government, which had reportedly been exploring an investment in Fund III, is so far absent from the list of LPs.
Fund III will back early-stage spinouts from Kyoto University and other institutions across Japan. This nationwide approach was first adopted during Kyoto iCap’s Fund II, established in 2021.
The new fund is – similarly to the two earlier vehicles – structured to deliver patient capital, with a life cycle of a minimum 15 years that can be extended by two years if LPs agree. Typical venture capital funds have a life cycle of just 10 years.
Founded in 2014, Kyoto iCap raised ¥16 billion for its first fund two years later. Fund II went on to secure a slightly larger amount, ¥18.14 billion.
Kyoto iCap continues to be wholly-owned by the university.
