University of Tokyo Edge Capital Partners (UTEC), a venture capital firm established by the University of Tokyo, has raised ¥47 billion1 for its sixth fund as of today.
The firm didn’t disclose any limited partners, noting only that it is backed by investors such as pension funds, insurers, sovereign wealth funds, financial institutions and asset managers.
The new vehicle will maintain UTEC’s focus on leading seed rounds, particularly in healthcare and life sciences, IT, and physical sciences and engineering.
“To further accelerate the growth of cross-border startups, UTEC 6 will make larger investments ranging from $10 million to $20 million per company.”
Tomotaka Goji, managing partner and CEO of UTEC
The fundraising means UTEC now has more than $1 billion in total assets under management.
The firm has, for the most part, increased the size of its funds over time: its first fund was launched with ¥8.3 billion in 2004, although its second fund raised only ¥7.1 billion amid the aftermath of the financial crisis in 2009.
A ¥14.5 billion third fund followed in 2013, and a ¥24.3 billion fourth one in 2018. In 2021, UTEC raised a ¥30.4 billion fifth fund.
Unusually for a venture capital investor set up by a university, UTEC doesn’t simply back spinouts out of the University of Tokyo. Instead, it behaves like a regular VC that even seeks out opportunities abroad.
To date, UTEC has invested in at least 155 startups, achieving 20 initial public offerings and 22 acquisitions. It lists one investment for the sixth fund, although no further details could be ascertained.
“At UTEC, we seek out innovative startups tackling some of the world’s most pressing challenges, such as labour shortages, ageing populations, and the digitisation of legacy industries.”
Noriaki Sakamoto, managing partner and chief operating officer of UTEC
UTEC’s sixth fund is the second notable fund raised by a Japanese university-linked venture fund in as many months. In June, Kanazawa University closed its first Vision Incubate fund thanks to support from the University of Tokyo Innovation Platform.
- $326 million / 272€ million / £236 million ↩︎