Japan's UTEC seeks $275m for Fund V

This would nearly double the size of the VC's fourth fund, which closed at JPY15.5 billion in 2018. The capital raised so far brings assets under management across all five funds to about JPY85 billion, according to a statement.

Like its predecessors, UTEC 5 will focus on life sciences, IT, and engineering projects being developed by a global network of around 50 academic and research organizations. The fund will leverage partnerships with the likes of University of Tokyo, Massachusetts Institute of Technology, and Singapore's Agency for Science Technology and Research.

It is touted as on track to become the largest science-focused fund in Japan and among the largest deep tech funds in the broader region. Last month, Australia's Main Sequence Ventures, which also boasts strong ties to universities and national science agencies, raised almost $200 million for a deep tech fund.

Further syngergies for UTEC 5 will come from collaborations with  similarly focused investors, including a cross-border university science development program with US-based Arch Venture Partners and a deep tech accelerator launched alongside India's Blume Ventures. UTEC is an LP in Blume's third flagship fund, which closed at $102 million last year, and coincided the launch of UTEC 5 with joining the Indian Private Equity & Venture Capital Association.

Founded in 2004, UTEC has invested in more than 110 start-ups to date. There have been 12 exits via M&A and 13 via IPO. The combined market capitalization of companies exited on public markets was JPY1.5 trillion as of the end of 2020.

Deal targeting focuses largely on Japan, with deployments so far this year supporting the local artificial intelligence and blockchain ecosystems. Notable international investments include Tricog, an Indian medical analytics provider expanding into Japan.

Although it maintains deep connections with government and government-linked organizations, UTEC operates independently of these groups, including University of Tokyo. It usually acts as a lead investor and describes its missions as helping solve global problems through science.

In addition to advice from the university network, portfolio support includes an HR program that has hired more than 100 professionals and access to a team of former UTEC partners called "alumni" venture partners.

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• Topics
• North Asia
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• University of Tokyo Edge Capital
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