INCJ to invest up to $27m in Japan DNA research start-up
The government-backed Innovation Network Corporation of Japan (INCJ) will invest up to JPY3.3 billion ($27 million) in Quantum Biosystem (QB), a VC-backed Japanese start-up that develops instruments used to automate the DNA sequencing process.
Mitsubishi UFJ Capital is making an additional undisclosed investment alongside INCJ. The start-up's previous backers include Jafco, the University of Tokyo Edge Capital (UTEC), and Mizuho Capital.
Set up in 2013, QB started as a university venture and aims to develop a next-generation DNA sequencer based on the research results of Professor Tomoji Kawai and Masateru Taniguchi of Osaka University.
According to a release, QB's approach to DNA sequencing differs from traditional methods in that it uses electrical currents to analyze single molecules to identify base sequences. This eliminates the need for fluorescent reagents and therefore reduces cost. It is also hoped the technology will offer faster DNA analysis, and more accurate detection of viruses and allergens, making it easier to support future drug research.
The new funding will be used for business development and the commercialization of the QB's technology, with INCJ providing additional support by assigning outside board members and helping the company form strategic partnerships.
INCJ was created in 2009 as a public-private partnership to support technology innovation across several industries and has the capacity to invest up to JPY2 trillion. To date, it has committed approximately JPY800 billion across 79 projects, and the fund already has a track record for backing university-based ventures.
Recent investments include Microwave Chemical (MWC), a Osaka University start-up developing innovative chemical processes using microwaves; Material Concept, a manufacturer of copper paste for use in electrical components and solar panels; UniZeo, which was set up by Nippon Chemical Industrial through a joint research project with University of Tokyo; and Exvision, a company that has developed a high-speed image processing technology in partnership with the University of Tokyo.
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