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[3/31-4/6] Featured startup news and funding information

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JP Startups presents a selection of startup news and funding information that has garnered significant interest, published between March 31, 2023 to April 6, 2023

Editor's Comments

This week we selected three fundraising news stories focused on technology.

SkyDrive, a "flying Car" company, announced Series C Extension Round and appeared to aim for further large-scale procurement. Helical Fusion, one of the startups developing nuclear fusion reactors for efficient power generation from the private sector, has achieved seed procurement with SBI as the lead investor. Metagen Therapeutics aims to develop gut bacteria drug discovery and closed its first Series A round with new investor JIC Venture Growth Investments.
All of these companies are tackling challenging medium- to long-term challenges that require large-scale funding, and they are making steady progress despite the challenging market conditions. Expectations are high for their future implementation and social impact.

Startup News

Toranomon Impact Capital Launches Tokyo Wellness Impact Fund, an Investment Fund Specializing in the Wellness Domain (Announced on March 31, 2023)

Credit : Capital Medica Ventures Press Release

Toranomon Impact Capital LLC (hereinafter referred to as TIC), a company that practices impact investment, announced that it would complete the first round of subscription for the formation of the 10 billion yen Tokyo Wellness Impact Fund (hereafter, TWIF) on March 31, 2023, and will start investment activities.

TWIF is a fund that invests in impact-oriented startups that aim to solve problems in the wellness domain, which began when TIC was selected as an operator for the Tokyo Metropolitan Government's Social Impact Investment Fund Project. In addition, TWIF will support entrepreneurs through IMM (Impact Measurement and Management) to improve corporate value and will continue to solicit fund investors to reach its target investment amount.

In recent years, the aging society and rising health consciousness have created a trend to emphasize wellness, reaffirming the importance of healthy lifestyle habits. However, there are many challenges in the wellness area, and startups that solve problems from various perspectives are in demand. On the investor side, impact investing, which aims to generate both financial and social returns, is beginning to attract attention. However, with the background that the startup x impact investment area is still in development, TWIF hopes to create problem-solving practitioners, secure fund profits, and create a flow of money from individuals to impact investment on the theme of solving issues in the wellness domain. Click here for the original press release.

Entry to the Incubate Camp 16th, to be Held from October 13 (Friday) to 14 (Saturday), 2023, Starts on April 3 (Monday)! (Announced on April 3, 2023)

Credit:Company Press Release

Incubate fund, an independent venture capital firm, announced that it would hold "Incubate Camp 16th", a joint management camp for entrepreneurs and investors from October 13 (Friday) to 14 (Saturday), 2023, and will start accepting entries from entrepreneurs from April 3 (Monday).

The Incubate Camp is a one-night, two-day training camp program operated as a "joint management camp for investors/entrepreneurs" that includes not only seed funding but also funding of tens of millions to billions of yen. Sixteen entrepreneurs who have passed the screening from among the applicants are invited to participate in the program and will have discussions with 16 of Japan's leading venture capitalists (hereinafter referred to as guest VCs) who will participate as guests to brush up on their business plans and raise funds.

In addition to the conventional "open recruitment route", which allows startup executives to apply directly, a new "VC recommendation route" will be established by recommendations from VCs and angel investors, and a "selection committee" consisting of young members from several VC firms will be established. Click here for the original press release.

SCHEDULE

April 3 (Monday):Various entries start
May 31 (Wednesday):Early Entry (Regular Mentoring Program) deadline
July 31 (Monday):Entrepreneur Entry deadline
August 1 (Monday) to September 8 (Thursday):Interview period
Mid-September:VC selection committee meeting (companies selected to compete will be contacted in due course)
October 13 (Friday) and October 14 (Saturday): Incubate Camp 16th

Incubate Camp 16th special page URL:
https://m.incubatefund.com/incubatecamp16th

PKSHA, an AI SaaS Provider, Jointly Establishes a Venture Capital Fund with Matsuo Institute (Announced on April 4, 2023)

Credit:Company Press Release

Capital, established PKSHA Algorithm No. 2 Fund (official name: "PKSHA Algorithm No. 2 Investment Limited Liability Partnership", hereinafter referred to as Algo Fund)" on January 27, 2023. The fund will also be used for the social implementation of AI technology.

The fund will promote investment and management jointly with MK Capital, a subsidiary of Matsuo Institute, which has strengths in the social implementation of AI technology and incubation in the AI domain and will boost the growth of portfolio companies by combining the wisdom and experience of PKSHA and Matsuo Institute in the AI domain.

PKSHA Technology Group develops AI solutions and provides AI SaaS using machine learning and deep learning algorithms developed in-house to create future relationships between companies and their customers under the mission of "giving shape to the software of the future". PKSHA believes that Generative AI, including large-scale language models (LLM) that are the basis of ChatGPT, etc., will further accelerate the social implementation of AI and is expanding its investment in startups that work on social implementation of AI, reform of industrial structure, and creation of new businesses..

Based on the experience of PKSHA and Matsuo Institute in AI research and development and social implementation to date, the fund will market opportunities for Generative AI unique to each industry, in addition to venture investment in new market opportunities in the Generative AI domain. Furthermore, PKSHA will continue to invest in Asia, and by staying connected to the social changes that are emerging in Asia, it hopes to serve as a bridge between Japanese and Asian industries. Click here for the original press release.

Funding Information

[Seed] Helical Fusion Inc., a Nuclear Fusion Startup, Raises Approximately 800 Million Yen in Funding (Announced on April 5, 2023)

Credit:Company Press Release

Helical Fusion Co., Ltd., which aims to develop a helical fusion reactor, has raised approximately 800 million yen in a seed round with SBI Investment Co.,Ltd. as the lead investor.

Helical Fusion Co., Ltd., was established in October 2021 with the vision of "mankind evolves through nuclear fusion" and aims to implement nuclear fusion energy in society using the magnetic field confinement method. While various nuclear fusion methods have been developed worldwide, Japan has created a helical method that stably confines high-temperature plasma using a superconducting helical coil with a DNA-like double helix structure. Helical Fusion Inc. aims to develop the world's first steady-state fusion reactor that incorporates the helical method with its cutting-edge technology and is expected to be completed in 2034.

Helical Fusion Co., Ltd., intends to use the funds raised this time to accelerate the development of cutting-edge technologies and business necessary for the social implementation of fusion reactors to realize a decarbonized society safely and sustainably as an energy source that does not emit CO2. Click here for the original press release.

[Series A] Metagen Therapeutics Raises a Total of 1.1 Billion Yen in Series A First Close (Announced on April 5, 2023)

Credit:Company Press Release

Metagen Therapeutics Inc., a company that promotes medical care and drug discovery based on intestinal bacteria research, has raised a new investment in addition to existing investors Fast Track Initiative,Inc., JAFCO Group, and Keio Innovation Initiative Inc. With JIC Venture Growth Investments, a sovereign wealth fund, as the underwriter, Metagen Therapeutics raised 1.1 billion yen in the Series A first close. With this funding, the company's total funding amount is 1.33 billion yen.

Metagen Therapeutics Inc., a university-launched venture that creates social impact through medical care and drug discovery based on gut microbiome research, was established in January 2020 with the mission of "continuing to fulfill the patients' wishes through microbiome science". Metagen Therapeutics was co-founded by a doctor from Juntendo University and researchers from Keio University and Tokyo Institute of Technology to promote the social implementation of "intestinal microbiota transplantation therapy (FMT)" and "reverse translational drug discovery starting from FMT". In January 2023, Metagen Therapeutics Inc. served as a joint research institute to conduct clinical research on "antimicrobial combined intestinal FTM" for ulcerative colitis, which has been approved as an advanced medical treatment. Joint research with Cancer Research Center Central Hospital has also started in Feburary 2023.

Research on intestinal bacteria has made significant progress in recent years, and its relationship with various diseases has been clarified. FMT is being implemented in other countries as a treatment, and microbiome drug discovery research is active. With this funding, Metagen Therapeutics will support and promote the social implementation of FMT by establishing an "intestinal microbiome bank" to connect patients who need intestinal microbiota and donors who provide intestinal microbiota, as well as accelerate the development of internationally competitive microbiome medicines originating in Japan through reverse translational drug discovery starting with FMT. Click here for the original press release.

[Series C] SkyDrive, a Developer of Electric Flying Cars, Raises Additional Series C Funding (Announced on April 6, 2023)

Credit:Company Press Release

SkyDrive Inc, a developer of "flying cars" and "logistics drones," has raised additional Series C funds following September 2022. SkyDrive Inc. raised funds through a third-party allocation of new shares from the Sky Innovation Investment Limited Liability Partnership, a target fund found formed by Innovation Engine Corporation to invest in SkyDrive, in addition to a third-party allotment of new shares from MUFJ Bank, Ltd.

SkyDrive Inc. was established in July 2018 to "lead the once-in-a-century mobility revolution". The company is developing "flying cars" and "logistics drones" to realize the future of "utilizing the sky for daily transportation".
The development of the "flying car" is the only manned flight test in Japan and is involved in system design as a member of the public-private council and is currently developing a two-seater aircraft which is expected to be in service in the Osaka Bay Area by 2025. The "logistics drones" capable of transporting 30 kg of cargo are used at work sites, mainly in mountainous areas.

SkyDrive Inc. intends to use the funds raised this time, as it did in September 2022, to accelerate aircraft development, business promotion, and medium-to-long-term growth by strengthening its management base to realize the "once-in-a-century mobility revolution".Click here for the original press release.

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