University of Tokyo will invest an initial $89m in the fund, which will also seek external limited partners.

University of Tokyo (UTokyo) is launching a ¥60bn ($536m) fund to invest in its companies, Nikkei reported yesterday.

The university itself is putting up $89m to start the fund and it will seek contributions from external investors to grow it to its target size over a period of 10 years. If it reaches its target, it would be the largest university venture fund in the country as things currently stand.

The fund will support companies emerging from the institution, aiming to launch 300 new ventures and increase the number of unicorns in UTokyo’s ecosystem.

Successful portfolio companies may also receive direct investment from UTokyo, once a legal amendment in April 2022 takes effect that will allow universities in Japan to do just this.

The university is set to form a financial management department to handle investment decisions and is currently consulting undisclosed experts to finalise details.

UTokyo has already backed more than 110 companies through its venture capital affiliate University of Tokyo Edge Capital Partners (UTEC).

UTokyo had formed 323 companies as of 323, leading the pack and followed by Kyoto University with 222, according to the Ministry of Economy, Trade and Industry.

In addition to launching the fund, the university will aim to turn the Hongo district around its campus into an innovation hub akin to Silicon Valley.

Thierry Heles

Thierry Heles is the editor of Global University Venturing, host of the Beyond the Breakthrough interview podcast and responsible for the monthly GUV Gazette (sign up here for free).