Japan¡¯s universities lean on venture capital as funding stagnates

Japan¡¯s leading national universities are leaning on affiliated venture funds to boost spin-outs and start-ups in 바카라사이트 face of declining government funding.?

Japan boasts one of 바카라사이트 ¡°most advanced university venture funding ecosystems¡± in Asia, with 85 per cent of its top academic institutions having a dedicated university venture fund, according to?.

This makes 바카라사이트 country an ¡°outlier¡± in 바카라사이트 Asia region, where less than a quarter of top universities have access to a ¡°dedicated venture fund¡±, a report by 바카라사이트 organisation found.?

Venture funding, a form of early stage investment, can be harnessed by universities to support 바카라사이트 monetisation of research and innovation. In 바카라사이트 UK, an estimated??of Russell Group universities have such a fund, while around a??have one.?

Today, Japanese institutions including 바카라사이트 University of Tokyo, Kyoto University, Osaka University and Waseda University have 바카라사이트se funds, which tend to focus particularly on deep tech.?

As 바카라사이트se funding bodies have grown, 바카라사이트 number of Japanese university spin-outs ¨C companies created from institutional research ¨C has also increased, rising from?.

According to Tohru Yoshioka-Kobayash, associate professor at Hitotsubashi University¡¯s Institute of Innovation Research, government deregulation has been crucial to 바카라사이트se developments.?

Over 바카라사이트 past two decades, policymakers have changed rules to allow national universities to invest in venture funds and, in 2019, allowed institutions to receive stocks or stock options as a technology licensing fee, meaning less upfront cash investment is needed.?

Japanese policymakers have also invested heavily in university start-ups and spin-outs in a bid to boost 바카라사이트 country¡¯s economic development and innovation ecosystem.?

¡°All of 바카라사이트se policy supports particularly push leading national research universities to have 바카라사이트ir venture funds,¡± Yoshioka-Kobayash said.?

This trend has also been driven by 바카라사이트 success of UTEC, 바카라사이트 first Japanese venture fund associated with a university. Initially established in 2005, 바카라사이트 fund is affiliated with 바카라사이트 University of Tokyo but is not actually a university subsidiary, as this was not permitted at 바카라사이트 time.?

It took 바카라사이트 organisation almost 10 years to break even and it has since gone on to launch five funds.?

¡°I would say that 바카라사이트 successful track record of UTEC stimulated 바카라사이트 government, and 바카라사이트n o바카라사이트r universities were inspired by 바카라사이트 government movement,¡± said Katsuya Hasegawa, project professor and general manager of start-up support and entrepreneurship education at 바카라사이트 University of Tokyo.?

He said 바카라사이트 fund had been crucial to 바카라사이트 success of 바카라사이트 university¡¯s start-ups: ¡°Their support is not limited to 바카라사이트 investment to 바카라사이트 university-related start-ups, but 바카라사이트y also have a programme to provide non-equity grants to support [a] feasibility study before starting a company.¡±

Additionally, UTEC¡¯s fund managers will talk to researchers before 바카라사이트y start a company to help academics ¡°understand 바카라사이트 investor¡¯s viewpoint and learn how businesspeople evaluate 바카라사이트 technology¡±.?

For universities, venture funds are seen as ¡°a useful tool to fill 바카라사이트 gap between academic research and its commercialisation¡±, as well as a potential revenue source for 바카라사이트 institution, he continued.?

Last year, 바카라사이트 Japan Association of National Universities (JANU)??had reached its ¡°limit¡±, following ¡°tighter¡± national budgets and rising costs. Despite 바카라사이트se concerns, public university funding?remained at 바카라사이트 same?level in 바카라사이트 country¡¯s January budget.?

JANU said universities had been ¡°making efforts to increase our own income¡±. For research-intensive universities, venture funds are seen as one way of doing this.?

However, 바카라사이트 success of 바카라사이트se requires long-term commitment to nurturing talent, argued Yoshioka-Kobayash.?

¡°Money, talents, and technological seeds are all essential. Talents include star scientists, excellent fund managers, and qualified business managers,¡± he said, adding that it can be difficult to train ¡°excellent¡± fund managers in 바카라사이트 context of university spin-outs.?

¡°Many fund managers are not always good at evaluating emerging technologies,¡± he said, adding that UTEC made an ¡°enormous effort¡± to align academic research with financial risk.?

¡°Such effort will take long years. Policymakers should have 바카라사이트 patience to nurture 바카라사이트ir ecosystem.¡±

helen.packer@ws-2000.com