2024.7.08

Real Tech Fund Completes Second Close of 4th Fund

Many Existing Fund Partners Continue Their Commitment

UntroD Capital Japan Co., Ltd. (President: Akihiko Nagata, hereafter “the Company”) has completed the second close of its fourth domestic fund, the “Real Tech Fund 4 (RTF4),” which is focused on supporting seed and early-stage deep tech startups. In this closing, the Organization for Small & Medium Enterprises and Regional Innovation, Japan, and Tokyo Century Corporation, both partners in existing funds, joined, resulting in more than half of the RTF4 partners being continuous investors from previous funds. Additionally, Shinto Industries Co., Ltd., a major casting equipment manufacturer headquartered in Aichi Prefecture, has newly joined as a partner.

We will continue to raise funds towards our final goal of ¥13 billion, aiming to build an ecosystem that fosters deep tech startups from regional to global scales in collaboration with participating companies.

Fund Management Total: ¥30 Billion, Aiming for Further Ecosystem Expansion

With the second close of RTF4, the total management amount of the Real Tech Fund has reached approximately ¥30 billion domestically and internationally. In addition, with the preparation for the establishment of the Crossover Impact Fund announced on June 3, 2024, we will not only continue our hands-on support from the seed and early stages but also provide funding for late-stage IPOs focused on solving social issues and support sustainable growth post-IPO to enhance corporate value. This will allow us to support deep tech startups from inception to growth, aiming to expand the ecosystem further.

RTF4 Partners (in alphabetical order):
  • Ikeda Senshu Bank, Ltd. (Headquarters: Osaka, Japan)
  • Okasan Securities Group Inc. (Headquarters: Tokyo, Japan)
  • Kanamori Sangyo Co., Ltd. (Headquarters: Toyama, Japan)
  • Kobashi Holdings Co., Ltd. (Headquarters: Okayama, Japan)
  • Shinto Industries Co., Ltd. (Headquarters: Aichi, Japan)
  • Shin Nihon Denkoh Co., Ltd. (Headquarters: Tokyo, Japan)
  • Organization for Small & Medium Enterprises and Regional Innovation, Japan (Headquarters: Tokyo, Japan)
  • Tokyo Century Corporation (Headquarters: Tokyo, Japan)
  • Honda Motor Co., Ltd. (Headquarters: Tokyo, Japan)
  • Matsui Securities Co., Ltd. (Headquarters: Tokyo, Japan)
  • Mizuho Bank, Ltd. (Headquarters: Tokyo, Japan)
Overview of RTF4:
  • Investment Target: Deep tech startups across Japan that contribute to solving global and human challenges through advanced technology.
  • Investment Areas: Bio, aerospace, electronics, agri/marine, environment/energy, new materials, etc.
  • Investment Stage: Primarily seed and early-stage, with some middle-stage investments.
  • Investment Stance: Lead investor providing hands-on support.
  • Fund Total: ¥13 billion (maximum goal)
  • Operating Period: 10 years from October 2023 (with a possible extension of up to 3 years)

About UntroD Capital Japan Co., Ltd.

UntroD Capital Japan Co., Ltd. was established in 2015 to socially implement deep tech startups with innovative technologies that address global and human challenges. Since then, we have been the lead investor providing hands-on support to seed and early-stage startups. To date, we have managed Real Tech Fund 1-4 (domestic funds), Real Tech Global Fund 1-2 (global funds), and Real Tech Growth Fund 1 (domestic fund), with a total management amount exceeding ¥30 billion. In June 2024, we rebranded to “UntroD,” meaning “untrodden,” embodying our commitment to pioneering unexplored territories to prove their economic viability, thereby creating a sustainable system where capital and talent continue to flow.

Contact:
UntroD Capital Japan Co., Ltd.
PR Contact: Narita
https://untrod.inc/contact

Important Notice Regarding This Release

The general partner of Real Tech Fund 4 Limited Partnership (hereafter “the Fund”) is Real Tech Fund 4 General Partner, a registered qualified institutional investor.

The information provided in this release is based on the date of creation of this release, unless otherwise specified, and there is no guarantee that the information contained herein will remain accurate after the date of creation. This release is based on information deemed reliable by the Company; however, the contents have not been independently verified. The Company does not make any representations or warranties regarding the accuracy, adequacy, or completeness of the information contained in this release.

The outline of the fees related to the Fund is as follows:

  • Management Fee: An amount equivalent to 2.0% to 2.5% of the committed capital per fiscal year (decreasing annually by a fixed rate)
  • Preferred Return: 20% of the distributable amount until the total distribution reaches 100% to 200% of the committed capital / 30% of the distributable amount for any distribution above this
  • Costs Paid from the Fund’s Assets: Costs related to the formation of the Fund, acquisition and disposition of the Fund’s assets, and other expenses related to the Fund’s operations

Investing in the Fund involves various risks, including the potential loss of principal. Additionally, there are restrictions on the voluntary withdrawal of partners from the Fund and the transfer of partnership interests. When investing in the Fund, you should make your investment decision with a full understanding of the various risks associated with the investment at your own responsibility. This release does not provide any advice regarding such decisions.

The rights and obligations of the partners of the Fund are ultimately determined by the partnership agreement of the Fund (hereafter “the Agreement”). In the event of any inconsistency or conflict between the contents of this release and other documents related to the partnership interests, the terms of the Agreement shall prevail.