How UTokyo IPC is Transforming Japan’s Deep Tech Ecosystem

In Japan’s deep tech ecosystem, one startup support program stands out for its exceptional approach. The 1stRound program, operated by UTokyo Innovation Platform (UTokyo IPC), represents Japan’s largest academia-affiliated startup support initiative. 

With a track record of supporting 102 teams over nine years, the program boasts remarkable statistics: around 90% funding success rate within one year of support, and over 50% success rate in securing major grants.

What drives such extraordinary results? The answer lies in the unique support philosophy of 1stRound Director Hideki Nagasaka, who boldly declares his program offers “nothing but benefits for startups.” Through his “frictionless” approach—eliminating every possible barrier—Nagasaka is not only overturning conventional wisdom about deep tech support in Japan but also seeking to transform the very culture of entrepreneurship.

Father’s Legacy and Silicon Valley

Nagasaka’s entrepreneurial spirit traces back to an unexpected source: his father. “My father was actually one of Japan’s early entrepreneurs,” Nagasaka reflects. His father’s work epitomized deep tech of its era. In the 1980s, he partnered with researchers from Caltech to develop algorithms for rapidly calculating submarine positions from the ocean surface.

It was pure deep tech—the challenge of determining what value such algorithms could create was fundamentally a narrative question. When my father launched the technology in the US, he wasn’t concerned about equity splits or ownership structures. He simply requested the rights to develop the business in Japan. (Nagasaka)

The adaptation of submarine detection algorithms to television recording systems exemplified the US prowess in military-to-civilian technology transfer. In an era before automated recording systems, viewers had to manually press record at broadcast time. The innovation compressed complex information—”what time, what day”—into an 8-digit code for simple recording scheduling.

This became the birth of Gemstar Japan, which dominated the market with G-Code (aka “VCR Controller Code” in the US). During a time when technology commercialization concepts were nascent, Nagasaka’s father pitched to media companies, coordinated with manufacturers, and ultimately conquered the Japanese market. While digital broadcasting and EPG (Electronic Program Guides) have reduced G-Code usage, it remains an exemplary case of unexpected technology commercialization.

I was always captivated by the idea of projecting one’s purpose onto society—truly executing what you want to do under your own control. That sense of autonomy and impact fascinated me. (Nagasaka)

This paternal influence became the wellspring of Nagasaka’s entrepreneurial mindset. After graduation, he pursued studies at UC Berkeley, located in the heart of Silicon Valley. The year 2010 marked a pivotal moment—a decade after the dot-com crash, new waves of innovation were emerging.

I witnessed an environment where students sitting next to me were launching ventures that would be acquired by Adobe. I experienced firsthand how rapidly technology could be implemented in society. (Nagasaka)

This was the era of SaaS dominance, when “data mastery meant business mastery,” and statistics became one of IT’s most valuable skills. Looking back, the foundation for today’s generative AI boom was being laid during this period.

While experiencing technology commercialization at its cutting edge, Nagasaka ultimately chose to return to Japan due to language barriers and cultural differences. However, this apparent detour proved invaluable for his later work in building Japan’s deep tech ecosystem. His exposure to Silicon Valley’s fusion of technology and capital, and especially the culture of “rapid technology implementation,” would define his subsequent career trajectory.

Upon returning to Japan, Nagasaka joined Deloitte Tohmatsu Consulting’s Venture Support division, supporting new business development and open innovation for major automotive OEMs. He aimed to apply his Silicon Valley experience with technology commercialization to the Japanese context of large enterprises and startups. However, he soon confronted a fundamental contradiction.

Startup support felt like studying abroad to me. Someone who has never studied abroad, no matter how knowledgeable, cannot speak from the heart about the experience—there are insights that only come from direct experience. Similarly, venture support requires actually launching and managing a venture to provide truly meaningful assistance. (Nagasaka)

This conviction led Nagasaka to co-found an IoT startup focused on drone control solutions in non-GPS environments. He experienced every aspect of startup management—securing technology patents, international hiring, market expansion—and ultimately achieved funding from an accelerator. However, as he deepened his entrepreneurial learning, he recognized that his strengths lay in ecosystem-wide development rather than individual business operations. He entrusted the business to his co-founder and committed to transitioning into startup support.

Four Perspectives, One Philosophy

In 2020, Nagasaka joined UTokyo IPC. He organized his experiences into four perspectives and began constructing an integrated support model.

Looking back at my career, I identify four crucial experiences: technology commercialization in Silicon Valley, supporting Japanese corporate open innovation, founding and managing a deep tech startup, and investing as a university-affiliated VC. The 1stRound program emerged from combining these four perspectives. (Nagasaka)

1stRound’s defining characteristic is “non-equity” support—providing up to 10 million yen without taking equity stakes. This model, benchmarked against Stanford University’s StartX (a Stanford-affiliated accelerator program providing non-equity startup support), embodies a deep philosophy.

To address this structural challenge, 1stRound constructed a unique business model: receiving compensation from large corporations and investing all funds into startup support.

Large enterprises want university technologies but lack access to research information. Universities want to commercialize their technologies but cannot align with private companies as educational and research institutions. Nagasaka’s support essence involves removing all friction from these interactions.

UTokyo IPC’s dual role—operating VC funds while maintaining public mission as a subsidiary of Japan’s leading university—enables this fair, hub-like function. The non-equity structure provides exceptional incentives for startups and aspiring entrepreneurs.

Global Expansion

Currently, 1stRound is rapidly expanding domestically and internationally. Participation has grown to 25 universities and 4 research institutions, with JAXA (Japan Aerospace Exploration Agency) and RIKEN joining to strengthen support for space technology and basic science startups.

Corporate partnerships continue expanding. Recent additions include Ajinomoto, ENEOS Xplora, Kansai Electric Power, Kyushu Electric Power, Toho Gas, and Sanix across food, energy, utilities, and environmental sectors. Combined with existing partners—JR East Startup, Mitsui Sumitomo Insurance, Mitsui Fudosan, Mitsubishi Heavy Industries, Mitsubishi Estate, Mitsubishi Corporation, Daikin Industries, Honda Innovations, Hitachi Construction Machinery, and Hankyu Hanshin Holdings—the program now includes 24 leading Japanese corporations.

Program results are outstanding. Over nine years, 102 teams have been selected, achieving around 90% funding success within one year of support and over 50% success in securing major grants. Notably, over half of each cohort achieves collaboration with corporate partners—demonstrating actual business opportunity creation beyond mere funding.

Nagasaka’s ambitions extend further. International expansion includes partnerships with MassChallenge in the US and Germany’s Cyber Valley. Particularly noteworthy is the “mutual equal commitment” model for international cooperation.

This framework involves 1stRound providing funding to overseas startups while partner international accelerators provide equivalent funding to Japanese startups. Rather than simply participating in overseas programs and receiving bills, this creates equal relationships enabling deeper commitment and sustained cooperation.

US, Germany, and Japan rank among the top in GDP, R&D investment, and researcher numbers. This three-nation collaboration creates an environment where startups can receive non-equity support across all locations while smoothly expanding operations. Given such favorable conditions, startups would inevitably choose this path. This completes the world’s premier deep tech support program. (Nagasaka)

1stRound’s support methodology also distinguishes it from conventional accelerators. Assuming selected teams already possess necessary skills and potential, the program avoids classroom lectures and traditional mentoring. Support centers on funding and practical assistance, including leveraging UTokyo IPC’s credibility for corporate introductions.

Instead of mentoring, we conduct monthly one-hour sessions reviewing previous month’s progress and setting next month’s objectives. Over six months, this totals just six hours—sufficient for teams selected from over 400 applications. These teams understand their requirements and demonstrate excellence. We prioritize practice over mentoring. (Nagasaka)

This approach serves as rehearsal for VC fundraising which naturally comes after 1stRound’s 6-month support. Additionally, the startups receiving 1stRound’s support maintain perpetual access to the UTokyo IPC’s community, enabling mutual advice-seeking with other program alumni through established peer support systems.

Cultural Transformation

Five years after his initiative in 1stRound, Nagasaka’s vision continues evolving. While initially envisioned functions have largely materialized, he now seeks broader cultural transformation.

Joining early-stage deep tech teams or conducting recruitment remains extremely challenging. Japan’s smaller population around startups complicates hiring, and international recruitment involves complex initial processes. Careful public relations and communication efforts explaining technology applications are essential, yet talent remains elusive.

Furthermore, Japan’s market will shrink due to aging demographics. Targeting niche segments within a contracting market—can deep tech companies achieve significant success? Absolutely impossible. Global expansion is mandatory. While destined for international markets from inception, many teams stagnate at initial customer acquisition. (Nagasaka)

Nagasaka focuses on community solutions, exemplified by groups like the PayPal Mafia and Palantir Mafia. The PayPal Mafia formed strong networks through shared experiences navigating payment industry regulations and fraud prevention during challenging startup phases, with alumni investing in and collaborating with each other. Similarly, the Palantir Mafia functions as a mutually supportive community sharing battlefield and challenging field experiences. Japan lacks communities where internationally capable entrepreneurs gather and provide healthy competition.

Nagasaka wants to establish the “healthy metabolism” and “constructive jealousy” culture he experienced at UC Berkeley in Japan. In entrepreneurial contexts, jealousy represents healthy competitive spirit—seeing others’ success and thinking “I can’t fall behind”—creating environments where peers mutually inspire each other.

At UC Berkeley, I watched conservative people from major banks transform dramatically through 2-3 year MBA programs. Individuals initially saying ‘I’m not sure if I can speak English properly’ became entrepreneurially inspired, with others eventually asking them ‘Why haven’t you started a company?’ The environment truly changes people.

Culture isn’t changed—it’s created. When people gather, they form culture. Change is impossible because existing cultures exist for comfort and familiarity. When individuals’ consciousness shifts, they leave to create entirely new environments where they become influenced.

Ecosystems change through major successes, not systems. Creating one major success will be great stimulus to drive momentum positively. (Nagasaka)

To overcome these challenges, Nagasaka clearly defines “winning requirements”: technology, international expansion, strong communities, and inspiring leaders—elements requiring steady implementation.

Japan’s deep tech ecosystem transformation cannot happen overnight. However, Nagasaka’s “frictionless support philosophy” and “culture creation” challenge are generating new momentum. 1stRound’s expansion across 25 institutions and internationally is opening new possibilities for Japan’s innovation ecosystem.