Target Information

Coral Capital has publicly announced its investment in ZettaJoule, a Japanese nuclear energy startup founded in January 2024. Following a seed investment, Coral has also participated in the company’s second funding round, which concluded in March 2025. The second closing was led by Globis Capital Partners, with other investors including Archetype Ventures from Japan and HAX from overseas.

ZettaJoule aims to implement proven advanced reactor technologies from Japan in international markets, partnering with domestic suppliers. In just a year and a half since its inception, ZettaJoule has assembled an impressive team of top domestic researchers alongside international experts, including the former CEO of the Canadian Nuclear Regulatory Commission. Contracts to begin construction of a demonstration reactor project with strategic partners in Texas, USA, are in the final stages.

Industry Overview in Japan

There is a global reassessment of nuclear energy, driven by concerns regarding decarbonization, energy security, and the demand for electricity powered by AI technologies. Investment in Small Modular Reactors (SMRs) is sharply increasing in various countries, despite rising electricity costs in areas like Europe, Japan, and California, which have heavily promoted renewable energy as a solution. Data suggesting a drop in renewable energy generation costs has not mitigated the reality of escalating power costs in some regions.

In the U.S., TerraPower, which is supported by Bill Gates, has raised over $1 billion to drive research into fast reactors and advanced materials, accelerating commercialization in collaboration with the Department of Energy. The company aims to address the massive electricity demands of AI and cloud data centers with nuclear-derived clean energy. Meanwhile, the Canadian government is actively promoting the practical application of SMRs through regulatory reforms and investment incentives.

Although Japan's nuclear development temporarily stalled, it possesses exceptional high-temperature gas reactor technology accumulated over 25 years at the High-Temperature Engineering Test Reactor (HTTR) in Ibaraki Prefecture. High-temperature gas reactors are superior in terms of efficiency, safety, and application markets compared to conventional light-water reactors, which are currently predominant in the industry.

ZettaJoule seeks to leverage Japan's advanced reactor technology and work with leading Japanese suppliers to implement it overseas. This may set the stage for future imports of high-temperature gas reactors designed for international markets.

Rationale Behind the Deal

This investment aligns with the rising global focus on nuclear energy as a clean and stable power source amidst increasing energy demands and climate change concerns. By advancing high-temperature gas reactor technology, ZettaJoule aims to contribute to a sustainable energy future while establishing a foothold in the burgeoning nuclear sector. The ongoing investment from Coral Capital underscores the strategic importance of ZettaJoule’s approach in leveraging Japan's technology and expertise to navigate global energy markets effectively.

Investor Information

Coral Capital is a venture capital firm committed to investing in innovative technology-focused startups. With a track record of nurturing groundbreaking solutions in various sectors, Coral Capital underscores its strategic focus on the evolving energy landscape with this investment in ZettaJoule. The firm believes that the transition towards cleaner energy solutions, particularly through nuclear technology, offers significant long-term potential for both financial returns and societal impact.

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The investment in ZettaJoule represents a timely entry into a sector poised for growth, especially as global energy dynamics shift towards cleaner alternatives. High-temperature gas reactors, with their inherent safety and efficiency advantages, could redefine nuclear power's role in the energy mix. Coral Capital’s engagement in this venture highlights its foresight in recognizing the potential of advanced reactor technologies, particularly in meeting industrial thermal demands and providing sustainable energy solutions.

Furthermore, the company's proactive exploration of international markets may accelerate the commercialization of high-temperature gas reactors, a step necessary for Japan to retain its competitive edge in nuclear technology. The current global momentum towards nuclear energy, via investments in SMRs, presents a critical opportunity for ZettaJoule to capitalize on this trend, securing a strategic position in the market.

While venture investments carry inherent risks, the potential rewards, particularly in CO₂ reduction and energy independence, make ZettaJoule a compelling opportunity. Investing in startups that navigate political and regulatory complexities while tapping into international demand may prove essential for revitalizing Japan's nuclear capabilities in the face of global challenges.

In conclusion, the decision to invest in ZettaJoule is well-founded. The combination of innovative technology, a strong leadership team, and a favorable global climate for nuclear energy positions this startup as a promising player in reshaping the future of energy provision through advanced reactor solutions.

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