Target Information

Symbiobe Inc., founded in January 2021, is a venture company originating from Kyoto University, located in Nishikyo-ku, Kyoto. The company is spearheaded by CEO Koji Ito and aims to utilize marine photosynthetic bacteria to fix CO2 and N2, transforming these gases into bio-polymers. Symbiobe has successfully constructed a demonstration plant for the cultivation of marine photosynthetic bacteria, achieving effective greenhouse gas fixation. The company has developed three products from the fixed gases: Air Silk® (a protein fiber), Air Feed® (aquaculture feed), and Air Fertilizer® (nitrogen fertilizer), thereby advancing its proprietary greenhouse gas resource recovery platform.

Industry Overview in Japan

The environmental technology sector in Japan has been rapidly evolving, particularly in the fields of carbon capture and sustainable resource management. This sector has gained traction due to Japan's commitment to achieving a decarbonized society by 2050, which has spurred investments in innovative technologies that focus on reducing greenhouse gas emissions. With a focus on cutting-edge research stemming from leading institutions like Kyoto University, the industry is poised for significant growth.

Many startups, especially those emerging from research universities, are developing solutions that support this green transition. The integration of academic research with practical applications is crucial, as it leads to technological advancements that can be commercialized effectively. This trend emphasizes the importance of partnerships between academic institutions, venture capital, and industry leaders.

Additionally, government incentives and regulatory frameworks are being established to support green technologies, encouraging innovation in the marketplace. Companies like Symbiobe reflect this growing trend, showcasing how academia's research can lead to viable environmental solutions.

Rationale Behind the Deal

The decision for Kyoto iCAP to invest approximately 80 million yen in Symbiobe stems from the belief that the technology for greenhouse gas fixation and resource recovery using marine photosynthetic bacteria can significantly contribute to realizing a decarbonized society. By securing additional funds, Symbiobe aims to accelerate research and development as well as practical applications of its marine photosynthetic bacteria cultivation plant business.

Investor Information

Kyoto University Innovation Capital Co., Ltd. (Kyoto iCAP), a wholly-owned subsidiary of Kyoto University, plays a pivotal role in fostering innovation at the university's research center. The company focuses on investing in and supporting ventures derived from the research outcomes of national universities. Currently, Kyoto iCAP manages two funds: the KYOTO-iCAP 1st Fund, established in January 2016 with a total capital of 16 billion yen, and the KYOTO-iCAP 2nd Fund, established in January 2021 with a total of 18 billion yen. These funds are designed to support the practical application of Kyoto University's fundamental research outcomes over long periods, with up to 20-year maturity periods for the first fund and 17 years for the second.

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The additional investment in Symbiobe by Kyoto iCAP is seen as a strategic move that could yield significant returns in the long run. Given the increasing global emphasis on sustainability and reducing greenhouse gas emissions, the technologies being developed by Symbiobe align well with these trends. The proprietary cultivation methods for marine photosynthetic bacteria position the company uniquely in the burgeoning environmental sector.

Furthermore, with the backing of Kyoto iCAP, Symbiobe has access to invaluable resources and expertise that can enhance its research and development efforts. This support is crucial for validating their technology and potentially scaling their operations effectively. The estimated total funding of approximately 800 million yen indicates strong investor confidence in Symbiobe's prospects.

In conclusion, this investment is likely a good opportunity, as it is aligned with global sustainability goals and capitalizes on the growing demand for innovative environmental solutions. Companies that can effectively contribute to greenhouse gas reduction are set to benefit from both market demand and potential governmental support, making this a timely and strategic investment.

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