Deeptech in Japan (Jolt Capital)

Summary

• More than €45,3b of equity capital was invested in Japanese companies across over +17k deals over a 10-year period.p.6
• Deeptech companies comprise approximately 30% of the total Japanese corporate investment universe.p.6
• Computing & AI companies captured 14% of deal volume while accounting for 20% of all capital invested across VC and growth deals.p.7
• The Hidden Universe of un-funded deeptech companies consists of 6,274 businesses, representing 58% of identified deeptech firms in Japan.p.14
• Japanese small and medium enterprises with [11-250] FTEs filed +49% of active patents in Japan.p.16
• Deeptech potential is spread across Japan, with 46% of top 25% JPS-ranked patents originating from companies outside Tokyo.p.12

Key insights

1. Computing & AI companies attract 14% of deal volume but represent 20% of total capital invested across VC and growth rounds.p.7
2. Deeptech innovation is broadly distributed across Japan, as companies outside Tokyo account for 46% of the top 25% JPS-ranked patents.p.12
3. An untapped growth funding gap exists in Japanese deeptech, where 58% of identified companies have not received equity funding since at least 2010.p.14
4. Japanese SMEs with [11-250] FTEs generate a significant share of IP, filing +49% of active patents.p.16
5. Life Sciences and Electrical & Electronic Engineering companies account for 49% of patent applications classified under Health CPC codes.p.17
6. International PCT patent filings in Japan grew rapidly in computer technology (+201%) between 2010 and 2023, while environmental technology filings contracted (-52%).p.18
7. More than 630 Japanese SMEs with [51-250 FTEs] hold active patents, representing a growing proportion across top patent quality quartiles.p.21
8. High-quality IP based on Jolt Patent Scores is present across more than 2,300 active patent-holding firms in Japan's Hidden Universe.p.23