- Venture Capital, and why choose UTEC

Nori

Could you tell me about how you decided to work at UTEC and your activities in your current role?

Yuki

I studied machine learning as an undergrad at the University of Tokyo while working as an intern data scientist at a startup. Since then, I wanted to work closely with entrepreneurs. When I was in my 4th year, many startups in the AI field had gone public and I started to focus on VC firms as the accelerator to these IPOs. At the same time, UTEC had started sourcing investment candidates using data science, and that is when I joined first as a research assistant.

My current role involves three main activities. Sourcing of new investment opportunities, hands-on value add support for existing portfolio companies, and other activities that contribute to the fund. I especially find the third activity very unique. At UTEC, each member leverages their strength and contributes to the fund. For example, members with extensive international experience will perform international outreach activities while those close to academia builds network with universities. As for me, I lead the sourcing of new investment opportunities through data science and contribute to the knowledge management of the fund.

John

I grew up in Geneva, Switzerland and then got my bachelors and masters at the University of Cambridge in the UK. After that I worked for a pharmaceutical manufacturing division in a chemicals company. My work was fulfilling, but I wanted to be involved in the growth of scientific and technological innovation. Hence, I decided to pursue a career in deep tech venture capital. To make this transition, I applied to the MBA program at Harvard Business School and was admitted. However, the world entered the pandemic, and I deferred my entry.

The deferral of my MBA actually turned out to be a great opportunity for me. Even if I was unpaid, I wanted to experience working in a VC. So I approached UTEC, whose name I had heard as the leading Japanese deep tech VC fund. I worked as an intern for two months and then became an Associate.

My activities in my role involve those described by Yuki. The one I feel is especially UTEC like is the hands-on value add support to our portfolio companies. UTEC has a hands-on support style from the early pre-seed, seed stages. Our relationship with the entrepreneurs is very close, we speak with them almost every day. I think it is rare for VCs to have such a close relationship with their portfolio companies.

Azusa

I had wanted to contribute to solving social issues through innovations based on science, and hence I pursued pharmacology in university. After getting my masters, I worked at a consulting firm in the field of R&D strategy and new business strategy development for pharmaceutical companies and medical device companies. During this time, I realized that the life science business has no borders and became worried that I did not possess international experience which led me to pursue an MBA in London. I met UTEC members on their business trip in London, and eventually joined UTEC once I returned to Japan.

Japan has strong research in its universities. However, the commercialization of this research has not been successful. This is a major issue and the venture capitalist profession was worth the challenge to solve this issue. I chose UTEC among the venture capital firms because it has a mission to “solve issues of humankind.” This may sound naïve, but I really felt that UTEC members believed in this mission. I felt I wanted to work with people like them.

- The reality of working at UTEC

Nori

How do you feel having actually worked at UTEC

Yuki

I was glad to have had the opportunity to be involved in sourcing and value add activities from when I just started. In the beginning, I would work closely with a partner to form an investment thesis, but by the end of the first month I was presenting to the investment committee. After half a year, I was leading my own investments and building relationships with entrepreneurs from newly sourced startups.

John

True. I was also surprised to be presenting to the investment committee in my first month at UTEC.

Yuki

I also appreciate UTEC's culture that respects the philosophy of individual capitalists. In venture capital investing, it is not necessarily the startups that everyone agrees are good which go on to become successful. Rather, it is often the start-ups that people's opinions are split upon that render returns. Especially in deep tech investing, it takes long for the start-ups to become successful and hence judgement on investments is difficult. Our investment committee discussions are very intense, but our members hold respect for the way each venture capitalist thinks. This is probably because our members have personally experienced and understand the difficulty of making successful deep tech investments.

John

UTEC has a culture that respects the individual venture capitalist's ability to believe. To start with, the capitalist themselves must strongly believe in the upside that “this technology or science will change the world.” We openly discuss each investment proposal, but the aim of the discussion is not to reject the investment but to identify the risks in the investment so we can support the company in mitigating these risks post investment. Even if it is the Associate proposing an investment, the culture of respecting venture capitalist's views remains unchanged. Everyone is respected equally in the fund regardless of their titles.

Azusa

I think another characteristic of UTEC is that when there is something one wants to do, the members proactively form a team to achieve the new objective. For example, teams have been formed from casual daily discussion such as “it would be great if we could do something with international outreach” or someone would share “I want to try this, but anyone interested? Please reply here.” I am fond of this culture where people do not stick to their job descriptions and can collaborate based on their pure interests and missions.

- UTEC and the great thing about the Venture Capital
Profession

Nori

“The world may change depending on our actions;” I don't think there are many professions where you can feel this way. I believe that the best job in the world is that of an entrepreneur and the second best is job is that of a venture capitalist. What moments in your experience gave you the most fulfilment?

John

I believe I feel the most fulfilment when I can add value to the portfolio companies. I support our international investments. One of these portfolios is starting a POC in Japan and when they had told me that “we couldn't do it without you,” I was glad.

Also, it is very exciting when you can make contributions from your network. Specifically, I was able to connect Amadeus Capital Partners who are associated with the University of Cambridge to UTEC. We launched a new initiative in August of 2021 called “AUGMENT”. I hope that this initiative will give rise to global innovations.

Azusa

My moment of fulfilment was when I was able to build a relationship of trust with leading academics. They would share breakthrough data in their research area with me and we discuss how these can be used in commercialization. Applying my scientific background and reading the latest literature on the subject, I point out discussion points in commercialization even they didn't realize. It is only then that they appreciate the value that I offer as a venture capitalist. It takes dedication to come up with a business plan but that is why it is so fulfilling.

Yuki

It is also rewarding when I lead new investments and when other investors join in following up rounds. Another moment of fulfilment is when I can feel my growth as a professional. Working with excelling entrepreneurs, UTEC partners, and co-investors, I feel they have many qualities which I can learn from.

John

I agree. I also feel I am growing as a professional. Because we work intensely and at a high speed to invest or to add value to startups, I believe I have been able to build on my fundamentals as a business professional.

Nori

I think people with excellence grow on their own. Especially when given hard to achieve tasks. In this sense, because new and unknown issues constantly arise in the venture capitalist profession, I guess you could say it is a stimulating environment. UTEC lets associates take ownership and responsibility for their projects, so I think there are many opportunities for growth.

- The future of our Associates

Nori

How do you look towards your career plan in the future?

Azusa

Ever since I entered this industry, my mission to solve global issues through a business stemming from Japanese academia has not changed. In Japan, there are especially few examples of successes from the life sciences. First, I want to create success cases as a venture capitalist. After that, I may want to become an entrepreneur myself to challenge to solve global issues.

Yuki

In terms of investments, I would like to invest in companies that are trying to solve social issues on a tremendous scale, such as climate change and population decline. I would like to also invest in companies that grow through domestic and international capital. I am considering being involved in this myself as an businessperson. Either way, I want to stay close to the intersection of technology and entrepreneurship.

John

The Harvard MBA which I have deferred will be starting in July this year. At Harvard, I want to build a network with likeminded people who hold innovation and globalization close to their hearts. My ambition is to lead an organization in which every individual is driven to work proactively. I believe the MBA will be my next step towards this goal.

UTEC has valued my passion to remain close to innovation. No matter where I end up, my relationship with the venture capital ecosystem will continue. At Harvard, I want to continue to contribute to UTEC through the network that I will build.

Nori

The members all have different backgrounds: Yuki who joined straight out of university, Azusa who joined us after gaining experience at a consulting firm and getting her MBA, and John who joined us pre-MBA. Since venture capital is an industry which revolves around something new, the strength of a venture capital firm lies in the diversity of its members. We invite excellent professionals to join our team regardless of their background and we must continue to be an organization that attracts such professionals. We look forward to receiving applications from professionals who have the strong will to thrive in the exciting field of science and technology venture capital.