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Deep-Tech Startups Support Project

Project overview

Project period: FY2023 to FY2033, FY2023 budget: JPY 93 billion (total amount of project period)
  • NEDO provides various startups support programs in the field of deep-tech. These programs cover from support for potential entrepreneurial personnel to support for the commercialization of technologies that require long-term and large-scale funding.
    Overall picture of startups support programs in the deep-tech field

"Deep-Tech Startups Support Program" provides support for research and development and commercialization in three phases for "deep-tech startups" engaged in research and development of innovative technologies. Eligible projects are those that require long-term research and development and large-scale funding to establish the technology, commercialize it, and implement it in society and that are considered to contribute to solving economic and social issues (carbon neutrality, resource circulation, economic security, etc.) to be addressed by the country or the world as a whole, despite the high risk involved.

Deep-Tech Startups Support Program (DTSU): Aims and Measures

  • Deep-Tech Startups Support Program will help startups to grow into large unicorn-sized companies by providing R&D support through flexible phase transitions and program period.
    Deep-Tech Startups Support Program: Aims and Measures

Details of Support

Program Flow, Program Period, NEDO's Contribution Rate, and Maximum subsidy Amount
  • This program provides once-through support for the research and development for commercialization and the mass production demonstration through the Stage-Gate reviewing process.
    Phases to be supported
Phase Maximum program period*(1) NEDO's contribution rate Maximum subsidy amount
(1) STS Up to four years for each phase. [Once-through support]
Six years
(One program period is the period until the next round of fundraising.)		 Within 2/3 of the subsidy-eligible expenses 300 million yen or 500 million yen *(2) Total Up to 3 billion yen
(2) PCA 500 million yen or 1 billion yen *(2)
(3) DMP Within 2/3 of the subsidy-eligible expenses or 1/2 of the subsidy-eligible expenses *(3) 2.5 billion yen
  • *(1): The program period is set based on the period from the time when the business receives investment from VCs, CVCs, or other operating companies when it applies for this support program until the next time when the business plans receives investment from VCs, CVCs, or other operating companies (new fundraising). Approximately 1.5 to two years are standard. The maximum period in the above table can be set by going through the Stage-Gate (SG) reviewing process.
  • *(2): Conditions for subsidy increase: When the partner in the commercialization partnership is able to submit a statement of intent and a plan for overseas technology demonstrations
  • *(3): Conditions for 1/2 contribution rate: When the ratio of the total amount of loans to the total amount of investments and loans in the DMP phase is 1/2 or more.

Each project can be continued in the same phase or the next phase if it is approved by the Stage-Gate review.

Timing of Application and Stage-Gate Scheme

Applications can be submitted from any phases. However, each proposer may apply for only one phase that best fits one’s company.
(To apply for a phase, the applicant is required to judge the suitability of the phase based on the most advanced business or research and development activities in one’s company).
Public recruitment will be open for five years, from FY2023 to FY2027.

  • In this program, startups can apply from any phases, and applicants are required to apply for only one phase that best fits one’s company. Continued implementation in the same phase or other phases will do through the Stage-Gate reviewing process. Programs can be implemented for up to four years within a phase and up to six years across multiple phases.
    Timing of Application and Stage-Gate Scheme

The support for each phase of the program is as follows.

Phase STS phase PCA phase DMP phase
Target
  • ・ Startups who start research and development and production of prototypes, and start marketing in the expected market, but have not yet fully realized a concrete product or service and are testing hypotheses for solving problems through research and development.
  • ・ The standard is that, by the end of this phase, the product or service solves a  specific problem for a specific target customer in the initial market.
  • ・ Startups who aim to generate revenue by selecting appropriate initial and subsequent major markets (mainstream), solve the problems of target customers, and build business models as they further develop applications based on the results of such research and development, etc.
  • ・ The standard is that, by the end of this phase, the product or service solves a problem for specific target customers in the initial market and major markets (mainstream) and meets the requirements for sustaining revenue.
  • ・ Startups who aim to generate large revenues by selecting an appropriate major market (mainstream), solve the problems of the target customers, and build business models as they further develop applications based on the results of such research and development, etc.
  • ・ However, to achieve this, it is necessary to establish a mass production system or conduct verification/demonstration related to business scaling.
  • ・ The standard is that, by the end of this phase, the product or service solves a problem for specific target customers in the major market (mainstream), meets the requirements for starting commercial production, builds a business model that secures sustainable revenue, and is ready for actual mass production with the next round of funding.
Support
  • ・ Research and development of underlying technologies and development of prototypes
  • ・ Implementation of feasibility studies to determine the direction of technology development for commercialization, etc.
  • ・ Development of prototypes and initial production technology
  • ・ Implementation of feasibility studies for the acquisition of major markets
  • ・ Implementation of mass production demonstrations necessary for commercialization by designing, manufacturing, purchasing, introducing, and operating production and inspection equipment, etc., which are essential for research and development related to the establishment and demonstration of mass production technology.
Subsidy rate 2/3 or less 2/3 or less 2/3 or less or 1/2 or less *(3)
Subsidy amount 300 million yen or 500 million yen *(1) 500 million yen or 1 billion yen *(1) 2.5 billion yen
Major requirements
(for details, refer to
the open call guidelines)
  • ・ The total amount of investment from one or more VCs, CVCs, or operating companies*(2) must be at least 1/3 or more of the subsidy-eligible expenses, and the investment must be made within a specified period*(4).
  • ・ Among these, the investors with the largest amount of shareholding ratio must be either VCs or CVCs.
  • ・ The total amount of investment from one or more VCs, CVCs, or operating companies*(2) must be at least 1/3 or more of the subsidy-eligible expenses, and the investment must be made within a specified period*(4).
  • ・ The VCs or CVCs must be included in the shareholder composition, or must be included within the specified period.
  • ・ The total amount of investment from one or more VCs, CVCs, or operating companies*(2) and loans from financial institutions must be at least 1/3 or 1/2 of the subsidy-eligible expenses, and the investment must be made within the specified period*(4).
  • ・ The VCs or CVCs must be included in the shareholder composition, or must be included within the specified period.
  • ・ The applicant must submit a Memorandum of Understanding (MOU) with the partner regarding mass production demonstration, joint research, procurement, sales channel development, etc., for commercialization.
  • *(1): The maximum amount can be increased when the partner in the commercialization partnership is able to submit a letter of intent and a plan for overseas technological demonstrations.
  • *(2): Investments include convertible securities (convertible equity, convertible bonds, convertible notes, etc.)
  • *(3): If the ratio of the total loan amount to the total investment and loan amount required to apply for the program is 1/2 or more, the subsidy rate will be reduced to 1/2 or less.
  • *(4): A period separately determined by NEDO based on the period from three months before the proposal deadline to one month after the date of the decision to adopt.

Basic information

Technical field Cross-sectoral proposal-based programs
Project code P23019
Department in charge Innovation Promotion Department (E-MAIL: dtsu@nedo.go.jp )

Last Updated : November 6, 2023