Innovation Kyoto 2021 Investment Limited Partnership" ("KYOTO-iCAP FundⅡ"), managed by Kyoto University Innovation Capital Co.,Ltd. ("Kyoto iCAP") (Headquarters: Sakyo-ku, Kyoto; Representative Director: Ko Kusumi) as its general partner, has made a new investment of JPY 90 million in xCARE Inc. (Headquarters: Shibuya-ku, Tokyo; Representative Director: Masashi Fukunaga), a startup that operates an expert talent platform specialized in the pharmaceutical and medical device industries and provides execution support services to address industry-specific development and regulatory challenges. The investment was made using a J-KISS (stock acquisition rights–based investment agreement) structure.

Overview of the investment
xCARE operates under the mission: “Deliver healthcare products from around the world to people everywhere, and create new opportunities for experts worldwide.” By building an industry-specific expert talent platform and delivering “the right expertise at the right time,” xCARE provides solutions to the chronic talent shortages faced by the pharmaceutical and medical device industries.

Professor Takako Nakajima of the Graduate School of Medicine, Kyoto University, promotes development from preclinical to early-stage clinical trials at the Kyoto Innovation Center for Next Generation Clinical Trials and iPS Cell Therapy (Ki-CONNECT), while also working on the development of human resources engaged in preclinical and clinical research. xCARE has entered into a scientific advisory agreement with Professor Nakajima and aims to further advance Japan’s medical industry by combining Kyoto University’s academic and technological expertise with xCARE’s expert talent platform, thereby fostering collaboration between academia and industry.

In recent years, as development challenges in the pharmaceutical and medical device industries have become increasingly complex, expectations for startups have continued to rise. At the same time, pharmaceutical companies, medical device manufacturers, CROs (Contract Research Organizations), CMOs (Contract Manufacturing Organizations), and CDMOs (Contract Development and Manufacturing Organizations) are increasingly required to utilize human resources more efficiently. Demand for xCARE’s services—which provide “the right experts at the right time”—is therefore expected to grow further.

Kyoto iCAP evaluated xCARE highly based on the following factors: ・The platform has more than 1,300 registered experts worldwide, with diverse skill sets and professional experience at both domestic and international companies; ・xCARE conducts expert assessment and project management, reducing mismatches between companies and professionals and improving the likelihood of successful development projects; and ・The platform represents an effort to rebuild social infrastructure for highly skilled experts whose capabilities are often underutilized. Based on these strengths, Kyoto iCAP decided to provide this investment.

Overview of xCARE Inc.Inc.
Establishment : January 2022
Headquarters: Shibuya-ku, Tokyo
Representative Director: Masaru Fukunaga
HP :https://www.xcare-medical.com/
Business Description: xCARE is a startup that builds an expert platform specialized in the medical industry, including pharmaceuticals, medical devices, and regenerative medicine products. By leveraging registered experts, the company provides solutions and execution support services for industry-specific development and regulatory challenges. Its primary clients include pharmaceutical and medical device manufacturers, companies entering the medical industry as a new business area, biotech ventures, and medical device startups. The registered experts consist of side-job professionals and freelancers, ranging from highly specialized experts to those capable of providing hands-on operational support. Approximately half of the registered experts are based overseas, making the platform already global in nature and valuable for addressing issues such as drug and device lag.

Kyoto University Innovation Capital, Co. Ltd.(Kyoto iCAP):
As a wholly owned subsidiary of Kyoto University, KYOTO-iCAP provides investment and other business support to companies that utilize research results generated by Kyoto University and other national universities. KYOTO-iCAP currently operates the Innovation Kyoto 2016 Investment Limited Partnership ("KYOTO-iCAP FundⅠ") (established in January 2016) with a total value of 16 billion yen and the KYOTO-iCAP FundⅡ (established in January 2021) with a total value of 18.1 billion yen. The KYOTO-iCAP FundⅠ has a maturity of up to 20 years, and the KYOTO-iCAP FundⅡ has a maturity of up to 17 years, making it possible to provide long-term support for the practical application of research results from Kyoto University, which has strengths in basic research. In addition, KYOTO-iCAP FundⅡ will invest a portion of the funds in ventures originating from national universities other than Kyoto University.

Contact information for inquiries
Kyoto University Innovation Capital, Co. Ltd.
36-1 Yoshida Honmachi, Sakyo-ku, Kyoto 606-8317, Japan
Osami Kono, Senior Officer, Business Development Department
TEL: 075-753-7588 FAX: 075-753-7592
E-mail: info@kyoto-unicap.co.jp