Igniting change: How Onlab & ESG Fund I is recharging Japan’s economy through innovation
DG Incubation is a dedicated startup investor within the broader Open Network Lab (Onlab) ecosystem, which was launched in 2010 as Japan’s first-ever seed accelerator. Open Network Lab focuses on supporting early-stage startups across various sectors, fostering innovation in Japan’s entrepreneurial landscape. Since its inception, Onlab has supported over 160 startups, many of which have emerged from its highly competitive seed accelerator program. In 2021, Open Network Lab & ESG I Investment Limited Partnership, or simply put Onlab & ESG Fund I, was established to focus specifically on sustainability, launching this fund to drive investments in startups that align with Environmental, Social, and Governance (ESG) principles.
Revitalizing Japan’s economy through “new context” innovations
At the heart of Onlab & ESG Fund I’s strategy is its focus on the “new context” – a forward-thinking approach to investment. This concept involves backing innovative ideas and technologies that have yet to be adopted by society but hold the potential to reshape the future. This fund believes that revitalizing Japan’s economy and society hinges on introducing fresh, unimplemented innovations that can drive transformative change.
This vision is rooted in the belief that as Japan’s population declines and the business landscape stagnates, introducing radical new ideas is essential for economic rejuvenation. By targeting startups that provide these fresh perspectives, Onlab & ESG Fund I aims to drive systemic change both locally and globally.
Plugging startups into a global powerhouse of connections
In addition to financial backing, the fund offers its portfolio companies ESG management workshops, financial growth support, and crucial introductions to both Japanese and global investors. By leveraging the extensive resources of its parent company, Digital Garage, Onlab & ESG Fund I helps startups succeed on the international stage through access to strategic guidance, financial support, and global connections.
A unique feature of Onlab & ESG Fund I is its community-driven approach from Onlab, the seed accelerator. As the only seed accelerator in Japan with multiple IPOs in its portfolio, it connects startups with experienced alumni, offering invaluable insights into the IPO preparation process, for example. This community fosters a sense of shared purpose, with seasoned entrepreneurs mentoring younger startups through key milestones.
Teaming up to amplify global growth
Happiness Capital has invested in Onlab & ESG Fund I as a Limited Partner (LP). The relationship between the two broadens Onlab & ESG Fund I’s access to new markets, particularly in Hong Kong, Taiwan, and Southeast Asia. Happiness Capital’s role as an LP enhances Onlab & ESG Fund I’s ability to introduce its portfolio companies to key players in these regions, facilitating their international growth and expansion.
Empowering a new wave of change-makers
Looking ahead, Onlab & ESG Fund I remains dedicated to supporting innovative ESG startups. The fund aims to tackle the systemic challenges facing the world, from environmental issues to corporate governance, by empowering startups to think globally and act locally. With plans to further integrate ESG principles into its portfolio and expand its community, Onlab & ESG Fund I is positioning itself as a leader in Japan’s venture capital ecosystem.
By combining hands-on support, a global network, and a strong commitment to sustainability, Onlab & ESG Fund I is helping to create a more sustainable future for both startups and society. Its unwavering dedication to fostering innovation and addressing global challenges cements its role as a key player in shaping the next generation of impactful startups in Japan’s growing ESG investment space.
