Impact Policy Tracker Policy

Public‒Private Partnership Impact Growth Fund



Launched by the Tokyo Metropolitan Government, the Public–Private Partnership Impact Growth Fund (officially IF Growth No.1 Investment Limited Partnership) aims to expand financial support for growth-stage startups with high potential to address pressing social challenges and scale globally. The fund was formally established in March 2025, with an initial public investment of ¥JPY10 billion (USD ~67 million), and is managed by Incubate Fund Co., Ltd., a leading Japanese venture capital firm. With a target fund size of ¥30 billion over a ten-year period (extendable by two years), the initiative seeks to mobilise additional private investment by March 2026. The fund will invest in mid- to late-stage impact-driven startups, fostering solutions that contribute to a more inclusive and sustainable society.

Highlights

  • Part of a Bold 2050 Vision for Sustainability and Innovation: The Impact Growth Fund should be understood as part of a broader framework -the Tokyo 2050 Strategy: Forging a Better Future- launched by the Tokyo Metropolitan Government in March 2025. The strategy outlines Tokyo’s long-term vision to achieve the SDGs through cross-sector collaboration. Among its key priorities are: (i) transforming Tokyo into a global financial hub for a sustainable future -through initiatives such as SDG bond issuance and Tokyo’s own Green and Blue Bonds- and (ii) expanding a robust startup ecosystem by forming innovation clusters in areas like sustainability and deep tech.

  • Pioneering Innovative Financial Mechanisms at the Subnational Level: The Impact Growth Fund exemplifies how subnational governments can play a catalytic role in mobilising capital for impact. Alongside initiatives like Australia’s NSW Social Impact Outcomes Fund, it shows that innovative financial mechanisms can be designed and implemented not only at the national level, but also by cities and regional authorities committed to advancing social and environmental goals.

Government’s Role:
Market Participant


Country:
Japan Tokyo

Policy Type:
Funding Programmes

Year: 2025

Responsible Institution:
Tokyo Metropolitan Government

Funding Programmes

What are funding programmes?

Funding programmes - which provide financial resources in the form of grants, loans, equity, and guarantees - can be used by governments and public institutions to address financing gaps and attract private sector participation, often through dedicated funding windows, government-backed funds, and public-private partnerships, towards businesses that place social and/or environmental impact at their core. By doing so, they help grow a pipeline of mission-oriented organisations capable of addressing systemic challenges while contributing to inclusive and sustainable economic development.

This support can take various forms: capital provided directly to enterprises to meet early-stage or growth financing needs; investments channelled through intermediary funds to reach a broader range of businesses; or blended finance models where public or philanthropic actors absorb higher risks to make investments viable for private investors. The design of these mechanisms is often catalytic, helping to build investor confidence, promote financial inclusion, and strengthen the resilience of social enterprises across diverse sectors and geographies.