NEDO Deep-Tech Startup Support Program (DTSU)

DTSU PCA (Prototype and Market Validation)

Funds Japanese startups validating prototypes and testing market fit for deep-tech products and services.

DTSU PCA (Prototype and Commercial Acceleration) is the second phase of NEDO's Deep-Tech Startup Support Program, which carries a total program budget of ¥87.7 billion (DTSU) plus approximately ¥38 billion (GX track) through FY2032. PCA funds prototype building, initial production technology development, and market validation for Japanese deep-tech startups that have completed STS-level core R&D or equivalent work. Covered sectors include biotechnology, AI, quantum, semiconductors, robotics, space, advanced materials, medtech, and clean energy.

The maximum subsidy is ¥500 million per project (or ¥1 billion when the applicant submits a letter of intent and overseas technology demonstration plan with a commercialization partner). NEDO's contribution rate is within two-thirds of subsidy-eligible expenses. Project duration is up to four years per phase, with a standard active period of roughly 1.5 to two years between fundraising rounds. Eligibility is limited to Japanese-registered for-profit startups operating at TRL 5–7. VCs or CVCs must be present in the shareholder composition, or must be added within a NEDO-specified period. At least one-third of subsidy-eligible expenses must come from VC, CVC, or operating-company investment. Through the 8th round, 42 of 111 total DTSU-adopted companies are at PCA stage. The GX track includes an additional four PCA adoptions through the 5th round.

By the end of the PCA phase, the standard is that the product or service solves problems for customers in both the initial and major mainstream markets, and the company meets the requirements for sustaining revenue. Successful PCA graduates may apply through Stage-Gate review to the DMP phase, where subsidy caps rise to ¥2.5 billion for mass production demonstration. Applications are open to all eligible startups during annual recruitment rounds from FY2023 to FY2027.