What DG Incubation does

DG Incubation is a Japanese venture capital firm and the dedicated corporate venture arm of Digital Garage Group (TSE: 4819), through which Digital Garage owns 100% of the entity. Founded alongside the Open Network Lab (Onlab) seed accelerator in 2010, the firm invests in seed and early-stage startups in Japan and abroad, providing capital alongside hands-on incubation services including business model development, strategy formulation, talent recruitment, and fundraising support. Its track record includes multiple IPOs and M&A exits, with at least one unicorn alumnus.

The firm manages four distinct fund vehicles, each with a differentiated mandate: Open Network Lab & ESG I "Earthshot Fund" (impact-driven seed/early-stage), Open Network Lab Fund II (domestic and international seed/early), Sapporo Innovation Fund (bio-healthcare startups in Hokkaido via industry-government-academia collaboration, established 2023), and Hamagin DG Innovation Fund (fintech and regional economic revitalization in Kanagawa/Tokyo, co-founded with The Bank of Yokohama in February 2021). Beyond capital, the firm provides operational support by leveraging Digital Garage's payment and marketing businesses and its alumni network.

Revenue is generated through two streams: recurring management fees (1.5–2.5% annually on committed capital, typical for VC) and non-recurring carried interest on portfolio exits via IPOs and M&A. The firm holds multiple government and municipal certifications — NEDO Certified Venture Capital, Hamamatsu City Certified VC, and Okinawa Partner VC (added July 2024) — and is a signatory to the Japan Impact-driven Financing Initiative. The firm is not itself a technology product company; AI/ML capabilities do not feature in its investment operations or platform.

Name

DG Incubation

Legal name

株式会社DGインキューション

Website

https://dgincubation.com

Company type

Private

Founded year

2021

Operating status

Operating

Headcount range

11–50 employees

Short description

DG Incubation is the corporate venture arm of Digital Garage Group, operating four seed and early-stage investment funds — including the Onlab accelerator funds, Sapporo Innovation Fund, and Hamagin DG Innovation Fund — that invest in Japanese and international startups alongside hands-on incubation support.

Ownership category

akta.pro rank

Product category

Venture Capital / Startup Investment

NAICS

Other Investment Pools and Funds (5259)

SIC

Investment Advice (6282)

akta.pro primary industry

Accelerators & Incubators (Investor-Operated) (FSANAAAM)

akta.pro secondary industries

Early-Stage Venture Capital (Pre-Seed/Seed) (FSANAAAA), SDG / Thematic Sustainable Investment Funds (FSANAJAN), Corporate Venture Studios & Incubators (Build/launch ventures) (FSANAHAC)

Keywords

• Venture capital funds
• Seed stage investment
• Startup incubation services
• Early stage equity financing
• Startup growth support

Headquarters

HQ city

Tokyo

HQ country

Japan

HQ region

Asia

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Marketing or Sales, Technology or R&D

Revenue model

1. Fund Management Fees: VC firms typically generate revenue through management fees charged on committed capital under management (AUM), typically ranging from 1.5–2.5% annually. DG Incubation operates four fund vehicles: Open Network Lab & ESG I 'Earthshot Fund', Open Network Lab Fund II, Sapporo Innovation Fund, and Hamagin DG Innovation Fund.
2. Carried Interest / Exit Proceeds: Realizes returns through exits of portfolio companies via IPOs and M&A transactions, generating carried interest (performance fees) for the fund manager. Multiple portfolio companies have achieved exits or are in exit processes.

Go-to-market motion2 records

Distribution channels3 records

Marketing channels4 records

Core offering

DG Incubation is a venture capital firm that operates four investment fund vehicles (Open Network Lab & ESG I "Earthshot Fund," Open Network Lab 2nd Fund, Sapporo Innovation Fund, and Hamagin DG Innovation Fund) and provides seed and early-stage capital to Japanese and international startups. In addition to capital, the firm offers portfolio companies hands-on support in business model improvement, strategy formulation, talent recruitment, and follow-on fundraising, leveraging the Digital Garage Group's network and resources.

Product overview

DG Incubation is a venture capital firm operating as part of the Digital Garage Group, offering three distinct investment funds: the Open Network Lab Fund (Japan's first seed accelerator focusing on seed/early-stage impact-driven startups), the Sapporo Innovation Fund (specializing in bio-healthcare startups in Hokkaido), and the Hamagin DG Innovation Fund (focusing on fintech and regional economic revitalization in Kanagawa/Tokyo). The company provides startup investment and incubation services including business model improvement, strategy development, talent recruitment, and fundraising support.

Differentiator

Problem solved

Functional benefit

Products and services

• Open Network Lab Fund (Onlab Fund) Japan's first seed accelerator fund that invests in seed and early-stage startups, both domestic and international, that aim to contribute to society and the environment. Provides follow-on investments to high-growth portfolio companies.
• Open Network Lab & ESG I "Earthshot Fund" Impact-oriented fund investing in domestic and international promising seed and early-stage startups that aim to contribute to society and the environment.
• Sapporo Innovation Fund Investment fund focused on bio-healthcare startups in Hokkaido, supporting industry-government-academia collaboration and providing management, marketing strategies, and recruiting support. Established through collaboration with the city of Sapporo and local bio-related companies.
• Hamagin DG Innovation Fund Co-founded by The Bank of Yokohama and Digital Garage, investing in startups with technologies contributing to open innovation in finance-related industries and revitalization of the local economy in Kanagawa and Tokyo.
• Startup Investment and Incubation Services Provides startups with business model improvement, business strategy development, talent recruitment, and fundraising support using the Digital Garage Group's knowledge and network.

Quantifiable outcome

• Multiple IPOs and M&As generated through Open Network Lab since 2010, including at least one unicorn

Named customers3 records

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

One partnership is on record.

• Open Network Lab (Onlab)coreStrategic or Co-development PartnerOnlab is Japan's first seed accelerator (operating since 2010), operated by Digital Garage. It collaborates with DG Incubation's fund vehicles to source, select, and support promising seed and early-stage startups. The accelerator program feeds deal flow into the Open Network Lab Fund II and Earthshot Fund.

Scale indicators3 records

Recent moves6 records

Expansion highlights5 records

Direct peers

• JAFCO Group: Japan's largest venture capital firm with broad early- and growth-stage investment capabilities. Directly comparable as a Japanese VC operating multiple fund vehicles and providing active portfolio support across diverse sectors.
• World Innovation Lab (WiL): Japan-based venture capital firm investing in early- and growth-stage startups globally with cross-border focus. Comparable as a Japan-headquartered VC with global ambition and corporate LP backing.
• Genesia Ventures: Early-stage Japanese VC firm that co-invested with DG Incubation in Boost Health. Comparable as a Japan-focused seed VC with similar investment thesis and portfolio size.
• ANRI: Tokyo-based seed-stage venture capital firm with a strong portfolio of Japanese startups and active angel investor network. Comparable as a Japan-focused early-stage VC with accelerator-adjacent operations.
• Globis Capital Partners: Tokyo-based venture capital firm investing in seed to growth-stage startups in Japan and globally. Directly comparable as a Japan-headquartered early-stage VC with a strong track record of exits and operational support.
• Incubate Fund: Japan-focused seed venture capital firm that co-invested alongside DG Incubation in the Boost Health round. Comparable as a Japanese early-stage VC operating with similar fund size and seed-stage thesis.
• Coral Capital: Japan-focused early-stage venture capital firm investing in Japanese startups with US market expansion potential. Comparable as a Japan-based seed VC with international orientation.
• B Dash Ventures: Japan-focused early- and growth-stage venture capital firm. Comparable as a Tokyo-based VC with both domestic and international investment activity and a similar mid-size fund structure.

Regional players

• East Ventures: Major Southeast Asia-focused early-stage VC with Japan presence. Comparable as a regional seed VC operating in Asia with similar early-stage thesis, though primarily focused on Indonesia and SEA rather than Japan.

Broad incumbents

• MUFG Innovation Partners: Corporate venture capital arm of Mitsubishi UFJ Financial Group, one of Japan's largest financial institutions. Comparable as a Japanese CVC backed by a major financial institution, offering portfolio companies banking-sector synergies.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/DG_Incubation
• Facebookfacebook.com/profile.php

Compliance4 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles15 records

Funding overview

Funding rounds

Investors

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M&A

Investments32 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about DG Incubation