In 'Entrepreneurial Spirit,' we delve into the reasons people started their businesses, the initial challenges they faced, and their aspirations for the future.
In our 43rd installment, we interviewed Hiroaki Ohta who co-founded Blue Laser Fusion, Inc. with 2014 Nobel laureate in physics Shuji Nakamura. Together with Tatsuya Nagaoka, JAFCO's capitalist in charge, we discussed the challenges of their future business endeavors.
【Profile】
Hiroaki Ohta, CTO, Blue Laser Fusion, Inc.
After completing his studies in aerospace engineering at Kyoto University's Graduate School of Engineering and working as an assistant professor there, Mr. Ohta engaged in research under Professor Shuji Nakamura at the University of California, Santa Barbara. In 2010, he joined McKinsey & Company. In 2016, he joined the drone-related startup Autonomous Control Systems Laboratory Ltd. (ACSL). The company was listed on the Tokyo Stock Exchange Mothers' market during his tenure. After holding positions as CEO and chairman in the company, he resigned in March 2022. Since 2022, he has been a co-representative of Waseda University Ventures. In November 2022, together with Shuji Nakamura, he co-founded Blue Laser Fusion, Inc.
【About Blue Laser Fusion, Inc.】
Founded in November 2022 in the United States, Blue Laser Fusion, Inc. is a startup aiming to commercialize laser fusion based on its unique inventions of lasers and fusion reactors. Shuji Nakamura serves as CEO, and Hiroaki Ohta, co-representative of Waseda University Ventures, serves as CTO. In July 2023, the company successfully raised an initial funding of USD 25 million, led by SPARX and JAFCO.
Aiming for the world's first commercialization of laser fusion using proprietary technology and clean fuel
─ Nuclear fusion is attracting attention as the "ultimate energy source," and more and more companies around the world are becoming involved in nuclear fusion as a business. Could you please provide an overview of nuclear fusion?
Ohta Nuclear fusion refers to a reaction in which atomic nuclei combine to generate immense energy. The sun creates its energy to illuminate the earth through nuclear fusion. Nuclear fusion has been studied worldwide for over 50 years so that it might be used artificially for power generation. The fuel resources for nuclear fusion are abundant on Earth, and since carbon dioxide is not generated and there are no risks of accidents, it is considered a potential key solution for decarbonization and addressing the problem of energy resource depletion if commercialized.
─ Blue Laser Fusion is aiming for the commercialization of laser fusion technology. Exactly what kind of technology is this?
Ohta Currently, there are two main approaches to nuclear fusion that are under development: the plasma magnetic confinement method and the laser fusion method. However, both face various challenges on the path to commercialization.
For instance, the plasma magnetic confinement method requires a massive and robust reactor and a huge budget. On the other hand, the laser fusion method, which irradiates fuel with lasers to induce reactions, gained global attention in 2022 when the US National Ignition Facility (NIF) succeeded in extracting energy exceeding the input laser energy for the first time. However, to generate power stably, continuous irradiation with powerful lasers is necessary. Additionally, the dominant fuel in current fusion research is deuterium and tritium, which generates neutrons during fusion, leading to radiation risks.
In this context, we focus on the laser fusion method and have independently invented technology for continuously irradiating powerful lasers. We are currently in the process of patenting this technology. Furthermore, by using light hydrogen and boron as fuel instead of deuterium and tritium, we aim to achieve fusion power generation that does not produce harmful substances. In the ongoing unresolved challenges of fusion research, our efforts hold significant potential.
─ With unique laser technology and clean fuel, Blue Laser Fusion believes it might be able to quickly bring fusion power generation into practical use. While companies worldwide are facing challenges, why is Blue Laser Fusion positioned to lead in commercialization?
Ohta Our company was founded in collaboration with Dr. Shuji Nakamura, who received the Nobel Prize in Physics in 2014 for developing blue light-emitting diodes (LEDs). Dr. Nakamura has had a strong interest in fusion since his university days. Based on his expertise in semiconductor lasers, he arrived at the idea of laser technology capable of high-power continuous irradiation.
During the development of the blue LED, Dr. Nakamura successfully used materials that had never been used before, and now we are taking the same approach. He refers to himself not as a scientist but as an engineer, and he emphasizes a commitment to purposeful research. He avoids pursuing methodologies without clear significance or blindly following trends, and he steers clear of conducting experiments solely for the sake of writing a paper. He pursues intellectually curious ideas that have social significance and feasibility, and if he believes the approach is ineffective, he immediately changes direction. If he has an idea, he'll call even if its late at night! It's because we developed this technology with such an incredible person as Dr. Nakamura and with such conviction that we are confident about its commercialization in the future.
Founding members (from left to right: Hiroaki Ohta, CTO; Shuji Nakamura, CEO; Richard Ogawa, Director/Legal Counsel)
─ Mr. Ohta, you have had various experiences as a researcher, management consultant, drone company CEO, and venture capitalist. How did you come to co-found a company with Dr. Nakamura?
Ohta I first met Dr. Nakamura in the US in 2006. At that time, Dr. Nakamura was a professor at the University of California, Santa Barbara, and I was a researcher at the semiconductor manufacturer ROHM. I visited Dr. Nakamura as part of collaborative research on semiconductor materials, and I was impressed by his research attitude, which eventually led me to conduct research under him. While I subsequently pursued a path in management to embody Dr. Nakamura's teaching of creating value in society through technology, I always hoped that I would one day be able to do research with him again.
The first step towards that dream happened in May 2022. I was having sushi with Dr. Nakamura while he was in Japan. As the co-representative of Waseda University Ventures, I was involved in investing in deep-tech startups at the time and approached Dr. Nakamura with the idea of founding a new company. After deciding on fusion as our entrepreneurial theme, we progressed with research via daily emails, founded the company in the US in November, and applied for patents the following year. We invited Richard Ogawa, a lawyer with a track record in startup founding and patent application in the US with whom I had a longstanding relationship with, to join as a co-founder. Now we are steadily moving the business forward.
Although Dr. Nakamura is involved in several other companies, this is the first time he has run a company as a CEO. This is an expression of his desire to seriously tackle the commercialization of laser fusion as the culmination of his life's work. I am also taking on this project with the same intention.
Members who launched Blue Laser Fusion
Blue Laser Fusion's office in California
Seeking the quickest path to commercialization from the seed stage with a trusted apprentice of 15 years
From left to right: Mr. Ohta, CTO; Dr. Nakamura, CEO; Tatsuya Nagaoka, JAFCO's capitalist in charge
─ In July 2023, you secured $25 million in funding led by JAFCO and SPARX. Can you share more about how you encountered JAFCO?
Nagaoka Actually, Mr. Ohta was my assistant professor during my Kyoto University days. He not only helped me with my studies but also provided advice on personal matters. Even after he moved from Kyoto University to the University of California, Santa Barbara, I visited him in the US, and he attended my wedding. He has been my mentor for 15 years, on both a professional and personal level. Mr. Ohta taught me about being a venture capitalist as well.
─ Investing on a large scale in a seed-stage company where the business has not yet taken shape was a bold decision for JAFCO. As a venture capitalist, what specific attributes of Blue Laser Fusion resonated with you and convinced you of its potential?
Nagaoka I have been involved in businesses aimed at solving humanity's challenges from the beginning and wanted to support projects that could achieve business realization in the shortest time possible. Having studied aerospace engineering (physics and mathematics) in university, I have invested in companies related to space and other fields such as education and health tech. Therefore, Blue Laser Fusion, which has the potential to solve decarbonization and energy issues, perfectly aligned with my aspirations.
While I consider the business feasibility to be high, there is still no track record. In such cases, the most crucial factor is the people involved. Dr. Nakamura is undoubtedly an outstanding person, and it's the first time for JAFCO to invest in a company founded by a Nobel laureate. Mr. Ohta has achievements as a business executive, including successfully listing a drone company for the first time in the industry. However, what I found most attractive was that these two individuals joined forces. Dr. Nakamura is a person that pursues new value with intellectual curiosity and Mr. Ohta, who is rich in management know-how, has an extensive network and is knowledgeable in technology. The synergy between their strengths is outstanding. I felt the balance and compatibility while listening to their presentations.
The two of them are seriously taking up the challenge of solving human issues head-on, which they have positioned as the culmination of their lives. I was very eager to be on board with them. The trust between Mr. Ohta and myself is well-known within JAFCO, and we were able to realize a large-scale investment in the seed stage.
─ What was the decisive factor that led you to ultimately choose JAFCO as a lead investor, Mr. Ohta?
Ohta Since our business is a long-term and capital-intensive venture, I believed that we could only entrust it to a VC with the financial strength to consistently invest over time, rather than relying on a singular one-time investment. Additionally, in selecting a partner for a business we are dedicating our lives to, I wanted someone trustworthy who would sincerely accompany us on this challenging journey. That's why I consulted Mr. Nagaoka first.
Mr. Nagaoka has a solid track record as a capitalist, including significant investments as a lead investor for a space business startup launched by a McKinsey alumnus in Singapore. Despite us being in a mentor-disciple relationship, when it comes to work, he communicates on an equal footing and genuinely engages with our business. I thought it would be ideal if we could ask him to help us.
Nagaoka Thank you very much. Since the discussion about this investment came up, I have been in frequent contact with both Dr. Nakamura and Mr. Ohta. Despite both of you being busy, your email responses are incredibly prompt. I will respond to that speed to the fullest and contribute to participating in and supporting the business, aiming for the quickest realization of Blue Laser Fusion's vision: Commercialize a novel fusion reactor-based power generation system to save the world.
Striving with intellectual curiosity to create humanity's best energy source
─ What are your plans for the future after the fundraising?
Ohta In addition to energy-related technologies, we will collaborate with Toshiba Energy Systems, which has a wide range of comprehensive technologies, and YUKI Holdings, which is strong in prototyping based on new ideas. We will firstly construct an experimental device for proof-of-concept in Japan by 2024. After that, aiming for 2030, we plan to operate a demonstration reactor with a power generation capacity of one gigawatt, equivalent to one nuclear power plant, in Japan or the US. We want to make significant progress toward commercialization.
─ It is clear that you are steadily advancing your business by involving specialized companies in various fields. What kind of future do you have in mind beyond the commercialization of laser fusion?
Ohta If we succeed in commercializing fusion power generation, we will be able to generate energy resources endlessly while maintaining the Earth's environment. With abundant energy resources, we will not face difficulties in our basic needs, and industries such as IT that consume vast amounts of electricity will also thrive. Resources are also a significant cause of wars among humanity, so this could contribute to eliminating wars. It can truly be said to be the best energy source for humanity. 
─ Lastly, Mr. Ohta, what do you value as an entrepreneur?
Ohta Both Dr. Nakamura and I view entrepreneurship as a tool. We have a genuine interest in nuclear fusion, which has the potential to save humanity, and we are determined to see it through to the end. Choosing entrepreneurship was simply a means to gather the necessary funds and support for this purpose. But I think entrepreneurs need to have this kind of mindset.
In order to quickly realize the best energy source for mankind, I will work with our company's members and Mr. Nagaoka with full intellectual curiosity.
Dr. Nakamura (left) and company members discussing business during dinner
Comments from the investment professional in charge, Tatsuya Nagaoka
Nuclear fusion is not only a decarbonization solution but also the ultimate energy source expected to be utilized for the rapidly increasing demand from data centers. Broadly, there are two main approaches: plasma magnetic confinement and laser fusion. Regarding the latter, in 2022, energy output exceeding the input laser energy was achieved. However, achieving steady-state operation is challenging due to various issues. Blue Laser Fusion aims to develop a laser fusion reactor using its unique laser generation method and a combination of fuels that do not produce radioactive substances. The CEO, Dr. Nakamura, a Nobel laureate in physics, and the CTO, Mr. Ohta, who has succeeded in the difficult task of listing a drone company, are working together on this project as the culmination of their life's work. We resonate with their vision and are committed to contributing as team members towards the quickest possible commercialization of the project.
