The company to accelerate development of "laser-type OLED," attracting more attention from the display industry

KOALA Tech Inc.is pleased to announce that it has completed a Series B additional round, raising a total of 570 million yen from existing investors Kyushu Regions Recovery Support Fund, FFG Venture Business Partners Co., Ltd., Propagator Ventures AS, and new investors Kyoto University Innovation Capital Co., Ltd., JP Bank Spiral Regional Innovation Fund, Kyushu Electric Power Co., Inc., Zenrin Future Partners Co., Ltd., Globe Advisors Ventures LLP, and H.I.S. Co., Ltd. Combined with last year's funding, the company's cumulative Series B funding amount is now 920 million yen.

Background and purpose of fundraising
KOALA Tech is pioneering the commercialization of an innovative light-emitting element
— a "laser-based organic light-emitting diode (OLED)" — built upon the widely adopted OLED technology used in smartphone displays. This breakthrough technology promises ultra-bright image displays and precision measurements, advancing what was previously unattainable with conventional technology in XR applications, including smart glasses and wearable medical devices.

KOALA Tech proudly received a Distinguished Paper Award at SID Display Week 2024, held in California, USA, this past May. This recognition highlights the industry’s strong interest in KOALA Tech's newly developed blue light-emitting element, which has garnered significant attention as a groundbreaking solution in the display field. Following this success, industry momentum is building, and KOALA Tech is prioritizing the rapid development of red and green light-emitting elements to complement the blue, further showcasing the transformative potential of this technology in advanced display applications.

To date, KOALA Tech's development funding has been primarily supported by Kyushu-based investors who share our vision of leveraging university-driven innovations from Kyushu to expand globally. Once again, we have secured strong backing from both Kyushu-based investors and others committed to regional innovation and university-originated advancements.

With this newly raised funding, KOALA Tech is accelerating the development of our three-color light-emitting elements and advancing verification as a display solution. Additionally, we are focused on enhancing key properties, such as the lifetime of the light-emitting element.

Future Outlook
Wearable devices, including smart glasses, are anticipated to become the next-generation platform, following smartphones. These hands-free devices promise transformative benefits across various industries, such as agriculture, fishing, construction, and transportation—sectors where the full utility of smartphones has been limited by the need to use one hand. Additionally, wearable technology stands to create new experiential value in fields like healthcare, education, and tourism by seamlessly merging real-world scenery with virtual imagery.

However, for these devices to gain widespread adoption, technical challenges such as reducing weight and size, enhancing image quality, and lowering power consumption must be addressed. KOALA Tech is dedicated to commercializing “laser-based OLED” technology, an innovative solution to advance the optical systems of XR devices. This technology aims to optimize the light-based delivery of images to users’ eyes, tackling the fundamental challenges XR devices face and setting the stage for transformative, immersive experiences.

Comments from investors
Hiroaki Sakamoto, REVIC Capital
We invested in this additional round following last year’s first round. The organic semiconductor laser that KOALA Tech is developing is a next-generation laser technology from Kyushu University that can simultaneously improve image quality and make devices smaller and lighter. Recently, the company has been working on research and development with the aim of implementing organic semiconductor lasers in wearable devices such as smart glasses. We hope that this investment will contribute to the creation of an industry that will lead the next generation, and also contribute to economic revitalization in the surrounding area through the social implementation of university-developed technology in the region.

Miruto Ohara, FFG Venture Business Partners
Following on from our last round, we are very pleased to have been able to make our third investment. Led by CEO Fatima Bencheikh, the company has many globally-minded personnel, and is aiming to enter the global market from Kyushu as the world's first organic semiconductor provider. Development has progressed significantly in the last year, and the company has attracted attention from big tech companies. We will work even harder with our shareholders who have invested this time, and we will do our utmost to accompany KOALA Tech as we believe it will grow into one of Japan's leading startups.

Masayoshi Ohbayashi, Kyoto University Innovation Capital
The market for transparent displays is expanding for next-generation mobility and information and communication devices, but the difficulty of displaying information under sunlight remains an issue. The OSLD developed by KOALA Tech has excellent brightness and is expected to solve the issue of visibility in outdoor environments. We will continue to support startups that aim to implement the results of research from national universities in society through our investment activities.

Kazuhiro Kamada, Kakeru Mizuno, Spiral Innovation Partners / JP Bank Spiral Regional Innovation Fund
KOALA Tech's OSLD has excellent directionality and monochromaticity, and we believe that it is an essential technology for the explosive spread of AR and other XR devices. In 2019, Kyushu University became the first in the world to successfully demonstrate OSLD, and we believe that KOALA Tech, which is conducting research and development based on the seeds of the university, is the player closest to implementing OSLD in society. One of the pillars of the JP Bank Spiral Regional Innovation Fund is investing in regional startups, and we will fully support this Kyushu-based company as it takes on this ambitious, world-first challenge.

Andreas Emblem, Propagator Ventures AS
We are very pleased to have increased our investment in KOALA Tech, following our initial investment in 2023. This reflects our continued confidence in the KOALA team and the further progress made in developing their OSLD technology. KOALA Tech has further proved its potential to transform several categories of advanced electronics.

Masaru Yonemura, Kyushu Electric Power
KOALA Tech 's world-first technology that combines organic materials and lasers has great potential in a variety of markets, including smart glasses, and is expected to become an essential technology for realizing the smart society of the future. We also hope that products and services using this technology will be used in electricity, information and communications, and new businesses. We hope to continue to strengthen our collaboration with university-based venture companies and contribute to the revitalization and sustainable development of the Kyushu economy through the creation of new businesses and services.

Hiroki Tachibana Zenrin Future Partners
We are very pleased to have invested in KOALA Tech. The organic semiconductor laser technology developed by KOALA Tech is expected to be the next-generation light source that will support the smart glasses market, which is expected to expand globally. We hope that this innovative technology, based on the results of a research team led by Professor Chihaya Adachi of Kyushu University, will lead to major changes in the electronics field.

Masayuki Umitsu, H.I.S
The widespread use of XR devices, including smart glasses, will provide a great opportunity to create new travel experiences in the tourism industry. Travelers will be able to enjoy an experience where real scenery and virtual information are seamlessly integrated, enabling them to gain a deeper understanding of the attractions of tourist destinations. We have high hopes for future technological advances.

Yuki Akiyama Globe Advisors Ventures
With KOALA Tech's organic semiconductor laser being used as a light source for smart device displays, I feel like what I thought was only a story in the movies is getting closer to becoming a reality. KOALA Tech has a completely new technology and is attracting attention from major manufacturers around the world. I believe that KOALA Tech is one of the few deep tech companies with the potential to be successful on a global scale. I am pleased to join the company as a shareholder and will support it to the best of my ability!

Tomoaki Eguchi BANSOU
When I first heard about the organic semiconductor laser that KOALA Tech is developing, I was excited by its great potential. I look forward to seeing KOALA Tech's continued success as it leaps from Kyushu to the world in the microdisplay market, which is expected to grow in the future.

Takahiro Shiraishi
KOALA Tech is a deep tech company from Kyushu that is promoting innovative organic semiconductor laser technology. We believe that this technology will not only increase our competitiveness in advanced markets, but also contribute to the development of the local economy. We sincerely look forward to the growth of KOALA Tech as it takes on the world from Kyushu. We look forward to leveraging Kyushu's proud technological capabilities to become a leader in the industry of the future.