MPower Partners Fund, Japan’s first ESG-focused global venture capital fund, has invested in Nihon Cyber Defence (NCD), a startup developing Japan’s fully sovereign cybersecurity platform. 

Cybersecurity is top of mind for many, amid the rapid rise of AI and escalating geopolitical tensions. According to Japan’s National Police Agency's Cyber Police Bureau[1], the number of reported ransomware[2] attacks remained high in the first half of 2024, with 114 cases. Notably, more than half (73 cases) affected small and medium-sized businesses (SMBs), spanning a broad range of sectors—from manufacturing (34 cases) to wholesale and retail (24), and services (19). During the same period, there were 633,089 phishing reports, and losses from fraudulent internet banking remittances totaled ¥2.44 billion.

A recent survey[3] conducted by the Ministry of Economy, Trade and Industry (METI) of 4,191 SMBs revealed that approximately 70% lack a formal cybersecurity framework. While 60% of respondents reported no cybersecurity investment over the past three fiscal years, the majority of the remaining 40% stated that such investments contributed to landing  revenue-generating contracts. Japan currently faces a shortage of 110,000[4] cybersecurity professionals—one of the most severe gaps among developed economies.

With 95% of cybersecurity products in Japan originating from foreign providers, NCD’s platform represents a critical step toward restoring and reinforcing the nation’s digital sovereignty. In 2024 alone, Japan was the target of over 686 billion cyber-attack packets. As threats grow more advanced and geopolitically complex, both the Ministry of Defense (JMOD) and METI have emphasized the strategic importance of cultivating domestic cybersecurity capabilities. METI has set an ambitious goal: to triple the size of Japan’s cybersecurity industry by 2035.

MPower Partners is proud to support NCD in its mission to become Japan’s leading sovereign cybersecurity platform. We’ve been consistently impressed by NCD’s exceptional leadership team and its robust suite of services—including government-aligned defense, advanced threat detection, and 24/7 SOC (Security Operations Center)-ready automation. This progress is underscored by the certifications NCD has already earned, including recognition as an Assured Service Provider by the United Kingdom’s National Cyber Security Centre.

Works Cited

[1] National Police Agency, “Threat Landscape in Cyberspace in the First Half of 2024”

[2] Ransomware refers to a type of cyberattack in which an organization’s data is encrypted and a ransom is demanded for its release.

[3] Ministry of Economy, Trade and Industry, “Results of the FY2023 Survey on the Conditions of Small and Medium Enterprises”

[4] ISC2, 2023 ISC2 Cybersecurity Workforce Study

About Nihon Cyber Defence

• CEO: Cartan McLaughlin 

• Established: October 11th, 2017 

• Location: TWG Kojimachi 701 3 Chome-10-1 Kojimachi Chiyoda-ku, Tokyo 102-0083

• Corporate URL: https://nihoncyberdefence.co.uk/

• Press release by company: https://prtimes.jp/main/html/rd/p/000000008.000160651.html

About MPower Partners

MPower Partners is a Japan-based venture capital fund with a mission to empower visionary gamechangers and unlock transformative growth. With our diverse investment team and deep global networks, we identify and support high-potential startups both in Japan and internationally. We go beyond capital investments by helping drive true and sustainable growth among our portfolio startups via our proprietary ESG framework. On a broader level, as bridge-builders and ecosystem shapers, we hope to leave the Japanese venture capital ecosystem better than we found it, one with more diversity and scale.

Fund website: https://www.mpower-partners.com

For inquiries, please contact: info@mpower-partners.com

This press release has been prepared for the purpose of providing information to qualified institutional investors and potential portfolio companies of the Fund, and is not a disclosure document pursuant to the Financial Instruments and Exchange Act, and does not constitute a solicitation or recommendation to purchase the Fund.