Toda Construction Co. has signed an investment agreement for Zacua Ventures Fund II, a global venture capital fund focused on startups in the built environment sector, the Japanese builder said on August 28.

The investment makes Toda the first Japanese company to back a fund managed by San Francisco-based Zacua Ventures. Zacua invests in technologies aimed at transforming the built environment, including construction, urban environments and real estate.

Toda said the investment will strengthen its search for advanced technologies and startups overseas. Through the partnership, it aims to use access to technology trends to refine its innovation strategy and build networks with companies leading built environment technologies.

The built environment broadly covers the man-made physical environment, including buildings, infrastructure and urban spaces. For construction companies, venture investments and partnerships with startups can provide access to technologies tied to labor shortages, aging infrastructure, productivity improvement and sustainability.

Toda set up a dedicated organization in 2020 to pursue co-creation with startups and established a specific investment allocation for that effort. Since then, it has collected and reviewed information on more than 3,500 startups globally and shared more than 730 potential collaboration opportunities with internal business divisions, leading to specific partnerships and technology implementation.

The company has also invested in 17 startups and eight venture capital funds, expanding its co-creation network. Toda linked the Zacua investment to its Future Vision CX150 initiative, under which it aims to create new value by combining information and functions in new ways.

Zacua Ventures was founded in 2022 and is led by founding partner Vivin Hegde. Its Fund II vehicle, formally named Zacua Ventures Fund II, L.P., was established in 2025 and has a 10-year term.

Japan’s large construction companies have been stepping up efforts to work with startups as the industry faces chronic labor constraints and pressure to raise efficiency at project sites.

Venture capital
Startups