What Is the Space Strategy Fund? A Beginner's Guide to How It Works, Selection Criteria, and How to Apply (Phase 3: 200 Billion Yen)

This is Hamamoto from TIMEWELL.

The Space Strategy Fund is a financing vehicle established within JAXA (the Japan Aerospace Exploration Agency) to provide long-term, large-scale support for the development of space technology by private companies and universities[^1]. The government has set a target of roughly one trillion yen in total support[^2], and a scale of funding unprecedented in the space sector is now flowing to companies and universities through an open, competitive process.

It is easy to assume that "space is a game for the big players," but the actual list of awardees is full of startups and mid-sized firms. This article lays out how the fund works, what is inside Phase 3 (200 billion yen), the evaluation criteria for selection, and the application process — written for anyone looking into the subject for the first time.

The big picture: how three ministries and JAXA divide the work

Body	Role
Cabinet Office	Sets the fund's overall basic policy
MEXT, METI, and MIC	Each defines its own technology development themes and implementation policy
JAXA	Manages the fund and runs the open calls, reviews, awards, and hands-on support
Companies, universities, research institutions	Apply to a theme and, once selected, carry out development under a commissioned or grant arrangement

The key point is that the money is disbursed through theme-based open calls. The government signals "this is a technology we want to nurture," and companies and universities compete with their proposals. Support comes in two forms — commissioned projects and grant projects — and application guidelines are published for each theme[^1].

Inside Phase 3: the 200 billion yen breakdown and MEXT's themes

In February 2026, the basic policy was revised and the Phase 3 themes were set[^3]. Phase 3 totals 200 billion yen, broken down as 95 billion yen budgeted by MEXT (47.5%), 74 billion yen by METI (37%), and 31 billion yen by MIC (15.5%).

The MEXT portion centers on advanced technology development, with nine themes including sea-based launch and technologies for using resources from the Moon and asteroids[^3]. The METI portion leans toward industrialization, covering private rockets and mass production of satellites, while the MIC portion leans toward communications infrastructure such as satellite communications. Each ministry's themes have a distinct character.

As of July 2026, open calls remain in progress, including "Thermal protection technology for the atmospheric re-entry of space transport vehicles" (deadline September 24), "Renewing satellite development and manufacturing processes on the premise of digital technology" (deadline September 3), and "Technologies to promote LEO utilization" (deadline August 27)[^1]. Awards to date span a wide range in both scale and field — from large projects such as frequency-sharing technology between satellite communications and terrestrial networks (up to 11 billion yen over five years) to monitoring CO2 emission sources with satellite constellations.

Selection criteria: the evaluation points come down to four

"What exactly are the selection criteria" is probably the thing you most want to know. Strictly speaking, the evaluation items are spelled out in each theme's application guidelines, so reading the guidelines for the relevant theme before applying is the absolute prerequisite. That said, the evaluation points common to every theme come down to these four.

1. Fit with the theme. Does the proposal respond directly to the aim (the outcome target) of the technology development theme the government has set out?
2. Technical superiority and feasibility. Does the proposal offer novelty and an edge over existing technology, and is the plan achievable within the proposed period?
3. Outlook for commercialization and social implementation. Is there a clear path (customers, market, revenue model) to making the developed technology stand on its own as a business?
4. Soundness of the execution structure and plan. Are the staffing, funding plan, and milestones realistic?

One more thing matters: the stage-gate reviews that follow selection[^1]. The fund is not designed so that "once selected, you are set until the end." Progress is evaluated at each milestone, and continuation or termination is decided accordingly. Turned around, a proposal that sets concrete, measurable milestones at the application stage carries more weight in the review.

How to apply: start moving at the advance-notice stage

Here is the standard flow from open call to award[^1].

1. Advance notice of upcoming calls. A preview is published a few months before the main call. Ideally, this is where you start moving.
2. Call opens. The application guidelines and proposal templates are published, along with explanatory videos.
3. Drafting and submitting the proposal. Forming a consortium or lining up university partners needs to be settled by this stage.
4. Review and announcement of awards. It takes several months from submission to award.
5. Contract procedures. Commissioned projects proceed with contract documents; grant projects proceed with grant application documents.

Two practical pieces of advice, specifically for startups and mid-sized firms. First, do not try to do everything alone. Most awarded projects are structured around collaboration with universities or other companies. Second, make the commercialization story the centerpiece of your proposal. The Space Strategy Fund is not a research grant but "an investment to build an industry," so technical appeal alone will not get you through.

An often-overlooked issue: space technology and export controls

Finally, one point that often trips people up in practice after selection. Much space-related technology can fall under the list controls of the Foreign Exchange and Foreign Trade Act (Appended Table 1 of the Export Trade Control Order). Sharing rocket- or satellite-related technical information with overseas partners, or bringing international students onto a research team, are all situations subject to export control checks. The more the fund accelerates your development, the more this compliance work grows too.

If the burden of export control classification and counterparty screening becomes an issue, TRAFEED, the export control AI agent, is worth considering. It has a track record of adoption at universities and research institutions and supports advance screening of joint-research partners and incoming researchers.

Summary

• The Space Strategy Fund is a JAXA-based fund aiming for a total scale of one trillion yen. It supports development by companies and universities through theme-based open calls.
• Phase 3 totals 200 billion yen — 95 billion from MEXT, 74 billion from METI, and 31 billion from MIC — with each ministry's themes taking on a different character.
• The evaluation points for selection are fit with the theme, technical superiority, the outlook for commercialization, and the execution structure — plus stage-gate reviews after award.
• The standard playbook is to start preparing at the advance-notice stage and to lock in your collaboration structure and commercialization story.
• Space technology sits right next to export controls. Design your compliance structure alongside your development structure.

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References

[^1]: JAXA Space Strategy Fund (official site and open-call information) [^2]: Cabinet Office, "Space Strategy Fund" (space policy) [^3]: Ministry of Economy, Trade and Industry, "Revision of the 'Space Strategy Fund Basic Policy' and Formulation of the 'Space Strategy Fund Implementation Policy (METI-budgeted portion): Phase 3 Technology Development Themes'" (February 25, 2026)

We also referred to MEXT, "Space Strategy Fund Program".

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