Japan is a growing market for startups, with an increasing trend of venture capital investments in the country.
In 2020, Japanese startups raised a total of $5.5 billion, an increase from the previous year, despite the challenges posed by the COVID-19 pandemic.
Thriving Industries:
The technology, healthcare, and e-commerce sectors are among the most popular industries for startups in Japan.
The country is also known for its advanced robotics and AI industries, attracting global investors to the space.
Biggest Investors:
Some of the largest investors in Japanese startups include Global Brain, Incubate Fund, and Mistletoe.
Japanese conglomerates and financial institutions, such as SoftBank Group, Mitsubishi UFJ Financial Group, Rakuten Group, and Sumitomo Mitsui Banking Corporation, also play a significant role in financing startups in the country.
Popular Startups:
Mercari - An online marketplace for buying and selling goods, it is one of the most popular mobile applications in Japan.
ZigExN - A technology company offering marketing and advertising solutions, it was listed on the Tokyo Stock Exchange in 2020.
Freee - A cloud-based accounting software provider, it has become one of the most successful fintech startups in Japan.
Yamato Transport - An online courier delivery service provider, it has grown to become one of the largest e-commerce companies in Japan.
Raksul - An online retailer for office supplies and office equipment, it has expanded rapidly since its establishment in 2008.
Government Initiatives:
The Japanese government has been actively working to promote the growth of startups and attract foreign investment to the country.
In recent years, the government has introduced various tax incentives and subsidies for startups, as well as initiatives to support entrepreneurship education and training.
Japan has also been making efforts to further open up its market to foreign investment, in order to promote innovation and enhance the competitiveness of its startups.
Comparison to the rest of the world:
Japan's startup ecosystem is relatively less mature compared to the United States, Europe, and China, but it is gradually gaining momentum and attracting more attention from global investors.
The country has a strong culture of innovation, a large and highly educated talent pool, and a supportive government, which are all positive factors for the development of its startup ecosystem.