Japan's start-up ecosystem has been bullish over the past decade, making it a can't-miss investment opportunity for investors who have previously overlooked the Japanese market.
The Japan Startup Ecosystem Report 2023, published jointly by Japanese start-up database provider INITIAL and Globis Capital Partners, provides insight into the Japanese start-up ecosystem and the latest trends.
Investment in Japanese start-ups has increased tenfold over the past decade and reached 850 billion yen (approximately USD 6 billion) in 2023. This growth is supported by the expansion of VC funds, the promotion of open innovation by companies, and the government's five-year plan to create unicorns.
A number of unicorn companies have emerged from Japan, including companies such as Mercari, with an IPO for JPY 676 billion (approximately USD 4.8 billion), which is changing the criteria for evaluating start-ups. Investment themes range from B2B SaaS to consumer apps and deep tech, and are characterized by many areas that remain untapped compared to the highly competitive US and Chinese markets.
In addition, despite the global downturn in technology stocks in 2023, the Japanese start-up ecosystem is showing strong resilience, with investment, IPO and M&A activity outpacing 2019-2020 levels.
This report is aimed at international venture capitalists and limited partners who wish to gain a comprehensive understanding of the Japanese start-up ecosystem, as well as entrepreneurs and related stakeholders who are considering expanding to Japan.
https://initial.inc/enterprise/resources/japanstartupecosystemreport2023
