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One of the great advantages of startups, with their scrappy, disruptor attitude and grassroots beginnings (often getting started in a living room or garage), is their ability to approach local problems from an innovative angle. Breaking away from traditional frameworks, they employ new business models and technologies while engaging in rapid iterations to create value that might get overlooked as not profitable enough for traditional businesses.
In this article, we will showcase examples of startups currently gaining attention within Japan for their innovative approach to Japanese issues.
Japan generates approximately 400 million tons of industrial waste annually, with the waste disposal and recycling industry worth 12 trillion yen. Despite being a crucial infrastructure industry supporting the entire population, the industrial waste sector faces an increasingly severe labor shortage.
Fanfare aims to streamline the labor-intensive waste industry by offering a service called Haishagashira, which uses AI to efficiently create dispatch plans for industrial waste collection. Route optimization for waste collection is characterized by its complexity, involving constraints such as specific pickup times and vehicle types, which make it more challenging compared to other industries. The company tackles these challenges using Mixed Integer Linear Programming (MILP), a well-established optimization method.
With approximately 110,000 industrial waste operators in Japan, the industry is undergoing consolidation and restructuring. Using proprietary AI technology to automate the creation of dispatch plans—which are traditionally known for their high difficulty and reliance on individual expertise—the company enables businesses to handle as many dispatches as possible, even with limited staff. Currently, Haishagashira (literally “the head of vehicle”) has several early-adopter businesses, and it is actively developing features to cater to various types of waste and vehicles to provide value to more waste operators.
Excessive food loss leads to high waste disposal costs and environmental issues arising from the incineration centers used in Japan, like CO₂ emissions and ash disposal. According to the Ministry of Agriculture, Forestry and Fisheries (MAFF), food loss in 2022 totaled 4.72 million tons, down 510,000 tons from the previous year. Businesses accounted for 2.36 million tons (a 430,000-ton drop), and households also contributed 2.36 million tons (an 80,000-ton drop) (Source). Business food loss met its 2030 reduction goal—halving 2000 levels—eight years early in 2022 (Source). While progress is evident, more work is needed to further reduce environmental impacts.
Day Break sells their flagship product the Art Lock Freezer, a unique freezing machine, and Art Lock Food, a range of specially frozen food products. The freezer was launched in October 2021, and in about 18 months over 400 companies adopted the technology. Art Lock Food carries more than 90 frozen food items, such as cut fruits, smoothie kits, sushi, and grilled eel (kabayaki), sold through an e-commerce platform.
With conventional freezing, the temperature range where water inside cells turns to ice (0°C to -5°C) causes irregularly shaped ice crystals, leading to cell damage. In contrast, the company's freezing technology rapidly and uniformly cools, creating small ice crystals that minimize cell damage and retains flavor. Additionally, the use of proprietary airflow humidity control and airflow techniques allows for preserving food shapes and even flash-freezing warm, cooked dishes.
Kuradashi operates the social impact shopping site KURADASHI in their quest to actively address food waste issues. The company works to reduce food loss across supply chains, promoting the efficient use of valuable global food resources and packaging materials while minimizing waste.
Kuradashi acquires products from food manufacturers and producers that might otherwise be discarded due to reasons such as nearing expiration dates, surplus inventory, or seasonal misalignment. These items are sold to consumers at discounts of up to 97% off. Additionally, a portion of the sales is donated to organizations engaged in social activities such as environmental protection and disaster relief.
According to Japan's Ministry of Health, Labour and Welfare, the total cost of nursing care (including public nursing care benefits and out-of-pocket expenses) in 2022 reached a record high of 11.1912 trillion yen, an increase of approximately 162.1 billion yen from the previous year (source). As a result, the market for nursing care systems, such as software and tools to streamline operations in the industry, is also expanding.
3S provides scheduled in-home care services, a form of home care where caregivers visit multiple times a day for about 15 minutes per visit to provide personal care such as meals, medication, and toileting assistance. Unlike traditional home care, this service operates 24/7, including during nights and emergencies. This model addresses the growing demand for in-home care amidst an increasing shift toward facility-based services due to concerns over the lack of nighttime and emergency care. In December 2023, the company raised 330 million yen in Series A funding through a third-party allocation of shares to investors including Money Forward Venture Partners, Nissay Capital, SMBC Venture Capital, ANRI, and ANOBAKA.
PLIMES, a startup spinout from the University of Tsukuba, developed the wearable swallowing monitor GOKURI. Using AI, GOKURI tracks swallowing by measuring sounds, posture, and vital signs during eating. In addition to swallowing, it detects sounds related to choking or resting respiration. The device records data in real-time on a cloud-based database in networked environments. By providing this technology, the company aims to empower the elderly to live independently and actively. In March 2022, PLIMES raised funds through a third-party allocation of shares to Meiji Holdings and entered into a capital and business partnership to promote food development based on swallowing evaluations.
Startbahn is a company striving to create a richer society by providing technology that is essential for artists and everyone involved in art worldwide. Utilizing blockchain and NFT technologies, they have developed an infrastructure called Startrail to ensure the authenticity of artworks and support the long-term inheritance of their value.
Since 2020, they have been offering a service called Startbahn Cert, which issues blockchain certificates with IC tags for artworks. This system stores information in Startrail and provides an interface that is as user-friendly as traditional paper certificates of authenticity.
The company’s solutions are gaining traction due to the globalization of art distribution, the rise in non-contact sales during the COVID-19 pandemic, an increase in young collectors with high expectations for technology, and the issue of forgery circulation highlighted in reports earlier this year. Many art-related businesses, including artists, galleries, art collectors, and auction houses, have adopted their technology to ensure the secure transmission of information and guarantee the value of artworks. Startbahn's infrastructure is also utilized by businesses dealing with IP content.
The world's oceans face severe threats due to water pollution and global warming, yet changes beneath the surface often go unnoticed compared to terrestrial phenomena. INNOQUA addresses this challenge by developing technology to enhance awareness and action for marine conservation. Their groundbreaking environmental transfer technology uses AI to replicate real underwater environments in controlled aquariums, catering to the experimental needs of research institutions and corporations.
In 2022, INNOQUA achieved a world-first milestone by successfully inducing coral spawning during winter within an artificial seawater environment. This controlled approach to regulating coral spawning periods in a closed system highlights the transformative potential of their technology for marine conservation and restoration efforts.
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INNOQUA collaborates with numerous companies to advance environmental research and solutions. For example, in partnership with Shiseido, they replicate anticipated future environmental changes, such as rising seawater temperatures, within their controlled systems to conduct joint research to assess the impact of sunscreen ingredients on corals and other marine organisms. This collaboration aims to balance product innovation with ecological responsibility, addressing the broader issue of preserving marine biodiversity amidst changing environmental conditions.
Japan is a country prone to earthquakes and natural disasters so it os no wonder that numerous startups addressing these challenges have emerged locally. We previously introduced some of these companies here. Below, we highlight two additional rising stars in disaster management.
Gaia Vision develops and provides climate risk management platforms such as Climate Vision and flood forecasting solutions. Climate Vision enables organizations to easily assess climate risks, particularly floods, affecting their facilities and assets. By integrating advanced flood and climate change simulation technologies, Gaia Vision empowers companies to prepare for and mitigate the impacts of extreme weather and climate-related threats.
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Vigalux develops and sells mobile clinics utilizing construction containers. Their flagship product, the Mobile Clinic, is designed with built-in negative pressure systems to help prevent the spread of infectious diseases.
In addition to the Mobile Clinic, the company also develops and markets:
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Disaster preparedness items such as water, emergency food, and helmets are crucial during emergencies. However, many people do not prioritize disaster readiness in their daily lives, with a significant number of households in Japan lacking adequate disaster supplies. According to a 2024 survey (source), more than half of households still do not have a prepared emergency evacuation bag.
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In response, the company combines disaster preparedness items with a "catalog gift" concept called LIFEGIFT to promote their use. The company's goal is to foster a culture where people exchange these preparedness items as gifts, thereby raising awareness of disaster preparedness.
The company also operates a personalized disaster preparedness service called PASOBO. PASOBO users fill out an online questionnaire about their household, neighborhood, and lifestyle. Based on these responses, the system flags potential disaster risks in their environment and evaluates risks using hazard maps. It then provides personalized recommendations and sells customized disaster preparedness kits tailored to the user's specific needs.
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