Startup Ecosystem in Yokohama City

Yokohama City - basic information

Yokohama is a port city located in Kanagawa Prefecture, and is known for its diverse blend of history, culture, and modernity. Yokohama Port was established when Japan opened its borders in 1859, and since then the city has developed as a hub for international trade and cultural exchange. Areas like Motomachi and Chinatown are particularly symbolic of Yokohama's history and international character. Yokohama is also home to a variety of cultural facilities; the Yokohama Museum of Art offers excellent artworks from both Japan and abroad, while the Yokohama Arena and Kanagawa Kenmin Hall provide venues for music and theater.

Yokohama has excellent transportation connections, making it easily accessible from Tokyo and vi bullet train to the rest of Japan to the south. This has made the city popular not only among tourists but also as a convenient and desirable place to live for commuters and students.

These elements combine to make Yokohama a city with a rich fusion of history, culture, and modernity, cherished by many.

Startup  Ecosystem in Yokohama City

Yokohama City has built a diverse ecosystem that provides support to both domestic and international entrepreneurs and startups, making it an attractive city, especially for foreign entrepreneurs. The startup ecosystem in Yokohama consists of the following key elements:

1. Infrastructure and Location

Yokohama is conveniently located next to Tokyo — a very important factor for startups. Central areas of Yokohama such as Minato Mirai and Kannai are also sizable business and commercial hubs in their own right, and the presence of Yokohama Port makes the area advantageous for international trade and business.

2. Accelerators and Incubators

Yokohama has many accelerators and incubators that support the growth of startup companies. These facilities provide opportunities for fundraising, business model development, and networking.

• Yokohama Techno Park: A facility focused on technology-based startups, supporting development, research, and experimentation.
• Innovation Design Center Yokohama (IDCY): This center provides support for product development and marketing strategies.

3. Investors and Fundraising

Yokohama is also a hub for investors and venture capitalists. The city's startup ecosystem includes entities like Yokohama Venture Capital and Yokohama Startup Support Center, which provide investment and fundraising support for startups.

4. Coworking Spaces

Yokohama has many coworking spaces, allowing new businesses to start with low costs and foster networking with other entrepreneurs. Notable examples include Yokohama Bay Area Innovation Center and Impact Hub Yokohama.

Startup Visa

The City of Yokohama will issue a startup visa for the following fields of industry:

(1) IoT, life innovation

(2) Business using innovative technology

(3) Knowledge-intensive and value-added business

(4) Other businesses aiming to create new industries

※Wholesale, retail, trading, food and beverage, lodging, and service industry are not eligible.

To obtain a startup visa and begin a business in Yokohama, foreign entrepreneurs must follow the procedures and processes outlined below (source):

1. Pre-consultation and Interview:
   ‍Before submitting an application, it is mandatory for applicants to consult with the coordinator at the Yokohama City Startup Visa Support Desk. An appointment for this consultation must be made in advance.
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2. Creation and Submission of the Startup Activity Plan:‍
   The startup activity plan is developed with support from the YOXO BOX (a startup growth support base). This plan is then submitted to Yokohama City for review. If the city determines that the plan meets the criteria for a Business Manager visa, a confirmation certificate will be issued.
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3. Application for Designated Activities Visa‍
   After receiving the confirmation certificate from Yokohama City, the entrepreneur must apply for the Designated Activities visa at the Tokyo Immigration Bureau's Yokohama branch. This visa allows them to stay in Japan for a maximum of one year.
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4. Visa Renewal and Progress Review‍
   Entrepreneurs who have obtained the Designated Activities visa will need to renew their visa after six months. For the renewal, an updated startup activity plan must be submitted to show continued compliance with the criteria for the Business Manager visa. Additionally, monthly progress review meetings are held at YOXO BOX, where entrepreneurs may be asked to submit documents (such as bank statements, office lease contracts, and business registration documents).

Through these processes, foreign entrepreneurs can receive support to start and grow their businesses in Yokohama. In 2024, the first startup utilizing this visa system was established; Korean entrepreneur Baek Seung-Ran founded an IT company called NAMOS in Yokohama!

Living costs

Here’s the costs of living alone in Yokohama City, based on data from the Ministry of Internal Affairs and Communications' Consumer Price Regional Difference Index published in 2022.

Rent

The biggest expense when living alone in Yokohama is rent. While the rent in Yokohama is slightly lower than in the central areas of Tokyo’s 23 wards, it is still higher than the national average. For example, rent for a studio or 1K apartment typically ranges from 70,000 to 100,000 yen per month. Rent is higher in central areas like Minatomirai and around Yokohama Station, and becomes somewhat cheaper as you move towards the suburbs.

Food Costs

According to the Consumer Price Regional Difference Index, food costs in Yokohama are slightly higher than the national average, especially for dining out. Even when cooking at home, food prices at supermarkets tend to be slightly higher than the national average. Monthly food expenses for someone who primarily cooks at home would range from 30,000 to 50,000 yen, while those who eat out often can expect to spend more.

Utility Costs

Utility costs such as electricity, gas, and water are similar to the national average. These costs fluctuate depending on the season and lifestyle, but for someone living alone, monthly utility costs typically range from 10,000 to 15,000 yen.

Transportation Costs

Yokohama has a well-developed public transportation system, and many people use trains and buses. Transportation costs using a commuter pass or IC card depend on commuting distance and frequency, but they usually average around 10,000 yen per month. If commuting to central Tokyo, transportation costs may be higher.

Other Living Expenses

Prices for daily items and consumables are about the same as the national average, but smartphone and internet communication costs can be high depending on the contract. For these, it's advisable to budget around 20,000 to 30,000 yen per month.

Overall Living Expenses

Based on the Consumer Price Regional Difference Index, the total monthly living expenses in Yokohama, including rent, are typically between 150,000 and 200,000 yen. Of course, this varies depending on lifestyle and location, but it is a standard range for living in the greater Tokyo area.

This gives a comprehensive view of the cost of living for a single person in Yokohama, highlighting how factors such as rent, food, utilities, transportation, and other living costs add up.

Recommended Websites and Agents for Finding Apartments and Share Houses in Yokohama City

When searching for shared houses in Yokohama, foreigners can reduce language barriers and the complexity of the contract process by using specialized websites and agents. Here are some recommended websites and agencies:

1. Sakura House
   • Overview: Sakura House is a well-established Japanese real estate company specializing in shared houses and apartments for foreigners. While their properties are primarily in Tokyo, they also offer several shared houses in Yokohama. The staff provides multilingual support, making it a foreigner-friendly service.
   • Features: Contracts can be made in English, and both short-term and long-term stays are possible. Initial costs are relatively low, making it easy to move in.
2. Oakhouse
   • Overview: Oakhouse operates shared houses across Japan, with many foreign residents. They run a number of shared houses in Yokohama, offering a variety of properties.
   • Features: Staff who can communicate in English are available, ensuring smooth property viewings and contract procedures. Additionally, Oakhouse supports community activities that help foreigners adjust to life in Japan.
3. Borderless House
   • Overview: Borderless House operates shared houses designed for international exchange, providing an environment where foreigners and Japanese people live together. They have several properties in Yokohama and emphasize language exchange and cultural interaction.
   • Features: The resident composition is intentionally balanced, with half being foreigners and half Japanese, fostering international exchange. Support in English is available, including assistance with contracts and post-move-in life support.
4. Real Estate Japan
   • Overview: Real Estate Japan is a real estate portal site specifically for foreigners, featuring numerous shared houses in Yokohama. The site makes it easy to search for properties and offers a wealth of information geared towards foreigners.
   • Features: Many properties are available with English support, and detailed information and photos are provided, allowing foreigners to confidently choose properties. The site also offers visa support and helpful living information to assist with settling in Japan.

These websites and agents provide excellent options for foreigners looking for shared houses in Yokohama, offering support in English and other languages to simplify the process.

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