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Despite the technological advancement, Japan tends to be unsupportive of startups. However, there has been acceleration in startup development over the last five years as companies are taking risks and investing in new ventures. The Japanese government has also launched various programs and funding to improve ventures condition.
FREMONT, CA: Japan tends to be unsupportive of startups despite being known for its technological advancements. The factors affecting startup development are the traditional mindset of not considering starting or joining a new venture as an attractive career path for the country's students. Also, the company’s reluctance to invest in new ventures and not willing to take risk contribute to the negative aspect. In order to develop this startup ecosystem, these ventures should be considered as assets for investors globally and instead of merely aiming for a small initial public offering (IPO), these startups have to be acquired by overseas companies for growth and expansion.
However, the current prime minister is promising to establish a fund worth 637million euros for technical up-gradation brings hope for the country's startups. Further, the startup funding in Japan totaled three billion dollars in the first half of 2021, which has increased three times since 2016 and ten times the amount of funding provided a decade ago. Corporate VC (CVC) activities in Japan are raising funding for startups and it has grown fivefold from 2013 to 2018. Along with this, there is an increment in top-tier investors throughout the world looking for opportunities.
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Various support programs were also launched by the Japanese government agencies, both central and local, to accelerate the technological development of startups. The Japanese government, with Japan Investment Corporation, provides budget of over 20billion dollars and tax breaks incentives for companies investing in startups. The startups have been the focal point for five years now. Many prominent businesses have understood the need to look for innovative technologies and ideas externally, encouraging companies to invest in more startups.
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