What happened: International investors' interest in Japanese startups is growing due to supportive governmental policies, per Coral Capital's CEO James Riney. Additionally, China's tech crackdown and rising tensions between the U.S. and China are prompting investors to switch their focus toward Japan. As a result, Riney expects Japanese startups to defy the global venture funding slump this year. What the numbers say: Japanese startups nabbed $6.2B (877.4B yen) in funding in 2022, up 3.1% from 2021's tally of $6B (850.8B yen). The upward trajectory continued this year, with funding increasing slightly in Q1 2023. What's next: Prime Minister Fumio Kishida is looking to increase investments in Japanese startups tenfold to $70B (10T yen) over the next five years. Japan is considering easing the restrictions on domestic funds and providing tax incentives to new startups in order to entice foreign investors. |
