Japan has one of the strongest startup ecosystems in the world and is a pioneer of innovative business in East Asia, being rated the second best ecosystem in the area. With this in mind, it's no a surprise that the country produces a lot of top startups. Japanese startups benefit from an advanced and strong economy that makes it easier to do business. Some examples of big startups coming from Japan are SmartHR, SmartNews and Preferred Networks.
The Japanese startup ecosystem is supported by a large amount of VC funding, both from domestic and international investors. In 2021, the country raised a total of $6.3 Billion between its startups and the figures for 2022 show a similar trajectory with $3.39 Billion raised in the first half of 2022. In total, the company has more than 300 VC firms providing investments to top Japanese startups.
The Japanese government is also heavily involved in attempting to create a competitive and healthy environment for startups in the country. An example of this comes from the Startup City Project, where the government has selected eight cities where it is attempting to improve links between startups, local government and universities. Some of the chosen cities are Tokyo, Hiroshima, Kansai and more.
1. Psychic VR Lab
Year Founded: 2016
HQ: Tokyo, Japan
Size: 1-10
Founders: Yasuhiro Yamaguchi
Psychic VR Lab is a Japanese startup that was founded in 2016 and is currently based in Tokyo, Japan. The business operates in the fashion and software markets and is helping fashion brands to augment their marketing capability with the help of virtual reality technology, as it allows customers to have greater visibility of potential items that they want to buy.
Since being founded, the company has seen success in raising startup funding, with a total of 1 Billion Yen being raised by a group of ten investors. The business has also completed an investment of its own to improve its business.
2. LegalForce
Year Founded: 2017
HQ: Toyosu, Japan
Size: 51-100
Founders: Nozomu Tsunoda, Ogasawara Masataka
LegalForce is a Japanese startup that was founded in 2017 and is currently based in Toyosu, Japan. The business works in the technology market specifically assisting businesses in the legal sector. They offer AI-powered contract management services to help free up more time among lawyers and support staff so they can focus on more value-adding tasks for the business.
The business has had a great few funding rounds since being founded, with the most recent taking place in June 2022, where Goldman Sachs became involved in investing. In total, the company has raised a figure of 18.3 Billion Yen from fourteen investors and it's likely that the company will seek further funding in the future.
3. SushiSwap
Year Founded: 2020
HQ: Tokyo, Japan
Size: 11-50
Founders: Chef Nomi, Ox Maki
SushiSwap is a Japanese startup that was founded in 2020 and is currently based in Tokyo, Japan. The company operates a decentralized cryptocurrency exchange that lets users swap their tokens, get liquidity and also get access to a wide range of various decentralized finance services. The company is one of the most well-known crypto businesses in the country.
The business has done well in securing funding since being founded, with a total of $5.3 Million in funding being raised by a single investor. It is unclear whether the business will be raising additional funding in the future as it seems to have a strong financial base for achieving its goals.
4. Ubie
Year Founded: 2017
HQ: Tokyo, Japan
Size: 101-250
Founders: Abe Yoshiniro, Kubo Kota
Ubie is a Japanese startup that was founded in 2017 and is currently based in Tokyo, Japan. The company is a tech startup that operates in the healthcare sector. They create technological solutions for hospitals, such as SaaS solutions, AI-based symptom checkers and more to help improve patient outcomes within a number of Japanese healthcare institutions.
The company has been very successful in raising startup funding, with a total of $77.7 Million from fifteen investors. The last funding round for the business took place in December 2022 when it raised $17 Million from four investors during a Series C Funding Round, helping the business to scale to further levels.
5. Dioseve
Year Founded: 2021
HQ: Tokyo, Japan
Size: 11-50
Founders: Kazuma Kishida
Dioseve is a Japanese startup that was founded in 2021 and is currently based in Tokyo, Japan. The company operates in the biotechnology and healthcare markets and aims to solve a number of problems relating to fertility and pregnancy- to help patients to have a better chance at having the family life that they deserve.
The business has been through a single round of startup funding since being founded, with this round involving a pair of investors. From these investors, the business has managed to raise a figure of $3 Million in startup funding.
6. oVice
Year Founded: 2020
HQ: Tokyo, Japan
Size: 51-100
Founders: Sae Hyung Jung
oVice is a Japanese startup that was founded in 2020 and is currently based in Tokyo, Japan. The company has created a collaboration platform to help teams to stay connected through the virtual world with the use of virtual avatars and voice chat functionality. The platform can be customized to meet the specific needs of the business using the platform.
The company has proven to be very popular with investors, with a total of $48.8 Million being raised from eight investors. Its most recent funding round was a Series B in August 2022 when it raised $32 Million to fuel its ambitions for expansion across the next few years.
7. PayPay
Year Founded: 2018
HQ: Tokyo, Japan
Size: 101-250
Founders: Unknown
PayPay is a startup in Japan that was founded in 2018 and is currently based in Tokyo, Japan. The business has created an online payment solution for people and businesses in the country that offers a range of benefits and improvements on traditional methods of making payments. The company has been completing an aggressive expansion into international markets, including the UK.
The company is one of the most well-backed in Japan, with a total of 53.5 Billion Yen in funding being raised from eight investors. As the business increases its plans for expansion, it is very likely that it will seek further funding in the future.
8. Sonire Therapeutics
Year Founded: 2020
HQ: Shinjuku, Japan
Size: 11-50
Founders: Tohru Satou
Sonire Therapeutics is a Japanese startup that was founded in 2020 and is currently based in Shinjuku, Japan. The company works in the medical field and utilizes High-Intensity Focused Ultrasound to assist with the treatment of cancer. Their aim to help save lives with their newest medical breakthroughs and improve patient outcomes.
The business has been through a single round of funding since being founded, with this funding round taking place in June 2021. From this funding round, the business has been able to raise 530 Million Yen from eight investors.
9. Terra Drone
Year Founded: 2016
HQ: Tokyo, Japan
Size: 101-250
Founders: Toru Tokushige
Terra Drone is a Japanese startup that was founded in 2016 and is currently based in Tokyo, Japan. The company manufacturers and designs drones and the accompanying software, whilst also offering drone surveillance services to a range of civil engineering companies and those involved in industries such as oil, saving manpower and making surveys safer for employees.
The business has been very well funded since being founded, with the company raising a total of $94.2 Million from a group of eleven investors. It should also be noted that the company completed the acquisition of another startup to fuel its own growth and development.
10. SkyDrive
Year Founded: 2018
HQ: Tokyo, Japan
Size: 51-100
Founders: Matsumoto Hisashi, Tomohiro Fukuzawa
SkyDrive is a Japanese startup that was founded in 2018 and is currently based in Tokyo, Japan. The company is behind the development and manufacturing of increasingly advanced prototypes for flying cars. They have a vision to unclog the roadways on the ground and improve the way we travel.
The company has been very heavily funded since being founded, with the company raising a total of 5.7 Billion Yen from a group of thirteen investors. The technology is cutting edge and its very likely that it will require further funding before we get close to the truly workable demo stage.
11. CADDi
Year Founded: 2017
HQ: Kuramae, Japan
Size: 101-250
Founders: Daiki Yukimatsu, Kobashi Akifumi, Yushiro Kato
CADDi is a Japanese startup that was founded in 2017 and is currently based in Kuramae, Japan. The company operates in the IT sector and provides support specifically to the manufacturing sector. The business provides an online ordering platform for these businesses so that they can get access to high-quality materials and easily see where they've come from.
The company has been very heavily funded since being founded, with the company raising a total of 9.1 Billion Yen from eleven investors. The last funding round for the business took place in August 2021 when it raised 8 Billion Yen from 10 investors during its Series B Round.
12. Thirdverse
Year Founded: 2016
HQ: Tokyo, Japan
Size: 11-50
Founders: Hironao Kunimitsu, Masaru Ohnogi, Satoshi Ban, Takufumi Inagawa
Thirdverse is a Japanese startup that was founded in 2016 and is currently based in Tokyo, Japan. The company operates in the video game industry and runs a development studio for web3 and virtual reality gaming. The type of games they create are in the multiplayer sphere of gaming and they aim to bring more fun to VR technology.
The studio has done very well for startup funding with a total of $35.8 Million being raised from twenty investors. Its last funding round took place in November 2022 when it raised $15 Million.
13. Techtouch
Year Founded: 2018
HQ: Tokyo, Japan
Size: 51-100
Founders: Naka Imuta
Techtouch is a Japanese startup that was founded in 2018 and is currently based in Toyo, Japan. The company works in the IT sector and allows businesses to put explainers and guidance on existing web systems so that they can be used more effectively to the betterment of the organization.
The business has done well with raising funding and has managed to raise a total of 2.6 Billion Yen from nine investors. The last funding round for the startup took place in January 2023 when it raised 1.78 Billion Yen from eight investors during a Series B Round.
14. SOUNDRAW
Year Founded: 2020
HQ: Tokyo, Japan
Size: 1-10
Founders: Daigo Kusunoki
SOUNDRAW is a startup in Japan that was founded in 2020 and is currently based in Tokyo, Japan. The company has developed an AI-based platform for generating royalty-free music for use by a variety of different creatives. Users are able to select the mood and type of song they want to create and the platform will do this for them.
SOUNDRAW has been sufficiently backed by investors, with the company raising a total of 245 Million Yen from ten investors. The last funding round for the company came in July 2022 when it raised 180 Million Yen from five investors during a Series A round.
15. SODA
Year Founded: 2018
HQ: Tokyo, Japan
Size: 101-250
Founders: Ayato Kinkori, Yuki Teratani, Yuta Uchiyama
SODA is a Japanese startup that was founded in 2018 and is currently based in Tokyo, Japan. The company operates in the fashion industry and has created a number of high-quality sneakers and streetwear, with the brand name being SNKRDUNK and it's currently used by more than 3 Million people in Japan.
The business has secured a large amount of startup funding since being founded, with the most recent funding round taking place in December 2021 as a Series D when it raised 2.8 Billion Yen from SoftBank Vision Fund. Overall, the company has raised a tota of 11.6 Billion Yen in funding from eleven investors.
16. Synspective
Year Founded: 2018
HQ: Tokyo, Japan
Size: 51-100
Founders: Motoyuki Arai, Seiko Shirasaka
Synspective is a Japanese startup that was founded in 2018 and is currently based in Tokyo, Japan. The company works in the computing market and assists businesses with a range of challenges utilizing and then integrating data from SAR, satellite constellations, big data and more to improve their technical capabilities.
The business has been significantly backed since being founded, with the company raising a total of $208.1 Million from 27 investors. The company's most recent funding round was a $100 Million Series B Round where it raised the funds from a pair of investors.
17. FingerVision
Year Founded: 2021
HQ: Tokyo, Japan
Size: 11-50
Founders: Akihiko Yamaguchi, Christopher Atkeson
FingerVision is a Japanese startup that was founded in 2021 and is currently based in Tokyo, Japan. The company works in the robotics industry and aims to make robots more mobile for a range of different applications for social business and implementing experimental technology to increase the potential use cases for robotics technology.
The founders have done a great job of securing funding since being founded, with the company raising a total of 100 Million Yen in its first funding round. This funding round was its Seed Round and was supported by Keio Innovation Initiative.
18. KabuK Style
Year Founded: 2019
HQ: Tokyo, Japan
Size: 101-250
Founders: Kenji Sunada
KabuK Style is a Japanese startup that was founded in 2019 and is currently based in Toyko, Japan. The business aims to create a better environment for working professionals by combining co-working spaces with accommodation facilities and cafes. This helps to create an environment where business owners and employees can work comfortably even if its not from their own office.
Since being founded, the business has done well in securing startup funding, with a total of 1.3 Billion Yen being raised from nine investors. The company's last funding round was a round in April 2021 where it raised 125 Million Yen from Kintestu Venture Partners. The business is likely to seek further funding as it expands.
19. Avacus
Year Founded: 2019
HQ: Nagoya, Japan
Size: 51-100
Founders: Yoshihiro Takahara
Avacus is a Japanese startup that was founded in 2019 and is currently based in Nagoya, Japan. The company operates in the blockchain market and provides the ecosystem for blockchain system design and development services. They are helping to drive the adoption of blockchain and cryptocurrencies by allowing for the creation of technically sound environments.
The business has gone through a single round of funding since being founded, with this round being an Angel Round that took place in December 2022. This round was supported by Fundinno and the company managed to raise 60.1 Million Yen.
20. NOT A HOTEL
Year Founded: 2020
HQ: Miyazaki, Japan
Size: 11-50
Founders: Shinji Hamazuru
NOT A HOTEL is a Japanese startup that was founded in 2020 and is currently based in Miyazaki, Japan. The company operates a membership service that allows users to stay in their properties when they are vacationing and also allows them to rent it out when it's not in use to eliminate waste.
The business has secured a large amount of startup funding since being founded, with 1 Billion Yen being raised in total from five investors. The most recent funding round occurred in March 2021 when it raised an undisclosed amount from Oriental Land Innovations.
21. Andpad
Year Founded: 2015
HQ: Tokyo, Japan
Size: 1-10
Founders: Takeo Inada
Andpad is a startup in Japan that was founded in 2015 and is currently based in the city of Tokyo. The company operates in the software market and helps construction businesses by providing them with an app to manage their construction projects. This helps to increase efficiency and stop projects from running over cost.
Despite the small headcount, the business has secured a large amount of startup funding. Since being founded, the business has managed to raise 10.1 Billion Yen from ten investors. The company's last funding round was a Series C round that took place in October 2022 when the business raised 2 Billion Yen from two investors.
FAQs
How Many Startups Are There in Japan?
There are currently more than 10,000 startups in Japan.
What is the Average Investment in Japanese Startups?
The average Seed Round in Tokyo is worth $789,000 and the average Series A is worth $2.7 Million.
What Startup Industries Are The Strongest in Japan?
The strongest startup industries in Japan are Robotics, FinTech and Life Sciences.
