Japan, a pioneer of innovation in East Asia and boasting one of the world’s most robust startup ecosystems, continues to produce groundbreaking startups. It’s no surprise, given its status as the second-best ecosystem in the region. The Japanese startup scene thrives, thanks to a strong and advanced economy, which makes doing business easier. Notable Japanese startups, such as SmartHR, SmartNews, and Preferred Networks, exemplify this spirit of innovation.
Japanese startups enjoy substantial support from venture capital (VC) funding, both domestic and international. In 2021, these startups collectively raised an impressive $6.3 billion, with 2022 showing similar promise, securing $3.39 billion in the first half alone. Japan boasts over 300 VC firms actively investing in promising startups.
The Japanese government actively fosters a competitive and supportive environment for startups. Initiatives like the Startup City Project target eight cities, including Tokyo, Hiroshima, and Kansai, aiming to strengthen ties between startups, local governments, and universities.
Let’s explore the top 10 Japanese startups set to make waves in 2023:
- Psychic VR Lab
– Year Founded: 2016
– HQ: Tokyo, Japan
– Founders: Yasuhiro Yamaguchi
Psychic VR Lab, founded in 2016, operates in the fashion and software sectors. It leverages virtual reality technology to enhance the marketing capabilities of fashion brands. This innovation provides customers with greater visibility of potential purchases. The company has raised 1 billion yen from ten investors, reflecting its success.
- LegalForce
– Year Founded: 2017
– HQ: Toyosu, Japan
– Founders: Nozomu Tsunoda, Ogasawara Masataka
LegalForce, established in 2017, specializes in technology solutions for the legal sector. Their AI-powered contract management services streamline legal operations, allowing lawyers and support staff to focus on higher-value tasks. The startup has attracted 18.3 billion yen in funding, including an investment from Goldman Sachs in June 2022.
- SushiSwap
– Year Founded: 2020
– HQ: Tokyo, Japan
– Founders: Chef Nomi, Ox Maki
SushiSwap, founded in 2020, operates a decentralized cryptocurrency exchange. Users can swap tokens, access liquidity, and explore various decentralized finance services. With $5.3 million in funding from a single investor, SushiSwap is well-positioned in the crypto space.
- Ubie
– Year Founded: 2017
– HQ: Tokyo, Japan
– Founders: Abe Yoshiniro, Kubo Kota
Ubie, established in 2017, is a healthcare tech startup. It provides hospitals with technological solutions, including SaaS offerings and AI-based symptom checkers, to enhance patient outcomes. The company has raised an impressive $77.7 million from fifteen investors, notably securing $17 million in its Series C Funding Round in December 2022.
- Dioseve
– Year Founded: 2021
– HQ: Tokyo, Japan
– Founder: Kazuma Kishida
Dioseve, founded in 2021, operates in the biotechnology and healthcare sectors. It addresses fertility and pregnancy-related challenges, aiming to improve family life prospects. The startup has successfully secured $3 million in funding from a pair of investors.
- oVice
– Year Founded: 2020
– HQ: Tokyo, Japan
– Founder: Sae Hyung Jung
oVice, established in 2020, offers a virtual collaboration platform. It allows teams to stay connected through virtual avatars and voice chat, tailoring the platform to meet specific business needs. The startup has raised an impressive $48.8 million from eight investors, supporting its expansion goals.
- PayPay
– Year Founded: 2018
– HQ: Tokyo, Japan
PayPay, founded in 2018, provides an online payment solution for individuals and businesses in Japan. It enhances traditional payment methods and has even expanded into international markets, including the UK. The company is well-backed, with 53.5 billion yen in funding from eight investors.
- Sonire Therapeutics
– Year Founded: 2020
– HQ: Shinjuku, Japan
– Founder: Tohru Satou
Sonire Therapeutics, established in 2020, operates in the medical field, utilizing High-Intensity Focused Ultrasound for cancer treatment. Their groundbreaking work aims to save lives and improve patient outcomes. The startup raised 530 million yen in a single funding round in June 2021.
- Terra Drone
– Year Founded: 2016
– HQ: Tokyo, Japan
– Founder: Toru Tokushige
Terra Drone, founded in 2016, specializes in manufacturing and designing drones and accompanying software. It offers drone surveillance services to civil engineering and oil industry companies, streamlining operations and safety. With $94.2 million in funding from eleven investors, including acquisitions, Terra Drone is poised for growth.
- SkyDrive
– Year Founded: 2018
– HQ: Tokyo, Japan
– Founders: Matsumoto Hisashi, Tomohiro Fukuzawa
SkyDrive, established in 2018, is at the forefront of developing flying car prototypes. Their vision is to alleviate ground traffic congestion and revolutionize travel. With a substantial funding of 5.7 billion yen from thirteen investors, SkyDrive aims to bring this innovative technology closer to reality.