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Japan’s VC industry attracts global interest amid challenges

Japan’s venture capital (VC) industry has gained international attention in 2023, especially with China’s economic downturn, reports Nikkei. Emre Yuasa of Tokyo’s Globis Capital Partners notes growing global interest in Japanese startups, yet VC investment in Japan lags, dropping 21% to USD4.2bn through November. Foreign investment in Japanese VC remains modest, contributing only 10% in the first half of the year. Challenges hindering greater foreign involvement include smaller average deal sizes of USD4m, early public listings of startups, and cultural barriers within the VC sector. Only 7% of investment decision-makers in Japanese VC firms are non-Japanese, and women represent just 9%. These factors create a distinct investment landscape in Japan, contrasting with larger-scale ventures and diversity in the US, China, and India’s VC markets.


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