Japan

Tokyo

#11

Global Startup Ecosystem

Members: Tokyo Metropolitan Government

#3

Global Ecosystem in Knowledge

Top 10

Global Ecosystem in Performance

#5

Asia Ecosystem in Talent & Experience

With significantly upgraded content, Sushi Tech Tokyo 2025 evolved into a larger and more fruitful event. 500 exhibiting startups, 5,000 business negotiations, and 50,000 participants. The three 'fives'.

Yuriko Koike

Tokyo Governor

Highlights

Tokyo's startup ecosystem leverages Japan's growing diversity and its strengths as a global innovation hub by fostering cross-cultural collaboration, attracting international talent, and integrating cutting-edge technology with deep-rooted expertise.

Since introducing its Global Innovation with Startups initiative in 2022, Tokyo Metropolitan Government (TMG) has expanded its budget 2.5x, nurturing an ecosystem where challengers are born, grow, and meet their potential. Its 10x10x10 project aims to grow global unicorns, public-private collaborations, and the number of startups in Tokyo.

Projects like SusHi Tech Tokyo, one of Asia's largest global innovation conferences for startup ecosystems to solve global urban issues, and Tokyo Innovation Base (TIB), a large-scale global hub aiming to become a node for innovation around the world, are strengthening connections between local and international ecosystem players. TIB celebrated its first anniversary in November 2024, welcoming 100,000+ visitors in its first year and hosting approximately 500 events. SusHi Tech Tokyo 2025 offered “Special Content: Focus On” sessions, exhibitions, and pitches providing deeper insights and interactions. Its ultimate aim was to create unicorns through extensive government support and a supportive community for growth-stage startups.

International firms including Eurazeo, Andreessen Horowitz, OpenAI, and Vertex have established bases in Japan, contributing to its significant presence of global companies and high concentration of large corporations. TIB CATAPULT is a powerful project aimed at accelerating open innovation with a focus on technological fields with high growth potential, forming innovation clusters between large corporations and universities, among others, to create collaborations with startups.

Tokyo is home to over 140 universities, providing a wealth of young talent for large corporations and startups seeking top-tier professionals. Nineteen university-based startups have been created and three internal GAP funds have been established as a result of TMG’s university support.

Ecosystem by the Numbers

ECOSYSTEM VALUE

(H2 2022 - 2024)

$68 BN

GLOBAL AVG. $20.4 bn

NUMBER OF UNICORNS

(ACTIVE UNICORNS)

8

GLOBAL AVG. 4

SOFT. ENGINEER SALARY

(2024)

$48 K

GLOBAL AVG. $52 K

TIME TO EXIT

(2020 - 2024)

9.9 YEARS

GLOBAL AVG. 11.2 years

TOTAL EARLY–STAGE FUNDING

(H2 2022 - 2024)

$3.2 BN

GLOBAL AVG. $514.8 m

MEDIAN SEED ROUND

(H2 2022 - 2024)

$770 K

GLOBAL AVG. $889 k

EARLY-STAGE FUNDING
GROWTH

(2021 - 22 VS. 2023 - 24)

8

Scale of 1 (lowest) to 10 (highest)

EXIT AMOUNT

(2020 - 2024)

$23 BN

GLOBAL AVG. $8 bn

ECOSYSTEM VALUE GROWTH

(H2 2020 - H2 2022 VS H2 2022 - H2 2024)

3%

GLOBAL AVG. -14%

MEDIAN SERIES A ROUND

(H2 2022 – 2024)

$2.2 M

GLOBAL AVG. $6.8 m

TOTAL VC FUNDING

(2020 - 2024)

$23.6 BN

GLOBAL AVG. $5.2 bn

EXIT COUNT (#)

(2020 - 2024)

568

95

2020

102

2021

108

2022

122

2023

141

2024

GLOBAL AVG. 86

Sub-Sector Strengths

AI, Big Data & Analytics

Tokyo-headquartered Sakana AI became a unicorn in September 2024, just over a year after its founding. In February 2025, Singapore-based asset manager Seraya Partners launched AQX, a Tokyo-based digital infrastructure investment platform targeting shared telecom and AI-enabling infrastructure. Microsoft opened Microsoft Research Asia Tokyo, its first R&D center in Japan, in November 2024 to integrate AI with robotics. These technologies are also contributing to the growth of the Fintech sector in Tokyo, an international financial city.

Quantum Technologies

Japan has the fourth largest government investment in Quantum Technology. Japan’s Vision of Quantum Future Society outlines three goals for 2030: reaching 10 million Quantum Tech users, fostering Quantum unicorns, and achieving $336 billion (50 trillion yen) in QT production. The National Institute of Advanced Industrial Science and Technology and IQM Quantum Computers signed an MOU in December 2024 in Tokyo to strengthen collaboration for the industrialization of quantum tech in Japan.

Food Tech

Japan’s Ministry of Agriculture announced grants for nine food tech startups in October 2024 as part of its Small and Medium-Sized Enterprise Innovation Promotion Program to accelerate the social implementation of advanced startup technologies. SKS Japan 2024 brought over 100 speakers from across the globe to Tokyo to discuss food innovation and discovery. In August 2024, premier food innovation hub KitchenTown partnered with the Japan External Trade Organization to launch the J-StarX Food Frontiers USA accelerator program, where ten of Japan’s most innovative Food Technology startups will establish a presence in the U.S. market.

Reasons to Move Your Startup to Tokyo

Market Access

Japan is the world's fourth-largest economy, with the majority of its activity centered in Tokyo. In the heart of Asia, Tokyo is a strategic gateway for startups, providing access to domestic and global markets. Through the Access to Tokyo initiative, TMG hosts overseas consultations in London, Paris, San Francisco, and Singapore to attract promising companies to the city. Tokyo has a high quality of life with clean air, safety, and widespread public transportation.

Technical Infrastructure

Tokyo Innovation Base offers a robust technical infrastructure for startups during all stages from ideation to commercialization, including prototyping and a test marking shop. In July 2024, Japanese data center operator At Tokyo Corporation launched its latest data center. Hyperscale data center solutions provider STACK Infrastructure opened its inaugural facility in the Tokyo metropolitan area in October 2024.

Dedicated Support

With 70% of Japanese startups concentrated in Tokyo, local and national startup support is key. Starting in 2024, the duration of the Startup Visa was extended from one to two years, while a newly-introduced Digital Nomad Visa further opens doors to foreign entrepreneurs. The Startup Development Five-Year Plan focuses on talent development, funding, and open innovation. TMG will establish a new public-private partnership to provide startup financing in 2025.

Selected Startup Organizations

Startup Genome Members

MEMBER

Tokyo Metropolitan Government

With the establishment of the "Office for Startup and Global Financial City Strategy" in April 2023, the Tokyo Metropolitan Government aims to accelerate the Japanese economy through a positive cycle of solving social issues and promoting industrial development powered by startups and the financial market. Aside from aforementioned initiatives such as the Tokyo Innovation Base (TIB) and SusHi Tech Tokyo, TMG are developing various initiatives to create innovation. The Tokyo Consortium, which TMG operates, encompasses stakeholders from large corporations, startups, universities, and other entities in order to collaborate organically and build an ecosystem that leads our world.

Key Ecosystem Players

CIC Japan G.K.

The largest innovation center in Japan, home to 250+ startups, VCs, researchers, and other organizations passionate about innovation.

Plug and Play Japan

A subsidiary of Plug and Play that aims to build a world-class platform that drives innovation. It connects leading corporations with startups to support them in expanding their possibilities from Japan to the world, and from the world to Japan.

The University of Tokyo Edge Capital Partners

UTEC works with academia in Japan and abroad, including the University of Tokyo. It supports science and technology startups that are pioneering frontiers to solve global issues with capital, talent, and knowledge.

Keio Innovation Initiative, Inc.

A VC firm established by Keio University, supporting startups that create innovative new businesses by utilizing the excellent research results of universities and research institutes.

The University of Tokyo

Japan's top university, a world-class center for research, and a vibrant academic community.

Venture Capital Hub

Gathered here are approximately 70 venture capital firms including key players such as the Japanese Venture Capital Association, independent firms leading Japan’s venture capital scene, and corporate venture arms affiliated with major Japanese corporations. Collaborative efforts with institutions like ARCH and CIC Tokyo at Toranomon Hills are set to promote the rise of uprising startup ventures.

News from the Ecosystem

Explore more ecosystems

Work with us

If you are interested in working with us to drive global attention to your ecosystem, please get in touch with Marina Krizman, Director of Business Development.

GET IN TOUCH