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Startup Ecosystem in Tokyo

Startup Ecosystem in Tokyo
Startup Ecosystem in Tokyo
Tokyo has developed a distinctive and increasingly dynamic startup ecosystem, combining exceptional corporate resources, engineering talent depth, and growing institutional openness to drive innovation within the world's third-largest economy. The city has produced notable successes like Mercari in marketplace technology, SmartNews in news discovery, and Preferred Networks in industrial AI, reflecting its particular strengths in robotics, advanced manufacturing technologies, fintech, and consumer applications. The funding landscape features growing venture capital activity through firms like JAFCO and Global Brain, complemented by exceptionally active corporate venture arms from Japanese industrial giants like SoftBank, NTT Docomo Ventures, and Toyota AI Ventures. Angel investors bring deep technical expertise alongside capital, though individual angel activity remains less developed than in Western ecosystems, with successful entrepreneurs still building the reinvestment tradition. The accelerator environment includes both broad programs like 01Booster and specialized initiatives driven by corporate innovation needs, including accelerators focused on space technology commercialization and digital transformation. Throughout the metropolitan area, innovation clusters have formed around specific strengths: Shibuya district has emerged as the primary startup hub dubbed "Bit Valley," while specialized zones have developed in Roppongi near international firms, Nihonbashi for life sciences innovation, and various suburban centers housing corporate innovation facilities. Tokyo startups benefit from exceptional manufacturing and engineering expertise, unmatched corporate resources increasingly accessible through partnership programs, enormous domestic market providing initial scale, and growing government commitment to entrepreneurship. Yet founders must navigate still-developing risk capital availability at early stages, traditional career preferences that have historically limited talent flow to startups, occasionally complex business formalities requiring cultural navigation, and language barriers that can affect international market expansion.
Tokyo has developed a distinctive and increasingly dynamic startup ecosystem, combining exceptional corporate resources, engineering talent depth, and growing institutional openness to drive innovation within the world's third-largest economy. The city has produced notable successes like Mercari in marketplace technology, SmartNews in news discovery, and Preferred Networks in industrial AI, reflecting its particular strengths in robotics, advanced manufacturing technologies, fintech, and consumer applications. The funding landscape features growing venture capital activity through firms like JAFCO and Global Brain, complemented by exceptionally active corporate venture arms from Japanese industrial giants like SoftBank, NTT Docomo Ventures, and Toyota AI Ventures. Angel investors bring deep technical expertise alongside capital, though individual angel activity remains less developed than in Western ecosystems, with successful entrepreneurs still building the reinvestment tradition. The accelerator environment includes both broad programs like 01Booster and specialized initiatives driven by corporate innovation needs, including accelerators focused on space technology commercialization and digital transformation. Throughout the metropolitan area, innovation clusters have formed around specific strengths: Shibuya district has emerged as the primary startup hub dubbed "Bit Valley," while specialized zones have developed in Roppongi near international firms, Nihonbashi for life sciences innovation, and various suburban centers housing corporate innovation facilities. Tokyo startups benefit from exceptional manufacturing and engineering expertise, unmatched corporate resources increasingly accessible through partnership programs, enormous domestic market providing initial scale, and growing government commitment to entrepreneurship. Yet founders must navigate still-developing risk capital availability at early stages, traditional career preferences that have historically limited talent flow to startups, occasionally complex business formalities requiring cultural navigation, and language barriers that can affect international market expansion.
Tokyo startups in numbers
Startups in Tokyo on Foundersbase show a range of characteristics across different early development stages. Among the projects in this region, 38% are currently in the concept phase, exploring early validation, while 62% have developed a minimum viable product (MVP) and are open to forming strategic partnerships. Currently, 40.5% of startups have reached the Prototype phase, one of several indicators of how innovative founding projects in Tokyo are evolving. A significant share (62%) report open positions, making this a valuable space for entrepreneurial talent looking to join a team early. In terms of funding, 49% of startups are currently seeking investment, while others pursue different approaches to growth. Startups in Tokyo are active across a wide range of industries, with many focusing on areas such as Artificial Intelligence, Recruiting, and Legal Services. Alongside sector diversity, projects also address major global challenges. Notable impact innovation topics include Elderly Care, Wildlife Conservation, Ocean Protection, and Carbon Footprint Reduction, adding purpose-driven perspectives to the local startup scene. Whether you’re interested in supporting founders, investing in early-stage ventures, or finding opportunities to get involved, the startup activity in Tokyo offers a great starting point.
Job Offerings
More than (38%) of startups in Tokyo are actively recruiting talent, while (62%) are focused on building with their current team.
Startup Stage
The Tokyo startup ecosystem spans various development stages from early ideas to profitable businesses, with most ventures (40.5%) currently at the Prototype stage.
Funding Need
About (56%) of early-stage startups in Tokyo are seeking external investment to scale their innovations, while (44%) are pursuing a bootstrapped growth approach.
Top innovation sectors
Discover the industries where early-stage startups in Tokyo are developing innovative solutions and seeking collaboration partners.
Impact Focus
Startups from Tokyo on Foundersbase most often focus on Elderly Care, driving innovation in this area.
Discover the startup ecosystem in Tokyo

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