Japanese Startup Funding Flat in 2025, Investors Selective

TOKYO - Japanese startup funding totaled JPY 761.3 billion (US$ 4,853 million) in 2025, compared to JPY 779.3 billion (US$ 4,968 million) in 2024, according to data released Tuesday by corporate information provider Speeda.

The total excludes debt financing and was calculated as of January 2025, the company said.

The number of companies receiving funding fell 5.9 percent to 2,700 from 2,869 in 2024.

The median funding amount decreased to JPY 62 million (US$ 0.4 million) from JPY 78 million (US$ 0.5 million).

The average funding per company was JPY 310 million (US$ 2.0 million), unchanged from 2024.

Companies raising less than JPY 10 million (US$ 0.1 million) numbered 448, compared to 350 in 2024. Companies raising between JPY 10 million (US$ 0.1 million) and JPY 500 million (US$ 3.2 million) numbered 1,680, compared to 1,795 in 2024.

Series A funding totaled JPY 139.1 billion (US$ 887 million), compared to JPY 168.4 billion (US$ 1,073 million) in 2024. The number of companies raising Series A capital was 501, compared to 519 in 2024. Series B funding totaled JPY 192.4 billion (US$ 1,226 million), compared to JPY 172.6 billion (US$ 1,100 million) in 2024.

The number of companies raising Series B capital was 312, compared to 351 in 2024. Series D and later-stage funding totaled JPY 105.3 billion (US$ 671 million), compared to JPY 98.5 billion (US$ 628 million) in 2024. The number of companies raising capital at these stages was 104, compared to 89 in 2024.

Corporate investors’ total investment was 148 billion yen ($943 million), up from 116 billion yen ($739 million) in 2024.

The number of investing corporations was 701, compared to 742 in 2024. Venture capital firms’ investments totaled JPY 297.3 billion (US$ 1,895 million), compared to JPY 323.6 billion (US$ 2,063 million) in 2024.

Financial institutions’ investments totaled JPY 36.7 billion (US$ 234 million), compared to JPY 31.0 billion (US$ 198 million) in 2024.

New venture capital funds numbered 150 with aggregate capital of JPY 474.7 billion (US$ 3,026 million), compared to 112 funds with JPY 387.0 billion (US$ 2,467 million) in 2024.

Of the 150 funds, 67 (44.7%) did not disclose fund size. Among the 83 funds with disclosed amounts, the average fund size was JPY 5.7 billion (US$ 36 million), compared to JPY 6.1 billion (US$ 39 million) in 2024.

The median was JPY 3.0 billion (US$ 19 million), compared to JPY 4.0 billion (US$ 25 million) in 2024. Funds exceeding JPY 10.0 billion (US$ 64 million) numbered 15. Funds below JPY 3.0 billion (US$ 19 million) numbered 41.

Initial public offerings totaled 108 companies, compared to 133 in 2024. Startups accounted for 31 IPOs. The median market capitalization at initial offering was JPY 13.5 billion (US$ 86 million), compared to JPY 8.9 billion (US$ 57 million) in 2024.

Axelspace Holdings recorded the largest IPO market capitalization among startups at JPY 48.1 billion (US$ 307 million).

The company reported sales of JPY 3.6 billion (US$ 23 million) and an operating loss of JPY 3.9 billion (US$ 25 million) for the fiscal year ending May 2026, with an order backlog of JPY 10.4 billion (US$ 66 million) as of Jan. 14, 2026.

Mergers and acquisitions involving startups totaled 167 cases in 2025. Mizuho Bank’s acquisition of a 70% stake in UPSIDER Holdings for JPY 46.0 billion (US$ 293 million) was the largest transaction.

(US$1 = JPY 156.876 as of December 31, 2025)