Total amount of domestic VC investment in Japan 2015-2024

In 2024, venture capital (VC) investment in domestic companies in Japan amounted to 236 billion Japanese yen. The amount of investments made by Japanese venture capital firms increased from 212.1 billion yen in the previous year. 

Domestic VC investment

Venture capital investment is a type of private equity investment in startup companies with high-growth potential that is associated with a high degree of risk. Relative to the size of Japan’s economy and compared to other large economies like the United States, the Japanese venture capital market can be considered small. However, given a maturing startup ecosystem and government efforts to promote regional startup hubs throughout Japan, it has seen a general upward trend in recent years. Large corporations increasingly engage in startup investment to explore new business opportunities and capitalize on innovations, resulting in an increase in corporate venture capital (CVC) in recent years.

Overseas VC investment

The largest share of investment made by Japanese VC firms in 2024 was directed at domestic companies. Overseas VC funding accounted for almost one-third of investments. A look at the regional distribution of VC investment in the fourth quarter of 2024 revealed that Asia received the largest share of funding, followed by North America and Europe.