Japanese start-ups’ significant evolution as global players
3 March 2025
At OBM, we have been involved in various startup and innovation projects for the past 15 years, supporting Japanese startups' overseas expansion and helping US and European startups establish their business in Japan.
The Japanese startup scene has traditionally lagged behind the rest of the world, despite the country's reputation as a tech leader. In 2021, our CEO Masako Eguchi-Bacon was interviewed by ITPro ("Why does Japan lag behind on startups?"), sharing her expertise on the Japanese startup ecosystem. Over the past decade, the Japanese government and local authorities have provided both financial and practical business support, large Japanese companies are more open to startup collaboration, the younger generation is more eager to work with startups, and investors have gained valuable experience.
However, when it comes to expanding into the overseas market, we've witnessed significant challenges in the startup and innovation landscape.
When we began supporting international expansion projects a decade ago, we received few applications because most startups focused solely on the Japanese market and lacked English-speaking staff.
Even as startups began exploring overseas markets, they struggled to find Japanese-English bilingual talent who possessed both the right business mindset and the ability to navigate cultural differences.
In the past five years, the situation has improved, and more Japanese startups have become ready for international expansion. While launching a program for such startups ideally requires focusing on a specific industry to maximise business opportunities, there weren't enough Japanese startups to form industry-specific cohorts.
We were pleasantly surprised when we could finally focus on "Sustainability" through our partnership with CISL (Cambridge Institute for Sustainability Leadership) to support Japanese startups' UK expansion. This program, organised by X-Hub Tokyo (Tokyo Metropolitan Government's startup accelerator) and JETRO (Japanese government), ran from September 2024 through to February 2025.
Selecting eight promising startups from the many impressive Japanese applicants proved challenging. The entire delegation demonstrated a global mindset and flexibility to adapt themselves into different business culture. During the programme, these start-ups were introduced to a variety of mentors, potential customers and business partners, and by the program's end, their refined presentation and communication skills—combined with their technologies and business models—greatly impressed UK stakeholders. The programme generated numerous business opportunities, including an MoU between Japanese and UK companies during the programme.
As Masako mentioned in her interview four years ago, "This time, it will not just be a ‘trendy boom’. Startups will play an important role in Japanese society,” we are delighted to see that Japanese startups have evolved beyond a temporary trend to become vital players in strengthening both Japan's economy and its international business relationships.
With our big thanks to
And the amazing Japanese start-ups at the cohort:
Thermalytica - innovative thermal material solutions to help customers lower their carbon footprints.
CalTa - Producing a Digital Twin Platform called TRANCITY
Kinish : A foodtech company producing alternative foods through cutting-edge biotechnology known as plant molecular farming
Think Nature : Supporting clients with an AI reporting service and assessment tools to help businesses monitor their impact on biodiversity
Innophys :A exoskeleton manufacturer working to achieve independent lifestyles for everyone, building robots for people and taking all challenges head on.
Mori Biodiversity Solutions :both fundamental and applied ecology to explore the causes and consequences of biodiversity
SORA Technology : leading use of drone technology in developing countries to transform people’s way of life and realise a safe and prosperous society anywhere in the world.
Digireha: providing a new type of digital rehabilitation tools to children with disability and elderly people.