Japan

Tokyo

#12

Global Startup Ecosystem

#5

Asia ECOSYSTEM
Members: Tokyo Metropolitan Government

#3

Asia Ecosystem in Funding Momentum

#5

Asia Ecosystem in AI-Native Cluster

Top 10

Global Ecosystem in Talent Strength
At TIB and SusHi Tech Tokyo, startups and ecosystem players connect and grow. We will upgrade to Strategy 2.0, promoting global growth and scaleup, fostering innovation with startups, large corporations, and SMEs.
Yuriko Koike
Yuriko Koike
Governor of Tokyo

Highlights

Tokyo stands at the forefront of Asia’s innovation landscape, advancing an ambitious scaleup agenda under its Startup Strategy 2.0, which emphasizes high-growth domains and global connectivity. Central is the innovation cycle linking SusHi Tech Tokyo and Tokyo Innovation Base (TIB), positioning the city as a global node for collaboration. In 2026, SusHi Tech Tokyo recorded 750+ startups, 10,000 business meetings, and 60,000 participants, underscoring sustained international momentum.

SusHi Tech Global Funds, a public–private partnership targeting global growth sectors and investments, offers funds of $1.26B. Separately, international investors include Tokyo-based Jolt Capital’s $1.1B fund and U.S. based-Alumni Ventures’ $100 million fund targeting Japanese startups.

TIB has rapidly scaled as the ecosystem’s community anchor. From 2023, membership expanded from 23,000 to 67,000+, events increased from 480 to 1,400+, and visitors grew from 100,000 to 330,000+. Programs such as TIB CATAPULT connect Tokyo’s industrial assets, research institutions, and VC to generate globally-oriented startups.

In 2026, the Tokyo Metropolitan Government budget increased to $448M from $325M in 2024, reflecting a significant acceleration in public investment. In 2025, Japan established the national Growth Strategy Council to drive coordinated public–private investment across 17 strategic sectors and expanded its startup visa program nationwide to allow foreign entrepreneurs to reside in Japan for up to two years.

International engagement remains central, with Tokyo participating in global dialogues across North America, Europe, and Asia, reinforcing its “Born Global” orientation. International expansion accelerates by connecting startups with local governments and matching them with overseas cities. Research-driven innovation capacity is deepened through dedicated support for university-originated startups, backed by public–private investment to mobilize long-term capital. 

Tokyo’s talent base is strengthened by rising mobility from major corporations into startups, a workforce in which 8.12% of workers are employed by startups, 140+ universities, and globally-oriented education initiatives that cultivate internationally-competitive founders. Inclusivity expands through platforms supporting female entrepreneurs such as the Women’s Empowerment Startup Support Program and APT Women Program. TIB 2.0 creates community spaces where diverse entrepreneurs can connect.

Ecosystem by the Numbers

ECOSYSTEM VALUE

A measure of economic impact, calculated as the value of exits and startup valuations from H2 2023–2025. Ecosystem Value includes all active unicorns.
(H2 2023 - 2025)
$59 BN
GLOBAL AVG. $25 BN
REGIONAL AVG. $24 BN

ECOSYSTEM VALUE GROWTH

Growth is calculated based on the Ecosystem Value from H2 2018–2020 vs. H2 2023–2025.
(H2 2018 - 2020 VS. H2 2023 - 2025)
23%
GLOBAL GROWTH 149%
REGIONAL GROWTH 66%

AI-Native Ecosystem Value

A measure of economic impact, calculated as the value of exits and startup valuations from H2 2023–2025 for AI-Native. Ecosystem Value includes all active unicorns.
(H2 2023 - 2025)
$4.8 BN
GLOBAL AVG. $4.4 BN
REGIONAL AVG. $2.6 BN

AI-Native Ecosystem Value Growth

Growth is calculated based on the AI-Native Ecosystem Value from H2 2021–2023 vs. H2 2023–2025.
(H2 2021 - 23 VS. H2 2023 - 25)
16%
GLOBAL GROWTH 161%
REGIONAL GROWTH 58%

EARLY-STAGE FUNDING GROWTH

Early-Stage Funding Growth is based on number of Seed and Series A rounds raised between 2022-2023 vs. 2024-2025 and calculated on a scale of 1 (lowest) to 10 (highest).
(2022-23 vs. 2024-25)
9
Scale of 1 (lowest) to 10 (highest)

AI-Native Early Stage Funding Growth

AI-Native Early-Stage Funding (ESF) Count Growth Tier evaluates the growth in the number of Early-Stage Funding rounds between 2022–23 and 2024–25. Ecosystems are scored on a scale from 1 to 10, where 1 represents the lowest growth and 10 represents the highest.
(2022-23 vs. 2024-25)
8
Scale of 1 (lowest) to 10 (highest)

TOTAL VC FUNDING

The Total VC funding (Seed, Series A, Series B+) in tech startups in 2021–2025.
(2021 - 2025)
$24 BN
GLOBAL AVG. $5 BN
REGIONAL AVG. $5 BN

TOTAL EARLY–STAGE FUNDING

The total Seed and Series A funding in tech startups in H2 2023–2025.
(H2 2023 - 2025)
$4.3 BN
GLOBAL AVG. $554 M
REGIONAL AVG. $490 M

EXIT AMOUNT

The total value of exits from the ecosystem.
(2021 - 2025)
$26 BN
GLOBAL AVG. $7.6 BN
REGIONAL AVG. $11.9 BN

EXIT COUNT (#)

The number of exits from the ecosystem.
(2021 - 2025)
760
112
2021
122
2022
160
2023
202
2024
164
2025
GLOBAL AVG. 103
REGIONAL AVG. 55

TIME TO EXIT

The average age at the time of exit in the ecosystem in 2021–2025.
(2021 - 2025)
9.6 YEARS
GLOBAL AVG. 11.1 years
REGIONAL AVG. 10.2 YEARS

NUMBER OF UNICORNS 

The number of startups that meet our definition and have been valued at more than $1 billion and have not exited.
(ACTIVE UNICORNS)
8
GLOBAL AVG. 11
REGIONAL AVG. 10

MEDIAN SEED ROUND

The median of seed rounds in tech startups in the ecosystem in H2 2023–2025.
(H2 2023 - 2025)
$774 K
GLOBAL AVG. $1 M
REGIONAL AVG. $1 M

Median Series A Round

The median of Series A rounds in tech startups in the ecosystem in H2 2023–2025.
(H2 2023 – 2025)
$2.7 M
GLOBAL AVG. $6.2 M
REGIONAL AVG. $4.1 M

Top Funded Startups

Top startups identified based on funding amount from July 2023 to December 2025.
(H2 2023-2025)
1: Sakana AI
2: TX
3: SmartHR
4: Newmo
5: Oishii Farm

SOFT. ENGINEER SALARY

Average software engineer salary informed by data from Glassdoor, Salary.com, and PayScale, as well as local sources when available.
(2025)
$53 K
GLOBAL AVG. $54 K
REGIONAL AVG. $27 K

Sub-Sector Strengths

AI & Robotics
AI & Robotics

AI is positioned as a core technology to realize the long-term Tokyo 2050 vision. Cluster initiatives include next-generation mobility and robotics led by DMM.com, connecting startups with major corporations and universities to accelerate real-world implementation. These fields are also designated as focus areas at “SusHi Tech Tokyo 2026,” highlighting their strategic importance. In 2025, Tokyo-based Sakana AI raised $127M, bringing its valuation to $2.65B - one of Japan’s highest-valued private companies. Japan ranks second in the world for global market share of industrial robots, with FANUC becoming a global leader in industrial robotics.

Resilience
Resilience

Resilience is embedded in Tokyo’s approach to sustainable urban transformation, with SusHi Tech Tokyo dedicating programming to crisis-response technologies and practical implementation for cities worldwide. The STG Funds target strategic growth sectors including Deep Tech, Climatetech, and city-focused solutions, supported by public–private investment platforms designed to mobilize large-scale capital. Innovation clusters, represented by Plug and Play Japan, further strengthen Tokyo’s capacity to address societal challenges through technology-driven resilience.

Entertainment
Entertainment

Entertainment stands out as both a cultural and technological strength within Tokyo’s ecosystem. SusHi Tech Tokyo integrates entertainment, art, music, and sports into its innovation programming, aiming to create globally-distinctive events that showcase Japan’s cultural assets. Dedicated clusters include Creative Entertainment led by Sony Group and XR initiatives with Dai Nippon Printing, fostering collaboration between startups and major industry players. This convergence of content, technology, and global conferences positions Entertainment as a growth driver within Tokyo’s scaleup strategy.

Selected Startup Organizations

Startup Genome Members

MEMBER

To support the growth of startups that drive technological innovation in society, we established the Startup Strategy Promotion Headquarters in April 2025, building on platforms such as SusHi Tech Tokyo and TIB. By specializing in startups, we aim to further enhance expertise and strengthen policy implementation. The Tokyo Consortium, operated by the Tokyo Metropolitan Government, brings together diverse stakeholders, including large corporations, startups, and universities, and promotes the development of a world-leading ecosystem through organic collaboration.

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.

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