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Hello reader,
It seems like around this time of year, many people I know get infected with the “I must go to Japan!” virus – myself included last year, by the way. Already, my Instagram stories are being filled with photos and videos of Tokyo, Kyoto, and other major tourist destinations.
Having been there three times, I do agree that Japan is always worth a visit, especially because it’s one of the few places where I can recall the culture having such a big presence. If you’re into new experiences and fantastic food, then a trip to Japan could be worth your while.
The funny thing is, if you asked many people – especially Singaporeans – what they think about Japan, the first thing they’d probably mention is travel-related. That, or anime.
If you went to ask startup founders at a networking event the same question, they’d probably answer along those lines too (don’t quote me on this), instead of talking about the country’s startups. It wouldn’t be surprising either, given that Japan’s tech scene is somewhat lagging behind the rest of the world.
So why aren’t Japanese startups living up to the performance of the country’s other superstar industries like manufacturing? Today’s premium story takes a look at some reasons and how those issues can be resolved.
Today we look at:
- Why Japanese startups aren’t living up to their full potential
- Southeast Asia’s latest funding numbers
- Other newsy highlights such as Tesla eyeing a new EV plant in India and Nvidia partnering with an Indonesian telco
Premium summary
Leaving the nest
Image credit: Timmy Loen
To illustrate just how far Japanese startups are lagging behind, here’s a stat: As of 2021, startups in Tokyo raised 16x less funding per capita compared to their counterparts in Berlin, even though the Japanese and German economies are of similar size. Let’s take a look at how this came to be.
- Getting comfortable: The country’s domestic market is large and wealthy, which gives startups access to a lot of consumers with high purchasing power. With such a steady supply of potential users, it often doesn’t make sense for them to expand internationally.
- Comfort in baby steps: Another reason is that local startups can list early on the “Mothers” section of Japan’s stock market. Exiting at an earlier stage could mean that founders no longer have global ambitions, as they’ve already “won” in some sense.
- A dash of foreign talent: One way to solve these issues is to add more foreign talent into the Japanese ecosystem. That said, it won’t be easy given how homogenous the society is, making it difficult for foreigners to integrate into.
Read more: Why ‘Japaneseness’ is holding Japan’s startups back from going global
Still in the doldrums
Tickets selling fast – chope yours before it’s gone!
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