The Tokyo Stock Exchange Growth Market 250 Index, which tracks startup stocks in Japan, is on track for its fourth consecutive annual loss.

This marks the longest downturn since data collection began in 2000, with the index dropping approximately 11% this year, while the broader Topix index gained 15%.

Concerns regarding potential interest rate increases by the Bank of Japan (BOJ) have heightened challenges for startups.

Looking ahead, a potential BOJ rate hike could further complicate the landscape for startups. It is projected to have an 80% likelihood by March 2025.