Japan Opens Up: Why Asian Startups Are Looking East for Their Next Growth Chapter

MACAU, May 30, 2026 – Japan is undergoing a quiet but significant transformation in how it engages with global entrepreneurship, creating fresh opportunities for both inbound and outbound startups. That was one of the key messages emerging from a panel discussion titled “Scaling Out: The Cross-Border Playbook for Asian Founders” at the Japan Tech Forum, held as part of BEYOND Expo 2026 in Macau.

Moderated by Akio Tanaka, Partner at Headline VC, the session brought together Hiro Mashita, Director of SG Grow; Jeff Zielinski, CFO of Buy&Ship; and Ryota Matsuzaki, Founder and CEO of Kibidango Inc., to discuss the realities of entering Japan, scaling internationally and building successful businesses across borders.

While Japan has long been viewed as one of Asia’s most sophisticated markets, the panellists argued that the country is becoming increasingly accessible to foreign founders, thanks to changing demographics, government initiatives and a more internationally minded business environment.

A Different Approach to Market Entry

One recurring theme throughout the discussion was the importance of understanding Japan on its own terms.

Entrepreneurs looking to enter the Japanese market often focus heavily on market size and purchasing power. However, panellists noted that success in Japan requires a deeper appreciation of local business culture and relationship-building.

“Don’t assume profit is king in Japan,” one panellist remarked, highlighting how trust, reputation and long-term relationships frequently carry as much weight as immediate commercial returns.

The panel emphasised that founders should resist the temptation to treat Japan as simply another Asian market. Instead, they should invest time in understanding local decision-making processes, customer expectations and business etiquette.

Finding Local Champions

For startups entering Japan, identifying local advocates emerged as one of the most practical pieces of advice. Ryota Matsuzaki suggested that founders should focus on finding individuals who genuinely love their product or service before attempting large-scale expansion.

“If somebody in Japan already loves your product, learn why they love it,” he advised. “Start from there.” This approach is particularly relevant for consumer-facing businesses, where local users can provide valuable insights into market preferences and cultural nuances.

Panellists also encouraged founders to leverage social media and community networks to identify early adopters and potential brand ambassadors.

With Japanese consumers increasingly active on digital platforms, startups can often gain valuable market intelligence long before establishing a physical presence.

Japan’s Growing International Workforce

One of the most significant changes highlighted during the discussion was Japan’s increasingly international workforce.

The panellists observed that the country today is far more diverse than many outsiders realise. Growing numbers of foreign professionals, entrepreneurs and skilled workers are establishing careers and businesses in Japan, creating new bridges between the country and the wider region.

“More and more foreigners are living and working in Japan,” noted one panellist. “You can find Chinese, Koreans, Americans and many others who have built successful businesses there.”

These communities can serve as valuable networks for startups seeking local guidance, partnerships and market introductions.

Equally important, Japanese professionals themselves are becoming more globally experienced, bilingual and culturally adaptable, making cross-border collaboration easier than in previous decades.

Beyond Tokyo: A Broader Startup Opportunity

While Tokyo remains the country’s dominant startup hub, the discussion suggested that opportunities increasingly extend beyond the capital.

Government-backed initiatives are actively encouraging entrepreneurship, foreign investment and startup formation across Japan.

Several panellists noted that founders who take the time to engage with local ecosystems often discover a supportive environment that is more open than many international entrepreneurs expect.

This shift is partly driven by Japan’s demographic challenges, labour shortages and broader efforts to stimulate innovation and economic growth.

As a result, startups offering solutions in sectors such as artificial intelligence, logistics, healthcare, mobility and enterprise technology may find receptive audiences and strong partnership opportunities.

Japan as a Base for Regional Expansion

Interestingly, the conversation was not limited to startups entering Japan. The panel also explored how Japan can serve as a strategic base for companies looking to expand across Asia.

Participants highlighted Japan’s strong infrastructure, stable regulatory environment and high quality of life as factors that continue to attract international talent.

Several panellists pointed to an increasing number of entrepreneurs relocating from China, North America and Europe to Japan, not only for business reasons but also because of the country’s lifestyle advantages.

The comparatively lower cost of living, driven in part by the weaker yen, has further enhanced Japan’s appeal for foreign founders and startup teams. Beyond business considerations, quality of life emerged as an important factor influencing entrepreneurial decisions.

Panellists described Japan as offering a compelling combination of safety, affordability, excellent public transport, high-quality food and rich cultural experiences.

For founders building companies over the long term, these factors can play a significant role in attracting and retaining talent.

The country’s globally recognised strengths in entertainment, intellectual property, anime, gaming and creative industries also contribute to its attractiveness for entrepreneurs operating in consumer-focused sectors.

A Window of Opportunity

The panel concluded with a strong sense that Japan is entering a new phase of openness and international engagement.

While challenges remain, including language barriers and the need for patient relationship-building, the consensus was that the opportunities now outweigh many of the historical obstacles associated with entering the market.

For Asian startups seeking growth, Japan is increasingly emerging not only as a valuable destination market but also as a potential base for regional and global expansion.

As venture capital, government support and international talent continue to converge, Japan’s startup ecosystem appears poised to play a larger role in Asia’s innovation landscape than ever before.

The message from the Japan Tech Forum was clear: founders willing to invest the time to understand Japan may find one of the region’s most rewarding growth opportunities waiting for them.