Japan’s Deep Tech Moment: Why Global Investors Are Looking at Tokyo Again

For much of the past two decades, global venture capital attention in Asia has focused on markets such as China, India and Southeast Asia. Japan, despite its technological sophistication, was often perceived as a relatively conservative environment for startups.

That perception is gradually changing. A combination of technological breakthroughs, government support and renewed investor interest is placing Japan firmly back on the global innovation map.

One of the clearest signals of this shift is the growing international attention surrounding SusHi Tech Tokyo, a global innovation conference that highlights Japan’s emerging startup ecosystem.

The Rise of Deep Tech Startups

Japan has long been a global leader in advanced technology fields such as robotics, electronics, materials science and precision manufacturing. Many of the breakthroughs in these industries originated in Japanese laboratories and universities.

Today, a new generation of startups is emerging from this research base.

These companies often focus on deep tech sectors where Japan has traditional strengths. Artificial intelligence, robotics, space technologies and advanced materials are among the areas attracting significant attention from investors.

Unlike many consumer internet startups, deep tech ventures typically require longer development timelines and significant research investment. However, they also offer the potential for transformative technological breakthroughs.

Strong Research Foundations

Japan’s universities play a critical role in this ecosystem. Institutions such as the University of Tokyo, Keio University and Osaka University conduct world-class research across multiple scientific disciplines.

Increasingly, these universities are encouraging researchers to commercialise their discoveries through startup ventures. Technology transfer programmes, incubators and research funding initiatives have all expanded in recent years.

Events like SusHi Tech Tokyo provide an important platform for these university startups to connect with global investors.

Growing Venture Capital Interest

Venture capital activity in Japan has also begun to accelerate. Both domestic and international investors are paying closer attention to the country’s innovation ecosystem.

Several factors are contributing to this renewed interest.

First, Japan offers a stable and technologically sophisticated market with strong industrial capabilities. Second, government policies have become increasingly supportive of startups and innovation. Third, global supply chain changes have renewed interest in advanced manufacturing and deep technology.

For investors seeking opportunities beyond traditional software startups, Japan’s deep tech ecosystem presents compelling possibilities.

Corporate Partnerships Driving Innovation

Another advantage for startups operating in Japan is the presence of large industrial companies with global reach. Corporations such as Fujitsu, NEC and other major technology firms are increasingly collaborating with startups to accelerate innovation.

These partnerships allow startups to access manufacturing expertise, distribution networks and global markets.

SusHi Tech Tokyo reflects this dynamic by bringing together startups and large corporations within the same innovation platform. Many companies attend the event specifically to explore partnerships with emerging technology ventures.

Global Collaboration

International participation in Japan’s innovation ecosystem continues to grow. Startup delegations, investors and technology leaders from around the world are increasingly engaging with Japanese companies and research institutions.

This cross-border collaboration is essential for deep tech sectors, where research, manufacturing and market development often occur across multiple countries.

Events such as SusHi Tech Tokyo help facilitate these connections by creating a neutral platform where innovators from different regions can meet and exchange ideas.

A Turning Point for Japan’s Startup Ecosystem

Japan’s startup ecosystem is still developing compared with those in Silicon Valley or China. However, the underlying foundations are strong.

The country combines world-class research institutions, sophisticated industrial capabilities and growing venture capital interest. These ingredients create favourable conditions for the emergence of globally competitive startups.

As investors search for the next wave of deep tech innovation, Japan is once again attracting serious attention.

In that context, Tokyo’s growing role as an innovation hub suggests that the country may be entering a new chapter in its technology story.