There are only about 10 unicorn companies, but are there any signs of change in the Japanese startup situation?

Japan is an economic superpower that ranks third in the world's GDP (gross domestic product) ranking. However, there are more than 600 unicorn companies in the United States and more than 300 in China that satisfy the conditions of 'within 10 years since founding', 'company valuation of $1 billion (approximately 137 billion yen) or more', and 'unlisted'. In addition, it is known that there are only about 10 companies in Japan, which is extremely small. But this situation is changing, argues author Roland Keltz.

Ideas | Japan's tech industry is stirring to life - Rest of World

Kelts interviewed Asian researcher Ezra F. Vogel, author of the 1979 bestseller Japan as Number One: Lessons for America, in 2018 to discuss the Chinese economy and plans for overseas expansion. However, the Japanese tend to prefer to stay indoors instead, and they say, 'Japan has become a very comfortable place to live. Maybe it's too comfortable.' .

However, since 2018, local governments have stepped up efforts to support startups. Under the title of 'SHIBUYA STARTUP SUPPORT,' Shibuya Ward invites startups from Japan and overseas to run a program that supports the launch and growth of businesses in Shibuya.

Shibuya Startup Support Official Website

Below is a graph showing the funding amount of Japanese startups. The amount of procurement in 2022 is over 800 billion yen. During this period, the procurement amount decreased by 16% in the EU and by 30% in the United States.

In addition, Mr. Sho Hayashi, a former diplomat and entrepreneur, said that changes are also occurring on the side of workers. According to Hayashi, the 2020 coronavirus pandemic has 'made people think about how they really want to work, starting a side job or holding two or more jobs midway through their careers.' That's right.

Born in China, raised in the United States, and worked in Silicon Valley, Yang Huang came to Japan in 2017 and co-founded Code Chrysalis, a coding bootcamp for companies. According to Mr. Hwang, when he first came to Japan, he said, 'Failure is not allowed in Japan, so you should go to America first to learn how to fail.' He said.

According to Mr. Huang, it is not uncommon for people to graduate from top universities and work for venture companies, and he feels that 'a big generational change is taking place.'

International finance lawyer Yuki Shirato, an angel investor and director of several venture companies, said, 'It may take five to six years for Japan's technology industry to change. In Silicon Valley, it takes a lifetime. However, in Japan, which is several centuries behind, it will pass in a blink of an eye.It will take time to overcome language, mental barriers, resistance to risk, etc.'

Keidanren also recognizes that there are few unicorn companies in Japan, and aims to increase the number of startups and annual investment by 10 times by 2027, as well as increase the number of unicorn companies. is up.

Keidanren: Startup Advancement Vision (2022-03-15)