2026 First Half Startup Investment Trends Report

Japan's startup fundraising in the first half of 2026 reached ¥503.3 billion (preliminary), representing a 4% increase year-on-year with essentially flat growth. However, the number of fundraising companies dropped 35% to 1,061, indicating increasingly selective investment by venture capitalists. Large-scale fundraising of ¥5 billion or more more than doubled from ¥34.5 billion to ¥78 billion, while smaller-scale deals declined. Funding has concentrated in research and development-focused startups, particularly in government-designated strategic sectors.