Hamamatsu, Shizuoka Prefecture, will launch a program in August to provide subsidies of up to 500,000 yen to local businesses using startup products or services registered on the city-operated matching platform “Hamahub!”. Subsidies will cover 50% of costs for projects under 1 million yen, with a flat 500,000 yen for projects exceeding 1 million yen. Additional support of up to 4 million yen will be provided for joint proof-of-concept projects or similar initiatives.

The subsidy model is based on the “venture client” approach popular in Europe and the United States. Startups can use local companies as customers to generate revenue and receive feedback, while local firms can test cutting-edge technologies at low risk. Since its launch in August 2024, Hamahub! has facilitated 39 business deals, but many startups have opted not to adopt the products or services due to cost concerns. The city aims to lower these barriers with the new program.

The subsidy program is the first initiative under phase two of the Hamamatsu City Startup Strategy. By 2029, the city aims to double the number of startups with headquarters registered in Hamamatsu, and support their growth through collaboration with the so-called “Hamamatsu Valley,” a regional manufacturing cluster.