The 2025 annual startup funding rankings for Japan have been released, with Tokyo-based robotics pioneer Mujin securing the top spot with a cumulative 36.2 billion yen raised. Known for its MujinOS, a platform that enables intelligent automation through physical AI and digital twin technology, the company is now shifting toward a scalable product-led model. This capital injection is earmarked for aggressive expansion into the US and European markets, aiming to establish a global standard for industrial automation.

The leaderboard highlights a massive concentration of capital in the "Physical AI" and foundational model sectors. Turing, a startup developing end-to-end autonomous driving AI, ranked second with 24 billion yen, followed by Sakana AI, which raised 20 billion yen. Sakana AI, led by former Google researchers, is gaining international attention for its "evolutionary" approach to small-scale, high-performance AI models, positioning itself as a leader in Japan's sovereign AI development.

This trend signals a maturing ecosystem where Japanese deep-tech startups are no longer focused solely on the domestic market but are designed to be global-first. With increasing participation from overseas VCs and a government push to relax investment regulations, these top-tier companies are becoming key bridges for international collaboration.

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