Japan draws more startups as retention doubts mount, Nikkei Asia reports

Japan is attracting a growing wave of startups but faces questions about keeping them long term, Nikkei Asia reports today. The stakes are high as Tokyo seeks to reboot growth and compete for AI, chips, and biotech investment, Nikkei Asia says. Founders and investors told Nikkei Asia that incentives are improving, yet scale-up hurdles risk pushing companies abroad.

Nikkei Asia cites government programs, streamlined visa pathways, and livelier public markets drawing new ventures, while persistent gaps remain in late-stage capital, English-first operations, and corporate procurement. Some startups are weighing overseas listings or relocation to tap deeper talent pools and faster approval cycles, the outlet notes. Watch for new policy steps from Tokyo, uptake of startup visas, and whether global funds expand late-stage commitments over the next year. [Developing. This article will be updated.]