For decades, the giants of companies in Japan have relied on research and development at home to lead innovation, while startups came out primarily through initial subscriptions. But with the stagnation of the local market, the elderly workforce, the intensification of global competition, “Japan Inc.” It is a focus towards obtaining startups to advance growth.
Jesper Koll, Director of the Okinawa Institute of Science and Technology, wrote in his news message, “The Japan Optimist”, that new executives, unlike their ancestors, adopt external innovation. Drawing similarities with the United States – as 90 % of startups are the acquisitions – Cole notes that the leadership of companies in Japan adopts a more aggressive approach to growth.
Despite the global decline in the sizes of deals, the Japanese integration and purchase market is still flexible. Crimson phoenix, the administrative director of the Crimson Phoenix, Yuuichiro Nakajima, is attributed to the double strategy of Japanese companies: follow -up to high growth abroad through acquisition and improved restructuring to improve the return on shares. This approach says Global financingJapanese companies are placed as buyers and seller in an advanced global market.
However, cultural and systemic challenges continue. Matt Roman and Mark Bevens of Shizen Capital, an angel investment company, explained in Podcast “Japan’s disruption”, traditionally seen as a secondary exit strategy. However, prominent successes, such as a $ 2.7 billion PayPal acquisition of the Japanese Fintech Payy in 2021, is to transfer perceptions. Payy’s founders’ decision to re -invest their gains again to the ecosystem enhances innovation and encourages a healthier cycle of startup growth, shared Romaine and BIINS.
Kunio Katsube from Japan Investment Corporation stresses the importance of international cooperation. Emerging companies in Japan are much less capital than their counterparts in the United States, and this hinders the ability to expand. He argues that VCS can encourage Japan to bridge this gap.
With 3 trillion dollars in corporate cash reserves, Japanese companies face increasing pressure to effectively spread the capital amid inflation and shareholders ’activity. Getting startups provides a strategic way to renew growth, attract Japanese talents and position as a leader in areas such as artificial intelligence and sustainability.
In January, Softbank doubled its commitment to technology -based innovation. The company joined Openai, Oracle and other major partners to launch Stargate, an ambitious joint venture of $ 500 billion in the White House.
