Today: Jul 22, 2024

Japanese banks fuel growth of advanced startups with increased funding.

7 months ago

Japanese banks, such as Sumitomo Mitsui Trust Bank, are increasing their funding to late-stage startups in an effort to address a lack of funding at this critical phase. Sumitomo Mitsui Trust Bank plans to provide a total of $350 million between fiscal years 2023 and 2025 to later-stage startups that have firmly established business models and are close to an initial public offering (IPO).

Japan has struggled to produce unicorns, or startups valued at over $1 billion, and a lack of funding at the late-stage is believed to be one of the contributing factors. By providing more funding to these startups, Japanese banks hope to support growth and help companies reach IPO stage.

This move by Japanese banks is part of a larger effort to boost the startup ecosystem in Japan. The government has also taken steps to ease investment rules and increase transparency in domestic venture capital firms. However, there is still more that needs to be done to encourage entrepreneurship and support startups in Japan.

Overall, the increased funding from Japanese banks to late-stage startups is an important development for the Japanese startup ecosystem. By addressing the funding gap at this critical phase, it is hoped that more startups will be able to reach IPO stage and contribute to Japan’s startup ecosystem.