Geo Annual Report Japan Tech 2025 (Tracxn)

Summary

• A total of $2.1B was raised in 2025, a drop of 4% compared to $2.2B in 2024 and a rise of 15% compared to $1.8B in 2023.p.4
• Seed funding was $136M (down 50%), Early Stage $1.2B (up 20% from $1B) and Late Stage $706M (down 18%).p.4
• 4 $100M+ funding rounds occurred in 2025, compared to 3 in 2024 and 2 in 2023.p.4
• Sakana raised $135M in a Series B, Mujin $133M in a Series D and EdgeCortix $110M in a Series B.p.5
• Japan Tech recorded 16 IPOs in 2025, down 50% from 32 in 2024, and 11 acquisitions, down 61% from 28.p.6
• Shibaura Electronics was acquired by Yageogroup at a price of $742M, the highest valued acquisition of 2025.p.6
• Tokyo-based tech firms accounted for 39% of all funding in Japan, followed by Chuo City with 14%.p.7

Key insights

1. Enterprise Applications recorded total funding of $988M in 2025, a 56% increase over the $635M raised in 2023.p.5
2. Industrial Goods and Manufacturing funding was $255M, an increase of 323% compared to $60.3M in 2024.p.6
3. Aerospace, Maritime and Defense Tech saw $223M in 2025, an increase of 91% compared to $117M in 2024.p.6
4. Japan's funding was 1% of global funding of $359B in 2025.p.9
5. The average IPO market cap was $88.5M versus $95.2M, with 14.5 years on average from first funding to IPO versus 23.3.p.25
6. The average acquisition price was $144M versus $179M in 2024.p.25
7. Mitsubishi UFJ Capital made 20 investments in 2025, up 82%, as the top early stage investor.p.17
8. AI Processors was the top funded business model, with $145M led by EdgeCortix's $110M Series B.p.15