Society

Japanese startup funding surges 8-fold over 5 years

May 07 (Nikkei) - Investment by Japanese companies in domestic startups has swelled by more than eight times over the past five years, topping the amount raised through initial public offerings in fiscal 2018, as big businesses scramble to tap fresh sources of innovation.

Venture capital funding jumped 50% to 345.7 billion yen ($3.09 billion) last fiscal year, well above the total of about 220 billion yen from IPOs, according to data compiled by mergers and acquisitions advisory firm Recof. The average raised per deal rose 6% to 334 million yen for a second straight year of growth.

The surge in recent years is linked to the rise of open innovation. Companies worried about getting left behind if they try handling development on their own are investing in startups as a way to more effectively tap their new technology.

This represents a sea change for Japanese startups. Fledgling companies had traditionally raised money mainly through IPOs, as financial institutions and established businesses were leery of risking money on unproven upstarts.

Startups in financial technology are among the beneficiaries. Mobile payment platform operator Origami said last September that it had secured 6.7 billion yen from investors including Toyota Motor arm Toyota Finance. Cloud-based accounting software provider Freee announced the previous month that it had raised a total of 6.5 billion yen from MUFG Bank, Line and others.

Do Bears Prefer Acorns or Berries?

Bear sightings across Japan have already climbed to nearly twice the level recorded during the same period last year, prompting entry bans in mountain areas behind Kyoto’s Ninna-ji Temple and the cancellation of hiking events in Kansai, while new research suggests that the key to reducing encounters may lie in understanding what bears eat in each region.

Copper Thieves Target Japanese Shrines

Copper roofing panels were stolen from several shrines in Hamamatsu, Shizuoka Prefecture, including a city-designated cultural property, in the latest case amid a nationwide surge in copper thefts targeting shrines and temples across Japan, where soaring metal prices have fueled crimes that leave historic religious buildings damaged, exposed to the elements, and facing repair costs of millions of yen.

1200-Year-Old Temple on Miyajima Reduced to Ashes

Flames broke out on the morning of May 20th on Miyajima Island in Hiroshima Prefecture, home to one of Japan's World Heritage sites, destroying Reikado Hall near the summit of Mount Misen.

From Bento Boxes to Garbage Bags, Rising Costs Hitting Daily Life Across Japan

Uncertainty surrounding the situation in the Middle East is beginning to affect daily life in Japan, as concerns over crude oil supplies spread to restaurants, cleaning services and even household garbage disposal systems across the Kansai region.

Tochigi Robbery-Murder Suspect’s Wife Posted Dance Videos on Social Media

A 25-year-old woman arrested as a suspected ringleader in a robbery-murder case in Tochigi Prefecture once posted cheerful dance videos on social media and was remembered by those who knew her as an energetic and outgoing young woman.

MEDIA CHANNELS

MORE Society NEWS

Garbage Burnoff Spreads to 3 Buildings in Okayama

A fire that broke out in Kagamino, Okayama Prefecture, shortly after noon on May 20th destroyed three buildings, including a home, after flames from open burning spread to dead leaves and then to nearby structures.

Gang Members Arrested After Opening Office Near Nursery

Six people, including a senior member of a group affiliated with the Sumiyoshi-kai crime syndicate's Kohei-ikka faction, have been arrested on suspicion of opening a gang office in a prohibited area near a nursery school in Tokyo's Itabashi Ward.

Six Police Officers Injured After Man Sprays Liquid at Station

A man who visited a police station in Hiratsuka, Kanagawa Prefecture, in the early hours of May 21st allegedly sprayed a transparent liquid inside the building, causing six police officers to complain of eye and throat pain and be taken to hospital with minor injuries.