J-Startup Program

Back to Atlas

A national startup branding and support coordination program that provides intensive government and private sector support to selected high-potential Japanese startups.
What are the main aims and objectives?

The J-Startup Program aims to create globally competitive Japanese startups that can provide innovative technologies and business models to the world market. The primary goal is to strengthen Japan's startup ecosystem by producing 20 unicorn companies valued at over $1 billion by 2023. The program seeks to foster startup founders and teams with global potential while promoting entrepreneurship across Japanese society. By connecting selected startups with major corporations, investors, and government resources, the program intends to accelerate their development and facilitate overseas expansion. The initiative addresses a critical challenge: while Japan has many innovative startups, few successfully scale to compete at a global level. The broader vision positions Japan as the largest startup hub in Asia and one of the world's leading startup clusters.

How does the program work?

The J-Startup Program operates through a rigorous selection process followed by comprehensive government and private sector support. The program uses a nomination system where 66 dedicated recommenders—including top venture capitalists, accelerators, and corporate innovation leaders—select the best candidates from approximately 10,000-20,000 Japanese startups. An external judging committee then evaluates these nominations based on criteria including mission, originality, growth potential, innovation, and scalability. The program particularly favors deep tech, platform, and Sustainable Development Goals oriented startups.​

Selected startups receive a comprehensive support package from three primary government agencies: the Ministry of Economy, Trade and Industry (METI), the Japan External Trade Organization (JETRO), and the New Energy and Industrial Technology Development Organization (NEDO). The program is jointly administered by a secretariat composed of these three organizations.​

Government Support includes:

Selected companies receive permission to use the official J-Startup logo for branding as a certified company. They gain preferential treatment in government subsidies and procurement processes, with simplified application procedures. NEDO provides research and development funding support for technology development. JETRO facilitates international expansion, including assistance at overseas events and participation in government missions led by ministers and officials. Selected startups receive exhibition opportunities at major global technology conferences such as Consumer Electronics Show (CES), SLUSH, South by Southwest (SXSW), Web Summit, and Gulf Information Technology Exhibition Future Stars (GITEX). Companies can access JETRO's Global Acceleration Hub at overseas branches free of charge. The program arranges business matching with executives of large firms and government ministries. Selected startups gain access to regulatory sandbox systems and assistance with regulatory issues. They also receive publicity through dedicated websites and domestic and international media.​

Private Sector Support:

The program has cultivated a network of over 100 support organizations known as J-Startup Supporters. These organizations provide business space and facility access with preferential fees, professional mentorship from leading technology companies, and collaboration opportunities with large corporations in similar fields. Supporters offer acceleration programs and manufacturing support, access to experimental equipment, test environments, and research and development facilities, and referrals to customers and related companies. The program organizes regular networking events such as J-Startup Hour held every Thursday at Toranomon Hills Café.​

The program has expanded to include three variants: the core J-Startup program, J-Startup Impact launched in October 2023 for impact startups focused on social and environmental issues, and J-Startup Local regional programs implemented in collaboration with local governments.

What is the overall cost?

The J-Startup Program does not have a disclosed dedicated budget allocation.

How was it implemented?

The J-Startup Program was inaugurated on June 11, 2018, by Japan's Ministry of Economy, Trade and Industry under the leadership of Minister Hiroshige Seko. At the launch ceremony held in Tokyo, Minister Seko notably used the term "ekohiiki" (favoritism) to describe the program's approach of providing intensive, preferential support to selected startups. The ceremony was attended by corporate leaders including Makoto Takahashi, Chief Executive Officer of KDDI, and foreign ambassadors including Laurent Pic from France and Sujan Chinoy from India.​

The program emerged from Japan's recognition that despite having numerous innovative startups, few were successfully scaling globally or achieving unicorn status. At the time of launch, Japan had only three to five unicorn companies compared to hundreds in the United States and China. The government identified that Japanese startups needed coordinated public-private support to overcome barriers to international expansion and growth.​

J-Startup consolidated and reorganized various pre-existing startup support programs managed by METI and JETRO, such as the Shido Next Innovator Program and Hiyaku Next Enterprise, into a unified brand and framework. The program established a secretariat jointly operated by METI, JETRO, and NEDO. A recommendation committee of 66 experts including investors, venture capitalists, and corporate innovation leaders was formed to select startups. The program developed a network of J-Startup Supporters from both large corporations and the venture capital and accelerator community.​

Key Timeline:

  • June 11, 2018: Launch ceremony and announcement of first batch of 92 selected companies​
  • June 2019: Second selection round announced with 49 additional companies​
  • October 2023: J-Startup Impact launched as a specialized track for impact startups, selecting 30 companies from approximately 500 applicants​
  • March 2025: Fifth selection round announced with 31 new companies selected
What impact has been measured?

The J-Startup Program has selected 239 startups across all rounds through March 2025. The program facilitated participation of Japanese startups at major global events, including sending 22 startups to CES 2019 and 10 startups (seven from J-Startup) to SXSW Interactive 2019.​

The program's stated goal of creating 20 unicorns by 2023 was not achieved. Japan had only three unicorns in 2019, and by 2023 had approximately seven unicorns. As of October 2023, Japan had seven to nine unicorns depending on the data source, compared to 661 in the United States, 172 in China, and 52 in the United Kingdom. While the specific unicorn target was not met, the number did increase from the 2018 baseline.​

Several positive trends have emerged within Japan's startup ecosystem during the J-Startup era. The total number of startups in Japan increased from 16,100 in 2021 to 22,000 in 2023, approximately 1.5 times growth. Japan's startup ecosystem ranking improved to number 18 globally in 2025, with 36 percent growth. The program provided visibility and credibility to selected startups, facilitating access to corporate partners and investors.​

However, annual investment in startups declined from 869.2 billion yen ($5.9 billion USD) in 2021 to 753.6 billion yen ($5.1 billion USD) in 2023. This shows the base (number of startups) expanded but the height (level of success and funding) remained stagnant. Japanese startup funding remains significantly smaller than in the United States and Europe.​

Despite the program's scale and duration since 2018, there appears to be a lack of comprehensive, independent impact evaluations using rigorous methodologies such as randomized controlled trials or regression discontinuity designs that would definitively measure the program's causal effects on startup outcomes. No official comprehensive evaluation reports specifically focused on J-Startup have been published, though METI has published regular press releases announcing selected companies and program updates.

What lessons can be learned?
  • Unicorn goal significantly missed: The ambitious target of creating 20 unicorns by 2023 was not achieved, with Japan having only seven to nine unicorns by that time, suggesting that intensive support for selected companies alone is insufficient when broader ecosystem conditions are not optimal.​
  • Investment stagnation despite increased startup numbers: While the program successfully expanded the number of startups from 16,100 to 22,000 between 2021 and 2023, total startup investment actually declined from 869.2 billion yen to 753.6 billion yen during the same period, indicating the program expanded the base but failed to increase the height of success.​
  • Structural barriers remain unaddressed: The program has not fundamentally altered Japan's risk-averse investment culture, limited venture capital ecosystem, or cultural attitudes toward entrepreneurship and failure, which require deeper cultural and institutional changes beyond what a government support program can achieve.​
  • Winner-picking approach limitations: The program's reliance on recommenders to identify high-potential startups early faces inherent limitations in predictive accuracy of startup success, and selecting companies that already show promise may not capture the highest-risk, highest-potential ventures.​
  • Early exit problem persists: The program has not addressed Japan's tendency for startups to go public early when valuations are lower, which limits their potential to achieve unicorn status as private companies—a structural feature of Japanese capital markets that undermines unicorn creation regardless of government support.​
  • Lack of rigorous impact evaluation: The absence of control groups or counterfactual analysis makes it difficult to determine which outcomes are attributable to J-Startup support versus broader trends in Japan's ecosystem or other policy interventions.​
  • Coordination value demonstrated: The program successfully consolidated fragmented government support programs under a unified brand and framework, creating a more coherent support ecosystem for selected startups by bringing together METI, JETRO, NEDO, and private sector supporters.​
  • Branding effectiveness: The J-Startup logo and certification provides selected startups with credibility and visibility both domestically and internationally, helping them access resources and partnerships through the government's explicit backing.

CURATED BY

Tom Hancock

Research Associate
Global Entrepreneurship Network
United Kingdom