Latest trends in Japan’s effort to nurture startups

Research evidence excerpt

Latest trends in Japan’s effort to nurture startups

25 May 2026

Mizuho Securities Equity Research Cross-sector Research / Investment Strategy

Industry Overview

Government moves quickly to help small startups, address shift to deep tech

Japanese government’s initiatives to nurture startups, including toSenior Analyst:

allow banks to invest in startups for longer, to better enable theTomoki Akiyama

government and major corporations to provide support, to increase+81 3 6202 8048

tomoki.akiyama@mizuho-sc.com M&A, to increase capital flows from the GPIF, other organizations, and

to promote crossover investing.Analyst:

Mitsuki Nakata On 20 May, the Startup Policy Promotion Subcommittee, which is under the

+81 3 6202 8379 Japan Growth Strategy Council, announced that it is discussing a national

mitsuki.nakata@mizuho-sc.com strategy for developing startups, including a Startup Creation Package.

Alongside the shift to deep tech and the problems facing small startups,

the government created many initiatives that are positive for the startup

industry and stock market. These initiatives include rapid regulatory changes

enabling banks to invest in startups for more than 10 years, measures for

the government and major corporations to provide proper compensation to

startups as their first customer as a form of support, and changes to industry

practices that allow startups to focus on not just an IPO exit but also an M&A

exit from the outset. We expect an increase in startup investors as crossover

investing is promoted and as more capital is provided to startups by the

Government Pension Investment Fund, university funds, and others.

Remaining issues likely to be resolved as activity picks up, but we

look for stricter disclosures and audits