Japan seed-stage startup funding plunges 42% to 10-year low of $124M in 2025 as Tokyo Stock Exchange tightens listing rules, pushing VCs toward safer growth-stage investments

Seed-stage startup funding in Japan sinks 40% as investors grow selective

StartupsWith TSE tightening listing criteria, VC firms look for safer growth-stage betsJapanese startup funding fell 14% in 2025, with earlier-stage companies seeing bigger drops. (Photo by Rie Ishii)TOKYO -- Funding in Japan for the earliest-stage startups tumbled 42% last year to a 10-year low of 19.9 billion yen ($124 million), as the prospect of fewer listings on the Tokyo Stock Exchange's Growth market spurs investors to be more selective about where they put their money....