Japanese start-ups see rising interest from banks as government seeks to revitalise tech sector
- Lenders in Japan are planning to increase the staff they allocate to start-up businesses as the government aims to stimulate entrepreneurship
- The government envisions start-up investment will grow to US$74.3 billion in five years, with the goal to make Japan the largest start-up hub in Asia
Just a few years ago, getting a bank loan to finance early-stage ventures was a rare occurrence in Japan. That’s now changing, according to Tokyo-based software start-up Techtouch.
“We even get approached by different branches of the same bank,” said Masaya Nakade, the firm’s chief financial officer. The company is in talks with three megabanks about loans and seriously considering making a deal with one of them, he said.
Lenders including Sumitomo Mitsui Banking Corp (SMBC) and Mizuho Bank are planning to increase the staff they allocate to start-up businesses, representatives say, in a move driven by the government’s plan to stimulate entrepreneurship. Bankers see additional revenue as clients mature.
The shift underscores how Prime Minister Fumio Kishida’s government is seeking to breathe new life into a start-up scene where the number of new entrants lags behind the US and Europe.
“The number of start-up companies is increasing and more are to be created,” said Jun Takahashi, general manager at SMBC's growth business development department. The bank needs to both expand coverage and deepen relationships with start-ups, he said.