Japan’s startup ecosystem entered a decisive growth phase in 2025. Venture funding rebounded, government-backed innovation programs expanded, and large corporations increased strategic investments. Unlike earlier cycles focused mainly on consumer apps, today’s most promising Japanese startups operate in deep tech sectors such as artificial intelligence, space, advanced mobility, robotics, and sustainable materials. These companies solve structural problems and leverage Japan’s strengths in manufacturing, engineering, and applied research.
Below are ten Japanese startups to watch closely in 2026. Each one combines strong technology, credible funding, and a clear path toward large-scale impact.
1. Sakana AI – Japan-native generative AI at scale
Sakana AI has emerged as Japan’s most prominent generative AI startup. The company focuses on large language and foundation models optimized for Japanese language, enterprise data, and domestic regulatory requirements. This positioning addresses a major gap left by US- and China-centric AI models.
In November 2025, Sakana AI raised approximately JPY 20 billion (around USD 135 million) in a Series B round at an estimated valuation of JPY 400 billion (about USD 2.6 billion). This round placed the company among Japan’s most valuable private startups. Sakana AI now targets enterprise adoption across manufacturing, finance, and government agencies. In 2026, its success will depend on commercial deployments and long-term contracts rather than research milestones alone.
2. Preferred Networks – Full-stack AI powerhouse
Preferred Networks (PFN) stands apart for its full-stack AI strategy. The company develops software, foundation models, and even custom AI infrastructure. It also collaborates deeply with industrial partners in automotive, robotics, and energy.
In late 2025, the Japanese government selected PFN’s large language model technology as part of its national AI initiative, commonly referred to as “Gennai.” PFN also expanded work on high-performance computing and liquid-cooled AI data centers. In 2026, PFN’s role as both a technology provider and national AI partner will keep it central to Japan’s AI ambitions.
3. SkyDrive – Urban air mobility moves closer to reality
SkyDrive leads Japan’s push into electric vertical takeoff and landing aircraft (eVTOL). The company aims to introduce short-range air mobility for cities and regional transport, an area where Japan’s dense urban layout offers strong demand.
In 2025, SkyDrive secured progress toward aircraft certification under Japan’s aviation authority and raised roughly JPY 8.3 billion in a pre-Series D round. The company now focuses on testing, safety validation, and pilot routes. During 2026, investors and regulators will watch SkyDrive’s certification milestones and demonstration flights as indicators of commercial viability.
4. WHILL – Redefining personal mobility
WHILL designs electric personal mobility devices that combine accessibility, aesthetics, and autonomy. While the company first gained attention for stylish electric wheelchairs, it has since expanded into autonomous short-distance mobility services for airports, hospitals, and large campuses.
Throughout 2024 and 2025, WHILL expanded deployments outside Japan, especially in Europe, and announced additional strategic investments to support autonomous mobility services. In 2026, WHILL’s ability to scale fleet-based services internationally will determine whether it evolves into a global mobility platform.
5. Astroscale – Solving the space debris crisis
Astroscale tackles one of the most urgent problems in space: orbital debris. The company develops technologies for satellite servicing, life-extension, and debris removal. Governments and satellite operators increasingly view these services as essential infrastructure.
In 2025, Astroscale expanded partnerships across the Asia-Pacific region, including strategic collaborations with Indian space companies. This expansion signals growing commercial demand for orbital servicing. In 2026, Astroscale’s challenge lies in converting demonstration missions into recurring service contracts.
6. ispace – Commercial lunar exploration pioneer
ispace focuses on lunar landers, payload delivery, and long-term lunar infrastructure. It ranks among the few private companies worldwide with repeated lunar mission experience.
The company faced setbacks during a 2025 lunar landing attempt, but it retained strong government and corporate backing. ispace continues to prepare future missions with improved landing systems and stronger risk management. In 2026, mission execution and cost control will define whether ispace secures a lasting role in the lunar economy.
7. Spiber – Sustainable materials through biotechnology
Spiber develops Brewed Protein materials produced through fermentation. These materials replicate the properties of silk, wool, and leather while dramatically reducing environmental impact. Major apparel and automotive brands have already tested Spiber’s materials.
Between 2024 and 2025, Spiber raised more than JPY 10 billion (around USD 65 million) to expand production capacity and commercialization. The company plans additional consumer product launches in 2026. If manufacturing costs continue to fall, Spiber could become a cornerstone supplier for sustainable materials worldwide.
8. TIER IV – Open-source autonomy at work
TIER IV leads development of Autoware, the world’s most widely used open-source autonomous driving software. The company builds autonomy stacks that enable faster deployment of self-driving systems across multiple vehicle types.
In 2025, TIER IV expanded real-world deployments of autonomous shuttles and introduced an end-to-end Level 4 architecture. Municipal pilots and logistics use cases continue to grow. During 2026, broader commercial rollouts will test how open-source autonomy competes with proprietary systems.
9. GITAI – Robotics for space operations
GITAI develops robotic systems designed to perform tasks in space that currently require astronauts. These tasks include maintenance, assembly, and inspection on satellites and future space stations.
The company launched robotic demonstration missions and satellite platforms in 2024 and 2025. It also diversified into satellite hardware and service offerings. In 2026, successful long-duration robotic operations will strengthen GITAI’s position as a provider of space robotics-as-a-service.
10. SmartHR – Enterprise SaaS with global potential
SmartHR digitizes labor management, compliance, and HR workflows for Japanese companies. The platform has achieved strong adoption among small and medium-sized enterprises and continues to move upmarket.
In November 2025, SmartHR received a USD 96 million strategic minority investment from General Atlantic. This investment supports product expansion and potential overseas growth. In 2026, SmartHR’s execution in enterprise sales and regional expansion will determine its trajectory toward a large IPO or strategic acquisition.
Why these startups matter in 2026
These ten companies illustrate a broader shift in Japan’s startup landscape. Capital now flows toward long-term technological advantage rather than short-term consumer trends. Government support, corporate partnerships, and global demand reinforce this momentum. In 2026, Japan’s most successful startups will not simply grow fast; they will shape infrastructure, industry standards, and international markets.
Japan no longer plays catch-up in innovation. These startups show how the country intends to lead.
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