Japan's startup market in 2026 spans a wide range of categories, from real estate and space technology to fintech, robotics, enterprise software, logistics and communications infrastructure. That breadth reflects a market funding both deep technology bets and later-stage companies scaling existing operations, often within the same sectors that have long defined Japan's industrial base. This watchlist focuses on Japanese startups at a high-growth stage, giving investors, founders, operators and ecosystem stakeholders a clearer view of companies gaining commercial traction and scaling their operations.
This article presents twelve Japanese startups to watch in 2026, the first country-specific installment in an ongoing Top Startups to Watch series.
Methodology
This is the first edition of the Top Startups to Watch series and an initial version of its selection methodology. The selection takes into consideration publicly available evidence of product development, commercial progress, funding, strategic activity, market relevance, the experience of founders and leadership teams, and recent visibility in credible business and industry coverage.
This list highlights high-growth startups selected for their progress and market momentum. It is a watchlist rather than a ranking, and the methodology will continue to develop as the series expands.
12 Startups to Watch in Japan in 2026
Advasa
Founded: 2017 | Stage: Late Stage | Sector: Fintech
Founded in Tokyo in 2017, Advasa operates FUKUPE, an earned wage access service that allows employees to receive wages already earned before payday through bank accounts, prepaid cards or cashless wallets. The company says it holds nine issued patents in key markets, including Japan, the United States and South Korea, with filings in 16 additional jurisdictions. Advasa announced ¥2 billion in cumulative funding in 2022 and, that year, announced a capital and business alliance with IPwe. Its U.S. filing describes a proposed Nasdaq direct listing under the ticker ADBT.
Akari
Founded: 2021 | Stage: Late Stage | Sector: Enterprise Software & Productivity
Founded in Tokyo in 2021, Akari develops vertical AI software for sectors including construction, manufacturing, logistics, wholesale and retail. Its products include an AI road-inspection system with Infroneer Holdings, an on-site assistant developed with Shobond, and a house-planning tool with Daiwa House Industry. Akari says its software has been adopted by more than 1,000 companies and that it has been profitable since its founding. In January 2026, it received a ¥5 billion investment from Mitsubishi Electric under a capital and business alliance.
ArkEdge Space
Founded: 2018 | Stage: Growth Stage | Sector: SpaceTech
Founded in Tokyo in 2018, ArkEdge Space provides end-to-end services for micro-satellite constellations, including VDES maritime communications, optical links and navigation applications. JAXA selected it for a feasibility study of a GNSS-independent low-Earth-orbit positioning, navigation and timing system, and it is developing the B1 spacecraft for the ESA and JAXA Comet Interceptor mission. In February 2025, ArkEdge raised ¥8 billion in a Series B led by Incubate Fund, bringing total funding to ¥10.7 billion.
avatarin
Founded: 2020 | Stage: Growth Stage | Sector: Robotics & Automation
Founded in Tokyo in 2020 as ANA Holdings’ first startup spinout, avatarin develops telepresence robots that enable people to remotely operate and interact in distant locations. Its flagship product, newme, combines proprietary hardware and software for low-latency operation. The company has raised about ¥7.7 billion through Series A and B rounds from investors including the Development Bank of Japan, MUFG Bank, SoftBank and Omron Ventures. avatarin has also partnered with ANA Holdings and SoftBank to develop industry-specific AI agents.
Fact Base
Founded: 2022 | Stage: Growth Stage | Sector: Advanced Manufacturing & Materials
Founded in Tokyo in 2022, Fact Base develops ZUMEN, a cloud platform that helps manufacturers organize, search and share technical drawings, quotes, process instructions and inspection records. The company says revenue grew around 16-fold and its customer base 13-fold over two years, while expanding into 12 countries. In late 2025, Fact Base raised ¥4.4 billion in a Series C led by Insight Partners, its first investment in a Japanese company. The funding supports its global expansion and new business development.
FLUX
Founded: 2018 | Stage: Late Stage | Sector: AI, Data & Infrastructure
Founded in Tokyo in 2018, FLUX provides AI-enabled services for enterprises, covering AI strategy, implementation, workflow development, marketing optimisation and talent solutions. Its services have expanded across industries including finance, IT, telecommunications, manufacturing, consumer goods, retail and construction. The company reported that monthly revenue was approximately 3.1 times higher year on year as of April 2026. After raising ¥4.4 billion in Series B funding in 2023 and a further ¥4.4 billion in a Series B extension in 2025, FLUX raised ¥6 billion in the first close of its Series C in May 2026, bringing cumulative funding to approximately ¥16 billion. NTT DATA participated in the round.
Genki Robotics
Founded: 2025 | Stage: Early Stage | Sector: Robotics & Automation
Founded in Tokyo in 2025, Genki Robotics is a low-public-profile humanoid robotics company co-founded by Android creator Andy Rubin. Public reporting indicates that it is developing prototype machines, but it has not publicly launched a product or named customers. It reportedly raised a $50 million seed round and reached an approximately $1 billion valuation following a Series A in April 2026. Reported investors include Andreessen Horowitz, AMD, DCM Ventures, Incubate Fund, and X&.
IVRy
Founded: 2019 | Stage: Late Stage | Sector: AI, Data & Infrastructure
Founded in Tokyo in 2019, IVRy develops conversational voice AI for businesses, automating reservations, call routing and customer inquiries across sectors including healthcare, hospitality and retail. The company says it had issued more than 60,000 cumulative accounts by April 2026. In May 2026, IVRy secured ¥4.5 billion in debt financing from Sumitomo Mitsui Banking Corporation, Mizuho Bank and Mitsubishi UFJ Bank, bringing total funding to ¥15.11 billion. The capital supports IVRy Data Hub and its AI Contact Center.
LayerX
Founded: 2018 | Stage: Late Stage | Sector: Fintech
Founded in Tokyo in 2018, LayerX develops software for expense management, invoice processing and corporate card administration through its Bakuraku platform. The company says Bakuraku passed 15,000 customers by April 2025, while its workforce grew to roughly 430 employees by July 2025. LayerX also operates the generative AI product AI Workforce and the digital-securities platform Alterna. In September 2025, it raised a $100 million Series B led by TCV, bringing total funding to $192.2 million.
Preferred Networks
Founded: 2014 | Stage: Late Stage | Sector: AI, Data & Infrastructure
Founded in Tokyo in 2014, Preferred Networks develops MN-Core AI processors and the PLaMo generative AI foundation model. It has strategic ties with Toyota Motor and FANUC. In June 2026, it entered a business alliance with Mitsubishi Heavy Industries to develop Japan-made AI for mission-critical machinery and systems in social infrastructure and national security sectors. In December 2024, PFN raised ¥19 billion in the first close of an equity-and-debt financing led by SBI Group. A ¥5 billion extension in April 2025 brought the latest round’s total to ¥24 billion.
Sukedachi
Founded: 2017 | Stage: Growth Stage | Sector: Real Estate & Construction
Founded in Tokyo in 2017, Sukedachi operates a platform that connects skilled construction tradespeople with contractors, addressing labor shortages in Japan’s building industry. It also offers Sukedachi Employee for construction job placements and Sukedachi Academy for workforce training. The company says more than 220,000 businesses are registered on its platform and has partnerships with regional banks and Panasonic Holdings. In October 2024, Sukedachi raised ¥1.7 billion in a late-stage venture round from investors including Japan Post Capital and Sumitomo Mitsui Trust Bank.
Tailor
Founded: 2021 | Stage: Growth Stage | Sector: Enterprise Software & Productivity
Founded in 2021, Tailor develops Omakase, an enterprise resource planning platform for retail and e-commerce companies. The platform separates back-end functions such as inventory, fulfillment, finance and purchasing from the user interface, enabling businesses to connect modules and AI agents through APIs. Tailor operates from Tokyo and San Francisco and grew to about 50 employees by mid-2025. Across three closings in 2025, it raised $37 million in Series A funding to deepen implementations in Japan and expand in the US.
Japan’s startup market in 2026 includes high-growth companies across real estate and construction, space technology, robotics, fintech, enterprise software, logistics and communications infrastructure. The 12 companies highlighted in this article reflect a mix of product development, commercial progress, funding and strategic activity, market relevance, leadership experience and growing visibility within their respective sectors.
This list highlights high-growth startups selected for their progress and market momentum. It is a watchlist rather than a ranking, offering a current view of companies building scale in Japan’s startup market. As the Top Startups to Watch series expands, future editions will build on this approach with a more refined and comprehensive selection methodology.