Five innovative Japanese startups to watch out for in 2022
Japan is among the world's most extraordinary, fascinating, and progressive countries, especially for entrepreneurs.
Due to its excellent work ethic, entrepreneurialism, and the availability of VC capital, Japan has a plethora of outstanding startup businesses.
Japanese entrepreneurs have an atmosphere that is highly regarded around the globe, contributing to the country's exceptional accomplishments. In addition, they have reaped the advantages of government investment in a drive to improve the startup environment.
This article provides an assessment of five Japanese businesses to keep an eye on in 2022. Which of these might be successful in the long run, and which ones are just riding a momentary surge of interest?
The reputation of the Japanese for innovative ideas
From mass-produced laptops to tiny emojis we use, Japanese innovations have become a part of our life without us knowing it. According to a report by Forbes, Japan is the home to nearly 10% of the world's most creative enterprises.
Despite this, Japan's creative strength is sometimes underappreciated, with most observers focused on areas like Silicon Valley or Tel Aviv. Yet, Japan has contributed considerably more to the earth than karaoke, Pokemon, and quick ramen bowls.
Five innovative Japanese startups in 2022
1. Atama Plus
Introduction
Atama Plus is a Japanese educational technology firm that offers AI-based education resources to students in order to improve their learning.
Company review
With almost 12 million pupils attending school each year, academic success is a sector in which Japanese people are heavily dedicated.
The Japanese prep school sector is expected to be worth roughly $9 billion in 2020. The primary selling feature of Atama Plus' AI technology is how it detects where learners are getting deserted in their schooling and offers customised solutions to cover the current shortages in their knowledge.
The firm began delivering online mock exams in July of last year. Then in December, they formed a cooperative research team with Kyoto's Ritsumeikan University to connect the company's training records with the university's admission exams.
Financial profile
So far, Atama Plus has raised a total of $74.6 million in fundraising stages. Atama Plus had until recently solely attracted financing from domestic firms such as DCM Initiatives and JAFCO.
The most recent Series B fundraising cycle in July '21 included the participation of non-Japanese firms such as Pavilion Capital (SG) and T. Rowe Price (US).
2. Playco
Introduction
Playco has become a modern mobile gaming firm founded by Michael Carter, co-founder of Game Closure, and Justin Waldron, co-founder of Zynga, along with game creators Takeshi Otsuka and Teddy Cross.
Company review
Playco refers to itself as an interactive play gaming firm since it creates games that may be experienced by either 2 or more individuals anywhere on the planet, regardless though neither participant has already installed the program.
According to the business, its competence stems from Carter's technological background in developing new computer technologies and Waldron's knowledge at Zynga, engaging users in enormous social gaming activities.
However, gaming firms like this one must strive for excellence in order to thrive since Japan's booming gaming and eSports industries draw new entrepreneurs on a daily basis.
Financial profile
As per a business release, Playco has secured $100 million in a Series A investment headed by Sequoia Capital and angel investor Josh Buckley. The financing is worth $1 billion to the corporation.
The funds obtained will be used to form relationships with the earth's leading digital and messaging firms, as well as to assemble a world-class staff.
3. Parallel
Introduction
Parallel, Japan's locally created variant of Discord, first debuted in August '19, is a social network that allows users to view material with peers while engaging in written or speech-based discussion.
It was developed in answer to complaints from Discord members in Japan as they discovered the browser-based version was particularly problematic to operate. The plurality of Parallel's consumers is currently Generation Z and game players.
Company review
Parallel presently has over one million subscribers both within and outside of Japan. Therefore, you might be asking if a new system of this sort is truly necessary.
However, the buggy user interaction and increased demands for remote conversation applications throughout the Covid epidemic indicate that there is undoubtedly some market for this.
The brand aims to broaden its popularity and profit on the lockdown lifestyle that has gained popularity in the last year or two.
Developing communication areas for friends and family focused on circumstances such as viewing movies, seeing live shows, playing music, and going shopping. The "Parallel" is nowhere.
Financial profile
The firm has not published its entire investment. However, it did get an additional $11 million of Series B fundraising in June '21 via investment firms including JAFCO, KDDI OIF, and Mitsubishi Capital.
4. Izumi Finance
Introduction
Izumi Finance (CRYPTO: IZI) has been a platform that offers configurable liquidity-like solutions mostly on Uniswap 3.0 multi-chains. It proposes to deliver Uniswap V3 LP token hedging incentives in non-homogeneous pricing ranges using the LiquidBox liquidity computing infrastructure.
With Uniswap V3, this might increase the effectiveness of bonus allocation for reward suppliers while increasing the profitability of liquidity suppliers.
Company review
Izumi is creating a new and unique solution that is much required inside the Defi environment, especially now since Uniswap has launched V3.
The configurable methods of Izumi provide a win-win scenario for both consumers, who will gain by pledging their assets on Izumi, plus projects and those who will be allowed to benefit from more extensive and inexpensive liquidity pools.
Financial profile
Izumi has acquired a sum of $5.6 million, counting their latest funding phase in December 2021.
The recent funding will be utilised to support the release of Izumi's native asset (iZi) on December 20th, backed by the debut of the Izumi "LiquidBox" system on December 21st.
5. Hachitama
Introduction
Hachi Tama is an IoT/AI firm based in Enoshima, Kanagawa, Japan, known as "Cats' Island". Hachi Tama has been the Japan delegation at Hardware Cup 2018 as well as one of Red Herring's five notable startups.
Company review
The Internet of Things (IoT) and proprietary measuring system in the Toletta® trash box continually analyses a cat's weight variations, pee periodicity, urine quantity, and much more.
Cat parents can exchange this information with their doctor to assist in detecting urinary illness symptoms before it becomes too late.
Japan is indeed a cat-loving nation, so when Hachi Tama's product toletta is prepared to join the United States marketplace, it should achieve it with the fervent support of Japanese cat parents.
On Cyber Monday 2019, toletta was the best selling product on Amazon Japan.
Financial profile
Hachi Tama Inc. confirmed the completion of its Pre-Series A financing round in Japan, totaling $4 million. The funding will be used in order to increase the efficiency of the proprietary early detection system featured in toletta, the firm's intelligent litter box.
Final thoughts
Japanese industry is known for remaining conservative, vintage, and risk averse, yet startup innovation has grown in popularity in the last few years.
While older males often operate larger, more conventional enterprises in Japan, the passion for invention is active and thriving in most of the nation's youthful entrepreneurs.
