The realm of venture capital is seeing significant movement as NordicNinja, a major Japan-backed VC firm in Europe, reports substantial Japanese financial involvement across the continent. Their latest findings illuminate the infusion of €33 billion in Japanese capital since 2019, directed predominantly toward deep tech and AI startups. This cross-continental interest highlights a growing recognition of Europe’s technological potential and a strategic alignment with Japan’s economic objectives, further strengthened by the enduring EU-Japan Economic Partnership Agreement (EPA) which has bolstered bilateral trade to surpass €200 billion annually.
Japanese venture capital’s participation in Europe is not a recent phenomenon, but its scope has expanded notably in recent years. Historically, these investments were occasionally sporadic or focused on singular high-stakes projects. Presently, the flow of capital has diversified, encompassing a broader range of sectors and companies. Earlier, investments were primarily led by titans like SoftBank; currently, a wider array of Japanese funds are becoming involved, addressing multiple stages of company development and varying areas of technology. This adjustment reveals a nuanced strategy, pivotal for entering competitive markets and enhancing the depth of international collaborations.
How Does Japanese Capital Influence European VC Investments?
Japanese capital forms 6% of the total VC investment in Europe. This financial involvement has seen deals worth €3.5 billion in 2024 alone, with an additional €2.4 billion in the first ten months of 2025. The continuous influx is evident in the rising number of investment rounds and the burgeoning engagement in early-stage and breakout-stage ventures.
Where Does the Majority of This Investment Go?
The United Kingdom has emerged as the primary recipient of Japanese capital, securing €14.9 billion out of €31 billion since 2019. Germany and France follow, with investments totaling €4.8 billion and €3.4 billion, respectively. The concentration of investment in these regions signals a target on robust innovation ecosystems which complement Japan’s objectives in technological growth.
Deep Tech and AI: The Principal Beneficiaries?
For the past years, deep tech and AI remain the central focus of Japanese investors, receiving 70% of the investment, double the rate of 2021. Japan’s financial commitment to these segments underscores a strategic intent to reinforce technological frontiers that align with global trends in automation and artificial intelligence.
Why Are Mega-Deals Significant in This Context?
Apart from mega-deals, the trend has shifted towards widened investment distributions, shown by a significant increase in investment rounds involving Japanese investors. In 2025, a record number of early and breakout stage deals underscore Japan’s broadened investment agenda, facilitating a diversity of tech-driven solutions spanning from battery recycling to AI-driven logistics.
Will Corporate Acquisitions Shape Future Collaborations?
Corporations are increasingly engaged in acquiring European tech startups, with 15 acquisitions noted in 2023 and projections set to double the figures by 2025. This acquisition-driven model paves the way for greater integration of European innovations into Japanese markets, thus enhancing the commercial value and application of these technologies worldwide.
This financial interdependence between Japan and Europe, underscored by robust investments in deep tech and AI, marks a collaborative trend in achieving technological goals. By fostering these partnerships, both regions are benefiting through an expanded innovation landscape and diversified resource utilization. This cross-border synergy, emphasized by key figures, is pivotal in establishing scalable solutions. According to industry experts, these alliances turn European entrepreneurial vigor and Japanese precision into functional, market-ready innovations, demonstrating the tangible progress generated through their collaboration.
