Investment VC

Japanese investors back $38.1b into European tech startups

• ByStartupStory     |    November 11, 2025

Japanese investors have poured approximately $38.1 billion (33 billion euros) into European tech startups since 2019, fueling a deep tech boom across the continent. This surge follows the EU-Japan Economic Partnership Agreement, which has facilitated closer financial and strategic ties between the two regions. Notably, Japanese venture capital firms and corporate investors have a strong preference for deep tech and artificial intelligence, which accounted for 70% of their investments in 2024, aligning with Japan’s national priorities such as decarbonization, supply chain resilience, and industrial innovation.

The UK has been the primary beneficiary of this capital influx, attracting nearly half of the total Japanese investments in Europe, followed by Germany and France. High-profile funded companies include UK autonomous vehicle startup Way, quantum computing firm Quantinuum, and Spanish quantum startup Multiverse Computing. These investments reflect Japanese companies’ strategy to broaden their technological reach beyond their domestic market and leverage Europe’s innovative startup ecosystem.

Over the past few years, the number of funding rounds involving Japanese investors has increased significantly, with a diversification away from major deals led by SoftBank toward a broader range of startups across early and breakout stages. Aside from capital, Japanese investors bring industrial expertise and strategic partnerships that are crucial for scaling startups in fields such as climate tech, AI, and supply chain technologies.

Overall, Japanese investment is a significant force shaping Europe’s deep tech and AI startup landscape, representing a mutually beneficial collaboration where Europe’s advanced technologies meet Japan’s manufacturing strength and long-term investment approach.

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