Exploring Hamamatsu’s Startup Visa: A Guide for Foreign Entrepreneurs in Shizuoka
Introduction and Economic Overview
In the face of a global startup ecosystem experiencing a prolonged “funding winter,” with significant drops in funding valuations across the US and Europe between 2021 and 2023, Japan emerges as a beacon of resilience. Unlike its global counterparts, Japan witnessed a modest 12% decline in funding valuations, with indicators pointing towards a potential recovery in the current year.
This trend sets the stage for a series focusing on key Japanese prefectures like Shizuoka, which offer fertile grounds for startup ventures, thanks to favorable government policies to attract foreign entrepreneurs.
This article inaugurates our spotlight series by delving into the opportunities that Shizuoka Prefecture, particularly Hamamatsu City, presents for foreign entrepreneurs through its “Startup Visa” program.
Exploring Japan’s Startup Visa in 2024: A Guide for Aspiring Foreign Entrepreneurs
Shizuoka: A Manufacturing Powerhouse with a Rich Cultural Heritage
Nestled in Japan’s central Chubu region, Shizuoka Prefecture is not only famous for housing the majestic Mount Fuji but also for its vibrant manufacturing industry.
Known as “The Industrial Department Store,” it is home to global manufacturing giants such as Suzuki, Yamaha, and FCC, with the manufacturing industry dominated by sectors like Transportation Machinery, Electronic Machinery, Chemicals, and Food & Beverages.
This rich industrial fabric provides a unique backdrop for startups, especially those inclined toward manufacturing and technological innovation.
Analyzing the Startup Ecosystem
With Aichi Prefecture, Shizuoka has nurtured 371 startups as of 2022, with a total funding amount of JPY 18.6 billion. A noteworthy observation is that nearly half of these startups originated from universities, highlighting the region’s supportive academic environment.
Shizuoka, with its robust manufacturing history, is increasingly becoming a hub for industrial optical technology, with companies like Photo Electron Soul Inc and PiPhotonics paving the way for innovation.
Startups like Linkwiz also make strides by integrating 3D point cloud technology into manufacturing processes, enhancing production efficiency through machine visualization and autonomous adjustments.
Sectors Poised for Growth: The Shizuoka Triangle Cluster
The “Shizuoka Triangle Cluster” represents a strategic initiative to synergize Shizuoka’s manufacturing legacy with the burgeoning startup ecosystem and abundant natural resources.
This initiative focuses on developing targeted sectors across three geographical areas: “Pharma Valley” in the north, emphasizing the health sciences; “Food Science Hills” in the central region, focusing on agriculture, food processing, and food sciences; and “Photon Valley” in the west, dedicated to R&D and manufacturing in the optical technology sector.
These areas benefit from collaborative efforts involving the private, academic, and public sectors.
Hamamatsu’s Vision: Fostering a Manufacturing Startup Hub
Within this vibrant ecosystem, Hamamatsu City is taking a proactive approach by developing an “Ecosystem Building Plan.”
This plan aims to merge innovative startup ideas with traditional manufacturing techniques, transforming the region into a startup hub. The initiative seeks to foster collaboration across the academic, financial, government, and private sectors, creating a cohesive manufacturing and technological innovation environment.
The Hamamatsu Startup Visa: Gateway for Foreign Entrepreneurs
At the heart of Shizuoka’s appeal to foreign entrepreneurs is the “Startup Visa” program, part of the Foreign Entrepreneurship Promotion Project initiated by the Ministry of Economic, Trade and Industry.
Hamamatsu City, designated as a certified local government for issuing these visas, offers foreign entrepreneurs the opportunity to secure a “Business Manager” status residence visa. Eligibility criteria include possessing an office space, investing JPY 5 million, or hiring two full-time employees.
The visa covers sectors such as “Hamamatsu Industry Innovation” and “Revolutionary Technology,” among others, with applicants required to submit a comprehensive “Business Plan” for evaluation.
Successful applicants are given one year to establish their venture, with the Japanese government planning to introduce more flexible options for foreign entrepreneurs wishing to start businesses in Japan.
Furthermore, the Japanese government has announced that it will establish a system that will allow foreigners who wish to start their own businesses to stay in Japan for up to two years without an office or investment in Japan. We will update information on this new system on this site as appropriate while we await the announcement of the details.
Conclusion: A New Dawn for Startups in Shizuoka
Shizuoka Prefecture, with its rich industrial heritage and strategic initiatives like the Shizuoka Triangle Cluster and the Hamamatsu Ecosystem Building Plan, presents a compelling landscape for startups.
The region’s supportive policies and collaborative environment make it an ideal destination for entrepreneurs looking to navigate the challenges and opportunities of the Japanese market.
As the global startup ecosystem seeks pathways out of the funding winter, Shizuoka stands ready to welcome innovators worldwide, offering a unique blend of tradition and innovation.
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