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Capital Raising - Japan

Japan
  • The country in Japan is expected to see the Total Capital Raised in the Capital Raising market market reach US$3.45bn by 2025.
  • Traditional Capital Raising is anticipated to lead the market with a projected market volume of US$2.51bn in 2025.
  • When compared globally, the United States is set to generate the most Capital Raised, with US$205.4bn in 2025.
  • Japan's Capital Raising market is seeing a surge in corporate bond issuances as companies seek alternative funding sources amidst economic uncertainties.

Definition:

The Capital Raising market refers to the process of raising additional capital to launch, finance, and grow a business or a project. Traditional Bank Loans are not considered in the market.

Structure:

The market consists of two segments:
- The Traditional Capital Raising market refers to traditional venture financial services for startups and emerging companies that do not yet possess a positive track record, but have exceptional growth potential.
- The Digital Capital Raising market refers to digital financial services for business customers and private borrowers.
The market data comprises of the amount of capital raised, number of deals, and average deal size.

Additional information:

Besides Traditional Bank Loans, there are various alternative forms of debt and equity financing that help businesses, especially startups and emerging companies who seek additional funds to support their business' operation and growth. Nowadays, owing to the rapid growth rate of startups and emerging companies, these financial services are more attractive and popular.
Key players in this market are companies such as Squoia Capital, Hercules Capital, and Indiegogo

Use the info button next to the boxes for more information on the data displayed.
In-Scope
  • Venture Capital
  • Venture Debt
  • Digital Capital Raising
Out-Of-Scope
  • Traditional Bank Loans
Capital Raising: market data & analysis - Cover

Market Insight report

Capital Raising: market data & analysis
Study Details

    Capital Raised

    Notes: Data shown is using current exchange rates. Data shown reflects market impacts of Russia-Ukraine war and the bankruptcy of the Silicon Valley Bank.

    Most recent update:

    Source: Statista Market Insights

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update:

    Source: Statista Market Insights

    Average Deal Size

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update:

    Source: Statista Market Insights

    Global Comparison

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update:

    Source: Statista Market Insights

    Number of Deals

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update:

    Source: Statista Market Insights

    Analyst Opinion

    The Capital Raising Market in Japan is experiencing mild growth, influenced by factors such as evolving investor preferences, increasing digitalization of funding platforms, and a growing emphasis on sustainable investment practices among companies and stakeholders.

    Customer preferences:
    Investors in Japan are increasingly gravitating towards sustainable and socially responsible investment opportunities, reflecting a broader cultural shift towards environmental consciousness and corporate accountability. This trend is amplified by younger generations who prioritize ethical considerations in their investment choices, seeking to align their portfolios with their values. Additionally, the rise of digital platforms has made it easier for investors to access diverse funding options, facilitating a more democratized approach to capital raising that resonates with the evolving preferences of a tech-savvy populace.

    Trends in the market:
    In Japan, the Capital Raising Market is experiencing a notable shift towards sustainable finance, with a growing emphasis on green bonds and ESG (Environmental, Social, and Governance) investments. This trend is being driven by institutional investors who are increasingly integrating sustainability criteria into their investment strategies. Additionally, crowdfunding platforms are gaining popularity, enabling startups and social enterprises to access capital from a broader base of individual investors. These developments signify a cultural pivot towards responsible investing, compelling industry stakeholders to adapt their offerings and align with the evolving values of a socially conscious investor base.

    Local special circumstances:
    In Japan, the Capital Raising Market is shaped by a unique blend of cultural values and regulatory frameworks that emphasize harmony and consensus. The country's long-standing commitment to environmental stewardship is reflected in its robust support for green bonds, driven by both governmental incentives and societal expectations. Moreover, Japan's aging population is fostering a shift towards sustainable investments that prioritize long-term benefits. Additionally, regulatory bodies are increasingly encouraging transparency and responsible corporate governance, aligning with global ESG trends while catering to local investor preferences.

    Underlying macroeconomic factors:
    The Capital Raising Market in Japan is significantly influenced by macroeconomic factors such as demographic shifts, economic stability, and global investment trends. Japan's aging population is prompting a greater focus on sustainable investments, as investors seek long-term returns that align with societal needs. Furthermore, the country’s commitment to green initiatives is attracting both domestic and international capital, especially in the context of rising global environmental concerns. Additionally, Japan's stable fiscal policies and low-interest rates create an attractive environment for capital raising, encouraging innovation and entrepreneurship while enhancing the appeal of green bonds and ESG-compliant investments.

    Methodology

    Data coverage:

    Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

    Modeling approach / Market size:

    Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us estimate the market size for each country individually.

    Forecasts:

    In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

    Additional notes:

    The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

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    Capital Raising: market data & analysis - BackgroundCapital Raising: market data & analysis - Cover

    Key Market Indicators

    Notes: Based on data from IMF, World Bank, UN and Eurostat

    Most recent update:

    Source: Statista Market Insights

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