Japanese Capital Accelerates Europe’s Deep Tech Surge After EU-Japan Trade Pact

Japanese corporations and venture funds have stepped up financing for European technology companies, channeling more than €33 billion into the region since 2019, according to data compiled by NordicNinja and Dealroom. The influx began after the EU-Japan Economic Partnership Agreement entered into force, creating a framework that eased cross-border investment.

Shift in destination for corporate venture capital

Prior to the trade pact, Japanese participation in European funding rounds totaled €5.3 billion over five years. During that period, SoftBank was virtually the only major Japanese player on the continent, highlighted by its acquisition of Finnish game developer Supercell. Since the agreement, a broader range of companies—including Mitsubishi, Sanden, Yamato Holdings and Marunouchi Innovation Partners—have joined the field. Venture capital arms with Japanese limited partners, such as NordicNinja, ByFounders and Toyota-backed Woven Capital, are also writing checks.

NordicNinja, a joint initiative of its managing partners and JBIC IG Partners, now oversees €250 million in assets. Co-founder Tomosaku Sohara noted that many Japanese multinationals initially built corporate venture teams in the United States during the early 2000s. Over time, cultural similarities and a maturing entrepreneurial environment convinced them to look at Europe, where founders often come from established industrial firms rather than university labs.

Deep tech takes center stage

Deep-tech and artificial-intelligence startups captured 70 percent of Japanese-linked deals in Europe during 2024. The three largest recent rounds with Japanese participation illustrate that focus:

• U.K. autonomous-vehicle developer Wayve secured $1.05 billion in May 2024, led by SoftBank.
• British quantum-computing company Quantinuum raised €273 million in January 2024, with backing from Mitsui.
• Spanish quantum firm Multiverse Computing obtained €189 million in June 2025, supported by Toshiba.

Europe hosts more than twice as many venture-backed startups per capita as Japan and 4.3 times more unicorns, Dealroom’s figures show. That depth offers Japanese investors greater choice, while Europe’s relative shortage of late-stage capital and industrial expertise creates an avenue for partners with large balance sheets and manufacturing know-how.

Industrial expertise and global reach

German battery-materials recycler Tozero, which has raised €14.5 million from NordicNinja, Honda and engineering group JGC, exemplifies the synergy. Chief executive Sarah Fleischer said Japanese corporations bring experience in large-scale production and established supply chains for critical minerals—skills Europe needs as it scales green-energy infrastructure. She added that the appetite for strategic investment from Japan exceeds what she sees among European industrial groups.

Japanese companies also serve as a potential bridge to Asian markets at a moment of heightened U.S.–China tensions. For European startups, that connection can open distribution channels and give access to high-precision manufacturing capabilities.

Imagem: Internet

Cultural and operational considerations

Despite the capital on offer, founders report that language barriers and differing decision-making styles can slow progress. English fluency remains limited in many Japanese boardrooms, and extensive internal research precedes most corporate approvals. Fleischer noted that in-person meetings in Japan were essential to align expectations and avoid misunderstandings. NordicNinja’s Sohara echoed the importance of local guidance when navigating business customs.

SoftBank stands apart from traditional investors. The firm, driven by founder Masayoshi Son, operates with a faster, more centralized process than consensus-oriented Japanese corporations. SoftBank participated in 22 percent of Japanese-linked European deals in 2021, a year in which such investors were involved in rounds totaling €11.2 billion.

Outlook for 2025 and beyond

Dealroom and NordicNinja project Japanese participation in European fundraising rounds to reach about €3 billion in 2025, a decrease from 2024 yet still far above pre-2019 levels. Market observers expect collaboration to broaden as Japanese firms continue searching for growth outside their home market, where the pool of entrepreneurs remains comparatively small. Anecdotal evidence suggests interest is already climbing: European founders say they are receiving more inquiries from Japanese corporate limited partners seeking introductions.

While Middle Eastern funds are attracting global attention, Japan’s combination of capital reserves, industrial heritage and geopolitical positioning is increasingly compelling to European deep-tech companies. As both ecosystems mature, stakeholders anticipate sustained two-way engagement, even if the pace of individual transactions remains deliberate.

Crédito da imagem: CNBC