“Less is more” as Japanese investors prioritize larger investment capital into fewer companies.
Since 2012, Japanese investors have consistently increased the size of investment into start-up companies. The sign surely of a maturing venture capital investment market? Larger investment gives the start-ups in question, a far more likelihood of succeeding after Series A funding.
Rather than investing a little in a lot of companies, the trends clearly indicates that Japanese investors are cherry picking companies they feel have a much higher chance of success.
Japanese investors have been stereotypically viewed as conservative but this trend would indicate quite the contrary, when they find something they like, they bet large. So perhaps a better assumption would be that they’re picky rather than conservative?
Ironically, this almost decade long trend is in stark contract with Softbank’s recent change of strategy deciding instead to make smaller bets in early-stage start-ups.
Given the amount of capital Softbank invests in start-up companies, they could well singlehandedly change this trend on behalf of Japan.