TLDR: Japan to introduce Residency Program for angel investors to boost startup investment
Key Points:
- Japan plans to introduce a residency program lasting up to five years for angel investors to attract vital investment into its startup ecosystem.
- The program will cover 13 national strategic special zones and requirements for residency will include investment proposals and asset levels, overseen by local authorities to prevent financial crimes.
Japan is set to offer residency lasting up to five years to angel investors in a move to bring in much-needed investment for the country’s startups. The program is expected to launch in the next fiscal year and will cover 13 national strategic special zones. Potential investors will need to meet requirements such as submitting investment proposals, showcasing past performance, and providing evidence of asset ownership. These criteria will be finalized at a later date to prevent money laundering and financial crimes, with local authorities overseeing the strategic special zones certifying and overseeing angel investors.
Residency holders will also be required to engage in activities to support startup growth, including offering corporate advice. The initiative aims to leverage startup investment expertise from other nations and draw inspiration from existing programs like the one in the United States, where immigrant investors can secure permanent residency by making significant investments in certain regions.
Total venture capital investment in Japan has been on the rise, reaching 270.6 billion yen in fiscal 2018, but still significantly lower than the US. Japan hopes this new residency program will boost investment in the startup ecosystem and provide a pathway for foreign investors to contribute to the country’s economic growth.
