TLDR:
- Japan will introduce a residency program for angel investors to stimulate investment in startups.
- The program aims to attract investors by offering residency lasting up to five years and covering 13 special zones for economic growth and innovation.
Japan is set to implement a new residency program for angel investors in order to encourage investment in the country’s startup ecosystem. The program, which will offer residency lasting up to five years, aims to attract much-needed investment capital to boost startups in key sectors. The new residency status will be implemented as early as April of the next fiscal year and will cover 13 national strategic special zones for economic growth and innovation. To obtain residency under the program, investors will need to submit investment proposals, have their past performance assessed, and have their financial assets evaluated. Specific details, such as minimum investment thresholds, will be finalized later.
To prevent financial crimes like money laundering, local authorities overseeing the special zones will be responsible for certifying and overseeing angel investors participating in the program. Residency holders will also be expected to contribute actively to startups’ growth by providing guidance and mentorship. Japan plans to adopt insights from existing residency programs in other countries, such as the United States, to enrich its startup investment landscape through the envisioned residency scheme. Concerns persist regarding the introduction of a residency program tailored for investors, with the need for thorough scrutiny of startup investment plans and applicant track records being paramount.
Despite a notable increase in venture capital investment in Japan, the country still lags behind the U.S. in terms of VC funding. Many startups in Japan face challenges securing funding, especially those operating at a loss shortly after their inception. The capital ecosystem in Japan requires further development to support the growth of new ventures. Collaboration between regulatory bodies and local government authorities will be essential for effectively managing the visa process. The program also aims to attract experienced investors to bolster Japan’s startup ecosystem and provide support for the flourishing of new ventures.
