Around seven Japanese firms are poised to list on Nasdaq in the next few months, with an additional ten to twenty planning to do so next year.
Dozens of Japanese startups are eyeing listings on Nasdaq in the coming years as entrepreneurs seek opportunities and capital abroad. Around seven Japanese firms are poised to list on Nasdaq in the next few months, with an additional ten to twenty planning to do so next year.
This shift is driven by a changing corporate culture in Japan, with more young talent opting for startups or launching their own ventures rather than pursuing traditional roles at large conglomerates.
Furthermore, the country’s retail investors, historically the target for new offerings, are growing older and more risk-averse, making international listings more appealing. US institutional investors are also showing a greater willingness to invest in innovative yet unproven technologies, further fueling this trend.
This surge in Japanese listings is benefiting financial institutions like Boustead Securities, which has seen significant growth in business with the Japanese clients. In contrast, the number of the Chinese IPOs on Nasdaq has declined this year, with some Chinese companies seeking listings in Europe.
While some critics question whether this boom in Japanese startups listing on Nasdaq will lead to sustainable growth and profitability, record funding rounds and government support for startups in Japan signal growing momentum in the market.
Prime Minister Fumio Kishida has announced a ¥10 trillion package to support the creation of 100,000 new startups and 100 unicorns by 2027.
In the midst of this optimism, the Tokyo Stock Exchange is also striving to attract high-growth companies to its Growth Market section. However, some industry leaders urge caution, emphasizing that merely being listed on Nasdaq does not guarantee success.
Concerns about the liquidity among professional institutional investors and the absence of a concrete growth plan have been raised. Nonetheless, promising startups like Pocketalk Corp., a handheld translation device maker, remain confident about their Nasdaq listing plans.