Long revered as Japan’s spiritual and cultural heartland, Kansai has long been a cradle of tradition, filled with ancient temples, a vivid history, and a rich artistic legacy. Iconic cities like Kyoto, Osaka, and Kobe consistently draw visitors, eager to experience their historical landmarks. Yet Kansai is no longer just a place steeped in tradition—it is now transforming into a global hub for deep tech innovation.
This shift from cultural epicenter to technological powerhouse took a pivotal turn in 2020, when Kansai’s main cities—Osaka, Kyoto, and Kobe—were designated by the Japanese government as an innovation “consortium.” Each city brings its own distinct strengths: Osaka as a deep tech hub, Kyoto with its strong ties to prestigious universities, and Kobe as a testing ground to pilot breakthrough innovations.
Kansai’s ecosystem thrives on close collaboration between universities, industry leaders, and government bodies, creating a fertile environment for university-launched startups and corporate alliances. Backed by both local and global stakeholders, Kansai is fast becoming a force to reckon with on the global tech stage, nurturing a new generation of startups in fields ranging from clean energy and biotechnology to healthcare and robotics.
Aligned with this development is Kansai Startup Mashups, an initiative launched jointly in 2022 by Osaka Innovation Hub, Chiemori, and the cities of Kobe and Hyogo, in partnership with the Japan External Trade Organization (JETRO). The program is designed to accelerate local startups by offering a range of support mechanisms and has since expanded to help these companies scale globally. Its ambition is clear: to foster unicorns and build a best-in-class startup ecosystem, gearing up for Expo 2025.
The progress of Kansai’s startup ecosystem is already evident in the numbers. According to Dealroom data, venture capital investment in the region has surged over the past decade, particularly in the health tech sector, which leads in both the number of funding rounds and total investment. Clean energy and semiconductors have also seen rising interest, reflecting the growing global demand for sustainable energy solutions and advanced tech components.
Despite a global economic slowdown and the “funding winter,” Kansai’s deep tech startups have continued to attract investment. While 2022 saw a dip in funding, capital flow has remained steady, particularly for startups working on transformative technologies. The region’s funding outlook has surged in recent years, rising from a modest JPY 3.5 million (USD 24,500) in 2010 to an astounding JPY 392 million (USD 2.7 million) by 2021, before easing slightly to JPY 362 million (USD 2.5 million) in 2022.
Moreover, the average funding amount per round has risen, climbing from JPY 1 million (USD 7,000) in 2019 to JPY 3.3 million (USD 23,100) in 2024. This trend signals the gradual maturation of Kansai’s startups, with investors increasingly recognizing their long-term potential.
The growing sophistication of Kansai’s deep tech scene is propelling Kansai Startup Mashups to take its initiative global, with a debut planned for the Singapore Week of Innovation and Technology (SWITCH) 2024. This event marks a pivotal moment for Kansai’s startups, offering them the chance to engage with international investors, partners, and institutions. Collaborating with local stakeholders, JETRO and For Startups are organizing meetings to connect these startups with key players in various industries.
Kansai’s leading ventures
Kansai Startup Mashups will feature six standout startups at SWITCH 2024, each poised to make a global impact:
- EX-Fusion, an Osaka University spinoff, is advancing laser fusion technology aimed at delivering clean, limitless energy through its fast ignition method. The startup’s vision could redefine the global energy landscape, offering a sustainable alternative to fossil fuels.
- Mui Lab (stylized as “mui Lab”), hailing from Kyoto, is taking a unique approach to smart home technology with its concept of “calm technology,” which blends energy efficiency with seamless, user-friendly design. Already partnering with major Japanese players, Mui Lab aims to introduce this tech-enabled harmony to homes worldwide.
- OSINTech, based in Kobe, offers an artificial intelligence-powered platform called RuleWatcher, that helps businesses navigate the complex landscape of global ESG regulations, enabling them to stay ahead in sustainability compliance.
- Pittan, based in Hyogo, is transforming personal wellness with a non-invasive sweat patch that can monitor health and nutrition in real time. By making health monitoring more accessible, Pittan is rethinking how we manage personal wellness.
- Regional Fish Institute, a food tech startup from Kyoto University, is using genome editing to breed high-value marine species like faster-growing sea bream, tackling both aquaculture efficiency and global food security concerns.
- Thinker, an Osaka-based robotics firm, creates advanced proximity sensors and robotic hands that can automate repetitive tasks. Its proprietary technology, which can accurately detect object position and posture, could offer solutions to industries grappling with labor shortages.
Meet the startups
With Kansai’s deep tech sector set to play a central role in the nation’s JPY 10 trillion five-year startup development plan, these six startups participating in SWITCH 2024 represent the vanguard of a new wave of innovation, each with the potential to drive global change.
This article was published in partnership with JETRO and For Startups. KrASIA is an event partner for Kansai Startup Mashups. Kansai Startup Mashups is organized by the Osaka Business Development Agency (OBDA), in partnership with JETRO.