2020 reflected yet another year where the Japanese investment in Israeli hightech increased and actually marked an all-time high of $1.1B, which reflects an approx. YoY growth of 20%.
While the total revenue generated in 2020 hit a record high, the number of players was reduced from 68 to 52 in comparison to 2019.
Along recent years, Japanese investment was led by large scale corporations with international foodhold such as Mitsubishi, NTT, Toyota, Mitsui, Marubeni, SoftBank and Hitachi. Yet only 22 new investors joined along 2020, as these companies enjoy vast international experience.
On the other hand, other Japanese corporations are yet reluctant to make investments or acquisitions due to little knowledge of the israeli eco-system and too few local connections.
The Japanese business culture is very unique and views business in a long term manner. Japanese do not rush to make investments. They are more interested in creating personal relationships that can support their business in the long run and for this reason the number of local Japanese representatives that aim to set a foothold in Israel has grown from 15 to 90 in the last four years.
If you are interested in investment deals and have yet local presence in Israel you can use a business development company like @network in motion ltd. We conduct focused tech-scouting and support communication between Japanese companies and Israeli startups.