Why Osaka Is Emerging As A Launchpad For International Startups Entering Japan

International startups looking to break into the Japanese market may want to reconsider their default assumption that Tokyo is the only viable entry point, according to a cross-border market entry specialist based in Osaka.

COO of encognize G.K., Brian Lim, has worked with more than 200 startups across innovation ecosystems in Asia. He now supports overseas startups entering Japan and Japanese startups expanding internationally, and argues that Osaka and the broader Kansai region offer distinct advantages that many foreign founders overlook.

For Lim, one of the most common errors he encounters is the assumption that a go-to-market strategy proven in another country can simply be transplanted into Japan.

“The biggest barrier that they face is actually taking their international playbook and applying it directly to Japan,” Lim observed.

He contends that Japan frequently demands a different value proposition, a different approach to relationship-building and a longer-term commitment than founders may be accustomed to in other markets.

Lim relocated to Osaka in 2022. One of the first things he noticed was how receptive the local ecosystem was to new ideas and new companies.

Since then, he notes, major companies in Kansai have gained increasing experience working with startups through pilot projects, proofs of concept, investment and longer-term commercial relationships.

For Lim, Osaka’s appeal is closely tied to the region’s concentration of industries. He points to advanced manufacturing, pharmaceuticals, biotechnology, medtech, tourism and mobility as areas where Osaka and Kansai can offer particular opportunities.

Healthcare stands out as one example. Osaka has a long history as a centre of the pharmaceutical industry, particularly around the Doshomachi district. Lim views this accumulated expertise, talent and corporate presence as an advantage for overseas startups seeking collaboration in medtech, healthtech, pharma and biotech.

His advice to founders is not to ask simply whether they should enter Japan, but rather which Japanese city gives them access to the customers and partners they actually need.

One of Lim’s key observations is that foreign startups entering Japan do not always arrive looking for investment.

“Many foreign startups, when they come to Japan, actually don’t look for funding. They actually need a customer or they need a partner first,” he explained.

This is where he sees Osaka and Kansai as particularly relevant. The region is home to established companies in sectors including real estate, transportation, electrical appliances, pharmaceuticals and biotechnology. Some of these companies are actively seeking startups with which they can collaborate.

For founders trying to identify these opportunities, Lim recommends starting with publicly available information: annual reports, sustainability reports, mid-to-long term strategy papers and corporate innovation challenges.

These documents often reveal the problems companies are trying to solve and the areas in which they want to work with external partners.

Rather than asking only which companies invest in startups, Lim’s approach suggests a more practical question: which Japanese company has a business problem that a startup’s technology can solve?

Language, visas and capital requirements are often cited as barriers to entering Japan. Lim acknowledges these issues but does not see them as the primary reason companies fail in the market.

He has seen well-funded companies with teams of lawyers, administrative scriveners and accountants still struggle because they attempted to apply their overseas playbook directly to Japan without adaptation.

Another common concern among foreign founders is the long sales cycle associated with Japanese business culture.

Lim argues that building trust and completing the pre-contract process can take longer in Japan. However, when measuring the total deal cycle from first discussion through to project completion, the difference compared with other Asian markets may be smaller than it first appears.

“The only difference is the order of activities,” Lim noted.

In Japan, more relationship-building, internal approval and solution validation typically happen before a contract is signed. Once agreement is reached, execution can move quickly.

For founders, the implication is straightforward: entering Japan requires patience, preparation and a willingness to commit for the long term.

Lim distils his advice into three principles he describes as “rights” that founders need to earn before entering Japan.

The first is earning the right to talk – demonstrating credibility, showing that the solution is strong and proving that the startup is worth meeting.

The second is earning the right to ask – doing homework on the Japanese market, potential customers and corporate partners before requesting support or introductions.

The third is earning the right to play – showing that the startup understands what it takes to serve Japanese customers and partners with its solution.

Lim maintains that these principles apply regardless of whether the startup offers hardware, SaaS or another type of technology.

Looking ahead, Lim sees opportunities in tourism, AI, sustainability, green transformation and healthcare, and believes Osaka can strengthen its position as an international startup hub by building on these existing industrial strengths.

For international founders, that may be the clearest reason to consider Osaka: not simply because it has a startup ecosystem, but because it can offer access to the customers, corporate partners and industries needed to build a viable business in Japan.

Lim previously ran startup programmes across Asia-Pacific at Rainmaking before joining encognize G.K., where he focuses on market entry, corporate partnerships and business development for companies moving between Japan and international markets.

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Last Updated on September 25, 2026 by Nick Ross