Tokyo is positioning itself as Europe's next startup growth market, with the city's tech ecosystem attracting increasing attention from international founders and investors. The upcoming SusHi Tech Tokyo conference, now Asia's largest innovation event, will host 60,000 attendees from Japan, Asia, the US, and Europe. Billboards featuring the conference's white, red, and black logo have already appeared across the city.

IQ Capital, a UK-based venture firm, views Japan as a natural extension of its European strategy, with over a quarter of its portfolio companies already engaged with Japanese customers and partners. The Tokyo Metropolitan Government aims to create 20 unicorns by 2035 through closer ties between corporates and startups. Scrum Ventures reports that about one-third of its most recent cohort came from Europe, up from previous years.

New accelerator programs are helping European startups access Japan's ecosystem. UK-based Thermulon, which develops materials for EV batteries, participated in the Sakura Deeptech Shibuya Accelerator and secured potential partnerships with major Japanese corporates. The government has also opened the Tokyo Innovation Base, a free workspace where founders can work and network. With its dense population providing a testing ground for sustainable urban solutions and a maturing deeptech ecosystem, Tokyo is increasingly seen as an attractive destination for European startups looking to expand into Asia.