Japan's technology startup ecosystem is experiencing a significant funding surge, with multiple companies securing substantial investments to develop AI-driven solutions and business support platforms. In early February 2026, at least eight startups announced funding rounds totaling over ¥4 billion, signaling strong investor confidence in Japan's innovation sector—a development that could reshape business operations for foreign entrepreneurs and companies operating in the country. The largest funding round came from CommerceX Holdings, which raised ¥1.73 billion in Series A financing led by DUAL BRIDGE CAPITAL, according to The Bridge. The company develops RECORE, a cloud-based enterprise resource planning system specifically designed for retail and reuse industries. CommerceX plans to use the capital to pursue mergers and acquisitions while expanding its brand management services, potentially creating new partnership opportunities for foreign businesses in Japan's growing circular economy sector. Artificial intelligence emerged as a dominant theme among funded companies. VALANCE, a startup developing AI-driven supply chain management systems for small and medium-sized enterprises, secured ¥270 million in seed funding on February 2nd, with Delight Ventures leading the round alongside SMBC Edge and Mitsubishi UFJ Capital, The Bridge reported. For expat business owners struggling with Japan's complex supply chain logistics, VALANCE's platform could offer much-needed operational efficiency improvements tailored to the local market. The restaurant industry also attracted significant investment. Goals, which operates the HANZO series of cloud-based business support tools for food service establishments, announced ¥1 billion in debt financing from major financial institutions including Mizuho Bank and Aozora Corporate Investment on February 4th. This funding reflects the ongoing digital transformation of Japan's restaurant sector, where foreign restaurateurs and hospitality entrepreneurs may find new tools to streamline operations from inventory management to staff scheduling. Innovation extended beyond software solutions. PowerWave, a venture originating from Toyohashi University of Technology, raised ¥910 million in Series A funding for its wireless power transfer technology designed to charge vehicles while in motion, according to The Bridge. While primarily targeting industrial applications, this technology could eventually influence electric vehicle infrastructure—relevant for expats considering EV adoption in Japan. The service economy also saw investment activity. Meetsmore, which operates the Mitsumore platform connecting customers with service providers for quotes and orders, announced that SMBC Edge joined its ongoing Series B strategic round on February 2nd. The platform serves as a marketplace for various services, potentially useful for foreign residents seeking local contractors, professionals, or specialized services without Japanese language barriers. Other notable funding announcements included L&F, which completed the first close of its Series A round for its Japan Akiya Support network addressing vacant property management—a growing concern as Japan's housing stock ages. Additionally, 4DIN raised undisclosed funding from Biz Architects for SIMPRESEARCH, a clinical data analysis platform for medical and life sciences research. According to NHK, the broader trend toward "Physical AI"—artificial intelligence that autonomously controls robots and machinery—is accelerating among Japanese manufacturers for factory and disaster response applications. This technological shift may create new employment opportunities for expats with AI and robotics expertise. For foreign entrepreneurs and business professionals in Japan, these funding trends indicate several opportunities: increased availability of Japanese-language business tools with potential English interfaces, growing demand for AI and digital transformation expertise, and expanding platforms that could facilitate business operations without deep local networks. As these startups scale, they may actively recruit international talent or seek partnerships with foreign companies. The concentration of funding in practical business solutions rather than consumer applications suggests investors are betting on Japan's corporate digital transformation—a multi-year trend that shows no signs of slowing and could fundamentally alter how business is conducted across the archipelago.