Key takeaways from the Tokyo Women in VC Report 2024

Tokyo Women in VC have published an English translation of their “Japan Venture Ecosystem: Female VCs & Female Founders Report 2024”. Here is what you need to know.

Progress & Challenges for Female VCs

• Positive Trend: The representation of female VCs in Japan is steadily growing, increasing from 10.2% in 2020 to 15.6% in 2023. Female decision-makers also rose from 2.4% to 7.4% during the same period.
• Growth Drivers: This growth is primarily fueled by women launching new VC funds.
• Challenges Remain: Female VCs still face challenges: limited inclusivity in events and networking opportunities; lack of clear career paths to leadership positions; VC culture often favors traits traditionally associated with masculinity; difficulty accessing top deals due to gender imbalance among entrepreneurs.
• Impact of Female VCs: Studies show VCs with female decision-makers experience better fund performance and are more likely to invest in female entrepreneurs.

Female Founders in Japan

• Motivations: Female founders are primarily driven by societal impact and realizing their vision, rather than solely financial success.
• IPO vs. M&A: Female-led startups are less likely to pursue IPO compared to their male counterparts.
• Challenges: Female founders face challenges in fundraising, business growth strategy, and marketing & sales.
• Support Needed: Access to fundraising support, mentorship, and training are crucial for their success.

Recommendations:

• Increase Transparency: Improve access to information about VC job openings to encourage more women to apply.
• Promote Inclusivity: Cultivate a more inclusive VC environment that values diverse perspectives and leadership styles.
• Support Female Founders: Provide targeted support and resources to address the unique challenges faced by women entrepreneurs.
• Concrete Actions, Not Just Words: Move beyond discussions and implement concrete actions to promote diversity in funding and sourcing.

Overall: The report highlights the positive trend of increasing female representation in Japan’s VC landscape. However, significant challenges remain, requiring consistent efforts and concrete actions to achieve true gender balance and reap the benefits of diversity in the ecosystem.

Please follow us to read more about Finance & FinTech in Japan, like hundreds of readers do every day. We invite you to also register for our short weekly digest, the “Japan FinTech Observer”, on Medium or on LinkedIn. Our global Finance & FinTech Podcast, “eXponential Finance” is also available through its own LinkedIn newsletter, or via our Podcast Page.

Should you live in Tokyo, or just pass through, please also join our meetup. In any case, our YouTube channel and LinkedIn page are there for you as well.