Japanese business leaders, investors and government representatives have identified significant commercial opportunities for UK startups in Japan, with a particular focus on deep technology collaboration, at an event hosted this month in London by the international business development consultancy Intralink.
Japanese Interest in UK Startups
The “UK x Japan Deeptech Business Connect” event brought together more than 70 representatives from Japanese corporations, UK deeptech startups, investment firms and government organisations. Speaking on a panel examining how UK-Japanese collaboration is evolving, Atsushi Nishikawa, Managing Director and Head of Japanese Corporate Banking Division for EMEA at Mitsubishi UFJ Financial Group (MUFG) – one of Japan’s largest banking institutions – highlighted the close fit between UK startups and Japanese corporates. He noted that UK companies can often offer Japanese businesses advanced, commercially viable technologies even at an early stage of growth.
“The UK is a highly attractive market, underpinned by world-class universities and research institutions,” Nishikawa said. “Japanese companies often look first to the US when exploring startup collaboration, but the UK offers many promising partnership and investment opportunities.” He also pointed to growing interest from UK companies in Japan, not only as a market for collaboration but as a strategic launchpad for wider expansion across Asia. MUFG supports this ecosystem through its corporate venture capital arm, MUFG Innovation Partners, which invests strategically in innovative startups and promotes open innovation.
Fellow panellist Jessica Reilly, Incoming Head of Trade at the British Embassy Tokyo, underscored the strength of the wider UK-Japan economic relationship. Bilateral trade, she said, has reached around £33 billion. More recent official trade data shows that total trade in goods and services stood at £34.6 billion in the four quarters to the end of Q4 2025, an increase of 2.9% from the previous year. UK exports to Japan were £16.3 billion, while imports from Japan were £18.2 billion, resulting in a trade deficit of £1.9 billion for the UK. Japanese investment in the UK is also substantial: according to official figures, the inward stock of foreign direct investment from Japan was £92.0 billion in 2021, while the outward stock of UK FDI in Japan stood at £3.1 billion.
Collaboration Opportunities
The event gave greatest emphasis to explaining the specific benefits UK startups offer Japanese corporations. Reilly noted significant untapped opportunities for UK companies entering the Japanese market and encouraged greater use of bilateral support schemes in areas including artificial intelligence, quantum technologies and nuclear energy. The UK-Japan relationship is underpinned by the Comprehensive Economic Partnership Agreement (CEPA), which came into force on 1 January 2021, and the UK’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) on 15 December 2024, both designed to further facilitate trade and investment. The 2023 Hiroshima Accord also commits both nations to deepening science and technology ties.
Graham O’Keeffe of Amadeus Capital Partners, a global technology investor focused on deep tech sectors such as AI, cybersecurity, digital health and quantum technologies, said structural funding gaps in the UK scale-up market create an opportunity for Japanese companies to play a broader strategic role. “Not only as investors, but as commercial and technology partners that can help businesses scale,” he said. “For Japanese companies looking to engage with UK startups, the VC ecosystem is a highly effective place to start. VC portfolios offer efficient access to high-potential businesses.” Amadeus has also partnered with UTEC (University of Tokyo Edge Capital Partners) on the “AUGMENT” initiative to accelerate the globalisation of deep tech companies.
The UK deep tech ecosystem is valued at $155 billion, with over 50 firms achieving unicorn status or $100 million in revenue, and the UK ranks third globally for venture capital investment in deep tech startups since 2019, attracting $43.7 billion. Japanese capital is increasingly flowing into Europe’s deep tech sector: since 2019, Japan-linked capital has invested more than €33 billion into European tech, with the UK attracting the largest share at €14.9 billion. Deep tech and AI startups are particularly attractive, representing 70% of deals with Japanese participation in 2024. Japanese corporates bring critical industrial expertise to scale manufacturing projects, a capability that has historically been a challenge for Europe.
Key sectors for collaboration highlighted at the event and in broader UK-Japan partnerships include AI and quantum technologies, where joint funding for quantum projects aims to speed up drug discovery, secure data and improve navigation; advanced technology and digital transformation; decarbonisation and clean energy; life sciences, including partnerships for gene therapy and rare disease genomics; space technology; semiconductors, where business dialogues and matching events are supported; and connectivity technologies, with a £6 million UK-Japan research programme exploring advanced connectivity for seamless mobile coverage and stronger digital infrastructure. Institutions such as JETRO (Japan External Trade Organization) London actively promote business collaboration between Japanese and UK companies, focusing on digital, net zero and healthcare, and also support UK startups seeking entry into the Japanese market.
Event Outcomes
The panel discussion was followed by one-to-one meetings and networking sessions between the participating UK startups, investors and Japanese corporates, aimed at strengthening innovation ties between the UK and Japan.
Flow Collingwood, co-founder and CEO of spacetech startup Pan Galactic, which develops quantum-safe operating systems for space data infrastructure and has been selected for the Seraphim Space Incubator Mission 15, said: “This event was a fantastic opportunity to accelerate growth in our business, as understanding the business and cultural landscape is crucial to success in new markets. The panellists explained the nuances and recommended key approaches to working with Japanese corporates. We left with several follow up actions and are already exploring new relationships.”
Intralink CEO Greg Sutch said: “Japan is home to many globally important companies with industrial expertise, while UK startups offer strong capabilities in deeptech, especially in areas such as advanced technology, digital transformation and decarbonisation. Bringing these strengths together creates real potential for growth, partnership and innovation and we’re committed to helping turn this into commercial success.” Intralink, which specialises in helping companies secure customers, partners and investors in overseas markets, has a presence in 27 locations including Silicon Valley, Boston, London, Tokyo, Shanghai, Taipei, Bangkok and New Delhi, and has a 35-year track record in international expansion support.
