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When it comes to expanding your business into Asia, one name that should top your list is Yokohama. Known as Japan’s second-largest city, Yokohama seamlessly blends rich historical significance with cutting-edge innovation, offering startups and businesses a perfect launchpad for success in the Asian market.
Contributors: Andy Chiang (Foreign Founders); Masahiro Nishikawa and Nikolai Muth (Office of the City of Yokohama Representative to the Americas)
Why Yokohama is a Game-Changer for Businesses
Strategic Location Situated just south of Tokyo, Yokohama is central to Japan’s bustling economic ecosystem. This proximity to Tokyo allows businesses in Yokohama to tap into the capital’s resources while benefiting from up to 40% reduction in office rental costs. A mere half-hour train ride separates the two cities, giving businesses the best of both worlds—access to a world-class economic hub without the exorbitant overhead.
Diverse and Thriving Industries Yokohama stands as a beacon for a variety of industries. Key sectors include:
- Automotive: Home to Nissan’s headquarters and other automotive giants, the city plays a vital role in the global auto industry.
- Clean Tech: Yokohama is a leader in sustainability, hosting numerous initiatives to advance decarbonization and promote green technologies.
- Life Sciences and Advanced Manufacturing: With companies like Fujifilm and Hitachi setting up their R&D centers, Yokohama fosters cutting-edge innovations.
- IT and Gaming: DeNA, a mobile gaming powerhouse, and other tech firms have found a home in Yokohama’s burgeoning startup ecosystem.
This diverse industrial base ensures that startups entering the market can find partners, collaborators, and clients across a wide spectrum of fields.
A Hub for Innovation
Yokohama has positioned itself as an innovation powerhouse. The newly established Tech Hub Yokohama (pictured) epitomizes this commitment. This state-of-the-art facility acts as a bridge between startups and major corporations, enabling collaborations that foster technological advancements. Startups focusing on mobility, clean tech, and advanced technologies find an environment primed for growth and innovation.
In addition, Yokohama is home to Yokohama Future Organization, a collaborative innovation platform that brings together startups, corporations, academia, and local government to co-create solutions for modern challenges. Yokohama Future Organization and the City provide support through coworking spaces, networking events, and access to venture capital, ensuring startups have the tools and connections they need to succeed.
Practical Resources for Foreign Founders
Yokohama doesn’t just offer a welcoming environment for businesses; it provides practical resources to help foreign founders succeed. The city’s international offices—located in New York, Frankfurt, Shanghai, and Bangkok—are invaluable for navigating the complexities of expanding into Japan. These offices can:
- Assist with business registration and licensing requirements.
- Provide access to English-language resources and translation services.
- Connect founders with local partners, advisors, and potential clients.
- Share information about tax incentives, grants, and other financial support available to international businesses.
Moreover, Yokohama’s startup visa project is a game-changer for entrepreneurs, streamlining the process of obtaining residency and establishing a business in Japan. Founders can also access coworking spaces and mentorship programs tailored to startups, ensuring they have a solid foundation for growth.
Affordable and Accessible
Cost is a significant factor for businesses, especially startups. Yokohama’s affordability is a major draw, offering office space at a fraction of Tokyo’s costs. Moreover, with the current strength of the US dollar against the Japanese yen, businesses from the United States can stretch their budgets even further when setting up operations in the city.
Globally Connected
One of Yokohama’s standout features is its international outreach. The city maintains offices in New York, Frankfurt, Shanghai, and Bangkok to facilitate global business connections. These offices provide invaluable resources for foreign businesses, including guidance on navigating Japanese regulations, connecting with local partners, and understanding market opportunities. (Picture below is from the new Ecosystem Support 360 podcast with the New York Office members of the City of Yokohama)
Embracing Yokohama’s Vision
Yokohama’s historical spirit of entrepreneurship and openness to new ideas remains at the heart of its modern identity. For over 160 years, the city has welcomed diverse people and ideas, transforming from a small village into an international hub of innovation and commerce.
Whether you’re a clean tech startup aiming to revolutionize sustainability or a tech firm looking to scale your operations, Yokohama can provide the infrastructure, support, and community you need to thrive.
Take the Next Step
Expanding into a new market is always a challenge, but Yokohama makes it easier with its resources and programs tailored to international businesses. Contact the Yokohama New York office today to explore how this dynamic city can help your business achieve its goals. For other inquiries including foreign market entry support or marketing/branding support, contact either ShibuLA Ventures or Foreign Founders Podcast.
From its strategic location and affordable office space to its vibrant innovation ecosystem, Yokohama stands ready to support the next generation of global businesses. Will yours be among them?
Contact information:
- Office of the City of Yokohama Representative to the Americas: info@businessyokohama.com
- Foreign Founders Podcast: foreignfounderspod@gmail.com
- ShibuLA Ventures: contact@shibulavc.com