Japan’s Largest Startup Conference, IVS2025: Full Event Report

From July 2 to 4, 2025, Kyoto hosted one of Japan’s largest startup events, IVS2025, with the Kyoto International Exhibition Hall “Miyakomesse” and ROHM Theatre Kyoto serving as the main venues.

Entrepreneurs, investors, and startup leaders from Japan and abroad gathered for the three-day event, featuring booth exhibits and pitch contests from over 340 startups. More than 13,000 attendees filled the city, turning Kyoto into a vibrant hub of startup energy.

The event kicked off with an opening speech from Toshiaki Shimakawa, CEO of IVS Inc., who expressed his strong passion for the conference and his hopes for the future of Japan’s startup ecosystem. Shimakawa declared, “With more than 100 side events happening each day, the entire city of Kyoto becomes IVS.”

He also emphasized the importance of face-to-face interaction, highlighting the value of the energy and ideas generated when diverse people gather in person. He expressed his expectation that such a real-world environment would spark new businesses and collaborations.

Moreover, Shimakawa stressed that the mission of IVS is to empower startups in their bold pursuits and to create new opportunities through serendipitous encounters. This mission, he said, is the driving force behind the company’s continued efforts.

What Does It Take for Japanese Startups to Succeed Globally?

On July 2, 2025, the SEED STAGE at Miyakomesse Kyoto hosted a session exploring how Japanese startups can expand globally. Speakers included Kohei Yamamoto of X&KSK, Reiji Kobayashi of HAKKI AFRICA INC, Fumiko Takahashi of concon Inc., and Takahiro Ishihama of Yay!.

The session opened with moderator Yamamoto posing a simple but fundamental question: "Why did you decide to take on global markets?" The speakers then shared their unique backgrounds and the challenges they aimed to tackle.

Reiji Kobayashi introduced his automotive loan business in Kenya, where financial and logistics infrastructure is still developing. Viewing such markets as areas of great growth potential, HAKKI AFRICA has focused on supporting drivers who lack the resources to purchase their own vehicles, helping them build assets through car ownership. After experimenting with over 150 business ideas and many iterations, Kobayashi settled on car finance as the optimal solution. His local team, predominantly African, has grown to over 75 employees, with only a handful of Japanese staff, built through rapid hiring and trial-and-error to overcome cultural differences.

Fumiko Takahashi, meanwhile, is reimagining the traditional Japanese daruma doll as collectible art toys and fashion items, targeting the $40 billion global art market. Once limited to a ¥1.5 billion domestic niche, the daruma industry is being transformed into a global IP (intellectual property) through modern design collaborations—similar to Bearbrick and Pop Mart.

Takahiro Ishihama runs Yay!, an anonymous social network with around 10 million users. He is working to build a business model within the cryptocurrency economy, exploring token issuance and participation in the global financial ecosystem. Ishihama emphasized the need for startups to think beyond the Japanese yen and instead measure growth in digital assets like Bitcoin and Ethereum, which are rapidly gaining prominence amid global economic shifts.

What united all speakers was a common perspective: expanding overseas isn’t an obstacle but a natural growth opportunity. Despite the cultural and regulatory hurdles of global markets, they see these challenges as pathways to proving Japan’s value on the world stage—whether through technology, culture, or financial innovation.

Japan’s Tech Innovation Policy: The Frontlines of AI and Web3 Regulation

In another session, government officials and legal experts discussed Japan's evolving tech policies in AI and Web3—topics that are now central to business strategy and investment decisions.

Speakers included Hideto Kawasaki (Vice Minister of Internal Affairs and Communications), Akihisa Shiozaki (House of Representatives), and attorneys Ken Kawai, Keiji Tonomura, and Masafumi Masuda. Topics ranged from Japan's AI Promotion Act to cryptocurrency regulations and Japan's role in shaping global standards.

A major highlight was the shift in crypto regulation. Japan is moving to regulate crypto assets under the Financial Instruments and Exchange Act (FIEA), extending disclosure and insider trading rules similar to those for stocks and bonds. This shift aims to strengthen investor protection and reduce the tax burden, with capital gains on crypto investments potentially being taxed at a flat 20%, like securities.

The newly passed AI Promotion Act (June 2025) was also discussed. According to Tonomura, the law is designed as a “basic framework” where the government, rather than individual businesses, takes the lead in risk assessment and information gathering—easing the compliance burden for companies.

Shiozaki emphasized that even without leading technical capabilities, Japanese startups could gain an edge by rapidly launching services built on open-source foundation models. He also outlined government plans to expand AI infrastructure and data centers across regional cities in Japan.

The session further explored how blockchain-enabled data democratization could fuel AI development, as well as the emerging legal challenges around copyright and insider trading in the data age.

All speakers agreed: the key to innovation isn’t the absence of regulation, but creating an environment where companies can innovate with confidence, knowing the rules.

Can AI Deliver Unbiased Decision-Making?

A separate session tackled the evolving role of AI in human decision-making—from performance evaluations to strategic choices—and how to balance fairness, speed, and transparency.

Leaders from Panasonic Connect, LY Corporation (LINE Yahoo), and startup SpiralAI shared insights from the front lines of AI deployment in both corporate and startup environments.

Panasonic Connect’s Yamaguchi described how the company opened generative AI tools to all employees in 2023 to drive organizational transformation, emphasizing that AI should complement human judgment, not replace it.

Yamauchi from LY Corporation shared how his team developed bias correction techniques in 360-degree performance reviews, using AI and statistical methods to neutralize unconscious human biases and make evaluations fairer.

In contrast, SpiralAI’s Sasaki argued that human individuality—or bias—is itself a source of value. His company designs character AI in gaming and entertainment to be intentionally biased, creating unique and emotionally engaging personalities. Sasaki cited Doraemon as a model for friendly, relatable AI.

Speakers also acknowledged concerns about AI becoming a black box, obscuring accountability. Panasonic Connect emphasized maintaining transparent, data-driven decisions, always keeping humans in the loop. Yamauchi added that AI could also help visualize latent organizational biases, such as seniority-based pay systems, driving cultural change within companies.

SpiralAI’s work on character AI highlights a different approach: designing biases intentionally to create emotional resonance and user trust. The goal is not just technical accuracy, but creating AI that people love and trust.

The session closed with a consensus: the purpose of AI adoption is not to use AI for its own sake but to create meaningful, uniquely Japanese value in the world. For Japan's startups and enterprises, the challenge lies in leveraging AI to create new business models and social value.

On the second day of IVS2025 Kyoto, Japan's largest startup pitch contest, IVS2025 LAUNCHPAD, took center stage. Set against Kyoto’s rich blend of tradition and innovation, 15 startups—selected from over 350 applicants (including about 15% from overseas)—delivered passionate six-minute pitches.

The “Startup Kyoto International Award,” offering up to a prize of ¥10 million (approx. $65,000) in funding from Kyoto Prefecture, was presented to the winner. Additionally, a new “Investor Z Award,” chosen by renowned manga artist Norifusa Mita, was introduced this year.

Grand Prize: Advance Composite Co., Ltd. (Akiyoshi)

A deep-tech company developing advanced lightweight materials using its proprietary molten forging technology, Advance Composite took home the top prize. Their materials are already contributing to energy savings in HVAC systems and beyond.

CEO Akiyoshi captivated the audience wearing an oversized mask, performing live demonstrations with a weighing scale and an interactive quiz, blending humor with cutting-edge technology. The judges praised both the technical innovation and the social impact of the company’s work. Advance Composite has already secured investments from major players like Daikin Industries and Shin-Etsu Chemical, positioning it for further growth.

Second Place: Tenchijin Inc. (Yasuhito Sakuraba)

Tenchijin, which analyzes satellite data to diagnose water pipe leakage risks, won second place. Their “Space Waterworks” service drastically reduces infrastructure inspection times from 12 years to just one year and improves leak detection efficiency.

With over 40 Japanese municipalities already using the technology, the company has become a symbol of infrastructure digital transformation (DX), addressing social issues while expanding globally.

Third Place: Creator’s X Inc. (Shunsuke Fujiwara)

Aiming to modernize the anime industry, Creator’s X is streamlining animation production through AI and strategic M&A. They automate processes like coloring and background art and are building a next-generation anime studio ecosystem—what they call the "Next Toei Animation."

In just a few months since founding, the company has acquired two studios, grown to 70 employees, and reached ¥800 million in annual sales. Their bold approach to tackling the industry's deep-rooted inefficiencies won strong praise.

Audience Choice Award: Snack Technologies Inc. (Yuzo Sekiya)

Snack Technologies, which aims to digitize Japan’s unique “snack bar” culture, won the popular vote from attendees. Their app visualizes pricing and atmosphere of snack bars, improving the customer experience through transparency and convenience. With pilot programs underway in Tokyo’s Akasaka district, they are creating a new market that blends nostalgic culture with modern tech.

Investor Z Award: CGO Dotcom LLC (Bubbly)

Selected by Norifusa Mita, CGO Dotcom won the inaugural Investor Z Award for its corporate training program “Gyaru-Style Brainstorming®.” This workshop energizes meetings with intuitive, uninhibited ideas inspired by gyaru youth culture, fostering innovation and organizational change in large corporations.

The company’s bold effort to elevate gyaru culture from a fleeting trend to a meaningful business practice stood out. A spin-off manga based on the Investor Z series featuring their work is already in the works.

This year’s LAUNCHPAD featured a wide array of startups tackling social issues across sectors such as AI, advanced materials, space infrastructure, legacy industry DX, and even pop culture.

Judges praised the emotional and original presentations, noting how each team addressed problems from unique perspectives. The competition showcased the diversity and vitality of Japan’s next-generation startups, boldly stepping onto the global stage.

Do AI Agents Need a Personality? — Friends or Butlers?

On the afternoon of the final day, a thought-provoking panel discussion titled “Do AI Agents Need a Personality? — Friends or Butlers?” explored the evolving relationship between humans and autonomous AI agents.

The speakers included Takayuki Moriya, CEO of Aww Inc., creator of the virtual human “imma”; Yuki Ishikawa, CEO of Jizai, a company developing general-purpose AI robots; and Kensuke Ozawa, CCO of Cynthialy, an AI solutions provider.

The discussion focused on the design of human-AI relationships—not just the functionality of AI, but whether AI agents should be designed as friends who emotionally engage users or as butlers who quietly support human tasks.

The panelists discussed how today’s AI agents, fueled by generative AI advancements, possess high intelligence, but the emotional aspects of user experience—such as personality and empathy—play a crucial role in adoption.

Ishikawa emphasized that giving AI characters and emotional attachment significantly boosts user engagement and is key to mass adoption. He also highlighted how Japan’s polytheistic culture, which naturally accepts emotional attachment to inanimate objects, creates fertile ground for developing AI with personalities—whether as entertainment characters or household robots.

How Can Japan Win the Global AI Race? — Strategy Through Policy and Technology

The closing session of Day 3, titled “How Can Japan Win the Global AI Race? — Strategy Through Policy and Technology,” featured Masaaki Taira, Japan’s Minister for Digital Affairs, and Yutaka Matsuo, a professor at the University of Tokyo’s Graduate School of Engineering. The discussion was moderated by Ayana Kizaki, a journalist at NewsPicks.

Reflecting on discussions from IVS2024, the speakers examined progress over the past year, current challenges, and future directions.

Taira opened by comparing global regulatory trends. While the EU adopts comprehensive GDPR-style regulations and the U.S. leans toward deregulation, Japan has established a more flexible framework: freedom in AI training but regulation of outputs, supported by the Cultural Affairs Agency and the AI Strategy Headquarters (AIPT). He also pointed out that Japan’s aging and shrinking population means that the country faces fewer risks of AI-induced job losses, contributing to broader social acceptance of AI.

He highlighted government-led efforts to implement AI, including the introduction of “government AI” tools for administrative support, and expanding AI use to local governments through initiatives like the Government Cloud and Digital Marketplace. These efforts aim to create a public-sector model for AI adoption that the private sector can follow.

On the other hand, Matsuo expressed concern that, despite policy progress, Japanese corporations—especially large enterprises—are lagging behind in AI adoption. He noted that Japan’s AI investments are still just 1/100th the scale of U.S. and Chinese tech giants. To address this, Matsuo announced plans to launch a training program this fall focused on improving companies’ ability to commission and manage AI projects effectively, fostering better collaboration with startups and vendors.

Taira also discussed foundational areas of Japan’s AI strategy: cybersecurity, energy, and data utilization. As Cybersecurity Minister, he is advancing legislation to block malicious traffic, neutralize botnets, and legalize takedown measures against foreign servers—efforts aimed at positioning Japan as a trusted technology leader.

He also introduced initiatives like the “Watt-Bit Alliance,” which integrates power infrastructure and data centers, and new legal frameworks to promote sector-specific data utilization.

Matsuo argued that, while the U.S. and Europe are pursuing large-scale, general-purpose AI models (AGI), Japan should focus on decentralized, domain-specific AI—“small AI”—tailored to social and cultural needs. This approach, he believes, fits Japan’s unique societal structure and can become a globally distinctive model.

He also stressed the importance of nurturing AI talent and supporting practical implementation in emerging markets like ASEAN and Africa, contributing to the formation of a Japan-led AI economic zone.

The session concluded with a call to ensure that Japan’s AI policies remain sustainable beyond political cycles. Taira emphasized the need to enshrine these efforts in legislation, while Matsuo remarked, “We’ve finally reached the global starting line—this is where the real competition begins.”

From July 2 to 4, 2025, the entire city of Kyoto became the stage for IVS2025, one of Japan’s largest startup conferences, shining a global spotlight on the cutting edge of innovation from Japan.

Entrepreneurs, investors, policymakers, and tech industry leaders gathered to discuss and challenge the theme of "How Japan Can Compete on the Global Stage." Across three days, a wide range of stakeholders engaged in conversations that transcended industries and sectors.

On Day 2, the LAUNCHPAD pitch contest featured startups tackling diverse fields—from advanced materials and space infrastructure to anime production, legacy industry digital transformation, and even gyaru (youth subculture) culture. These startups didn’t just showcase their technologies—they captivated judges and audiences with their solutions to social issues, cultural uniqueness, and bold creativity. The winning startup, Advance Composite, led by Akiyoshi, embodied Japan’s manufacturing spirit with a mission to transform the world through innovative materials.

Throughout the event, a clear message resonated: Japan’s startups are not merely pursuing technical excellence—they are driven by a passion to solve social problems and leverage cultural identity as a competitive edge on the global stage. Innovators across policy, technology, business, and culture came together, breaking free from conventional frameworks to envision the industries and societies of the future.

IVS2025 was more than just a conference—it was a snapshot of a Japan in motion, daring to challenge itself. The seeds of ambition planted here will one day grow into the next unicorns and global leaders.

Image:IVS2025,Iolite

Official website：IVS

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