In May 2026, METI released its Startup M&A Guidance, aimed at accelerating mergers and acquisitions as a viable growth and exit route for Japanese startups. The document lays out considerations for both selling startups and acquiring companies, addressing a market long dominated by IPOs.
The timing is pointed: startup IPOs fell to a decade low in 2025, leaving founders and investors with few liquidity options. By codifying M&A best practices, the government is trying to develop a deeper acquisition market.
The guidance accompanies a broader “Startup Total Creation Package” advanced by the Cabinet Secretariat on May 20, 2026, and strengthened growth-capital supply from the Development Bank of Japan and the Japan Investment Corporation.
For overseas strategics and funds, the move signals Japan is actively building the buy-side infrastructure that cross-border acquirers need.