SusHi Tech Tokyo 2026 will be held at Tokyo Big Sight from April 27 to April 29, 2026.
Named after the initials of “Sustainable High City Tech Tokyo,” SusHi Tech Tokyo is Asia’s largest global innovation conference dedicated to shaping sustainable future cities.
It aims to build sustainable cities powered by high technology and innovators from across the globe.
The event will see startups, investors, major corporations, universities, and other supporters, along with fast-growing companies possessing world-class technologies gather, connect, and collaborate.
Through these encounters and exchanges, this event becomes a platform for generating innovation and new actions that contribute to solving global challenges.
In this article, we speak with key venture capital leaders participating in SusHi Tech, exploring their expectations for this year’s conference and their perspectives on the potential of Japan’s startup ecosystem.
Alumni Ventures recently became the first top-20 U.S. venture capital firm to establish permanent operations in Japan. Michael Phillips, Executive Managing Director for Asia Pacific, discusses the firm’s long-term vision for the region.
On December 24, 2025, Alumni Ventures officially established Alumni Ventures Japan, marking a key milestone in the firm’s global strategy. The move followed extensive research and a clear strategic assessment that Japan has reached a critical inflection point.
Multiple factors shaped this decision, including Sushi Tech Tokyo 2025, which revealed a sophisticated alignment between public policy, corporate engagement, and startup-led innovation.
Leading the expansion is Michael Phillips, who relocated to Japan as Executive Managing Director for Asia Pacific. He states that launching the firm’s new entity is not an experiment but represents a decisive, long-term commitment to the region.
“We are the first top-20 U.S. venture capital firm to make a full-scale entry into the Japanese market,” Phillips says. “We’ve adopted a ‘burn the boats’ philosophy, meaning we’re not retreating. This is just the start of our 10-, 20-, 30-year investment in Japan.”
A Distinctive Co-Investment Model Strengthens Startup Ecosystems
Since its founding in 2014, Alumni Ventures has grown into one of the world’s most active investors—ranked the most active U.S. venture firm in 2022-2023 by PitchBook, and third worldwide.
Alumni Ventures is well known for its focus on democratizing venture capital. Rather than taking board seats and leading investment rounds, the firm specializes in co-investment, typically taking 5 to 10 percent of each round. This approach allows the firm to build an exceptionally large portfolio.
“We are investing in many, many companies—currently over 1,400—as a co-investor, not as a lead investor,” Phillips explains. “This unique model has enabled us to create a very powerful network and the ability to collaborate among portfolio companies, LP, other venture capital firms, and our 12,000 individual investors.”
He emphasizes that the firm’s network and collaborative positioning have proven especially effective in emerging startup ecosystems.
“Through our network, we are able to help portfolio companies connect with the people and opportunities they need to grow.”
Why Japan, Why Now: Converging Forces of Transformation
When Phillips came to Japan to investigate firsthand last year, he realized that a major and far-reaching transformation was underway.
“Traditionally, Japan has always offered attractive fundamentals: a stable government and business environment, technical prowess, strong intellectual property, a large economy, and close ties with the U.S.,” he notes. “But coming to Japan, I found there was a great deal of excitement around the startup ecosystem beyond what I was expecting.”
Phillips identified several key changes that convinced Alumni Ventures to establish its permanent Japan office.
First is proactive public-sector engagement. In addition to the Kishida administration’s Five-Year Plan for Startup Development, METI, JETRO, and the Tokyo Metropolitan Government have studied what works in U.S. venture capital and are applying those lessons with genuine enthusiasm.
Second is sustained corporate commitment. Japan’s large conglomerates have been supportive of venture capital and continue to show a strong desire to invest in startups and contribute to the growth of the ecosystem.
Third is a shift in university systems, with academic institutions actively pursuing commercialization, particularly in deep tech.
Perhaps most transformative is generational change. “One of the most exciting things we’ve seen is younger people really wanting to participate in startups,” Phillips says. “Whereas in the past they might have gone into government or a large corporation, today they are much more willing to take risks.”
He draws parallels to shifts that occurred in the U.S. around 2000. Japan appears to be experiencing a similar transformation, with entrepreneurial ambition replacing traditional career preferences.
Japan’s Strategic Position in Global Expansion
Historically, Alumni Ventures invested primarily in the U.S., with 10-15% of deals coming from outside the country. However, while the U.S. has dominated venture capital, that concentration is eroding as outstanding companies emerge globally.
“More and more strong deals are happening outside the U.S.,” Phillips says. “We want to take a systematic approach to identifying those opportunities.”
With this objective in mind, Japan was selected as the firm’s Asia-Pacific hub.
“One of our core ambitions is to be the most impactful venture capital firm on the planet,” he explains. “We’re creating an interconnected global framework. Having a Japan office is critical to our overall strategy. We can serve not only Japan but the broader Asia-Pacific region from here and gain access to those opportunities.”
Investment Strategy: Early-Stage Focus with Educational Mission
What sets Alumni Ventures apart is its emphasis on investing at the early stages—seed and Series A—where relationships can be built early and additional capital can be deployed as companies grow.
“We are pursuing the same early-stage strategy in Japan,” Phillips says.
The firm seeks companies with global ambitions rather than those focused solely domestically.
“In this market, it is incredibly important to build strong trust and partnerships with founders and stakeholders. We do that through early-stage investments,” Phillips explains. “And then, we introduce companies to U.S. lead investors as they pursue later-stage capital.”
Unusually for Japan, Alumni Ventures expects to play an educational role. The firm sees deep technology innovation emerging from startups and research institutions, but is aware that some teams have not yet reached a stage suitable for venture capital.
“We think there’s a significant education opportunity here,” Phillips notes. “We might see companies that would benefit from learning U.S. venture capital standards before they’re ready for seed capital.”
The firm is prepared to work with promising startups for extended periods before investing, helping them gain capabilities and understanding that will position them for success in global markets.
Phillips also emphasizes that Alumni Ventures views itself as complementary to Japanese venture capital firms. Its co-investment model makes collaboration essential.
“We don’t see it as a competition,” he states. “More people investing will enhance the overall ecosystem.”
Connecting Japanese Innovation to Global Networks
One of Alumni Ventures’ core value propositions is its ability to bridge ecosystems.
“In the U.S., we facilitate connections between our portfolio company CEOs, our individual investors, and our extensive network of strategic advisors,” Phillips says. “For Japan, we want to do that as well—to genuinely bring Japan and the U.S. closer together.”
This two-way connection provides Japanese founders with practical guidance on global expansion—which markets to enter, which legal structures to use, and which advisors to engage. Simultaneously, it gives international investors exposure to Japanese innovation.
“The combined power of both networks will really accelerate the ecosystem’s growth,” Phillips says with confidence.
Key Sectors: Where Global Investors Should Focus
When asked which sectors global investors should pay attention to in Japan, Phillips highlights several priority areas rooted in the country’s unique strengths.
Deep technology remains central. Robotics, precision manufacturing, and energy, in particular, are fields where Japan has world-class expertise.
Demographics represent a paradoxical opportunity. Japan’s aging population is driving innovation in housing, healthcare, mobility, and automation.
“These solutions will eventually become globally relevant as other developed nations face similar challenges,” Phillips notes.
Creative industries offer compelling potential at the intersection of content and technology.
“Anime and manga are extremely popular worldwide,” he observes. “When AI is married with entertainment, there is a huge opportunity—one in which Japan has already played a global role and can continue to do so.”
An Inflection Point Worth Recognizing
Looking ahead, Phillips frames Japan’s current moment not as an emerging market story, but as a structural inflection.
“I think we are at an inflection point for Japan,” he says. “In five or ten years, people will say, ‘Of course investing in Japan in 2026 was the right move—it proved to be an excellent investment.’”
He acknowledges that not everyone recognizes this opportunity and that there is some level of risk. But he believes all the necessary ingredients are in place. Using a culinary metaphor, Phillips explains his view of Japan’s ecosystem development.
“Let’s say we’re trying to bake an ecosystem cake,” he says. “We have the flour, the sugar, and the eggs. Now we just need to mix them together, put it in the oven, and watch it rise. It may fall flat—it’s not without risk—but we believe it’s going to be a delicious cake.”
Phillips envisions exponential rather than linear growth of the Japanese startup ecosystem, driven by the convergence and mutual reinforcement of multiple positive factors.
At Sushi Tech Tokyo 2026, to be held from April 27 to 29 this year, Alumni Ventures will participate not as a prospective entrant but as an active player in the Japanese market.
“We’re excited to give people a chance to learn about venture capital, the Alumni Ventures model and our commitment, and the portfolio companies we’re showcasing, including the products they’re launching,” Phillips says.
For entrepreneurs interested in engaging with the firm, he emphasizes its openness and accessibility.
“Anybody in Japan who’s interested in founding a startup and building a business should reach out to us,” Phillips encourages.
Alumni Ventures is actively expanding its sourcing capacity and welcomes contact from startups, maintaining relationships even when immediate investment is not possible—often leading to investment at later stages or introductions to other investors.
About Michael Phillips
Click here for SusHi Tech Tokyo 2026 event details
