Venture financing investments in the software segment are receiving the highest attention in the Japanese enterprise market, says market research company GlobalData.
In 2017, venture financing (VF) investments in the software segment constituted 46 percent of the total deal value in the Japanese enterprise market, according to GlobalData, a leading data and analytics company. On the other hand, 38 percent of the total number of VF deals in the country was in the software segment.
According to Maruti Patnaik, analyst at GlobalData, “VF investments in the software segment is largely in the customer relationship management (CRM) domain, as enterprises’ ICT investments are driven by the objective of increasing efficiency at their customer service end-points owing to the highly competitive Japanese enterprise market.”
VF investments in the IT service segment constitute 38 percent of the total deal value in 2017. The IT service segment investments are primarily focused on consumer facing enterprises, such as online lending, social networking, online media publishing, e-commerce and online dating, among others. As Japanese technological advancements are on the forefront of global market, VF companies are investing in Japanese technology enterprises in order to expand their operations and achieve business growth.
Patnaik says, “Apart from the traditional segments of software, hardware and IT services, venture capitalist are investing in mobility-based financial smartphone applications and mobile communication application companies in Japan.”
Image courtesy of GlobalData
In addition, venture financing companies are also funding Japanese start-ups engaged in wearables and smart products domain, as they have the potential to disrupt the market dynamics. Going forward, venture capitalists are going to target mobile technology start-ups that are developing consumer oriented applications for real-world use.
This report was built using data and information sourced from proprietary databases, primary and secondary research, and in-house analysis conducted by GlobalData’s team of industry experts.
GlobalData is a market research consultant based in London, UK. Thanks to GlobalData’s unique data, expert analysis and innovative solutions, 4000 of the world’s largest companies, including over 70 percent of FTSE 100 and 60 percent of Fortune 100 companies make more timely and better business decisions. GlobalData’s mission is to help its clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, financial, technology and professional services sectors.
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