Japan’s fintech industry attracted $10 million in funding across 19 transactions in the second quarter of 2026, marking a significant decline from the $35 million raised through 21 deals in the previous quarter.
According to CB Insights’ State of Fintech report, funding dropped 71.4% quarter-on-quarter and 63% compared with the $27 million recorded in the second quarter of 2025. The number of transactions also decreased from 26 deals during the same period last year.
The latest figures highlight a continued slowdown in investment activity following a substantial funding surge in the fourth quarter of 2024, when Japanese fintech companies secured $1.16 billion across 28 transactions.
Investment subsequently dropped to $27 million in the first quarter of 2025 before recovering to $41 million in the second quarter and $148 million in the third quarter. Funding then declined to $37 million in the final quarter of 2025.
Transaction volumes have also weakened considerably over the years, falling from 41 deals in the first quarter of 2022 to just 19 in the second quarter of 2026.
Despite the overall decline in investment, early-stage companies continued to account for a significant proportion of Japan’s fintech transactions.
CB Insights reported that early-stage investments represented 35% of deals during the first half of 2026, while late-stage transactions accounted for 38%. Mid-stage investments made up 20%, with other categories representing the remaining 8%. Figures may not add up to 100% due to rounding.
The composition of deals has shifted compared with previous years. Early-stage investments accounted for 56% of transactions in 2025 and 49% in 2024, before declining to 35% in the first half of 2026. In contrast, the share of late-stage deals increased from 19% in 2025 to 38% during the first half of this year.
Mid-stage transactions also gained ground, rising from 16% in 2025 to 20% in the first half of 2026, suggesting a greater concentration of investment activity among more established fintech businesses.
Among the equity funding rounds disclosed during the second quarter of 2026, Tokenz secured $6 million through a Series A round on June 2. Its investors included Headline, NEA, Cherubic Ventures, Coral Capital and Global Brain.
JPYC raised $3 million in a Series B funding round on May 22, with participation from Meiji Yasuda Life Insurance Company, Awagin Capital, Iyogin Capital and Life Design Fund.
Other fintech companies that attracted investment during the quarter included Better Place, which completed a Series D funding round on April 2 with backing from Kyoshin Social Capital.
Porty secured seed-stage venture capital investment from Mizuho Capital on April 14, while Verfa completed a seed funding round on April 16 with support from Genesia Ventures.
CB Insights did not disclose the investment amounts for Better Place, Porty and Verfa.
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