By Jerry Zhang
Toronto Metropolitan University’s (TMU) DMZ, a leading Canadian startup incubator, has officially expanded to Japan with the launch of DMZ Japan in Tokyo’s Minato Ward on Feb. 25, marking a major milestone in fostering cross-border entrepreneurship.
The initiative, which received funding from the Tokyo Metropolitan Government, aims to bridge the Canadian and Japanese startup ecosystems by providing mentorship, resources and opportunities for ventures in both countries, according to head of DMZ Japan Yumiko Namiki.
“[We have] been working with Japanese entities and partners since around 2020 and we formed a lot of the partnerships, and then we got huge funding from [the] Tokyo government last September, and that required us to have a Japanese entity,” said Namiki.
Namiki explained DMZ Japan was selected as a key player in the Tokyo SUTEAM initiative, a government-backed program aimed at scaling Tokyo’s startup economy by 2027. Additionally, DMZ Japan’s partnership with the Japan External Trade Organization’s (JETRO) Global Acceleration Hub—a government-affiliated body supporting foreign startups—will help facilitate market entry for Japanese startups expanding into Canada.
“The Global Acceleration Hub program is designed to help Japanese founders explore foreign markets, including Canada,” Namiki explained. “DMZ is the first incubator partner in Canada for that program… [it] will be the on-the-ground partner to support those Japanese companies to tap into the Canadian market.”
She said that Canadian startups can also take advantage of DMZ Japan’s “soft landing” support —services designed to help businesses smoothly navigate logistical challenges. This includes aid with understanding local business regulations and establishing a subsidiary in Tokyo or Canada, offered with support from the Embassy of Canada in Tokyo.
Namiki explained that DMZ Japan is helping a Canadian startup from DMZ Toronto set up its physical presence in Japan. The team is currently in discussions to support the company with incorporation, securing office space, connecting with accountants and other essential services. She emphasized that DMZ Japan offers comprehensive guidance for both Japanese and Canadian entrepreneurs looking to expand internationally.
The Tokyo Metropolitan Government is also offering financial support for Japanese startups participating in DMZ Japan’s programs to expand to Canada. “We fund Japanese startups to travel to Canada through Tokyo Metropolitan Government funding,” said Namiki.
Despite Japan’s strong reputation in technology, robotics and manufacturing, its startup ecosystem lags behind North America and Europe, according to Dr. James Tiessen, associate professor at TMU’s Ted Rogers School of Management. Tiessen sees an opportunity for Canada to contribute to Japan’s push for innovation.
“They’re very reliable trading partners,” said Tiessen. “Canadians have traditionally been suppliers of [many] resources to Japan’s market. There’s been efforts over decades to try to diversify that.”
Tiessen, who has previously worked with JETRO, explained that Japan’s government recognizes the need for increased entrepreneurship to sustain economic growth amid an aging population and shrinking workforce.
“Japan knows that they have to sustain their lifestyle, they have to be more innovative and more productive,” said Tiessen. “So that smaller workforces can generate enough wealth and [productivity] to take care of, to sustain this aging population and to provide a workforce for them.”
According to Namiki, DMZ Japan has launched three flagship programs, key initiatives that best represent the incubator’s core objectives. One of them is Launchpad for Entrepreneurs, an online learning program providing foundational business knowledge to early-stage entrepreneurs to scale their business.
Another one of the programs, Launchpad for Women is a specialized version dedicated to empowering female founders in Japan by addressing key challenges such as limited access to funding and societal barriers for women in Asia. The initiative offers mentorship, networking opportunities and tailored support to help women succeed in the business landscape.
Additionally, Basecamp is a two-month hybrid program primarily conducted online and complemented by a two-week in-person immersion in Toronto. Participants can gain hands-on experience in Canada’s startup ecosystem and build global connections.
Namiki emphasized Launchpad for Women tackles the challenges faced by women entrepreneurs in Japan and across Asia. She noted that women in Asia often experience reduced confidence in pursuing entrepreneurial ventures and she hopes to “encourage them to step forward.”
Mays Osman, a second-year marketing student at TMU, highlighted the broader social impact of empowering women entrepreneurs. She believes that increasing the representation of successful women in business can inspire younger generations.
“When supporting women in business to help them succeed—that’s going to mean more women in the front pages, in the press, and there’s going to be more representation,” she said. “It will help young girls see them as role models and actually be inspired to have their own business and so on. So it leads to growth.”
Japan ranks at 118 of 146 countries in the 2024 Global Gender Gap Report by The World Economic Forum, lagging behind more developed economies such as Latvia and Iceland. Women’s labour-force participation had risen up 76.8 per cent, they hold just 17.1 per cent of senior leadership roles.
Cultural expectations, rigid corporate structures and traditional gender roles continue to reinforce inequality and limit women’s career advancement despite 96.9 per cent of the Japanese population being post-secondary-educated, according to the report.
Namiki echoed this sentiment, noting that in Japan, women often step back from their careers after getting married or having children. She also explained how societal expectations frequently prevent women from openly pursuing career advancements and professional goals despite their own desires.
To address these barriers, Namiki aims to build a supportive community within DMZ Japan for women entrepreneurs through peer-to-peer sessions, interactive workshops and a self-paced online learning platform. “We want to build a community for those like-minded women to connect…so that women feel more like this is [a] community and they have people to support each other.”
Fourth-year business technology management student Ina Cho expressed that such programs are essential for shifting gender dynamics in business. “It encourages empowerment… since we do see that it’s more of a male-dominant field and not a lot of people—especially women—see that as an opportunity,” she said.
Tiessen noted that Japan’s corporate culture and demand for precision create both opportunities and challenges for Canadian startups looking to expand.
He commented that Japan is a great “testing ground” for expansion. “If you can make a business work in Japan, or cooperate with them to make a business work in Japan, you can sell anywhere in the world because they’re so good.”
Cho highlighted Japan’s particular strength in technology as an attractive factor for Canadian startups.
“Japan is more focused on the tech-heavy niche,” she said, noting this specialization presents valuable opportunities for Canadian ventures.
She also emphasized the broader global impacts of DMZ Japan’s initiatives. “It also bridges a gap between not just Asian countries and North American countries but also across the world as well.”
Osman said strong financial backing is essential for a startup’s success, particularly highlighting the significance of sufficient capital and stable income. “ I think as a startup, you have more cash flow out than in. So funding opportunities [are] the most vital.”
Namiki highlighted that the DMZ Toronto headquarters already excels in business-to-business (B2B) software, which streamlines operations, manages data and enhances efficiency. She added that DMZ Japan would leverage these strengths and the extensive network already established by DMZ headquarters to support startups entering the Japanese market.
Tiessen echoed Namiki’s optimism, highlighting that Japan’s ongoing push for digital transformation presents a unique opportunity for Canadian startups to leverage their expertise in the digital economy.
He added that Japan’s government has made digital transformation a priority, recognizing the need to catch up. He explained. “We are actually on the good side of that, and I think we could help Japan [with] a little bit of the opportunities presented by further digitalization.”
Namiki highlighted Drizti Inc., a DMZ-supported startup aiming to establish a presence in Tokyo and specializing in software that streams supercomputer-level technology to various types of devices. She emphasized that solutions like these are well-positioned to succeed in Japan as they face fewer language barriers compared to consumer-facing products.
In addition to supporting startups, DMZ Japan is also developing university partnerships and corporate collaborations. One is being developed in discussions with Chiba University to create student exchange programs and research collaborations between both.
DMZ Japan is also pursuing initiatives with local governments across Japan, including Yokohama, Nagoya, Osaka, Sendai and Hokkaido, aiming to further strengthen academic ties and foster regional innovation.
In the coming years, Namiki outlined two key performance indicators, including generating revenue for DMZ to support startup programs in both Japan and Canada as well as tracking the number of Canadian and Japanese startups enrolling and successfully establishing a presence in each other’s market.
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