Japan's startup investments soared about 150% in the last five years as companies seek innovative technologies and create specialized funds to zero in on specific fields like artificial intelligence. 

Domestic investment in startups grew 16% last fiscal year to $1.16 billion, according to a survey on 106 venture capital and corporate venture capital firms released on July by Venture Enterprise Center. It is the first time the figure has topped 120 billion yen since the survey began in fiscal 2011. The result is likely on par with fiscal 2006, when broadband service was introduced, and fiscal 2000, during the height of the internet bubble. Compared to those last two peaks, however, recent funding covers a broader range of fields, including AI, biotechnology, robots and space. Japanese venture capital may still be modest compared to the U.S., which topped $70 billion last year, but its scale is gradually growing.

The boom in startup funding has been underpinned by historically low interest rates, however, monetary tightening around the world could impact investor appetite going forward.