Disrupting Japan

Have you ever been at a crowded and noisy party and heard a conversation across the room? You catch pieces of it, and you know it is interesting, but you can’t quite make it out and you can quite push your way over to that side of the room to be a part of it. Well, that was the situation a lot of our guests found themselves in a few weeks ago, so today we are going to set things right. Last month 500 Startups and Disrupting Japan held a joint event that focused on how Japanese and foreign staff can work best together at startups. As the event, I had a great discussion with three startup founders who are leading multi-cultural teams.  They candidly shared their stories and advice and even told us about some of their biggest mistakes. It was a great discussion, the event was a huge success, and we’ll definitely be doing it again very soon. But in a way, the event was too successful. Way more people showed up than we expected and the place was packed. Everyone had a good time, but the room was so packed and

Hardware is hard. In fact, sometimes the simplest and most straightforward ideas turn out to be the hardest to implement. Today I’d like you to meet Kyohi Kang the founder and CEO of Atmoph. Atmoph is a programmable window which can display the sights and sounds of hundreds of scenic places from all over the world. It's an exciting project, and the team attracted a great deal of early interest. They even ran one of the most successful Kickstarter campaigns and a smaller, but still successful, Japanese campaign on Makuake. But this success almost bankrupted them. Kyohi and I discuss how this happened and how other startups can avoid falling into the same trap. We also discuss Kyoto and the fledgeling startup ecosystem that is just starting to spread its wings there. And we'll dive into detail about why, unlike most other startups, Atmoph has decided to remain a hardware startup rather than pivoting to software and licensing when presented with that option. It’s a great discussion, and I think you’ll enj

Right now, it looks like the most profitable business models that are emerging from the mapping of the human genome are not in the field of medicine, but in a variety of B2C business models focused on consumer marketing. That may be a surprising claim, but if the past 40 years of life sciences have taught us anything, it's that our genetic information will be both more valuable and harder to understand than we expect it to be. Today, I’d like you to meet Tomohiro Takano, CEO and founder of Awakens.  Awakens is opening up the genome to make it more accessible and understandable to you and me. They are designing a genetic marketplace that will serve both B2B and B2C clients, and they are working with other startups to develop applications that will leave some readers impressed and excited, and others appalled and concerned. So it’s probably best to let Tomo tell you about it. Show Notes Why people will share their DNA information How to choose your customers as a genetics startup Why developing B2B

We startup founders and investors like to talk about “moonshots”. It points out startups that have huge dreams, those that are solving hard problems, and those that will actually change the world if they succeed. Usually, the term moonshot is used metaphorically, but today I’d like to introduce you to a literal moonshot. Takeshi Hakamada, founder and CEO of ispace, plans on landing commercial payloads on the moon in the next two years. Ispace is in the process of developing lunar landers and lunar rovers, and they plan on using the increasingly inexpensive commercial launch companies like SpaceX and Blue Origin to send them to the moon. Ispace has secured a partnership with Japan’s space agency, and they have attracted more than $90 million in investment. It’s a great conversation and I think you’ll really enjoy it. Show Notes Why Japan's space program is being privatized How a lunar lander can be commercially viable by 2020 An overview of ispace's first ten lunar missions How much it costs to

Using artificial intelligence to change the way the education system works seems like a fool’s errand. When you combine the fluid and opaque nature of AI technology with the slow, bureaucratic decision making of education, you usually wind up with the perfect storm of stagnation, frustration, and rapidly burning through investor capital. Out guest today, however, thinks he’s found a way to make it work. Daisuke Inada, founder and CEO of Atama+, left a promising career at Mitsui to start an EdTech company he believes will change the way children learn. Interestingly, Daisuke’s vision is not the standard EdTech dream of online classes and automated learning. It’s one where human instructors are still very much involved and critical to the success of both the students and the programs. Of course, their role will change and the overall structure will look quite different from what we know today. It’s a fascinating discussion, and I think you’ll really enjoy it. Show Notes How to find a customer willing t

The global energy markets are transforming themselves right before our eyes. Very little fundamental change has occurred over the past 70 years, but 10 years from today the Japanese and global markets are going to look completely different.  Today we sit down with Yohei Kiguchi CEO in Enechange, Japan’s largest retail energy switching platforms, and we dive into detail about how these markets are changing. We talk about Enechange’s business model, of course, but we also discuss the most effective strategies for startups who need to compete against large incumbents, and that advice holds true for startups in Japan or anywhere else in the world. Yohei also has some interesting observations on why Japan is a better place to start a company than the UK or Europe. It’s a fascinating discussion, and I think you’ll enjoy it. Show Notes How to identify a promising startup opportunity in Japan What’s driving change in Japan’s energy markets How to appeal to Japanese investors from overseas The importanc

Having a free product tier is a time-proven way for startups to get a foot in the door by giving potential customers a low-risk way of evaluating your product. However, there are times when it's easier and much more profitable to simply make the sale. Yu Taniguchi s CEO of Vesper and creator of TableSolution.TableSolution is a SaaS product similar to OpenTable. It helps restaurant owners manage their reservations and better understand their customers. You might not have heard of them yet, but you will. Today they have thousands of paying customers including some of the world's largest hotel chains, they are profitable, and they are expanding globally. Yu and I talk aboutTableSolution's business model, of course, but you Yu also has some great advice and some counterintuitive insights about selling to mid-sized companies, expanding into new verticals and recruiting great staff. It’s a fascinating discussion, and I think you’ll enjoy it. Show Notes Two ways to differentiate your startup in a crowded i

Japanese labor law is very different from what is standard in the US or Europe, and more than a few foreigners have made simple mistakes that have cost them their jobs or their entire companies. Terrie Lloyd has started more than a dozen companies in Japan over the past 30 years and has hired hundreds of people here. Today Terrie shares a number of personal stories and also offers a lot of practical advice for westerners in Japan who need to hire, manage and retain Japanese staff, either for their own startup or as part of a larger organization. Of course, we talk about Japan Travel, Terrie’s latest venture, but we also cover the state of Japanese startups in general, how to best raise money from Japanese VCs, and we go over a few real-world examples of how you can protect yourself when things go horribly, horribly wrong. It’s an interesting discussion, and I think you’ll enjoy it. Show Notes One mistake all founders need to avoid when building a platform business Why Japanese VCs have a blind spot

Japanese fashion is unique, and so is the entire Japanese fashion industry. Today I would like to introduce you to a Japanese fashion startup with a genuinely unique business model. Tsubasa Koseki and his team at Facy, have created a fashion marketplace based on instant messaging and relationship building between shops and consumers. Interestingly, this market is not dominated by major labels or global companies, but by more local, mid-market brands. Tsubasa and I talk about his plans for Asian expansion, Facy’s chances for global domination in this niche, and the major differences between fashion retailing in Asia and in the West. It’s a fascinating discussion and a great inside look at fashion retailing. Show Notes What is the last untapped fashion market The reason behind the recent boom in startup founders from Todai How SNS use differs between Asia and the West Why you may not be able to trust Japanese e-commerce reviews The biggest mistake fashion startups keep making Why the global fa

There are a lot of passionate opinions about Japanese design. From the beauty and subtlety of the best Japanese anime to the design horrors of most corporate Powerpoint presentations, Japanese design covers a huge range. Things are changing though, and today we sit down and talk with Naofumi Tsuchiya, the founder and CEO of Goodpatch, one of Japan’s leading, and most richly valued, UI/UX design startups. We talk about how Japanese design is evolving and why we might be seeing (for better or worse) a more global design standard and sensibility. Goodpatch is one of the new breed of Japanese design firms, and they’ve been able to raise substantial venture funding. Nao and I also talk about how that venture money has forced his startup to move in very specific strategic directions. It’s a fascinating discussion, and I think you’ll enjoy it. UPDATE: The conversation below on the future of Goodpatch's two products is a bit confusing. Goodpatch has stopped development of Balto, but is continuing development on P

Video is taking over the internet, but in many ways, it has not changed significantly in the past 40 years. The way we discover and pay for video content has changed significantly, of course, but we still consume video in a continuous, linear sequence, and that’s about to change. Sandeep Casi and his team at Videogram are using deep learning to change the way you and I discover and watch video. They’ve already had success in the enterprise realm, and they are now bringing the technology to consumers. Interestingly, Videogram was not founded the way most startups are, and Sandeep’s approach to leveraging the intellectual property locked up inside Japan’s large corporations might represent a unique and important avenue for innovation here in Japan. One that might become every bit as important as traditional seed-funded startups. We also dive into the paradox of enterprise innovation, and Sandeep explains a few things that all startups need to understand about corporate accelerators before joining. It’s an

Today I have a special in-between episode for you. At this year's big Tech In Asia Tokyo event I moderated a panel on artificial intelligence with some of the leaders in the field in Asia. We talked about how to separate the AI hype from reality, where companies can and are finding competitive advantage in AI, and whether in the decades to come artificial intelligence will be serving us in the future or whether we will be answering to our robot overlords. Joining me on the main Tech in Asia stage were: Alexis Zheng - Product Lead, Uber Toshitada Nagumo - CEO, Fenox Japan Takahiro Shoji - Venture Partner, Zeroth.ai It was an interesting conversation, and I thought I would package it up and bring it to you exactly as it happened. [shareaholic app="share_buttons" id="7994466"] Leave a comment Apologies, but there is no transcript of this show.  

There is far more to startups in Japan than SaaS software and IoT hardware companies. Biotech startups are beginning to make a mark here. Today we sit down and talk with biotech pioneer Mitsuru Izumo and talk about his ground-breaking work at Euglena. In many ways, the team at Euglena succeeded where even NASA failed. They have developed a process to cultivate this microorganism, also called Euglena, affordably and at industrial scale. And Mitsuru and his team use using Euglena to create everything from inexpensive nutritional supplements to biological jet-fuel. Mitsuru tells an amazing story of how he took his startup from inspiration to proof of concept, to IPO, and how the real innovation is just getting started. I think you’ll really enjoy this one Show Notes Why the same organism can produce both food and fuel Why Euglena has been impossible to cultivate at industrial scale The world does not have a hunger problem; it has a nutrition problem How to move forward when no one believes in your

There’s a very good reason most Japanese hardware startups fail. Today we sit down with Takuro Yoshida CEO and founder of Logbar, and we dive into the reasons and also go over Logbar’s strategy for avoiding the mistakes that have killed off so many other Japanese IoT startups. Takuro is the creator of one of the most successful Kickstarter campaigns and two of the most successful IoT projects in Japan, the Ring Zero, which is VR controller in wearable ring form and the ili automatic translator, which is just starting to gain real traction. Of course, we dive into how he managed to create and bring these products to market, and we also talk in detail about Takuro’s unusual journey from professional bartender to successful startup CEO. It’s a great conversation, and I think you’ll really enjoy it. Show Notes How to go from bartender IoT startup founder Why a successful Kickstarter campaign can be a danger to your company Why the Ring failed as a hardware controller Why hardware translators will s

Disrupting Japan is three years old, so we decided to invite a few hundred movers and shakers from Tokyo's startup community over to have few drinks and to hear three of Japan's most successful startup CEOs talk about what it takes for Japanese startups to succeed globally. Our panel included the CEOs of some of the most innovative startups in Japan. Ken Tamagawa (@kentamagawa) - CEO, Soracom Takuma Iwasa (@cerevoglobal) - CEO, Cerevo Shin Sakane (@laundroid_0 ) - CEO, Seven Dreamers We talk about strategies for global growth, how to best manage multi-cultural teams, and the likely future of hardware and IoT startups in Japan. In fact, we talk a lot about the challenges hardware startups are facing in Japan today. Japanese hardware startups are at a crossroads. The old model of hardware innovation is failing, but there is a new model, unique to Japan, that might just take its place. But, as our guests explain, things are far from certain. It's a great conversation, and I think you'll enjoy it. On

Corporate Japan is about to go through a major transition in its approach to computer security. In the past, Japan-only payment systems and the Japanese language itself provided a barrier that kept international fraud and attacks at a very low level. All that is changing now. With payment systems becoming increasingly global, and free, instant translation available to anyone with a browser, fraud is on the rise in Japan. Today we sit down with Atsuyoshi Shimazu of Caulis, and he’s going to both explain the new threats and explain exactly what he plans to do about them. He’ll also explain why Japan’s current approach to the internet of things means that things might get worse before they get better. It’s a great conversation, and I think you’ll enjoy it. Show Notes Why 50 million accounts are at risk in Japan Why some Japanese companies avoid taking security measures Toyota's vision of connected cars in the gig economy What security looks like in an IoT world Why online fraud is about to skyro

Welcome to our 100th show. If you are new, welcome to Disrupting Japan. If you are a long-time follower, thank you for being part of the community and helping to make Disrupting Japan what it is today. This is a special, and rather short, episode. Today I'm going to tell you a very personal story of startup failure, and let you in on what's coming next. Both for me, and for the show. Thank you for listening, and I think you'll enjoy this one.   [shareaholic app="share_buttons" id="7994466"] Leave a comment Transcript Disrupting Japan episode 100. Welcome to Disrupting Japan. Straight talk from Japan's most sucessful entreprenuers. I'm Tim Romero and thanks for joining me.  Wow. One hundred episodes! That’s right Orson Wells only made 64 movies.  The Rolling Stones have only recorded 53 albums. Lord Byron only published 83 poems. But Disrupting Japan has now released 100 episodes. And I’m pretty happy about that. When I started this show, almost exactly three years ago, I never imagined it woul

Fewer than 1% of Japanese consumers have ever purchased a product or service from a sharing economy platform. It's actually quite puzzling. Social and economic factors all seem to indicate that Japanese cities would be ideal for sharing economy businesses, but for a number of reasons sharing economy startups have not really taken off here. Today we unravel a bit of this mystery as we sit down with Chika Tsunada, founder of Anytimes and the Director of the Sharing Economy Association Japan. Anytimes is a P2P sharing economy startup with a unique and participatory business model. Chika explains why she chose that model and the challenges it presents. Even under ideal circumstances, building a P2P marketplace is hard. It's one of the most challenging business models to execute, and to succeed today requires doing something truly unique. Chika has chosen an unusual path both for herself and for her business. It's a great discussion, and I think you'll enjoy it. Show Notes The best strategy for building a

The financial services industry in Japan is pretty unsophisticated. There are relatively few options for brokerages and mutual funds, and what options there are tend to be expensive. Furthermore, since pensions and taxes are generally handled by the employer there is not much reason for the average Japanese to think much about investments. Jin Nakamura of  Money Design is trying to change that with a very interesting strategy. In a market that is dominated by price competition, Money Design has set out to create a premium lifestyle brand that has nothing to do with finance. And it’s working. Money Design has become the largest robo-advisor service in Japan and is partnering with some of the largest banks here. It’s a fascinating story, and I think you'll really enjoy it. Show Notes Why young Japanese are not investing Why it takes so long to launch a financial product in Japan The danger of using AI in investing How to reach $1 billion assets under management How to avoid competing on pric

Japanese enterprises are particularly susceptible to disruption, and Japanese startups have a harder time than most pivoting. Both of these problems stem from the same root, and today we are going to dig up that root and have a look at it. Today we sit down with Shogo Kawada co-founder DeNA, and we talk about both the challenges of the company’s early startup pivots and the post-IPO difficulties they faced with new disruptive challengers. Shogo is now one of the most active and successful angel investors in Japan, and he explains how both the role and profile of Japanese angels is shifting. He also outlines the reasons why their presence is leading to several positive changes in Japan’s venture capital ecosystem. It’s a fascinating discussion, and I think you’ll really enjoy it. Show Notes How both eBay and DeNA screwed up auctions in Japan Why most business alliances fail Why startups will always have the advantage with new technology How to get started in angel investing The only thing the c