Disrupting Japan

Material Wrld has found a way to innovate in online fashion commerce, and that’s no easy task. It’s a crowded market, with tight margins. Rie Yano and her team, however, have found success by going against common wisdom. While their competitors were focused on building platforms and reducing the amount of work required by their staff, Material Wrld went the other way. They began to take on inventory risk and doing some of the most labor intensive parts of the process in house. This is the kind of move that looks foolish on the spreadsheets, but it turned out to be instrumental in enabling Material Wrld to maintain quality, develop lasting relationships with their customers and ultimately control their own brand. It’s an amazing, and somewhat surprising story, and it’s best if you hear it directly from Rie herself. Show Notes for Startups Why people feel guilty throwing out clothes How a credit card provides a physical anchor for an online brand Why traditional recycle shops need to change The nee

The aerospace industry has been particularly resistant to disrupting in Japan. In the rest of the world, launch vehicle and spacecraft technology has made incredible gains over the past decade, but here in Japan its still mostly the same government contracts going to the same major contractors. Naomi Kurahara of InfoStellar, has come up with an innovative way to leverage existing aerospace infrastructure and to collaborate globally by renting out unused satellite ground-sataion time, Airbnb style. You see when an organization launches a satellite, they also build a ground station to communicate with it. The problem is, that as the satellite obits the Earthy, it’s only in communication range of the ground station for less than an hour a day. The rest of the time the ground station just sits there. By renting out that unused time ground-station operators earn extra income, and the satellite operators are able to communicate with their satellites as often as they need. It’s a great interview and I think you’

Disrupting Japan is two years old and ready to party.  To celebrate, we gathered the leaders of Tokyo's venture capital community together in front of a live audience of made up of the thought leaders of Japan's startup community. We all had a few drinks and talked about fundraising in Japan, the future of venture capital here, and how startups can best get in touch with and impress VCs. Our panel included some of the top VC investors in Japan, which naturally led to an amazing discussion. Shinji Asada (@asada23) - Japan Head, Salesforce Ventures Hiro Maeda (@djtokyo) - Partner at BEENEXT James Riney (@james_riney ) - Head of 500 Startups Japan We discuss the challenges or fundraising in Japan, growing a Japanese company as a foreigner, what Japanese VCs can learn from their foreign counterparts, and what kind of of pitch mistakes will ruin your funding chances. On a personal note, it's hard to believe that two years have gone by already. Disrupting Japan has grown larger, faster, and with a more en

Ten years ago, everyone know that e-commence would drive most retail stores, especially specially stores out of business, and with the Amazon juggernaut plowing ahead, there were very few dissenters. But something very interesting is going on right now. Many e-commerce companies are opening physical stores. Even Amazon, going against all economies of scale, is opening up brick and mortar bookstores in expensive locations with full-time staff. And there a good reason for this trend. There is something very reassuring about holding a product in your own hands. And it’s something that can’t really be replaced with high- resolution photos and customer reviews. Tomohiro Hagiwara of Aquabit Spirals has committed both his company and a large part of his adult life to bridging this gap between the physical and the digital world and is helping online retailers jump into the physical world. Of course, Aquabit Spirals’ technology does much more than this, and Tomo tells an interesting story of how it took his compan

Fashion is a tough business, and fashion subscription boxes are even tougher. From the top down, this seems like a great business model. Subscribers are sent a new, hand-picked box of clothes or accessories each and every month. As you’ll see ...

Long before the maker movement existed, Akihabara was world famous as a destination for hardware geeks, robotics nerds, and audiophiles and tinkerers of all kinds. Hundreds of tiny specialty shops lined the areas back streets and did a surprising brisk business in items you could not find anywhere else. The internet changed all that. ...

Uber and Airbnb represent a new very kind of startup, one that could not have existed twenty years ago, and the very thing that make these companies so transformative in the United States ensures they will never succeed in Japan. You see...

Startup founders claiming their company is going to “change the world” has become a cliche. But rarely do we see a product that could clearly and significantly make someone’s life better. D-Free is one of those products. However...

A key component to making a startup a success is knowing who your true customers are. Today, Antti Sonninen, the Japan CEO for Slush, one of the largest startup events in the world lays out the business model for us, and the facts will probably surprise you.

Crowdfunding is at a crossroads. The inherent conflict of interest in the business model is forcing US firms to either limit their growth or become the online equivalent of late-night infomercials. In Japan, however, crowdfunding has grown more ...

Last week I published a article on Medium about why I was shutting down my current startup. If you haven't read it yet, you can find out Why I turned down $500K, Pissed off my investors, and Shut down my startup. The post went viral and I've received several thousand emails in the last few days. ...

Pocket Supernova has pivoted through three countries and three completely different products before they hit their stride with their current video editing platform for mobile, and they now seem ready to move a generation of video content creators out from behind their desktops and onto their mobile phones.

We are about to start seeing more cars but fewer drivers on the road. Self-driving vehicles are already moving out of the labs and onto the roads world-wide, and Yuki Saji thinks Japan has a unique competitive advantage in the space. Yuki is CEO of SB Drive, Softbank’s...

Japan could be, and perhaps should be, a BioTech startup powerhouse. The size of the market, the aging population and the depth and quality of the fundamental research being done here should make Japan a global player. But something is holding her back.

Everyone talks about the importance of international markets and how startups need to think globally from day one. Few companies, however, build that goal into their DNA as completely as Miku Hirano’s Cinnamon. Cinnamon’s core product, Tuya is a micro-video sharing platform...

Japanese banking is one of the most conservative industries in one of the most conservative countries in the world. That’s what makes it both so difficult and so profitable to disrupt. Today, Paul Chapman talks to us about the founding and growth of Moneytree, a personal finance app that is quickly growing into something much bigger and more important.

Over the last 25 years, both Zest and Yuki Ito have been through several different incarnations. Interestingly, these incarnations perfectly mirror the changes we have seen in Japan’s startup scene in that time. Today Zest makes cloud-based, field-service software, which ...

Overall trends are going pretty well for startups in Japan, but things could be a lot better. One strange thing seems to be that almost everyone asking how to improve things for startup in Japan are either government officials, academics or venture capitalists. It's fantastic that they are interested, and their interest in sincere, but there is only so much they can do. What needs to happen ...

Koki Hayashi of Letibee is walking a difficult path by combining a startup business with social activism, but he just might pull it off. Japan is very rapidly becoming more accepting of those who are openly gay, and 2015 was a year of extremely rapid progress for gay rights. Letibee has plans to capitalize on this movement...

Japan has a long cultural fascination with human-like robots. Literature, cinema and anime are filled with them, and perhaps not surprisingly, a large number of Japanese startups are focused on making anthropomorphic robots. I have to admit that this fascination never really made sense to me until Shunsuke explained it during this interview.