Disrupting Japan

While the rest of the world is copying Silicon Valley, Tokyo is looking at Paris. Today we sit down with Mark Bivens and Matt Romaine, the co-founders of Shizen Capital to talk about Japan's new startup policies, the changing role of M&A, the main force behind the changing attitudes about startups in Japan. It's a great conversation, and I think you'll enjoy it. Show Notes Why Japanese startups need to start buying other startups The root of Japan's odd attitudes towards M&A and the forces changing it Structuring investments into foreign startups making a Japan market entry Why the Japan's angel investing tax-break is not really about taxes What Japan plans to import from the French startup ecosystem The best way to win the hearts and minds to change startup culture What's driving the recent explosion in startup events, and will it last? The best Japanese startup ecosystems outside of Tokyo Can authenticity scale? Links from our Guest Everything you ever wanted to know about Shiz

Today, we are going to talk about AI, but not in the way you expect. Today, I’m going to give creatives a solid three-point plan to beat AI in the marketplace. I’m going to explain how musicians, podcasters, authors and other artists can survive and even thrive amidst the unstoppable flood of AI generated slop we will all be forced to wade though for the foreseeable future,  And to maybe do some good in the process. It’s taken me over a year to write the script for this episode, and like so many of my solo episodes, I originally planned on it being very different from how it turned out. But sometimes the scripts takes on a life of its own, and I have to follow it to what always ends up being a far more interesting place. Those episodes tend to be my most popular I hope you enjoy it Introduction This is a solid three-point plan for beating AI in the marketplace. I’m going to explain how musicians, podcasters, authors and other artists can survive and even thrive amidst the unstoppable flood of AI we will be f

The Japanese government is taking a very hands-on approach to funding startups. Yuka Hata, Senior Managing Director of the Japan Investment Corporation (JIC) explains the kinds of startups and funds they invest in, and why. We also talk about the two  biggest challenges new Japanese VCs face, and what it’s really like for women in VC in Japan It's a great conversation, and I think you'll enjoy it. Show Notes Why JIC runs private equity and venture capital funds. Why Japanese companies struggle with secondary offerings How Japan's low-valuation IPS  hurt deep tech startups in Japan How JIC's makes investment decisions Why JIC is investing in foreign VC funds The two big challenges that new Japanese VCs struggle with How JIC is using LP investments to change Japanese VC culture The changing role of women in Japanese VC and how JIC is supporting that change Two reasons it’s important to attract foreign investors into Japan What foreigners most misunderstand about Japan's startup ecosystem

We live in a global financial system, but fintech innovation is surprisingly local. Makoto Shibata, the head of FinoLab, has been leading financial innovation Japan for over 20 years, long before the term fintech existed. We talk about the evolution of Japan's fintech landscape, and which fintech sectors are facing consolidation and which are facing growth. And we also explore Japan's rapid transition from a cash-based society to a cashless one and the startup opportunities that opens up. It's a great conversation, and I think you'll enjoy it. Show Notes The critical role of a dedication fintech community Why corporate support is still needed to succeeded in fintech in Japan The government's push to move society away from cash The likely fate of today's e-payment startups Opportunities for fintech startups in the next five years How AI is being used in Japanese banks (you won’t like it) Advice for how startups can successfully collaborate with large financial institutions What is preven

Disrupting Japan is 10 years old today! This is a simple thank you rather than a full episode. Thanks for listening!     Transcript Welcome to Disrupting Japan, Straight Talk from Japan's most innovative founders and VCs. I'm Tim Romero and thanks for joining me. This is a very short and very special episode. It's not an episode really, more of a personal message. You see, ten years ago today. I released the very first episode of Disrupting Japan. And I just wanted to say thank you. I really mean that. Independent podcasting is an incredibly personal medium and it depends on there being a real connection between the host, and the guests, and the listeners.  Commercial talk shows spend a fortune creating the illusion of that connection. And being in the center of that in real life is an honor and it’s amazing. It’s become a cliche when the host thanks their audience and reminds them that the show would not be possible without them, but it’s different at Disrupting Japan. You really do create a big part o

SaaS startup valuations and growth rates have dropped sharply in most of the world, but not in Japan. SaaS startups are growing fast in Japan, and that trend is set to accelerate even more over the next five years. Today Shinji Asada of One Capital explains Japan's still-untapped SaaS potential, his unique SMB and product-focused investment thesis, and the big changes that are happening in Japan's startup ecosystem. It's a great conversation, and I think you'll enjoy it. Show Notes The untapped potential of SMB SaaS Unique requirements for product collaboration software in Japan What is will take for Japanese SaaS startups to go global How One Capital helps its investors with digital transformation Japanese CVCs play a different role than in the US, and that's a good thing Why Japan SaaS valuations will continue to climb What makes a great SaaS company How Japanese founders have changed over the past 20 years How they will change in the next five How Japanese VC will (and will not)

If you have ever wondered what it really takes to start and grow a startup as a foreigner in Japan. Well, I have a treat for you today. Earlier this year, at the Japan FinTech Festival, I had the privilege of sitting down with four fantastic foreign FinTech founders and talking about what you need to succeed in Japan. There are some great insights here from Jeff Wentworth of Curvegrid, Paul Chapman of Moneytree, Sam Pemberton-Ahmed of SmartPay, and Samantha Ghiotti of Habitto. It's a great conversation, and I think you'll enjoy it. Transcript I think in every startup ecosystem, foreigners play an outsized role in promoting that ecosystem, whether it's in San Francisco, whether it's London. And the reasons for that might be a desire, a people who are willing to uproot themselves and move halfway across the world, maybe are just bigger risk takers. Maybe it's new perspective. But today, we're gonna dig into what it takes to grow a startup, a Fintech startup in particular as a foreigner here in Japan. And to

Japan has far fewer unicorns than one expects - or than venture capitalists desire. That fact, however, hides a fascinating story. Today James Riney, founding partner of Coral Capital explains the danger of unicorn counting. We dive deep into which startup sectors Japan is likely to lead in globally in the coming decade, how to identify unique startup value in Japan. We also talk about how Japan has become more like Silicon Valley in the past ten years and why they are about to become very different. It's a great conversation, and I think you'll enjoy it. Show Notes Coral Capital’s portfolio strategy How to find Japanese startups that can make a global impact Three categories of Japanese startups with unique opportunities for growth Sectors where Japan has a global advantage in startups Why “niche” startups in Japan can become hugely profitable What’s in Store for Carpal Capital Fund 4 Proof Japanese investors are long-term patent long-term investors The importance of VC portfolio ser

Japan thinks about robotics and AI differently that the West. In addition to their functional, productive role, a lot of thought is also given to our personal interactions, their social role, and the relationships we build with them. Today we sit down with Shunsuke Aoki, founder of Yukai Engineering and one of the most innovative and creative thinkers on the emotional connection between humans and machines. We talk about the future of robot companionship, how AI will change the definition of "culture", and why the future of Japanese robotics will have a lot more participation by foreigners. It's a great conversation, and I think you'll enjoy it. Show Notes The importance of emotional connection with robots Why children will listen to robots more then parents The importance and future of robot companionship Japanese vs western robot attitudes in culture and fiction How GenZ is is accepting AI boyfriends and girlfriends What a healthy emotional connection with an AI or robot looks like How

What keeps Japanese startups stuck in Japan? It's not a lack of opportunity or ambition. It's not a lack of knowledge or talent. In fact, one of Japan's most experienced venture capitalists thinks that VCs themselves that are the problem. Today we sit down with Ken Yasunaga, founder and Managing Partner of Global Hands On VC, a fund focused on finding and supporting the Japanese startups with the highest potential to succeed in the global market. Before founding GHOVC, Ken was managing director at INCJ (Japan's public/private $21B venture fund) as well holding multiple leadership positions in the Japan Venture Capital Association. We talk about the unique opportunities for investment in Japan, the trap of going public here, how some VCs are holding startups back, and why this might be a turning point for Japan's new global startups. It's a great conversation, and I think you'll enjoy it. Show Notes The two most pressing needs in Japan's startup ecosystem What's driving the increasing quality of J

There is important news for Disrupting Japan this week. It's a very short episode because I just want to let you know what's coming, and to thank you for all your support over the years. Leave a comment Transcript Welcome to Disrupting Japan Straight talk from Japan’s most innovative startups and VCs. I’m Tim Romero, and thanks for listening. Big changes are coming to Disrupting Japan. Our 10th anniversary is coming up this September, and you know, I thought about making this change then, but no. No, there is too much going on right now now to wait for four more months. For the past ten years Disruption Japan has brought you the stories of Japan’s most successful entrepreneurs, and I am going to continue to do that. But starting today, we are going to be hearing from Japan’s leading venture capitalists as well. There are a few reasons for the change. Part of it is that the Japanese venture landscape is changing fast, and in some very different snd important ways than what we see in the US.  Understanding

Some industries need to be dragged kicking and screaming to innovation. When margins are tight and profits are small, CEOs often don't want to spend a dime on the promise of increased efficiencies or long-term savings, and so external leverage is needed. Today we talk with Shinya Shimizu, founder and CEO of Elephantech, who explains how he found that leverage in his mission to make the global technology supply chain more environmentally friendly. We explore how Elephantech and other startups are helping the world meet net-zero targets, strategies for scaling  manufacturing startups, and how you can make money while doing good in the world. It's a great conversation, and I think you'll enjoy it. Show Notes The surprising impact of circuit boards on global CO2 emissions Growing from a kickstarter camping into a multi-million dollar startup How to raise debt financing rather than equity financing How Elephantech is selling eco-friendly solutions in a low-margin commodity industry How they built

Japanese HR departments are in a bit of a panic right now. The increasing job mobility that startups have unleashed is forcing them to rethink their entire mission. Today we sit down and Takako Ogawa, co-founder and CEO of Panalyt, a startup at the center of this transformation, and we talk about the changing career paths in Japan, when startups need to change CEOs, and the dangers of going global that people don't seem to talk about. It's a great conversation, and I think you'll enjoy it. Show Notes Why it's so hard for HR to answer simple questions Google’s approach to people analytics and why that's important in Japan The dangers involved in the freemium model Why a Singapore-based startup started focusing on Japan Why it's better to build a startup today in Japan rather than Singapore How to change a startup CEO The importance and danger of transparency in a startup The problem most enterprise SaaS dashboard startups never overcome The right way for a startup to go global HRs ne

Fusion energy promises almost unlimited, inexpensive, clean energy. That's a pretty big promise. Today we sit down with Satoshi Konishi, co-founder and CEO of Kyoto Fusioneering, and we talk about what it is really going to take to develop commercially viable fusion power and the role that startups have to play in that process. We talk about the emerging public-private research partnerships, who is pulling ahead in the fusion race, and  we dig into the long history and near future of fusion energy It's a great conversation, and I think you'll enjoy it. Show Notes Why fusion energy is much older than you think Why fusion energy dropped out of the news and why it’s back How to raise venture capital for moonshot startups The three core components to a fusion power that form Kyoto Fusioneering's business model A strategy for standardizing when technology moves quickly How recent fusion energy headlines have been misleading Why we have a fusion energy startup cluster in Japan The Japanese p

Most sustainability startups struggle to find sustainable business models Towing, however, has found their solution, and their customers are seeing 20% to 70% increases crop yields. Today we sit down with Towing co-founder Teppei Okamura and he explains why even such a drastic yield improvement required an innovative production and distribution model to achieve scale. We also talk about the advantages (and the challenges) of working with university research teams, how environment policy and carbon credits affect innovation in sustainable agriculture, and Towing's joint research project with JAXA, Japan's space agency, on developing farming in space. It's a great conversation, and I think you'll enjoy it. Show Notes How Towing is revitalizing depleted agricultural soil Achieving and verifying 20 to 70 % yield improvements The pros and cons of research collaboration with Japanese universities The high-tech business model behind dirt How to develop the economic incentives needed to make sustain

Everyone agrees that the Japanese education system needs to be modernized, but EdTech startups still face an uphill battle in Japan. Of course, academia and governments are not known for being particularly innovative or forward-thinking, and that's why Kohei Kuboyama left a fast-track career at Japan's Ministry of Finance to launch an EdTech startup. Kohei lays out his blueprint for getting new technology and new products adopted in Japan's schools, explains the challenges of leaving government service to start a startup, and talks about a few optimistic long-term trends he sees in Japan's eduction system. It's a great conversation, and I think you'll enjoy it. Show Notes Why it’s so hard to leave the government to start a startup The three waves of "founder acceptance" in Japan Why EdTech startups sell to cram schools instead of regular schools The key to turning teachers into product advocates The biggest challenge in selling to high-schools in Japan. How to create life-long learners in J

MedTech is one of the most challenging areas for startups to compete in,  "Move fast and break things" just doesn't work in medicine.  So you might be surprised to learn that there are quite a few innovative medical startups coming out of Japan right now.   Today we talk with Yuichi Tamura, founder of Cardio Intelligence, who has developed Smart Robin, and AI platform that can read EKGs, has been certified as a diagnostic device and is being used in clinics and hospitals all over Japan.  We talk about the challenges of bringing medical AI to market, their plans for global expansion, and the most important thing that venture capital can offer medTech startups.  It's a great conversation, and I think you'll enjoy it.

Japan wants to learn how to code. Over the past 15 years software development in Japan has changed from low-level clerical work to a mission-critical skill, and the Japanese government and industry as scrambling to find programmers and develop new talent. Yan Fan came to Japan on a mission to teach everyone how to code. After opening Japan's first coding  bootcamp, and she and her co-founder Kani grew Code Chrysalis to profitability and about 50 staff, and continue to grow rapidly. Yan and I talk about digital literacy in Japan, and she also  explains her blueprint for making sales in Japan without speaking Japanese, identifying a startup's unique value in Japan, and her experience raising money from both angels and CVCs It's a great conversation, and I think you'll enjoy it. As promised, here is a picture of "Benesse's pumpkin"a work by Yayoi Kusama. It will all make sense after you listen to the episode. Show Notes Why Japanese enterprise is looking at coding bootcamps Why software development

Shadow IT has been responsible for more enterprise SaaS deployments and workflow innovation than any growth strategy of the last 15 years. And that 's all about to end. Today we sit down with Yasu Matsumoto, who stepped down as CEO of Raksul after leading the startup from founding to post-IPO success, to start Josys, a new startup helping enterprises put an end to shadow IT once and for all. Yasu explains why that the end of shadow IT is actually a good thing for everyone, why he decided to step down from his high-profile CEO role, and the future of SaaS sales and marketing. It's a great conversation, and I think you'll enjoy it. Show Notes The problem with shadow IT and why it's coming to an end The Raksul startup to IPO story The Josys spinout and fundraising as a spinout Why there are so few serial founders in Japan The public's reaction to Yasu's decision to resign as CEO of Raksul Why CIOs are fighting back against shadow IT Josys's global expansion plans and being global from day 1

For decades (centuries, really) lending in Japan has relied on personal guarantors and introductions rather than objective credit scoring. This startup is changing that. Before starting Credit Engine, which provides credit scoring, automated approvals, and other services to mega-banks and other financial institutions,  Sei Uchiyama founded an online lending startup to ensure he understand this market from the bottom up. Credit Engine currently automates everything from loan approvals to the collection of delinquent and non-performing loans, and its already starting to change finance in Japan. Sei and I talk about the future of finance in Japan and the surprising way competition between FinTech startups and the banks is likely to play out. It's a great conversation, and I think you'll enjoy it. Show Notes How much of the loan process can a startup be involved in How the mega-banks are experimenting with this technology The post-tsunami rescue micro-finance fund Why pivot from direct lending t