Contemporary Startup Scene in Tokyo at Portland State University Center for Japanese Studies

Hajime Kuwayama was co-founder and founding CEO of Emotion Intelligence, Inc., an information technology company which focused on analyzing web browsing behavior in real time. He is a serial entrepreneur, a futurist, and a mentor with Open Network Lab, which actively supports startups looking to compete on the global stage. He received BS from Waseda University in Management Engineering and was a Portland State University Exchange Student.

In his lecture he will share four significant aspects of the startup ecosystem in Tokyo, which he has observed from his own startup experience over the last five years. His topics will include the young who work for startups, venture capital, the organization and its culture, and client companies, and his vision for the future.

With support from Toshiba International Foundation.

https://www.pdx.edu/cjs/events/contemporary-startup-scene-tokyo

Transcript

1. Sleeping Politician Contemporary startup scene in Tokyo Presentation by Founding CEO of Emotion Intelligence, inc MIT Media Lab Research Affiliate
2. Self Introduction
3. Who am I? 2018~ MIT Media Lab Research Affiliate 2012~2017 Emotion Intelligence Co-founder & CEO 2005~2010 Waseda Univ -> 2008 PSU TNP Program Student/ JSS President
4. Today’s Scope
5. What I talk/do not talk Japan Tokyo Startup IT/Web Business Culture But, not talking about other regions such as Fukuoka, Kobe… But, not talking about normal SMEs or high tech business such as Bio/EV & Try to use logical and quantitive style for business, and qualitative for culture
6. What is different today Data Experience &
7. I will talk 5 aspects Recruiting Fundraising Sales Exit Lastly, what’s the future…? Organization
8. Company introduction
9. Concept %BUB
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10. Business demo
11. Business Outcome (Seed) (Series A = 4M USD) Market Coverage Fundraising
12. Recruiting
13. We are the generation that don’t know Bubble Economy and grew up in “lost two decade” Peak of Bubble the Nikkei Stock Average Lost two decade
14. Average salary have been decreasing National Tax Agency, “Survey on actual salary survey” (2016) the Nikkei Stock Average Lehman Shock 0000 (yen) 0000 0000 0000 0000 0000 0000 0000 0000 0000 0000
15. Candidates’ voices in job interviews • Want to obtain practical skills • Want to work for the same vision • If the salary is low anyway, want to gamble etc… In their mind, life time employment system is already over
16. Foreign employees are welcomed in startups Startups want anyone who can join as soon as possible Foreign employees want to work in flexible work environment
17. Actual our employees’ backgrounds
18. Fundraising
19. VC investment in Japan is growing 0 300 600 900 1200 0 475 950 1425 1900 2011 2012 2013 2014 2015 Amount (M USD) Count Venture Enterprise Center, “The Venture Survey 2016” (2016) Actually, in 2016, the trend increased due to “fund boom”
20. VC fund created in Japan 0 15 30 45 60 0 500 1000 1500 2000 2011 2012 2013 2014 2015 Amount (M USD) Count Venture Enterprise Center, “The Venture Survey 2016” (2016)
21. Example of VC Media Regional bank Prefecture
22. The problem is not money but capitalists Let’s not invest in this startup because there is a risk
23. An example in an actual contract The company needs approval from the investor When the company wants to start a new business
24. Make them imagine the future
25. Our investors William Lohse Shogo Kawada Masanori Sugayama Kosuke Matsumoto Tomohito Ebine Gen Isayama
26. Organization
27. Successful startups follow this lifecycle Co-founders Co-founders + Stars James Baron, “Startup HR Stanford Project on Emerging Companies” (2002) Commitment …
28. This is difficult process to execute Often leads to fight and conflict In Japan, we basically cannot fire employees Also, changing job in short term is negative
29. Many “smart” people misunderstand the innovation process Textbook-like innovation process Actual innovation process technical breakthrough product developme business developme epiphany technical breakthrough product developme business developme epiphany
30. Our original features ᶄ3FWFOVF
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31. What happened after market entrance Competitor took the market ˎMinimum fee ᶄRev share ˎMaximum setting ˎFix cost option We assumed customers use our service regularly, but some of them use in spot Revenue share is difficult for many clients to plan budget Some clients want to tweak manually, know what’s going on inside of Machine Learning ᶄRevenue
 share model ᶅNo manual Operation ᶃNo initial ˍMonthly Fee ᶃNo initial ˍMonthly Fee
32. Startups need these kind of people, however, they are quite rare… Can get hands dirty Can aim at moving targets Capable worker Strategist "Serial startup person”
33. Most of cases, interim solution is top-down After most of features settle, go to bottom-up
34. Sales
35. Basic sales process Lead generation Face to face meeting Paper & Hanko
36. New technology? Customer Success
37. Exit
38. IPO is still the main exit method in Japan Exit plan of VC-backed startups 14% 1% 9% 57% 19% In process of IPO Planning to IPO No plan to Exit Other Planning to M&A Venture Enterprise Center, “The Venture Survey 2016” (2016)
39. Why? Functionality vs Community
40. My case It’s a community… But, we should share roles
41. Which is happier life? "
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42. Summary Recruiting Changed Fundraising Changed Organization Not changed Sales Not changed Exit Not changed *Only what have changed largely is written as “Changed”
43. Future
44. Startup culture will keep growing
45. Mercari’s success in US is epoch-making
46. Summary Recruiting Changed Fundraising Changed Organization Not changed Sales Not changed Exit Not changed Future Changed! *Only what have changed largely is written as “Changed”
47. For further information on this subject feel free to contact me at 617-818-5503 hajime.kuwayama@hajimek.com
48. Hope you enjoyed this presentation.