Evolving VC Practices and Global Ambitions for Japanese Startups

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 Japanese founders Why we are not seeing Japanese unicorns What's preventing Japanese startups from going global The trap of going pubic in Japan Why Japanese startups struggle to go global The importance of mentors and hands-on support The important role of foreign VCs in Japan The right role government needs to play in supporting innovation in Japan Are Japanese founders becoming more conformist? Links from our Guest Everything you ever wanted to know about GHOVC Check out GHOVC on YouTube Follow Ken on Twitter @ken_yasunaga Friend him on Facebook Connect on LinkedIn Transcript Welcome to Disrupting Japan. Straight Talk from Japan's most innovative startups and VCs. I'm Tim Romero, and thanks for joining me. Talking about how Japanese startups need to go global is like talking about needing to go to the gym to lose those 10 pounds. I mean, everyone agrees it’s a great idea, a necessary one in fact, everyone is incredibly supportive. There are classes, networking opportunities, a wide and encouraging network. We all agree that it needs to be done, but somehow very few actually get off their ass and make it happen. Well, today we sit down with Ken Yasunaga, who is going to explain what he and his team are doing to fix that. The going global part, I mean, getting motivated to go to the gym is a discussion we'll save for a later time. Ken is the founder and the managing partner at Global Hands-on VC a fund. He and his partners put together to focus on finding the Japanese startups with the strongest global potential, and then providing them with the resources and guidance they need to actually do so successfully. Before starting his most recent fund, Ken managed one of the largest Japan government VC funds and has advised both METI and the Cabinet Office on startup policy. So, we also dive deep into the role that government should play in supporting the startup ecosystem here. The IPO trap that many Japanese startups fall into, the unique opportunity for foreign VCs in Japan. And of course just what it's going to take to get Japanese startups to succeed in global markets. But, you know, Ken tells that story much better than I can. So, let's get right to the interview. Interview Tim: So, we're sitting here with Ken Yasunaga, the founder and managing partner of Global Hands-on VC. So, thanks for sitting down with us. Ken: Well, thank you for having me. Tim: I've really been looking forward to this conversation because we've known each other for quite some time now through several iterations of our career path. So, let's talk about your thesis at Global Hands-on VC because I think you're addressing two really important needs in Japan's startup ecosystem. Ken: Yeah. So, let me first tell you what the Global Hands-on VC. We call it the GHOVC. This is a VC fund that invest to the Japanese technology startup.