Patrick McKenzie (patio11) is joined by James Riney, partner at Coral Capital, to explore Japan's transformation from a $700 million startup ecosystem to today's $5-10 billion market. They discuss the cultural and structural factors that initially limited venture activity in Japan. The conversation covers unique aspects of building startups in Japan, from the quirks of being a foreign professional to why Japanese engineers love Twitter but ignore LinkedIn, plus insights into Japan's "time machine advantage" and why American-developed dev tools are going viral in Tokyo.
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Read full transcript here:
www.complexsystemspodcast.com/startup-investing-in-tokyo/
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[Patrick notes: Complex Systems now produces occasional video episodes! You can access them directly on YouTube: www.youtube.com/@patio11podcast. My kids inform me that I’m supposed to tell you to like and subscribe.]
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Sponsor: Safebase
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Links:
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Timestamps:
(00:00) Intro
(01:57) The early days of Japanese startups
(04:08) The rise of Coin Check
(05:54) Challenges and opportunities in the Japanese startup ecosystem
(16:09) Cultural and structural differences in hiring
(19:47) Sponsor: Safebase
(21:22) The role of content and communication in Japanese startups
(31:29) LinkedIn vs. Facebook in Japanese work culture
(32:38) LinkedIn's social capital issues in Japan
(33:58) Cultural differences in asking for permission
(34:31) Navigating Japanese regulatory clarity
(36:49) The evolution of VC investment in Japan
(39:54) The rise of SaaS in Japan
(45:26) System integrators and software development in Japan
(50:39) Challenges in Japanese tech companies
(54:36) Opportunities for foreign companies in Japan
(55:03) The importance of commitment in the Japanese market
(57:08) Dev tools and viral adoption in Japan
(59:31) Japan's influence on global tech
(01:03:23) Wrap
