Episode 57: Japan startup Ecosystem in 2023 with Joshua Flannery
Nov 13, 2023
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Joshua Flannery, founder and CEO of Innovation Dojo Group, discusses the startup ecosystem in Japan. He talks about the roles of incubators and accelerators, the significance of vibrant startup cities, and leveraging overseas universities for global entrepreneurship.
Incubators provide an environment for startups to grow with access to mentors and resources.
Accelerators in Japan focus on market entry and collaboration with corporates to help startups achieve rapid growth.
Startup cities in Japan offer initiatives like startup visas and government subsidies to attract and support startups.
Deep dives
Incubators: Providing a Supportive Environment for Startups
Incubators are early-stage startup support systems that offer a conducive environment and needs-based support to help startups grow. They provide access to mentors, connections, and resources, both physical and online. Incubators can be managed by VC funds or other organizations and often focus on specific industries or geographic areas. The COVA Startup Hub in Japan, for example, provided on-demand support and connections to mentors, partners, and investors for both domestic and foreign startups.
Accelerators: Driving Rapid Growth and Market Entry
Accelerators, such as Y Combinator or Techstars, aim to help startups achieve rapid growth and become investable through intensive programs. In Japan, accelerators have evolved to include both domestic and inbound programs. These programs focus on market entry and match startups with Japanese corporates, providing opportunities for proof-of-concept projects and collaboration. Startups benefit from gaining a Japan-focused story and credibility, which can lead to partnerships, investments, and expanded market reach.
Sponsors of Accelerators: Corporate Support and Market Entry
Accelerators are commonly sponsored by corporate Japan, including telcos, banks, railway conglomerates, and trading companies. Corporate sponsors have various goals, from marketing and trend adoption to technology procurement or market expansion. Accelerator programs become a step before partnerships, investments, or commercial arrangements, offering startups the chance to work closely with corporates, provide solutions, and gain brand recognition in the Japanese market.
Startup Cities: Fostering Innovation and Collaboration
Startup cities, such as Tokyo, Osaka, Kyoto, Kobe, Nagoya, Fukuoka, and more, have become recognized for their strong value propositions in attracting startups and providing support. These cities offer various initiatives, including startup visas, government subsidies, and business matching events, to attract and support startups. Startup cities collaborate with each other and with corporates, creating an ecosystem that helps startups establish a foothold, gain corporate clients, and access wider markets in Japan.
Overseas University Innovation and R&D: Expanding Research Collaborations into Japan
Universities overseas are increasingly focusing on entering the Japanese market by setting up full-time representatives and channels of collaboration. They aim to bring cutting-edge technology, research capabilities, and intellectual property to Japan. Universities establish collaborations with Japanese corporates for research and development projects, license intellectual property, or create university-affiliated startups. This trend allows universities to leverage their portfolios to attract talent, gain recognition, and offer solutions in the Japanese startup ecosystem.
In this episode of Scaling Japan Podcast, we welcome Joshua Flannery, the founder and CEO of Innovation Dojo Group, delves into the key aspects of the startup ecosystem. He explores the roles of incubators and accelerators in fostering early-stage ventures. Joshua highlights the significance of vibrant startup cities as hubs for innovation and collaboration. Additionally, he shares insights on leveraging overseas universities' innovation and R&D departments for global entrepreneurship.
(30:31) Overseas university’s innovation/R&D/startup department and entering the Japanese market
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