Disrupting Japan

Today we are going to break down some startup stereotypes. I sit down with Kunio Hara, co-founder and CEO of Beatrust and break apart the stereotypes of the uncreative Japanese enterprise and the young startup founder, and Kunio explains how Beatrust is already teaching old dogs new tricks. It's a great conversation, and I think you'll enjoy it. Show Notes How Japanese enterprises are different from their US large counterparts Things to know when starting a company in your late 50s Why older founders lead to more successful outcomes Challenges in breaking the age-hierarchy in Japan Can software actually make people collaborate? What it takes to get Japanese firms to innovate and collaborate freely Does Japan's management style have to change or can innovation happen within it? Why American companies will also soon have to change their work styles What new founders need to keep their eyes on when starting a startup Links from our Guest Everything you ever wanted to know about Beatrust Follow Beatrust on X @jp_beatrust Beatrust on Note Get in touch with Beatrust Connect with Kunio on LinkedIn Friend him on Facebook Leave a comment Transcript Welcome to Disrupting Japan, Straight Talk from Japan's most innovative founders and VCs. I'm Tim Romero, and thanks for joining me. I didn't really realize what this episode was about until I finished the editing. Oh, don't worry. I'll be introducing you to an innovative founder in just a minute, and we'll dive deep into their business and their market. But this episode is really about stereotypes, how much truth they really have and why they stay with us, and what we can do to change both the perceptions and the realities that underlie them. Today we sit down with Kunio Hara, co-founder and CEO of Beatrust, a startup that's focused on getting Japanese enterprises to break from their hierarchical structures and let their employees collaborate. Listeners who have spent time in Japan know that this is not an easy task, but as we explore this subject, it becomes clear that both the reality and the solutions are not as straightforward as the stereotype suggest. We also explore the stereotype of the young Rebel startup founder, and man that is a pervasive one. In 2007, a 22-year-old, Mark Zuckerberg famously declared that quote, young people are just smarter. Paul Graham explained in 2013 that investors tend to be skeptical of any founder who is over 32 years old. However, if you take the time to look at the real world results, the data actually show that older founders are much more likely to have a large value exit than younger founders. Kunio started Beatrust in his late fifties, and we talk about the positives and the negatives associated with that. But, you know, Kunio tells that story much better than I can. So let's get right to the interview. Interview Tim: So, I'm sitting here with Kunio Hara, the co-founder and CEO of Beatrust, who is modernizing corporate collaboration and culture in Japan. So, thanks for sitting down with me. Kunio: Yeah, thank you, Tim. Long time no see. Tim: Yeah, it has been a while since you're at Google. So Beatrust is focused on helping employees collaborate. This is important. Everyone agrees it's important. But it's hard. So what is Beatrust doing differently in this space? Kunio: We call our service talent collaboration tools because we try to define the new space and compare with other HR tech, especially talent management. What we do is mainly to help large organizations drive and facilitate more autonomous collaboration like cross functions. Tim: Okay. Yeah, that's challenging and in a bit, I want to dive deep into exactly how you do that. But before that, tell me about your customers. So, who's using Beatrust? Kunio: Obviously, large enterprise customers. They want to transform the culture to more innovative oriented,

Shota Nakagawa, the founder and CEO of Caster, shares insights into pioneering AI integration in Japan's workforce. He discusses how AI employees are addressing the country's labor shortage and why 90% of Caster's workforce consists of women. The conversation delves into Japan's unique approach to remote work, emphasizing flexibility and trust. Nakagawa also explores the skepticism surrounding AI in Japan and the potential for AI to manage critical tasks, all while providing a pathway for revitalizing rural areas.

Welcome to Disrupting Japan. Straight talk from Japan’s most innovative founders and VCs. I’m Tim Romero, and thanks for joining me. There is so much happening in Japan right now. Startups and innovation are beginning to reshape Japan with the same dynamism we saw during the post-war boom or the Meji-era re-opening. And I’ve been in the middle of this for a long time. I’m now a partner a JERA Ventures, but over the over 30 years that I’ve lived in Japan, I’ve started four startups here, worked at TEPCO Ventures, ran Google for Startups Japan, and, of course, I’ve been running the Disrupting Japan podcast for more than 10 years. Every episode, I sit down with friends, VCs, founders, and leaders who are shaping Japan’s startup ecosystem to give you an inside look at what’s really happening here in Japan. So, please subscribe and join me on this journey. I’m Tim Romero, and thanks for listening to Disrupting Japan.

Join Jumpei Yoshida, CFO of Kaminashi, a leader in SaaS solutions for frontline workers. He discusses Japan's obsession with paper and how it's slow to evolve. The conversation delves into the cultural barriers to digitization, particularly in blue-collar industries, and how foreign workers are spurring change. Jumpei shares insights on the unique sales cycles in Japan and offers advice for selling software to traditional businesses. This transformative journey is not just about technology; it's about reshaping workflows and trust in client relationships.

Most outside of the energy industry are (pleasantly) surprised to learn how aggressively startups and CVCs are pushing decarbonization forward. Decarbonization is a fascinating and incredibly important issue, so please join me on this short but special episode. It's a great conversation, and I think you'll enjoy it. 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 short episode. I wanted to share with you a panel discussion I moderated at the Global Corporate Venturing Asia Congress on the role that CVCs are playing in the green energy transition. It's an inside look at what some of the leaders in the field are thinking. You'll hear from Sophia Nadur, the managing director of APAC and Middle East at BP Ventures. Nicole LeBlanc, partner at Woven Capital, and Jim Aota, chairman of Yamaha Motor Ventures. You know, outside of the industry, a lot of people are surprised to learn just how active and supportive of startups global energy and transport companies can be and how they're working to push meaningful innovations into the marketplace. So here are some quick insights into how some of the world's leading energy related companies are working with startups to green our power system and transition us all to a sustainable future. We talk about the specific kinds of startups we're looking to invest in, the different ways we have to support and work with startups and what we see is the most exciting energy startup trends for the next three to five years. But you know, the panel tells that story much better than I can. So, let's get right to the interview.   Interview Tim: Okay, thank you so much. I am really looking forward. We're going to be talking about how CVCs are supporting and fueling the growth of energy startups all over the world. And to start off, I'd like to do brief, brief introductions because there's four of us here. So I'm Tim Romero, I'm a partner at JERA Ventures. JERA is a Japanese electric utility. We generate about a third of Japan's electricity. We're investing in decarbonization, new business models and energy and looking for the best companies globally to bring to Japan. I also, for the last 10 years, have been running the Disrupting Japan podcast that talks about VCs and startups in Japan. And this is important because this is being recorded to release on the podcast. So, you are all part of the show. Nicole: Hi everybody. Nicole LeBlace. I'm a partner with Woven Capital and longtime listener of Tim's podcast. So, we're the Growth Venture fund for Toyota. So, we look at growth stage companies typically that are able to work with Toyota across a number of different sectors. So energy that we're about to talk about here is certainly one, but also looking at supply chain automation. And if you think about mobility 3.0, connected cars, that sort of thing. Our team is mainly based here in Tokyo, including myself, but we also have people in the US and in the UK. Sophia: Hi, I'm Sophia Nadur, MD for Asia Pacific and Middle East at BP Ventures. BP Ventures is a global energy company. I am delighted to have Masaki Kaison, who's the head of BP Japan with me, such as the importance that we are placing on looking for investments in Japan right now. We have $850 million assets under management. We invest $150 million at least every year from our balance sheet. We invest in series A, series B, potentially series C companies who are scaling up energy transition related offers, which could include battery storage, offshore wind, solar, hydrogen, mobility, even retail and convenience. Even these areas are of interest to us and we are actively looking to invest in in Japan. We have two, nearly three investments in India, two in China, and two in Australia. Just in this region alone. Jim: Right. So, my name is Jim Aota and I am the chairman of the Yamaha Model Ventures,

In a captivating discussion with Jad Tarifi, founder of Integral AI and former chief of Google's first Generative AI team, we explore Japan's surprising advantages in the AI race. Jad shares insights on why robotics is crucial for AI advancement, critiques the humanoid robot trend, and offers strategies for startups to effectively compete against major players. He also delves into the philosophical aspects of AGI development, the alignment problem, and the importance of ensuring AI aligns with human values for a benevolent future.

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 Shizen Capital Connect on LinkedIn Follow Shizen Capital on X  @shizencapital I highly recommend Mark's blog Rude VC Follow Mark on X  @markbivens Follow Matt on X  @quanza Check out Mark's Nostr https://rude.vc/nostr Transcript Welcome to Disrupting Japan, Straight Talk from Japan's most innovative founders and VCs. I'm Tim Romero and thanks for joining me. Everybody wants to be Silicon Valley. Regional and local governments the world over proudly announced that they will be the Silicon Valley of, you know, whatever. We've seen Silicon Glen, Silicon Beach, Silicon Harbor, and countless other less publicized variations. Now, politicians calling out to Silicon Valley works fine as a metaphor, but you know, it's not really a plan. Well, the Japanese government has a plan and they are not looking to San Francisco, but to Paris. And today we're going to talk about that plan and so many other things as well. When we sit down with Mark Bivens and Matt Romaine, the co-founders of Shizen Capital, an early stage fund focused exclusively on Japanese startups. Now, Matt and Mark are both startup founders who became VCs, and that's still pretty rare in Japan. These VCs tend to be overrepresented on disrupting Japan because I don't know, it's a small group and I'm friends with a lot of them. But founders turned, investors are critical to the success of any startup ecosystem, and they're playing an outsized role in shaping what's happening in Japan right now. Mark, Matt and I talk about what's driving the changing attitude around M&A in Japan, which part of the government efforts to support startups are actually working and Japan's potential advantage in becoming a startup powerhouse in the coming years. But you know, Matt and Mark tell that story much better than I can. So, let's get right to the interview. Interview Tim: We're sitting here with Mark Bivens and Matt Romaine, the two founding partners of Shizen Capital. So, thanks for sitting down with me. Matt: Delighted to be here. Mark: Yeah, pleasure. Tim. I think I mentioned this privately to you before, but I'm pretty still relatively new in Japan. Seven years ago I moved here and you were my first source as I wanted to learn about the Japanese startup ecosystem. Tim: Well, thank you. Mark: Somebody introducing me to your podcast, so thank you. Tim: Well, no, thank you. It's been a great project and I'm glad this has kind of come full circle and I get a chance to sit here and interview you on it. Mark: I also have to say, in a past life I was a radio DJ. You have a great radio voice, Tim. Tim: Thank you. It's funny, people tell me that all the time, but this is just the way I talk, like normally. Well, thank you. So, let's get into it. So, tell me about Shizen Capital. Who are you investing in and why? Matt: Yeah, well, so I first met Mark in 2015 at a conference in Fukuoka. It was the B dash conference.

Explore how artists can thrive in an AI-dominated world with a solid three-point strategy. Discover the crucial differences between human and AI-generated art and the shift in music consumption from deep connections to fleeting abundance. The podcast delves into how AI is reshaping the creative landscape, encouraging artists to foster genuine relationships with fans. It also challenges the pressures of conformity in the industry and questions the true nature of creativity amidst the rise of AI.

Yuka Hata, Senior Managing Director of the Japan Investment Corporation (JIC), discusses Japan's proactive funding approach for startups. She highlights the challenges new Japanese VCs face, such as low valuations affecting deep tech ventures. The conversation delves into JIC's investment strategies, including support for female VCs and attracting foreign investors. Hata also explains the cultural shift needed in Japan's VC landscape and the importance of global partnerships for enhancing the startup ecosystem.

In this engaging discussion with Makoto Shibata, head of FinoLab and a fintech innovator for over 20 years, listeners explore Japan's unique fintech landscape. He discusses the crucial shift from cash to cashless payments and the startup opportunities that arise. Topics include AI's cautious integration in traditional banks, the importance of corporate support for fintech growth, and hurdles for Japanese startups aiming for global reach. Shibata also sheds light on the potential for fintech innovations and how foreign companies can thrive in Japan's market.