Disrupting Japan

Japanese enterprises are particularly susceptible to disruption, and Japanese startups have a harder time than most pivoting. Both of these problems stem from the same root, and today we are going to dig up that root and have a look at it. Today we sit down with Shogo Kawada co-founder DeNA, and we talk about both the challenges of the company’s early startup pivots and the post-IPO difficulties they faced with new disruptive challengers. Shogo is now one of the most active and successful angel investors in Japan, and he explains how both the role and profile of Japanese angels is shifting. He also outlines the reasons why their presence is leading to several positive changes in Japan’s venture capital ecosystem. It’s a fascinating discussion, and I think you’ll really enjoy it. Show Notes How both eBay and DeNA screwed up auctions in Japan Why most business alliances fail Why startups will always have the advantage with new technology How to get started in angel investing The only thing the can force Japanese corporate VCs to change their structure Why the current startup bubble is different from the dot.com bubble What will happen when the current bubble bursts Why Japanese VCs never take technology risks Links from the Founder Follow Shogo on Twitter @shg A brief history of DeNA [shareaholic app="share_buttons" id="7994466"] Leave a comment Transcript Disrupting Japan episode 97. Welcome to Disrupting Japan, straight talk from Japan’s most successful entrepreneurs. I’m Tim Romero and thanks for joining me. Japanese startups have trouble pivoting. Business and social conventions make it really hard. Once the team, the company or the country has committed to a certain path, with Japan’s consensus-driven approach to decision-making and the importance placed on maintaining social harmony, it makes it very hard for an individual to stand up and say, “Hey everyone, I think we’re on the wrong path here.” Business convention in Japan requires you to simply pitch in and pull your weight. This is one of the reasons that Japanese companies, particularly the large enterprises are so susceptible to disruption. But some Japanese startups have been able to pivot their way through multiple business models and into a successful IPO and those are the ones that we need to study to find out how they did it. And today, Shogo Kawada, co-founder of DeNA takes us through the exciting story of one such case study. We talk about why DeNA was able to pivot relatively easily from auctions to commerce to mobile gaming but why it was unable to make the jump from web auctions to mobile auctions or from early mobile gaming to smartphone-based mobile gaming. We discussed the core reason for the problem and examine possible solutions. And we also talk about the rise of angel investors in Japan and how they’ve changed the way investing works here. But you know, Shogo tells that story much better than I can. So let’s hear from our sponsor and get right to the interview.   [pro_ad_display_adzone id="1404"  info_text="Sponsored by"  font_color="grey" ]   [Interview] Tim: So I’m sitting here with Shogo Kawada, the co-founder of DeNA. Thanks for sitting down with me. Shogo: Thank you very much. Tim: I’m sure most of our listeners know DeNA. It was one of the most important gaming startups of the .com generation. You founded it with Tomoko Nanba in 1999 and you’ve become one of the most active angel investors in Japan now. So before we dig into current investment trends in Japan, I want to back up a bit and talk a little about you and DeNA. Shogo: Basically, we started DeNA as an e-commerce company. It first started, it’s PC-based auction service in 1999. Tim: Okay. So originally, the idea was to compete with Yahoo Auctions and eBay? Shogo: Yes, exactly. When we started, at that time, there’s no Yahoo Auction. Yes,

FinTech in Japan is far more advanced than most outside observers imagine it to be, and based on new deregulation and government incentives, finTech in Japan is about to accelerate even more. Today we sit down and talk with Toshio Taki, co-founder of Money Forward, advisor to Japan’s Financial Services Agency, and the head of the FinTech Institute of Japan. He not only tells the story of the founding and growth of MoneyForward -- one of Japan's finTech success stories, but he outlines how the Japanese government’s plans to promote financial innovation while still maintaining the integrity and stability of the industry as a whole. The Japanese banking regulators are, at least in this sense, far less conservative than you think, and they are setting up a finical ecosystem in Japan that will lead to far more innovative finTech startups than we are seeing coming out of Europe of America. It’s a great discussion, and I think you’ll enjoy it. Show Notes How banking and credit card use is different in Japan Why most Japanese need multiple bank accounts Why finTech is evolving differently in Japan Who really controls household finance in Japan How Money Forward was reluctantly pulled into the B2B market How Japan's FSA is promoting finTech and financial innovation in Japan How the FSA is forcing Japan's banks to open up to innovation Links from the Founder The Money Forward homepage Japan's Financial Services Agency Connect with Toshio on LinkedIn [shareaholic app="share_buttons" id="7994466"] Leave a comment Transcript Welcome to Disrupting Japan, straight talk from Japan’s most successful entrepreneurs. I’m Tim Romero and thanks for listening. Okay. For all of you fastidious followers and fanatical fans of all things FinTech, I have a fantastic show for you today. We’re going to sit down and talk with Toshio Taki, co-founder of Money Forward, about how the Japanese government is forcing the banking sector to allow startups to innovate. Well, perhaps forcing is too strong a word, let’s just say that Japanese banks are being strongly encouraged to work with startups. Now, Toshio studied under Peter Thiel at Stanford before co-founding Money Forward which has become the leading personal finance app in Japan. He’s also an advisor to Japan’s financial services agency and the head of the FinTech Institute of Japan. After listening to Toshio, you’ll understand why the Japanese banking regulators are far less conservative than you might imagine them to be and why the Japanese financial sector is about to become a whole lot more competitive than what exists in Europe or North America. Of course, this being Japan, risks must be understood and managed. And Toshio walks us through the Japanese government’s blueprint for fostering financial innovation while still maintaining the integrity and stability of the industry as a whole. This episode is required listening for anyone who wants to understand the future of FinTech in Japan. And you know, Toshio explains that much better than I can so let’s hear from our sponsor and get right to the interview. [pro_ad_display_adzone id="1411"  info_text="Sponsored by"  font_color="grey"  ] [Interview] Tim: So I’m sitting here with Toshio Taki, the co-founder of Money Forward and head of the FinTech Association of Japan. Toshio: Cancelled meeting today and I’m very excited for this podcast. Tim: I’m glad to have you here because I think FinTech in Japan right now and Money Forward, it’s pretty amazing space to be in. Before we get started on the overall market, let’s explain what Money Forward is. I know it’s online financial management software that you sell to individuals and small business but tell us more about what it actually does. Toshio: Sure. In brief, Money Forward operates two types of businesses. One for the B2C where probably the most familiar name would be mint.com.

(Photo Credit: WurFi) This is a short and very personal episode. Things will be changing for me and for Disrupting Japan, and sometimes when you are facing a lot of big changes, it really helps to be able to share your thoughts with people you care about. That's you. There is no guest this time. It's a story about me and magic and chivalry and startups.  I hope you find something in it. Transcript Disrupting Japan Episode… well, that’s kind of complicated. Hi. Tim here. I’ve got some big news that I can only tease you with right now, but I wanted to share it with you in this special, short in-between episode.  There are no ads this episode, because … well, because this one is not brought to you by our sponsors, it’s too personal. It’s brought to you by me. Now, no one has ever been surprised to learn that I was a huge nerd in high-school. And this was back in the 1980’s, a very long time before nerds were even remotely cool, and female nerds simply didn’t exist. Actually, no I take that back. I’m sure there were female nerds back then, but social norms being what they were, they had to stay in the closet and hide their nerdy nature from the rest of the world while pretending to be interested in cheerleading and quarterbacks and what have you.  So I guess that the 1980s were a tough time to be a female nerd. Nerd liberation came later for girls than it did for boys, but the 80s were not a great time to be a male nerd either. Anyway,  I was on the debate team and spent my free time programming my Commodore 64, playing Dungeons & Dragons, and arguing the finer points of Tolkien's Lord of the Rings with my equally nerdy friends. Now over the years, I’ve given up on the idea of debate for debate's sake, upgraded my computer, and I haven’t played D&D since high-school graduation. However, I still enjoy Tolkien and find myself re-reading his books every decade or two.  The Lord of the Rings is a classic tale that is beautifully told, and generations of nerds have found in it not simply an enjoyable distraction, but as profound human insight and as inspiration on leading a life well lived. But recently, and as a result of this serial entrepreneur life I’ve chosen, the characters in The Lord of the Rings have been seeming a bit thin, and those of another novel have started to seem richer and richer. Back in high-school, I considered Cervantes’ Don Quixote an interesting enough story, but over the years as I’ve embarked on several radically different careers and started startup after startup, something about the novel started to resonate with me.  As the Lord of the Rings began to feel more and more like a well-told fairy tale, Don Quixote began to seem, well a little bit like me. For those of you who have not read the book in while or who have only seen one of the movies, all of which miss the core point of the book, let me explain Cervantes wrote Don Quixote more than 400 years ago, and he tells a story of a man who lived in a time of overdue bills, nosy neighbors and bickering politicians. It was a time when the world was filled with petty people with tiny dreams wasting their lives in mundane and meaningless pursuits.  Well, Quixote dreamed of a better world. A world where life had honor and meaning. He desperately wanted to live in an age of chivalry. A time of damsels in distress and knights errant, a time when there were still giants left to slay. He believed in his vision so passionately he began to see the world not as it was, but as it could be; as it should be.  Farmers became noble squires, peasant girls became princesses, and most famously, windmills became ferocious giants. Now Don Quixote is not a heroic figure. He never managed to change the world.  In fact, no one ever believed in his vision except for him.  The world viewed Don Quixote as a somewhat amusing, but a pathetic and pointless person.  When you read the novel, you get the impression that even Cervantes,

Two of the most persistent and damaging myths about Japan are that it is hard to start a company here and that it is hard to do business as a foreigner.  Well, those are not complete myths. Both of those things are indeed difficult, but no harder than they are in any other country. Today Marty Roberts explains not only how he started and rapidly grew a successful startup here in Japan, but how he got the Japanese government to pay for it. To contain health care costs, the Japanese government is pushing doctors to prescribe more generic drugs, and that is forcing the pharmaceutical industry to change they way they do business or to go out of business. Marty saw an opportunity in this shift, and his company has quickly grown to be the leader in its space. Marty also offers some very practical advice for anyone thinking of leaving a senior management role to start a startup. It’s a great discussion, and I think you’ll enjoy it. Show Notes How pharma sales is broken in Japan Why work is about to get a lot harder for Japan’s Doctors How Japan plans on cutting medical costs in the future Why enTouch needed services to sell software How to negotiate non-compete agreements with your current employer Getting funding from the Japanese government Why you don't want to invest in technology early How enTouch will survive the next phase of market distortion What needs to change about childcare in Japan Links from the Founder Find out more about enTouch Follow them on Facebook or LinkedIn Friend Marty on Facebook Connect with him on LinkedIn [shareaholic app="share_buttons" id="7994466"] Leave a comment Transcript Disrupting Japan Episode 95. Welcome to Disrupting Japan, straight talk from Japan’s most successful entrepreneurs. I’m Tim Romero and thanks for joining me. Work is about to get a whole lot harder for doctors in Japan. Japan’s rapidly aging population combined with a pressure to decrease costs in the National Health Insurance program means that doctors and well, all parts of Japan’s health care industry are going to have to do a lot more with a lot less. Of course disruptive innovation in health care is rare and frankly, that’s a good thing. Most advances in health care are steady if unpredictable incremental innovation, and we’re going to be looking at one of those today. Japan’s pharmaceutical companies are under pressure not just from the drugs going off patent but the Japanese government’s plans to drastically increase the percentage of generic drugs being prescribed by Japanese doctors. This means a lot less money flowing to pharma and Japanese pharma companies are scrambling to cut cost and remain competitive. Marty Roberts saw a startup opportunity here and he founded enTouch which provides what the industry calls remote detailing services. Now, this basically means explaining drugs to doctors online rather than face-to-face meetings but as you might expect, there’s a lot more to it than that and Marty soon discovered that it required a very specific Japanese twist to make this technology work here in Japan. Marty also provides some very sober advice for you if you are thinking of leaving a large company position to start your own startup. But you know, Marty tells this story much better than I can. So let’s hear from our sponsor and get right to the interview. [pro_ad_display_adzone id="1404" info_text="Sponsored by" font_color="grey" ] [Interview] Tim: So I’m sitting here with Marty Roberts of enTouch. A company that lets pharma reps more efficiently connect with doctors. I know that’s a really broad description, so can you explain a bit better what enTouch does? Marty: You did a pretty good job there, Tim. EnTouch is focused on helping pharmaceutical companies communicate better with doctors so that doctors know about newest medicines, newest trends in health care so that they can treat their patients bett...

Japan has a long history of small shopping streets and tiny markets. In fact, despite the population density, American-style mall culture never took off here. The back streets of even the most crowded downtown office districts are filled with little specialty stores and vegetable stands. Akiko Nishiura, the CEO and founder of Nokisaki, wants to see that culture spread even further in Japan, and her company is helping small merchants find physical spaces for pop-up shops, vegetable stands and food trucks. Nokisaki is connecting these small merchants, who need just a little bit of space, with commercial landlords who have a little bit of free space and are looking for some additional foot-traffic. It’s an interesting business model, and Akiko and I discuss how it will work outside of Japan or even outside of Japan's big cities. She also explains how Nokisaki survived a crisis that would have bankrupted almost any other startup — at least any other startup outside Japan. It’s a great discussion, and I think you’ll enjoy it. Show Notes Why parking is different (and difficult) in Japan How a new alliance is developing between big-brand stores and tiny retailers Why it's so difficult for Japanese moms to return to work after having kids How the Japanese market reacts to new challenges How a security risk shut down her company How Japanese retail culture differs from the West How Nokisaki will out-maneuver her much better-funded competitors Links from the Founder The Nokisaki Homepage Nokisaki Parking Nokisaki Business Nokisaki Parking on Facebook Nokisaki Business on Facebook Friend Akiko on Facebook   [shareaholic app="share_buttons" id="7994466"] Leave a comment Transcript Disrupting Japan, episode 94. Welcome to Disrupting Japan, straight talk from Japan’s most successful entrepreneurs. I’m Tim Romero and thanks for joining me. Napoleon supposedly once called England a nation of shop keepers. And while the comment was undoubtedly meant as an insult in the context it was offered, there’s something to be said in favor of being a nation of shop keepers particularly in this age of e-commerce, Rakuten, Amazon stores, and drop shipping. In fact, Japan, more so than the U.S. has a culture of tiny little neighborhood shops that have never been pushed out completely by big box stores, shopping malls, and chain stores even in the big cities. Well, today we’re going to sit down and talk with someone who’s accelerating that trend by making it easier for small shop keepers to pop up all over Tokyo. Akiko Nishiura, CEO of Nokisaki, connects commercial landlords with just a little extra space to small merchants who are looking for, well, just a little space. And in their spare time, the company is also trying to solve Japan’s horrible parking problems. The discussion of the company in the market alone would make this episode worth listening to. Akiko also shares a story of something that would have forced almost any Western startup into bankruptcy but due to the unique and frankly somewhat extreme notion of Japanese customer loyalty, it resulted in only a minor interruption of Nokisaki’s rapid growth. But you know, Akiko tells that story much better than I can. So let’s hear from our sponsor and get right to the interview. [pro_ad_display_adzone id="1411"  info_text="Sponsored by"  font_color="grey"  ] [Interview] Tim: I’m sitting here with Akiko Nishiura, the founder and CEO of Nokisaki. Akiko: Yes. Tim: Thanks for sitting down with us. Akiko: Thank you, Tim. Tim: Now, Nokisaki is a parking space sharing and space sharing startup but I think you can explain it much better than I can. So tell me a bit about what Nokisaki is. Akiko: Okay. Tim, have you ever heard the word “nokisaki” and do you know the exact meaning of nokisaki? Tim: I have to admit I didn’t know it until I looked it up. Akiko: Right.

Platform as a Service (PaaS) has been a difficult startup business model in the US, but Wayland Zheng, founder and CEO of Mobingi, has found a way to make it work in Japan. His approach involves a combination of leveraging both a unique feature set and some unique aspects of Japanese technical buyers. Wayland also shares his story of what is probably a record for the fastest time to startup launch for any foreigner in Japan. Within two months of landing in Tokyo, and unable to speak the language, he had settled on a startup idea, found a Japanese co-founder, and been accepted into one of the most competitive startup accelerators in Japan. Three years later, Mobingi has an impressive and growing list of clients and investors. We talk about how he made all this happen, the importance of accelerators, and how you need to tailor your startup not just to a rational business model, but to the business culture of the market. It’s a great discussion and I think you will really enjoy it. Show Notes How Mobingi saves it's customers 80% on AWS services Why DevOps disciple has been slow to develop at Japanese companies The important difference between security and compliance Why cloud sales in Japan requires face-to-face meetings How to start a company after only two months in Japan The important differences between Japnese and American startup accelerators Why China is a better expansion market than the US What is the future of PaaS and middleware Why simple honesty is sometimes surprising among founders Links from the Founder The Mobingi Homepage Mobingi Facebook page The Mobingi Blog Mobingi on Instagram Friend Wayland on Facebook Check out his blog Join a Mobingi Meetup [shareaholic app="share_buttons" id="7994466"] Leave a comment Transcript Disrupting Japan, episode 93. Welcome to Disrupting Japan, straight talk from Japan’s most successful entrepreneurs. I’m Tim Romero and thanks for joining me. You know, I get asked a lot about the difficulty of starting a company in Japan as a foreigner. I always have trouble answering that question because although I’ve started a number of companies in Japan as a foreigner, I have nothing to compare it to. I mean, I’ve never started a company in Japan as a Japanese person so I only have my own experiences to base a judgment on. Well, I’ve got good news. All foreigners who are griping about how hard it is to start a company in Japan can now officially stop complaining. I’ve got a pretty amazing guest and a pretty amazing story to tell today. I’ve got a pretty amazing guest and a pretty amazing story to tell today. Wayland Zheng started Mobingi only two months after arriving in Japan and he’s made a success of it. He attracted a co-founder, joined an accelerator, on-boarded customers, and raised funds all without speaking Japanese. Of course it wasn’t exactly easy. As you’ll see during the interview, it’s not even fair to say that he made it look easy. It was hard. But Wayland explains how he managed to overcome the language barrier and well, several other barriers as well. We’ll also dive pretty deep into startup accelerators, how they differ between Japan and the U.S. and what founders should reasonably expect out of them, because Wayland’s been to a few and sometimes, they did not work out as planned. But you know, Wayland tells that story much better than I can. So let’s hear from our sponsor and get right to the interview.   [pro_ad_display_adzone id="1404"  info_text="Sponsored by"  font_color="grey" ]   [Interview] Tim: I’m sitting here with Wayland Zheng of Mobingi. Mobingi is a platform as a service company but I know it’s so much more than that. Why don’t you tell us a bit more about what Mobingi is? Wayland: Okay. First, thanks for visiting my company. Mobingi is a software as a service. It’s a solution for helping companies to manage their application on the ...

It’s rare for a Japanese startup to challenge NTT and come out ahead. But that’s exactly what Takehiro Ogita and his team at TownWiFi have accomplished. TownWiFi is a mobile app that automatically detects and logins into available WiFi hotspots. Since TownWiFi was very modestly funded, Takehiro and his team relied on a better user experience and word of mouth to get the word out. Today we sit down with Takehiro and dive into that story, but we also look at the company's existing overseas userbase and his plans for global expansion on a shoestring. There is so much changing among Japanese startups right now, and Takehiro explains some of the social forces working for and working against new Japanese startups. It’s a great discussion, and I think you’ll enjoy it. Show Notes The universal problem with free WiFi What allowed TownWiFi to gather a userbase so quickly Why Rakuten produces so many startup founders Why Takehiro had to hide his startup from his family How TownWiFi managed to beat NTT in direct competition A common sense plan for global expansion How pivoting from a C2C to a B2B model saved this startup Links from the Founder The TownWiFi Homepage Takehiro's Blog  Friend Takehiro on Facebook And, of course, download the TownWiFi app [shareaholic app="share_buttons" id="7994466"] Leave a comment Transcript   Disrupting Japan, episode 92. Welcome to Disrupting Japan. Straight talk from Japan’s most successful entrepreneurs. I’m Tim Romero and thanks for joining me. Takehiro Ogita started TownWiFi as a simple way to allow Wi-Fi hotspots to be accessed and shared to mobile phones or mobile device users in general. There are a number of free Wi-Fi finding apps out there today but there are a few particularly interesting things about TownWiFi. First, unlike almost all their competitors, TownWiFi has found a way to monetize this app. And while they’re not yet profitable, they are earning revenue. Second, and I love this for so many reasons, the dominant player in this space, when TownWiFi launched their product was NTT and little TownWiFi has absolutely crushed NTT in the marketplace. Don’t get me wrong. I like NTT. I have friends at NTT. NTT is actually doing a lot of positive things in the area of corporate development and open innovation. The reason TownWiFi’s story is so inspiring is that it would have been absolutely impossible 10 years ago. Back then, NTT DoCoMo was not only the dominant mobile carrier but strictly controlled which apps would be allowed to be featured on their platform and sold to their subscribers. This may sound vaguely like the way Apple runs the App Store but it’s not. At that time, Japanese carriers would select one or two apps in each category, usually from closely associated companies and then lock everyone else out. Apps did not really compete with each other and there is no way that a serious challenger to the carrier’s own app let alone one made by an independent upstart would have been allowed inside their walled garden. Things are changing for startups in Japan, and when tiny little startups begin to beat NTT at their own game, it means great things are on the way. But you know, Takehiro tells that story much better than I can. So let’s hear from our sponsor and get right to the interview. [pro_ad_display_adzone id="1411"  info_text="Sponsored by"  font_color="grey"  ] [Interview] Tim: So I’m sitting here with Takehiro Ogita of TownWiFi. Thanks for sitting down with us today. Takehiro: Thanks for having me. Tim: TownWiFi is an app that helps you find free Wi-Fi hotspots but I know it’s more than that, and you can explain it better than I can. So why don’t you tell us what TownWiFi is? Takehiro: We are providing app which can auto-connect and authenticate to the public Wi-Fi. Our biggest point is that we are auto-authenticate, and auto-login,

This is a rather personal episode. We have no guests this time. It’s just you and me. We talk a lot about Japanese startups on this show and the role they will play in shaping Japan's economic future. Well, today we are going to look at this from a different angle; one that puts the hype aside and looks at some cold hard numbers. The result is sobering, surprising and,  believe it or not, kind of inspiring So let's get right to it. [shareaholic app="share_buttons" id="7994466"] Leave a comment Transcript Disrupting Japan Episode 91 Welcome to Disrupting Japan straight talk from Japan’s most successful entrepreneurs. I’m Tim Romero and thanks for listening  Once again, I’ve got a special show for you today. There will be no guests, no beer, no playful banter with someone speaking English as a second language. Today it’s just you and me. For the next 20 minutes, I’ll be whispering in your ear about something I consider very important, but that not enough people are talking about. It’s been a while since we’ve done one of these solo shows. They tend to among my most popular episodes, I get a lot of requests for them and I love doing them. I would like to do more, but you might be surprised at the amount of research and revisions that go into these solo shows. Not to mention the times when I get two-thirds of the way putting one together only to realize the primary thrust of my argument is flawed and the whole thing needs to be reworked. Unfortunately, I’m not really smart enough to just turn on the microphone and talk for 20 minutes.  It’s so much easier sitting down and talking to amazingly creative Japanese startup founders and innovators who are doing and saying crazy things.  Well, today, I’d like to share something with you that first occurred to me about a year ago. And the more I research it, and the more people I speak with, the more I become convinced it’s right.  I’ve haven’t talked about it a lot before, because well, frankly, it’s something that a lot of people in the startup community here will disagree with — and some will disagree in very strong terms. But it’s important, so let’s strap in and get right to it.     [pro_ad_display_adzone id="1404"  info_text="Sponsored by"  font_color="grey" ] Over the next twenty years, startups are not going to revive the Japanese economy, nor are they are they going to be the primary driver of innovation in this country. Don’t misunderstand, startups have a role to play, a very important role to play, but they will not be the primary drivers of change. No. Japan’s mid-sized companies will be the primary drivers of both large-scale innovation and economic growth over the next ten years. For this to make sense, we are going to look at the role that mid-sized companies play in the Japanese economy today, we’ll then step back in time both to see how things get this way and to understand why Japan is at such a pivotal juncture today, and then look at how thing are likely to shake out over the next 15 years or so. Now, to the average podcast listener, this would sound like a dry topic, but you as a DJ listener are a special breed, and you’ll be rewarded for coming with me deep, deep into the weeds. If you come along, I promise that in twenty minutes you will have a new way of looking at mid-sized companies in Japan, and perhaps a new way of looking at Japanese startups as well. You see medium-sized enterprises are the middle child in Japan’s corporate family. The large companies, the brands you know Toyota, Mitsubishi, Panasonic, Mitsui. For the most part are the remnants of the once incredibly powerful keiretsu groups.  These companies are the oldest child. Everyone knows who they are. They are in the news. They have influence. They work closely with the Japanese government, both the legislators and the bureaucracy, to ensure that the needs of Japan’s large corporations are reflected in national policy and international trade agreemen...

Most great startup ideas don’t grab your attention right away. It takes a while before the founder’s vision becomes obvious to the rest of us. On the other hand, the startups that immediately grab all the press attention often go out of business shortly after shipping their first product. Reality never seems to live up the to promise. And then there are products like Orphe. This LED-emblazoned, WiFi-connected, social-network enabled dancing shoe seems made for fluffy, flashy Facebook sharing, but only when you really dig into it, do you understand what it really is and the potential it has in the marketplace. Today we sit down with Yuya Kikukawa, founder of No New Folk Studio and the creator of the Orphe, and we talk about music, hardware financing, and why this amazing little shoe is finding early adopters in places from game designers to hospitals. It’s a great conversation, and I think you’ll really enjoy it. Show Notes The inspiration for musical shoes Why Yuya's first musical instrument attempt was a failure The biggest challenge in moving from prototype to production Orphe's technical specs How Orphe is being used in hospitals and other healthcare applications How small Japanese startups can achieve global distribution Where the next big startup opportunities in Japan will be Why most hardware startups fail Links from the Founder No New Folk Studio Hompage See Orphe in action Check out Yuya's blog Follow Yuya on Facebook Check out PocoPoco on YouTube [shareaholic app="share_buttons" id="7994466"] Leave a comment Transcript Disrupting Japan, episode 90. Welcome to Disrupting Japan, straight talk from Japan’s most successful entrepreneurs. I’m Tim Romero, and thanks for joining me. You know, most good startups are obvious. I don’t mean that I could have had the idea before the founders did. By obvious, I mean that right away you can understand the problem the company is solving for their customers and how they’re doing it. Naturally, that makes it easier for the customers to buy. Most non-obvious startups are in reality still struggling to find the product market fit and are probably not long for this world. And then there are products like Orphe, an LED-emblazoned WiFi-connected social sharing enabled dancing shoe. Yeah, it sounds like something you would find on Indiegogo and that one time not too long ago, it was. But when I sat down with Yuya Kikukawa, founder of No New Folk Studio and the creator of the Orphe, it became clear that this was not some quirky side project or some overfunded crazy hardware startup. This was something really different. We talked about the original inspiration for the shoe and what does and does not qualify as a musical instrument and how Orphe is being used by the artistic community in Japan. But we also dive into the technology inside it, and that, well, that’s something special. That’s why this quirky little blinking shoe is starting to get used by game and UI designers, as well as hospitals and sports trainers in Japan. It’s a fascinating discussion but you know, Yuya tells the story much better than I can. So let’s hear from our sponsor and get right to the interview. [pro_ad_display_adzone id="1411"  info_text="Sponsored by"  font_color="grey"  ] [Interview] Tim: I’m sitting here with Yuya Kikukawa of No New Folk Studio. Thank you for sitting down with me. Yuya: Thank you for inviting. Tim: Now, you guys make Orphe which is an LED dance shoe but it’s so much more than that. Can you describe what Orphe is exactly? Yuya: Yeah. Orphe is kind of world’s first smart LED shoes. Smart means it has a computer inside of the sole, at the same time there are about 100 full color LEDs. The computer can control each pixel. So the user can change the color through the smartphone application. Tim: Okay. It’s always so hard to describe dance and visual effects on an audio podcast.

After the March 2011 earthquake and the explosions at the Fukushima nuclear power plant, TEPCO and the Japanese government tried to assure us that everything was just fine. The repeatedly insisted that there was no serious danger posed by the radiation. Not very many people believed them. Reliable data from fallout areas was sparse at best, and many Japan residents doubted that the government was telling the truth in the first place. It was in that environment that Pieter Franken and his team created Safecast. Safecast began as a small group in Japan with home-made Geiger counters making their reading available to everyone. They have now grown into an international movement involving private citizens, universities, non-profit organizations and government agencies. Pieter also explains why environmental science will look very different ten years from now. It’s a fascinating discussion, and I think you’ll enjoy it. Show Notes for Startups Why Japan's disaster preparation failed Why you need high-resolution and high-density radiation monitoring Why citizens do not,  and perhaps should not, trust their governments The advantages of creating a DYI kit rather than a product How to maintain data integrity for crowdsourced efforts Why both pro-nuke and anti-nuke activists opposed Safecast How governments have reacted to alternative data sources Safecast's plan to win over the scientific community The future of citizen science Links from the Founder Everything you wanted to know about Safecast Safecast's radiation maps Safecast's radiation report Connect with Pieter on LinkedIn Follow him on Twitter @noktonlux [shareaholic app="share_buttons" id="7994466"] Leave a comment Transcript from Japan   Disrupting Japan, episode 89. Welcome to Disrupting Japan. Straight talk from Japan’s most successful entrepreneurs. I’m Tim Romero and thanks for joining me. You know, crowdfunding and crowdsourcing in Japan largely gained in its popularity in projects related to the massive March 2011 earthquake, and ensuing tsunami, and the release of radiation at the Fukushima Nuclear Power Plant. In fact, longtime listeners have heard the founders of some of Japan’s largest crowdfunding and crowdsourcing companies explain that breaking away from this image of crowdfunding as a social good was something that they had to overcome before their startups became truly successful. Well, today we’re going to sit down with Pieter Franken of Safecast, one of the earliest examples of widespread crowdsourcing in Japan. And we talk about how they’ve grown from a Japanese patchwork solution to the leader of a global movement. After the Fukushima nuclear disaster, people throughout Japan were worried about radiation. TEPCO, who operated the facilities and the Japanese government assured everyone that things were under control and that everyone was perfectly safe. As you might imagine, however, most people were highly skeptical of these claims. The radiation data just wasn’t there or it wasn’t being shared with the public or it wasn’t believed when it was shared with the public. Pieter and his team started Safecast to make sure that lack of information and lack of transparency would never happen again and they began building low-cost Geiger counters that people around the country and then around the world could use to measure their local area and then have all that data uploaded into the cloud and made available for anyone. It’s an amazing story and it’s one that Pieter tells much better than I do. So let’s hear from our sponsors and get right to the interview. [pro_ad_display_adzone id="1404"  info_text="Sponsored by"  font_color="grey" ] [Interview] Tim: So I’m sitting here with Pieter Franken of Safecast. You guys make an open environmental data collection system for everyone but I think you can explain much better than I can what it is.