Disrupting Japan

Bio-tech is messy because life is complicated. A lot of attention is given to computers sequencing genomes, but some of the most advanced and important work is done by studying and using other living things to make our own lives better. Kenta Yamato co-founded Kaico to commercialize a technique that uses silkworms to manufacture small-batch custom proteins. And Kico is involved with everything from veterinary medicine to Japan's search for a coronavirus vaccine. We also talk about the challenges or creating startups based on university technology and the one e-commerce model in Japan that just won't go away. I think you'll enjoy the conversation. Show Notes How to get proteins from a silkworm (It's not fun for the silkworm) Why silkworms, in particular, must be used The importance and uses of small-batch, custom proteins The start of a silkworm startup The most common (and least successful) Japanese e-commerce model Why it's so hard for Japanese universities to spin-out startups How Kaico silkworms are part of the fight against covid-19 How to scale a silkworm startup Links from the Founder Everything you ever wanted to know about Kaico Friend Kenta on Facebook Connect with him on LinkedIn A Kaico video explainer Leave a comment Transcript Welcome to Disrupting Japan, straight talk from Japan's most successful entrepreneurs. I'm Tim Romero and thanks for joining me. Today, we're going to be talking about worms. No, no, wait, don't go, I promise this is going to be really interesting. Today, we're going to sit down and talk with Kenta Yamato of Kaico, a Kyushu-based startup that is using silkworms to rapidly produce custom small-batch innovative proteins that are used for bio-research, medicine, and they play a part in Japan's search for coronavirus vaccine. It's a fascinating process but admittedly one that's not particularly fun for the silkworms themselves. We also talk about the most popular and most unsuccessful e-commerce business model in Japan, the challenges Japanese universities in spinning out startups, and we even cover some practical solutions to that problem. But you know, Kenta tells that story much better than I can, so let's get right to the interview. Interview Tim: So I'm sitting here with Kenta Yamato of Kaico, a company that uses silkworm to produce specific protein used in medical tests and vaccine, and thank you for sitting down with me. Kenta: Yes, thank you for me and I have a very pleasure to explain our company's story. Yeah, thank you very much. Tim: It's great to have you on the show. I tried to explain very briefly what Kaico does, but I think you can explain it a lot better than I can, so at like a high level, what does Kaico do? Kenta: We started Kaico two years ago in 2018. Kaiko means silkworm in English. Maybe you know silkworm can make silk for clothes, but we will use this kaiko silkworm for making proteins. We are a startup company from Kyushu University and our products are many proteins, the protein the other companies cannot make because it is difficult to make it. We make this protein by silkworm. Tim: So if I understand the basic process, you inject the silkworm with a virus containing the target gene, and then it makes the proteins as part of its silk, and then you extract the proteins from the silk? Kenta: No, no. First, we'll incorporate the gene of target protein into baculovirus, so this baculovirus is safe for us humans and animals, but baculovirus damage to only silkworms and we will insert this recombinant baculovirus into silkworm and their body can make the specific protein in their cell, and finally, we'll collect and purify the body liquid from the silkworm. Tim: Okay, so it's not from the silk, it's from the silkworms themselves that you extract the proteins. Kenta: Yes, we don't use silk. Tim: Okay. So why silkworm? Is there something about silkworms that makes it easy to generate protein...

We have always loved maps. Maps combine artistry and utility in a way that very few disciplines allow. But of course, it's always been a trade-off. The beautiful, ornate maps from centuries past told you where the major landmasses were, but provided little detail. And today's GPS-based maps provide an unprecedented level of accuracy but uninspiring in their presentation. Machi Takahashi, founder and CEO of Stroly, has a best-of-both world's solution. We also talk in-depth about the unique challenges facing women founders in Japan, and what can be done to make things better for everyone. It's a great discussion, and I think you will really enjoy it. Show Notes Strolling with stories: How Stroly works How to make Google Maps community-oriented How Stroly pivoted to prosperity during Covid-19 How industry will be using VR after Covid-19 ends Why corporate spinouts are so hard in Japan Why Japan has problems commercializing fundamental research The challenges female founders face in Japan How Japanese women are taught they should not really be CEOs Why Japanese startups need to think globally Links from the Founder Everything you ever wanted to know about Stroly Connect with Machi on LinkedIn Women's Startup Labs Ari Hori on Disrupting Japan Leave a comment Transcript Welcome to Disrupting Japan, straight talk from Japan’s most successful entrepreneurs. I’m Tim Romero and thanks for joining me. One of the most common themes on Disrupting Japan is the intersection of tradition and high technology. Stories about what things that we’ve known and loved for generations can teach us about how we should use technology today. Now, I’m not sure how much of this is due to the fact that I personally find such startups fascinating and important, and how much of it is due to the fact that there’s something about Japanese startups and Japanese culture that encourages and appreciates these kinds of innovations. Well, today, we sit down with Machi Takahashi of Stroly and we discussed that while mobile GPS mapping is awesome, there’s something important that we’ve lost in our rapid adoption of that technology and it’s something that Stroly is bringing back. We also look into how COVID is not only changing things but changing some things for the better and how this is really a time for innovative startups to shine. And we also talk in some detail about the challenges women founders face in Japan and some simple ways to improve the situation. But you know, Machi tells that story much better than I can, so let’s get right to the interview. Interview Tim: I’m sitting here with Machi Takahashi, the CEO of Stroly, so thanks for sitting down with me. Machi: Thank you, Tim, for having me. Tim: Stroly makes custom maps that are overlaid onto Google Maps, but I think you can explain it a lot better than I can, so why don’t you explain briefly what Stroly is, how it works? Machi: Okay, sure. So, Stroly is our company name and also the name of our service and it means to stroll with story, so we came up with this idea to combine illustrated maps with GPS positioning while we were developing a new guide system for a theme park, and instead of choosing Google Maps, we chose to use this beautiful hand-drawn illustrated map of this theme park and we came up with this technology to combine these latitudes and longitudes on top of these illustrated maps. Tim: Okay, so when people are visiting the theme park, instead of looking at Google Maps or Apple Maps as they are wandering around the park, they would look at those kind of cute hand-drawn illustrated maps and they’d navigate on top of that? Machi: Right, exactly. So, we have this technology where we can adapt these GPS positioning on top of any kind of a map in any form so people can actually exaggerate some of the spots in the map, and then actually draw some of the spots in the map.

You don’t usually think of Japan’s geisha as being an industry, but it is. In fact, strictly speaking, it’s a cartel. A cartel that is now being disrupted by internet-based booking agencies and low-cost substitutes. It seems that even geisha are not immune to internet-based disintermediation. In this special interview Sayuki, Japan’s only geisha who also holds an MBA, explains the business model behind geisha. We talk about the way things used to be, the current threats that have many geisha concerned that the traditional art form and the lifestyle will not survive, and how some geisha houses are trying to adapt. This is a rare, behind the scenes look at the business of being a geisha and a chance to see how Japan’s geisha might survive and even thrive in the coming digital age. It’s a fascinating discussion, and I think you’ll enjoy it. Show Notes for Startups How Sayuki broke 100 years of tradition to become a geisha How geisha are being challenged by both the entertainment and tourism industries Changing geisha from a private art to a public one Why geisha might not survive the modern era of tourism The geisha cartel is being challenged, and why that's not good for anyone The challenge modern geisha face on social media The changes in training for the next generation of Japan's geisha Links from the Founder Sayuki's home page  Follow her on twitter @sayukiofasakusa Become her patron on Patreon Follow her on Facebook Book a geisha experience Geisha Banquet in Tokyo Private Custom Shopping Tour with a Geisha Private Lunch with Sayuki Kimono Shopping Tokyo Tour [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 joining me. I’ve got a great Selects show for you today. We sit down and talk with Sayuki a geisha. An actual geisha. and she also holds an actual MBA from Oxford. It’s a great conversation that breaks down the business model of running a geisha house, and it's a lot more complex than you might imagine. A lot of people talk about disrupting traditional business models, but this is a truly traditional business model. And we also talk about how the Internet and social media is threatening to complexly destroy it. There are a lot of people wondering if geisha will survive this. In fact, there are a lot of geisha wondering if geisha will survive this. It’s a story involving centuries-old cartels in new turf wars, counterfeit goods knowingly being sold over the internet, and the challenge of getting maiko off their social media accounts long enough to train them. Although that last one is both a problem and a potential revenue stream. Anyway, please enjoy the conversation, and I’ve got an update for you at the end of the show. Intro Today I’ve got something really special for you. We are going to talk about the kind of business that you’ve probably never heard any details about. Today we’re going to sit down and interview Sayuki, a Geisha. And since this is Disrupting Japan, we’ll be talking about the business side of being a Geisha. We’ll look at the Geisha business model and examine how it’s being disrupted by modern technology. And believe me, it really is. Now, listeners outside Japan might not understand how special this opportunity is. Traditionally, Geisha are not really supposed to talk about their business. Geisha create the illusion of comfort, beauty, and elegance, that is unsoiled by such base things as money. But make no mistake about it; it’s an illusion. Geisha is a very serious business and Sayuki, who also has an MBA from Oxford, has agreed to sit down and walk us through it. In fact, from a business point of view, Geisha are an established cartel that are being disrupted by new technology, the internet, and tourism websites in particular,

They probably mean well. They are telling you something that is easy to understand and that seems like it's true at first, but it's still a lie. I received an overwhelming response to my recent episode on success via public humiliation, and more than a few people tried to set me straight about how Japanese keigo is supposed to be used, so today I'm going to return the favor. Don't worry, this is not a Japanese lesson, at least not in the pedantic sense, but it might clear up a few of the lies you've been told, and perhaps even repeated about how honorifics are used in Japan and in Japanese business in particular. Please leave a comment because I would love to hear your thoughts on this. Show Notes Feedback on Failure How you are being lied to Why keigo is not about social status or individual respect How to insult by being polite Actually showing respect Leave a comment Transcript Welcome to Disrupting Japan, straight talk from Japan's most successful entrepreneurs. I'm Tim Romero and thanks for joining me. While the coronavirus lockdown continues to disrupt Disrupting Japan’s production schedule, whatever stage of lockdown or reopening you might be in right now, I hope you're doing well. Today I’m going to point out something that every Japanese language textbook I have ever seen gets completely wrong.   Feedback on Failure But before that, I want to thank you for all the emails and messages you sent in response to last month’s episode on how public humiliation has been my secret to success in Japan. It was a hard one to make, but it seems like it really resonated with a lot of listeners, and the feedback was really overwhelming. So, thank you for that. There was also, however, some comments about my difficulties speaking keigo and my description of it as a “mind-boggling complex protocol of honorific and humble forms whose use depends on a non-linear, three-dimensional matrix of formality, in-group out-group status, and the role you are playing in that particular interaction.“ OK. I admit I was a bit overdramatic there, but quite a few people emailed to tell me that keigo was actually quite logical and very straightforward as long as you keep in mind a few simple rules. It is something, they asserted, that can be mastered in a few years of serious study. OK. Yeah, maybe. But it’s interesting to note that all the emails telling me how easy keigo is, came from non-Japanese. Among the emails I got from my Japanese fans, only two mentioned my keigo comments at all, and they both sympathized, saying that they also make mistakes sometimes. In fact, one of them even mentioned that she can’t understand why anyone thinks rakugo is funny either. So hey, maybe it’s my sense of humor, and not my language ability that’s the problem here. But to those non-native speakers claiming keigo is simple and straightforward. Well OK, perhaps you have a gift for it. Perhaps its really clicked for you. You almost certainly have a better command of it that I do, but maybe you should consider, that just perhaps, you don’t understand it as well as you think you do.   How you are being lied to In fact, I will go further than that. Every Japanese language textbook I have ever seen completely misrepresents both what keigo is and how it is used. It’s almost always defined as a “means fo showing respect to individuals with higher social status”. And that’s just wrong! It is not about showing respect to individuals and it has nothing to do with social status. Sure, that definition might be useful for people with short attention spans or who know little about Japanese society. But fortunately, Disrupting Japan listeners have proven themselves as having long attention spans and they know a thing or two about Japanese society. So let’s dig into this. If you are a non-native speaker, by the end of this short episode, I promise you’ll have a new way of looking at keigo. OK.

Oracle first came into Japan more than 25 years ago, but the challenges they faced and overcame then are exactly the same ones firms are facing today in executing their Japan market entry. Allen explains why Oracle needed a unique sales and marketing strategy for Japan, and how he managed to get buy-in from headquarters — even though Oracle already had a sales and marketing program that had proven fantastically successful in other markets. We also talk about how Oracle managed to negotiate a amicable exit out from their exclusive distribution agreements not just once, but twice. That’s an amazing accomplishment considering that many foreign companies have destroyed their Japanese business the first time they attempt it. But Allen, tells the story much better than I do. I think you’ll enjoy the interview. I know I did. [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 joining me. Update Japan is slowly opening up again. The official “unofficial” lockdown ended at the beginning of June. Restaurants, bars, and shops are reopening with a lot if plastic curtains and sheeting separating patrons and proprietors.  It’s a long way from normal, but it's better than being stuck in the house. International travel is mostly shut down, but domestic travel is really picking up. It seems most of the hotels and resorts in Okinawa are already booked solid for the summer by Japanese who would normally be flying to Hawaii. And Okinawans, grateful for the business, but still nervous about the virus, have some pretty mixed feeling about that. And of course, with international travel shut down, and all the trade shows canceled, most foreign startups have put their Japan market entry plans on hold. And that’s normally a lot of activity. If you are a B2B startup you need to be looking at Japan. It can be a hard market to crack, but it’’s a lucrative one. So today, I want to re-share what is one of the most amazing Japan market-entry stories of all time. It has ambition, misdirection. drama, serious career-risk, and rock-concerts.  It’s an old story, but a good one. The technologies have changed since then, but the challenges and the strategies haven’t. Intro To kick things off today, we’ll get a chance to sit down and talk with my good friend Allen Miner about the challenges Oracle faced, and overcame, when breaking into Japan. I’ll warn you in advance that this episode is longer than most, and believe me, I cut things to the bone. But there is just too much great information about how to overcome both the personal and professional challenges that foreign companies face here. I felt like I would be cheating you if I edited out any more. In fact, Allen explains how Oracle successfully maneuvered out of an exclusive distribution agreement, not only once, but two separate times. This is something that has sunk more than one foreign company here. But Allen tells the story much better than I can, so let’s get right to the interview. [pro_ad_display_adzone id="1411" info_text="Sponsored by" font_color="grey" ] Interview Tim: So I’m sitting down here with Allen Miner and Allen, you’ve been involved with the market entry of a lot of companies into Japan. But today I want to focus on the one that you led personally, which was Oracle Japan. So let’s back up. What was attractive about the Japanese market? What made Oracle decide that they needed to be in this country? Allen: Actually, that happened a few years before I joined Oracle. In, I believe it was 1982, Oracle was about a $5 million a year company worldwide, 5 years old as a company, and just released their first commercial version of the Oracle database software. There was quite a bit of press about, “How interesting is this relation to technology? It doesn’t require traditional programming to do data manipulation...

You would expect that event-focused startups would be some of the hardest hit by the global pandemic and lockdown, and for the most part, you would be right. But Peatix is one event startup that adapted fast and is now actually thriving during the lockdown.  We've talked with Taku Harada before, and if you have not done so already, you should check it out. It's a great conversation and there is no overlap with today. Today we talk about how startups can pivot and survive during the pandemic, why having too much money can be a curse for startups, and we dive into what's gone wrong with Japanese B2B SaaS startups. It's a great discussion, and I think you will really enjoy it. Show Notes How an evets company pivots during Covid-19 What makes a good online event Will people play for online events What will be the long-term behavioral changes from the lockdown The surprising secret to scaling a social network Tips for Japanese who want to run an international startup The trap of startups having too much funding What's wrong with Japan’s SaaS companies Why Japanese enterprise has too much influence on startups The importance of an ecosystem is not what you think  Links from the Founder Everything you ever wanted to know about Peatix Friend Taku on Facebook Follow him on twitter at @takumeister Petix on YouTube Leave a comment Transcript Welcome to Disrupting Japan, straight talk from Japan's most successful entrepreneurs. I'm Tim Romero and thanks for joining me. Today we get a chance to sit down with (at a very safe social distance) with Taku Harada the founder of Peatix, and we’ll talk about how this particular event planning and booking company is not only surviving but thriving during this covid crisis. And hey, this is the very first DJ episode I’ve released, where I’ve interviewed someone over video conference.  Oh, I’ve recorded a few interviews that way them before, but I’ve always found something lacking. Something impersonal and not fully connected when you talking to an image on a screen rather than a person in the same room. But this time was different. Maybe because Taku and I are old friends, or maybe just because we all, myself included, are getting more used to living our lives online. So we’ll be doing more interviews this way, at least until things return to the way they were in the before times. This is actually the second time we’ve had Taku on the show, but this is all new information, and I strongly encourage you to go listen to the other interview. It’s a great discussion about the things no one ever tells you when you first start your startup. I’ll have a link to that episode up on the site But today we are going to talk about how to build, and expand, your customer base during lockdown, some things you should know about fundraising right now, and what the hell is wrong with Japanese B2B SaaS companies. But you know Taku tells that story much better than I can, so let's get right to the interview. Interview Tim: So, I’m sitting here with Taku Harada of Peatix, the event ticketing and promotion service. Thanks for sitting down with me. Taku: It’s great to be back, I guess. We talked several years ago. It’s nice to see you again. Tim: Likewise, and we’re being very appropriately socially distanced here, you being in New York. Taku: Very much. Tim: Yeah. Yeah, actually, you were one of my very first guests on the show and that was, man, almost six years ago now. Taku: Was it six years ago? Tim: Yeah, 5 ½, six years. Times change. Taku: When was it, 2013 or so? I’m curious to find out what I had said back then, if it matches up with the way I’m thinking right now. Tim: Yeah. We finished off a bottle of wine at the old engine yard office in Tokyo. Taku: Yeah, an Ebisu, right? Tim: Yeah. Now, it was a really great interview and we’re not going to cover the same ground again today although I mean,

I've never managed to find a direct road to success. My bio reads like a random walk down many different career paths, so I always feel unqualified to answer when people ask me for career advice. Today, however, I'd like to share one insight about doing business in Japan that I learned the hard way. If you've been through something like this, I hope you'll be able to identify with it. If you haven't, I hope you can learn something from it, and avoid it. Please share your experiences in the comments. Show Notes More life lessons from Mark the Dog Japanese fluency is an odd target What's worse than any horror movie plot? Success via humiliating failure How good does your Japanese need to be to do business in Japan? Leave a comment Transcript Welcome to Disrupting Japan, straight talk from Japan's most successful entrepreneurs. I'm Tim Romero and thanks for joining me. Today I want to tell you the story about one of the most embarrassing and publicly humiliating events of my life, and something very important it taught me about doing business in Japan. Before we get to that, however, I received a lot of great feedback from the last episode on the Japanese trap of the Glorious Failure, including a number of Japanese listeners who said they really liked Taniguchi-bucho’s explanation of corporate Japan’s negative point system. (More) Advice from Mark the Dog But by far the most popular request was for pictures and more life lessons from Mark the Dog. Well, OK. I’m going to do that, but please understand that this is not a very deep well. There is only so much Mark the Dog can teach us about how we should live our lives, because after all, Mark the Dog, is … well, he’s a dog. So I’ll put a couple of pictures of Mark the Dog on the website, (Yes, he is very cute), and I’ll let you know that there is, in fact, one more thing that Mark the Dog has taught me during the ongoing lockdown. Mark being a good boy. This was my wife's idea. Meet my PA, Mark.   You know how dogs get really excited every time they hear a little noise outside or see something move past the window? Or how they become nearly hysterical whenever someone rings the doorbell or comes to the door? Well, I get that now. I totally understand where dogs are coming from on this. The other week two pigeons landed on my window sill, and I got way more excited about that than I probably should have. So hey to all the world’s dogs; we're cool on the doorbell thing. No judgment here. OK, back our main story about my path to success via public humiliation.   Japanese fluency is an odd target One of the things people always say when they find out I’ve been living in Japan for almost 30 years is “Wow. How good is your Japanese? You must be fluent!” I never really know how to answer that. I’m definitely not fluent. I mean, I’m not trying to be overly humble here, my Japanese is good. I manage staff in Japanese. I do sales in Japanese. I do presentations in Japanese. So it’s good. But fluent? No. Often when I try to explain a complex or abstract thought, I manage to get lost before I find my way to the verb. I can’t get into a heated argument in Japanese. And I usually don’t understand most of the jokes. My wife loves rakugo, which is a popular Japanese form of comedy storytelling. They are these long shaggy-dog stories that people find hysterical, and I can understand 100% of the story, but I can’t for the life of me see how any of it is funny. And then of course, there is keigo. The mind-boggling complex protocol of honorific and humble forms whose use depends on a complex three-dimensional matrix of formality, in-group out-group status, and the role you are playing in that particular interaction. Frankly, once I get past basic greetings and a few set phrases, I tend to screw it up pretty badly. But, as I mentioned, keigo is hard,

Japanese businessmen famously fear failure. But that understanding is horribly incomplete. In fact, there is one type of failure that is admired, almost sought after, in Japan. Today we take a look at the trap of the Japanese glorious failure, see how it's hurting startups, and examine our options on fixing it. Show Notes Life lessons from Mark the Dog When and why failure is feared in Japan What is a Glorious Failure, and why it is admired How the Glorious Failure is hurting Japanese startups What is (probably) the only way to fix this Leave a comment Transcript Welcome to Disrupting Japan, straight talk from Japan's most successful entrepreneurs. I'm Tim Romero and thanks for joining me. I'm recording this episode for release on April 28, 2020. I usually try to make all Disrupting Japan content evergreen. Most of the insights you hear on Disrupting Japan about starting companies in Japan, or building a customer base, market testing, or doing business here will probably be just as valid in ten years as the day it was recorded. And in some ways, this episode is no exception. The common wisdom is that Japanese. and Japanese founders in particular, are too risk-averse and have too great a fear of failure. Well today, we are going to turn that view on its head. I’m going to explain that, in truth, Japanese founders don’t fear failure enough, and that’s hurting Japanese startups here. You know, actually, maybe I am being too pessimistic. Maybe ten years from now, you and I will listen back on this episode and laugh at how things used to be and smile when we think of how much has improved. Well, maybe. But before we start talking about why Japanese founders need to fear failure more, I want to say something about the coronavirus situation, at least as it stands in late April 2020. The world might have changed a lot since then. Tokyo is currently on official, but actually unofficial, lockdown. There are clusters of idiots in the parks, but most people seem to be taking things seriously. If you go outside, the police won’t arrest you, but they might ask you where you are going, and ask you to consider if you really need to be out. There is no real punishment or anything, but they make you feel kind of guilty, and that seems to be enough to keep most people indoors. The operations of the Disrupting Japan Studios remain largely unaffected by the shutdown, but that mostly because, Disrupting Japan Studios broadcasts from inside of my wife’s walk-in closet. The acoustics are great in here, but it can get a bit cramped. So for the past six weeks or so, I’ve been staying in the house with my wife Ami and my dog Mark. And you know, Mark the dog has taught me perhaps the most important lesson about how to deal with the corona crisis and the lockdown. Mark the dog, he doesn’t really know what’s going on. All he knows is that my wife and I are home all the time, and he’s never alone. There is always someone to lean up against, or play with, or give him some attention. Mark the dog, doesn’t worry about what might happen tomorrow, and I don’t think he really remembers what happened yesterday. But right now, at this particular moment, he knows he is with the people he loves and who care about him. And for right now, that’s pretty awesome. And believe me, Mark the dog is the happiest, most contented creature you could possibly imagine. So day-by-day, right. At this particular moment, I hope you are OK and with people you love. Anyway, let’s put Mark the dog out of the studio. We're going to talk about why Japanese founders need to fear failure more. The Failure that is Feared You’ll often hear that Japanese founders, and Japanese society in general or overly afraid of failure. And in some ways that is true. Attitudes have shifted for the better over the past few decades, but most kinds of failure here in Japan do cary a certain stigma.

Almost all startup accelerators are going bankrupt and going away. Hiro Maeda, the founder of two of Japan's most successful, and most different startup incubators explains both the brief past and precarious future of startup incubators and accelerators. We talk not only about the mechanics and challenges of what it takes to make an incubator successful, but Hiro has some practical advice on when founders should consider joining an accelerator and how they can avoid the 99% of them that provide no real value. Hiro also explains why so many Japanese VCs today find investing in South East Asia more attractive than Japan, the forces behind Japan's startup boom, and what the next ten years holds for Japanese startups. Show Notes for Startups The motivation behind the founding of Open Network Labs Incubator How to measure the success of an incubator How Japanese VCs will be deploying capital in the next few years The success of Beenos's Inception Program and why they had to shut it down Why public companies have trouble with startups How to tell a good incubator from a bad one Why most incubators provide no value The coming shakeout in the incubator industry What’s driving Japan’s startup boom The future of Japanese entrepreneurship Links from the Founder Beenos Hiro's Blog Follow Hiro on Twitter @djtokyo Friend him on Facebook The SGE Facebook Page [shareaholic app="share_buttons" id="7994466"] Leave a comment Transcript from Japan Welcome to Disrupting Japan, straight talk from Japan's most successful entrepreneurs. I'm Tim Romero. Thanks for listening. I hope you and your loved ones are staying safe and staying healthy during this coronavirus crisis. I honestly can’t see too much more than that, because one of the things I learned in releasing our previous episode is that the situation can change dramatically from the time I record to the time I release and then again from the time of release and the time you get a chance to listen. So about the only thing I can say right now that I know will make sense when you listen to this is that I hope you are doing OK and staying healthy; or failing that getting better. Today, I’ve got a great Selects show for, so we can sit down over a beer with Hiro Maeda, one of the most insightful Japanese VCs. This interview was recorded back in 2015. A lot has changed since then, but a surprising amount of things have not. When we first caught up with Hiro he was just about to launch his new fund, and I’ll give you an update on what happened after the show. What might be even more interesting, however, is that the predictions Hiro makes in this interview have not come true as quickly as expected, but many of them are playing themselves out in slow motion right in front of us. Intro Today, we sit down with Hiro Maeda and talk about Start-Up Accelerators. Now, Hiro is the creator of both Digital Garages, Open Network Lab and the Beenos Inception Program. These are two of Japan's best known Start-Up Acceleration Programs. Their approaches are very, very different. Naturally, we talk about both the past and the future of Start-Up Acceleration in Japan, and the critical differences between the good ones and the bad ones. What impressed me most about our conversation was Hiro's commitment to running his Accelerators just like Start-Ups. Now, we dive into the fundamental reasons behind the attraction that Japanese VCs now have for Southeast Asian Markets. As well as the reasons behind what we both see as the coming hard times for Start-Up Accelerators, and the coming good time for Japanese Start-Ups. I will let Hiro explain all of that in his own words. Let's get right to the interview. [pro_ad_display_adzone id="1404" info_text="Sponsored by" font_color="grey" ] Interview Tim: I am sitting here with Hiro Maeda of Beenos formally. The man who found the Open Network Lab with Digital Garage. Today,

Innovation drives society forward, but everyday competence keeps it on the road. Over the past five years, we’ve spent a lot of time talking about the importance of disruptive innovation, but today I’d like to talk about the framework that allows disruptive innovation to be a net positive to society. The coronavirus pandemic has some people looking for innovation and others for stability. However, examining how Japan and the rest of the world are getting though it shows us something very important about innovation. Something that is almost always overlooked. Show Notes Life in Tokyo during the pandemic Why you don't want to cough in Singapore Why we probably can't innovate our way out of this pandemic The very real dark side of disruptive innovation Why innovation depends on everyday competence Leave a comment Transcript Welcome to Disrupting Japan, straight talk from Japan's most successful entrepreneurs. I'm Tim Romero and thanks for joining me. Things are not normal in Japan right now. Japan is one of the countries that is being been hit the hardest by the coronavirus. And the rest of the world is watching Japan because it has a modern health-care system, an active response to the virus, and a government that can be trusted to release .. reasonably accurate information about infection and mortality rates. How things play out for Japan over the next few months is quite likely how they will play out for the rest of the world over the next year. So yeah, everybody is watching Japan; as they should be. People are nervous in Japan, but things are calm and orderly. Of course, Japan tends to do calm and orderly really well. Public gatherings like graduations, business conferences, and sporting events have been canceled. As I record this, no decision has been made about the 2020 Tokyo Olympics, but it seems likely they’ll be postponed. Two weeks ago Sunday, I was walking back home through nearly deserted streets around Ark Hills and saw a young couple doing their wedding photography in the atrium there. Masks nervously being taken off and put back on between shots. It’s got to be a frustrating time to have had a wedding scheduled. On the business side, most large companies including Dentsu, Panasonic, Mitsubishi and of course Google as well, are either requiring or encouraging their employees to work from home. Which is good. Almost all business travel is canceled, and that’s for the best. In fact, three weeks ago when I was returning to Japan from Singapore, I coughed while walking through the airport on the way to my gate. Not like a big, sick, hacking cough, but just like a, I mean I’m a human being, and sometimes we just cough, right? A few seconds later, someone from security wearing a mask walked up to me with a heat sensor to take my temperature. He was very polite about the whole thing, and I was fine of course. It’s good to know that Singapore is taking things seriously, but FYI, don’t cough in the Singapore airport. In terms of Disrupting Japan, well, I have not been scheduling interviews for the obvious reasons, and honestly, right now most founders are focused on coronavirus countermeasures. If the situation continues, I may try video-conference interviews again, or I may do more commentary episodes. The feedback I received on my last few was overwhelmingly positive, so maybe. Today, however, I want to talk about the nature of innovation itself. You see, the coronavirus has the potential to teach us a valuable lesson about innovation. No, no. It’s not the one you think it is. It’s not the standard fare about innovation and ingenuity will get us through even humanity’s worst problems. No, it’s something a bit less on-message. But it’s an insight that is for more important, and in a way, far more reassuring than the standard trope about innovating our way out of a bad situation. Unfortunately, it’s also a lesson that I think all us innovators ...