The Coral Capital Podcast

On this episode of The Coral Capital Podcast, Founding Partner James Riney and Investor Tiffany Kayo were joined by Phil Wickham, co-founder of Sozo Ventures—a globally-minded VC firm that’s backed breakout U.S. companies expanding into Japan, including the likes of Coinbase, Square & Palantir.Philip shares rare, behind-the-scenes insights from decades spent bridging Silicon Valley and Tokyo, explaining why Japan is suddenly hot again for global startups—and how to navigate its famously complex corporate and cultural terrain.Topics explored:The four pillars that make Japan a high-margin & high-loyalty market worth crackingLessons from backing companies like Palantir, Square, Coinbase, and Need in JapanWhy corporate money on your cap table can be more risk than reward—especially in JapanWhat founders consistently get wrong when entering Japan, and how to avoid wasting yearsIf you're working on something ambitious, we’d love to hear from you at Coral Capital!Get in touch with us herePhil's Book: https://www.amazon.co.jp/2032年、日本がスタートアップのハブになる：世界を動かす才能を解放せよ-フィル・ウィックハム/dp/4910487042?tag=googhydr-22&source=dsa&hvcampaign=books&gad_source=100:00 Trailer00:48 Introduction03:06 Selling Japan to Startups06:21 The Challenges of Entering Japan09:01 First Steps for Expanding into Japan13:02 Case Studies: Coinbase & NEED16:06 Palantir’s Unique Approach to Japan20:03 The Role of Corporates in Startup Growth23:42 Targeting the Right Partners in Japan28:06 Joint Ventures vs Independent Expansion39:12 Keeping Options Open in Japan51:05 Japan’s Global Competitive EdgeConnect with Phil: https://www.linkedin.com/in/pwickham/Connect with James:X: https://x.com/james_rineyLinkedIn: https://www.linkedin.com/in/jamesrineyConnect with Tiffany:X: https://x.com/tiffanykayoLinkedIn: https://www.linkedin.com/in/tiffanykayo/Learn more about Coral CapitalThis episode was produced & distributed with the help of our friends at Atomik Growth.

At Coral Capital’s Tokyo HQ, economist and writer Noah Smith joins James Riney, Founding Partner and CEO of Coral Capital, to explore how Japan is uniquely positioned for a global resurgence. They discuss how the country can convert its global fascination into a strategic advantage, and why Japan is increasingly on the radar of institutional capital and high-net-worth investors.The conversation dives into:• The rise of the “weeb” economy” (think anime, fashion, subculture, and Japan’s growing soft power on the global stage)• Why Japan is primed for greenfield FDI in AI, semiconductors, and deep tech• How Tokyo is rivaling Austin and Paris as a global tech & startup hub• Japan’s untapped operational MOAT for builders and investorsIf you're working on something ambitious, we’d love to hear from you at Coral Capital!Get in touch with us hereChapters:00:00 Trailer00:52 "Weebs" and Japanese tourism05:48 Rule by law and economic factors14:22 GDP and exports17:19 Cultural mindshare and diasporas24:51 Enterprise value creation30:29 Small businesses34:46 Financial policy39:35 Immigration, fluency, zero-tolerance47:54 Exports need improvement49:35 Untapped demand50:00 Plaza Accord54:50 Book plug and outroMentioned in this episode: Battle Royale, Ruth Benedict, Sakana AI, Taiwan Semiconductor Manufacturing Company Limited (TSMC), Apple iPhone, Taro Kono, Mijoté San Francisco, The Boeing Company, Christopher Poole a.k.a. moot, Jack Ma, Silicon Valley, Dell Inc., Donald Trump, WeChat (Weixin)Connect with Noah: https://x.com/NoahpinionNoah’s Substack: https://www.noahpinion.blog/Connect with James:X: https://x.com/james_rineyLinkedIn: https://www.linkedin.com/in/jamesrineyLearn more about Coral CapitalThis episode was produced & distributed with the help of our friends at Atomik Growth.

Welcome to another episode of The Coral Capital Podcast, a show where we bring on guests from tech, business, politics, and culture to talk about all things Japan.In this episode, economist and long-time Japan optimist Jesper Koll breaks down how Japan is faring amid rising global protectionism, demographic shifts, and geopolitical uncertainty. A resident of Japan since 1986, Jesper has spent decades at the forefront of Japan analysis and investment, having served as chief strategist and head of research for JP Morgan and Merrill Lynch. He currently advises Monex Group, sits on the Japan Catalyst Fund’s investment committee, and serves on multiple high-level advisory boards, including Governor Yuriko Koike’s.Jesper warns that a Trump 2.0 presidency could trigger a double whammy for Japan: a weaker dollar slashing Japanese corporate profits and an aggressive U.S. tariff regime pushing China to dump exports into Southeast Asia—hurting Japan’s industrial giants in the process. But he's still bullish on Japan.Why? Jesper sees Japan as “capitalism that works”—a system quietly modernizing under the radar. From record M&A and MBO activity to a younger generation of CEOs open to change, Japan is entering a new phase of productivity and openness. He highlights the ongoing shift to performance-based pay, increased immigration, and growing startup dynamism as key signs of this transformation. Why a weaker dollar is Japan’s silent earnings risk: With two-thirds of Japanese listed company profits coming from overseas, a 10-yen appreciation can slash earnings by 8%. If Trump 2.0 weakens the dollar, Japan takes a hit—fast. Japan isn’t insular—it’s hyper-globalized: Despite its reputation, Japan generates a higher percentage of corporate profits overseas than the U.S. or Germany. From Daichi Life to Toyota, Japan’s biggest firms are already global players. The real threat of Trump’s China policy is deflation via the Global South: U.S. tariffs could force China to dump excess goods into Southeast Asia, undercutting Japanese firms not just on price, but now on quality too. Made in Japan = 30~40% price premium: Companies like Shiseido are relocating production to Japan not for politics, but for branding. “Brand-shoring” is about value, not alliances. Why energy—not labor—is Japan’s factory hurdle: Labor can be automated. The real constraint on manufacturing in Japan may be uncertainty around energy costs and nuclear policy. Japan’s brain gain is real—and measurable: While the population shrinks, immigration is quietly surging. Every day, 1,200 people get 3-year work permits. Companies are adapting with performance-based pay, not seniority resulting in higher talent liquidity.Record M&A and MBOs aren’t a coincidence: As Japan’s CEOs get younger and legacy-heavy firms face succession issues, a wave of corporate transformation is underway. “Metabolism,” Jesper says, is up.What Japan needs most is inheritance tax reform: MacArthur’s anti-zaibatsu policies made sense post-WWII. But now, without reform, Japan risks losing its $4.5T+ generational wealth transfer to debt paydown instead of innovation.Japan ‘s “capitalism that works”: A system that’s democratic, fair, globally integrated, and quietly undergoing a transformation from within.-----For founders building Japan's next legendary companies, reach out to us here: https://coralcap.co/contact-startups/If you're interested in joining a Coral startup, join our talent network here: https://coralcap.co/coral-careers/

Welcome to another episode of The Coral Capital Podcast, a show where we bring on guests from tech, business, politics, and culture to talk about all things Japan.In this episode, we’re joined by Claire Hughes Johnson, Corporate Officer and Advisor at Stripe, and the company’s former Chief Operating Officer. From 2014 to 2021, Claire played a pivotal role in scaling Stripe’s operations, growing the team from under 200 to over 7,000 employees while leading a wide range of functions including sales, marketing, customer support, HR, and risk. Prior to joining Stripe, Claire spent 10 years at Google, where she led several business teams, including Consumer Operations, AdWords Online Sales & Operations, Google Offers, and served as VP of Google’s self-driving car project.Claire is also the author of Scaling People: Tactics for Management and Company Building, a Wall Street Journal bestseller that has quickly become a must-read for startup founders and operators. The book is now available in Japanese, and we cover key topics from it, including: Why title inflation is a ticking time bomb: Offering inflated titles early on might help close a hire—but it almost always backfires later. Self-awareness as a leadership foundation: The most effective leaders deeply understand their strengths and blind spots. Without that baseline, building a truly complementary team—or scaling yourself—is nearly impossible. Scaling culture across borders: Going global means more than just localization. Stripe built a culture understanding program that mapped national differences against company values—allowing local teams to adapt while staying aligned. How defensive processes kill velocity: Startups often overcorrect after mistakes by layering on rigid processes. The better approach is to build a process that creates repeatable excellence. Navigating team transitions with empathy: Not everyone grows at the same pace as the company. Having tough conversations early—framed as shared observations rather than judgments—can turn painful exits into respectful transitions. AI is reshaping company building: With AI amplifying productivity in roles like engineering and support, teams can stay smaller—but the talent bar rises. That makes hiring, management, and retention more critical than ever.Get Claire's book: https://www.amazon.co.jp/Scaling-People-Tactics-Management-Building/dp/1953953212Connect with Claire: XLinkedInConnect with James:XLinkedInFor founders building Japan's next legendary companies, reach out to us here. If you're interested in joining a Coral startup, join our talent network here. 0:00:00 Introduction0:00:17 Didn’t want to write a book0:02:26 Self-awareness0:05:43 Before Loom0:08:01 Hiring believers with no titles0:12:08 Non-title titles0:15:47 Supercharged COO0:20:00 Trust and collaboration0:24:02 Onboarding and a bunch of challenges0:27:29 Organizing people, getting results0:30:10 Defensive processes0:34:16 Say the thing you can't say0:37:29 Cultural differences0:42:48 Managing out0:49:21 What would you change about the book?0:52:17 Q&A1:05:42 Outro

Welcome to another episode of The Coral Capital Podcast, a show where we bring on guests from tech, business, politics, and culture to talk about all things Japan.In this episode, we’re joined by Gen Isayama, General Partner & CEO of WiL—a venture capital firm that’s redefining how innovation happens in Japan. Unlike traditional VCs, WiL doesn’t just invest—they educate, incubate, and leverage the power of their corporate-based LP network to accelerate the growth of their companies as they expand globally, with a particular focus on Japan.Before launching WiL in 2013, Gen spent a decade investing at DCM. But when he looked at Japan, he saw a broken system—where startups struggled to scale, corporates hesitated to embrace change, and innovation lagged behind. Instead of copying the Silicon Valley model, he built something new: a VC firm designed to unlock Japan’s vast corporate resources—capital, talent, and technology—by pushing enterprises toward entrepreneurship.WiL has since backed startups in Japan like Mercari, Raksul, and Retty, as well as Wise, Asana, and Canva in the US, with a team operating across Tokyo and Silicon Valley.Below are highlights from this episode:WiL operates on three pillars:Business Creation: Helping large Japanese corporations spin out or incubate startups internally.Education: Training corporates to adopt a startup mindset and providing connectivity between startups and the corporate ecosystem.Investment: Backing startups at various stages, with a focus on Japanese startups and global startups expanding into the Japan market. Ten years ago, Japanese corporates were hesitant to engage with startups, but today they have become increasingly open to partnering with and acquiring them.Large corporations compete with one another in adopting new technologies, creating a domino effect in innovation.The success of a corporate spinout depends on its leadership, not just the technology.WiL leverages its U.S. investments for faster scaling and greater liquidity, while Japan is still evolving toward a more liquid market with larger, multi-billion-dollar exits.Instead of competing for early-stage deals, WiL co-invests with leading global firms at the mid- to growth-stage, offering support for expansion into Japan.WiL conducts market testing through corporate pitch events for global startups, identifying strong local demand before committing to an investment.Emerging Opportunities in Japan: The aging society is driving demand for healthtech and elderly care, while AI integration in manufacturing and robotics presents a major growth area. Additionally, Japan’s rich IP assets (anime, manga, food) offer untapped potential for global monetization beyond traditional licensing.-----For founder's building Japan's next legendary companies, reach out to us here: https://coralcap.co/contact-startups/If you're interested in joining a Coral startup join our talent network here: https://coralcap.co/coral-careers/

Welcome to another episode of The Coral Capital Podcast, a show where we bring on guests from tech, business, politics, and culture to talk about all things Japan.VTubing, or virtual YouTubing, is a form of digital content creation where anime-style avatars—powered by motion capture and voice acting—engage audiences through livestreams, gaming, and interactive entertainment. This industry has rapidly evolved from niche internet culture into a multi-billion-dollar market, blurring the lines between content creation, technology, and intellectual property (IP).In this episode, we are joined by Sasuke Shimomura, Chief Strategy Officer of Brave group, one of Japan’s leading VTuber production companies. Brave group is a global digital IP company which mainly consists of 3 business segments: IP Production which mainly focuses on VTuber production, IP Platform and IP Solution which focus on distribution and enhancing the monetization of digital IP. After graduating from Waseda University, Sasuke started his career in the Equity Research Division at Goldman Sachs Japan. He then played a key role in corporate planning, creator strategy, and M&A at UUUM Co., Ltd., Japan’s largest influencer management company. He was also CFO of SoVa Inc., where he oversaw fundraising efforts from the company’s founding. Sasuke later joined Eight Roads Ventures Japan, focusing on investments in Entertainment and Media, while also conducting M&A exits for several portfolio companies. In June 2024, he joined Brave group as CSO.In today’s episode we break down everything about the VTuber industryThe VTubing movement began in 2016 with the debut of Kizuna AI, widely considered the industry’s first VTuber.By 2018, major production companies like Anycolor (Nijisanji) and Cover (Hololive) emerged, professionalizing the space and scaling VTuber operations.Different styles of VTubing: 2D VTubing: An animated illustration that syncs with the talent’s real-time movements.3D VTubing: Uses motion capture technology to replicate full-body movement in a 3D virtual space.2.5D Hybrid: A mix of virtual and real-world performances, where VTubers also appear in person The VTuber industry operates much like traditional entertainment businesses, with diverse monetization strategies: live streaming revenue, merchandising, advertisement tie-ups, direct fan monetization (ex. fan clubs), and IP expansion (ex. anime adaptations).While similar to a typical talent agency like K-pop’s YG group, VTubing agencies like Brave group hold the rights to all of their IP, allowing for greater revenue diversification.VTubing is a rapidly growing market with the potential to reach anime’s $20B+ industry size.Emerging technologies like AI, Virtual Reality (VR), Augmented Reality (AR), and Blockchain will diversify and expand revenue opportunities.AI is already being leveraged in processes like illustration, but larger shifts such as 24/7 AI streaming or “AITuber” are likely coming in the near future.Being a globally successful IP powerhouse requires 1. A deep understanding of content 2. The right technology 3. A cultural understanding to bring the content to the global market 4. A strong financial strategy to execute.-----For founder's building Japan's next legendary companies, reach out to us here: https://coralcap.co/contact-startups/If you're interested in joining a Coral startup join our talent network here: https://coralcap.co/coral-careers/

Welcome to another episode of The Coral Capital Podcast, a show where we bring on guests from tech, business, politics, and culture to talk about all things Japan. Today’s guest is Andrew Schoen, Partner at NEA (New Enterprise Associates) . Established in 1977, NEA has served as a partner to the founders and teams behind some of the most transformational innovations in healthcare and technology over the past five decades including Cloudflare, Databricks, Coursera, Perplexity, Plaid, and Robinhood. The firm manages over $25B in AUM and invests across the early to post IPO stages. Andrew joined NEA in 2014 and invests in founders innovating in AI/ML, fintech, frontier tech, infrastructure software, technically differentiated SaaS and security. Prior to NEA, he was a member of Blackstone’s M&A Group. Prior to Blackstone, he founded Flicstart. Andrew serves on the Cornell University Council, the Advisory Council for Entrepreneurship at Cornell, and is President Emeritus of the Cornell Venture Capital Club. He earned his master’s degree as a Schwarzman Scholar and his bachelor’s degree in economics and science of earth systems in engineering at Cornell. We’ve highlighted some insights from the conversation below: While NEA has had Japanese LPs for over 40 years, the firm only recently began actively investing in Japan. Talent is a leading indicator for the health of a startup ecosystem, and Japan has a high caliber of talent. Japan’s startup ecosystem has key ingredients for success: A large GDP, strong technology base, quality education, and increasing enterprise demand for software and tech solutions. How Japanese founders pitch differently from US founders: Some Japanese founders are more modest about their vision, but overall, there’s more similarity than difference in how founders pitch between Japan and the U.S. One major difference is that Japanese founders often set specific IPO dates early, whereas U.S. startups typically stay flexible based on market conditions. Japanese LPs often expect faster exits, but longer time horizons can lead to bigger and more successful outcomes. How to raise money from U.S. VCs: The first meeting is only about securing a second meeting — don’t disqualify yourself early by making common mistakes like overstating valuation. Japanese startups should leverage local investors to get warm introductions. What NEA looks for in Japan: Mid to growth-stage, high-velocity, high-margin, software-driven businesses. Growth benchmarks also matter: $10M–$20M ARR → 100% growth $20M–$30M ARR → 50~100% growth $100M ARR → 30~40% growth Key metrics such as LTV/CAC, net revenue retention, and burn multiples are important—but potential future growth trumps past numbers. Longer term sheets = fewer surprises. Short-term sheets can leave room for bad terms later. ----- For founder's building Japan's next legendary companies, reach out to us here: https://coralcap.co/contact-startups/ If you're interested in joining a Coral startup join our talent network here: https://coralcap.co/coral-careers/

Welcome to another episode of The Coral Capital Podcast, a show where we bring on guests from tech, business, politics, and culture to talk about all things Japan. In this episode we are joined by Brian Yun, Co-founder and CEO of Woodstock, a Coral portfolio company building a social trading app with the mission to empower the next generation to create a better financial future. Brian has a phenomenal career leading up to Woodstock. While in college, he  began working as a hardware design engineer at AMD. After graduation, he took on roles in equities trading at Barclays, Merrill Lynch, and Morgan Stanley. He later led the  sales finance and strategy at Twitter (now X) for Japan and Korea, then transitioned to Coinbase to drive their Japan expansion. A graduate of the University of Waterloo in Computer Engineering and an MBA honors graduate from the University of Chicago Booth School of Business, Brian combines deep expertise in technology and finance. We’re excited to share his insights on entrepreneurship, Woodstock’s journey, and the future of investing. Below are some of the highlights from the episode: Brian’s first investment experience was buying Nvidia stock back in 2003 Building an "Oceans Eight" team with co-founders Daisuke Kawamoto and Min Ju Brian’s experience at Twitter (now X) and Coinbase taught him about leveraging the internet and navigating complex regulatory markets Woodstock’s user base: half are under the age of 29, and over 70% are first-time investors The Woodstock Index, weighted by community ownership, has more than doubled since its inception in April 2023, outperforming both the S&P and NASDAQ by a large margin Social media has leveled the playing field for financial information, reducing reliance on traditional equity research reports Young Japanese are embracing risks instead of relying on pensions How Woodstock is complementing government efforts to raise investment awareness by promoting financial literacy Heavy Japanese users of X average 4–5 accounts, often under pseudonyms Woodstock’s vision: becoming the go-to platform for all things finance ----- For founder's building Japan's next legendary companies, reach out to us here: https://coralcap.co/contact-startups/ If you're interested in joining a Coral startup join our talent network here: https://coralcap.co/coral-careers/

Welcome to another episode of The Coral Capital Podcast, a show about startups, technology, and venture capital with a focus on Japan and Asia broadly. Our guest today is Shinichi Takamiya, Managing Partner at Globis Capital Partners. Takamiya-san was ranked first in Forbes Japan’s Midas List in 2018, seventh in 2015, and tenth in 2020. He joined Globis Capital Partners after managing consulting projects at Arthur D. Little. His venture capital track record includes iStyle, Aucfan, Kayac, Pixta, Mercari, and Lancers; M&A Shimauma Print System, nanapi, and Coubic etc. He holds a BA in economics from the University of Tokyo, and an MBA from Harvard Business School. Here are some takeaways from today’s episode: The evolution of “Venture Businesses (VB)” into “Startups” and what it signifies for the ecosystem The next wave of startups is driven by global and serial entrepreneurs Building the Shohei Ohtani of startups Over 10 industries in Japan boast market sizes exceeding ¥10 trillion (~$100 billion). The three business models for global expansion: 1) Universal Fit: A single model that works across regions (e.g., Toyota) 2) Niche Subverticals: Specific segments adaptable across markets (e.g., pixiv) 3) Localized Approach: Tailored strategies for each region (e.g., Mercari) How Josys is tackling the global market from day one, leveraging Japan’s advantages like low cost, high-quality operation centers Globis’s ¥72.7 billion (~$500 million) fund aims for 1–3 investments in companies with $5B~$10B outcomes, maintaining 10–20% ownership Investing in consumer services that address critical needs, such as FastDoctor Exploring consumer businesses pursuing parallel strategies: co-pilot models alongside R&D and autonomous solutions Succession planning in the venture capital industry ----- For founder's building Japan's next legendary companies, reach out to us here: https://coralcap.co/contact-startups/

This episode features Richard Katz, NYC correspondent for the Weekly Toyo Keizai and author of "The Contest for Japan’s Economic Future." He discusses the essential role of firm mortality in driving economic growth and the barriers startups face in Japan. Katz debunks the myth of a risk-averse culture, highlighting generational shifts favoring startups over corporate jobs. He also explores the impact of political changes on economic reform and how Japan can learn from French startup policies to boost innovation and entrepreneurship.