How startups suddenly became “cool” in Japan (feat. Shin Takamiya of Globis Capital) | E2237
Timestamps are as accurate as they can be but may be slightly off. We encourage you to listen to the full context.
Podcast Summary
In this engaging episode of This Week in Startups, Jason Calacanis interviews venture capitalist Shinichi "Shin" Takamiya from Globis Capital Partners during Founder University's inaugural program in Japan. The conversation explores Japan's remarkable transformation from a traditional salaryman culture to a thriving startup ecosystem where entrepreneurship has become "cool" for young people. (00:33) The discussion covers the evolution of Japanese startup culture, investment strategies, and the impact of AI on business building, while highlighting Japan's unique position as a nation that often stays ahead technologically but took time to embrace the startup mindset.
- Main Theme: Japan's startup ecosystem transformation and the shift from traditional employment to entrepreneurial ventures among young Japanese professionals
Speakers
Jason Calacanis
Jason is the host of This Week in Startups and founder of Founder University, a 12-week program for early-stage entrepreneurs. He previously founded Weblogs Inc. (sold to AOL) and Engadget, and has been investing in startups for over two decades with notable early investments in companies like Uber and Robinhood.
Shinichi "Shin" Takamiya
Shin is a venture capitalist at Globis Capital Partners, one of Japan's largest and oldest VC firms founded in 1996. He earned his MBA from Harvard Business School in 2008 and joined Globis right after graduation during the financial crisis, making him well-positioned to capitalize on the downturn in venture investing.
Key Takeaways
Focus on Getting Investors Interested, Not Telling Your Whole Story
Shin emphasizes that the primary objective of a first investor meeting should be to spark interest, not to reveal everything about your business. (21:21) He advises founders to focus on one single value proposition that will get investors curious enough to ask for follow-up meetings. This approach prevents information overload and creates a natural progression in the investor relationship. Rather than overwhelming potential investors with every detail of your business plan, identify the most compelling aspect of your venture and use it as a hook to secure deeper engagement.
The Founder's Motivation Is More Important Than the Business Model
According to Shin, investors prioritize understanding why founders are building their companies over what they're building. (13:52) He looks for "truly rooted down motivation" rather than interest in money or power, seeking founders with genuine passion or what he calls "karma" for their business. This deep motivation becomes crucial when companies face inevitable challenges, as founders with strong underlying reasons for building their ventures are less likely to give up during difficult periods. The "why" behind a business often determines long-term success more than the initial business model.
Market Selection Trumps Everything Else
Shin identifies choosing the right market as the single most important factor after finding great founders. (44:17) He emphasizes that if the Total Addressable Market (TAM) is growing, founders can succeed simply by growing alongside it, even without beating market growth rates. This insight is particularly powerful because it suggests that founders should prioritize large, expanding markets over perfect execution in small markets. The key is understanding fundamental market needs rather than superficial product categories, as illustrated by his example of fax companies that failed to recognize they were in the document transmission business, not the fax business.
Building Long-Term Relationships Is Essential in Venture Capital
The venture capital business operates on extremely long cycles - individual investments take 5-10 years to mature, and fund cycles span 10-15 years. (37:40) This creates an environment where trust and long-term relationships become paramount. Shin notes that VCs often collaborate rather than compete, helping syndicate difficult rounds and sharing deal flow. For founders, this means playing the long game - building relationships with investors years before needing funding, maintaining integrity even when deals don't work out, and understanding that reputation in the ecosystem matters more than any single transaction.
AI Implementation Requires Balancing Technology Readiness with Market Acceptance
Shin uses autonomous driving as an analogy for AI implementation in business, noting that while the technology may be ready, market acceptance often lags behind. (50:51) He suggests that successful AI companies often implement "human-in-the-loop" solutions where AI handles the heavy lifting internally while maintaining human oversight for client comfort. This approach allows companies to capture AI efficiency gains while addressing market concerns about reliability and accountability. Founders should build business models that work today while positioning for fully autonomous solutions in the future, without being able to predict exactly when that transition will occur.
Statistics & Facts
- When Shin joined Globis as a venture capitalist in 2008, there was only about $300 million in total venture capital investment per year across all of Japan. Today, that figure has grown to approximately $10 billion USD annually, representing over 30x growth. (16:55)
- Japan is home to the world's oldest company, a traditional carpentry business that builds Japanese shrines, which has been operating for approximately 1,500 years. (39:37)
- After Mercari became Japan's first unicorn to go public in 2018, Japan produced 77 companies valued over $1 billion in just seven years (including both private unicorns and public companies that achieved $1 billion market caps). (18:03)
