With the development of the Internet, innovation and the construction of new business models are progressing one after another. This section introduces support and trends for overseas start-up companies.
目次
Will Japan Change with the 4th Venture Boom?
In recent years, venture companies have been actively raising funds, and it is said that the fourth venture boom has arrived. As a result of monetary easing and the influence of a series of government-established funds, funds began to flow into the venture market. Investment funds from large corporations spurred this market expansion.
Bio-startup Peptister raised the most in Japan in 2018, raising 20 billion yen. Second place Japan Taxi also raised 12.3 billion yen.
In the venture industry, unlisted companies with valuations of 100 billion yen or more are called “”unicorn company”” as compared to unicorns, phantom creatures. However, it is also said that Japanese have low motivation to start a business. In Japan, the mobility of human resources has been slow, partly because of the general practice of hiring new graduates en masse and lifetime employment. There are not many people who think about starting a business as one of their career paths.
The country is aiming to produce unicorn companies by 2023. “”J-Startup”” is a government initiative that emerged amid an increasing number of rapidly growing companies.
What is J-Startup?
J-Startup is an initiative of the Ministry of Economy, Trade and Industry that was launched in June 2018. We carefully select 92 companies from among the approximately 10,000 companies that are said to be starting up these days, and support them so that they can become competitive in the world.
J-Startup provides public-private support for selected startups. Specifically, we follow up on overseas expansion and provide preferential treatment in support measures such as various subsidies. There are big companies and accelerators behind it.
There have been support systems for venture companies. However, most of the existing support systems are fair in that people can receive subsidies if they meet certain conditions. However, J-Startup supports only 92 companies. Minister of Economy, Trade and Industry Hiroshige Seko said, “”grow a unicorn that can win in the world with favoritism””.
There’s a reason why a country wants to grow a unicorn company that much. CB Insights, a U.S. research firm, reported only 1 unicorn company in Japan as of January 2019. That’s partly because Mercari is no longer a unicorn company after it went public.
This is by far the lowest figure in the world. For example, the study found that the United States has the most unicorn companies. There are 151 unicorns, or 48.7% of the total. followed by China with 82 unicorns. That’s 26.5%. The U.S. and China now account for 70% of the unicorn market.
Because the number of unicorns can predict the future of technology and economic growth in a country, we have high expectations for the future of Japan and a strong desire to invest in the world.
What is needed for global expansion
Advances in the Internet and IOT have greatly reduced the time and effort required for overseas expansion. As a result, speed is required for overseas expansion. Many companies use their domestic success as a springboard for market research and marketing for overseas expansion. However, in an age where speedy management is required, field surveys are not always necessary.
At the stage of market selection, you can make a decision based on information you can collect from the Internet without going to the site. For example, we determine whether or not we can make a comprehensive profit from market potential and local trends.
Also, the lightness of footwork is a strength of startup companies. Especially in the case of overseas expansion, if the decision to withdraw is delayed, the cost will increase as the decision is delayed. Therefore, it is necessary to make a prompt decision such as deciding the period of 3 months or 6 months.
Another option is not to establish an overseas subsidiary at the initial stage of overseas expansion. It is also possible to start a business by recruiting staff and interns locally. In order for products and services to be accepted locally, steady hypothesis testing is necessary. However, there is a low possibility that Japanese products will be accepted even if they are sold overseas. Different cultures and economic situations naturally require new measures.
One of the things you can do as a startup is not just stick to your existing product or brand, but take the trouble to create a new product. Cost is one of the reasons why overseas expansion is difficult, but there is a possibility that it can be solved by selecting the means of business.
Summary
Investment from large companies to startups is growing. The areas and sense of speed that large companies cannot do is a major strength. Not only will your company expand overseas in new businesses, but you will also be able to expand your business options by considering collaboration with start-up companies.
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X-HUB TOKYO
Webマガジン編集部
企業の海外進出に関する
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