Ryo Umezawa
Director, J-Seed Ventures Inc.
Director / Investor, AllCoupon Japan
Incubation in Japan
2011 APEC Business Incubation Forum
© 2011 Ryo Umezawa - Confidential - All Rights Reserved.
© 2011 Ryo Umezawa - Confidential - All Rights Reserved.
Entrepreneur
Business Development
Market Entry
Cross Border Alliance
Startups
5 Years
J-Seed Ventures Inc.Venture incubator
Founded in 2000
Self-funded
8 portfolio companies currently
© 2011 Ryo Umezawa - Confidential - All Rights Reserved.
We start businesses that
address real market needs
with innovative business
models and
technologies.
© 2011 Ryo Umezawa - Confidential - All Rights Reserved.
The challenge
•Japan has the third largest economy in the world.
•But the population is shrinking and rapidly aging.
•And the younger generation is under-employed.
Source: The Economist
© 2011 Ryo Umezawa - Confidential - All Rights Reserved.
The solution
“Between 1980 and 2005, virtually all net new jobs created in the U.S. were created by firms that were 5 years old or less.”
“That is about 40 million jobs. That means the established firms created no new net jobs during that period.”
Kauffman Foundation, April 2010 (NY Times)
Entrepreneurs are the source of new growth
© 2011 Ryo Umezawa - Confidential - All Rights Reserved.
However…
•Japan generates only $3 billion a year in venture funding for about 3,000 investment deals.
•US start-ups receive $30 billion a year in venture funding for about 4,000 investments.
VC investments
US: $29.4B, Japan: $2.8B
© 2011 Ryo Umezawa - Confidential - All Rights Reserved.
The reason
Low tolerance for failure
Low social status
Limited capital
Narrow social networks
Weak support infrastructure
Over-regulation
Smart people are discouraged from becoming entrepreneurs in Japan
© 2011 Ryo Umezawa - Confidential - All Rights Reserved.
Who are we?• We are experienced entrepreneurs.• We have spent our careers building new
businesses.
Arne KochEntrepreneur
Rebate Networks Gmbh
Ryo UmezawaEntrepreneur
Pido Inc.Mobikyo KKAllCoupon Japan
Jeffrey CharEntrepreneur
Pario Software, Inc.Solis CorporationSozon Inc.
© 2011 Ryo Umezawa - Confidential - All Rights Reserved.
Why we are doing OIC• We believe Japan
needs more entrepreneurs and the businesses they build.
• We believe Japan can lead the world in successful entrepreneurs and ventures.
© 2011 Ryo Umezawa - Confidential - All Rights Reserved.
Our mission• To make starting a
venture one of the standard alternatives that smart and ambitious people consider.
© 2011 Ryo Umezawa - Confidential - All Rights Reserved.
What OIC does• OIC will educate and support entrepreneurs in
Japan.
Facilities
Education
GovernmentCreative
Environment
Capital
Network
Mentorship
© 2011 Ryo Umezawa - Confidential - All Rights Reserved.
OIC fills in the gap
321-1Year
Facilities
Mentorship
Network
Capital
Needs
Gov't funds
VC funds
Banks
Corporates
Supporters
321-1Year
Angels
OIC
tar
get ar
ea
© 2011 Ryo Umezawa - Confidential - All Rights Reserved.
OIC OverviewOIC Open Incubation Center
Services Education, mentorship, access to capital, networking, back office support, introductions
Facility Central Tokyo facility; open design; meeting and desk space for 40 companies; 24x7 access; convenient to public transportation, restaurants and shops
Target companies
Early-stage Japanese ventures; overseas ventures entering Japan; ventures with innovative technologies and business models; preference for ventures targeting the world’s most urgent social and environmental needs
Status Not-for-profit entity
© 2011 Ryo Umezawa - Confidential - All Rights Reserved.
OIC - the key differences
An incubator run by entrepreneurs for entrepreneurs Complete understanding of how to help entrepreneurs succeed
Clear mission – to create long-term growth for Japan by educating and supporting entrepreneurs
No hidden agenda
Completely independent In a position to provide best impartial support to entrepreneurs
Designed to be a sustainable, but not-for-profit organization Fostering entrepreneurship is our #1 priority
© 2011 Ryo Umezawa - Confidential - All Rights Reserved.
OIC - the key differences
Run by entrepreneurs
Run for entrepreneurs
Open environment
Open network
© 2011 Ryo Umezawa - Confidential - All Rights Reserved.
Successful US incubators
Social lending Publishing softwarePayment solutions
Wireless chips LEDs Wireless devices
Email software Data mgmt Location services
Silicon Valley, CA
Boston, MA
Silicon Valley, CA
© 2011 Ryo Umezawa - Confidential - All Rights Reserved.
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Conclusion
Entrepreneurs are vital for the future long term growth of Japan
Entrepreneurs are under represented in Japan
OIC will educate and support entrepreneurs
Co-incubation network help growth internationally
© 2011 Ryo Umezawa - Confidential - All Rights Reserved.
Ryo Umezawa
ryoumezawa (E)
umemac (J)
www.ryoumezawa.com
© 2011 Ryo Umezawa - Confidential - All Rights Reserved.