Konnichiwa! I'm Alessandro, and this is TÉKUNI, a newsletter about technology in Japan. Here you can find the archive of past issues. If you’d like to support this project, you can buy me a virtual coffee here ☕.
Japan Quick Tech Update
Japan started 2021 the same way it ended 2020, trying to contain the effects of the pandemic in the hope of going ahead with the Tokyo Olympics this summer.
To counter potential hacking attempts aimed at disrupting the Games, its organisers recently trained 220 IT security experts.
In lighter news, Japan Prime Minister Yoshihide Suga was coached on how to use social media.
Digitalisation efforts in the country continue, with the government considering getting rid of phone boxes, and approving the deployment of autonomous delivery robots.
Of course, January was also the month of CES 2021, to which Japan participated with 53 tech startups.
This issue of TÉKUNI is about the startup scene in Japan, featuring the expertise and opinions of Japan-based tech journalist Sasha Kaverina.
👩💻 TÉKUNI Exclusive - Sasha Kaverina
Sasha started her journalism career with a five-year masters course from the V. N. Karazin Kharkiv National University in Ukraine, which followed ten years of experience across five countries.
Over the past decade, Sasha has been working in media, covering a broad range of topics from politics to culture and travel, before switching to the startup industry.
“I am currently in charge of partnerships and growth at Le Wagon Tokyo,” Sasha says, “a global coding bootcamp helping people learn to program and launch a career in tech.”
Aside from teaching people how to code, the company also nurtures a tech-savvy community with its alumni, helping Japanese startups with formation and support.
Sasha’s adventure in Japan first started four years ago when she joined a Kyoto-based venture capital supporting hardware startups.
“Working there was like being part of a close-knit community, where I could observe Japanese entrepreneurs going from struggling to ‘aha moments’ and backwards. We had a great international team, and everyone was putting an enormous effort into making Kyoto an attractive place for global-minded startups.”
It was there that Sasha started writing articles featuring multi-talented teams and their products, organising startup talks and building a strong connection with a community of local entrepreneurs.
Commenting on Yoshihide Suga’s election, Sasha says she believes his priorities, for now, are keeping COVID-19 in Japan under control.
“However, his pledge to promote the digital transformation of Japanese society has been broadly cheered by startup ecosystem players who are happy to see outdated Hanko (official seal) custom abolished.”
When asked about the startup scene in Japan, Sasha says it is rather young.
“However, over the past few years, it has developed considerably,” she explains, “with global accelerators such as Plug and Play and 500 Startups playing an important role in the development of new partnerships. It still lacks diversity though.”
According to the journalist, many investors prefer to support university spin-offs and well-established companies, often ignoring early-stage startups in need.
“I wish that women founders and minority groups could have been supported more actively.”
On a positive note, Japan holds a lot of potential for global startups, thanks to its vast market and low competition barriers.
“Over the past few years, game-changers like Revolut successfully entered the Japanese market and I believe there are more to come.”
Discussing the process of creation of startups in Japan, Sasha says it’s quite straightforward.
“Establishing a kabushiki gaisha (stock company) is fast and takes JPY 242,000 for registration purposes. If you speak Japanese, it is easy to network and connect through local startup pitches, which are frequented by corporates and investors scouting for innovative minds.”
According to Sasha, strict visa policy makes it a hurdle to enter Japan just to start a business from scratch.
“However, the Japanese government is adopting new strategies to attract foreign talents, such as a so-called startup visa and various subsidies for setting up an office.”
The Japan External Trade Organization (JETRO) has played a vital role in the process, Sasha explains, with many branches all over the world and major Japanese cities, all striving to promote Japan as a new startup hub.
CES 2021 was particularly eventful for Japan, with a total of 53 startups participating in the virtual event.
“Since 2018, JETRO has been working on J-Startup, the ambitious program to breed unicorns and help Japanese startups succeed overseas. Every year, the number of selected startups is growing, along with the quality, and I expect more companies joining global tech fairs next year.”
mui is one of Sasha’s favourite startups. Originating from Kyoto, the company develops beautiful wooden devices for mindful digital living.
“I’ve visited their office several times and was always fascinated by the strong vision behind the product. Drawing the inspiration from a ‘calm technology’ concept, mui is one of the few startups making lives convenient and distraction-free.”
More generally, Sasha believes several tech startups are doing particularly well in Japan.
“Let’s look at the top-funded domestic startups in 2020. Many fintech (Hey, Paidy, Kyash etc), several mobility (Looop, SkyDrive), energy (VPP Japan, Spiber) and SaaS companies are on the list.
“I’d say that tech startups disrupting the banking industry in Japan have a potential to fill the needs of the Japanese market, and considering the damage done by the pandemic, will be on the rise from now on.”
Still, the damage has been considerable, according to the Tokyo-based journalist.
“The pandemic has definitely affected the funding situation in Japan - several of my connections had their investment rounds postponed and/or checks getting smaller.”
However, it also opened up new opportunities and many new businesses sprung to tackle new challenges.
For example, Japan Hackathon 2020 organisers chose ‘remote work’ as a theme, and ed-tech startup Odaiba won the first place thanks to its innovative approach in solving problems with socializing at quarantine-time schools.
“A few days ago, Japanese startup AI Inside announced its expansion to Vietnam after succeeding in the domestic market and will digitise governmental paperwork there. New times, new startups.”
❓ Want to find out more about the latest tech news in Japan?
🔗 Here is the newsletter’s link section:
Japan's Toppan acquires iDGate to beef up ID security - Nikkei
Fugaku tackles world's biggest problems - Japan Times
Masks no obstacle for new NEC facial recognition system - Reuters
99.99% of coronavirus killed in 30 seconds with UV LED - The Mainichi
Sony showcases road test of prototype EV - NHK
Hiroshima to conduct PCR tests to battle COVID-19 - Reuters
Firm uses school pools to improve solar system efficiency - Kyodo
Japan eyes use of robots to boost COVID-19 testing - Japan Today
Japan's next mainstay rocket shown to media - NHK
Fukushima College robot wins nuclear decommissioning prize - Kyodo
No Sushi, No Life Virtual Reality game - Grape
Ex-SoftBank worker suspected of stealing 5G info - NHK
US variant of coronavirus found in Japan - NHK
Trains in Greater Tokyo will stop running earlier from Spring - TimeOut
Soaring demand for electricity amid cold causes crunch - The Mainichi
Subaru to cut output at plants due to global chip shortage - Reuters
Striking Satellite Images Show Mount Fuji's Sad Snowcap - Gizmodo
30 people charged for exchanging stolen cryptocurrency - Kyodo
Japan’s Moonlight Nagara train service ends - Sora News 24
Chaos in Japan as crowds rush to buy PS5 - The Telegraph
Vacation home offers Japanese bath with light projections - TimeOut
Odour analysis start-up can tell if you stink - The Asahi Shimbun
Here’s why Japanese supermarkets play “cheap” music - Sora News 24
Digital art sauna by teamLab unveiled in Roppongi - Time Out
Arcade breaks world Record for most crane games - Sora News 24
Da Vinci's Last Supper analyzed scientifically - NHK
Neon Genesis Evangelion ATMs voiced by official actors - Grape
Here’s Japan’s first international VR film festival - Grape
Hakodate Winter Festival adds digital projection - TimeOut
People are paying big money for an old cassette tape - Sora News 24
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