#26 Major change of Japanese large corporation with startups globally
Time to be fairly and mutually collaborated with strong synergies
What happened in last 5-10 years between Japan’s large corporations and startups
Japan’s large corporations are typically seen as conservative and domestic in their business strategy. However, a major change has been taking place over the past 5-10 years.
And a little bit updated attitude and mindset keep on going on their ground and upgrading a little by little forward.
Sensing the limits of only developing new services and products in-house in this VUCA(Volatility, Uncertainty, Complexity, Ambiguity) era, their corporations are now pursuing business development and investment opportunities with startups, and becoming more serious and practical.
This promising new trend is not limited to local and national, Japanese startups either.
There are many strong Japanese startups around them, but looking globally, they could see a greater number and stronger quality of startups.
They would definitely continue to approach startups outside of Japan.
It is essential for them to also work with startups making services that are outside or surpass their current businesses and portfolio. There are so many examples and cases of that taking place between their Japan’s large corporations and startups globally.
Sensing the limits of only developing new services and products in-house in this VUCA(Volatility, Uncertainty, Complexity, Ambiguity) era, their corporations are now pursuing business development and investment opportunities with startups, and becoming more serious and practical
There are some of interesting cases recently taking place in that ecosystem.
Recently, Japan Post Group, Japan Post Bank decided to spend $7bn on turning startups into unicorns across the country, leveraging its nationwide postal network to identify promising businesses.
They said that "There are too few unicorns in Japan. We will take risks and take on growth investment."
Surely good movement even though we can't simply count the unicorns in Japan since there are many unicorns leveled values new businesses generated inside their large giant companies and their inner ecosystem.
The startup and new business development ecosystem in/from Japan is diverse and a bit unique in global perspective due to their history.
Mega Lenders including Sumitomo Mitsui Banking and Mizuho Bank are planning to increase the staff they allocate to startup businesses in a move driven by the government’s plan to stimulate entrepreneurship.
Bankers chase startups in Japan as funding dries up elsewhere
Just a few years ago, getting a bank loan and investment to finance early-stage ventures was a rare occurrence or nothing in Japan, but yes, That’s now slowly slowly changing.
Even their local banks.
So many new approaches and challenging around and within them, but they are always lack of expertise, experiences, skills, capabilities etc in their trying new areas.
That is why practical synergies tie-up with fit well experienced business partners in each area must be essential not only in local national community based but global international based.
Some would go ahead, but many of others would stand as they are currently or step back.
Severe world.
many new approaches and challenging around and within them, but they are always lack of expertise, experiences, skills, capabilities etc in their trying new areas.
That is why practical synergies tie-up with fit well experienced business partners in each area must be essential not only in local national community based but global international based
One of their Mega Bank, Mizuho to Start $72 Million Debt fund targeting Japan’s Tech startups. Japan seeks to expand startup financing, nurture more unicorns. Firm’s alliance with Lombard Odier Group to train private bankers.
The 10 billion yen ($72 million) fund will launch soon, financed entirely by Mizuho and seek to invest in mid to late-stage startups where there is strong demand for debt, and more of these firms now prefer loans to equity financing that dilutes ownership stakes.
With little track record and many yet to make money, startups have traditionally found it hard to secure loans, though this is changing with the megabanks starting to increase lending to them. These new funds can be hopefully another avenue to boost funding for the firms.
They said the fund’s main focus is likely to be startups in deep tech fields such as bio and renewable energy, as well as those that need to spend a lot on research and development before being able to turn a profit.
Not only for Mizuho but also for other mega banks, courting future unicorns serves another purpose of building up its pipeline of wealth management clients.
Most of its private banking customers in Japan are business owners and the bank wants to lock in a relationship with future IPO millionaires through approaching startup founders at earlier stages.
Business succession planning and execution are also among the most popular services sought by Japan’s wealthy, and the bank is boosting efforts to tap on these needs.
Temasek's VC arm Vertex raises $900m in first round of new fund.
Development Bank of Japan and trading house Marubeni Corporation are among the investors.
Vertex Venture Holdings, Vertex Ventures, the venture capital arm of Singapore's state investor Temasek Holdings, has raised over $900 million in the first fundraising round for its latest fund.
The Vertex Master Fund III, set up in 2021, closed its first round at the end of June. Its total fundraising target of $1 billion is slated to be reached "in coming months.
Their Japanese giants would like to more engage in local startups in the Asean region etc, trying to facilitate more synergies and collaborations between startups in Japan and Asean market.
That is one part of where we have been strategically and practically supporting and assisting for.
Their Japanese giants would like to more engage in local startups in the Asean region etc, trying to facilitate more synergies and collaborations between startups in Japan and Asean market
Japan's top liquefied natural gas buyer JERA Co.,Inc. will invest $300 million in green technology-focused start-ups through a newly created in-house unit, as part of the country's efforts to reach carbon neutrality by 2050.
Japan's JERA to invest $300 million in green tech-focused start-ups
JERA, also Japan's biggest utility, would target start-ups globally which develop decarbonisation technologies including hydrogen, ammonia and other renewables, digital technologies as well as those focusing on women's health.
Venture capital funds, VC, which are linked to such start-ups would also be investment targets for them.
JERA also announced strategic collaboration agreement with ADNOC Group from the United Arab Emirates, UAE to cooperate in clean hydrogen and ammonia, following Japan Prime Minister Fumio Kishida's visit to the Middle East.
JERA has also signed a memorandum of understanding with SaudiArabia's Public Investment Fund which leads decarbonisation drive in the world's top oil producer to explore development of green hydrogen projects and derivatives.
As everyone know, energy sectors have been facing paradigm shift era now which means that their energy major giant must newly invest into new and innovative sectors and areas within and around the energy spaces.
Big chance for anyone to combine and create mutual synergies between their giant majors and startups, creative innovative parties.
Interesting feature of Japanese companies, a bit different with non-Japanese companies
Objectively seeing and hearing from the business persons in the world whom we closely know, the one big difference is the emphasis that Japanese companies put on “relationships”.
It can take some time to build trust, but once someone is your partner, they will support you for the long haul. That is a big plus for doing business with Japanese firms.
In other countries, it is possible to get an agreement in only two meetings or one day but the relationship might end only one month later once the project is completed.
That sort of transactional approach can also be good, but many good business persons anywhere in the world are looking businesses as part of their long-term plan and strategy so they must have a deep appreciation for how Japanese companies come to view them as equal partners in mid-long term basis.
As part of the relationship building, it is also important to show sort of commitment to Japanese companies in equal ways.
It can take some time to build trust, but once someone is your partner, they will support you for the long haul
Any opportunities become more open to any potential startups in the world with such Japanese corporations.
Message to leaders in such startups, don’t forget to rightly behave and make relationships in longer, wider, and deeper viewpoints with them.
I would keep digging about here’s topic.
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