Disrupting Japan

So many things that are labeled as "cultural differences" have much simpler explanations. There are perfectly rational (and even mathematical) reasons why we have not seen a lot of entrepreneurship in Japan over the last 50 years, why we are starting to see a lot more of if now, and why we are likely to see an explosion of Japanese startups in the coming decade.

So many things that are labeled as "cultural differences" have much simpler explanations. There are perfectly rational (and even mathematical) reasons why we have not seen a lot of entrepreneurship in Japan over the last 50 years, why we are starting to see a lot more of if now, and why we are likely to see an explosion of Japanese startups in the coming decade.

Gengo understands the need for small-batch translation. Global communication takes place exponentially faster than the project management cycle, and understanding is way too important to be left to machines. And with even the smallest and most early stage startups understand the importance of going global, Gengo seems to have found their niche.

Matt and I talk about the growth of the company, the changing nature of startup investment in Japan and the rest of Asia, how to recruit and retain high-powered engineering staff in a hyper-competitive environment and the significance of foreign entrepreneurs in Japan.

One of the most interesting topics we cover, however, is how Matt (and Gengo) are handling the recent change in CEO. It's always a difficult transition and many companies don't survive it. In this frank discussion without the usual platitudes, Matt explains the specific steps he’s taking to bring openness and transparency to all of Gengo’s stakeholders, and he also explains the changes he had to make in himself in order to take Gengo to the next level.

It’s a great interview and I think you’ll enjoy it.

Gengo understands the need for small-batch translation. Global communication takes place exponentially faster than the project management cycle, and understanding is way too important to be left to machines. And with even the smallest and most early stage startups understand the importance of going global, Gengo seems to have found their niche.

Makuake is one of Japan's largest crowdfunding platforms. It was spun out of CyberAgent in 2013 with Ryotaro Nakayama (or Naka as his foreign friends call him) as CEO.

Crowdfunding has taken off more slowly in Japan than it has in the US, and it has followed a different growth path. It started out primarily as a way to raise money for charitable causes and at the moment crowdfunding  seems to be having a more significant impact on corporate Japan than on smaller Japanese ventures.

Of course, things are changing fast. More and more creative individuals are taking advantage of crowdfunding platforms, and last year the Japanese government amended the law to allow new ventures to raise capital via crowdfunding.

So perhaps we should say Crowdfunding in Japan is not only about startups

Makuake is one of Japan's largest crowdfunding platforms. It was spun out of CyberAgent in 2013 with Ryotaro Nakayama (or Naka as his foreign friends call him) as CEO.

Crowdfunding has taken off more slowly in Japan than it has in the US, and it has followed a different growth path. It started out primarily as a way to raise money for charitable causes and at the moment crowdfunding seems to be having a more significant impact on corporate Japan than on smaller Japanese ventures.

Yuta Inoue and Quantum have developed a model to help large Japanese companies both work with innovative startups and to remember how to innovate internally. Many find it hard to believe today, but Japanese companies used to be some of the most innovative firms on the planet, and Yuta explains how a few of them are now starting to return to their creative roots.

His approach is a combination of chaotic startup innovation, agency intermediation and corporate training, and after only one year, he they are already seeing the seeds of change at some of Japan's biggest companies.

These is as much creativity in Japan as there is anywhere in the world. The problem recently, however, has been in letting the innovation bubble up and commercializing it. This just might be the way forward.

Yuta Inoue and Quantum have developed a model to help large Japanese companies both work with innovative startups and to remember how to innovate internally. Many find it hard to believe today, but Japanese companies used to be some of the most innovative firms on the planet, and Yuta explains how a few of them are now starting to return to their creative roots.

Koichiro Yoshida took CrowdWorks from idea to IPO in less than three years, and today both CrowdWorks and crowd-sourcing in general are seen as essential to Japan’s future economy.  Just 10 years ago,  Japanese politicians pointed to freelancers and part-times as part of the cause of Japan's economic woes. Fortunately, Japan's leadership is now beginning to realizing that having a flexible and skilled workforce is actually a tremendous economic advantage.

Of course, since so much of modern business culture in Japan is based on the idea of belonging to a specific company, the move to large-scale freelancing will lead to large  social changes as well. Both good and bad.

Koichiro and I talk about the impact those coming changes will have, and about his own journey and how there were many years of preparation, hard work and painful failures hidden behind the "overnight success" of CrowdWorks.

Koichiro Yoshida took CrowdWorks from idea to IPO in less than three years, and today both CrowdWorks and crowd-sourcing in general are seen as essential to Japan’s future economy. Just 10 years ago, Japanese politicians pointed to freelancers and part-times as part of the cause of Japan's economic woes. Fortunately, Japan's leadership is now beginning to realizing that having a flexible and skilled workforce is actually a tremendous economic advantage.