ICT Startup League

The 7th Startup League Academy was held in Tokyo on December 9th.

After the secretariat explained the flow of the day, each participant gave a brief introduction before moving into the sessions.

■ Talk Session: "Foundations of Overseas Expansion Strategy"

The main session featured a lecture by Alex Taisuke Odajima, a member of the steering committee. Mr. Odajima serves as the Japan Representative for Start2 Group, which has supported over 2,000 startup expansion cases. Drawing from this organizational expertise and his personal experience directly assisting approximately 200 companies, he discussed the fundamental mindset and strategic importance of going global.

Japan's GDP accounts for roughly 4% of the global total, which is comparable to the scale of Saitama Prefecture within Japan. Therefore, Mr. Odajima explained, "Operating a business only in Japan is equivalent in scale to operating a business only in Saitama." For startups aiming for significant growth, overseas markets are indispensable; there are limits to completing a business solely within Japan. "Please recognize that overseas expansion is not a 'growth strategy,' but a 'survival strategy'."

Point 1: Four Elements Gained Through Global Expansion

Mr. Odajima explained that when expanding overseas, companies should look beyond just "markets" to include four key elements: human resources, technology, and capital. Human resources are particularly vital: "Overseas, there is a tendency to find highly talented individuals with a challenger spirit, specific skills, and a startup mindset. Furthermore, the fact that they can 'work with Japan' is a strength that attracts talent, and companies should leverage that value for recruitment." Additionally, expansion leads to incorporating technology through collaboration and open innovation with international startups.

Point 2: Choose Based on "Demand," Not "Feasibility"

When selecting a country or market, considerations fall into two categories. One is supply-side readiness, such as production lines, regulations, tariffs, and local partners. The other is demand-side readiness, such as whether customers with the ability to pay exist and if the company's value proposition holds up. Many entrepreneurs tend to prioritize ease of entry or loose regulations due to their success in Japan, neglecting the demand side. "What truly matters is whether there is a need locally. You should verify the need strictly; if confirmed, decide to enter even if the preparation is difficult. If there is no need, it is crucial not to be swayed by ease of entry," Mr. Odajima advised.

Point 3: Correctly Understand the Problem and Value Proposition

When verifying needs, it is important not to confuse context with the actual problem. It is essential to dig deep into the essence of the problem through local interviews to increase clarity. Mr. Odajima recommends a flow of "clearly defining the benefits of your solution, dividing that by the 'adoption hurdles' (barriers to acceptance) based on local circumstances, and calculating the true value proposition." This process allows for a calm assessment of whether your solution (the "peg") fits the local need (the "hole"), avoiding situations where the solution is distorted by trying to force a fit.

Point 4: Identify the Optimal Market and Focus

Rather than vaguely heading "overseas," it is vital to narrow down targets with high resolution by country, region, and industry. For example, even within Germany, the market characteristics of Hamburg and Berlin differ significantly. Therefore, companies should carefully select the best fit using a matrix of "Country/Region x Industry." Furthermore, instead of chasing multiple markets out of fear of lost opportunity, one should identify a foothold market and focus resources to cultivate it reliably. Mr. Odajima noted, "Startups with limited funds and resources, in particular, increase their win rate by narrowing down and committing to a specific industry."

Point 5: Challenges and Solutions for Raising Funds from Overseas VCs

The scale of overseas fundraising is orders of magnitude larger than in Japan, with Family Offices and Private Equity (PE) firms being prominent in Europe and Southeast Asia. Family Offices, in particular, actively invest in startups and can provide long-term support without being tied to short-term recovery cycles. However, for overseas investors, Japanese startups often present high barriers due to a lack of English websites (making information hard to find), small scale, limited exit strategies (primarily IPO-focused), and differences in accounting standards and tax rates. Mr. Odajima concluded that if a company is serious about overseas procurement, "it is necessary to establish a system as a global company, including English PR, expansion into markets outside Japan, compliance with international accounting standards, and registration in the US."

Summary

At the end of the session, a participant asked, "What kind of Japanese startups are successful in expanding overseas?" Mr. Odajima cited unique technical capabilities that cannot be easily imitated as the primary condition. "Especially in areas where imitation is difficult, such as hardware or deep tech, demand can be found overseas." He added, "An entrepreneur's overwhelming passion and full commitment are also critical factors in overturning expectations and seizing opportunities for success."

He summarized that the most important step in overseas expansion is determining "demand" over "feasibility." To do this, it is indispensable to accurately grasp the problem and the value proposition, consider the hurdles to entry, and then select and focus on the most suitable market.

■ Value-Up Session

EfficiNet X Inc.: Development of a General-Purpose Multi-Agent Deep Reinforcement Learning Library

The first speaker was Mr. Shintaro Nakamura, CEO of EfficiNet X Inc.

Business Overview and Challenges:
The company researches and develops AI capable of "team play," aiming to equip AI with the ability to collaborate and achieve goals as a team. AI teamwork facilitates social transformation, making it crucial for robots to cooperate with each other and with humans to perform complex tasks. Applications span diverse fields such as defense, urban energy management, construction, space, and agriculture—ranging from coordinating robot positions to controlling power demand across an entire city.

Ongoing projects include open-sourcing a multi-agent AI library designed for use by engineers across various industries. In a company-wide decision-support project, they are developing a system where multiple AIs collaborate to provide answers to large-scale production decisions. They are also co-developing a physical interface (involving physical contact and operation) with a major domestic manufacturer, assuming logistics involving distributed trucks, drones, and robots.

The five-year vision includes collaborative development with hardware such as humanoid robots and unmanned aerial vehicles. In addition to expanding as a general-purpose platform regardless of industry, the company emphasizes collaboration with R&D departments of large corporations. Currently, recruiting engineers who could become future CTO candidates is an urgent task.

Words of Wisdom from Experts:

Steering committee member Hiromi Okuda (CEO of Wiz Group Co., Ltd.), participating online, pointed out that the first thing to show is a unified "mountain to climb" (goal). She suggested clarifying whether to run as a research-specialized entity or a startup-oriented one that solves social "pain points." "The choice will dictate the type of talent you need and your management policy. Avoiding a halfway stance will make it easier to attract like-minded partners and define the direction for fundraising and commercialization."

When Ms. Okuda followed up by asking, "What kind of landscape do you aim for?" Mr. Nakamura explained his ideal of an AI robot world with emotions and cooperativeness, similar to Doraemon. "The relationship between robots, like human society, encompasses both orderly and chaotic states. I envision a future where many robots exist in physical space and engage in team play."

Selection committee member Hiroyuki Kobayashi (President of Deloitte Tohmatsu Deep Square Co., Ltd.) expressed high hopes for applications in depopulated areas. "In rural areas like my hometown in Nagano Prefecture, bus routes and deliveries are decreasing, making it difficult for the elderly to get to town. By introducing regional AI and agents, transportation and logistics issues could be significantly resolved. If AI tailored to each region is used according to people's personalities and preferences, residents will likely accept it positively."

Steering Committee Chair Tadashi Fukuda re-explained the significance of this Value-Up Session. "This is not just a place for pitches or commentary; we aim for practical support to specifically increase business value. We emphasize sharing actual programs, prototypes, and blueprints to show concrete improvements and business expansion strategies." He requested that participants clearly state what they want—whether to sell a product, fix a program, or receive market entry support—and asked supporters to provide information that can be translated into actionable steps.

tayori Inc.: PoC Development of "tayorie," an Ending Support Service

The second speaker was Ms. Misaki Naobayashi, CEO of tayori Inc.

Business Overview and Challenges:
"tayorie" is an end-of-life (shukatsu) support service born from Ms. Naobayashi's personal experience with sudden bereavement. It was developed to solve two burdens faced by survivors: the emotional burden of "not having casual daily memories at hand" and the practical burden of "lacking information on the deceased's intentions, banking, and assets." However, while many people want to perform end-of-life planning, only about 8% actually do so. Existing tools like "ending notes" and apps have struggled to gain widespread adoption.

Consequently, the service underwent a pivot in content and format. The message format was changed from a traditional letter style to a short, X (formerly Twitter) style "tweet." By automating the message compilation and letting users choose the delivery timing, the completion rate jumped from 25% to over 60%. Furthermore, the target audience shifted from "people who want to leave something behind just in case" to "parents of young children who want to record small daily joys." Current users number about 5,000, primarily women in their 20s and 30s.

Currently, they are moving toward monetization through OEM provision to insurance companies, but expansion in the initially intended "ending" (funeral/inheritance) sector has stalled. Moving forward, they need to look beyond just the ending sector to explore collaborations with partners in various life-event industries and consider new revenue channels that directly connect with customers.

Words of Wisdom from Experts:

Regarding end-of-life planning, Ms. Okuda noted, "In Japan, the starting point is often 'not wanting to be a burden to children,' but essentially it has a strong meaning of passing on good things inherited from the previous generation. I believe end-of-life planning is not just about closing a chapter, but an act of giving wings to the next generation." In response, Ms. Naobayashi admitted, "I feel both the informational aspect of 'not being a burden' and the emotional aspect of 'connecting to the next' are important, but I am still trial-and-erroring which to prioritize for penetration."

Mr. Fukuda suggested an approach common to various problem areas such as matching, insurance, pet medical care, entertainment, memory storage, and travel. "First, set a simple and effective core function, then automate and optimize the user experience through AI and integration with existing services. If necessary, scale through patents, licensing, or collaboration with external partners."

Mr. Kobayashi praised the presentation, saying, "The focus is excellent, and customer response will likely be good." On the other hand, he pointed out that from a user's perspective, interest peaks at the moment of signing an insurance contract and then fades. "You need to capture that peak momentum and lead it to important actions. If you create a mechanism to encourage continuation based on assets they don't want to lose—like photos or billing data—you can make it a place they reliably return to at important milestones, such as the birth of a child."

Selection committee member Nobuyuki Matsuda (CEO of Booster Knob Inc.) argued, "It is important to look flatly at what you essentially want to do without being bound by the word 'shukatsu,' and reconstruct based on what should be left behind and the needs of the receiver." Since what the person wants to leave and what the bereaved want to receive do not always match, he advised that handling this gap is a major design challenge: "It might be more effective to first establish simple functions for a specific persona, and then create separate apps or developments for different needs."

Selection committee member Toshiya Haida (Executive Vice President of IACE Travel) noted that tayorie is text-based. "While keeping the possibility of adding photos, videos, and audio in the future, I think recording personal thoughts and details that can only be conveyed through language in text is a key point." For long-term life events and challenges of how young generations record future events, he suggested, "Consider a mechanism to summarize words based on text and record them in an app."

Steering committee member Yoshinori Sasaki (Executive Officer of GaiaX Co., Ltd.) praised the current success of the PoC with the insurance company but proposed, "Don't stick to the current product; use that environment to refine it into a form that truly resonates with users. If necessary, consider changing the customer segment and transition to a new business model based on the results obtained."

■ Event Summary
The Academy concluded with the always-popular networking session. Participants and supporters engaged in deep one-on-one conversations or formed small circles to exchange lively opinions.

Mr. Odajima, who felt he conveyed all essential content within the limited time, introduced his support programs to the participants. "To optimize expansion into Singapore, India, China, and South Korea, we will conduct four verification programs next year tailored to each country. The plan is for businesses to confirm market fit and, if appropriate, use that as a starting point for full-scale expansion. Anyone thinking of entering these four countries should definitely participate."

Mr. Nakamura of EfficiNet X Inc. reflected, "I think there are challenges somewhere, but I haven't clearly grasped them myself. Also, because AI capable of teamwork isn't widely recognized, I focused on making it known this time, which deviated slightly from the intent of the Value-Up Session. Even so, I was very grateful for the many questions I received."

Ms. Naobayashi of tayori Inc. spoke of her results: "It was completely different from a normal pitch; I was so happy to feel an atmosphere where everyone thinks together about how to make the current situation better. Because the opinions were given in such a setting, they were easy to accept, and the best part was feeling motivated to use what I learned so as not to waste it."

Finally, Mr. Fukuda announced, "From the next session onward, we plan to invite more practical guests and corporate representatives." The Academy is now moving into a phase where specific means for global expansion and market entry will be presented.