ICT Startup League

On January 13, the 9th Startup League Academy was held, starting the new year with a fresh sense of purpose. The session began with self-introductions from the selected participants attending in person.

Following this, Mr. Tadashi Fukuda, Chairman of the Steering Committee, gave the opening remarks: "In the midst of global instability, startups have no time to waste. I want you to view the new year as a turning point for your lives and businesses. Use this Academy's value-up sessions to raise your perspective and move forward to the next step."

He further spoke passionately about the nature of startup support, using the "League" system in the sports world as an example. "In baseball, Hideo Nomo paved the way, creating the soil for stars like Shohei Ohtani to emerge. In soccer, the FIFA system ensures that when players grow and move to overseas clubs, 'Training Compensation' is returned to the original club, creating a virtuous cycle. Japan's startup ecosystem must similarly create a cycle where individual players grow, global teams (markets and investors) come to scout them, and those results fuel the development of the next generation," he said, emphasizing the significance of the Academy as a "League."

■ Talk Session: "Global Ecosystems You Must Know for Growth"

This session featured a talk by Ms. Ayumi Fujimoto, a member of the Steering Committee and Representative Director of the Startup Ecosystem Association Japan. Drawing on her own experience and extensive data, Ms. Fujimoto lectured on the definition of startups and ecosystems, and how to compete in the global market.

Point 1: The Definition of a Startup is "Rapid Growth"

Quoting Paul Graham of Y Combinator, Ms. Fujimoto defined a startup as "a company designed to grow fast." She argued that the essence of a startup is not the presence of technology or the number of years since founding, but the speed of growth.

According to the OECD definition, companies with an annual turnover growth of over 20% for three consecutive years are called "Scale-ups." Ms. Fujimoto introduced the even stricter reality of Y Combinator, which requires 5-7% growth per week (roughly 30x annually). "There are players in the world living at this speed. How will you compete among them?" she asked the audience.

Point 2: Subsidies are Merely "Booster Rockets"

While Japan's support environment for startups has improved, Ms. Fujimoto warned against over-reliance on subsidies. Subsidies should only be "booster rockets" to accelerate growth. However, under Japan's current system, there are cases where business plans are tailored to fiscal budgets or application schedules, causing the necessary "rapid growth" momentum to be lost. "Don't determine your growth rate based on a budget; instead, think about how to use subsidies to fit your own growth speed. Keep the priorities straight," she emphasized.

Point 3: The Essence of an Ecosystem is "Interaction"

She explained the concept of an "ecosystem." While the term originates from biology, in business it refers to a "system where physical and virtual resources (people, places, capital, ideas, etc.) interact and develop together."

Ms. Fujimoto pointed out that the global ecosystem is no longer "Silicon Valley alone," but a landscape where countries form ecosystems using unique strategies. For example, in France, under the national project "La French Tech," regional industrial clusters are leveraged—such as aerospace in Toulouse and maritime industries in Brittany.

Point 4: Compete in the Optimal Location

"When aiming for global expansion, you should consider which country's ecosystem will allow you to grow the fastest. Silicon Valley is not the only correct answer," she said, stressing the importance of a broad perspective.

Whether it's France or Spain leveraging industrial clusters, or Saudi Arabia providing state-level startup support, diverse ecosystems exist worldwide. Identifying the "optimal soil" for your product and phase—where growth barriers are low and resources are abundant—is the key to increasing your winning percentage globally.

■ Value-Up Session

The second half of the event featured value-up sessions by three selected companies. Mentors provided specific advice addressing the unique challenges of each company.

Metachrosis Inc.: Development of a system for generating clothing images reflecting realistic sizing.

The first presenter was Mr. Kohei Arai of Metachrosis Inc., which develops a generative AI application specifically for apparel companies.

Business Overview & Challenge:
The company develops a service that eliminates the need for model shoots by using AI to instantly convert product photos (mannequins or flat lays) into high-quality model-worn images. While competitors use expensive GPU servers in the cloud, Metachrosis's strength lies in providing a lightweight on-premise environment that runs even on gaming-PC level GPUs. This makes it easier for major apparel companies concerned about data leaks to adopt, while simultaneously reducing photography/copywriting costs and improving CVR (conversion rates).

Challenge 1: Risk of Commoditization:
As generative AI technology from tech giants like Google improves, equivalent functions may become common or free within 1-2 years. The challenge is how to maintain their current technical advantage and differentiate themselves.

Challenge 2: Direction of Business Expansion:
The apparel industry is characterized by high variety and low unit prices. Given the tough market environment, there are concerns about whether they can achieve a "J-curve" growth by focusing solely on this sector. The dilemma is whether to stay specialized in apparel or expand the technology to other industries.

Words of Wisdom from Experts:

Mr. Fukuda noted, "It's tough to compete against Google's capital and speed," suggesting they "must be prepared to win through sales power, such as a technical buyout or providing OEM to specific giants." As a first step, he immediately proposed PoCs and introductions to specific companies like TSI and Onward.

Ms. Fujimoto focused on "return rates," a major E-commerce hurdle. "Beyond just image generation, you should provide additional value—such as allowing users to check fit with their own avatars—to reduce return costs," she advised.

Steering Committee member Mr. Yoshinori Sasaki (Executive Officer, Gaiax Co., Ltd.) gave some tough love: "The customer's goal isn't image generation; it's sales growth and cost reduction. To commit to that, especially for B2C, you need to repeat validations at overwhelming speed."

Selection Committee member Mr. Nobuyuki Matsuda (CEO, Booster Knob Inc.) suggested global positioning: "Instead of just the highly competitive Japanese market, you should approach niche overseas markets with different values, such as diversity or ethical standards, using a different angle."

Sukidayo Inc.: Hypothesis validation for the commercialization of a global AI Couple-Tech app.

The second presenter was Ms. Yuka Atsuta of Sukidayo Inc., which operates the couple-tech app "Riamo" to improve partner relationships.

Business Overview & Challenge:
Addressing social issues like Japan's high divorce rate and deteriorating marital relations, this app uses AI to mediate and facilitate conversation between partners to support relationship building. It turns mundane "logistical" chats (common on tools like LINE) into active engagement through AI-driven "prompts." This "Couple-Tech" market is growing rapidly, reaching a global scale of $7.3 billion. Riamo has seen a strong start, with 47% of male users inviting their partners immediately after release, and has already completed its initial funding.

Challenge 1: Global Strategy Dilemma:
While they launched with multi-language support under a "Global from Day 1" policy, 90% of current users are Japanese. Overseas user growth hasn't met expectations, and they are struggling to decide which region to conquer next.

Challenge 2: Regional Aesthetic Preferences:
Western audiences find the UI "too childish," whereas Asian markets prefer the cute design. They are torn between "going all-in on Western aesthetics," "attacking similar Asian cultures," or "trying to capture both."

Words of Wisdom from Experts:

Regarding Ms. Atsuta's inquiry about traveling to Korea, Ms. Fujimoto noted, "The Korean startup ecosystem is very active and welcomes entry from overseas," promising connections to local support agencies and communities.

Mr. Fukuda suggested, "Just create all UI patterns and let the users choose," while adding, "To chase market size, you should approach the 'pre-couple' stage." He recommended initial test marketing in the Japan-friendly Thai market.

Selection Committee member Mr. Isao Tanimoto (President, Toms Co., Ltd.) positioned himself as a "representative of lazy male users" and noted, "Men need a clear trigger to start using it." He proposed specific use cases: "If you use life events men can't ignore—like fertility treatment or child-rearing—as a hook to recommend related services, it creates a motive for use and makes monetization easier."

Selection Committee member Mr. Junichi Tanaka (Executive Officer, Persol Business Process Design Co., Ltd.) suggested looking into local government partnerships. "Governments are moving to support relationship building as part of measures against the declining birthrate. Linking with public initiatives could improve credibility and user acquisition."

Mr. Sasaki offered an inspiring challenge: "If you raised funds by promising investors you would 'go global,' don't run away from large English-speaking markets. Even if you spend all your money and fail there, that experience will lead to your next challenge."

Regarding global expansion, Mr. Matsuda presented a strategic alternative: "It's impossible for one product to cover everything. Since the nature of couples varies by country and race, you should consider a 'don't build it yourself' strategy—such as acquiring local couple-tech apps or holding global hackathons to have locals build what fits their culture."

KNiT Inc.: Science of Cuticles with AI — A New Service Quantifying Hair Condition.

The third presenter was Mr. Takuma Nishimoto of KNiT Inc., which develops technology to quantitatively evaluate hair damage from cuticle images.

Business Overview & Challenge:
Traditionally, hair damage assessment for recommending shampoos or treatments in salons relied on the stylist's intuition. KNiT is developing a solution to provide a scientific basis for this. By using proprietary AI to analyze cuticle images, they visualize damage levels as quantitative data. This allows for optimal product recommendations and treatments tailored to each individual's hair condition, aiming to improve the quality of counseling in the beauty industry.

Challenge 1: High Barrier to Entry:
Accurate analysis requires expensive microscopes with 500x magnification, making it difficult for many salons to adopt.

Challenge 2: Business Model Construction:
They are seeking advice on developing cheaper devices and determining which channels to prioritize for monetization while proceeding with fundraising.

Words of Wisdom from Experts:

Mr. Fukuda warned that "a model based on selling expensive equipment is tough," citing his experience with an oxygen capsule business. "It scales better if you place equipment for free in various locations (stations, drugstores) and charge per analysis, or include it as a subscription benefit for corporate wellness programs." He suggested expanding beyond salons to places where health-conscious people gather.

Ms. Fujimoto agreed, noting "the segment buying salon-exclusive products is limited. Most people buy shampoo at drugstores." She suggested partnering with drugstore chains. "If people can check their hair like a regular health checkup and get recommendations for over-the-counter shampoo, many would use it."

Drawing from past consulting experience, Mr. Matsuda pointed out that "practically, it's hard to distinguish shampoo choice based on a few points in a cuticle score." He suggested shifting the business process: "Don't obsess over on-site analysis. There's enough value in collecting hair at the salon and mailing it for a detailed report later. The fact that it takes time can actually increase the perceived value as a 'serious test,' and the report can be used to drive return visits to the salon."

■ Event Summary
After all programs concluded, the venue remained filled with energy as participants moved into networking time.

Reflecting on the sessions, Ms. Fujimoto stated, "I wanted to convey the global standard for speed. While we discussed ecosystems, the most important thing is 'what is happening in the world' and 'speed.' Especially in fields with rapid technical innovation like AI, if you lose to major players on speed, you lose the market. By showing a specific target of '5-7% weekly growth,' I think we successfully shared a healthy sense of urgency with the presenters."

In response, the representatives of the three companies also felt the impact.

Mr. Arai of Metachrosis Inc. commented, "I received meaningful feedback on overseas market possibilities and business model pivots that we hadn't fully considered. I want to move forward by identifying what to stick with and what to let go."

Ms. Atsuta of Sukidayo Inc. said, "I felt like my eyes were opened by the high-level advice that suggested there's a more essential solution beyond my three choices. I want to aim for that '5-7% weekly' growth and increase our speed further."

Mr. Nishimoto of KNiT Inc. shared, "My perspective broadened through multifaceted advice I couldn't have reached on my own. It's not just the experts—other participants are sharing manufacturer info, showing the power of the 'League' connections."

This event served as a return to the core definition of "Startup = Rapid Growth," sharing a global sense of speed. The specific metric of "5-7% weekly growth" presented by Ms. Fujimoto seems to have been a turning point for participants to objectively re-evaluate their business momentum. All eyes are now on how these lessons will translate into future growth for these companies.