THE BRIDGE

Masaru Ikeda

Masaru Ikeda

Masaru started his career as a programmer/engineer, and previously co-founded several system integration companies and consulting firms. He’s been traveling around Silicon Valley and Asia exploring the IT industry, and he also curates event updates for the Tokyo edition of Startup Digest.

Articles

This Chinese company built $120M per year business delivering ducks necks to geeks

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In China, duck necks are a popular food. And if you’re looking to find some, you might try the nearest Hahajing restaurant, a chain with over 1600 outlets in China. It’s main menu is duck meat, and even if you can’t visit the restaurant in person, the company prides itself on very fast delivery time, with food usually being delivered within 30 minutes. Hahajing opened just four years ago, but its annual sales amount to 700 million yuan (or about $120 million). As a comparison, Japan’s highest-grossing pizza chain, Pizza-La, has 535 outlets, and the company took 20 years to achieve 57 billion yen ($560 million) in the total annual sales, and that’s including the sales from its restaurant business. When you compare these two, it’s easy to see why speed of Hanhanjing growth is so impressive. We should clarify that you aren’t likely to see many people eating duck necks when you visit China. The company says that their main demographic/target is (for lack of a better word) geeks, or those who prefer to stay at home or in their room during the weekend. If you’d like to learn more about Hahajing, you can check out their website and…

hahajing-mac_

In China, duck necks are a popular food. And if you’re looking to find some, you might try the nearest Hahajing restaurant, a chain with over 1600 outlets in China. It’s main menu is duck meat, and even if you can’t visit the restaurant in person, the company prides itself on very fast delivery time, with food usually being delivered within 30 minutes.

Hahajing opened just four years ago, but its annual sales amount to 700 million yuan (or about $120 million).

As a comparison, Japan’s highest-grossing pizza chain, Pizza-La, has 535 outlets, and the company took 20 years to achieve 57 billion yen ($560 million) in the total annual sales, and that’s including the sales from its restaurant business. When you compare these two, it’s easy to see why speed of Hanhanjing growth is so impressive.

hahajing
Hahajing restaurant (photo hd55.cn)

We should clarify that you aren’t likely to see many people eating duck necks when you visit China. The company says that their main demographic/target is (for lack of a better word) geeks, or those who prefer to stay at home or in their room during the weekend.

If you’d like to learn more about Hahajing, you can check out their website and order page for more details. Or if you think you might be a frequent customer, you can also check out their iOS and Android apps for duck necks on the go should you ever need them.

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WWDC just not the same with ducks necks, packaged in foreground. (from Weibo user @xbxbxbb)

Japanese robotics entrepreneur forms $20M fund for bio and energy startups

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Our readers may recall that Japanese robotics company Schaft was recently acquired by Google and won the DARPA robotics challenge trials. Bloomberg reported yesterday that the company’s co-founder Takashi Kato will form a new 2 billion yen fund (approximately $19 million) for Japanese startups focused on biotechnology and energy efficiency segments. It will be called 246 Capital. In the process of negotiating with Google during the acquisition process, he tried to get funds from 10 investment firms and the state-run fund Innovation Network Corporation of Japan (INCJ). But his efforts didn’t work out. In response to this disappointing experience, he plans to launch a scheme to help Japanese engineers and scientists get funding to complementary to their research and development expenses. Kato hopes to invest in companies developing cancer treatment devices and analytics technology for genetics since his own mother died from skin cancer. Efforts from successful entrepreneurs that help others in the ecosystem is really a great thing to see in Japan. Our readers may recall that we recently featured a number of up-and-coming robotics startups from Japan, many of whose founders grew out from the creative digital company TeamLab. Via Bloomberg

Takashi Kato (picture from his website)
Takashi Kato (picture from his website)

Our readers may recall that Japanese robotics company Schaft was recently acquired by Google and won the DARPA robotics challenge trials. Bloomberg reported yesterday that the company’s co-founder Takashi Kato will form a new 2 billion yen fund (approximately $19 million) for Japanese startups focused on biotechnology and energy efficiency segments. It will be called 246 Capital.

In the process of negotiating with Google during the acquisition process, he tried to get funds from 10 investment firms and the state-run fund Innovation Network Corporation of Japan (INCJ). But his efforts didn’t work out. In response to this disappointing experience, he plans to launch a scheme to help Japanese engineers and scientists get funding to complementary to their research and development expenses. Kato hopes to invest in companies developing cancer treatment devices and analytics technology for genetics since his own mother died from skin cancer.

Efforts from successful entrepreneurs that help others in the ecosystem is really a great thing to see in Japan. Our readers may recall that we recently featured a number of up-and-coming robotics startups from Japan, many of whose founders grew out from the creative digital company TeamLab.

Via Bloomberg

Big data startup Hapyrus rebrands as FlyData, raises $1.6M

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See the original story in Japanese. Silicon-valley based Hapyrus, a Japanese startup focused on developing big data solutions, announced yesterday that it has raised $1.6 million from investors in Japan and the US, including 500startups. Coinciding with these funds, the startup will rebrand itself as FlyData and set up a local subsidiary in Japan. The company is led by Japanese entrepreneur Koichi Fujikawa, who previously worked with a number of prominent Japanese startups like Dennotai (acquired by Yahoo Japan back in 2000), Simplex Technology (TSE:4340), and Sirius Technology (also acquired by Yahoo Japan, 2010). They launched a new service called ‘FlyData for Amazon Redshift’ back in February, allowing automatic uploading and migration of data to Amazon Redshift, Amazon’s data-warehouse service. The decision to rebrand reflects the company’s intention to focus on providing and developing its FlyData service. Fujikawa explained the rationale behind this change at a press briefing yesterday: We’ve been originally developing middleware solutions for Hadoop, but I was so surprised when I saw Amazon Redshift for the first time. I thought that no other options besides Hadoop could deliver big data solutions that work, but in fact Amazon Redshift can do it for about $1,000 an year –…

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From the left: Kei Hareyama (country manager), Koichi Fujikawa (founder/CEO), and Daniel Saito (vice president)

See the original story in Japanese.

Silicon-valley based Hapyrus, a Japanese startup focused on developing big data solutions, announced yesterday that it has raised $1.6 million from investors in Japan and the US, including 500startups. Coinciding with these funds, the startup will rebrand itself as FlyData and set up a local subsidiary in Japan.

The company is led by Japanese entrepreneur Koichi Fujikawa, who previously worked with a number of prominent Japanese startups like Dennotai (acquired by Yahoo Japan back in 2000), Simplex Technology (TSE:4340), and Sirius Technology (also acquired by Yahoo Japan, 2010).

They launched a new service called ‘FlyData for Amazon Redshift’ back in February, allowing automatic uploading and migration of data to Amazon Redshift, Amazon’s data-warehouse service. The decision to rebrand reflects the company’s intention to focus on providing and developing its FlyData service.

Fujikawa explained the rationale behind this change at a press briefing yesterday:

We’ve been originally developing middleware solutions for Hadoop, but I was so surprised when I saw Amazon Redshift for the first time. I thought that no other options besides Hadoop could deliver big data solutions that work, but in fact Amazon Redshift can do it for about $1,000 an year – extremely cheaper than conventional technology. When Amazon’s mentor team came to visit 500startups where we were residing, they gave us a complimentary account for Amazon Redshift. When we tried it, it yielded 10 to 100 times better performance than Hadoop. It was then that we were convinced that we could not win with Hadoop.

While an abundant of solutions for cloud data processing are available, many companies have difficulty in uploading their data, and for many, their data remains in an on-premises environment. We found that there will be a pressing need to solve this issue, which led us to focus on our FlyData business.

flydata_logo

But it wasn’t easy reaching this conclusion. Fujikawa’s co-founders left the company because of a gap in their ideas about business strategy. But he believed in the potential of his business and raised $925,000 from investors in Japan and the US last summer. He succeeded in hiring competent workers through Japanese social recruiting platform Wantedly.

For companies, since FlyData technology uploads your data from an on-premise RDBMS (rational database management system) to cloud-based data warehouses like Amazon Redshift, you need to install a FlyData component on your RDBMS server. The component for MySQL is available for now, and components for PostgreSQL, Oracle, and Microsoft SQL Server will follow soon.

Since the 2013 launch, FlyData for Amazon RedShift has acquired more than 40 corporate users and has over 40% growth in sales every month. They’ve seen a striking increase in the growth here in Japan, across sectors like social gaming, ad tech, and digital marketing. Fujikawa noted that they have prominent clients like Brightroll, Upworthy, Datalot, Enish, and Tokyo Otaku Mode.

FlyData is also a qualified member of the Amazon Redshift Partners program, where we can find a number of their competitors, including Informatica, Talend, Attunity, and SnapLogic. Fujikawa explained a little more about their advantage over these competitors:

From my perspective, Informatica and Talend has many problems in supporting cloud platforms. And Attunity and SnapLogic have not yet made an impact in the Japanese market. In terms of a presence in Japan and the Asia Pacific region, I believe we have an advantage.

Furthermore, Amazon is good at cloud computing but is not as good with data located that’s located in a client’s on-premise environment. But we can handle it, so that we think we’re a good complementary service to Amazon. For the time being, we are currently providing the service for Amazon, which is leading this space, but partnering with other platforms like Google Big Query might be a potential option for us in the future.

Along with the launch of their subsidiary in Japan, a number of notable individuals have joined their management team. Their vice president of sales and international growth Daniel Saito co-founded Rimnet (one of Japan’s oldest internet providers, later acquired by PSINet) and was involved in launching MySQL K.K. Kei Hareyama was appointed as the country manager for the Japanese market, bringing over 12 years experience in the data analytics sector to the table.

In Japan, we’ve seen quite a few startups providing business centric services for global markets. On a related note, Treasure Data, another notable Japanese startup focused on big data solutions, also received angel investment worth $2.75 million back in 2012, with funds coming from several investors including Jerry Yang (Yahoo co-founder) and Yukihiro ‘Matz’ Matsumoto (the inventor of the Ruby programming language).

Chinese online flower shop forces men to choose their favorite girl

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Based on our previous article, in Japanese China is very good at finding business opportunities among the year’s many holidays. Valentine’s Day on February 14th, and Qixi Festival (often referred to as China’s Valentine’s Day), are both good examples of this. But China has one romantic service that you can use at any time of year, including Valentine’s Day. It’s online flower store RoseOnly, which we previously featured on our Japanese site. The online service began in January of 2013, selling roses for 1000 yuan (about $170), a price point that seems to be targeting the upper class. After a user places an order and enters the recipient’s information, a nice-looking guy delivers the roses in a BMW. Very impressive. But there is one very unique part of this service that stands out. When a male user signs up on the site, he has to register with his national identification card and he cannot specify more than one woman as a recipient – nor can he change the recipient at a later date. So if a man has a relationship with more than one woman, he cannot use the service for both. He would have to make a choice. Even…

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Based on our previous article, in Japanese

China is very good at finding business opportunities among the year’s many holidays. Valentine’s Day on February 14th, and Qixi Festival (often referred to as China’s Valentine’s Day), are both good examples of this. But China has one romantic service that you can use at any time of year, including Valentine’s Day. It’s online flower store RoseOnly, which we previously featured on our Japanese site.

The online service began in January of 2013, selling roses for 1000 yuan (about $170), a price point that seems to be targeting the upper class. After a user places an order and enters the recipient’s information, a nice-looking guy delivers the roses in a BMW. Very impressive.

But there is one very unique part of this service that stands out. When a male user signs up on the site, he has to register with his national identification card and he cannot specify more than one woman as a recipient – nor can he change the recipient at a later date.

So if a man has a relationship with more than one woman, he cannot use the service for both. He would have to make a choice. Even after a user breaks up with his girlfriend, he cannot send RoseOnly roses to a new girlfriend. In a way, that makes them extra special for anyone who receives them.

On Chinese Valentine’s Day, the sales on RoseOnly reached 11 million yuan ($1.8 million). Approximately 11,000 men sent roses using the service. And this success led the company to raise $10 million from Tencent in its series B round, and they opened their first brick-and-mortar stores in September.

The company says that it plans to launch a new service for men to send chocolates to women. I am sure that they are targeting for February 14th with this initiative. For more information, you can check out the RoseOnly promo video below.

Japanese social marketing company Allied Architects expands to Vietnam

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Tokyo-based internet company Allied Architects (TSE:6081) announced today that it has launched a social media marketing service using Facebook in Vietnam. For the company, this is its second international expansion following Taiwan back in 2012. In Vietnam, Facebook has surpassed the country’s local social network Zing Me in total users [1], and accounting for 22% of the country’s population as of last month [2]. The marketing platform is called Monipla, and it has been adopted by more than 500 companies in Japan and over 50 companies in Taiwan. As the first use case for the service in Vietnam, the company launched a Facebook promotion for the convenience store chain Ministop Vietnam, where users can get rewards by liking the chain’s fan page during the Vietnamese new year’s celebration. In this space, we’ve already seen more than a few players, including Kolor (by Interest Marketing), Crocos (acquired by Yahoo Japan back in 2012), Fantastics (by Gaiax), Smapo (acquired by Rakuten back in 2012), Shoprier (by Recruit), and Moratame (by Do House) in Japan. According to WeAreSocial.  ↩ According to Cereja Technology.  ↩

ministop-vietnam_screenshot

Tokyo-based internet company Allied Architects (TSE:6081) announced today that it has launched a social media marketing service using Facebook in Vietnam. For the company, this is its second international expansion following Taiwan back in 2012.

In Vietnam, Facebook has surpassed the country’s local social network Zing Me in total users [1], and accounting for 22% of the country’s population as of last month [2].

The marketing platform is called Monipla, and it has been adopted by more than 500 companies in Japan and over 50 companies in Taiwan. As the first use case for the service in Vietnam, the company launched a Facebook promotion for the convenience store chain Ministop Vietnam, where users can get rewards by liking the chain’s fan page during the Vietnamese new year’s celebration.

In this space, we’ve already seen more than a few players, including Kolor (by Interest Marketing), Crocos (acquired by Yahoo Japan back in 2012), Fantastics (by Gaiax), Smapo (acquired by Rakuten back in 2012), Shoprier (by Recruit), and Moratame (by Do House) in Japan.


  1. According to WeAreSocial ↩
  2. According to Cereja Technology ↩

Inside Luxembourg’s startup scene

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See the original story in Japanese. I visited Luxembourg back in June to attend the international startup showcase, ICT Spring 2013. The tiny country of Luxembourg is gradually becoming an emerging hub in the European startup community, and its government is trying to support this by organizing international conferences like ICT Spring. Unlike other startup communities where we can meet a variety of startups at different stages of development, Luxembourg seems to be more of a place for mature startups to grow further. 40% of Europe’s GDP lies within 500km of Luxembourg, making it a very convenient place to do business from. Many people working here actually reside in neighboring countries like Germany and France, and they commute to their offices in Luxembourg across the border every day. Why don’t startups use Luxembourg instead of London, Paris, or Berlin as a marketing hub for their European operations? During my visit at that time, I learned a lot about the country’s schemes and entities that supporting startups. And I’d like to review some of those here. P&T Luxembourg P&T Luxembourg is a 100% state-run company and administrates post and telecommunication business in the country. According to the company’s director Jean-Marie Spaus…

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View from the hotel I was visiting

See the original story in Japanese.

I visited Luxembourg back in June to attend the international startup showcase, ICT Spring 2013. The tiny country of Luxembourg is gradually becoming an emerging hub in the European startup community, and its government is trying to support this by organizing international conferences like ICT Spring.

Unlike other startup communities where we can meet a variety of startups at different stages of development, Luxembourg seems to be more of a place for mature startups to grow further.

40% of Europe’s GDP lies within 500km of Luxembourg, making it a very convenient place to do business from. Many people working here actually reside in neighboring countries like Germany and France, and they commute to their offices in Luxembourg across the border every day. Why don’t startups use Luxembourg instead of London, Paris, or Berlin as a marketing hub for their European operations?

During my visit at that time, I learned a lot about the country’s schemes and entities that supporting startups. And I’d like to review some of those here.

P&T Luxembourg

pandtluxembourg

P&T Luxembourg is a 100% state-run company and administrates post and telecommunication business in the country. According to the company’s director Jean-Marie Spaus and international business development head Micaël Weber, the country has a great geographical advantage to host servers for European customers, since it’s located in the heart of the region and thus can reduce data latency. This has encouraged many gaming companies like Nexon and Kabam to set their European headquarters in the country.

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Micaël Weber, International business development manager at P&T Luxembourg

The company is now working on deploying fiber-to-the-home to all households in the country according to the government’s strategy, with plans to roll out fiber-optic internet services up to 100Mbps by 2015, and 1Gbps by 2020.

Chamber of Commerce welcomes the world’s startups

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Romain Fouarge, the senior advisor at Luxembourg Ministry of Economy and Foreign Trade, talks about their startup invitation policy

Kirchberg is the country’s only business district. It’s close to Fidel Airport, and a big street runs through the district, home to the European Union’s office, governmental offices, and many business centers. The Japanese delegation I was part of visited the Luxembourg Chamber of Commerce, a very fashionable building in the area. But it seems a little small for the number of officials, and an adjacent annex building was under construction.

For a tiny country like Luxembourg, since every local governmental organization has privilege to work like a ministry, their chamber of commerce can play an important role in inviting companies from around the world. They say that if you set up a company in Luxembourg, you or your employees will not always need to live in the country to apply for tax incentives. Their government is very small, which means when you are registering a company or applying for a startup program, you can complete all required documentation in a shorter period.

English is usually spoken business occasions in the country, but it’s not the official language. So when you submit a request to the government, you will be required to complete a form in German, French, or Luxemburgisch. However the ‘Luxembourg for Business’ office (a business promotion agency) in your country can help you with translation to complete the form, so language barriers will not cause much trouble.

From the view of Luxembourg Chamber of Commerce building
From the view of the Luxembourg Chamber of Commerce building
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Conference room at Chamber of Commerce

Data4: More than just infrastructure

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Data4 headquarters in Bettembourg

Data4 is a data center company based in the suburban city of Bettembourg, a 30-minute drive from the central area of Luxembourg city. They have data center facilities at four locations in Luxembourg, two in France, and one in the UK, Italy, and Switzerland. The company was previously known as SecureIT, but rebranded since its business now extends beyond just the security business.

In association with consulting firm Ernst & Young and the Luxembourg government, they formed an incubation initiative called Europe4Startups. It lets participating startups receive a number of perks, including complimentary cloud storage subscription. If you’d like to apply for it, you can do so here.

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Data4 Chairman Gary Kneips explains about their company and incubation program

A potential hub for startups?

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Gare Centrale du Luxembourg

It seems like entrepreneurs and their co-workers in Luxembourg aren’t so wrapped up in their jobs that they can’t afford to enjoy everyday life. They manage to sustain their startups, without having to sacrifice their happiness. I envy that the location of their workplace, hang-outs, and homes were conveniently located in a tiny area.

Let me give you an example. During the visit, I visited the office of Nexon Europe, which is just across the street from Luxembourg Central Station (Gare Centrale du Luxembourg). It’s a walkable distance to the city’s busiest dining and entertainment district, Place d’Armes. HotCity, the country’s public Wi-Fi service, is available on almost every street corner, so you don’t have any expensive international roaming services. From that district, you can reach forest areas in less than a ten-minute walk. And compared to other European cities, Luxembourg is pretty safe.

For many of our readers, Luxembourg is still less familiar than most other European countries when it comes to business. But the recent announcements that Japanese startups like Chatwork and Skeed have set up their European offices there indicates that things are changing. If you plan to expand your business in the region, Luxumbourg is certainly worth considering as an options.

For all the assistance I received in arranging appointments during the trip, I wish to thank the following people:

  • Yuriko Matsuno, Luxembourg for Business (Tokyo), Luxembourg Ministry of the Economy and Foreign Trade
  • Ryoko Nagakubo, Luxembourg for Business (Tokyo), Luxembourg Ministry of the Economy and Foreign Trade
  • Yasuyo Koga, Lux2Japan

Inside Beijing’s startup scene: TechTemple nutures up-and-coming Chinese startups

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Beijing Skyline See the original article in Japanese from last month Among the eight startups who pitched at a recent event at Beijing’s Tech Temple, the following four startups provide all provide really interesting mobile solutions. Considering Xiaomi’s recent growth, and I came away with the impression that it could be Chinese startups like these that step to the fore on the the world stage. Appbyme AppByMe Appbyme is a cloud platform for the development smartphone apps, targeting beginner developers. In the US, there are similar services like as Invision and Flinto that help users prototype smartphone apps. Not just with prototyping, Appbyme helps users until they complete developing an app and even monetizing from that. In China, many people operate Bulletin Board Sites (BBSs) using content management systems like Discuz, PHPwind and WordPress. Those BBS already have regular users, and if their operators produce an app, then naturally that app can pick up quite a few users as well. And with Appbyme, such users can create an app simply by choosing a template. Many features such as push-notification, location-based gaming, social media sharing, or group-buying can be easily added to the app. Before founding Appbyme, CEO Zhao Jian worked…

beijing-skyline
Beijing Skyline

See the original article in Japanese from last month

Among the eight startups who pitched at a recent event at Beijing’s Tech Temple, the following four startups provide all provide really interesting mobile solutions. Considering Xiaomi’s recent growth, and I came away with the impression that it could be Chinese startups like these that step to the fore on the the world stage.

Appbyme

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AppByMe

Appbyme is a cloud platform for the development smartphone apps, targeting beginner developers. In the US, there are similar services like as Invision and Flinto that help users prototype smartphone apps. Not just with prototyping, Appbyme helps users until they complete developing an app and even monetizing from that.

In China, many people operate Bulletin Board Sites (BBSs) using content management systems like Discuz, PHPwind and WordPress. Those BBS already have regular users, and if their operators produce an app, then naturally that app can pick up quite a few users as well. And with Appbyme, such users can create an app simply by choosing a template. Many features such as push-notification, location-based gaming, social media sharing, or group-buying can be easily added to the app.

Zhao Jian, CEO of AppByMe

Before founding Appbyme, CEO Zhao Jian worked as the technical officer of Yicha, a mobile search engine in China. He feels that it is getting more difficult to search for content as more services assume the form of a mobile apps. His vision is to make a better structure for content search on mobiles.

In this field, there are competitors already out there in China like AppCan and Zhuixin. But when it comes to the number of users and apps, Appbyme stands out. To date, 5400 webmasters are registered on Appbyme, and more than 50,000 apps have been released. The business model is based on a revenue share with developers and advertisers, charging bigger developers for a subscription.

The BBS community in China is very active, especially in cities. According to Zhao, local portal sites are popular, and they have their own business potential, the kind you cannot see for sites in larger, central cities. Appbyme hopes to take advantage of such local opportunities.

The company also plans to make the English, Japanese, and Korean versions so that it can expand overseas.

SayHi!

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Sumatomo

SayHi is a worldwide dating app with daily active amounting to about 650,000. It has many users in Middle Eastern countries and in Asia as well. Even though the app is developed in China, the service is not being provided there.

On SayHi, users can find other users nearby through GPS and then chat with them. But you need points to chat other members. For example, when a male user wants to chat with a popular female user, he has to pay one point for an hour. If you become a VIP member for a 6000 yen monthly fee, you can chat as much as you want.

According to Shi Yan, the CEO of Easyroid, the company has apps on iOS, Android and Windows Mobile. He says that 29% of their sales comes from Japanese market.

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Shi Yan pitches SayHi

In China, there are other popular messenger apps with similar features, including Momo and iAround. Globally, Badoo and Skout are doing well. SayHi plans to add more entertainment and game features in the app in order to differentiate from competitors.

vWorld

vWorld’s CEO Gao Song once worked as the chief officer of Shangshuixuan Studio, the game department of Kingsoft (HKG:3888). Gao says that the number of smartphone users in China amounts to 354 million, and most are either students or white-collar workers. There are some common characteristics among them:

  • Since they literally grew up with games, they care much about the quality of games.
  • They are used to sharing content on social media.
  • They are keenly competitive.

vWorld is a game app where users compete to conquer actual places. It’s a bit different from Foursquare, where users become the mayor of a location by accumulating check-in points. On vWorld, one can become the leader of a location if they win a game against other users.

The company wants to create a user experience where once users conquer various locations in a city that they would actually be motivated to move on to a different city. The app uses GPS to find the actual location using Autonavi’s API.

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vWorld CEO, Gao Song

App Annie

App Annie is an analytics platform that tracks downloads of mobile apps, and it’s a service we frequently reference here at The Bridge. You can easily get statistical information about iOS, Android, BlackBerry, Windows Mobile, and Mac apps, giving you a good idea of which apps are popular in which market, popular and which ones are earning revenue.

App Annie has its headquarters in Beijing, but according to CEO Bertrand Schmitt, the company has 130 staff spanning across six cities. In September of 2013, the company raised $15 million in its series C round from Sequoia Capital, IDG Capital Partners, Greycroft Partners and Infinity Venture Partners.

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App Annie CEO Bertrant Schmitt

Bertrant shared his insights into the recent trend of mobile apps in the world. For instance, while the iOS AppStore has been growing in China, Google Play has seen remarkable growth in the other BRIC countries (Brazil, Russia and India). When it comes to the revenue, the big money comes mostly from advanced countries, with Android doing especially well are in the US and Japan. For the Japanese market, sales on Android and iOS are relatively well balanced [1].

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App Annie Index

For app developers, if you don’t know how your apps are selling in certain markets, you cannot develop a strategy for your development and design. But by using the market data available on App Annie and by utilizing other growth hacking tools, developers can determine how to make a successful app much more efficiently than before.

App Annie publishes infographic overviews of some of their statistics.In this way, the site can attract future customers, offering more detailed data to user who pay for premium accounts. Many news media who struggle with monetization can learn much from this business model.


We will look at more Chinese startups in our next article, and examine some of the major internet trends among companies in China.

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Tech Temple

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Many people in the Beijng startup community get together at this party. The entrepreneurs and investors I often meet in Beijing were all there. Even though it was soon after the facility opened, the place seemed to be quite well known in Beijing already.

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The corner of the reception and the cafe. The coffee was incredible.

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TechTemple is on the first and the second floor of the Tianhai Business Building in Beixinqiao, Beijing.


  1. According to figures from September of 2013.  ↩

9 Japanese robotics startups to watch in 2014

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As you may have read recently, Google has acquired seven robotics startups from the world, as the company looks ahead to new business opportunities. One of these startups is Tokyo-based Shaft, which won the DARPA robotics challenge trials back in December. Japan is an advanced country in this space, so I’d like to highlight a few of the important players in this sector. Read on to learn more! 1. Kiluck Kiluck has developed Rapiro, a humanoid robot compatible with the popular Raspberry Pi computer kit. The company succeeded in raising over $75,000 on Kickstarter last year, compared to its original target of $20,000. In partnership with fellow startups TeamLab and Yukai Engineering, they have developed the famous Necomimi device, a wearable pair of cat-ears that moves in accordance with your brainwave activity. 2. Extrun Since it launched back in 2009, Extrun has been in the system integration business. But they recently started developing a mobile camera called Ilbo, a device which keeps watch inside your home while you’re out. You will be able to control the device using an iOS app, and view what’s happening in your room through your mobile in real time. It will transmit a real-time image,…

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Skeletonics

As you may have read recently, Google has acquired seven robotics startups from the world, as the company looks ahead to new business opportunities. One of these startups is Tokyo-based Shaft, which won the DARPA robotics challenge trials back in December. Japan is an advanced country in this space, so I’d like to highlight a few of the important players in this sector. Read on to learn more!

1. Kiluck

Kiluck has developed Rapiro, a humanoid robot compatible with the popular Raspberry Pi computer kit. The company succeeded in raising over $75,000 on Kickstarter last year, compared to its original target of $20,000. In partnership with fellow startups TeamLab and Yukai Engineering, they have developed the famous Necomimi device, a wearable pair of cat-ears that moves in accordance with your brainwave activity.

2. Extrun

Since it launched back in 2009, Extrun has been in the system integration business. But they recently started developing a mobile camera called Ilbo, a device which keeps watch inside your home while you’re out. You will be able to control the device using an iOS app, and view what’s happening in your room through your mobile in real time. It will transmit a real-time image, but in the future they also plan to roll out additional features like remote controls for air conditioners and lights. They expected to introduce the product this spring for about $100.

3. Liferobotics

Liferobotics is a company that develops commercial products based on technologies from Japan’s National Institute of Advanced Science and Technology, or AIST. They’re developing robotic arm products that can be used in various manufacturing industries, or in assisting seniors or those with physically disabilities.

4. Orylab

Orylab is a hardware manufacturing company backed by Waseda University’s startup incubator. For people with mobility issues, their robot OriHime can be used as a sort of avatar, allowing you to watch and listen to what’s happening in a remote location. You can talk with remote individuals using a live video chat as well. It can carried anywhere as a sort of stand-in on your behalf.

In this way, you could go on picnic with your family virtually, or even attend a lecture virtually with your classmates.

orihime_photo

5. Mujin

Mujin was founded by robotics scientist Rosen Diankov and grew out of the University of Tokyo. His team has developed OpenRAVE, a motion planning software for real-world robotics applications, as well as Mujin Controller, software that allows you simulate various robotic motion patterns and optimize performance before you move to full-scale operation. The company raised 75 million yen (about $75,000) from the university’s venture fund in a series A funding back in 2012.

6. Yukai Engineering

Yukai Engineering was founded back in 2007 (and incorporated in 2011) by Teamlab’s co-founder Shunsuke Aoki. The startup is known to have introduced many interesting hardware devices like computing kit Konashi and smart baby camera Paby, and even helping Japanese smart glass startup Telepathy create their prototypes as well. Our readers may recall we interviewed Aoki back in November.

7. Doog

Doog was grew out of Tsukuba University, and has introduced a wheeled mobile robot (WMR) for purposes like advertising or baggage assistance. Some of their robots can follow you around wherever you go. The company wants to help people evolve their business and life further using robotics technology.

8. Asratec

Asratec was launched by Mitou [1] super-creator Wataru Yoshizaki back in 2009. He has been developing a humanoid robot called V-sido. The robot’s primary advantage is that it’s easy to control, even for non-technicians. For most types of humanoid robots, if you make an arm movement, it is likely to fall down if you don’t keep other body parts balanced. This robot’s software calculates how much he needs to stoop or stretch other body parts to maintain balance, so all you need to do is focus on the arm movement. A Softbank executive is leading the company as their president, and several news sources say the Japanese telco plans to launch artificial intelligence and humanoid robotics projects through them.

9. Skeletonics

Skeletonics was created by several Japanese college students who came together to win a robotics contest back in 2008. Their robot moves in sync with the user’s arms and legs, and works and looks like an armored suit, like that in the popular Japanese animation series Ghost in the Shell. It doesn’t use an electric motor-based servo-mechanism but rather mechanical linkage to reduce the robot’s weight as well as possible chances of technical difficulties. As the team recently won the top prize at the ‘Todai to Texas’ Demo Day, they are expected to exhibit their robots at SXSW 2014 taking place in Austin this coming March.


  1. Mitou is a bi-annual software engineering promotion program run by a governmental IT promotional agency in Japan. In 2009, Yoshizaki’s humanoid project was chosen as one of 18 innovative projects out of 124 applicants.  ↩

Xibao: Helping China’s online merchants advertise better

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CTO of Xibao, Alex Farfurnik, on the right (photo cred) China’s top e-commerce site, Taobao, accounts for a whopping 80% share of the nation’s e-commerce market. But even with so many sellers setting up a shop on Taobao, most of them don’t adequately understand how to sell products on the platform. That’s where Xibao comes in. Xibao’s system helps optimize ads and use Taobao’s ad platform more effectively. According to co-founder, Alex Farfurnik, the company offers three plans at a monthly fixed rate. Pricing starts at 0–100 yuan ($0–17) for a freemium plan, 1000 yuan ($170) for a standard plan, and 15,000 yuan ($2500) for a VIP plan. 17 months have passed since the launch of its ad optimization platform, Super Driver, And the total customers subscribing to paid plans has surpassed 40,000. Advertisement fees paid by Taobao through Xibao have surpassed $150 million. At first, Xibao was launched as a service for small businesses. But the business grew because of a partnership with Taobao, and Xibao began offering the service to major companies as well. XiBao now has partnerships with internet giants like Tencent, Qihoo, JD.com, and Baidu. Generally, sellers place ads on Taobao to lead customers to their…

xibao
CTO of Xibao, Alex Farfurnik, on the right (photo cred)

China’s top e-commerce site, Taobao, accounts for a whopping 80% share of the nation’s e-commerce market. But even with so many sellers setting up a shop on Taobao, most of them don’t adequately understand how to sell products on the platform. That’s where Xibao comes in.

Xibao’s system helps optimize ads and use Taobao’s ad platform more effectively. According to co-founder, Alex Farfurnik, the company offers three plans at a monthly fixed rate. Pricing starts at 0–100 yuan ($0–17) for a freemium plan, 1000 yuan ($170) for a standard plan, and 15,000 yuan ($2500) for a VIP plan. 17 months have passed since the launch of its ad optimization platform, Super Driver, And the total customers subscribing to paid plans has surpassed 40,000. Advertisement fees paid by Taobao through Xibao have surpassed $150 million.

November 11th is widely referred to as ‘E-commerce Day’ on the Chinese internet. This year the sales on Tmall.com, the online retailer spun off from Taobao, reached 35.019 billion yuan ($5.6 billion) for the day. The above picture is from a monitoring room at Tmall.com.

At first, Xibao was launched as a service for small businesses. But the business grew because of a partnership with Taobao, and Xibao began offering the service to major companies as well. XiBao now has partnerships with internet giants like Tencent, Qihoo, JD.com, and Baidu.

Generally, sellers place ads on Taobao to lead customers to their shops. But it turns out that this is not necessarily cost-effective. For example, there was a case when a Tmall seller placed ads on Qihoo, leading viewers to Tmall from there. With this strategy, the cost performance of the ad was 50 times higher than ads placed directly on Tmall. Xibao looks at all the indicators including transactions and advertising ROI to manage the best ad space.

In the upcoming year, Xibao aims to release two apps and acquire 100,000 freemium accounts.

On November 11th, Xibao staff was working overnight at TechTemple. Every year on this day, all the staff work non-stop.

Chinese tech news site 36kr focuses on the little guys

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Here’s some fun trivia: 36 is the atomic number of Krypton, the home planet of Superman. And making a reference to that factoid in its name, is the Chinese-language tech site 36kr. It was initially launched by ChengCheng Liu (pictured below) and his friends at Peking University in 2012. Currently its editorial department has around fifty staff, and about 30 articles are released everyday. Five or six of those are typically startup-related articles. The site has approximately 20 million page views a month, with readers residing mostly in China or Chinese-speaking regions. And while other Chinese’s tech blogs cover overseas topics or news from big Chinese corporations like Tencent and Sina, 36Kr focuses on Chinese startups. The company has been organizing startup events every two months in many cities in China, the US and Hong Kong. On November 10th, an event in Hangzhou attracted 1400 participants, with about one in three of them being entrepreneurs. This past year the tech blog has covered more than 800 startups in total. In addition to publishing news articles, it has also been developing a startup database. The number of the registered startup projects is 15,000 to date, and it keeps adding about 50…

36krdb
36kr’s database

Here’s some fun trivia: 36 is the atomic number of Krypton, the home planet of Superman. And making a reference to that factoid in its name, is the Chinese-language tech site 36kr.

It was initially launched by ChengCheng Liu (pictured below) and his friends at Peking University in 2012. Currently its editorial department has around fifty staff, and about 30 articles are released everyday. Five or six of those are typically startup-related articles. The site has approximately 20 million page views a month, with readers residing mostly in China or Chinese-speaking regions. And while other Chinese’s tech blogs cover overseas topics or news from big Chinese corporations like Tencent and Sina, 36Kr focuses on Chinese startups.

ccliu_snapshot

The company has been organizing startup events every two months in many cities in China, the US and Hong Kong. On November 10th, an event in Hangzhou attracted 1400 participants, with about one in three of them being entrepreneurs.

This past year the tech blog has covered more than 800 startups in total. In addition to publishing news articles, it has also been developing a startup database. The number of the registered startup projects is 15,000 to date, and it keeps adding about 50 projects everyday.

He was a student at Peking University when he launched the site. Even without developing the database, the company has broke even thanks to its news site and events.

But he is taking a bit of a risk by putting resources into database development, with 20 of their 50 staffers tied up in that project. Liu explained:

What we aim to do with this database is not just to provide information on which startup fundraises from which VC. We aim to collect information about which investors are behind the VC, and eventually I hope it develops into a sort of LinkedIn for the startup community. […] By doing this, we will be able to predict the action of investors and entrepreneurs before fundraising occurs.

36kr tracks not only investment, but also which startups investors are interested in. Liu’s aim in developing the database is to build startup culture, rather than to profit from it. He plans to create a one-stop service that offers entrepreneurs access to important information, products, and a network – all the necessary things to launch a startup.

In a way, the concept is similar to Creww Marketplace or e27’s Bundles.

36kr has an entrepreneur knowledge exchange event coming up this week in Shenzhen, and you can learn more about that here.