This is part of our Crowdfunding in Japan series (RSS). Services like KickStarter have become a global phenomenon with the power to let creative individuals take their ideas to new heights. It’s happening here in Japan too, most notably on Campfire, the country’s answer to Kickstarter.
When we think about rapidly advancing technology sectors, we don’t often think about cooking. But if you’ve ever stood impatiently over a boiling pot, mixing vegetables or pasta, this self-stirring pot, named kurokuro nabe, is technology that will likely have you drooling.
It’s a ridiculously simple design, with diagonal gutters along the sides which draw water up to create a whirlpool as water heats up. The result is a wonderful self-mixing pot that should save you the time and trouble of always watching to see when it needs stirring.
If you aren’t already floored by this, let me further point out that since the whirlpool brings bubbles to the center of the pot, it also prevents water from boiling over. Undesirable material like fat or oil also gathers in the middle, and can be scooped out easily.
When video of the prototype was initially posted on YouTube (see video below), it racked up over 740,000 views, far exceeding the expectations of its designers and prompting them to produce a marketable product. It was even featured in prominent Western media like The Huffington Post and Daily Mail.
The funds raised for this project on were earmarked to cover production costs of at least 1000 pots, with trial manufacturing and mass production were to take place in the development department of Toyo Rikagaku Kenkyusho in Niigata Prefecture. That company is so renowned for its technology that Steve Jobs came all the way to Japan to place an order for iPad production there.
Although the creators raised 311,000 yen (almost $3,400) in their Campfire crowdfunding campaign, the project didn’t reach its funding target. Perhaps there’s not much of a crossover between cooking enthusiasts and Campfire backers? But thankfully, this miracle pot is being sold on Amazon Japan, so we’re delighted to see that it’s finally available for purchase.
You can check out more information about kurokuro nabe over on its website (in Japanese).
Line, one of the most popular smartphone apps in Japan, recently reached the 100 million user milestone. The free chat application was made by NHN Japan Corporation, and launched back in June of 2011. The app makes use of the user’s phone directory, allowing them to get connected with people they actually know in real life. Sound familiar? Yes, Line is in many ways aspiring to be Japan’s Facebook — the primary difference being that Line is a social service born entirely on mobile. Line is gaining popularity around the Asia region with about half of it’s users coming from outside Japan. Many celebrities in Japan are using the app including current prime minister Abe Shinzo who joined the service in January. The biggest reason behind the app’s success lies in the timing of its release. It came during a time when not-so-tech-savvy mainstream users began switching from feature phones to smartphones. With a completely different and unfamiliar tool, people turned to Line for help. With Line, all you needed to get connected with friends was their phone number. And everyone with a phone has that already. Ubiquity, and beyond! Line was first adopted by younger users but gradually gained…
Line, one of the most popular smartphone apps in Japan, recently reached the 100 million user milestone. The free chat application was made by NHN Japan Corporation, and launched back in June of 2011. The app makes use of the user’s phone directory, allowing them to get connected with people they actually know in real life. Sound familiar? Yes, Line is in many ways aspiring to be Japan’s Facebook — the primary difference being that Line is a social service born entirely on mobile.
Line is gaining popularity around the Asia region with about half of it’s users coming from outside Japan. Many celebrities in Japan are using the app including current prime minister Abe Shinzo who joined the service in January. The biggest reason behind the app’s success lies in the timing of its release. It came during a time when not-so-tech-savvy mainstream users began switching from feature phones to smartphones. With a completely different and unfamiliar tool, people turned to Line for help. With Line, all you needed to get connected with friends was their phone number. And everyone with a phone has that already.
Ubiquity, and beyond!
Line was first adopted by younger users but gradually gained popularity over mainstream users including seniors. With over 100 million users, it is the new digital marketing platform. To better take advantage of Line, many companies are conducting user surveys. A survey of married couples and their usage of Line was a particularly interesting one. It targeted 800 married men and women of age 20 to 40. 39.5% responded that the app increased communication with their spouse. 29.4% of respondents answered that their spousal relationship has improved since using the app.
But since last summer, the chat app has become more of a platform than just smartphone chat application. NHN began providing a service named Line Channel in July of 2012, a year after the app’s initial release. On Line Channel, users are able to enjoy games, fortune-telling, and even discount coupons. One game, Line Pop, has been downloaded over 20 million times worldwide as of January 2013, just two months after it’s release.
But there is a cutthroat war brewing in the chat application market. Line is no doubt the pioneer in Japan, but DeNA’s Comm and Korea’s KakaoTalk have jumped in the ring recently too. At the end of 2012, Comm had been downloaded more than five million times since it’s October launch. Kakao Talk had about 70 million users as of December 2012, with 18 million of those overseas, and about 4 million of those in Japan.
We were in touch with the CEO of Viber this week as well, who pointed out that they are hoping to make a renewed push in Asia where the app has 50 million users in total. Interestingly, six million of those are in Japan.
But still, Line’s dominance is pretty secure at home, with about 41.5 million users in Japan. Stay tuned to see how it fares abroad this year.
This is part of our ‘Japanese internet in-depth’ series (RSS). Stay tuned for more features that aim to explain what makes the internet unique in Japan.
For more information on the growth of Line, please check out our interactive Line Timeline which chronicles its growth from its launch back in 2011 up until the present day.
When I first heard of Japan-based startup Tokyo Otaku Mode it was little more than a Facebook page sharing content about Japanese Otaku subculture. But as far as Facebook pages go, there wasn’t really anything little about it. At that time I think they had about half a million fans, and since then they have gone on to crack through ten million. Yes, you read that correctly. Ten. Million. To put that in perspective, that actually makes them bigger than both Elvis (7M fans) and Jesus (5.1M). In the last year alone, they saw new fans coming on board at an average rate of 600,000 per month. The content on Tokyo Otaku Mode is primarily curated. That doesn’t simply mean curation in the normal sense of tumblr-esque web clippings brought together in recycled stream of web regurgitation. The startup gets in touch with right holders not just to obtain permission to share content, but also to offer its services to help Japanese content creators reach global audiences. According to co-founder Nao Kodaka, many of those rights holders say that the Japanese market is not growing, and now they want to pursue audiences abroad. So far, Tokyo Otaku Mode has established…
When I first heard of Japan-based startup Tokyo Otaku Mode it was little more than a Facebook page sharing content about Japanese Otaku subculture. But as far as Facebook pages go, there wasn’t really anything little about it. At that time I think they had about half a million fans, and since then they have gone on to crack through ten million.
Yes, you read that correctly. Ten. Million.
To put that in perspective, that actually makes them bigger than both Elvis (7M fans) and Jesus (5.1M). In the last year alone, they saw new fans coming on board at an average rate of 600,000 per month.
The content on Tokyo Otaku Mode is primarily curated. That doesn’t simply mean curation in the normal sense of tumblr-esque web clippings brought together in recycled stream of web regurgitation. The startup gets in touch with right holders not just to obtain permission to share content, but also to offer its services to help Japanese content creators reach global audiences. According to co-founder Nao Kodaka, many of those rights holders say that the Japanese market is not growing, and now they want to pursue audiences abroad. So far, Tokyo Otaku Mode has established healthy relationships with those groups and individuals, and as a result, can publish high quality content regularly.
The thing that most astounds me about Tokyo Otaku Mode is that the company has managed to build such a community around Japanese culture with only a ten man team. I can’t help but contrast with this the Ministry of Economy, Trade and Industry’s own Cool Japan efforts, which is in a way are trying to do the very same thing – but obviously with not as much success.
Community first
Tokyo Otaku Mode began back in 2011. That wasn’t long after the earthquake, and Nao tells me that they wanted to try to do something that could help Japan. Facebook was just catching on in the country at that time [1]. And while there were more than a few fan groups and sites focused on anime, manga, and Japanese culture, Nao says that there weren’t really and Japanese individuals or media reaching out to the world on their own. He succinctly explains:
All we have is our content. Our uniqueness, and our content.
For a young company just starting out, Facebook was certainly a logical place to build up a fan base. It’s free, and there are no server costs.
Nao describes how his team experimented with different methods of Facebook posting, trying different numbers of photos to see if some worked better than others. He points out that fans eventually began tagging themselves in photos, which meant that their friends were also seeing Otaku Mode content too. In the end, it looks to have resulted in a perfect storm of viral content that still hasn’t let up (see fan growth in the chart on the right).
Tokyo Otaku Mode has previously received backing from a number of investors. I recently got in touch with one of them, Craig Mod, who explained to me what it was about Tokyo Otaku Mode that made him want to get behind them as an angel investor [2]. He describers them as a team of “total hustlers” and sharp marketers, bold enough to turn social media on its head:
[T]he fact that they saw an opportunity to leverage Facebook — and Facebook alone — as a platform to launch a publishing-like company was, to me, a first. Instead of spending tens/hundreds of thousands of dollars building complicated software for their company, they spent five minutes and used Facebook Pages as their home base on the internet. Obvious in hindsight but very avant garde even just a year ago.
Mo’ Money, Mo’ mobile
But you can’t make money directly on a Facebook fan page. So Otaku Mode was still faced with the problem that plagues so many in the content industry. How do you convert eyeballs into dollars? The strategy that the company has taken, and one which mentors have advised, is to drive Facebook traffic to its new website at OtakuMode.com, which just recently emerged from its private beta to become fully open to the public.
Nao explains explains that they hope to drive enough traffic to the site so that they could eventually advertise and convert those eyes into dollars.
The company has also dipped its toes in the mobile space as well, publishing its Otaku Camera application for iOS and Android, which turns your photos into manga style art. It isn’t the most original idea in the world, as Manga Camera did pretty much the exact same thing. But Otaku Camera is, in my opinion, far better executed. So far it has over 500,000 downloads, which is not a bad start. I’m told that in the future the application could sell special frames, in collaboration with certain rights holders.
UGC content: Momoiro Reku’s Hatsune Miku cosplay on Tokyo Otaku Mode
The site also now serves as an outlet for content creators as well, with a dedicated UGC section which features some really amazing stuff. There’s also a verification process, by which the best of the best content creators earn a sort of Twitter-style verified badge, provided that they meet a number of stringent criteria. They can upload content on their own, and leverage Otaku Mode’s platform to reach audiences overseas who they may not otherwise be able to reach.
The website also recently added a news section, where articles about the latest happenings in the world of manga and anime are posted. The company also foresees the possibility of branching into e-commerce as a possible monetization method. Nao says, “Picture Esty, but for Otaku.”
This young company will certainly be one to watch in the coming year, just to see if its good fortune can extend beyond its Facebook success. I’m not going to make any predictions, but if I were a betting man, I certainly wouldn’t wager against them.
In fact, Facebook’s role in post-earthquake communication highlighted the social network in the eyes of many in Japan. ↩
Craig previously wrote his impressions of the company for Contents Magazine in a wonderful article entitled “Our New Shrines“. Like almost everything Craig Mod writes or creates, I can’t recommend it enough. ↩
They say innovation is dead in Japan. Or at least that’s the prevailing narrative in Western media recently. Yes, many of the big companies synonymous with technology in Japan have been lagging behind. But the big picture is more than that, and we hope to show you that big picture one little piece at a time. Are who are we? We’re Sd Global, an English-language online news website born out of the Japanese site Startup Dating. As a team of writers living and exploring Japan, we hope to discover new developments and untold stories in Japan’s digital space and put them on display here. It could be college kids bootstrapping the next great mobile app, a Japanese multinational making waves overseas, or a high-tech vending machine – if it’s a game changer in the world of technology, then it’s in our sights. And we’ll do our best to bring you our own insights. Sd is an ambitious project, one that I’m personally very excited to join as a writer and editor. The Japanese tech sphere is ever-changing, and I’m eager to learn more about it from my colleagues, an all-star cast who have all been prominent voices in the community…
They say innovation is dead in Japan. Or at least that’s the prevailing narrative in Western media recently. Yes, many of the big companies synonymous with technology in Japan have been lagging behind. But the big picture is more than that, and we hope to show you that big picture one little piece at a time.
Are who are we? We’re Sd Global, an English-language online news website born out of the Japanese site Startup Dating. As a team of writers living and exploring Japan, we hope to discover new developments and untold stories in Japan’s digital space and put them on display here. It could be college kids bootstrapping the next great mobile app, a Japanese multinational making waves overseas, or a high-tech vending machine – if it’s a game changer in the world of technology, then it’s in our sights. And we’ll do our best to bring you our own insights.
Sd is an ambitious project, one that I’m personally very excited to join as a writer and editor. The Japanese tech sphere is ever-changing, and I’m eager to learn more about it from my colleagues, an all-star cast who have all been prominent voices in the community for some time now.
We always welcome feedback from you, the reader. So send us your story tips, suggestions, or criticisms anytime.
Japanese startup Dots for, the company aiming to help digitalizing rural villages in Africa with distributed communications using mesh network technology, announced on Friday that it has secured 100 million yen (about $670,000 US) in a seed round. Participating investors arew Anobaka, Quantum Leap Ventures (QXLV), G-Startup Fund, and unnamed several angel investors. QXLV followed their previous investment in the startup’s pre-seed seed round in September of 2022. The company says that it will use the funds to help people in rural areas of African gain access digital services and spend daily lives comparable to those in cities. It also expects to contribute to improving the incomes of rural residents through allowing them to remotely obtain jobs from developed countries and urban areas in Africa through efforts including matching sales of agricultural products. Dots for was founded in October of 2021 by Carlos Oba, who has worked at Amazon, Recruit, and C Channel, among others, in business startups and management. Prior to launching Dots for, he led the launch of a service for motorcycle cab operators in Tanzania and other countries as a new business manager at Wassha, the Japanese startup delivering electricity to off-grid areas in Africa. While urban…
Image credit: Dots for
Japanese startup Dots for, the company aiming to help digitalizing rural villages in Africa with distributed communications using mesh network technology, announced on Friday that it has secured 100 million yen (about $670,000 US) in a seed round. Participating investors arew Anobaka, Quantum Leap Ventures (QXLV), G-Startup Fund, and unnamed several angel investors. QXLV followed their previous investment in the startup’s pre-seed seed round in September of 2022.
The company says that it will use the funds to help people in rural areas of African gain access digital services and spend daily lives comparable to those in cities. It also expects to contribute to improving the incomes of rural residents through allowing them to remotely obtain jobs from developed countries and urban areas in Africa through efforts including matching sales of agricultural products.
Dots for was founded in October of 2021 by Carlos Oba, who has worked at Amazon, Recruit, and C Channel, among others, in business startups and management. Prior to launching Dots for, he led the launch of a service for motorcycle cab operators in Tanzania and other countries as a new business manager at Wassha, the Japanese startup delivering electricity to off-grid areas in Africa.
While urban areas in African countries are experiencing economic development and digitalization, rural areas with low incomes are facing a variety of unresolved issues, including Internet connectivity. The company uses mesh network technology to build wireless network infrastructure called d.CONNECT in rural villages in Africa at an overwhelmingly low cost and in a short period of time.
Tokyo-based VC firm Nextblue announced on Tuesday that it has launched its second fund. It has not yet reached its final close but aims to eventually reach a size of 5 billion yen (about $33.6 million US). The new fund aims to create social impact to improve the women’s wellbeing in Japan through the realization of DEIB (Diversity Equity Inclusion and Belonging). Three business companies including electric power company JERA and Japanese leading PR firm Sunny Side Up Group (TSE: 2180) and several anonymous individual investors have invested in the latest fund. JERA is a 50-50 power generation company owned by TEPCO Holdings (TSE: 9501) and Chubu Electric Power (TSE: 9502). JERA currently has 26 thermal power plants across Japan. The company’s goal is to achieve zero-emission power generation by 2050 through thermal power generation mixing hydrogen with natural gas, zero-emission thermal power generation using hydrogen and ammonia as fuel, and the introduction of renewable energy. The investors in the latest fund are expected to provide an environment for Japanese and European portfolio companies to conduct PoCs (proof of concepts) on women’s wellbeing businesses. Nextblue’s managing partner Kanako Inoue says that JERA’s participation indicates that the power company is committed…
Nextblue’s managing partners: From left, Vincent Tan, Kanako Inoue, Yuichi Kori Image credit: Nextblue
Tokyo-based VC firm Nextblue announced on Tuesday that it has launched its second fund. It has not yet reached its final close but aims to eventually reach a size of 5 billion yen (about $33.6 million US). The new fund aims to create social impact to improve the women’s wellbeing in Japan through the realization of DEIB (Diversity Equity Inclusion and Belonging).
Three business companies including electric power company JERA and Japanese leading PR firm Sunny Side Up Group (TSE: 2180) and several anonymous individual investors have invested in the latest fund. JERA is a 50-50 power generation company owned by TEPCO Holdings (TSE: 9501) and Chubu Electric Power (TSE: 9502).
JERA currently has 26 thermal power plants across Japan. The company’s goal is to achieve zero-emission power generation by 2050 through thermal power generation mixing hydrogen with natural gas, zero-emission thermal power generation using hydrogen and ammonia as fuel, and the introduction of renewable energy.
The investors in the latest fund are expected to provide an environment for Japanese and European portfolio companies to conduct PoCs (proof of concepts) on women’s wellbeing businesses. Nextblue’s managing partner Kanako Inoue says that JERA’s participation indicates that the power company is committed to changing the world from within the company, as it has been working on new challenges in the energy industry,.
The first fund invests in 39 companies, 4 companies exited
The firm’s first fund was launched in April of 2020 and subsequently announced its first close in March of 2021. The fund size at that point was estimated at 3 billion yen ($28 million in the exchange rate at that time). According to Inoue, investments were made in 39 companies from the first fund, of which about half were Japanese startups and the other half were European startups.
In terms of vertical category, she said, most of their Japanese investees were SaaS startups, in line with industry trends in Japan, while their investments in Europe were largely made into the healthcare and food sectors. This is because, while DTx (Digital Therapeutics) startups have emerged, they are not always effective in treating chronic diseases and other conditions, so the focus was more on somewhat mix of healthcare and food, which usually provides something directly consumed by the body.
In a recent interview with Bridge, Inoue says,
With the first fund, we wanted to prove that Japanese VCs were valuable to European startups and that we could bring European startups to the Japan market.
During the pandemic, some of our portfolio companies struggled to raise funds in Europe and the US, but it was relatively easy for them to access funds in Japan. I think we were able to prove the importance of diversifying the Cap Table .
From the firm’s first fund’s portfolio, INFORICH (TSE: 9338), operator of the ChargeSPOT mobile battery sharing service in Japan, IPOed, while Lana Lab (process mining company, Germany), First A (quick commerce for drugs, Germany), and Bento (aggregating multiple web links into one link, Switzerland), have been respectively acquired by other companies.
MUFG Innovation Partners (MUIP) recently announced that it has just launched its fund III, following its fund II announced in August of 2021. The new fund is expected to have a size of 20 billion yen (about $135 million), the same as each of the previous two funds. The new fund is managed by Mitsubishi UFJ Innovation Partners with financially backed from MUFG Bank and other group companies. In contrast to Mitsubishi UFJ Capital (MUCAP), which usually makes pure investments, MUIP is a corporate venture capital focused on strategic investments exploring collaboration with MUFG companies. MUIP’s AUM (assets under management), including its three core funds and fund of funds (FoF) for the US and Israel markets, now totals approximately 80 billion yen (about $540 million). According to Takashi Sano, Chief Investment Officer at MUIP, the new fund will more focus on investments in Japan and the U.S., following the establishment of the MUFG Ganesha Fund ($300 million US) for India and the MUIP Garuda 1 Fund ($100 million US) for Southeast Asia from last year through this year. In addition, the MUIP Fund II has increased the ratio of investments in Japanese startups compared to the Fund I although it…
Creative Commons License Attribution 2.0 Generic (CC BY 2.0) Photo by yo & via Flickr
MUFG Innovation Partners (MUIP) recently announced that it has just launched its fund III, following its fund II announced in August of 2021. The new fund is expected to have a size of 20 billion yen (about $135 million), the same as each of the previous two funds. The new fund is managed by Mitsubishi UFJ Innovation Partners with financially backed from MUFG Bank and other group companies.
In contrast to Mitsubishi UFJ Capital (MUCAP), which usually makes pure investments, MUIP is a corporate venture capital focused on strategic investments exploring collaboration with MUFG companies. MUIP’s AUM (assets under management), including its three core funds and fund of funds (FoF) for the US and Israel markets, now totals approximately 80 billion yen (about $540 million).
According to Takashi Sano, Chief Investment Officer at MUIP, the new fund will more focus on investments in Japan and the U.S., following the establishment of the MUFG Ganesha Fund ($300 million US) for India and the MUIP Garuda 1 Fund ($100 million US) for Southeast Asia from last year through this year. In addition, the MUIP Fund II has increased the ratio of investments in Japanese startups compared to the Fund I although it is unclear whether or not this trend will be applied to the Fund III.
MUFG’s investment and financing initiatives for startups (Amounts represent the total amount of investment including unexecuted amounts) Image credit: MUFG Innovation Partners
Sano says,
MUFG has invested in Liquidity Capital, an Israeli FinTech startup investing in AI startups, from its Fund I and II, and has also invested in Mars Growth Capital, a joint venture established by MUFG Bank and Liquidity Capital in 2020. Mars Growth Capital is preparing a growth stage-focused fund (up to 20 billion yen or $134.6 million US) for the Japanese market while other MUIP-related initiatives are also increasing in Japan.
MUIP will continue to invest in non-fintech startups, including generative AI startups, to explore synergies with MUFG companies. It will also work with overseas banks in which MUFG Bank has invested, such as Bank of Ayudhya (Krungsri) in Thailand and Bank Danamon in Indonesia, to encourage these banks’ business partners to introduce new technologies from the startups in which they have invested.
MUIP has invested in more than 40 startups through several funds to date, and the total investment in 2022 reached about 10 billion yen ($67.3 million US). For middle-stage and later startups, MUIP has also made direct investments from MUFG Bank and others, bringing the total amount of its investment framework in startups and other digital companies to approximately 570 billion yen ($3.8 billion US).
As for large funds from major Japanese financial conglomerates, SMBC launched a $200 million corporate venture capital fund called SMBC Asia Rising Fund in Singapore in May, jointly with Incubate Fund. In April, Mizuho Financial Group established a $10 billion corporate venture capital called Mizuho Innovation Frontier. In both cases, their investments are intended to explore synergies with their core businesses respectively.
Tokyo-based Josys, the Japanese startup offering outsourced corporate IT service to manage employees’ IT devices and SaaS accounts, announced on Wednesday that it has secured 13.5 billion yen (about $91.7 million US) in a Series B round. This round is led by Global Brain and Globis Capital Partners with participation from Jafco (TSE:8595), Raksul (TSE:4384), SMBC-GB Growth Fund (managed by SMBC Venture Capital Management and Global Brain), 31 Ventures (managed by Mitsui Fudosan and Global Brain), Norinchukin Capital, Z Venture Capital, WiL (World Innovation Lab), NTT Docomo Ventures, Value Chain Innovation Fund (managed by Seino Holdings and Spiral Innovation Fund), and Yamauchi-No.10 (owned by Nintendo founder’s family office). Global Brain, Yamauchi-No.10, and WiL followed this previous investment in Josys’ previous Series A round. The latest round brought the company’s funding sum up to date tp 17.9 billion yen (about $120 million US). Most of the investors are not operating company-backed but purely investment companies, which means that they are expecting business growth rather than business synergies with enterprises. Josys will use the funds to expand its global presence and diversify the company size of their targeted potential users. The service was initially launched in September of 2021 as the fourth…
Josys CEO Yasukane Matsumoto Image credit: Masaru Ikeda
Tokyo-based Josys, the Japanese startup offering outsourced corporate IT service to manage employees’ IT devices and SaaS accounts, announced on Wednesday that it has secured 13.5 billion yen (about $91.7 million US) in a Series B round.
This round is led by Global Brain and Globis Capital Partners with participation from Jafco (TSE:8595), Raksul (TSE:4384), SMBC-GB Growth Fund (managed by SMBC Venture Capital Management and Global Brain), 31 Ventures (managed by Mitsui Fudosan and Global Brain), Norinchukin Capital, Z Venture Capital, WiL (World Innovation Lab), NTT Docomo Ventures, Value Chain Innovation Fund (managed by Seino Holdings and Spiral Innovation Fund), and Yamauchi-No.10 (owned by Nintendo founder’s family office).
Global Brain, Yamauchi-No.10, and WiL followed this previous investment in Josys’ previous Series A round. The latest round brought the company’s funding sum up to date tp 17.9 billion yen (about $120 million US). Most of the investors are not operating company-backed but purely investment companies, which means that they are expecting business growth rather than business synergies with enterprises. Josys will use the funds to expand its global presence and diversify the company size of their targeted potential users.
The Josys management team Image credit: Masaru Ikeda
The service was initially launched in September of 2021 as the fourth business of Japanese online printing and on-demand logistics company Raksul (TSE:4384). Earlier this year, it was spun off from and incorporated as a subsidiary of Rakusul. In March of 2022, Josys increased its capital through a third-party allotment to undisclosed investors to become an equity-method affiliate from a consolidated subsidiary of Raksul (35.6% of voting rights at that time). Raksul’s voting right ownership in Josys has been apparently diluted after the Series A round.
The service allows companies to integrate and outsource management, procurement, and kitting IT devices and SaaS accounts for their employees. It aims to improve the operational efficiency of a company’s IT management department, expecting to reduce the workload of corporate IT departments by about a quarter through cloud computing and outsourcing. The company expects it may help companies reduce the turnover rate of staff in charge of IT systems.
The company’s new global expansion effort includes their service launch in 40 countries in the North America and Asia Pacific regions. The entire Josys team is about 120 people. Of these, 30 are in Japan, 70 in India, 10 in Vietnam, and the rest of the team are based in San Francisco Bay Area. Many of the systems required have been developed in India while the overall service design is being done in the Bay Area. Sales and on-boarding processes in the Asia Pacific Region are provided by their teams in Singapore and Malaysia.
Josys’ upcoming business domain by including larger enterprises as a target Image credit: Masaru Ikeda
Josys has been focused on small and medium-sized businesses with less than 300 employees but will now target larger enterprises going forward. In some large enterprises, SaaS is not centrally managed by the system department (so called ‘shadow IT’), and the collapse of IT governance is becoming an issue. The company believes that the integration of employee-based information ledgers will contribute to the reconstruction of the Single Source of Truth (SSOT) for IT management.
The Josys management in Japan. From left, VP of Japan Marketing Michibumi Serizawa, CEO Yasukane Matsumoto, Japan SVP Kiyomitsu Takayama, and VP of Japan Sales Mikito Hayashi. Image credit: Masaru Ikeda
To strengthen the team, the company appoints Kiyomitsu Takayama, former Japan head of Pendo.io Japan, as Japan SVP at Josys; Mikito Hayashi, former Executive Officer and General Manager of Enterprise Sales at ZVC Japan, as VP of Japan Sales at Josys; and Michibumi Serizawa, former General Manager of Major Account Sales at Palo Alto Networks, as Japan Sales at Palo Alto Networks. In addition, the company will launch the Josys Academy to share knowledge and insights to help Japanese companies adopt digital transformation.
Josys initially introduced the concept of its business in September of 2021 and subsequently launched it in 2022, seeing a 10-fold increase in ARR (annual recurring revenue) over the past year (specific values not disclosed). The company attributed the growth to the management burden of IT devices and SaaS, the increase in IT deployment in each department, and the dispersion of IT managers, while many companies have massively adapted work-from-home and SaaS as the new normal after COVID-19.
Tokyo-based Mujin, the Japanese startup developing intelligent robotics solutions for industrial use, announced on Tuesday that it has secured 12.3 billion yen (over $83 million US) in a Series C round. Participating investors include SBI Investment, Pegasus Tech Ventures, Accenture, Dr. James Kuffner (robotics researcher, CEO of Toyota’s Wovn Planet Holdings), and 7-Industries Holdings. This follows the company’s Series B round back in August of 2014. The latest round brought their funding sum up to date to 20.5 billion yen (about $139 million). Mujin was founded in 2011 by robotics scientist Rosen Diankov and grew out of the University of Tokyo. His team developed OpenRAVE, motion planning software for real robot applications, as well as Mujin Controller, software enabling simulate different robot motion patterns and optimize performance before full-scale operation. In 2012, the company secured 75 million yen (about $960,000 US in the exchange rate at the time) from the University of Tokyo Edge Capital (UTEC) and other investors in a Series A round. See also: 9 Japanese robotics startups to watch in 2014 In robotics operations, automation of complex processes has conventionally been considered difficult. However, Mujin Controller has given intelligence to robots, enabling them to adapt to changes…
Image credit: Mujin
Tokyo-based Mujin, the Japanese startup developing intelligent robotics solutions for industrial use, announced on Tuesday that it has secured 12.3 billion yen (over $83 million US) in a Series C round. Participating investors include SBI Investment, Pegasus Tech Ventures, Accenture, Dr. James Kuffner (robotics researcher, CEO of Toyota’s Wovn Planet Holdings), and 7-Industries Holdings. This follows the company’s Series B round back in August of 2014. The latest round brought their funding sum up to date to 20.5 billion yen (about $139 million).
Mujin was founded in 2011 by robotics scientist Rosen Diankov and grew out of the University of Tokyo. His team developed OpenRAVE, motion planning software for real robot applications, as well as Mujin Controller, software enabling simulate different robot motion patterns and optimize performance before full-scale operation. In 2012, the company secured 75 million yen (about $960,000 US in the exchange rate at the time) from the University of Tokyo Edge Capital (UTEC) and other investors in a Series A round.
In robotics operations, automation of complex processes has conventionally been considered difficult. However, Mujin Controller has given intelligence to robots, enabling them to adapt to changes in the environment. In addition to industrial robots, Mujin also provides large-scale automation solutions by linking robots with robot hands, AGVs (Automated Guided Vehicles), conveyors, and other devices.
The company will use the funds to invest in technology for intelligent robot controllers and 3D vision systems to achieve greater sophistication and multifunctionality. They also plan to launch new products such as mobile robots and devanning robots, provide total automation solutions, promote business expansion into the European market in addition to the US market where they already have presence.
Japanese startup Caster, the company offering online-based office assistant services for companies, announced on Wednesday that its initial listing application on the Tokyo Stock Exchange had been approved. The company will be listed on the TSE Growth Market on October 4 with plans to offer 350,000 shares for public subscription and to sell 52,500 shares in over-allotment options. The underwriting will be led by Daiwa Securities while Caster’s ticker code will be 9331. Based on the company’s estimated issue price is 650 yen (about $4.5) per share, its market cap is approximately 1.24 billion yen (about $8.5 million). Its share price range will be released on September 14 with bookbuilding scheduled to start on September 19 and pricing on September 25. The final public offering price will be determined on September 26. According to its consolidated statement as of August of 2022, the company posted revenue of 3.34 billion yen ($23 million) with an ordinary loss of 161.8 million yen ($1.1 million). Founded in September of 2014, the company offers Caster Biz and other services helping enterprises connect with freelance or contract-based remote workers to outsource corporate tasks such as secretary, personnel, accounting, and translation operations. Over 800 remote workers…
Japanese startup Caster, the company offering online-based office assistant services for companies, announced on Wednesday that its initial listing application on the Tokyo Stock Exchange had been approved. The company will be listed on the TSE Growth Market on October 4 with plans to offer 350,000 shares for public subscription and to sell 52,500 shares in over-allotment options. The underwriting will be led by Daiwa Securities while Caster’s ticker code will be 9331.
Based on the company’s estimated issue price is 650 yen (about $4.5) per share, its market cap is approximately 1.24 billion yen (about $8.5 million). Its share price range will be released on September 14 with bookbuilding scheduled to start on September 19 and pricing on September 25. The final public offering price will be determined on September 26. According to its consolidated statement as of August of 2022, the company posted revenue of 3.34 billion yen ($23 million) with an ordinary loss of 161.8 million yen ($1.1 million).
Founded in September of 2014, the company offers Caster Biz and other services helping enterprises connect with freelance or contract-based remote workers to outsource corporate tasks such as secretary, personnel, accounting, and translation operations. Over 800 remote workers have been registered while the company has served more than 2,900 companies in total as of 2021.
Major shareholders include Incubate Fund (25.24% through two funds), Blue Monday (20.05%, founder and CEO Shota Nakagawa’s asset management company), WiL (11.1%), Daiwa Corporate Investment (9.33%), Strive (6.08%), CEO Nakagawa (3.54%), Gree Co-Invest (3.3%), SMBC Venture Capital (2.8%), Gunosy Capital (2.43%), Hideaki Ishikura (1.7%, managing director), Dip (1.21%, TSE:2379), and Yamaguchi Capital (1.21%).
Some of our readers may recall that we have covered the Smaoku auction site several times over the last decade. The C2C marketplace saw rapid progress, expanding not only in Japan but also in Asia, but in February of 2017, it was acquired by fellow competitor and Japanese C2C marketplace giant Mercari. At the time, Smaoku’s founder Daisaku Harada joined Mercari. In April of 2018, Harada was appointed as CEO of Souzou, a new business subsidiary of Mercari. The new unit created the Mercari Atte app, which allows users to trade items in person, and the Merchari bicycle-sharing service, but shut down in June of 2019 (Mercari Atte is no longer in service, and Merchari was taken over by Neuet and is now in service as Chari Chari). In July of 2022, Harada announced his retirement from the Mercari Group. After that, he has been working as a private investor or as a fellow at the Chiba Dojo fund/community while he revealed that he would launch a new startup before the end of the year. Earlier this year, he moved to Singapore to begin his Web3 business in earnest. Today, he is launching a closed beta version of a web3-based…
Unikura Image credit: Velvett
Some of our readers may recall that we have covered the Smaoku auction site several times over the last decade. The C2C marketplace saw rapid progress, expanding not only in Japan but also in Asia, but in February of 2017, it was acquired by fellow competitor and Japanese C2C marketplace giant Mercari. At the time, Smaoku’s founder Daisaku Harada joined Mercari.
In April of 2018, Harada was appointed as CEO of Souzou, a new business subsidiary of Mercari. The new unit created the Mercari Atte app, which allows users to trade items in person, and the Merchari bicycle-sharing service, but shut down in June of 2019 (Mercari Atte is no longer in service, and Merchari was taken over by Neuet and is now in service as Chari Chari).
In July of 2022, Harada announced his retirement from the Mercari Group. After that, he has been working as a private investor or as a fellow at the Chiba Dojo fund/community while he revealed that he would launch a new startup before the end of the year. Earlier this year, he moved to Singapore to begin his Web3 business in earnest.
Today, he is launching a closed beta version of a web3-based C2C marketplace called Unikura, probably named after “Universal” and “Kura” (meaning warehouses in Japanese to store items). It is groundbreaking in that it brings the Web3 technology to a marketplace where real things, not virtual items, are being traded.
C2C marketplace without item delivery
Daisaku Harada
Harada came up with the idea while working remotely during the pandemic, where he bought a piece of art to decorate the backdrop of his desk as he was constantly communicating via Zoom and Teams. However, rare and valuable art is something of a hassle to manage. If it is within reach of children, it can be damaged, and if stored in a closet, it can become moldy in a hot and humid environment.
This type of collectible is an asset and can also be an investment, as its value can increase according to the supply-demand balance in the market, but at the end of the day, it is important to exercise the right of ownership and satisfy the desire to own. The more things a collector collects, the more he or she feels the hassle of keeping them close at hand, or even the hassle of unboxing the package when it arrives at the store.
Harada decided to create a marketplace that allows users to store physical items and trade only the proof of ownership via NFT (non-fungible token). When you send your physical item to the nearest Unikura’s warehouse in Japan or Singapore, the platform sends you back the proof of custody as an Ethereum-based NFT. That’s why you can then trade an item with other users by buying and selling the NFT. The buying user doesn’t need to have an physical item in their hand.
If you want to have the physical item in your hand, you can have it sent to yourself from the warehouse by erasing the proof of storage/possession (burning the NFT). The Unikura team is also considering inviting core users to tour the warehouse several times a year, to allow users to see for themselves whether their items are stored properly.
Creating a Third Place for Geeks
One of Unikura’s vault for storing users’ items. Image credit: Velvett
As a result of the long tail created by the Internet, people’s tastes have become more diverse and everything is collectible. Niche items are generally unappealing but become highly engaging for a certain core group of people, more specifically, geeks. However, because of the niche nature of this type of collectible, it is not easy to find friends to share thoughts and feelings with.
The reason why many people gather at Comiket (Comic Market) even in the midst of extreme heat and typhoon days, besides finding rare collectibles they want, is probably because they are looking for a community where they can talk about them. Similarly, the Unikura marketplace has built a community on Discord where collectors owning similar items can talk to each other, which is one of the benefits offered to users.
In addition, most transactions on the marketplace are for secondary distribution and are recorded on the Ethereum chain. Based on the the history, the marketplace returns a certain amount of rewards to not only the seller who made the most recent transaction but also to those in the past. The system will allow sellers to realize the benefits of using Unikura compared to transactions involving the physical handover of items, which may also help accelerate secondary distribution.
The marketplace has also established a system whereby not only recent sellers but also past sellers receive a certain amount of rewards based on the history of transactions recorded on Ethereum. This system will help sellers realize the benefits of using the marketplace in addition to in-person transactions, and will help revitalize the secondary distribution system.
Although trading cards currently account for the majority of items dealt on the marketplace, Harada intends to enhance its functionality so that a wider variety of items can be traded. The idea of turning physical collectibles into NFT is so called physically-backed NFT. In this space, we can see other startups like Y Combinator-backed Courtyard but it has a possibility of copyright infringement in that the designs created by third parties are converted directly into NFT. The Unikura team has carefully considered the legal issues in this regard to build the system accordingly.
In the high volatile crypto space, we’ve seen a number of fiat-pegged stable coins gold-convertible tokens like Digix. Compared to these efforts to stabilize the crypto value, Unikura’s idea of distributing tokens connected with physical items with value sounds very interesting.
Singapore-based Velvett, Harada’s startup behind the the marketplace, announced in April that it has secured $3 million US in a seed round from Chiba Dojo Fund, Kanousei Ventures, Hirac Fund (operated by Money Forward Venture Partners), W, mint, F Ventures, Flick Shot as well as several unnamed individual investors.
Tokyo / Los Angeles-based Gitai, the Japanese telexistance robotics startup for the space industry, announced on Wednesday that it has additionally secured $15 million US in a Series B extension round. In conjunction with the $30 million (4 billion yen) funding announced in May, the total amount secured in the Series B extension round has reached $45 million. Participating investors are Green Co-Invest, Pacific Bays Capital, and Mitsui Sumitomo Insurance Venture Capital while the amount includes loans from MUFG Bank. The robotics startup’s exact funding sum to date has not been disclosed, however, it is believed to have reached over 9 billion yen (over $62 million) in total, including the latest funding. The company plans to use the funds to expand its business operation in the U.S. and for part of the lunar surface demonstration. Prior to launching Gitai in 2016 (under its previous name of MacroSpace), the company’s founder Sho Nakanose previously worked for IBM Japan followed by founding an IT services company in India and sold it to an Indian company. Some of our readers may recall that Yuto Nakanishi, a humanoid scientist/engineer and former CEO of Schaft (acquied by Google X), joined Gitai as COO (now CRO,…
GITAI Lunar Rover
Tokyo / Los Angeles-based Gitai, the Japanese telexistance robotics startup for the space industry, announced on Wednesday that it has additionally secured $15 million US in a Series B extension round. In conjunction with the $30 million (4 billion yen) funding announced in May, the total amount secured in the Series B extension round has reached $45 million.
Participating investors are Green Co-Invest, Pacific Bays Capital, and Mitsui Sumitomo Insurance Venture Capital while the amount includes loans from MUFG Bank. The robotics startup’s exact funding sum to date has not been disclosed, however, it is believed to have reached over 9 billion yen (over $62 million) in total, including the latest funding. The company plans to use the funds to expand its business operation in the U.S. and for part of the lunar surface demonstration.
Prior to launching Gitai in 2016 (under its previous name of MacroSpace), the company’s founder Sho Nakanose previously worked for IBM Japan followed by founding an IT services company in India and sold it to an Indian company.
Some of our readers may recall that Yuto Nakanishi, a humanoid scientist/engineer and former CEO of Schaft (acquied by Google X), joined Gitai as COO (now CRO, Chief Robot Officer).
Gitai secured $4.1 million US in a Series A round in July of 2019 followed by 1.8 billion yen (about $17 million US in the exchange rate at the time) in a Series B round in March of 2021.
Tokyo-based Brave group, a Japanese VTuber studio and working on other intellectual property (IP)-related businesses, announced on Wednesday that it has secured 1.99 billion yen (about $13.7 million) in the 1st close of its series D round. This was led by Simplex Capital Investment with participation from Tokyo University of Science Innovation Capital, Money Forward Venture Partners (HIRAC FUND), Revamp, and Adways Ventures. The latest round brought the company’s funding sum up to date to 5.03 billion yen ($34.5 million). Some of our readers may recall that the company secured 300 million (about $2 million) from Animoca Brands Japan back in January. Brave group was founded in 2017 by Japanese serial entrepreneur Keito Noguchi. The company produces and operates VTuber groups, including the virtual music label BlitzWing, and has developed IP-related businesses, a platform business using the Brave Engine metaverse engine in addition to pioneering emerging areas such as e-sports and Web3. The company established a US subsidiary in June to launch V4Mirai, a VTuber project focused on English-speaking markets. Brave group acquired Virtual Entertainment and MateReal in June. Virtual Entertainment operates manages Buisseppo! e-sports-focused VTuber group while MateReal manages the Palette Project female virtual idol group. In July, the…
Image credit: Brave group
Tokyo-based Brave group, a Japanese VTuber studio and working on other intellectual property (IP)-related businesses, announced on Wednesday that it has secured 1.99 billion yen (about $13.7 million) in the 1st close of its series D round. This was led by Simplex Capital Investment with participation from Tokyo University of Science Innovation Capital, Money Forward Venture Partners (HIRAC FUND), Revamp, and Adways Ventures.
The latest round brought the company’s funding sum up to date to 5.03 billion yen ($34.5 million). Some of our readers may recall that the company secured 300 million (about $2 million) from Animoca Brands Japan back in January.
Brave group was founded in 2017 by Japanese serial entrepreneur Keito Noguchi. The company produces and operates VTuber groups, including the virtual music label BlitzWing, and has developed IP-related businesses, a platform business using the Brave Engine metaverse engine in addition to pioneering emerging areas such as e-sports and Web3. The company established a US subsidiary in June to launch V4Mirai, a VTuber project focused on English-speaking markets.
Brave group acquired Virtual Entertainment and MateReal in June. Virtual Entertainment operates manages Buisseppo! e-sports-focused VTuber group while MateReal manages the Palette Project female virtual idol group. In July, the company acquired Geek Hive which offers digital transformation support for enterprises. The company will use the funds to strengthen overseas expansion and more aggressively merge and acquire other companies to further diversify revenue stream.
Tokyo-based EmbodyMe, the Japanese startup behind VR and deepfake technologies, launched a new app called Xpression Chat on Thursday, which allows you talk to any virtual human of your favor through ChatGPT integration. The app is available for for iOS and Android. According to the company’s CEO Issay Yoshida, the most popular response from beta users has been to create avatars from celebrity photos and have them talk. Xpression Chat is taking on the realm of the virtual human. By simply uploading a photo of a person of your choice, you’ll be allowed to experience the realm of the virtual human in your mobile. The company hopes to use the app as a starting point to propose use cases to various businesses. For this reason, the company will also start offering SDKs (software developer kits) for multiple platforms – iOS, Android, Windows, and Mac. According to Yoshida, the technology’s use cases for business may include virtual customer representative using digital signage. In the scene like, let’s say, asking for product recommendations in a store or getting directions to a location in the airport, representative will be replaced by virtual human sooner or later, because of the need for multilingual support…
Tokyo-based EmbodyMe, the Japanese startup behind VR and deepfake technologies, launched a new app called Xpression Chat on Thursday, which allows you talk to any virtual human of your favor through ChatGPT integration. The app is available for for iOS and Android. According to the company’s CEO Issay Yoshida, the most popular response from beta users has been to create avatars from celebrity photos and have them talk.
Xpression Chat is taking on the realm of the virtual human. By simply uploading a photo of a person of your choice, you’ll be allowed to experience the realm of the virtual human in your mobile. The company hopes to use the app as a starting point to propose use cases to various businesses. For this reason, the company will also start offering SDKs (software developer kits) for multiple platforms – iOS, Android, Windows, and Mac.
Xpression Chat Image credit: EmbodyMe
According to Yoshida, the technology’s use cases for business may include virtual customer representative using digital signage. In the scene like, let’s say, asking for product recommendations in a store or getting directions to a location in the airport, representative will be replaced by virtual human sooner or later, because of the need for multilingual support and labor shortage. If the LLM (large language model) used here has an access to more information sources to refer to, you’ll be never told that “I have no idea. Would you like to ask someone else?” Yoshida says “Virtual humans will definitely answer you in a smarter way”.
He also thinks it could be applied to education and other areas. In addition, they may offer services to influencers who constantly stream live programs. For example, a virtual chatbot that can behave as if the influencer is could expand the possibilities of his/her activities. Compared to traditional chatbot services, which are often text or voice only, Xpression Chat would allow them to keep their own appearance making it easier to keep engaging with their fans even in a form of virtual human.
Yoshida says,
If we develop a virtual human-based chatbot, it will be much more personal rather than existing virtual performers such as Vocaloid or VTuber.
EmbodyMe will focus on cultivating business demand by presenting the app combining the company’s own technology with the latest AI technology. The app is offered on a freemium basis, but if users choose a paid premium option, the number of conversations will be unlimited. The premium plan also allows more easily users to import images for their avatar from mobile photo storage and image searches. The premium plan includes a 7-day free trial period.
Tokyo-based IVA, the Japanese startup behind the Fake Busters AI-powered authenticity detection service for branded goods, announced on Wednesday that it has secured about 800 million yen (about $5.8 million US) in the latest round. The amount includes loans from Mizuho Bank and Resona Bank. This is the first funding for the five-year-old startup. Participating investors are Mercari (TSE:4385), De Capital family office, and four angel investors – Shogo Kawada (co-founder of DeNA), Yuzuru Honda (founder of Freakout Holdings), Eiko Matsumura, and Yusuke Masuda. Fake Busters offers product authenticity services by combining a team of experienced appraisers with diverse backgrounds, state-of-the-art specialized equipment, and AI-powered authenticity detection technology. The company is capable of appraising 88 brands in the fields of sneakers, luxury goods, apparel, and accessories, which have large secondary distribution demand. The company has appraised a total of 1.5 million items to date, and offers appraisal services tailored to customer needs, such as quick appraisals based on images as well as complete appraisals based on actual items. The company uses the funds to plans to further enhance its AI capability, which currently has a 99.9% authenticity rate, to speed up the process, and to add an express option that…
Image credit: IVA
Tokyo-based IVA, the Japanese startup behind the Fake Busters AI-powered authenticity detection service for branded goods, announced on Wednesday that it has secured about 800 million yen (about $5.8 million US) in the latest round. The amount includes loans from Mizuho Bank and Resona Bank. This is the first funding for the five-year-old startup. Participating investors are Mercari (TSE:4385), De Capital family office, and four angel investors – Shogo Kawada (co-founder of DeNA), Yuzuru Honda (founder of Freakout Holdings), Eiko Matsumura, and Yusuke Masuda.
Fake Busters offers product authenticity services by combining a team of experienced appraisers with diverse backgrounds, state-of-the-art specialized equipment, and AI-powered authenticity detection technology. The company is capable of appraising 88 brands in the fields of sneakers, luxury goods, apparel, and accessories, which have large secondary distribution demand. The company has appraised a total of 1.5 million items to date, and offers appraisal services tailored to customer needs, such as quick appraisals based on images as well as complete appraisals based on actual items.
The company uses the funds to plans to further enhance its AI capability, which currently has a 99.9% authenticity rate, to speed up the process, and to add an express option that will provide results in 60-90 minutes, previously within 48 hours. The company will expand applying the AI-based authenticity detection into further product categories such as luxury brand bags, jewelry, and trading cards.
Launched a Taiwanese office in June, the company plans to set up a subsidiary in Mainland China in August with consideration of expanding into the South Korea, Southeast Asia, and North America markets in the future. The service supports Japanese, English, Simplified Chinese, Traditional Chinese, Korean, and nine major currencies.
The Bridge
Yukari Mitsuhashi
Rick Martin
Masaru Ikeda
