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Japanese startup founders join forces to launch fund, aiming to encourage younger selves

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Tokyo-based digital media outlet Wired.jp reported on Wednesday that eight successful entrepreneurs from Japan have joined forces and launched a new startup-focused investment fund called Tokyo Founders Fund. The founding members represent an impressive lineup of the Japanese startup community: Yusuke Asakura (former CEO of Mixi, visiting scholar at Stanford University) Nobuhiro Ariyasu (Coach United CEO) Kiyo Kobayashi (Chanoma CEO) Yusuke Sato (Freakout COO) Yo Shibata (former Spotlight CEO) Kensuke Furukawa (Nanapi CEO) Ayataro Nakagawa (Peroli CEO) Taichi Murakami (Livesense CEO) Inspired by San Francisco-based Founders Fund started in 2005 by the Paypal founders, Kobayashi decided that Japan also needed a similar startup investment founders fund while building a network with local investors and entrepreneurs in the San Francisco Bay Area where he is based. According to Kobayshi’s recent post on Facebook, the fund will offer a small amount of investment to pre-seed and seed stage startups around the world. Details of the fund’s activities have not been decided, but the eight-person team will discuss this in a closed Facebook group while looking to give their invested entrepreneurs functions as a knowledge sharing platform around launching businesses and a hub for connecting them with each others. Edited by Kurt Hanson

tokyo-founders-fund_featuredimage

Tokyo-based digital media outlet Wired.jp reported on Wednesday that eight successful entrepreneurs from Japan have joined forces and launched a new startup-focused investment fund called Tokyo Founders Fund.

The founding members represent an impressive lineup of the Japanese startup community:

Inspired by San Francisco-based Founders Fund started in 2005 by the Paypal founders, Kobayashi decided that Japan also needed a similar startup investment founders fund while building a network with local investors and entrepreneurs in the San Francisco Bay Area where he is based. According to Kobayshi’s recent post on Facebook, the fund will offer a small amount of investment to pre-seed and seed stage startups around the world.

Details of the fund’s activities have not been decided, but the eight-person team will discuss this in a closed Facebook group while looking to give their invested entrepreneurs functions as a knowledge sharing platform around launching businesses and a hub for connecting them with each others.

Edited by Kurt Hanson

Meet Oton Glass, the Japanese smart glasses helping the reading impaired

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See the original story in Japanese. When I go to startup events both in Japan and overseas these days, I am usually faced with a panel discussion focusing on robotics where Asimov’s Three Laws of Robotics comprise the topic that always comes up. But I think the laws should not be applied to robotics only. It is obvious that various products created by startups have to adopt them as well for the sake of people. Born out of the third batch of the Docomo Ventures incubation program last year, I see Oton Glass becoming one of the most helpful products globally. Keisuke Shimakage, CEO of Particular Design developing the smart glasses product, is attending the Institute of Advanced Media Arts and Sciences (IAMAS), a public university in the central Japanese city of Gifu, between Tokyo and Osaka. He started developing Oton Glass to support the daily life of his father who was dyslexic. Dyslexia is a kind of learning disorder where patients have no problem at all with their eyesight, intelligence or ability to comprehend words but suffer from significant difficulties in reading and writing words. In recent years, Hollywood celebrities like Tom Cruise and Steven Spielberg admitted being dyslexic; the symptom occurs in 10% of the entire population in the US and Europe. Dyslexia inconveniences the patients only when reading…

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See the original story in Japanese.

When I go to startup events both in Japan and overseas these days, I am usually faced with a panel discussion focusing on robotics where Asimov’s Three Laws of Robotics comprise the topic that always comes up. But I think the laws should not be applied to robotics only. It is obvious that various products created by startups have to adopt them as well for the sake of people.

Born out of the third batch of the Docomo Ventures incubation program last year, I see Oton Glass becoming one of the most helpful products globally. Keisuke Shimakage, CEO of Particular Design developing the smart glasses product, is attending the Institute of Advanced Media Arts and Sciences (IAMAS), a public university in the central Japanese city of Gifu, between Tokyo and Osaka. He started developing Oton Glass to support the daily life of his father who was dyslexic.

Dyslexia is a kind of learning disorder where patients have no problem at all with their eyesight, intelligence or ability to comprehend words but suffer from significant difficulties in reading and writing words. In recent years, Hollywood celebrities like Tom Cruise and Steven Spielberg admitted being dyslexic; the symptom occurs in 10% of the entire population in the US and Europe.

Dyslexia inconveniences the patients only when reading and writing words, which leads to a lack of awareness among the general populace. However, it is obviously inconvenient as people use written words for daily communications.

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L to R: Kosuke Yamagishi (software developer), Naoya Miyamoto (hardware developer), Keisuke Shimakage (CEO), Arata Shimizu (product designer)  Photo courtesy of Docomo Ventures

Oton Glass was originally designed to integrate with a character recognition API (application program interface) provided by NTT Docomo, capturing images with a built-in camera, recognize them on the cloud, send synthesized voices back to the user. So the platform can support people with reading disabilities without human assistance, but Shimakage told us that their approach soon reached a technological limit.

We have learned many things through user testing. For example, when waiting for my turn in the hospital, I would want to know if my receipt number is displayed on the board. However, my behavior that tries to point my iPad camera to the target object so that the device can recognize characters in it would be annoying for people around me.

We have heard many voices saying that they don’t want to use it. We found that there was inconvenience that non-handicapped people couldn’t recognize.

When starting development of the product, the team devoted itself to increasing the accuracy of character recognition. However, regardless of how accurate the sensors they adopted for eye-tracking, it was difficult to point out the characters to increase the accuracy for recognition. Furthermore, recognizing characters takes time, so users need to wait for a speech response after gazing at the target object, which led to stressing out.

Under that situation, the team knew of Copenhagen-based BeMyEyes. The Danish startup provides a crowdsourcing platform where the visually impaired can share live video of what they are looking at via a connected camera with helpers online so that helpers will describe it over the voice chat.

While many of BeMyEyes users are based in Europe and the US, the Particular Design team thinks that they can cooperate with BeMyEyes in many aspects including encouraging Japanese-speaking helpers to join the platform as well as enhancing its use case beyond, to helping dyslexic patients.

Shimakage elaborates:

For example, we would like to further develop Oton Glass in collaboration with BeMyEyes’ existing community so that our hardware will be more optimized for their users.

When we recently exhibited our product at a conference focused on accessibility for the disabilities, we heard many voices from glaucoma patients that they want to use it.

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“Oton Glass” Prototype 2013 (the initial prototype developed in 2013)

So will the Oton Glass platform pivot to a human-powered crowdsourcing from the character recognition-based technology? In response to this my question, the team’s hardware developer Naoya Miyamoto explained:

We will not give up on character recognition technology. Since technologies for eye-tracking and character recognition will further advance from now on, our solution will become a hybrid of both human-powered and machine-based character recognition.

In partnership with the researchers at Osaka Prefecture University who have joined the CREST project with their character recognition technology, the Particular Design team wants to further develop the product, closely working with dyslexic patients, experienced people from academic circles, and other startups.

While many hardware startups typically use Kickstarter or Indiegogo in their early stage as a marketing tool rather than for fundraising purposes, the Particular Design team wants to focus on solving the problems of dyslexic patients participating in user tests before putting funding, production system, and marketing expansion strategies into consideration.

Yusuke-Asakura-of-Mixi
Yusuke Asakura (Image: Stanford University)

In the Docomo incubation batch, former Mixi CEO Yusuke Asakura mentored the team and gave them a huge impact about where they can head to, so they expressed a huge appreciation to his effort.

We could get a supportive comment from him for the team’s future growth.

I participated in the last year’s batch (of the Docomo Ventures’ incubation program) from the screening process. I thought that Shimakage’s team deserved a nomination because I was so impressed with his passion that he wants to develop a product making his father’s life more comfortable. I think that the product born out of his real experience or motivation will be probably something gentler for people using it rather than if somebody else had done it.

I’m looking forward to the growth of the product so that it will improve the quality of lives of his father and other people suffering from the same syndrome.

Translated by Chieko Frost via Mother First
Edited by Masaru Ikeda and “Tex” Pomeroy

Japan’s weight-loss startup FiNC fundraises, appoints former Mixi and Opt CEOs as advisors

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See the original story in Japanese. FiNC is a Tokyo startup that provides online weight loss and dietary advice based on a scientific approach such as genetic testing. The company announced today that it has raised a series A round of an undisclosed sum from Itochu Technology Ventures, Gree Ventures, Link and Motivation, MID Venture Capital, former Mixi CEO Yusuke Asakura and former Opt CEO Tomohito Ebine. The company also unveiled that it has obtained large loans from Mizuho Bank and other financial institutions. Coinciding with the funds, Asakura and Ebine joined the company as strategic advisors. Asakura said the company represents a great advancement in the fitness industry and has a highly-talented engineering team and that he will aggressively support the company expand in Japan and globally. Ebine said the company is well-balanced with fresh talent and skilled people. In a view of Japan’s aging population, he sees a huge market and a great potential business in developing solutions that improve people’s health and increase life expectancy. The FiNC online diet coach service helps users achieve their weight-loss goals. When a user mails their genetic and blood samples along with their lifestyle and dietary information to FiNC, they will…

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From the left: Yusuke Asakura (advisor), CFO Fumio Norimatsu, CEO Yji Mizoguchi, and Tomohito Ebine (advisor)

See the original story in Japanese.

FiNC is a Tokyo startup that provides online weight loss and dietary advice based on a scientific approach such as genetic testing. The company announced today that it has raised a series A round of an undisclosed sum from Itochu Technology Ventures, Gree Ventures, Link and Motivation, MID Venture Capital, former Mixi CEO Yusuke Asakura and former Opt CEO Tomohito Ebine. The company also unveiled that it has obtained large loans from Mizuho Bank and other financial institutions.

Coinciding with the funds, Asakura and Ebine joined the company as strategic advisors. Asakura said the company represents a great advancement in the fitness industry and has a highly-talented engineering team and that he will aggressively support the company expand in Japan and globally. Ebine said the company is well-balanced with fresh talent and skilled people. In a view of Japan’s aging population, he sees a huge market and a great potential business in developing solutions that improve people’s health and increase life expectancy.

The FiNC online diet coach service helps users achieve their weight-loss goals. When a user mails their genetic and blood samples along with their lifestyle and dietary information to FiNC, they will receive dietary and fitness advice from certified dietitians and fitness trainers via smartphone.

FiNC CEO Yuji Mizoguchi expects that within five years the company will have an IPO and that one person in ten in Japan will be using their service.

He added:

We welcome Asakura and Ebine on board, both having launched and IPO-ed their startups. Akukura is the same generation as us and greatly motivates us in our work. He will provide us with his extensive knowledge in cutting-edge areas in the world, which is definitely required for our global business expansion. Ebine is good at establishing alliances between startups and established companies. There will be many things that we can learn from him. We want to leverage his vast network in the healthcare industry.

Japan’s Mixi to appoint new CEO (again!), Yusuke Asakura to step down

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Japanese internet company Mixi today announced its financial report for the previous quarter. But they also announced that their CEO, Yusuke Asakura, will step down, appointing Hiroki Morita, general manager of the game department as the new CEO, effective after the scheduled shareholder meeting on June 24th. According to the company, the huge success of its gaming apps (like Monster Strike) have helped them return to profit, despite the prediction that the company might show a $10 million loss in the fiscal year ending this March. They appointed the new CEO as part of their shifting from a recovery phase to a “re-growth” stage. Asakura was appointed as the CEO just last June. Prior to joining Mixi back in 2011, he had been running the startup Naked Technology, subsequently acquired by Mixi. His former colleagues include Miku Hirano, whose startup Spicy Cinnamon recently announced a new round of funding, as well as a new photo app.

From the left: Co-founder Kenji Kasahara and the current CEO Yusuke Asakura
From the left: Co-founder Kenji Kasahara and the current CEO Yusuke Asakura

Japanese internet company Mixi today announced its financial report for the previous quarter. But they also announced that their CEO, Yusuke Asakura, will step down, appointing Hiroki Morita, general manager of the game department as the new CEO, effective after the scheduled shareholder meeting on June 24th.

According to the company, the huge success of its gaming apps (like Monster Strike) have helped them return to profit, despite the prediction that the company might show a $10 million loss in the fiscal year ending this March. They appointed the new CEO as part of their shifting from a recovery phase to a “re-growth” stage.

Asakura was appointed as the CEO just last June. Prior to joining Mixi back in 2011, he had been running the startup Naked Technology, subsequently acquired by Mixi. His former colleagues include Miku Hirano, whose startup Spicy Cinnamon recently announced a new round of funding, as well as a new photo app.

Japanese CEOs from Mixi, Livesense on developing new businesses

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See the original story in Japanese. This is a part of our coverage of B Dash Camp Fukuoka 2013. On day one of B Dash Camp 2013 in Osaka, the first session featured a discussion, moderated by Hiroyuki Watanabe of B Dash Ventures, with two representatives of leading Japanese leading internet companies: Yusuke Asakura, CEO of Mixi; and Taichi Murakami, CEO of Livesense Mixi has revised its fiscal year performance forecast ending March of 2014, down from 13.5 billion yen ($139 million) to 8 billion ($82.4 million), forcing their executives into a hard spot. Meanwhile Livesense, while not well recognized by many outside Japan, but is performing well. We’re forecasting an operating profit worth 1.5 billion yen ($15.5 million). Currently we are exploring the launch of a new monetization model like a buzz marketing site. The both companies need to think about their future business strategy in their respective business environments. Coinciding with a new acquisition just announced today (they’ll acquire speed-dating organizer Confianza to launch a match-making business), Mixi’s Asakura spoke about his company’s future potential for in-house service development and M&A. Our readers may recall that to date Mixi has launched mobile testing environment DeployGate, photobook service Nohana,…

B Dash Ventures' Hiroyuki Watanabe, Livesense's Taichi Murakami, Mixi's Yusuke Asakura
From the left: B Dash Ventures’ Hiroyuki Watanabe, Livesense’s Taichi Murakami, Mixi’s Yusuke Asakura

See the original story in Japanese.

This is a part of our coverage of B Dash Camp Fukuoka 2013.

On day one of B Dash Camp 2013 in Osaka, the first session featured a discussion, moderated by Hiroyuki Watanabe of B Dash Ventures, with two representatives of leading Japanese leading internet companies: Yusuke Asakura, CEO of Mixi; and Taichi Murakami, CEO of Livesense

Mixi has revised its fiscal year performance forecast ending March of 2014, down from 13.5 billion yen ($139 million) to 8 billion ($82.4 million), forcing their executives into a hard spot. Meanwhile Livesense, while not well recognized by many outside Japan, but is performing well.

We’re forecasting an operating profit worth 1.5 billion yen ($15.5 million). Currently we are exploring the launch of a new monetization model like a buzz marketing site.

mixi livesense

The both companies need to think about their future business strategy in their respective business environments. Coinciding with a new acquisition just announced today (they’ll acquire speed-dating organizer Confianza to launch a match-making business), Mixi’s Asakura spoke about his company’s future potential for in-house service development and M&A. Our readers may recall that to date Mixi has launched mobile testing environment DeployGate, photobook service Nohana, a business research service, and a match-making business.

Watanabe asked how such new businesses can be synergized with their conventional businesses. Asakura replied:

We don’t need to pursue immediate synergy with our services. By making the most of the knowledge we have, we will keep acquiring new services and development ones in house. For example, the match-making business will be treated as separate from our main business.

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Livesense’s Murakami unveiled they have four different business development efforts: internal service development, investment in startups, M&A, and partnerships. When pressed by the moderator, he confessed that he had hoped to invest in private lesson marketplace Cyta.jp, recently acquired by Japanese recipe site Cookpad. This prompted a big laugh from the audience.

Since Livesense has been developing a database business from the scratch, it helps them build up knowledge on how to better develop a new business. He said this will also work even in a business that is entirely different from their own existing businesses.

After announcing new CEO last week, Japan’s Mixi invests in two startups

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In the wake of announcing a new CEO last week, Japanese social network company Mixi (TYO:2121) continued a busy month by announced investments in two startups today. At its financial results briefing, incoming CEO Yusuke Asakura talked about future changes planned for Mixi, including aggressive investments in promising companies. The two investment disclosed today are CloudStudy and Reventive. CloudStudy will receive 72 million yen (over $700,000), which will account for 20% of its total funding to date. The figure for Reventive was not disclosed but it is somewhere in the tens of millions. The startup has other investors including Sunbridge Global Ventures and some angel investors, adding up to 70 million yen in total. StudyPlus is a social learning management platform that was released back in March of 2012. It hit the 100,000 user milestone after almost a year later in April of 2013 . Users can study languages or prepare for university entrance exams by recording their study hours and content, sharing progress with friends if they choose. The platform can be used anonymously, making it easy to connect with other users. The startup’s CEO Takashi Hirose shared some interesting figures about their growth to date. So far they…

StudyPlus-logo Close-logo

In the wake of announcing a new CEO last week, Japanese social network company Mixi (TYO:2121) continued a busy month by announced investments in two startups today. At its financial results briefing, incoming CEO Yusuke Asakura talked about future changes planned for Mixi, including aggressive investments in promising companies.

The two investment disclosed today are CloudStudy and Reventive. CloudStudy will receive 72 million yen (over $700,000), which will account for 20% of its total funding to date. The figure for Reventive was not disclosed but it is somewhere in the tens of millions. The startup has other investors including Sunbridge Global Ventures and some angel investors, adding up to 70 million yen in total.

StudyPlus is a social learning management platform that was released back in March of 2012. It hit the 100,000 user milestone after almost a year later in April of 2013 . Users can study languages or prepare for university entrance exams by recording their study hours and content, sharing progress with friends if they choose. The platform can be used anonymously, making it easy to connect with other users.

The startup’s CEO Takashi Hirose shared some interesting figures about their growth to date. So far they have 23 million monthly page views, with about 9,500 of their 12,000 active users recording learning activities every day with the app. That means 80% of all the users who log into the service enter a record, typically 3.5 times a day on average. StudyPlus is available both on the web, as well as via iOS and Android apps.

As for Reventive, its main offering is an app called Close, which is available on both iOS and Android. Close is sort of a Path equivalent, limiting the number of friends you can have to nine people. The app aspires to be the most secure place to connect and communicate with the most important people in your lives. There is a big update planned for June, so stay tuned to see what they have in store. Close is a graduate of KDDI Mugen Labo.

Written with contributions from Masaru Ikeda

Japan’s Mixi to appoint new CEO, co-founder Kenji Kasahara to step down

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Japanese social network giant Mixi (TYO:2121) announced today that its co-founder Kenji Kasahara would step down from the CEO position. Yusuke Asakura will take over in his place effective June 25th when the company’s next shareholder meeting is scheduled. Asakura started his career at McKinsey & Co, founding his startup Naked Technology in August of 2010 [1]. That company was subsequently acquired by Mixi. In the announcement, Mr. Kasahara expressed some parting thoughts: Mr. Asakura has two different backgrounds — working at a big consulting firm and running his own startup, and that experience will help guide him to make good decisions in a logical manner, with passion. He is still just 30 years old but has the great entrepreneurial drive needed to lead our business. 16 years has been passed since the launch of Find Job (a talent/job matching site by Mixi), and nine years has been passed since the launch of the Mixi social network platform. I’ll be stepping down as chairman, but our new CEO will evolve the entire company to bring more new services to the community. Last August Mixi set up an internal ‘innovation team’ to intensify service development efforts. So far their products include app…

mixi_logoJapanese social network giant Mixi (TYO:2121) announced today that its co-founder Kenji Kasahara would step down from the CEO position. Yusuke Asakura will take over in his place effective June 25th when the company’s next shareholder meeting is scheduled.

From the left: the current CEO Kenji Kasahara and upcoming CEO Yusuke Asakura
Current CEO Kenji Kasahara (left) and incoming CEO Yusuke Asakura (right)

Asakura started his career at McKinsey & Co, founding his startup Naked Technology in August of 2010 [1]. That company was subsequently acquired by Mixi. In the announcement, Mr. Kasahara expressed some parting thoughts:

Mr. Asakura has two different backgrounds — working at a big consulting firm and running his own startup, and that experience will help guide him to make good decisions in a logical manner, with passion. He is still just 30 years old but has the great entrepreneurial drive needed to lead our business.

16 years has been passed since the launch of Find Job (a talent/job matching site by Mixi), and nine years has been passed since the launch of the Mixi social network platform. I’ll be stepping down as chairman, but our new CEO will evolve the entire company to bring more new services to the community.

Last August Mixi set up an internal ‘innovation team’ to intensify service development efforts. So far their products include app testing service DeployGate and photo printing app Nohana. These are not derivatives from the social network, and they represent entirely new revenue streams for the company.

Mixi has also been aggressively acquiring high-profile startups and entrepreneurs, and this is a trend that can be seen across the entire Japanese tech scene, with Yahoo Japan being especially active.

Press briefing at Mixi Headquarters (May 15th, Tokyo)
Press briefing at Mixi Headquarters (May 15th, Tokyo)

  1. We’ve recently written about another Naked Technology alum Miku Hirano, who is trying to conquer the Southeast Asia region with a unique photo sharing app.  ↩