Navigating Open Innovation: Startup Success from Tokyo to Silicon Valley
- Co-founder of 2080 Ventures
- Former Managing Director of Asia at Mind The Bridge
- LP & Angel Investor in startups including SpaceX and Cerebras
- Co-author of Failing vs Succeeding Companies: The Crucial Difference in Open Innovation
Q1. What were the main challenges in launching an AI sales SaaS product for SoftBank?
When we set out to launch the AI sales SaaS product at SoftBank, industry networks were crucial. Our CEO’s strong connections with Japan’s IT sector leaders—including IBM, Microsoft, and Salesforce—helped open doors. In Japan, as in Korea and the U.S., established networks often drive business relationships and sales.
Our initial Proof of Concept (PoC) with SoftBank was a top-down initiative, but to achieve full adoption, ongoing collaboration with the operational team was essential. We prioritized understanding SoftBank’s specific needs, which allowed us to adjust our approach continually and successfully implement the solution.
While established networks are invaluable, only some startups have this advantage. Startups should focus on creative strategies for building connections with desired partners. Personally, I had no network upon arriving in Silicon Valley, but by attending events and networking diligently, I secured a position at a local accelerator. Though challenging, the right strategy and persistence can help startups connect with the clients they need.
Q2. What factors are crucial for a startup to thrive in capital-intensive industries like aerospace and AI?
In Silicon Valley, proving your technology and business on merit is fundamental. Success often hinges on learning quickly from setbacks and pivoting to meet market demands. Observing startups in our accelerator, I saw that those adapting swiftly were the most successful. The speed of decision-making and execution plays a crucial role in a startup’s trajectory.
Q3. Why is open innovation prevalent in Japan, and how can startups foster successful collaborations?
Japanese corporations have been active globally for a long time in open innovation, with internal roadmaps for technology adoption. To collaborate with these corporates, startups should first understand each company’s strategic direction and future needs. “Frontier tech” opportunities, where corporations explore early-stage technologies, can be ideal for startups with market-ready solutions. Without a proven track record, however, startups may struggle to initiate these discussions.
Q4. How can startups maximize open innovation opportunities with global corporations?
Startups should first assess if their product aligns with the strategic goals of large companies. Collaborating with industry-specific accelerators, securing venture capital investment, and using platforms like Crunchbase and Pitchbook can also help boost visibility. Building connections on LinkedIn can create valuable links to those managing open innovation within corporations. Pursuing multiple channels at once can accelerate open innovation opportunities.
Q5. Is it better for startups to focus on local issues or regulatory advantages when targeting global corporations?
This depends on the startup’s focus. Sectors like bio and hardware may require navigating complex regulatory landscapes, while universal software solutions have broader global appeal. Ultimately, meeting global customer needs often matters more than regional regulations.
Q6. How is the global startup ecosystem evolving around open innovation?
Open innovation models, including corporate venture capital and the “venture client model,” continue to expand. This model allows startups to partner with large corporations, building real-world experience and enhancing credibility. For startups, successfully integrating their solutions within larger corporations can drive revenue growth and market validation.
Q7. What advice do you have for organizations navigating today’s fast-changing landscape?
As technology boosts change, large corporations must establish clear strategies to navigate uncertainty, while startups should leverage open innovation to access broader insights and networks. Building strong industry connections helps both startups and established companies adapt to rapid shifts.
Key Takeaways:
- Networking is essential for understanding large companies’ technology needs and growth priorities.
- Open innovation requires proven technology for success.
- Global corporations, especially in the U.S. and Japan, have processes to integrate startups through open innovation. Korean conglomerates may also benefit from adopting this model.