2024.7.31
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Our association is dedicated to enhancing the angel investment environment in Japan and supporting the growth of startups. We provide a monthly update on various topics related to angel investing, including activity reports, the latest news, and pitch event reports.
The success of a startup goes beyond just technology or ideas. The serendipitous moments and deep trust that emerge from both online and offline interactions are the keys to unlocking the future. In this article, we explore how angel investors can effectively balance online and offline engagement to increase their chances of success in startup investments.
From July 4th to 6th, 2024, ‘IVS2024 KYOTO’ was held in Kyoto, garnering attention as Japan’s largest startup event where angel investors and entrepreneurs gather. With numerous booth exhibitions and a mix of in-person encounters, as well as online sessions and remote presentations utilizing cutting-edge technology, participants experienced new forms of communication that transcend physical distances.
Toshi: “At large events like IVS, I don’t prioritize meeting specific acquaintances. Instead, I value the spontaneous encounters and the serendipity of reconnecting with people after a decade. By focusing on these encounters, unexpected business opportunities often arise. In fact, our association hosted two side events at IVS: ‘Angel Night’ on the first day and ‘Entrepreneur Night’ on the second day, where we created value that was greater than the sum of its parts.”
While online meetings allow us to connect with many people without being constrained by time or location, the powerful trust-building that comes from face-to-face interactions is also being reaffirmed. Particularly, following up an online presentation with an offline meeting can strengthen business partnerships, highlighting the importance of each form of communication.
As the ways angel investors and entrepreneurs connect diversify, it is crucial to consciously balance these interactions.
Online communication has become increasingly important due to its convenience and time efficiency. It reduces the time and costs associated with offline interactions, allowing us to connect with more people without physical constraints. However, online interactions also present challenges. For instance, non-verbal cues such as subtle facial expressions and body gestures are harder to convey through a screen, increasing the risk of misunderstandings. In the relationship between angel investors and entrepreneurs, where building long-term partnerships requires trust, face-to-face offline communication is highly effective for getting to know each other and building that trust.
Toshi: “Online communication is excellent for goal-oriented interactions, but it is also true that it can be challenging to spark unexpected encounters or new discoveries. In contrast, offline encounters and communication often lead to ideas and relationships that can shape the future through casual conversations. Attending events just to meet people can often result in a textbook-like experience, but I find that smaller gatherings or casual settings often lead to the kind of genuine input that you can’t get anywhere else. Creating such spaces regularly is important for both angel investors and entrepreneurs.”
The fusion of online and offline will become an essential element in future business communication. First, you meet in person at a trusted event like IVS2024 KYOTO to build trust. Then, you deepen the relationship through online presentations and discussions, and for critical decisions or contract signing, you return to face-to-face meetings.
Large online meetings are very useful for efficiently transmitting information, but they are not suitable for building individual relationships. Therefore, after sharing the big picture in an online meeting, holding small offline meetings can facilitate deeper relationship building tailored to individual needs.
Angel investors can gain a deeper understanding of entrepreneurs’ core values and business models, leading to more accurate investment decisions.
An angel investor’s success heavily depends on the trust relationship with the entrepreneur they invest in. As shown in the case of IVS2024 KYOTO, hybrid communication that combines online and offline will undoubtedly become the standard moving forward. However, effectively utilizing each form of communication is crucial to increasing your success rate.
When focusing on “time,” it can be divided into “productive time” and “non-productive time.” By leveraging the convenience of online communication to share information and conduct quick interactions, you can maximize the cost-effectiveness of your “productive time.” The time saved becomes “free time,” which can be used to explore new information, visit unknown places, or simply do what you love. Offline social gatherings, where business is not the focus, can sometimes yield serendipitous byproducts that lead to future opportunities.
It’s important to intentionally create value that goes beyond simple “efficiency or cost reduction” and to focus on building “genuine connections” that emerge from deeply established relationships and trust.
Toshi: “As an angel investor, leveraging the convenience of online communication while not neglecting face-to-face interactions offline is key to success. By regularly hosting small meetings or gatherings, you can create spaces for gaining genuine input, discovering new business opportunities, and increasing your chances of investment success!”
The Japan Angel Investor Association is recruiting “Angel Members” for angel investors and “Partner Members” for municipalities, companies, and organizations supporting startups.
Membership is free. Would you like to join us in supporting the growth of startups?
For more details, visit here.
