2024.6.29
Event Report
Our association is dedicated to enhancing Japan’s angel investment environment and supporting the growth of startups. We regularly share various information related to angel investment, including activity reports, the latest news, and pitch event reports, on a monthly basis.
Our Executive Director, Toshiyuki Yamamoto, was invited to speak at the 2024 lecture organized by the Nagoya Chamber of Commerce and Industry’s “Wakashachi-kai”.
Wakashachi-kai is one of the largest cross-industry exchange organizations in Japan, bringing together young entrepreneurs from the Nagoya and Tokai regions. The annual theme for 2024 is “Pioneering the Way.”
“For a Better Future for Japan, Cutting Off Retreats and Pioneering Your Path” Here is a part of Yamamoto’s speech, explaining why he is working to increase the number of “angel investors.”
As a child, I was filled with an unfounded confidence, believing I was a genius because of my mother’s magical words, “You are a capable child.” When my savings for a radio-controlled car were extorted by a middle school student, I started earning 30,000 yen a month through side jobs.
Though I attended a prestigious private school in Osaka, I became engrossed in computers and the internet, eventually becoming a high school entrepreneur with monthly sales of 200,000 yen. However, my classmates began to label me a “criminal.”
In college, I followed a Taiwanese woman I liked to Los Angeles, only to discover she was dating three people, leaving me devastated. During the dot-com bubble of 2000, I founded “EC Studio,” offering services to increase homepage sales.
Upon returning to Japan, I struggled with my father’s desire for me to take over the family business, but I dedicated all my spare time to my own business, incorporating it. Despite business success, three of the five founding members left. To learn more about management, I met 1,000 CEOs in a year, eventually creating Japan’s number one company in employee satisfaction.
This period marked a major turning point, as I became determined to “make Japanese people shine more and improve Japan through IT.” I decided to create only things that would be globally competitive, not just profitable.
While phones and emails were still dominant, I anticipated a shift and released the business chat tool “Chatwork” with the goal of eliminating email. To expand this globally, I established ChatWork Inc. in Silicon Valley in 2012.
I invested my own money to refine the business model but realized the emergence of ‘Slack’ and the release of Microsoft ‘Teams.’ Recognizing that paid Chatwork couldn’t compete with free Teams, I shifted from aiming for a Nasdaq listing to a domestic listing in Japan, successfully listing on TSE Mothers with a market capitalization exceeding 55 billion yen.
Although I was eager to “conquer the world,” I abandoned my ego and ended my American challenge.
Returning to Japan, I pondered my next steps. I didn’t want to return to my previous output-driven life. I resigned as CEO, transferred 70% of my shares to my brother, the CTO, for 1 yen, and, having divorced and given up all assets including my house and car, I reset my life with nothing.
Looking back, this period was incredibly tough, but I believed it was better than continuing a life of compromise. People grow significantly through painful transformations.
Thus began the “second chapter” of my life, focusing on what I could do to improve Japan.
When I led a regional revitalization project to success, the COVID-19 pandemic struck, preventing face-to-face meetings and leaving startups unable to raise funds. Knowing the significant differences between managing SMEs and startups, I was confident that I could blend the best aspects of both.
This led to the launch of Japan’s and the world’s first online platform, ‘Power Angels,’ where veteran entrepreneurs become angel investors to discover and nurture new entrepreneurs.
I define angel investment as not just providing money, but “joining young entrepreneurs on their adventurous journey to change the world.”
As we promoted increasing powerful angel investors, we identified industry-specific challenges, such as investment tax rules and guidelines.
Japan has many outdated rules and delayed implementations of norms that are standard abroad. To advance new businesses based on “rule revisions,” we established our association.
Examples include the vehicle ‘LUUP,’ developed based on expected revisions to the Road Traffic Act, and ‘FUNDINNO,’ realized through legal changes in equity crowdfunding.
While there is a restriction that angel investors’ contributions must be “less than half of the total fund amount,” this is a major obstacle for angel investors, so we approached the Financial Services Agency for legal revisions. As a result, it was decided to implement this within about three months.
Fukuoka Prefecture and Fukuoka City were designated as special zones for startup finance and asset management, exempting them from the restriction. (Hokkaido/Sapporo, Tokyo, and Osaka/Osaka City are also designated as special zones)
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.
