Ikuo Hiraishi

E107 In this episode of Fireside with a VC, we discuss scenario planning for China & Asia and the relationship with Silicon Valley. We explore future opportunities with Francis Bassolino, Managing Director of Alaris Consulting, who has been helping companies of all sizes enter, succeed in, and exit China over a span of 30+ years. Francis is also an adjunct professor at The University of Chicago Booth School of Business in Shanghai and Chicago. Having lived in Shanghai for over 21 years and in China since 1988, he brings extensive insights into the region. Watch the full episode on YouTube: https://lnkd.in/gdseyc2d. Find all episodes of Fireside with a VC on your favorite podcast platform: https://lnkd.in/gtzuxjJh. We delve into the history of what has happened and the opening of China up to today. We also look at different scenarios such as an invasion of Taiwan, a blockade of Taiwan, no invasion or blockade, China with no reforms, with reforms, and the potential for a return to high growth in China. We examine how these different scenarios will impact the greater Asia region and the West. Our discussion includes the relationship between China and Russia, particularly days before Russia invaded Ukraine when Chinese President Xi Jinping and Russian President Vladimir Putin announced their partnership has “no limits” and vowed to deepen cooperation on various fronts, including the Russia-Ukraine war. We talk about the bargain between the Chinese people happily giving up civil liberties for a prosperous life and 10% growth consistently over decades. We also cover the impact of recent oppressive COVID-19 lockdowns, the period of low growth, the lack of job opportunities for the youth, and the generation of young Chinese not getting married, having children, or working in post-Jack Ma China. Is the Chinese economy in a freefall now? Furthermore, we discuss the evolving relationship between Silicon Valley and China, what it might look like in the future, and different scenarios and opportunities for Western companies to grow revenues and lower costs with the Chinese partnership. Links and Resources: > Learn more about Francis Bassolino and Alaris Consulting at https://lnkd.in/gfa_zzcS. > Connect with Francis Bassolino: [email protected]. > Follow Andrew Romans on LinkedIn: linkedin.com/in/romans/. > Subscribe to our newsletter to get insights and favorite content from the VC startup ecosystem: subscribe.7bc.vc.

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An exciting milestone for Taiwan's Employment Gold Card program! 🌟 Today, I attended a special event at the Presidential Office Building where Taiwan's President Lai Ching-te announced that over 10,000 Employment Gold Cards have been approved! As a Gold Card holder, I'm excited to see it reach this historic achievement. Key takeaways from the event: >> Taiwan is successfully attracting top international talent >> The government is committed to creating a welcoming environment for professionals from around the world >> Gold Card holders are making significant contributions to Taiwan's growth and innovation It was inspiring to hear President Lai emphasize Taiwan's ongoing mission to foster a vibrant ecosystem for global expertise. As we look to the future, Taiwan is positioning itself as a hub for innovation and cross-cultural collaboration. I'm excited to see how this influx of diverse talent will continue to shape Taiwan's economic landscape. Have you considered applying for Taiwan's Employment Gold Card? Or if you're already a cardholder, what has your experience been like? Let's discuss this in the comments! #TaiwanGoldCard #InternationalTalent #Innovation #GlobalProfessionals

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Learn more about the IPO market in Taiwan!

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IPO in Taiwan - it's such a topic so under the radar. I did an info session with Taiwan Stock Exchange and Startup Island TAIWAN last week in Singapore. Probably the first time I feel a 'PMF' as many audience came ask for my presentation deck after the session. Perhaps because exit is a big issue now in this region. When we see large unicorns face hard time justifying their market cap, let along those waiting in line. Some suggested, perhaps it's all better for M&A in this region. Well, M&A valuation could be even lower than you'd expect. That doesn't mean IPO is impossible. You only need a right market to do so. Taiwan equity market is our treasure, allowing 2,200+ companies to enjoy a super liquid market (US$15B a day and 250-350% trading turnover) and high P/E multiple (average 22x as of FY23, highest in APAC). Among them, 60% are tech companies. Aa a tech animal, you wanna be in the right forest, so you can attract the investors that are tech-savvy and understand you. (That's why Taiwan equity market is the 'Asian Nasdaq for small-mid cap'.) Not a Taiwan company? No worries, the listing rules require zero Taiwan asset, revenues, offices, officers, nothing. Because Taiwan itself made its economic miracle by making business outside! Since 2009 the deregulation, there are 115 non-Taiwan companies listed in Taiwan, with an average P/E at 28x and 240% trading turnover, metrics on par with those Taiwanese companies at similar size. It means, the market doesn't treat it differently. In my article, I'm very honoured that Kelvin Wee, the CEO of PATEC Precision Kft. (Hungary), a Signapore-registered company, is willing to share why they despite having zero presence and relationship with Taiwan chose to list in Taiwan. Main reasons include: strong liquidity, post-IPO fundraising, talent, regulatory support, and low costs. If you are interested, can read my articles for more details and data. I would also love to pay you a visit if you're indeed thinking about your exit target market. Article link: https://lnkd.in/gvdnr5SQ

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The highly anticipated COMEUP 2024, a global startup festival organized by the Korea Startup Forum, has unveiled its impressive speaker lineup. Scheduled to take place at COEX in Gangnam, Seoul, from December 11 to 12, the event will serve as a platform for sharing insights on international expansion, deep tech, and Sustainable Innovation by Startup (SIS). The 'Future Talk' sessions will cater to diverse attendees, including pre-entrepreneurs, startup employees, and founders, offering tailored tracks for each group. The 'Tech Talk 15' track will showcase cutting-edge technologies and products from notable domestic and international tech companies. Keynote speakers include Qamar Aftab from Wa'ed Ventures (Saudi Aramco's CVC) and Sunghyun Park, CEO of Rebellions, who will discuss 'Innovation Beyond Borders.' Soojong Kim, CEO of INNOSPACE, a Korean spacetech startup, will deliver a keynote on 'Challenge to Space, Launch to the Future.' Expert panels will explore global expansion strategies, with representatives from Japan's 01Booster, Singapore's Meet Ventures, and KILSA Global sharing their experiences. Insights on deep tech, generative AI, and cybersecurity will also be featured, with speakers from NXN Labs, Art Director's Guild (USA), and SM Entertainment. The event will bring together leading corporations, CVCs, international startups, and support organizations, fostering collaboration and dialogue on innovation. Participants include Saudi Arabia's Monsha'at, UAE Ministry of Economy, Swiss Embassy, Indian Embassy, Austrian Commercial Section, and major companies like Hyundai Motor Company and Musinsa Partners. @comeup_seoul #comeup2024 #globalinnovation #startups #deeptech #sustainableinnovation

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Great tailwind for Japanese startups! Nikkei Newspaper reported the following: Overseas venture capital is on the rise in Japanese startups, with a notable surge in investment during the first half of 2024. In this period, overseas VC investment increased by an impressive 70% compared to the previous year. The shift of investment funds from China to Japan, driven by US-China tensions, coupled with government support for policies attracting overseas VCs, is creating a favorable environment for start-ups. In June alone, overseas VCs injected 22.5 billion yen into domestic startups, marking a 69% increase from the previous month. This amount represents approximately 2% of the total VC investment, indicating a significant contribution to the growth of the startup ecosystem. Notably, the growth rate of overseas VC funding surpassed that of the entire VC sector by a substantial margin, standing at 4%. #VentureCapital #Startups #Investment #JapaneseMarket #OverseasVC #BusinessGrowth

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Japan's 'lost generation' faces slow pay growth, lack of promotion TOKYO -- "The plight of Japan's "lost generation" -- mainly comprising people in their 40s or early 50s -- is persisting, as they struggle to keep pace with the pay growth and career advancement commonly seen in both older and younger age groups. This generation graduated from high school or college during a hiring "ice age" that lasted from the late 1990s into the 2000s, with many finding it tough to find stable employment after the bursting of a bubble economy inflated during the 1980s by soaring real estate and stock prices. While Japan's overall wage level has started to pick up, data shows that there are still noticeable disparities among different age groups. The country's inflation has remained above 2% for over two years amid upward pressure on prices around the world. According to a survey by the Ministry of Health, Labor and Welfare, total monthly cash earnings, or nominal wages, have continued to rise year-over-year since January 2022."

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Please vote for our company song in the contest! https://lnkd.in/gnxUGV2V In Japanese culture, there is a unique tradition called shaka (company songs), which are songs that represent the essence of a company. Back in the Showa era, many large Japanese corporations used to sing these songs within their organizations. This August, our company celebrated its 10th anniversary, and we created a unique Hip-Hop company song using AI to mark the occasion. I personally wrote and composed the lyrics, while AI was used extensively for the music, vocals, and video production. For those who closely follow our company, you might already know that we created this song as part of our 10th-anniversary celebrations. But then we thought—why not enter it into the company song contest hosted by the Nihon Keizai Shimbun? So, we decided to give it a shot! I believe it’s rare to find a company song themed around startups, so I’d especially like to ask those in the startup community to support us by voting. Please use the search bar in the link provided in the comments section to look up our song titled “次の向こうへ”! When you explore the other entries, you’ll see that our submission stands out as something entirely different—exactly as we intended! This project was powered by AI from start to finish. The track was created using the AI composition tool SOUNDRAW, and I took charge of writing and composing the lyrics. This project would not have been possible without the support of Taigo Kusunoki, CEO of SOUNDRAW. We also collaborated with Yoichi Aso (aka yoasoP), an artist who created the AI-generated video. A heartfelt thanks to Aso-san for taking time out of his busy schedule with the MBO at AlphaDrive to make this happen. This song embodies our company’s values, vision, and aspirations in a concise and creative way. We’d love for you to experience it for yourself. And of course, don’t forget to vote for us!

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Oops. Looks like Mr. Ishiba's call for a snap election backfired. The results are in. Of the 465 contested seats in the Lower House, the Ruling Parties (LDP + Komeito) got 215. The opposition parties got 235. 233 seats were needed for a majority so simply put, the Ruling Parties lost. IMO, Mr. Ishiba should have fully addressed the financial scandal which brought down his predecessor, Mr. Kishida, before triggering this election. Mr. Ishiba and LDP are now in a precarious position. That said, I believe the future of Japanese business and investment remains on an upward path, largely unaffected by political turnover. One could even argue that government leadership here may have less direct impact on business stability than in other regions. What do you think? https://lnkd.in/eurqx92t

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Temu and Shein Suspend Operations in Vietnam: Navigating Regulatory Challenges In recent news, popular budget-shopping platforms Temu and Shein have temporarily suspended their operations in Vietnam as they await regulatory approval to resume services. This development highlights the complexities of operating in emerging markets where compliance with local laws is paramount. Key Points: - Regulatory Compliance: The Vietnamese Ministry of Industry and Trade mandated the suspension after Temu, owned by PDD Holdings, failed to complete its business registration by the November 30 deadline. Hoang Ninh, deputy director of the Department of E-commerce and Digital Economy, confirmed that while Temu submitted its registration documents, it has not yet finalized the process. - Impact on Operations: Although Temu has assured customers that it is working to complete its registration, the platform has removed Vietnamese language options for local users. Meanwhile, Shein is facing similar challenges, underscoring the need for international e-commerce platforms to navigate local regulations effectively. - Government Concerns: The Vietnamese government is focused on ensuring that foreign e-commerce firms comply with local laws to protect domestic businesses and prevent issues such as counterfeit goods. Authorities have warned that failure to register could lead to blocking access to these platforms. Looking Forward As Temu and Shein work through these regulatory hurdles, their experiences serve as a crucial reminder for businesses looking to expand into new markets. Understanding and complying with local regulations is essential for sustainable growth and success. For consumers, this situation raises questions about the future availability of affordable shopping options. As we await updates on the resumption of services, it’s clear that the landscape of e-commerce in Vietnam is evolving rapidly. Let’s keep an eye on how this situation unfolds and what it means for the future of e-commerce in emerging markets! #Ecommerce #Vietnam #RegulatoryCompliance #Temu #Shein #BusinessExpansion #EmergingMarkets https://lnkd.in/enCT5Txf

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A team from Shandong University and Tongji University showcase SATO (Stable Text-to-Motion Framework) which represents a significant development in the Text-to-Motion (T2M) model arena. This initiative addresses the longstanding challenge of instability and inconsistency in motion predictions generated from semantically similar or identical text inputs. Traditional T2M models have faced difficulties in producing stable outputs, primarily due to unpredictable attention patterns within the text encoder module, which often resulted in inaccuracies in motion sequence predictions. SATO addresses these issues by integrating three specialized modules designed to ensure stable attention, stable prediction, and a balance between accuracy and robustness. This approach markedly improves the model's capability to generate consistent motion predictions, even when faced with minor textual variations, such as the use of synonyms.   The effectiveness of SATO has been confirmed through rigorous testing on a newly developed textual synonym perturbation dataset, where it demonstrated enhanced stability and accuracy over existing state-of-the-art models. This achievement has broad implications for several fields, including video games, the metaverse, and virtual/augmented reality environments. In these areas, the ability to generate motion data directly from textual descriptions can significantly improve user experience and interaction. By mitigating the unpredictability of model outputs, SATO facilitates more reliable and robust text-to-motion applications, establishing a new benchmark for future research and development within this sector. This progress not only broadens the scope of potential applications for text-to-motion technology but also establishes a new standard for future investigations in this dynamic field, promising substantial enhancements in the realism and responsiveness of digital environments.  Arxiv: https://lnkd.in/eADwmz3q

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More Startups in Japan Need to Exit by M&A There are two common exit strategies for startups: M&A and IPO. 2021 data shows that 80% of startup exits in Japan are by IPO, while in contrast 90% of U.S. startup exits are by M&A. The difference matters, because early IPO exits in Japan usually result in reduced external funding opportunities and halted growth. Potential future value creation dries up, with negative ripple effects throughout the ecosystem. However, M&A exits in Japan should create much more long-term global value. For this reason, Japan's Ministry of Economy, Trade and Industry launched an ambitious 5-year startup support plan in 2022. One key initiative of the plan is to create a funding and innovation ecosystem that supports M&A exits by startups. Hidetaka Kojima, co-founder and Director of Tokyo-based M&A firm @SHIFT Growth Capital, discusses the importance of strategic M&A exits for Japanese startups in a conversation with co-founder and CEO of decarbonization management company ASUENE Kohei Nishiwada. Here is a link to the conversation (in Japanese only): https://lnkd.in/g25Zs-us

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Guide to Startup Loans in Japan There are two main options for startup loans in Japan: the JFC (Japan Finance Corporation) Startup Loan Program and local government loan programs. Among these, the most accessible option is the JFC Startup Loan. Obtaining a loan from a regular bank in the early stages of a business is almost impossible. Banks do not provide loans without confidence in performance and repayment ability. To address this issue, the government established the JFC Startup Loan to support the growth of startups and small businesses. The JFC offers unsecured, non-collateral loans, making it accessible even for those with low credit. With 100% of JFC shares owned by the government, the support is reliable. However, JFC also conducts loan screening, and since COVID-19, the screening criteria have become even more stringent. To increase the chances of loan approval, it’s essential to prepare for the following: - Relevant Industry Experience and Track Record: Applicants should have experience in the intended industry. If not, it’s advisable to hire someone with relevant experience in the same field. - Credit Status: Past records of delinquencies, such as unpaid taxes, public utility bills, rent, or loans, are reviewed. Credit history is preserved for 5 to 10 years and is an important factor in the screening process. - Self-Financed Capital: Generally, 30% of the loan amount should be available in self-financed capital. For example, to borrow ¥10 million, at least ¥3 million should be in the account, and a consistent saving record for business funds is crucial. #JapanStartup #StartupLoans #JFCStartupLoan #JapanFinanceCorporation #SmallBusinessSupport #JapanBusiness #StartupFunding #BusinessLoans #EntrepreneurSupport #COVID19Loans #JapanSMEs #BusinessGrowth #CreditCheck #BusinessFunding #JapaneseLoans #EntrepreneurshipJapan #BusinessTips #LoanApproval #SelfFinanced

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A brave, frank and truthful academic - Peking University professor 李玲, in a July 10 interview with Phoenix TV, stated the following - “我们当年做医改方案的时候，8000亿就能实现全民免费医疗。现在9万亿了，你连毛都没摸到。太多人得了不该得的钱” The long-time critic of the rampant and systemic corruption in China’s 医保 system speaks out again. This time on a media platform with state ties and ahead of the Third Plenum. This is a topic I’ve touched on before with posts suggesting China's national health insurance program was on a path of financial insolvency. My comment was based on the data while working on a private enterprise solution to supplement 医保. *the link to the Weibo interview site has been taken down. A new link to the video is in the comment section below. #china #healthcare #reform

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I've been surprised by the misconceptions Chinese healthcare players have about the Korean market, even among industry veterans. It explains why, despite Korea being the third-largest importer of Chinese products overall, healthcare products only make up for 3% of that trade. In one of the recent interview articles, I unveiled three common misconceptions Chinese healthcare companies have about the Korean market and why these might indicate huge opportunities for them: 𝐌𝐲𝐭𝐡 1️⃣: Korea’s healthcare market is too small. 𝐓𝐫𝐮𝐭𝐡: The true size of the market cannot be gauged by land area, population, or local demand alone. Especially for healthcare products, it needs to take into accounts many factors, such as national economic power, insurance coverage, healthcare technology advancement level and even the healthcare awareness of citizens. For healthcare, Korea is usually top 4 in Asia and top 10 in the world. 𝐌𝐲𝐭𝐡 2️⃣: The Korean market is very exclusive and difficult to penetrate. 𝐓𝐫𝐮𝐭𝐡: While some may find it challenging to get their products certified in Korea due to its high standards, these standards are on par with other trusted regulated markets like Europe and the United States. In fact, many Chinese medical products have now developed to the point where they can fully compete in the mainstream markets. High standards mean higher credibility, which can ultimately benefit businesses in the long run. On the other hand, many countries have policies to protect their own products, especially in highly attractive markets. However, South Korea is one of the few countries in the world that treats domestic and imported products equally, both in terms of pricing and registration. 𝐌𝐲𝐭𝐡 3️⃣: Either target Europe or USA, or follow the trend and focus on Southeast Asia and the Middle East. Entering the Korean market is a waste of time and resources. 𝐓𝐫𝐮𝐭𝐡: For Chinese companies with innovative products and global aspiration that are not yet ready to compete head-to-head with European and American players in those advanced market, South Korea is a perfect middle-sized advanced market to test the waters. By establishing a foothold in Korea, Chinese companies can gain valuable experience and prove their commercial viability before entering larger markets such as Japan, Europe, and USA. Given the current low penetration of Chinese healthcare innovations in Korea, there are significant opportunities for competitive pricing and profit margins. Together with our Chinese partner, VC Beat (VBEF Healthcare), I’ve been actively working to change this perception and push for more cross-border cooperation. Read the full article here: https://lnkd.in/gi5ERyu8 What’s your view on this? This shot was taken at first livestream to nearly 1,000 Chinese viewers discussing this topic. #GoGlobal #China #Korea #Healthcare #Innovation

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Japan's startups struggle to grow past '2nd death valley' ""As Japan is in the process of change from the financial system featuring banks' supply of funds, investment in privately owned businesses by pension funds and others has just started," said Hideaki Miyajima, professor of commerce at Waseda University. The emerging practice will "take 20 years before taking hold," he said. There are signs of such a change as asset management companies are developing trusts for investment in both unlisted and listed companies. Yoshiharu Takeda, head of the product management department at Sumitomo Mitsui DS Asset Management, said, "We will fill the split between unlisted and listed companies." Startups welcome the recent policy trend, too. Hiroto Yamazaki, CEO of Umami United Japan engaging in the development of plant-based egg powder, said, "Fundraising has become easier thanks to the government's five-year plan to foster startups." Japan's mature listed companies have ample money as on-hand funds have grown to a record level. If the reallocation of surplus funds to younger startups takes hold, Japan's economic metabolism will make strides."

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Seoul’s Gangnam-gu District Set to Host Global Startup Event COMEUP 2024 on December 11 & 12 Seoul’s bustling Gangnam-gu district will be abuzz with innovation as Korea Startup Forum(KSF),  gears up to host COMEUP 2024 at COEX. With preparations officially underway, KSF convened the COMEUP 2024 Advisory Committee on May 8th to chart the course for this year’s event. Building on the success of COMEUP 2023, the upcoming festival aims to solidify its status as a premier […] The post Seoul’s Gangnam-gu District Set to Host Global Startup Event COMEUP 2024 on December 11 & 12 first appeared on KoreaTechDesk | Korean Startup and Technology News . The post Seoul’s Gangnam-gu District Set to Host Global Startup Event COMEUP 2024 on December 11 & 12 appeared first on KoreaTechDesk | Korean Startup and Technology News . #koreatech #Tech #koreastartup #KoreaTechnews #Koreastartupnews

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