Startup Girls.

A 2019 Japanese language film.

Our founder, Casey Wahl, produced this movie.

A rambunctious youthful serial entrepreneur teaming up with an OL to create the company of their dreams.

I asked why he made this movie, he told me in Japan, the word “startup” has a negative connotation.

He wanted to change that.

So do Kenny and Satoshi, Co-founders and Co-CEOs of Launchstarz.

LaunchStarz is helping Japanese startups enter the US market.

This is why when I had the chance to interview them, I asked them about the differences between the Japanese and USA startup landscape.

Here are the top 5 differences they mentioned:

1. Maturity of the Ecosystem

The American startup ecosystem is widely regarded as more mature and structured than Japan’s. This maturity stems from years of organized networking events, pitch sessions, and venture capital (VC) funding practices that have fostered growth and success in the startup community.

In contrast, the Japanese startup scene is still developing.

Although there has been significant progress, such as events like SushiTech and more networking opportunities in English, the ecosystem is not yet as streamlined as its American counterpart.

Japanese founders are still working on refining their pitches and understanding how to make the most of these events.

2. Networking and Pitching

In the US, networking events are highly focused. Participants typically come prepared with a clear objective and actionable goals, which leads to more productive interactions.

This targeted approach enables faster connections with the right people, whether investors, collaborators, or customers.

In Japan, while networking events are growing in popularity, they often lack the sharp focus seen in America.

Participants may exchange business cards or connect on LinkedIn, but the follow-up steps are not always as clear.

There is a tendency to approach networking as a practice rather than as an opportunity for a concrete call to action.

3. Venture Capital Differences

Venture capital in the US is robust, with many VCs being former entrepreneurs themselves.

This firsthand experience gives American VCs a unique understanding of the challenges startups face and the risks involved.

As a result, they are more inclined to take risks and back innovative ideas that could disrupt industries.

Japanese venture capital, on the other hand, is often more conservative.

Many Japanese VCs come from corporate backgrounds and are hesitant to take risks.

This cautious approach can limit the type of innovation that gets funded.

Some Japanese entrepreneurs even liken corporate VCs to traditional banks, where the priority is stability rather than bold, high-risk ventures.

4. Preparation and Expectations

A significant challenge for Japanese startups entering the US market is understanding the level of preparation required.

The LaunchStarz team mentioned that many Japanese founders are eager to meet high-profile American VCs like Kleiner Perkins and a16z, but they often underestimate the importance of groundwork, such as thorough market research and building a strong reputation in the industry.

In the US, before even considering a VC introduction, startups are expected to have done extensive homework—market research, financial projections, product-market fit testing, and more.

This due diligence demonstrates credibility and a deep understanding of the industry, which is essential for gaining trust and securing funding.

5. Cultural Expectations and Adaptation

Another key difference is how entrepreneurs from each country approach business expansion. Japanese startups may not always grasp the cultural and market differences between Japan and the US.

For example, they may want to jump directly into pitching their business without taking the time to adjust their strategy for an American audience or to understand the US business landscape.

LaunchStarz emphasizes the importance of helping Japanese entrepreneurs manage their expectations. It’s critical for them to recognize that success in America requires a different set of skills, expectations, and preparation than what they might be used to in Japan.

Conclusion

The US and Japanese startup ecosystems offer unique challenges and opportunities.

The US boasts a more mature, risk-tolerant environment, with experienced VCs and focused networking events.

Japan, while growing, is still in earlier stages of development, with a more conservative venture capital culture and less clear-cut networking processes.

For Japanese startups looking to succeed in the US, thorough preparation, adaptability, and a strong understanding of market dynamics are essential.

As the landscape in Japan continues to evolve, we may see more alignment between the two ecosystems, but for now, understanding these contrasts is key to navigating both worlds.

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