500 Startups has been one of the driving forces behind the utter disruption of how seed funding is done.  That shift is one of the reasons we have seen such large and diverse startup ecosystems emerging around the world.  Japan, however, often changes more slowly than other nations.

Today we sit down and talk with James Riney, the new head of 500 Startups Japan, about why Japanese venture capitalists have been so slow to change, and exactly what James and 500 Startups plans on doing about it.

Things are already changing for the better in Japan -- at least as far as startups are concerned -- but if Japan's traditional venture capitalists don't change their ways, they are going to find themselves locked out of the most important deals. Seed stage investment is increasingly a sellers market, where quality startups pick between competing investment firms. It's a new dynamic that many VCs here are struggling with.

We talk about the most important things a VC can offer its portfolio companies, and I'll leave it to you to decide if Japanese investors are ready for it.

It's a great show, and I think you'll enjoy it.

Show Notes for Startups

A narrow escape from investment banking
The story of Storys.jp
How to breakup with a co-founder
The problem with advice from Japanese VCs
How empathy can increase portfolio returns
How 500 Startups plans to boost M&A in Japan
How IPO became Japan's Series B round
Which Japanese companies are ready to go gloabl
The single biggest mistake Japanese companies make entering the US market

Links from the Founder

500 Startups Japan
500 Startups (The Mother Ship)
Follow James on twitter @james_riney
Friend him on Facebook
James' Blog and deepest thoughts
500 Startups returns to Japan with $30M fund
Why Launch 500 Startups Japan? Timing, Opportunity, and Impact
Corporate Venture Capital Is King In Japan

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Transcript from Japan
Welcome to Disrupting Japan. Straight talk from Japan's most successful entrepreneurs.

I am Tim Romero and thanks for listening. It’s safe to say that almost all of Disrupting Japan’s listeners know about 500 Startups. It’s also safe to say that very soon you will be hearing a great deal from James Riney as well. Now, James is the head of the fledgling 500 Startups Japan and as some optimistic, but very well founded ideas about how both Japanese startups and Japan in general is going to change in the next few years. We talk about his narrow escape from a life in investment banking, to his startup and breakup with his cofounder, to finding himself at the helm of 500 Startups Japan.

We have a pretty frank discussion about the state venture capital in Japan today and it’s not pretty. But, we also talk about how many of these problems are starting to be resolved and how James and 500 Startups plan on disrupting things here in Japan. We talk about how to increase M&A activities in Japan, why Japanese VCs are starting to lose out on the best deals, and why they are going to continue to lose out until something changes. Also, what Western VCs secret weapon really is and I promise, it’s not what you think.

I don’t want to spoil any of the surprise. It’s best if you hear it from James personally. So let’s get right to the interview.

 

[INTERVIEW]

Tim: I am sitting here with James Riney,