A business accelerator helps early-stage and startup businesses grow, providing them with support and guidance. As an example, let’s take a look at U.S-based AlchemistX, the government and corporate services division of the Alchemist Accelerator, a venture-backed initiative focused on accelerating the development of seed-stage ventures.
AlchemistX collaborated with JETRO to launch Global Startup Acceleration Program (GSAP) and is supporting over 30 startups (as of Dec 2023). Besides specializing in early stage enterprise sector startup support and investment, as well as rated the #1 accelerator in enterprise sector, AlchemistX conducts programs to help startup founders gain market understanding of the U.S.
GSAP offers courses aimed at developing market entry strategies for overseas expansion, gaining market insight, networking, developing sales channels, business alliances, as well as fundraising. There are also workshops, discussions, presentations, mentoring by experts and introductions to potential partners, including investors also provided.
This time, we talked with Laurent Rains, Director of Product Management at AlchemistX, who has extensive experience in guiding Japanese startup founders through their early-stage journeys, focusing on US market entry and pitch design. His hands-on approach is personalized and deeply rooted in his passion for bringing innovative technology to market. AlchemistX has two programs in GSAP – BtoB Market Discovery and BtoB Commercial Traction.
In the Market Discovery Program, which takes place in Tokyo, the startup founders learn all sorts of skills, including delivering an impactful pitch to drilling down customer discovery strategies. These startups are looking to expand overseas in the future.
For startups ready for overseas expansion, the Commercial Traction program targets PoC verification, gaining traction, in-depth customer discovery, expanding sales channels and establishing a connection with cooperating companies. In September, twelve innovative startups started their 24-week intensive journey to California to learn about expanding their businesses into the US market.
As an additional support program, on behalf of AlchemistX, Laurent also accompanied four startups selected from Central Japan to the International Manufacturing Technology Show (IMTS) 2024 in Chicago, a key global showcase of cutting-edge manufacturing automation technologies. The startups included MonoRevo, a cloud application specialized for the manufacturing industry, HACHI X, which uses AI and robotics to support automation and save labor, Corpy, an AI startup developing and implementing AI solutions for sectors where reliability and accuracy are paramount to human lives and finally, Fainzy Technologies which is concentrating on transforming last-mile delivery, one robot at a time, focusing on robotic engineering.
These four startups from Central Japan had an incredible opportunity to visit IMTS 2024 with Laurent and explore cutting-edge manufacturing technologies, exchange ideas, and strengthen their global business strategies, while pushing the boundaries of innovation.
Laurent’s Observations about Startups in Central Japan – ‘An Unparalleled Opportunity’
“There is an unparalleled opportunity in Central Japan thanks to the proximity and access startups have to established manufacturing companies, where they are able to conduct in-depth PoCs and really test out their solutions on state-of-the-art manufacturing lines,” he said. Aichi Prefecture is in Central Japan, where the highest standard is being set. He added, “Japanese startups in Central Japan have access to this and they have the customers there to gain initial traction and to start understanding problems they face. This is an unparalleled opportunity.”
“There is really a concentration of high-tech manufacturing in Central Japan – outside of Taiwan or mainland China, there is simply no other place that offers the same concentration of high-tech manufacturing,” Laurent stressed.
He has tremendous enthusiasm for Central Japan, but there are some challenges to overcome.
“The biggest danger to Japanese startups is staying in the theory zone. Often a close relationship forms between a startup and an enterprise, where the startup comes up with a good idea, and the enterprise makes a PoC agreement that turns into a 2-year consulting agreement.” He added, “While engagements with large corporations can be very good in terms of credibility, it is important for the startup to create a strong product that can be scaled out in order to drive expansion.”
Laurent is very excited about STATION Ai, which recently opened in Nagoya and is Japan’s largest open innovation hub. Having a place to work and a community of people is incredibility important. “Being an entrepreneur still goes against the expectations of society, but having a community like this needs to be built and give the opportunity for others to gain inspiration from each other and that is what STATION Ai offers, so I am really looking forward to it expanding further.”
What is the mission for the collaboration with Central Japan Startup Ecosystem?
“We are trying to identify great startups. Alchemist has a 10 million dollar fund based in Japan that we invest into Japanese startups. We believe the Central Japan Startup Ecosystem has startups that can leverage the best of Japanese cultural qualities for international and global success.”
Opportunities ahead
When looking at the areas and issues Japan has been dealing with – these are issues that the U.S will have to deal with very soon. “An aging population is an example. Japan is already experiencing this along with a lack of human resources, so it is far ahead in automation, AI and computer vision, and we are seeing things that are strong in terms of manufacturing – this is where Central Japan has an opportunity,” he said. There is a huge opportunity for Japan as a whole to look at the U.S’ needs for reshoring to deal with its supply chain vulnerabilities, labor costs, as well as geopolitical tensions, such as those with China.
