Part 2 - Navigating Global Entrepreneurship: Insights and Strategies from Ms. Koiso
Part 2 - Navigating Global Entrepreneurship: Insights and Strategies from Ms. Koiso
This article will unravel Ms. Koiso a seasoned entrepreneur with experience in both Japan and America, shares her insights on global entrepreneurship. She discusses the importance of taking action, the challenges of navigating visa issues, and the value of building connections. Ms. Koiso emphasizes the need for practical experience and the role of persistence in overcoming obstacles. She also touches on the startup ecosystem in Japan and the necessity of creating more role models for aspiring entrepreneurs.
Notable content:
The Importance of Action: Ms. Koiso stresses that aspiring entrepreneurs should focus on taking action rather than over-planning. She shares her personal experience of moving to America and making connections by simply going and experiencing the market firsthand.
Visa Challenges and Advice: Ms. Koiso discusses the complexities of visa applications, particularly for entrepreneurs, and advises consulting with immigration lawyers to avoid potential issues, based on her own experiences with ESTA and O visas.
Building Connections: Ms. Koiso highlights how she leveraged pre-existing connections and networked extensively during her first trip to America, demonstrating the importance of having a clear goal and strategy for making meaningful business connections.
Revitalizing Japan's Startup Ecosystem: Ms. Koiso offers critical perspectives on Japan's startup scene, advocating for a more hands-on approach from policymakers and a shift towards creating role models and increasing female and minority representation in entrepreneurship.
—Welcome to RiSiN Podcast! We are starting the second half, Sumina-san. Once again, thank you for coming today.
Sumina: “Thank you.”
— In the previous video, we talked about your background and your current startup. We talked about why you started and I asked a lot of questions. If you haven't seen the first half of the video, please make sure to check it out. Today, we will focus on the keyword "global" and ask questions based on that. Sumina-san, thank you for taking your time.
Sumina: “Thank you too.”
— Currently you are already in America, challenging yourself, I think. But your approach was to first consider the market... to think of a service or business that would work in American market, before moving to America. I asked like that in the first half.
Sumina: “Yes, sure.”
— There are probably various approaches, for young entrepreneurs who want to challenge abroad, or businessmen. There are many different types. To challenge themselves abroad, what actions should they take first?
Sumina: “This is simple. It's very simple, just go.”
— Yeah. We won't know until we go. Thinking anything won’t help We need to see it with our own eyes, feel it. That’s the only way to find the answer. Going abroad is indeed simple and good.
Sumina: “Yes, once. For me, it was on the second or third trip to America that I started making connections with various people. I started getting more opportunities. But that wouldn't have happened without the first trip, I think. In the days of Sakamoto Ryoma, they traveled overseas by ship... Now, with current transportation, you can travel anywhere you want.”
— I see. So, for your first trip to America, which led to the second and third trips, how did you find people to meet, starting from scratch with no connections? How did you approach that?
Sumina: "Well, actually, the first time I really went to America in my life... I mean the first time I went by myself was around January .”
— I see.
Sumina: “At that time, I was running my own company, while also helping with sales and marketing for another VR startup. I was helping them a bit. And that company was attending CES a big event held every January in Las Vegas. It's a tech, or rather, an electronics exhibition. They didn't have enough salespeople, so they asked me to come help. So I went, and while everyone else from the team went back after the exhibition, I moved from Las Vegas to San Francisco...”
— I see.
Sumina: “and stayed there for a while. At that time, I had been asking a lot of people in advance, saying ”I'm going to America, please introduce something,” or ”tell me where I should go.” I asked a lot and tried to make connections while I was still in Japan.”
— I see. So, you used connections from the start...
Sumina: “Yes.”
— You asked people “I’m going to this place, do you know anyone there?” Things like that. While you were in Japan, you prepared a lot. That's what you did.
Sumina: “I prepared. And at CES, I handed out a lot of business cards. My own.”
— I see, I see. That's important too. Of course, buying a plane ticket and going without a plan is one way, but honestly, if you go completely without a plan, you might end up wondering why you even went. You'll end up thinking, why did I come here? So, even if it's not a tightly packed schedule, you don't need to go with a full plan, but at least, if you have a small purpose, it makes a big difference.
Sumina: “That's right. In my case, my goal wasn't to enjoy sightseeing, but rather to create new connections. Yeah, creating connections. That was my goal, so I kept it simple like that. And... well.”
— So, since you decided to challenge in America, Is your base now in America? I mean... in the Bay Area? Or are you going back and forth between Japan and America?
Sumina: “Yeah, well, to answer directly, I haven't fully moved to America yet. This is due to visa issues. For those who want to challenge themselves abroad, visa issues are unavoidable. This is really In my case, last year, I spent half of the year in America. But, I was going back and forth, so in a year, I spent months in America, months in Osaka, and about or months in Tokyo. That's how I did it. Actually, I'm temporarily in Japan due to some personal issues. I'm currently applying for a visa. I'd like to share a bit more of my opinion on this podcast, For example, for those who want to spend as much time abroad as possible, there are various situations like some people take student visa, but one thing I realized last year while being active was that many senior people and others around me gave me advice on what to do. They would say like ""You should do this,"" and you should consider it as an option, and accept it as one option. But For example, in Canada or London, there are various visas, but after the pandemic, situations can change drastically. For example, when governments change, visa policies change significantly.”
— Yes, they do.
Sumina: “Yeah. So it's definitely best to consult a lawyer about it.”
— Immigration lawyers, I think.
Sumina: “Yes, immigration lawyers. You should definitely ask them. What I often hear, and what I think is that, if you try to do it on your own, there are people who succeed, but you only hear about the success stories. But I've heard cases where people tried to get a business visa on their own and they were banned and then couldn't enter America for years. They had to go to another country. That’s very risky, so I think it's best to consult experts early on.”
— That's good insight. Visa issues are really important. When I was in the Philippines, I was fortunate to know people who helped me stay longer. But when I went to Malaysia, I had to ask many people, and consult experts, to find options for staying longer. There are various types of visas, and if you don't understand them well, you can misunderstand and end up getting into trouble. For example, you might get a visa, but it doesn't allow you to do business there, or to earn income. That's problematic. There are such rules. So you need to be careful about those things. You need to know the pros and cons, and the risks. That's important. When you decide to challenge yourself abroad.
Sumina: “Yes.”
— I see. Thank you. So, when you were in America for six months, were you on an ESTA? Or did you have a different type of visa? Or were you using a different type of visa?
Sumina: “In my case, I wouldn't recommend it, but I was on an ESTA. I pushed it to the limit. I mean I’m almost crossing the line. But... traveling to America on an ESTA now is a bit scary now. You might get noticed.”
— Especially if you travel frequently. America is pretty strict about that. ESTA allows a maximum stay of days, right?
Sumina: “Yes, 90 days maximum.”
— So you are almost going way too far.
Sumina: “Yeah.”
— You took a risk. Impressive.
Sumina: “But it's a bit scary now to go on an ESTA.”
— So this time, You talked you're working on the visa process, and you've also completed fundraising. So, next is the business... what was it? Entrepreneur visa...?
Sumina: “Yes. I'm applying for an O visa now. Honestly, I don't know if it will be approved.”
— So there are quite a few requirements... The standards are quite strict.
Sumina: “Yes, and also, when it comes to visas, the lawyer... the way they prepare documents, their strategies, and their success rates probably differ. So it's better to consult with multiple lawyers, maybe or . It's a good idea to ask a few. In my case, I... I've decided to go with this.”
— I see. Thank you. Well... The process itself takes time, and you never know when it will be approved.
Sumina: “Yes. I thought I would have it by now, but I still don't have it.”
— In America, it's pretty tricky. When challenging abroad, it's crucial to consider the ease of obtaining a visa. It's better to go with that in mind.
Sumina: “That's right. Though it might sound a bit pointless to say, all is well if ends well.”
— Exactly. If it ends well, then it doesn't matter which route you take. That's how you think. By the way, you're going back and forth between America and Japan, but weren't you worried about being a woman venturing into America? It's quite a challenge, and quite a hurdle. Weren't you worried? Any worries?
Sumina: “Worries? Well, if I had to say, there are two things one is the language barrier and money. As for safety, I kind of accept it to a certain extent like I just deal with it as it comes.”
— I see. Do you get used to it, the safety issues?
Sumina: “Yes, I get used to it.”
—You're tough. By the way, when I went to America in , in San Francisco, probably everyone imagines it as sunny and pleasant, with lots of greens and beaches, but downtown is quite dangerous. Some parts of the city are really unsafe. Downtown is scary.
Sumina: “Yes, it is. At that time, I was staying in a relatively safe area, but even then, I was scared to go out during the day. But now,”
— Yeah...
Sumina: “Last year, I stayed in a really unsafe area, in a nearby hostel. There were people doing drugs.”
— Your survival and adaptability are amazing. But that's probably one of your talents. I think an ordinary woman would be quite scared, but you probably don't get fazed easily. I don’t know... but
Sumina: “I guess... but among the female entrepreneurs I know, their parents are often opposed. I've heard such stories, but in my case, they've always let me do what I want, with the understanding that it's my responsibility. That's probably part of it.”
— So they've been quite hands-off?
Sumina: “Yes,”
— in a good way?
Sumina: “Yes”
—But, your parents probably worry a lot, but they don't show it. By the way, you talked you've completed fundraising, right? Did you raise funds before the product was ready? Or did you have a prototype ready? How did it work at that time?
Sumina: “In my case, I raised funds without a product. In the angel round? Angel round... but some VCs are also involved, so I'm not sure what to call it.”
— It’s tricky. Regarding the naming of the rounds... But it's not a seed round.
Sumina: “Yeah, it’s not.”
— It's either an angel or pre-seed round.
Sumina: “Yes, something like that.”
— I see. By the way, when you were raising funds, was the company already established in Japan? Or had you already set it up in America?
Sumina: “It was a gradual process, but by the time it was finalized, the company was established. However, when we started activities, the company was still in the process of being set up.”
— I see. So, if someone wants to take on a challenge in America, and probably raise funds... For challenging a startup, they need to raise funds...
Sumina: “Exactly.”
— If they want to start in America, should they create the company in Delaware from the beginning, or is it okay to do it later? I think it depends on how you approach it. but based on your experience, what do you think?
Sumina: “Personally, I'm not sure what others might say, but from my perspective, I think it’s best to delay things like setting up a company or raising funds. Initially, if you're employed and getting a salary, consider doing some trips to America while you're still working. while you’re going to America few times If you see traction, then you can set up a company and raise funds only if you need to. If things are running smoothly, You could skip rounds, and if you really need to scale up, you can only raise funds. It might sound less convincing because I did raise funds... Then, to minimize risks, indeed, The approach you mentioned is certainly one option. It is indeed a viable option. While still receiving your salary, you can develop your ideas and create prototypes. and then decide whether to quit if it seems promising. Then, if it seems promising, you can quit your job and establish the company. Or simultaneously start the company. and proceed with both together. We need to consider that approach now.”
— Yes. This is the ideal one among the various options, but not everyone can do this. I mean... Some people need to burn their bridges to succeed.
Sumina: “That's right.”
— Doing it halfway might not work... Most people might end up returning to Japan. So, some might need to quit their jobs, establish a new company, and secure funding. I think it depends on the person.
Sumina: “I see.”
— Thank you. So, In Japan now, with initiatives like the five-year startup plan, the government is pushing to increase the number of startups aiming to increase... unicorn startups from Japan. I mean increase the number of unicorn startups, and in America, they’re observing this trend, but how can the Japanese startup ecosystem be further revitalized, and to make everyone more eager to challenge overseas?
Sumina: “Well, this is... it depends on their role, but the action might differ. I think everyone should just go abroad first.”
— I see.
Sumina: “That includes bureaucrats, those who support startups, and those who start them. Everyone should just go to another country. and bureaucrats too... and the government officials too. And those who support startups. They should try starting their own business. It's not just for the startup people. Then they will understand what's lacking, how challenging it is, or maybe it's not so tough? They will realize it for themselves. I think, regarding the current policies in Japan, there's one thing I think could be improved, and that is, everyone is discussing issues in the conference room. but unless they visit the actual site or conduct investigations, nothing will change just by talking in the conference room. That's something I find very noticeable. and to the person who just says something that sounds plausible... they are just throwing money at them. I think they are just distributing money. For example, this might sound harsh, but in my opinion, the government commissions some companies, invests a lot of money, and runs various projects, but I sometimes wonder if the KPIs and KGIs are set correctly. Why do so many foreign accelerators come to Japan? Their travel expenses are covered by the government, right? The money is funded by the hard work of Japanese people, right? It might be a political issue, but when I asked why they come to Japan, they said, they proposed to other countries too, but the budget was not approved there.”
— I see.
Sumina: “because Japan is too lenient”
— That's why foreign accelerators come to Japan.
Sumina: “Yes. Korea and other countries are more stringent with their budgets, and they invest in what is necessary. Only Japan is loosening the purse strings and spending freely...”
— okay... I didn't know that. Indeed, the number of events inviting foreign VCs and prominent figures has increased, I felt that.
Sumina: “Yes. but they don't pay for it themselves.”
— Exactly.
Sumina: “So, all the costs are covered by the government budget.”
— That's right.
Sumina: “Otherwise, they wouldn't come all the way here for just a week. That's almost like a vacation... It's like a vacation funded by the government. Business trips are fine, but...”
— Yeah... I’m wondering if it’s really the right approach when I attend such events, I sometimes go for networking purposes, but not all of them, but
Sumina: “Of course, not all of them. but I do feel sometimes, that there might be a more fundamental approach.”
— There might be a better approach, and smarter ways to use the money. I honestly think so, thank you. Hearing such perspectives and stories, was enlightening. Another thing, for Japan's startup ecosystem to become more vibrant, I hope it becomes more vibrant. It would be great if it could. Also, for Japan's economy to improve, I think another important factor is, this is just my personal opinion, I hope society should enable women to be more active. Looking at various countries, it feels rare to see a country where women are not as visible. It feels quite rare. For example, in Southeast Asia, places like the Philippines, women are quite active, and it feels like men are less active. Maybe it's a trait of hot countries, I'm not sure. But women are very active there. They are quite prominent. I mean they are thriving. Of course, in places like America too, there are women in higher positions. So, I think Japan should make it easier for women to thrive, and like you, Sumina-san, I'm really thinking about how to increase female entrepreneurs. What do you think?
Sumina: “Well... it's not a simple issue where solving one thing solves everything. But I really feel it in various aspects. I really feel it. Personally, I've never really been conscious of my gender until now, I think there are people who are sensitive to it, including my friends and those around me. I don't know if it would solve the root issue, The one of two things I think are important is I think it's important not to think about solving everything within your own country. because people like me, probably won't fit well in classical, stereotypical organizations. I think people like me would be seen as arrogant and get knocked down. But, So, I think it's fine not to belong to such communities. People like that\ can go to another country, It's an option to choose not to belong to communities where gender is a conscious factor. I think you have some options. But to do that, you need to find and develop various abilities. I mean you need to improve your skills and abilities. I guess so. Another thing is the lack of role models, which makes it hard to visualize. I feel that. For example, some books are written about It was once unthinkable for Japanese athletes to run seconds or for someone like Ohtani to play in Major League Baseball. In basketball, we couldn’t think Japanese plays in global leagues. But once one person succeeded, others followed.”
— That's right. I think this applies to startups too. For example, in Japan, if more women IPO or sell their businesses, I think if it will increase the number of minority entrepreneurs. the number of people who challenges overseas will increase. This applies not only to women but also to LGBTQ people. Yes, role models are definitely important. The reason why I started this podcast. is because I think the stories of people who are already challenging themselves overseas are very helpful. So I decided to focus on them. If I can deliver this as information to everyone, It possibly become one useful piece of information. If this podcast can be a catalyst for people to challenge themselves overseas, That would be wonderful. More than anything, if the people who are already challenging themselves overseas come together and collaborate, I believe that role models will naturally emerge. So the importance of creating role models, the number of.. unicorn... I mean... the number of unicorn startups in Japan is still quite low. There are more in Singapore.
Sumina: “Is that so?”
— "I think Japan is at the bottom in rank..."
Sumina: “Yes, well, I'm not in a position to say this authoritatively, but When I think about it, I really think role models are necessary. To increase the number of role models, we need to increase the number of challenges. Unless we increase the number of challenges, it's hard to create role models. It's like a chicken and egg situation. But there are very few people challenging themselves, not just entrepreneurs, female entrepreneurs, It's not just entrepreneurs, but also investors. What should I say, there are still few Japanese investors who are successful overseas. There are still few Japanese investors. Maybe they are just not in the spotlight, but I still think there are few. So we need to create more role models overall. If we do that, I think Japan's startup ecosystem will become more vibrant, and if more successful startups emerge, and if this cycle continues, more and more people will see entrepreneurship as a natural choice. I think this will do like that. One of the difficult things about Japan is, as you mentioned earlier, the pressure to conform. Because of the pressure to conform, people may not want to follow the same path, but because of the pressure to conform, they end up being swept up in the wave. they find themselves doing things they don’t really want to do, they become depressed, for example. So working for a company is not the only option, starting a business is also one of the choices. It should be seen as a natural option. Starting a business is of course, just one way... one method. So first, if everyone could think of it as normal, that alone would make Japan a better place, I think. I agree. There’s one thing I’d like to share, before I forget. Before I went to America, I thought all Americans were ambitious and strong-willed, but I realized that wasn't the case. There are very meticulous Americans, and some people who want to start a business but don't know how. So, Japanese people are often raised to value humility, but when you go to America or some other countries, You might realize you’ve underestimated yourself, or that you’ve thought too highly of people overseas, but they are not actually on such a higher level. You realize that only by taking action.”
— Sure, I agree with that. I think so too. In Japan, generally speaking, I think Japanese people are very capable. They're diligent and... How can I say... They are committed and not careless.
Sumina: “That's right. Just thinking about that, it's definitely Even though people worry about their English ability, But it's not like they are lacking in ability.”
— That's right.
Sumina: “Of course, there are also genius like people, if you go out into the world... but still, That's definitely true. It's really something you notice only if you go out. We need to go out more. And... the trust our ancestors built, is all reflected in our passports, so if we don't fully utilize it, it's a huge waste. So really, everyone should make more use of it, get passports.”
— I heard the ownership rate is quite low. It's only about a few %.
Sumina: “That's right. So it's quite surprising, isn't it? So, that's also really a waste, I think. Well…”
— Thank you. So, what are your future plans, Sumina-san? Of course, you are based in Japan now due to private matters, but what about the future?
Sumina: “Well, for me, there's a quantitative and qualitative aspect to it, and qualitatively speaking first, there are two things I want to devote my life to, one is to challenge the world, and the other is to contribute to the global economy and future generations, and make a positive impact on the world. For that, I've chosen to challenge myself in America. and quantitatively... Quantitatively speaking, well... in the future, I want to support those who will challenge themselves in the future, and I want to be a role model for them, Yeah... Right now, I'm raising funds through equity finance, taking money from investors, and running my business. I need to see it through to the end properly. However, when I reach my s or s, I want to be an active business leader and entrepreneur, and also focus on investing in and educating those who are going to take on challenges in the future. I want to put a lot of effort into it. That's what I think. and... That’s it.”
— Thank you. That's wonderful. Really, I'm cheering for you. I hope you become a role model among female entrepreneurs.
Sumina: “I’ll try my best.”
— Great. So, probably some people watching this podcast might want to hear more or send a DM or ask something. There might be people like that. Where is the best place to approach you?
Sumina: “Well, the most casual way is probably on Twitter, I think. I do get quite a few messages, so I may not be able to reply to all of them, but...”
— Thank you very much. Thank you for watching RiSiN Podcast If you know anyone interested in going abroad, or taking on challenges abroad, please share this podcast. You can listen to it on Spotify, Apple, and Google Podcast, so please share it. We would appreciate it if you could follow us too, it motivates us. See you in the next episode. Thank you for watching. Thank you, Sumina-san!
Sumina: “Thank you very much.”