The ICT Startup League goes beyond the simple framework of entrepreneurial support to provide a platform for competition and co-creation, aiming to produce world-class startups from Japan, regardless of age, gender, region, or background. Through "oshi-katsu" (fan-like) support, an accompanying community, and the intersection of diverse talent from regional and international areas, it continues to take on the challenge of changing society from a global perspective.

As a participating member of the ICT Startup League steering committee, Director of the CIC Institute, Vice Representative Director of the Startup Ecosystem Association, and Specially Appointed Professor at the Tokyo University of Science, Mr. Nagura is constantly observing the front lines where Japanese startups are "truly competing on the global stage," interacting daily with entrepreneurs, investors, and researchers from around the world.

Why should Japanese startups aim for the global market now? What kind of "place" gives aspiring individuals the push they need?

We asked Mr. Nagura about his own foundational experiences and struggles, as well as the support from the ICT Startup League and the importance of having fans for global expansion.

■ Profile

Masaru Nagura
Director, CIC Institute
Vice President, Startup Ecosystem Association
Specially Appointed Professor, Tokyo University of Science

After obtaining his Ph.D. in Nuclear Fusion Engineering, he joined the Ministry of Education, Culture, Sports, Science and Technology (MEXT), where he was in charge of university-launched startup policy. After studying abroad in the System Design and Management Program at the Massachusetts Institute of Technology, he worked in management consulting and venture capital before participating in the launch of CIC Tokyo, one of Japan's largest innovation centers. He is currently responsible for CIC's startup support programs and ecosystem-building projects. In 2022, he co-founded the Startup Ecosystem Association, where he currently serves as Vice President. He also serves as a Specially Appointed Professor at the Tokyo University of Science.

Mr. Nagura, you see a wide variety of startups on a regular basis. Could you start by telling us about the elements necessary for Japanese entrepreneurs and startups to succeed on a global scale?

Nagura: Japan's strengths are its high level of technology and its geopolitical advantage of being close to the growing Asian market. In addition, Japan is politically stable and a great place to live. I often hear from foreign entrepreneurs and investors that "Japan is a great country." Asia, in particular, is a market where startups have room to grow, as it is projected to account for 40% of the world economy in the future, yet startups have not yet played a sufficient role in the economy. Japan has great potential within this context.
Furthermore, Japan has a solid foundation for academic research and technological development. Until the 2000s, Japanese research institutions were frontrunners in many fields. Even now, there are many top-level researchers, and there is significant potential for startups based on R&D. With added business support, even more promising startups should emerge.

On the other hand, how do you see the challenges facing Japanese startups?

Nagura: There are three major challenges. First, the amount of capital supply is overwhelmingly small. Some statistics show it's between 1/50th and 1/100th that of the United States. The amount per seed investment is also said to be an order of magnitude different. There's also a severe lack of investment in the growth stage. While there are signs of change with the establishment of public-private funds and government startup support measures, fundamental structural issues remain.
Next is the issue of low talent mobility. The Japanese labor market makes it difficult to change jobs, there's a strong preference for large corporations, and few people take the plunge into startups. Hiring costs are also high; when I mention that recruitment agency fees are 30-60% of one's annual salary, startup professionals from other countries, where fees are around 20-25%, are astonished. From an overseas perspective, Japan is a country where it is incomprehensibly difficult for startups to hire talent.
Furthermore, there are insufficient channels and foundations for overseas expansion. Overseas, it's natural for a startup with a new business to aim for a larger market, which means the global market. If they don't go global, they are told they are a small or medium-sized enterprise, as significant growth cannot be expected. However, not many Japanese startups aim for the global market from their inception, and not many Japanese investors or startup supporters have a deep understanding of foreign markets. This creates a situation where the resources needed for overseas expansion are difficult to obtain within Japan.
This is where I believe the ICT Startup League can play a role. By producing startups from the league that achieve success globally and have major exits (like IPOs or M&A), I hope we can revitalize the risk money market. By creating such growth stories, we can increase investment in VCs and change the tide so that more startups aim for the global stage.
I believe this league has the foundation to create momentum for startups to have a global perspective from the very beginning, to enter overseas markets, and to raise funds from foreign investors.

When a Japanese startup decides to expand globally, what becomes necessary?

Nagura: To expand globally, it's crucial to have a product that actually sells overseas, the ability to pitch and negotiate in English, and a diverse management team. Many successful startups in the U.S. include immigrants and people from diverse backgrounds. There's even data showing that racially diverse teams raise more funding.
The Japanese population is only about 1.5% of the world's population, so if you start building a team with only Japanese people, you're failing to approach about 98% of the world's talent. Diversity is not just about understanding the market; it's directly linked to improving corporate performance. When diverse backgrounds and different values mix, unexpected discoveries and innovations are born. Japanese education and culture can unconsciously reinforce homogeneity, and we need to make a conscious effort to change that.

Considering these challenges and the importance of global expansion, what do you find appealing about the ICT Startup League?

Nagura: The ICT Startup League's major feature is that it's not just about funding and screening; it allows startups to leverage practical networks and expert knowledge. The "oshi" (support/fandom) system is particularly unique. It's a mechanism where startups that the judges and steering committee members strongly endorse are more likely to be selected. Innovative businesses are often not understood by many at first. That's why it's so important for someone to be genuinely passionate about them. Since ICT can be applied to diverse fields like medicine, energy, entertainment, and agriculture, it's a feature that experts from each field can cheer on what they find interesting from their own perspective.
The support from the ICT Startup League goes beyond mere funding and advice. For example, through the network of the league's steering committee and experts, opportunities arise to connect directly with overseas entrepreneurs and investors, and chance encounters within the league's activities often lead to new innovations.
Another major appeal is the power of its official platform for communication, such as through ICT Startup League events and its track record of being selected by the Ministry of Internal Affairs and Communications. With this kind of official backing, startups can gain social credibility more easily, which helps them advance to the next stage of growth. The league's support isn't just about "passing a screening"; it's a system designed to genuinely back a business's growth and global expansion.

The "oshi" (support/fandom) system is great. Is there anything else?

Nagura: I think a major attraction is the ability to grow a fanbase by fully utilizing publicity through media and events. In the league, you can leverage the networks of the steering committee and experts, meet various people, and get feedback. Fundraising and R&D are important, but by building a fanbase, you open up opportunities for the next round of funding, talent, and other chances.

"Fans" makes it sound like sports.

Nagura: Yes, I believe there's a very high similarity to sports. Building a fanbase isn't just about increasing the number of supporters. As the number of fans grows and they talk about the startup they support in their daily lives, the number of people with a positive impression of that startup increases automatically. For example, if you go into a business meeting and the person you're meeting happens to know about your startup and has heard good things, the chances of the meeting going well increase just from that. In sports, during a tough time, a fan's encouragement like, "It's okay, you can do it," can motivate an athlete to try again. The same goes for startups, which often face difficult struggles. I think this human element is a major driving force that supports the challenge.
Moreover, an increased fanbase not only expands long-term opportunities for fundraising, talent acquisition, and business, but it also enhances the company's brand and credibility. Someone who becomes a fan might join the company six months or a year later, or it could lead to a major contract or funding. Building a fanbase is an essential element not just for immediate results, but for long-term growth as well.
As a fan myself, for the startups I decide to "oshi" (support), I am committed to providing my full support by leveraging my global network and professional expertise.

▲ He also speaks at events both in Japan and internationally, offering various proposals.