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Becoming the World's No. 1 Cybersecurity Software Company—Operating across Japan, Israel, and the US—[2025 ICT Startup League Member Interview: AironWorks Inc.]
Sadaaki Terada, CEO of AironWorks Inc., was born in Kobe, Hyogo Prefecture. Having experienced the Great Hanshin-Awaji Earthquake as an elementary school student and witnessing how local entrepreneurs and business leaders engaged in recovery support, he decided that he would one day become an entrepreneur who brings innovation to the world.
After working for a general corporation for one year, he launched a startup in Israel, a nation advanced in the startup ecosystem. Seven years later, he established a company specializing in cybersecurity in Japan. Next year, he plans to launch his third company in San Francisco, USA, steadily advancing towards his goal of becoming the world's number one cybersecurity software company.
AironWorks Service ImagePainfully Realizing Japan's Declining Presence While Studying Abroad
What did you experience during the Great Hanshin-Awaji Earthquake?
Terada: Fortunately, my family and relatives, including myself, were safe. However, I remember being severely shocked by seeing the familiar cityscape turned into a burnt-out wasteland and the collapsed Hanshin Expressway. Under such circumstances, local Kansai companies like ASICS and Nissin Foods dedicated themselves to recovery support. From then on, I began reading autobiographies of founders like Kihachiro Onitsuka and Momofuku Ando, and I became very interested in the process of how Japan grew into a world-renowned economic power after the war. Also, even as an elementary school student, I vividly remember Bill Gates of Microsoft being incredibly active at the time, and I thought, "I want to do work that transforms society through business, too."
Why did you choose to go to Osaka University and Kyoto University Graduate School? What did you want to acquire to achieve your goal of starting a business?
Terada: I thought that if I was going to start a business, I should be knowledgeable about economics and management, so I entered the Faculty of Economics. Looking back now, with the growth of the IT and software industries, choosing to study computer science might have been an option. Actually, after studying in the Faculty of Economics, I felt that four years was a bit insufficient. I wanted to learn management more broadly and systematically through classroom learning in organizational theory, marketing, and finance, combined with practice including internships, so I went to graduate school. During my graduate studies, I was able to experience things like setting up a branch office for a venture company. Originally, I planned to work for a company to gain experience before starting my own business, so I joined Benesse Corporation after completing graduate school.
What kind of experience were you able to gain by working at a corporation?
Terada: I belonged to the Digital Marketing Department, where I was in charge of marketing for toddler materials and also concurrently worked on new business projects. I was allowed to work with considerable density, such as launching a business for which I drafted the plan and secured the budget, and going on business trips to the US for joint venture negotiations with Silicon Valley companies. Initially, I intended to work there for about three years, but the corporate culture was very free, allowing me to work with autonomy. Since I was able to accomplish what I had initially targeted in a short period, I left the company in about a year.
After that, you moved to Israel alone in 2014. Why did you decide to start a business overseas before doing so in Japan?
Terada: When I studied abroad at a business school in Turkey for half a year during my final year of graduate school, I painfully realized the decline of Japan's international presence. I felt a sense of crisis, or rather, impatience. I thought that if I was going to start a business, I wanted to create a company that could win globally, but no such companies had emerged from Japan in the software/IT sector. In that case, I thought I should take on the challenge in a foreign country where the startup ecosystem is mature. However, from my experience at Benesse, I felt that although there are many Japanese people in Silicon Valley, it would be difficult for a foreigner who isn't part of the inner circle to compete there suddenly.
Is that why you chose Israel, the "Holy Land of Startups"?
Terada: Eleven years ago in Japan, the word "startup" itself wasn't common; it was still the era of "venture companies," and government support wasn't as substantial as it is now. On the other hand, in Israel, the book "Start-Up Nation" became a bestseller, meetups and events were held almost daily, and talented university graduates were starting businesses one after another, forming a very thick ecosystem. In addition, major American tech companies like Apple, Microsoft, and Google were rapidly investing in or acquiring Israeli companies. I could strongly feel the closeness to the world's most advanced ecosystems, like Silicon Valley.
Mr. Terada speaking at a panel discussion on the Israeli startup ecosystemMeeting an Excellent Co-founder is the Key to Success
Was Israel an easy environment for a Japanese person to start a business?
Terada: No. Systemically, it was very strict regarding visa acquisition and various procedures; I'd say it was actually a difficult environment for foreigners. Also, the cost of living is two or three times higher than in Japan, so it took time to get on track after launching the company, and I struggled initially.
On the other hand, due to historical backgrounds such as Chiune Sugihara's "Visas for Life" and the contribution of Japanese companies during the Arab boycott, as well as the popularity of Japanese anime, people in the startup industry were very favorable toward Japan. Taking advantage of the revitalization of economic exchange between Japan and Israel around 2015, I created contact points with Japanese companies. I continued startup studio-like activities, earning revenue through technology scouting and open innovation work and investing it into new businesses, which led to starting the business in Japan.
How did you build local connections, such as business partners?
Terada: This is the most important and most difficult element in the process of making a business successful, isn't it? In my case, I simply went to events almost daily and increased my acquaintances through SNS, and then relentlessly asked those people to connect me to even more talented people.
In Israel, alumni of the special forces unit "Unit 8200" have the highest probability of becoming founders of unicorn companies. It just so happened that my current CTO was introduced to me by a friend. However, it took seven years from meeting him to actually co-founding a company. I think it is important to keep increasing opportunities for meetings and friends, while also carefully gauging whether the timing is right for both parties to commit.
Following Israel, you established "AironWorks Inc." in Japan in 2021. What was the background behind creating a company specializing in cybersecurity, a field with low self-sufficiency and awareness in Japan?
Terada: The Israeli company also had many Japanese clients, but since it was an Israeli entity, it was difficult to sign software license agreements, so I had anticipated expanding to Japan from the beginning. I transferred the businesses and products I had been advancing until then to AironWorks Inc. and founded it as a spin-off right after the pandemic hit. Predicting a situation where people would be targeted more due to the increase in remote work, and a future where attackers would use AI, we developed a product implemented with AI. We pride ourselves on providing a highly unique system that distinguishes us from competitors, allowing each company and each employee to receive optimized, advanced attack training and education. Furthermore, our strong R&D team strives for improvement while receiving feedback from hundreds of thousands of employees at major companies, so as long as this cycle keeps turning successfully, we can beat the competition.
Lecture for portfolio companies of an Israeli VC fundThe Presence of White Hat Hackers with Extensive Field Experience is the Greatest Strength
This is your third year participating in the Startup League, and you also took the stage at the Value Up Session in this year's Academy.
Terada: I participated in the first Academy in person. For the Value Up Session, one company couldn't make it on the day, so it was decided that another speaker would be chosen by raising hands. I lost at Rock-Paper-Scissors that time and couldn't speak (laughs), but I was given another opportunity to speak at a later date. I received valuable opinions from experienced advisors regarding three issues our company faces. We are currently focusing on training to reduce employee vulnerabilities and email security, but we also feel the need to launch products that are easier for anyone to understand. At the same time, given the significant shortage of security specialists in Japan, we are considering the development of a security specialist AI agent. We are proceeding with customer hearings and ideation, aiming for product commercialization within 2026.
What is the biggest feature of the platform currently provided to companies?
Terada: It is the fact that white hat hackers are at the core of development, and that we have been conscious of security in the AI era since our founding. In cyber defense, attackers have the advantage, so having developers with the mindset to predict and prevent attack methods is a major advantage. By having personnel with abundant combat experience design and operate the system from an attacker's perspective, we don't fall behind compared to products designed solely from a defender's perspective, enabling constant proactive measures.
It is extremely difficult for an individual to keep up with the speed of technological evolution, which is why it is important to collaborate with diverse top engineers like Israelis and Indians, as seen in Silicon Valley. However, many Japanese startups are single-ethnicity teams, and while they may achieve certain results domestically, there is almost no possibility of winning globally. I have a strong desire to show a "winning formula" that diverse teams can win by succeeding ourselves.
Aiming to be the world's number one security software company, I hear you are expanding to the US as your third base.
Terada: Since services originating from the US tend to become standards in many regions of the world, I believe that winning in the US market is the litmus test for global expansion. Generally, we see that our current product can handle it, but since localization is necessary for points such as detailed updates according to cultural differences, customer success, sales methods including consultants, and post-introduction support structures, we will work on this intensively starting in 2026.
In the US, while making San Francisco our main base, we plan to register the corporation and establish the company in the autumn of 2026. In aiming to be number one in the world, it is difficult to beat giants like Google and Microsoft in a short period, but I believe we can climb to be a top company in 4 to 5 years if it is within a specific, very niche segment.
Do you have any numerical targets for growing the company?
Terada: As an indicator to measure the social impact of a company with sufficient economic scale, I place importance on public evaluation and the corporate value assigned by investors. First, within the next five years or so, to grow our corporate value from 1 billion dollars to 10 billion, and eventually to 100 billion. Even so, compared to NVIDIA, Apple, Microsoft, etc., it is a dimension of 1/30th or 1/40th. I want to continue holding the realistic perspective that this is merely the starting point.
AironWorks Cybersecurity Agentic AI PlatformEditor's Note
Mr. Terada currently manages the company while traveling between three countries. Despite leading such a busy life, he says, "I want to give back the experience and knowledge I have gained so far to my colleagues in the Startup League, and also engage in educational activities to increase the number of young people aiming to become entrepreneurs." In fact, when he is in Japan, he is invited to his alma mater high school, universities, and technical colleges to regularly teach classes as an entrepreneur instructor.
■ICT Startup League
This is a support program that started in FY2023, triggered by the Ministry of Internal Affairs and Communications' "Startup Creation-type Embryonic Research and Development Support Project."
The ICT Startup League supports startups through four pillars.
① R&D Funding / Hands-on Support
Up to 20 million yen in R&D costs is provided in the form of a subsidy. In addition, for hands-on support, the selection evaluation committee members involved in the selection of league members stay close after selection to promote growth. For companies that the evaluation committee members evaluated as "absolutely want to adopt," a support system like "Oshi-katsu" (fandom activity) is built where the evaluation committee members themselves provide continuous support, such as advice on business plans and providing growth opportunities.
② Discovery & Development
We provide opportunities for learning and encounters that promote the business growth of league members.
We also expand discovery of those aiming to start businesses in the future, aiming to broaden the base.
③ Competition & Co-creation
It serves as a place for positive competition like a sports league, structured so that startups win the necessary amount of funds (up to 20 million yen) while learning together and working hard against each other. We also provide a place for co-creation where league members collaborate to expand their businesses through various opportunities such as sessions by selection evaluation committee members.
④ Dissemination
We disseminate the initiatives of league members in cooperation with the media! By letting many people know about the businesses, we aim to expand opportunities for new matching and chances.
■Related Websites
AironWorks Inc.
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AironWorks Inc. (LEAGUE MEMBER)
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ICT Startup League
