Startup Studio Spotlight: LtG Startup Studio
The concept of startup studios continues to globally revolutionize entrepreneurship and the methods used for acquiring venture capital. The model has taken over places like The Netherlands, France, Italy, and of course the U.S. We now want to take you all the way to Japan to learn about how startup studios are perceived and how one particular studio operates to turn challenges into valuable businesses.
LtG Startup Studio
LtG Startup Studio is a gathering of founders and entrepreneurs located in Mishima City, Shizuoka Prefecture, where they aim to be “the place of choice for the most challenging people in Japan”.
In many regional and provincial areas, there is little support for startups or founders in their early stages. With these often focused on larger cities such as Tokyo, to pursue a startup, one must move to such areas with significantly increased expenses. This greatly reduces accessibility while also increasing risks for founders.
As a result, LtG’s regional setting allows for increased availability and reduced risk for early-stage startups and founders — something crucial to increase the startup scene in a risk-averse society such as Japan. The newly found studio supports people from different backgrounds with varying levels of experience through a multitude of events and resources. Furthermore, LtG maintains its selectivity while expanding the startup ecosystem, by working with key startup ideas and key founders that bubble up from these events and resources.
We were intrigued to learn more about this exciting studio, which is why we reached out to connect with their community management team and asked them a few questions about their workplace and the vision that they operate under. Stick around to learn more about LtG below!
1. What does the startup scene in Japan currently look like? How is the startup studio model perceived in Japan?
Startup studios are beginning to appear more, but are still widely unknown. The few that are popping up tend to be focused on a few large cities. LtG is among this new wave but is one of the few studios outside of Japan’s few largest cities.
Starting up in Japan is still significantly uncommon compared to other countries. With startup rates in England at 14%, France at 12%, and America at 10%, the number of people pursuing startups in Japan is a low 5%.
As there are many bestselling books published regarding startups, the concept of starting up is becoming fairly familiar even to the average Japanese person. However, as the average Japanese person does not come across many successful founders in their daily lives, many still see startups as a distant concept that they can read about but not see in the immediate world around them.
2. What sets you apart from other startup studios
LtG is the only startup studio in not only the surrounding region but in similar provincial regions throughout Japan. LtG is also significantly more accessible than other studios in the country.
3. How does LtG Startup Studio secure enough financial resources to support the ventures that you work with?
LtG, backed by Kawata Construction, has a corporate fund. This fund grants startups two rounds of funding (the second round being greater than the first).
4. Why is it important for startup studios to offer an early and consistent collaborative environment with the founders they work with?
Working with an experienced team allows founders to, not necessarily avoid failure altogether, but to avoid larger ones that can bring an end to a startup. This efficiency reduces risk while allowing for a faster pace.
5. How does LtG support its startups in terms of operational support?
LtG’s team works closely with founders, while also connecting founders to members of LtG’s mentor network, allowing for the development of an optimal team. From ideation to connecting with VC’s for further funding, LtG provides support and guidance in areas that include, the early development of business concepts and models, validation, and testing of product/market fit.
6. What skill sets are the most valued in the startup studio industry currently?
The most valued skillset in the startup industry is the ability to create driving motivation. If this is passion — it’s passion — but in starting up, the ability to pick oneself up after falling and rebuilding from here becomes a crucial skill. Understanding what this is for each designated person is essential.
7. How has the digital era supported working with other people around the world?
Often things are implemented in Japan after they succeed abroad. This means it typically takes substantial time before their implementation in Japan. What the digital era has allowed for is increased connectivity between people across the ocean. In turn, this increases both the mass and speed of information.
Whether it be from Silicon Valley or another startup environment, the necessary information, as well as the necessary skills of individuals, become available through digital means.
As Japan’s market is fairly unique from other foreign markets, it is often harder for foreign firms to expand into Japanese markets if products and services are not properly localized. The digital era has allowed Japanese businesses to adopt and localize successful foreign models at increased speeds — at times before these foreign firms hold a substantial position in Japanese markets.
8. How do you think the startup studio model can achieve becoming one of the top global models for business development? What is needed to achieve so? What is already set in place?
The environment of startup studios has become crucial to their success. Implementing what other startup ecosystems or studios have done directly in Japan will not lead to the same results. Understanding the setting startup studios are in becomes crucial to the success of the startup studio model. To ensure a solid setting for such studios, investment in the city and its infrastructure are crucial.
To Finalize…
LtG Startup Studio solves various entrepreneurial issues such as those who are just starting a business plan, and those who are worried about prototype development and considering financing and alliances. Just like other studios, LtG supports all its founders from the conception stage all the way to launch. If you’d like to learn more about their ventures and services offered, check out their website here, and don’t forget to stick around as we continue to feature more startup studios in our next spotlight issue!
