[Event Report] X-HUB TOKYO Kickoff Event 2025: “For Japanese startups to expand overseas”

vol.74

2025.08.06

X-HUB TOKYO, supporting global activities of startups in Tokyo, Held Kick-off Event 2025 on June 17: ” For Japanese startups to expand overseas “.

During the kick-off event, we provided valuable insights for Tokyo-based startups aiming for global expansion. Topics included an overview of X-HUB TOKYO Program, the current environment surrounding Japanese startups, and the importance of considering global business development from the outset and what is required to do so.

In the keynote speech during the first half of the event, we welcomed Mr. Shingo Tsuda, INDEE Japan Ltd. Co-Founder/ Technical Director, Under the theme ” Opportunities and Strategic Pathways for Japanese Startups on Global Expansion”, Mr. Tsuda shared his insights on common challenges startups face when striving for growth and key points to consider when selecting and researching overseas markets.

In the second half of the event, Mr. Tsuda who took the stage in the keynote lecture facilitated, and Mr. Takeshi Obayashi, INFORICH Inc. Expert, which offers a mobile battery sharing service, Mr. Yousuke Okada, CEO of ABEJA, Inc., which supports for introducing AI into mission-critical operations had panel discussion. Both speakers shared their perspectives on the theme ” Secrets of SU’s success overseas”.

During the networking event that followed, a diverse group of participants, including startup founders interested in global expansion, aspiring entrepreneurs in the planning stages, as well as supporters of startups and representatives from support organizations, engaged in networking actively. The event was so successful that many participants remained even after the closing time and exchanged ideas and consulted on specific topics inspired by the event’s presentations.


Keynote Speech: ” Opportunities and Strategic Pathways for Japanese Startups on Global Expansion “

Mr. Shingo Tsuda INDEE Japan Ltd. Co-Founder / Technical Director

Firstly, we asked Mr. Shingo Tsuda, INDEE Japan Ltd. Co-Founder / Technical Director, about the overseas expansion of startups. How do you perceive the current situation and business environment surrounding Japanese startups?
Currently, the scope of entrepreneurship is expanding, approximately 120,000 companies are founded annually in Japan, which means with one out of every 25 companies being less than a year old. Particularly in Tokyo, statistics shows that about 8% of the employed people are engaged in startups. On the other hand, the obsolescence of successful business models is advancing rapidly, and the cycle of corporate renewal has doubled in speed over the past 40 years. This suggests that traditional business operation models are no longer viable. Additionally, while Japan’s business creation rate is higher than its business closure rate, resulting in a net increase in companies, there is a growing tendency toward “fragmentation,” with many small-scale businesses dominating the landscape. The number of unicorn companies in Japan is only about 1% of US, which indicates significant room for scaling up. In the future, even if not everyone starts their own business, more people are likely to work at or become involved with startups.
Under this business environment, what kind of the challenges do startups face when aiming for growth, and how can overseas expansion contribute to their business?
The most common reason for startup failure is “lack of market demand,” which accounts for approximately 42% of cases. Other major reasons include insufficient funding, team dysfunction, and losing out to competitors. Overseas expansion can be an effective solution to the challenge of failing to identify domestic market demand. Products that struggle to gain traction in Japan may find new markets and needs abroad. Furthermore, entering overseas markets can expand the market size, facilitate funding, and increase corporate value. Of course, there are challenges when it comes to overseas expansion, such as managing multinational teams. However, in many countries, business practices are more flexible than in Japan, which can make it easier to grow and expand businesses. I think overseas expansion as a strategic move that has the potential to mitigate the risks that startups commonly face.
What is the key points that startups should focus on when selecting and researching overseas markets?
The most critical factor is the “speed” at which you achieve PMF (Product-Market Fit). No matter how large the market is, if it takes too much time or cost to fit into it, it won’t be meaningful. For B2B businesses, it’s important to identify where decision-making happens within companies, while for B2C businesses, factors such as demographic composition and economic growth trends must be assessed to determine if they will act as tailwinds for the business.

When selecting a country or region, factors like “ease of doing business” are also important point. For example, in Singapore, where I am based, the simplicity of company registration procedures, availability of subsidies, and the ease of market testing in a multicultural environment make it an attractive option for businesses.

To understand the local market better, personally, I recommend attending industry-specific trade shows overseas before approaching venture capitalists. These events offer the opportunity for direct negotiations and allow you to experience firsthand the reactions of buyers and sellers, which is a significant advantage.

Each country has its own unique culture and background, just as every Japanese individual has a distinct identity. Rather than simply viewing a country as a market, it is important to take an interest in its culture to build stronger relationships and increase the likelihood of business success. Overseas expansion is no longer a question of “whether to do it or not,”, Nowadays it’s about “when and where to start.” Now is the time to take that first step.

Panel Discussion: “Secrets of SU’s success overseas”

Panelist:
INFORICH Inc.
Expert
Mr. Takeshi Obayashi

ABEJA, Inc.
CEO
Mr. Yousuke Okada

Facilitator:
INDEE Japan Ltd. Co-Founder / Technical Director
Mr. Shingo Tsuda

The second half of the event will then move on to a panel discussion. The facilitator was Mr. Shingo Tsuda, INDEE Japan Ltd. Co-Founder / Technical Director. And the panelists included Mr. Takeshi Obayashi, INFORICH Inc. Expert, and Mr. Yousuke Okada, CEO of ABEJA, Inc. First of all, could you please introduce yourselves and share an update on the progress of your overseas expansion efforts?
Takeshi Obayashi (hereinafter referred to as “Obayashi”): Nice to meet you. At INFORICH, we operate a battery-sharing service called “ChargeSPOT.” Our company was founded in 2015 and was listed on the Tokyo Stock Exchange in 2023. Currently, we have seven locations in Japan and expanding internationally with key locations, including Guangzhou, Hong Kong, Australia, Taiwan, and the United Kingdom. By combining direct operations with a franchise model, we are accelerating our global expansion at a rapid pace.

Yousuke Okada (hereinafter referred to as “Okada”): ABEJA, founded in 2012, is an AI startup focused on the research, development, and social implementation of deep learning technologies. My journey began when I was inspired by the potential of AI during my time in Silicon Valley, which eventually led me to start the company after returning to Japan. Our overseas expansion started with Singapore in 2017, followed by the United States in 2019. In 2017, we also formed a capital and business alliance with NVIDIA, a leading semiconductor company, marking the first such case in Japan and garnering significant attention. Collaboration with overseas entities is a key pillar of our growth strategy.
What do you think were the key elements for growth and success in your overseas expansion efforts?
Obayashi: Since its founding, our company has operated with a vision of expanding into multiple countries. We have selected strategically regions by analyzing the characteristics and profitability of each market. Currently, we focus on the highly profitable European market. Additionally, we emphasize local recruitment, appointing leaders who are best suited to the culture and market of each country. Today, approximately 70% of our group’s employees are non-Japanese, and Japanese, English, and Chinese are commonly used within the company. Let me share a brief example from Singapore. When we entered this highly competitive market at the end of 2023, we leveraged the expertise we had accumulated over the years to secure partnerships with major convenience store chains. By focusing on expanding our market share, we successfully achieved the No. 1 position in market share by 2024. Even in environments with intense competition, we believe that precise strategies and strong execution can create meaningful opportunities for success.

Okada: In our case, strategic partnerships, such as those with NVIDIA and Google, served as pivotal turning points. For overseas expansion, overseas expansion, meticulous preparation, and well-timed approaches are essential. In Singapore, the sandbox system proved particularly valuable as a platform for conducting pilot projects. Additionally, we have established a process to bring insights gained overseas back to Japan. In terms of team structure, leveraging AI and remote work environment has facilitated efficient global collaboration despite language barriers. Also, when expanding internationally, it is vital to respect religious and cultural differences while valuing local perspectives.
At the end of discussion, could you give some message to startups aiming for overseas expansion?
Obayashi: We participated in the X-HUB TOKYO program, where we received practical and multifaceted support, including local mentoring, network building, and B2B matchmaking. Through this program, we gained valuable insights and connections that would have been difficult to achieve independently, providing a significant boost to our global expansion. For startups, such robust support is unmatched, and I strongly recommend participating in the program—it’s a decision that offers undeniable value and no drawbacks.

Okada: Overseas expansion is not only about market growth, but it also serves as an opportunity for talent development and organizational growth. By engaging in local experiences, team members broaden their perspectives, contributing to the overall strength of the company. Even if there are failures, the lessons learned from these challenges are invaluable, transform into critical assets for the organization in the long term. I strongly encourage startups to take that first step without fear.

At this event, we were honored to have experienced entrepreneurs who have successfully expanded their businesses overseas share their insights. Through their personal stories, they provided valuable information for Tokyo-based startups aiming to enter global markets. X-HUB TOKYO will continue to deliver information on global ecosystems, market characteristics, and key points for overseas expansion through various events.