X-HUB TOKYO, which supports the overseas expansion of startups in Tokyo, held X-HUB TOKYO #2 Overseas Expansion Seminar: The Road to the UK and European Markets – Pathway to the UK and European Markets ~Ecosystem Overview and Expansion in Practice~ on July 2nd.

The seminar focused on the UK and European markets, which feature numerous attractive startup ecosystems. We shared the latest information from a practical perspective on growth areas specific to the region, as well as opportunities and challenges for startups in expanding their businesses.

In the first half of the event, Mr. Naoki Kamimaeda, Deeptech & Fintech | Cross-Border Investor and former Partner & Europe Division Head at Global Brain, took the stage. He shared valuable insights into the overall landscape of the UK and European startup ecosystems, including the strengths of each region and key areas of interest.

In the second half, under the facilitation of Mr. Kamimaeda, a panel discussion was held featuring guest speakers who are pioneering UK and European expansion efforts. The panel included Mr. Atsushi Oguchi, CEO of RUN.EDGE Limited, and Mr. Shingo Yanai, Manager of Global Business Development Division at Asuene Inc. Valuable information was shared to benefit startups aiming for future overseas expansion.

Overview of the Startup Ecosystem in the UK and Europe

Mr. Naoki Kamimaeda, Deeptech & Fintech | Cross-Border Investor,
Former Partner & Europe Division Head of Global Brain and Founding Partner of Global Brain Europe

To begin with, could you provide an overview of the current UK and European startup ecosystem?

In Europe, cities such as London, Paris, Berlin, Stockholm, and Zurich continue to serve as major startup hubs. Among these, London stands out as a central player, ranking third in the “Startup Genome” 2024 global city rankings and maintaining a strong presence as the core of Europe.

Additionally, in recent years, countries like Spain and Ireland — particularly Dublin — have rapidly gained prominence, attracting attention as key hubs for research and development. Europe is home to over 550 unicorn companies, and the trend of new startups emerging from these unicorns continues to grow.

Are there any particularly noteworthy investment trends in the startup scene?

In Europe, the growth and increased investment in the deep tech sector are particularly striking. The number of deep tech startups leveraging the strengths of universities and research institutions is on the rise, with successful cases emerging in fields such as AI, semiconductors, and space tech. Additionally, the term “resilience tech” is gaining traction as another name for defense tech.

In 2024, venture capital investments in the deep tech sector reached an all-time high of $7.8 billion, marking a 56% increase year-over-year. While deep tech is often perceived as high-risk, it’s worth noting that the average exit period is 7 to 9 years, which is comparable to other sectors.

What opportunities does the European market offer for Japanese startups?

I sense that interest in Europe has been growing in recent years due to factors such as U.S.-China tensions and U.S. tariff policies. This presents a unique opportunity for Asian and Japanese startups to benefit, almost as a “windfall.”

In particular, the relationship between the UK and Japan is strengthening. During London Tech Week, there were increased opportunities for networking at local events, and I felt mutual interest was rising as well. Europe is becoming a fertile ground for growth, especially for technology-focused startups in fields like deep tech. I encourage everyone to actively take on the challenge of entering this promising market.

Panel Discussion: Opening Doors to Business Opportunities in the UK and Europe: the Pathways to Success

(Top left) Mr. Naoki Kamimaeda, Deeptech & Fintech | Cross-Border Investor
(Top right) Mr. Shingo Yanai, Manager of Global Business Development at Asuene Inc.
(Bottom) Mr. Atsushi Oguchi, CEO of RUN.EDGE Limited

In the latter half, we will continue to have Mr. Kamimaeda as the facilitator and welcome Mr. Atsushi Oguchi, CEO of RUN.EDGE Limited, and Mr. Shingo Yanai, Manager of Global Business Development at Asuene Inc. as panelists. To start, could you please introduce yourselves and share the current status of your business expansion in the UK and European markets?

Mr. Oguchi:
Hello, everyone. RUN.EDGE is a startup that develops and provides cloud-based analysis SaaS leveraging sports video. Our flagship product is a tool used by professional sports team coaches and analysts to analyze video in real time and provide tactical feedback. It has been adopted across various sports and regions, including professional baseball and European soccer leagues. From the product development stage, we have incorporated diverse feedback gathered locally, evolving our product into one that meets global standards. By refining it based on on-the-ground needs, we are now beginning to see positive responses in the local market.

Mr. Yanai:
Nice to meet you, I’m Yanai. Our company, Asuene, operates in the climate tech sector. Our flagship service, “Asuene,” is a cloud platform that visualizes and manages greenhouse gas emissions associated with corporate activities, supporting the realization of carbon neutrality across entire supply chains. We provide precise and efficient solutions for calculating and reporting CO₂ emissions, which are essential for corporate ESG evaluations and compliance with various regulations.

Looking overseas, Europe stands out as a cutting-edge market in the climate tech sector, with rapid advancements in sustainability-related regulations. By entering such a market, we aim to quickly grasp the latest regulatory developments and competitive trends, which is why we are focusing on expanding internationally.

Could you share any specific moments when you felt the impact or achievements of expanding into the UK and European markets?

Mr. Oguchi:
During the research phase, before we fully committed to international expansion, we had the opportunity to connect with a sports academy in Spain. Later, during the COVID-19 pandemic, the academy began using our service in their online courses, which allowed more participants to access it.

Spain, as you know, is a powerhouse in the world of soccer. After completing the courses, many of the coaches returned to their home countries and continued to adopt our service locally. Witnessing these signs of global expansion firsthand, I strongly felt that pursuing the European market was the right decision.

Mr. Yanai:
In Europe, sustainability-related regulations and standards vary from one country to another, requiring tailored responses for each. In this context, our entry into the UK has significantly boosted our presence, which I feel has been a major tailwind for advancing our business.

Having a base in Europe and collaborating with local consultants has led to a noticeable increase in inquiries, such as, “We want to speak with a company that is up-to-date on the latest European trends.” Additionally, we’re starting to see cross-regional collaborations, such as being introduced to European companies through the networks we’ve built in Asia.

Finally, could you share some advice for startups aiming to enter the European market in the future?

Mr. Oguchi:
Through JETRO’s support, we’ve had the opportunity to exhibit at several events. During these occasions, we received interest from local investors and television network-affiliated acceleration programs, and we even had some promising discussions. However, we weren’t able to translate those opportunities into tangible results, which made us realize the importance of preparation and building a solid foundation as a company.

That said, I don’t think there’s a need to be overly cautious just because it’s an overseas market. If you can deliver a service with true value, it will resonate across borders. For us, our initial approach involved traveling to the market, letting users try our product firsthand, gathering feedback, and continuously improving based on that input. While we’re still on the journey, we aim to continue making steady progress moving forward.

Mr. Yanai:
As part of our efforts to expand internationally, we participated in the Singapore course of X-HUB TOKYO 2023. Since we started without any local network, the program was instrumental in helping us build reliable connections and gain a certain level of recognition in the market. I found this to be a very effective experience.

Before fully committing to international expansion, we placed great emphasis on carefully assessing whether our service had sufficient competitive strength. By conducting preliminary sales activities and securing actual customers before entering the market, we were able to minimize risks. To ensure that we deliver real value and leverage our strengths in overseas markets, I believe that preparation and a step-by-step validation process are absolutely essential.

Thank you both for sharing such valuable insights based on your experiences!

At this event, we explored the latest trends in the UK and European startup ecosystems and shared real-life examples of market entry. Moving forward, X-HUB TOKYO will continue to deliver the latest information on the unique characteristics and appeal of overseas startup ecosystems, as well as the newest trends in open innovation both domestically and internationally.