* * * * * * * * * T E R R I E 'S T A K E * * * * * * *<br>A weekly roundup of news & information from Terrie Lloyd.<br>(<a href="http://www.terrie.com">http://www.terrie.com</a>)<br><br>General Edition Sunday, September 25, 2011, Issue No. 631<br>
<br>+++ INDEX<br><br>- What's New -- Is Venture Capital Back in Vogue?<br>- News -- Diabetes doubles Alzheimer's rate<br>- Candidate Roundup/Vacancies<br>- Upcoming Events<br>- Corrections/Feedback <br>- News Credits<br>
<br>SUBSCRIBE to, UNSUBSCRIBE from Terrie's Take at:<br><a href="http://mailman.japaninc.com/mailman/listinfo/terrie">http://mailman.japaninc.com/mailman/listinfo/terrie</a><br><br>BACK ISSUES<br><a href="http://www.japaninc.com/terries_take">http://www.japaninc.com/terries_take</a>, or,<br>
<a href="http://mailman.japaninc.com/pipermail/terrie/">http://mailman.japaninc.com/pipermail/terrie/</a><br><br><br>-------------- PBXL SUPPORTS SMALL BUSINESS ---------------<br><br>MOVING TO A NEW OFFICE? DON'T BUY A PBX! At PBXL, we <br>
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e-mail us at <a href="mailto:info@pbxl.jp">info@pbxl.jp</a> or call us at 03-4550-2557<br><br>------------- PBXL is BUSINESS COMMUNICATIONS -------------<br><br><br>+++ WHAT'S NEW<br><br>At the end of August, the Nikkei carried an article stating<br>
that Venture Capital (VC) in Japan was starting to pick up <br>again, citing the fact that the Japan Venture Capital <br>Association (JVCA) was reporting member companies investing<br>almost as much in Q1 this year as they did in Q3 of 2008, <br>
just before the Lehman Shock. According to the JVCA, member<br>VCs invested JPY9.2bn into start-ups, compared to JPY9.4bn <br>in the 2008 Q3 period.<br><br>Actually, JPY9.2bn may be more than the last 3 years worth <br>of fiscal quarters, but it's still small potatoes compared <br>
to other countries. In Q1 last year (2010), China saw 45 <br>significant VC investments of US$579m, up 35% over 2009, <br>and India had 21 significant deals worth US259m over the <br>same period. We expect that both countries will be up at <br>
least 30% or more on these numbers this year. <br><br>Furthermore, recent news items suggest that much of <br>Japanese VC firms' investments are not necessarily even <br>going into Japanese companies, but rather appear to be <br>
overall figures. So we'd like more clarification on the <br>JVCA numbers before reporting that all is getting better. <br>Anecdotally, we're not seeing increased VC money on the <br>streets as yet, start-ups are finding it just as difficult <br>
as it ever was to get funding. But we are seeing some <br>interesting trends emerge -- more on these a little later <br>in this article.<br><br>Whether venture capital is coming back or not is is a <br>critical question for Japan's non-manufacturing sector. <br>
Because without some form of organized funding, very few <br>Japanese services start-ups (especially software and <br>Internet companies) can ever hope to emulate the success of<br>their overseas counterparts, who can spend much larger sums<br>
to ensure top quality coding and execution of their <br>business plans. <br><br>The thinking here in Japan, until recently at least, has <br>been that starving start-ups of funds makes them fiscally <br>more responsible and prudent. But it is also a good way to <br>
destroy their first-to-market advantage, as they struggle <br>to take on paying work to finance their future businesses. <br><br>As justification for believing the VC investment <br>environment is improving, the Nikkei August article goes on<br>
to say that Globis Capital Partners, a leading VC, invested<br>more than JPY1bn into start-ups from April through <br>mid-August. Then there was SBI, which put JPY500m into a <br>single company, Smart Navi, an iPad-related software <br>
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at 03-3581-1975 or by email at <a href="mailto:info@nagamine-mishima.com">info@nagamine-mishima.com</a>.<br><br>---------- YOUR BOTTOM LINE IS OUR TOP PRIORITY------------<br><br>[...Article continues]<br><br>Lastly they quote Mobile Internet Capital, which set up a new <br>
investment fund in July, and which by August had already <br>raised JPY5.2bn from mostly institutional investors who are<br>putting small amounts of their vast capital into higher <br>risk investments. One of these institutions, responsible <br>
for half of MIC's JPY5bn, was the Organization for Small & <br>Medium Enterprises and Regional Innovation organization <br>(SME Support, Japan), a government-related fund. SME <br>Support Japan has already invested or co-invested JPY9bn <br>
this fiscal year and is expecting to increase that amount <br>to JPY20bn by year end. <br><br>Actually, JPY20bn for venture investments is a lot of cash <br>within the Japan VC sector. Indeed, it is almost as much <br>as all the private VC funds are investing together as a <br>
whole. Therefore, if this SME Support Japan fund continues <br>to co-invest along the same lines as it did with MIC, then <br>we can expect an investment pattern that may start looking <br>like the government-backed venture investment funds of <br>
other countries, such as New Zealand's Venture Investment <br>Fund (VIF). Last time we checked, NZ's VIF had put well <br>over US$100m into dollar-matching arrangements with five <br>approved private VCs throughout the country, and as a <br>
result has enabled scores of innovative export-earning <br>companies to be established.<br><br>SME Support Japan seems to be taking the view with MIC that<br>it is better to be a fund-of-funds and to help out those <br>VCs with the knowledge and the connections that SME <br>
Support Japan itself would be hard pressed to replicate. <br>So if it can continue the process, then it will surely <br>reinvigorate the sector and make it attractive to <br>independent investors again. In the past MIC has invested <br>
JPY100m-JPY500m per target company, so we're <br>expecting them to continue that level of activity.<br><br>If the government doesn't get involved in venture funding, <br>then we see local VC funding diving again. The reason is <br>
simple: there are very few IPOs done in Japan these days, <br>especially compared to other Asian countries, and thus the <br>possibility of earning decent returns for the risks taken <br>will drive investors elsewhere. This would explain why so <br>
many Japanese VCs are actively looking abroad for <br>opportunity, having largely accepted that the Japan market <br>is moribund. Softbank's stunning announcement last week of <br>a US$200m investment into Indian mobile advertising firm <br>
InMobi, is but the tip of the iceberg in this regard.<br><br>With or without the government, there is another <br>interesting trend emerging, however. There have been a <br>number of announcements recently about VCs putting "micro <br>
amounts" of JPY5m or a little more into numerous start ups <br>in a scatter-gun approach. The rationale for such small <br>investments is that they are offering more important <br>"value" to investees than just cash: instead they're <br>
taking a holistic approach and offering incubator-style <br>rent, personnel, help with development and sales, and <br>management consulting training. <br><br>Actually, this is somewhat similar to the very successful <br>US-based Y Combinator incubator. The company has processed <br>
over 300 start-ups since it began in 2005, and last year <br>it "graduated" another 63 firms. Y Combinator puts in as <br>little capital as US$10k-US$50k per company, and gets <br>2%-10% of the stock in return. The reason for this is that <br>
start-ups don't really go to Y Combinator for cash, they <br>go for the networking, the credibility and because they know <br>that the relationship is temporary. It's working, <br>because just a couple of months ago a new and completely <br>
separate US fund has offered a blanket US$150k in debt <br>funding to ALL the graduating companies from Y Combinator <br>-- testimony to the quality of the firms there.<br><br>This groupist approach, coupled with mentoring and <br>
monitoring of the incubatees is successful in Silicon <br>Valley, but it could be ideal for Japan as well -- where <br>start-up management teams are typically very inexperienced <br>and short of knowledge on how to run a business. Actually, <br>
we know of several VC funds/incubators already using this <br>approach here in Japan, including one fund out in Ikebukuro<br>which has around 40 companies either incubating or in the <br>process of moving out. The attraction for start-ups to this<br>
Ikebukuro fund isn't the cash, it's the collegiate atmosphere<br>and the ability for the fund managers to accept mistakes <br>and learning on the job. Indeed, it's almost like going back <br>to a university setting.<br>
<br>The idea of scatter-gun investments, in small amounts, and <br>with the ability to mentor and influence these firms to <br>success, is highly attractive to existing VC players here <br>in Japan. One company that has already announced this <br>
strategy is Movida Japan, headed by Taizo Son, Softbank <br>Masayoshi Son's younger brother. Movida plans to put just <br>JPY5m into as many as 1,000 early-stage companies and will <br>provide consulting and other services to help those new <br>
firms grow. <br><br>Movida will soon have competition from another similar fund<br>to be co-invested in by NTT Investment Partners, Gree, NEC <br>Biglobe Capital, and MUFJ Capital. This new fund, which <br>doesn't appear to have a name as yet, is expecting to raise<br>
around JPY2bn and wants to put in about JPY10m per start-up<br>-- giving it the potential of aggregating as many as 200 <br>start-ups. <br><br>So maybe the Nikkei is right, and that with the advent of <br>SME Support Japan investments as well as the move to <br>
incubator-style investments, the venture capital scene in <br>Japan could indeed be on the way to improvement.<br><br>*************<br><br>Want good Australian wine at a low price and quickly? You <br>can't do better than the new Wine Buzz online store at <br>
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-----------------------------------------------------------<br><br>+++ NEWS<br><br>- Women in their 60's biggest spending travelers<br>- iRobot gets competition<br>- Taxes to go up after election year?<br>- Rakuten makes another major acquisition<br>
- Diabetes significantly increases Alzheimer's later<br><br><br><br>-> Women in their 60's biggest spending travelers<br><br>The Japan Tourism Agency has issued the results of a survey<br>that says that 4.1m women in their 60's traveled <br>
domestically in Q1 (Jan-Mar) this year, and spent JPY160bn <br>in doing so. 3.58m men in the same age bracket also <br>traveled regularly, spending around JPY120bn. In terms of <br>actual one-night spend, men in their 30's spent the most, <br>
racking up bills of around JPY58,000. ***Ed: At that <br>amount, one would have to imagine that the single men were <br>either paying for their girlfriends as well, or they are <br>all driving Ferraris...** (Source: TT commentary from <br>
<a href="http://e.nikkei.com">e.nikkei.com</a>, Sep 22, 2011)<br><br><a href="http://e.nikkei.com/e/ac/tnks/Nni20110923D2309A20.htm">http://e.nikkei.com/e/ac/tnks/Nni20110923D2309A20.htm</a><br><br>-> iRobot gets competition<br>
<br>Working couples and retired folks have one thing in common:<br>they have little time or interest in doing housework. As a <br>result, the Roomba robot vacuum cleaner made by US-based <br>iRobot is doing strong business in Japan, gaining about 2% <br>
of the vacuum cleaner market by selling 150,000 units a <br>year. This has attracted the attention of Japanese <br>competitors, who are about to launch similar machines. <br>Toshiba and Bandai's CCP are two such firms. Apparently <br>
both companies will compete on the fact that the Roomba's <br>sensors are somewhat primitive and the machine needs to run<br>around an apartment a number of times, bumping into walls <br>and furniture in order to change direction and clean a new <br>
area. Both Toshiba and CCP will launch units with smarter <br>sensors and processing capability. (Source: TT commentary <br>from <a href="http://e.nikkei.com">e.nikkei.com</a>, Sep 22, 2011)<br><br><a href="http://e.nikkei.com/e/ac/tnks/Nni20110923D22HH417.htm">http://e.nikkei.com/e/ac/tnks/Nni20110923D22HH417.htm</a><br>
<br>-> Taxes to go up after election year?<br><br>Although the government tax panel normally gets to set <br>policy, the DPJ's own tax panel has intervened and made <br>sure that any earthquake recovery taxes won't hit voters <br>
until 2013, not this year or next. Apparently the details <br>will be confirmed next week. Currently it looks like income<br>tax for working stiffs will go up, as will inheritance <br>taxes (non-working stiffs?), for at least 10 years. ***Ed: <br>
You really have to wonder what this is all going to do to <br>the economy. Coupled with at least a 10% hike in consumer <br>tax at roughly the same time, we the tax payers will have <br>some tough times ahead.** (Source: TT commentary from <br>
<a href="http://e.nikkei.com">e.nikkei.com</a>, Sep 23,<br>2011)<br><br><a href="http://e.nikkei.com/e/ac/tnks/Nni20110922D2209F02.htm">http://e.nikkei.com/e/ac/tnks/Nni20110922D2209F02.htm</a><br><br>-> Rakuten makes another major acquisition<br>
<br>Building out its presence across the globe, Rakuten has <br>just bought out one of the UK's largest web retailers, <br>Play.com, for just JPY3bn (approx.). The UK is Europe's <br>largest e-commerce market, and this purchase brings Rakuten<br>
closer to becoming the Number Two e-commerce player in the <br>region, after Amazon.com. ***Ed: Why was Rakuten able to <br>buy Play.com for just 1/10th of their other Europe <br>acquisitions, even though it reportedly had sales last year<br>
of around 500m pounds? According to the Guardian newspaper,<br>the company is based in Jersey and sales of DVDs have been <br>made legally without customers having to pay 20% VAT. That <br>tax loophole is going to be eliminated in March 2012 by the<br>
UK government, so so Play.com is expected to take a big hit<br>as a result.** (Source: TT commentary from <a href="http://indiatimes.com">indiatimes.com</a>, <br>Sep 21, 2011)<br><br><a href="http://bit.ly/qQ0czf">http://bit.ly/qQ0czf</a><br>
<br>-> Diabetes significantly increases Alzheimer's later<br><br>A new study conducted by researchers at Kyushu University <br>(Kyudai) in Fukuoka proves what doctors have suspected for <br>a while, that people with diabetes are at high risk of <br>
contracting Alzheimer's disease later in life. A <br>1,000-person study of over-60's was able to link diabetes <br>sufferers earlier in life with those getting Alzheimers <br>later. The chances of Alzheimer's doubled within 15 years.<br>
Indeed, the diabetics were also 1.75 times more likely to <br>develop any form of dementia. (Source: TT commentary from <br><a href="http://foxnews.com">foxnews.com</a>, Sep 20, 2011)<br><br><a href="http://fxn.ws/n83RiM">http://fxn.ws/n83RiM</a><br>
<br><br>NOTE: Broken links<br>Many online news sources remove their articles after just a<br>few days of posting them, thus breaking our links -- we<br>apologize for the inconvenience.<br><br>***------------------------****-------------------------***<br>
<br>+++ CANDIDATE ROUND UP/VACANCIES<br><br>=> BiOS, a Division of the LINC Media group, is actively<br>marketing the following positions for customers setting up<br>or expanding in Japan, as well as other employers of<br>
bilinguals.<br><br>** HIGHLIGHTED POSITION<br><br>BiOS is urgently looking for a Field Support Engineer with <br>experience providing maintenance/installation support of <br>network/unified communications system services to <br>
international clients in the Minato-ku area. The candidate <br>will not only be responsible for providing technical <br>services but also analyzing customer feedback and applying <br>it to new services scopes in order to improve the quality <br>
of the services, as well as providing occasional support to<br>internal engineers who are providing services outside Tokyo<br>area.<br><br>You will also be responsible for escalating technical <br>issues to appropriate departments when required..<br>
<br>Due to the technical nature and demanding work environment,<br>this position is suitable for someone with solid experience<br>as an engineer in network or unified communications-related<br>systems. In addition, since this role requires direct <br>
contact with both Japanese and international clients, <br>business-level communication skills in English and fluency <br>in Japanese will be required.<br><br>Remuneration is JPY7m – JPY8.5m depending on your <br>experience and skill level.<br>
<br>** POSITIONS VACANT<br><br>- Helpdesk Engr, global medical equipment co, JPY4M – JPY5M<br>- Service Delivery Manager, global IT co., JPY8M – JPY9.5M<br>- Field Engineer, BiOS, JPY4M – JPY5M<br>- Proj. Mngment Officer, global insur. co, JPY 9M – JPY13M<br>
- Sales Team Account Manager, BiOS, JPY4M – JPY4.5M<br><br>Interested individuals may e-mail resumes to:<br><a href="mailto:tomohiro.kimura@biosjp.com">tomohiro.kimura@biosjp.com</a><br><br>** BiOS Job Mail<br><br>Every 2 weeks BiOS sends out a regular communication to its<br>
job seeking candidates, called BiOS Job Mail. Every edition<br>carries a list of BiOS's current and most up-to-date<br>vacancies, with each entry featuring a short job<br>description and a direct link to the main entry on the BiOS<br>
home page. Regardless of whether you are unemployed and<br>searching, thinking about a career change, or just curious<br>to know if there is something out there that might suit you<br>better, the BiOS Job Mail newsletter is an easy and<br>
convenient way for you to stay informed. If you would like<br>to register for the BiOS Job Mail, or to find out more,<br>please email <a href="mailto:kenji.sakota@biosjp.com">kenji.sakota@biosjp.com</a>.<br><br>Interested individuals may e-mail resumes to:<br>
<a href="mailto:tomohiro.kimura@biosjp.com">tomohiro.kimura@biosjp.com</a><br><br>-----------------------------------------------------------<br><br>***------------------------****-------------------------***<br><br>+++ UPCOMING EVENTS/ANNOUNCEMENTS<br>
<br>--------- Japan's Most Popular Leadership Training --------<br><br>Japan's most popular leadership training is called Action<br>Learning, and was pioneered by Professor Reginald Revans<br>of the UK in the 1940's.<br>
<br>A published expert in the field of Action Learning is Dr.<br>Michael Marquardt, Prof at George Washington University,<br>DC. Dr. Marquardt will personally be in Japan, conducting a<br>series of seminars for major Japanese corporations, and has<br>
agreed to do a single presentation for foreign managers as<br>well. Hear how Action Learning can transform your work<br>force.<br><br>Title: "Impact of Action Learning: What difference are we<br>making in the world?<br>
Speaker: Dr. Marquardt, President of World Institute for<br>Action Learning<br><br>Date: October 27, 2011, 10:00-13:00(13:30)<br>Venue : Tokyo American Club (Tokyo, Japan)<br>Fee : JPY15,000 @(including lunch)<br>Contact : <a href="mailto:info@ldcjp.com">info@ldcjp.com</a><br>
03-6809-1144 (English-Gledis Action Learning)<br>03-6680-2698(Japanese)<br><br><a href="http://www.ldcjp.com/">http://www.ldcjp.com/</a><br><a href="http://www.ldcjp.com/seminar/20111027M.html">http://www.ldcjp.com/seminar/20111027M.html</a><br>
-----------------------------------------------------------<br>***------------------------****-------------------------***<br><br>+++ CORRECTIONS/FEEDBACK<br><br>In this section we run comments and corrections submitted<br>
by readers. We encourage you to spot our mistakes and<br>amplify our points, by email, to <a href="mailto:editors@terrie.com">editors@terrie.com</a>.<br><br>*** No comments this week.<br><br><br>***********************************************************<br>
END<br><br>SUBSCRIBERS: 8,838 members as of Sep 25, 2011<br>(We purge our list regularly.)<br><br>+++ ABOUT US<br><br>STAFF<br>Written by: Terrie Lloyd (<a href="mailto:terrie.lloyd@japaninc.com">terrie.lloyd@japaninc.com</a>)<br>
<br>HELP: E-mail <a href="mailto:Terrie-request@mailman.japaninc.com">Terrie-request@mailman.japaninc.com</a><br>with the word 'help' in the subject or body (don't include<br>the quotes), and you will get back a message with<br>
instructions.<br><br>FEEDBACK<br>Send letters (Feedback, Inquiries & Information) to the<br>editor to <a href="mailto:terrie.lloyd@japaninc.com">terrie.lloyd@japaninc.com</a>.<br><br>ADVERTISING INFORMATION<br>For more information on advertising in this newsletter,<br>
Contact <a href="mailto:ads@japaninc.com">ads@japaninc.com</a>.<br><br>SUBSCRIBE<br>Get Terrie's Take by giving your name and email address at<br><a href="http://www.japaninc.com/newsletters/free_sign_up">http://www.japaninc.com/newsletters/free_sign_up</a>, or go<br>
straight to Mailman at:<br><a href="http://mailman.japaninc.com/mailman/listinfo/terrie">http://mailman.japaninc.com/mailman/listinfo/terrie</a><br><br>BACK ISSUES<br><a href="http://www.japaninc.com/terries_take">http://www.japaninc.com/terries_take</a><br>
or, <a href="http://mailman.japaninc.com/pipermail/terrie/">http://mailman.japaninc.com/pipermail/terrie/</a><br><br>Copyright 2011 Japan Inc. Communications Inc.<br><br>----------------- Japan Inc opens up Japan ----------------<br>
<br>J@pan Inc is Japan's only independently published English-<br>language business website. Authoritatively chronicling<br>online the business trends in Japan, each posting brings<br>you in-depth analysis of business, people and technology in<br>
the world's second largest economy.<br><br>Visit <a href="http://www.japaninc.com">www.japaninc.com</a> for the best business insight on<br>Japan available.<br>-----------------------------------------------------------<br>
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