japanese tech investment report

www.cbinsights.com 2

IN THE LAST 15 YEARS, 52% OF FORTUNE 500 COMPANIES HAVE DISAPPEARED

195561 year lifespan in S&P 500

201517 year lifespan in S&P 500

vs


“I just think it is serving a different kind of need. It’s a different business segment onto itself. And the segments that we are serving largely, I think, will remain separate and distinct from that. I don’t think customers suddenly woke up…and aid, ‘We really don’t care about consistently high quality products, and we don’t need service and we don’t need amenities.’ I just don’t buy it.”

– Chris Nassetta, CEO of Hilton on Airbnb

TECHNOLOGY IS EATING EVERY INDUSTRY

4

TECHNOLOGY EVOLUTION IS QUICK

Phase 1

Mainframe

Phase 2

Mini computer

Phase 3

PC

Software

Phase 4

Internet

Web

Phase 5

Mobile

Apps

Phase 6

Connected Platforms

Hardware & Software

5

JAPAN IS WELL-POSITIONED FOR THE NEXT PHASE, IF…


PINPOING EMERGING INDUSTRIES & TRENDS

IDENTIFY POTENTIAL STARTUP DISRUPTERS

SEE EXISTING AND NEW COMPETITOR MOVES

NEW BUSINESS MODELS AND TECHNOLOGIES

IF THEY CAN RESPOND TO NEW TRENDS AND THREATS QUICKLY

Anand SanwalCEO / Co-founder, CB Insights

Ran American Express $50M Chairman’s Innovation Fund

Prior work in venture capital and M&A

Author of “Optimizing Corporate Portfolio Management” (Wiley 2007)

Graduate of Wharton (Finance/Accounting) and University of Pennsylvania (Chemical Engineering)

@asanwal

ABOUT ME

[email protected]

Technology market intelligencefor data-driven executives.CB Insights software lets you predict, discuss and communicate emerging technology trends using data in ways that are beyond human cognition.


FINDINGSIGNAL


Without data, you’re just another person with an opinion.

OLD SCHOOL (limited by human cognition)

Google searchesGut instinctGuys with MBAs (pundits aka consultants, analysts)

NEW SCHOOL(beyond human cognition)

Machine learningNatural language processingTopic modelingProbability driven models

Signals discerned from millions of sources including:

• Venture capital / angel investments• Startup data• Patents• Government grants• News media• Social media

See what other customers have to say at http://www.cbinsights.com/customer-love

“We use CB Insights to find emerging trends and interesting companies that might signal a shift in technology or require us to reallocate resources.”

TRUSTED BY WORLD’S LEADING COMPANIES

Beti CungCorporate Strategy, Microsoft


629 16

211

490

1200

1400

2010 2011 2012 2013 2014 2015 2016 (YTD)

From the NY Times to Bloomberg, CB Insights data is used by hundreds of leading media outlets every week

“ACCORDING TO CB INSIGHTS…”

CB INSIGHTS MEDIA CITATIONS PER YEAR

In 2016, Japan’s corporations invested:

$3.1 BILLIONacross

125 DEALS,to VC backed companies.

www.cbinsights.com 12www.cbinsights.com

MORE THAN 60% OF DEALS INVOLVE CORPORATES


62% 61% 66% 68% 68%

38% 39%34% 32% 32%

2012 2013 2014 2015 H1 2016

DEALS TO VC-BACKED COMPANIES WITH VS WITHOUT CORPORATE PARTICIPATION IN JAPAN 2012 - H1 2016

Deals to VC-backed Companies with Corporate Participation Deals w/o Corporate Participation

JAPANESE CORPORATIONS ARE PRETTY ACTIVE


$852 $1,005 $3,368 $5,875 $3,124

84

117

189

169

125

2012 2013 2014 2015 2016 YTD (9/27/16)

JAPANESE CORPORATE DEALS AND DOLLARS TO VC BACKED COMPANIES GLOBALLY 2012 - 2016 YTD (9/27/16)

Disclosed Funding ($M) Deals

$4,028(Full-Year Projection)

168(Full-Year Projection)

LESS ACTIVE THAN US OR CHINESE PEERS, HOWEVER

MITSUI & CO. IS THE MOST ACTIVE JAPANESE CORPORATE INVESTOR


MOST ACTIVE JAPANESE CORPORATES BY DEAL COUNT 2012-2016 YTD (9/26/2016)

RANK INVESTOR

1

2

3

4

5

RANK INVESTOR

6

7

8

9

10

RANK INVESTOR

11

12

13

14

14

MOST ACTIVE CORPORATE INVESTORS IN JAPAN RANKED BY DEAL COUNT2012 – 2016 YTD (9/27/2016)


Rank Investor Select Investments Made Between 2015 -2016 YTD (9/27/2016)

1

2

3

4

5

BUSINESS SOCIAL GRAPH OF JAPANESE CORPORATE INVESTMENTS IN THE LAST 12 MONTHS


ACTIVITY PICKING UP IN SPECULATIVE AREAS LIKE QUANTUM COMPUTING


Corporation Engagement Quantum Computing Activity

R&D/ Product Development

Mitsubishi Electric is developing proprietary quantum cryptography equipment to secure mobile communications.

R&D/ Partnership

NEC and Fujitsu partner to offer customers quantum-encrypted communications over long distances.


Nippon Telegraph and Telephone Corporation is developing quantum-based computer chips that rely on photons – particles of light -- to process information.


Toshiba’s prototype quantum key distribution system delivers digital keys for cryptographic applications on fiber-optic-based computer networks.

Toshiba maintains one of the largest quantum IP portfolios in the world.


Source: Clay Christensen Disruptive Innovation Framework

TODAY’S EXPERIMENTS BECOMETOMORROW’S PROBLEMS.



DISRUPTIVE INNOVATION COMES FAST & FURIOUS

#FutureFintech www.cbinsights.com 21

STARTUPS EQUAL OUTSOURCED R&DIN THE LAST 5 YEARS, MORE THAN 38,135 EARLY-STAGE FINANCINGS TO THESE EXPERIMENTS



DISCOUNT THEM TODAY. AT YOUR PERIL.

THESE EXPERIMENTS ARE MULTIPLYING


Cost to Launch a Tech Startup

Source: Upfront Ventures

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