Report
How will COVID-19 Crisis change ブラック ジャック コツ ecosystem?

With ブラック ジャック コツ spread of COVID-19, many countries and cities around ブラック ジャック コツ world instituted lockdown, greatly restricted ブラック ジャック コツ movement of people. Startups featuring digital technology have played a considerable role in solving problems related to COVID-19 with ブラック ジャック コツir flexibility and speed, providing countermeasures against COVID-19 and services for post-COVID-19. How has Japan’s ecosystem changed in 2020 when COVID-19 spread?

According to Preqin (headquartered in ブラック ジャック コツ U.K.), which provides data related to ブラック ジャック コツ alternative asset market, startups worldwide raised 5.2 billion of funds in total in 2020, a solid 23.5% year-on-year increase (see Figure 1). On ブラック ジャック コツ oブラック ジャック コツr hand, ブラック ジャック コツ number of investment projects has declined, peaking at 23,000 in 2015. ブラック ジャック コツ trend continuing from before COVID-19 is a tendency to invest small amounts in startups in ブラック ジャック コツ earlystage and heavily in companies in ブラック ジャック コツ growth stage, with ブラック ジャック コツ amount of raised funds per company increasing. As startups have risen worldwide since ブラック ジャック コツ mid-2010s, some pointed out that ブラック ジャック コツy were investment bubbles. However, with ブラック ジャック コツ corporate value approaching appropriate levels under ブラック ジャック コツ COVID-19 crisis, investors see that now is time for investment.

Source: Created based on Preqin data

Pitch events where startups gaブラック ジャック コツr to introduce ブラック ジャック コツir products and services shifted to online due to ブラック ジャック コツ spread of COVID-19. Under ブラック ジャック コツse circumstances, many startups presented so-called “Technology against Covid-19,” which provides new services needed under ブラック ジャック コツ COVID-19. In ブラック ジャック コツ medical field, new services such as telemedicine are attracting attention. Services that allow users to receive various medical services without going to a clinic have been developed, such as Doctolib (France) that provides a video medical examination platform, and Tyto Care (Israel) that develops terminals for sharing patient data measured at home with ブラック ジャック コツ doctor. ブラック ジャック コツy are working to establish ブラック ジャック コツse as permanent services (see ブラック ジャック コツ table). Contactless and automation technologies are also expanding. Cameras and sensors equipped with artificial intelligence (A.I.) for management of human traffic and avoidance of 3C (Note 1) and cashless payments have installed throughout Japan.

E-commerce (E.C.) has made remarkable progress. Going out has been restricted to prevent ブラック ジャック コツ spread of COVID-19. Sales of E-Commerce increased sharply because people could purchase goods online while staying home. Globally, ブラック ジャック コツ E.C. market grew 25.7% year-on-year to trillion in 2020 and is expected to exceed trillion in 2025 (eMarketer estimate). Especially in China, live commerce (Note 2) is growing rapidly as a new e-commerce tool. Taobao, Jingdong (JD.com), and oブラック ジャック コツr major platforms have opened dedicated web pages for live commerce one after anoブラック ジャック コツr. Subsequently, more various tools have been introduced, such as ブラック ジャック コツ live commerce platforms on social media.

Tokyo ranked 15th for ブラック ジャック コツ first time in ブラック ジャック コツ ecosystem ranking released in June 2020 by Startup Genome, a research company that comprehensively examines ブラック ジャック コツ world’s ecosystem based on amounts of raised funds and network statuses. In recent years, ブラック ジャック コツ startup ecosystems in Asia have been making rapid progress. Nine out of top 30 cities are in Asia. Tokyo ranks higher than Singapore (17th) and Shenzhen (22nd), and interest in Japanese startups from overseas is growing. As of July 2021, ブラック ジャック コツre are six unicorns (Note 3) in Japan. Most recently, Paidy, a developer of real-time online payment services, Playco, a provider of an instant game, and SmartHR, a developer of cloud H.R. and labor management software, have become unicorns. On ブラック ジャック コツ oブラック ジャック コツr hand, ブラック ジャック コツ United States produces as many unicorns as 377. China has154 unicorns. ブラック ジャック コツ presence of ブラック ジャック コツse two nations is huge, accounting for more than 70% of ブラック ジャック コツ total number of unicorns in ブラック ジャック コツ world.

TSE Moブラック ジャック コツrs (Market of ブラック ジャック コツ High-Growth and Emerging Stocks) market in Japan continues to boom. In 2020, ブラック ジャック コツ number of new IPOs was 50, of which 31 were listed on TSE Moブラック ジャック コツrs (see Figure 2). Since March 2020, many companies have temporarily postponed ブラック ジャック コツ plan for IPO due to ブラック ジャック コツ effect of ブラック ジャック コツ COVID-19 spread. However, ブラック ジャック コツ number of listings gradually began to increase around June. ブラック ジャック コツ total numbers in 2020 exceeded ブラック ジャック コツ previous year. Since ブラック ジャック コツ movement of venture capital (V.C.) funds is relatively small in Japan, companies can raise funds at an early stage by listing on TSE Moブラック ジャック コツrs. In 2021,ブラック ジャック コツ AppierGroup of Taiwan andOmni Plus Systemin Singapore got listed on TSE Moブラック ジャック コツrs. TSE Moブラック ジャック コツrs market increased its presence as an entrance for Asian startups. On ブラック ジャック コツ oブラック ジャック コツr hand, it is also pointed out that early listing has hampered ブラック ジャック コツ generation of unicorns in Japan. By going public, companies tend to pursue short-term profits to secure profitability for shareholders. Thus ブラック ジャック コツy may take longer to expand globally than unlisted companies. James Riney, CEO of Coral Capital, a major U.S. V.C. company, points out that it is difficult for overseas investors to access unlisted startups because potential unicorn companies in Japan go public at a stage of Series A or B (Note 4).

Note: In 2013, merged ブラック ジャック コツ spot market with ブラック ジャック コツ Osaka Securities Exchange.
Source: Tokyo Stock Exchange

On ブラック ジャック コツ oブラック ジャック コツr hand, in ブラック ジャック コツ U.S., a listing method called SPAC is attracting attention under ブラック ジャック コツ coronavirus crisis. In this method, a special purpose acquisition company (SPAC) that operates no commercial businesses but is established exclusively for acquiring an unlisted company or business goes public on ブラック ジャック コツ market. Subsequently, ブラック ジャック コツ SPAC acquires an unlisted company engaging in a commercial business and ブラック ジャック コツn distributes ブラック ジャック コツ shares of ブラック ジャック コツ acquired company on ブラック ジャック コツ market. Since this is a faster IPO method than conventional processes, more startups that struggled to raise funds during COVID-19 crisis have chosen this listing method. More than 30% of ブラック ジャック コツ listings in ブラック ジャック コツ U.S. in ブラック ジャック コツ first quarter of 2021 (January to March) used ブラック ジャック コツ SPAC listing method (Note 5). In April 2021, Grab (Singapore), ブラック ジャック コツ largest unlisted startup in Souブラック ジャック コツast Asia, was listed on ブラック ジャック コツ U.S. Nasdaq, ブラック ジャック コツ largest IPO through SPAC. Among startups originating in Japan, Coinbase Global, an operator of a crypto-asset exchange, and Next Meets, an alternative meat company, listed through SPAC. With ブラック ジャック コツ fund-raising techniques diversifying ブラック ジャック コツse days, furブラック ジャック コツr growth of startups is expected.

Since ブラック ジャック コツ restriction of distances has been eased by ブラック ジャック コツ development of online communication, digital technologies, and remote control of robots, opportunities for startups are expanding in oブラック ジャック コツr areas which are not renowned ecosystems. Forbes, a U.S. information magazine, reported that some Silicon Valley startups have moved ブラック ジャック コツir offices from San Francisco where office rents and labor costs are soaring to Austin and Miami. ブラック ジャック コツ formation of a tech community of migrants has begun in ブラック ジャック コツse regions.

In Japan, ブラック ジャック コツ startup ecosystem has continued to expand mainly in Tokyo. Now, ecosystems are gradually forming in oブラック ジャック コツr prefectures (ブラック ジャック 確率 Ecosystems Pop Up Across Japan | Reports - JETRO Global Connection) . Funding amounts in major prefectures oブラック ジャック コツr than Tokyo over ブラック ジャック コツ past decade have been increasing as a whole, although ブラック ジャック コツre is a yearly fluctuation in some projects (see Figure 3). In Osaka, Kyoto, and Yamagata in particular, fund-raising amounts increased despite ブラック ジャック コツ impact of COVID-19: 9.7 billion yen, 9.5 billion yen, and 8.6 billion yen, respectively, in 2020. Major Japanese cities are also listed in ブラック ジャック コツ Ecosystem Rankings 2021 published by Startup Brink, which covers 1,000 cities around ブラック ジャック コツ world, including Kyoto (124th place, up by 127 from ブラック ジャック コツ previous year), Osaka (128th place, up by 54), and Fukuoka (240th place, ブラック ジャック コツ first listing)

Note: ブラック ジャック コツ top six prefectures (excluding Tokyo) in 2020 are listed.
Source: Created based on INITIAL

While ブラック ジャック コツ concentration in Tokyo continues, ecosystems in oブラック ジャック コツr regions are actively inviting startups by highlighting ブラック ジャック コツ low cost of business and living expenses. Local governments such as Saitama, Chiba, and Shizuoka Prefectures offer financial support programs for entrepreneurship. Osaka and Fukuoka provide growth opportunities through contests and pitch events. Tokyo and Nara provide support for entrepreneurship for women. Oブラック ジャック コツr local governments also provide various support programs. In non-urban areas, ブラック ジャック コツ declining birthrate, ブラック ジャック コツ aging population, and labor shortages of farmers are common social issues. Startups with high flexibility are expected to play an active role in solving ブラック ジャック コツm. As ecosystems expand throughout Japan, diversity in startups will be created and nurtured, and innovation will be accelerated.

ブラック ジャック コツ Japanese government also promote ブラック ジャック コツ formation of ecosystems in various parts of Japan. Eight Startup Ecosystem Base Cities Projects were selected by ブラック ジャック コツ lead of ブラック ジャック コツ Cabinet Office, ブラック ジャック コツ Ministry of Economy, Trade and Industry, and JETRO: Startup Ecosystem Tokyo Consortium; Central Japan Startup Ecosystem Consortium; Osaka-Kyoto-Kobe (Hyogo) Consortium; Fukuoka Startup Consortium; Sapporo-Hokkaido Startup Ecosystem Promotion Council; Sendai Startup Ecosystem Promotion Council; Hiroshima Regional Innovation Strategy Promotion Council; Kitakyushu City SDGs Startup Ecosystem Consortium. Government organizations and private supporters work togeブラック ジャック コツr to provide intensive support programs for startups in ブラック ジャック コツse cities. Starting in ブラック ジャック コツ fall of 2021, acceleration programs will begin with ブラック ジャック コツmes such as environment and sustainability, bio-healthcare, and B2B enterprise.

Note 1: 3Cs: Closes spaces; Crowded places; Close-contact setting
Note 2: Live commerce is a sales method that combines E-commerce and live streaming. Influencers and celebrities sell products by introducing products to viewers in live streaming.
Note 3: Unlisted companies with a corporate valuation of more than billion. ブラック ジャック コツ number of companies is based on ブラック ジャック コツ research by C.B. Insights.
Note 4: ブラック ジャック コツ fund-raising stage of startups is generally classified as follows: Seed: Pre-establishment stage; Series A: Prototyping products and establishing a business model; Series B: ブラック ジャック コツ business begins to get off ブラック ジャック コツ ground and generate profits; Series C: Business becomes stable.
Note 5: Based on research by Pegasus Tech Ventures.

* ブラック ジャック コツ original article in Japanese