Key strengths of the Kansai region

• The Kansai region with major cities such as Osaka, Kyoto and Nara has unique advantages which are not easily replicable globally
• With key assets, such as its rich history spanning more than 1,000 years, deep culture and focus on food, the Kansai region remains incredibly attractive to foreign startups, especially in the TravelTech and FoodTech space
• Its catchment area of ~24M people also makes it one of the most densely-populated metropolitan areas in the world, and again this is attractive to startups that might be looking to reach a B2C customer segment
• Corporates such as Hankyu Hanshin, JR West and Mitsubishi Electric have significant presence in the region which leads to vibrant industries and a strong business ecosystem. This helps startups looking to expand to Japan access a pool of potential B2B customers in industries related to Smart Cities
• A strong talent pipeline due to the presence of leading universities in Kansai is another key factor for startups when making their decision in expanding to Japan

Why did Rainmaking decide to put down roots in Kansai

• Through our strong partnerships with corporates such as Hankyu Hanshin Properties, JR West Innovation, Dentsu, The Yomiuri Shimbun, Japan Tobacco, Sakura Internet, SMBC and Mitsubishi Electric, we made the decision to start our world-renowned Startupbootcamp Scale program right here in Osaka.
• As our goals are focused around creating commercial impact for mature startups looking to expand to Japan and for our corporate partners, Kansai with its strong business ecosystem made it easy for us to make our decision to start in Osaka for Japan.
• By ensuring our programs are focused on the design and management of Proof-of-Concepts, we help to ensure startups are able to test out the Japanese market , secure their first customers and make informed decisions on market expansion through our programs

Problems / weaknesses / bottlenecks faced by foreign startups

• In my experience, most foreign startups face similar challenges all around the world
• Hiring and talent are always one of the most important factors for startups when they grow, and a highly-skilled and educated workforce is crucial for the success of startups. Although Kansai produces these graduates and experienced professionals, the culture of working in startups is only beginning to take shape with more people opting for what is perceived as the “riskier” career path when joining startups. As the ecosystem continues to mature, foreign startups should find it much easier in the future on this front to hire and retain high-performing talent in the Kansai region
• Another bottleneck faced by startups currently is the unclear immigration rules around long-term visa holders and short-term business travelers to Japan. Due to the COVID-19 pandemic, Japan has shut its borders completely multiple times in 2021. This is not conducive to the expansion of startups to Japan, and makes other locations such as South Korea and Taiwan more attractive as potential destinations for market expansion into Asia Pacific
• Finally, one of the biggest problems faced by foreign startups during international expansion is the difficulty in securing their first customers. This is where Rainmaking / Startupbootcamp hopes to help, by facilitating Proof-of-Concepts between leading startups and Kansai-based corporates, we aim to create the best possible environment for PoCs to succeed and for startups to flourish, which directly helps their market expansion initiatives

On behalf of Rainmaking, we would like to express our sincere gratitude to Mr. Kentaro Nagao and the GIF organising team from OCCI for inviting us. We hope that together, we can continue building up the startup ecosystem in Kansai and advance the progress of innovation in Japan.