When Japanese Depth Meets American Speed

Forbes

03-07-2025

Yuki Shirato - Managing Director of Techstars Tokyo (left)
There's something compelling yet often misunderstood about Japan's startup ecosystem. The country has long ranked high on the global innovation index thanks to its deep research culture, world-class engineering, and academic rigor. And yet, according to CB Insights, Japan currently has only eight active unicorns, compared to more than 700 in the U.S. (These figures exclude IPOs and acquisitions, though even with those included, the proportional gap remains shocking.)
To those used to Silicon Valley-style entrepreneurship where speed and bold vision often produce unicorn after unicorn, Japan can feel like a paradox. While economists and historians might offer countless explanations for this disparity, this article focuses on one often-overlooked factor: culture. Specifically, how founders in Japan and the U.S. differ in how they build, pitch, and ultimately scale their innovations—and what each ecosystem can learn from the other.
Innovation Isn't Lacking in Japan. It's Just Expressed (and Received) Differently
Much of Japan's innovation still stems from university labs and public R&D institutions. But turning that innovation into a fast-growing startup is still a relatively new concept. In a culture where excellence is expected and precision is the standard, founders often delay launch until the product is nearly perfect. This commitment to quality can be an advantage but it can also slow momentum.
Japanese founders often build companies the way they would a scientific paper: carefully and with rigorous attention to detail. 'Japanese founders are very diligent and they do not overpromise. This can be good and bad, depending on the expectations of the person you are communicating with,' says Yasemin Karatas, Marketing Coordinator at Google for Startups Japan.
Noriko Shibao, Venture Partner at the Japanese impact fund UNERI sees this discipline as a core strength: 'One of the biggest strengths of Japanese founders is their ability to patiently and sincerely build trust—something that's absolutely essential for creating meaningful social impact. In Japan, trust is often considered a form of capital, and earning it requires integrity and a mindset of continuous improvement.'
Meanwhile, the U.S. Builds Fast—Sometimes Too Fast
In the U.S. the mindset is almost the opposite: speed is celebrated, and vision is a form of currency. American founders are encouraged to pitch big ambitions early, often long before a product is fully proven. 'They have the eagerness and passion that they convey. Also the mindset that they will target the world,' Yasemin observes. And while speed to market and a bold vision for the future are undeniably ingredients behind many successful unicorns, it's important to recognize that the same mindset has also fueled some of the most notorious failures in startupland—from Theranos and WeWork to FTX and Frank. In fact, this dynamic has become so visible that Forbes published Hall Of Shame: The 10 Most Dubious People Ever To Make Our 30 Under 30 List in 2023.
Earnest Sweat is a Series A-focused investor passionate about backing founders who are transforming industries with applied AI, vertical software, marketplaces, and tech-enabled services. Over the past decade, he has supported entrepreneurs who have collectively created more than $18 billion in enterprise value. Along the way, he has witnessed both the promise and pitfalls of a growth-at-all-costs mentality.
'I think that phrase [move fast and break things] had its place, but it aged out. The new frontier is 'move fast and build trust.' Founders today are scaling in a world where accountability, transparency, and community expectations are much higher. Velocity still matters—but it has to be paired with credibility and staying power.'
What It Looks Like to Navigate Both Worlds
Hiroto Yamazaki is the founder of Umami United, a Japanese food tech startup creating plant-based egg alternatives to help consumers with dietary restrictions and support food manufacturers facing egg price volatility and supply chain challenges.
Hiroto explains how the company's purpose evolved over time: 'Initially, the focus was on serving consumers with dietary limitations—a mission centered on supporting minorities. However, I realized that addressing only minority issues wouldn't broaden our impact. That's why we shifted toward solving mass-market problems, such as the rising cost and supply instability of eggs in the [global] food industry.'
Asked how he balances Japan's perfectionism with Western iteration, Hiroto says, 'To me, startups are inherently about navigating the unknown. If you wait until everything is perfectly researched, the conditions may have already changed. At Umami United, we value a 'learn-as-you-go' approach. In that sense, our culture leans more toward the Western emphasis on speed and iteration.'
Where Culture Affects Capital
When startups cross borders, culture becomes the hidden variable in how ideas are perceived. Communication styles, gestures, and tone are read as signals of readiness and conviction—sometimes fairly, sometimes not.
Yuki Shirato, Managing Director of Techstars Tokyo, has seen this from both sides: 'Cultural differences play a big role, especially in communication. Having lived and worked across 5 countries, including Japan and the United States, I make a conscious effort to filter a founder's presentation through an understanding of their cultural background, to not misjudge their potential based on style alone.'
Yuki Shirato - Managing Director of Techstars Tokyo
He adds that 'Japanese startups often place a heavy focus on building high-quality products and leveraging deep technical expertise. Japan remains globally competitive in areas like advanced manufacturing, robotics, materials science, and creative fields like anime and gaming.'
Noriko points out that even in the pitch process, cultural habits can sometimes become barriers: 'Japanese founders often prefer to 'let the results speak for themselves,' which can make it harder to present bold, forward-looking visions. This is partly influenced by the conservative nature of many leading VCs in Japan, who tend to favor steady traction [when it comes to] areas like SaaS.' She adds, 'Pitch decks also tend to be packed with information—something Japanese investors are used to. But for overseas investors, all that detail can feel overwhelming or even off-putting. It might just be that Japanese founders aren't as comfortable with delivering a simple, clear message.'
When it comes to American investors evaluating founders in overseas markets like Japan, Earnest shares his approach: 'Cultural context plays a massive role. In some regions, modesty is a signal of professionalism—not a lack of ambition. I try to decenter my own defaults and look for signals beneath the surface—how well a founder reads the room, how they gather consensus, how they translate vision into momentum. I'm not looking for a single archetype—I'm looking for authenticity, adaptability, and a deeply held belief that this problem needs solving now.'
A Note on Female Founders
Cultural dynamics are especially pronounced for women in Japan's startup ecosystem. Sumiyo Tsuchikawa, Japan Country Manager for HearstLab International, shared what she's observed:
'From my observations, Japanese female founders often lead with a remarkable quiet strength. This strength is built upon thorough preparation, a long-term perspective, and a strong sense of responsibility that extends beyond financial gains to the well-being of their teams and communities.'
She adds, 'A significant barrier is the strong expectation of conformity in various aspects of life—social, cultural, professional, and even familial. This can unfortunately stifle the visibility and the necessary risk-taking mindset for startup founders.'Sumiyo Tsuchikawa - Japan Country Manager for HearstLab International
Sumiyo believes cultural norms around humility also shape how women pitch: 'The deeply ingrained values of humility and consensus-building in Japanese leadership culture often lead women founders to be more reserved and avoid 'over-selling.''
When asked what advice she would give other women founders in Japan, she offered this encouragement: 'Be bold in articulating your vision and ambitious in presenting your business plan. While your traction and execution will certainly speak volumes, international investors also want to sense your ambition and the potential for significant growth, in my opinion.'
What Each Ecosystem Can Learn From the Other
Japan and the U.S. are not opposites but rather complimentary in that each holds lessons for the other.
From Japan, American founders can embrace the discipline of building products that work flawlessly. 'Japanese startups often start by targeting major domestic corporations or Japanese consumers,' Noriko says. 'The quality standards are extremely high, but if they can meet those expectations, it earns them a strong level of trust.'
UNERI Pitch Competition - Founders and Judges
From the U.S., Japanese founders can borrow conviction and the courage to think bigger—and the even greater courage to pivot when necessary. Reflecting on lessons from his early years building Umami United, Hiro advises: 'Stay lean and test hypotheses fast. One mistake we made was building up logistics and inventory in the U.S. before confirming strong customer demand. We ended up stuck trying to sell products that weren't resonating, unable to pivot to new strategies. Today, we prioritize local testing, focus on nurturing repeat customers, and verify our Problem-Solution Fit before scaling. This approach helps reduce risk and fosters long-term, sustainable growth, especially in foreign markets where the margin for error is smaller.'
Earnest captures what matters most in any geography: 'I'm drawn to the moment when a founder's ambition outruns their resources. That early-stage window—especially at the Series A—is where I believe conviction and clarity of thought matter most.'
Building the Future Together
The future of venture-backed startups isn't just global—it's intercultural. The founders who will thrive are those who can navigate different cultures fluently, whether it's understanding diverse customer needs or collaborating effectively with international teams.
Reflecting on what lies ahead in the world of Japanese innovation, Noriko shared her perspective: 'I see great potential in technologies that turn social challenges—like Japan's aging population—into opportunities, as well as food tech that captures the essence of Japan's unique sense of taste and healthy food culture. These innovations could well take root in Japan first and go on to set global standards. This is made possible by Japan's strong academic environment and the exceptional talent of its young scientists and engineers, who continue to drive world-class innovation.'
When Japanese depth meets American speed, the result won't just be more unicorns. It will be stronger ones—companies built to last for generations and succeed across many cultures.