1. Ryo Umezawa Director, J-Seed Ventures Inc. Director / Investor, AllCoupon Japan Incubation in Japan 2011 APEC Business Incubation Forum © 2011 Ryo Umezawa - Confidential - All Rights Reserved.

3. Entrepreneur Business Development Market Entry Cross Border Alliance Startups 5 Years

4. © 2011 Ryo Umezawa - Confidential - All Rights Reserved.

5. J-Seed Ventures Inc. Venture incubator Founded in 2000 Self-funded 8 portfolio companies currently © 2011 Ryo Umezawa - Confidential - All Rights Reserved.

6. We start businesses that address real market needs with innovative business models and technologies. © 2011 Ryo Umezawa - Confidential - All Rights Reserved.

7. ventures © 2011 Ryo Umezawa - Confidential - All Rights Reserved.

9. High Personal Risk © 2011 Ryo Umezawa - Confidential - All Rights Reserved.

10. Venture Support Infrastructure © 2011 Ryo Umezawa - Confidential - All Rights Reserved.

12. The challenge Japan has the third largest economy in the world. But the population is shrinking and rapidly aging. And the younger generation is under- employed. Source: The Economist © 2011 Ryo Umezawa - Confidential - All Rights Reserved.

13. The solution “Between 1980 and 2005, virtually all net new jobs created in the U.S. were created by firms that were 5 years old or less.” “That is about 40 million jobs. That means the established firms created no new net jobs during that period.” Kauffman Foundation, April 2010 (NY Times) Entrepreneurs are the source of new growth © 2011 Ryo Umezawa - Confidential - All Rights Reserved.

14. However… Japan generates only $3 billion a year in venture funding for about 3,000 investment deals. US start-ups receive $30 billion a year in venture funding for about 4,000 investments. VC investments US: $29.4B, Japan: $2.8B © 2011 Ryo Umezawa - Confidential - All Rights Reserved.

15. The reason Low tolerance for failure Low social status Limited capital Narrow social networks Weak support infrastructure Over-regulation Smart people are discouraged from becoming entrepreneurs in Japan © 2011 Ryo Umezawa - Confidential - All Rights Reserved.

16. Who are we? We are experienced entrepreneurs. We have spent our careers building new businesses. Arne Koch Entrepreneur Rebate Networks Gmbh Ryo Umezawa Entrepreneur Pido Inc. Mobikyo KK AllCoupon Japan Jeffrey Char Entrepreneur Pario Software, Inc. Solis Corporation Sozon Inc. © 2011 Ryo Umezawa - Confidential - All Rights Reserved.

17. Our partners & networks © 2011 Ryo Umezawa - Confidential - All Rights Reserved.

18. Why we are doing OIC We believe Japan needs more entrepreneurs and the businesses they build. We believe Japan can lead the world in successful entrepreneurs and ventures. © 2011 Ryo Umezawa - Confidential - All Rights Reserved.

19. Our mission To make starting a venture one of the standard alternatives that smart and ambitious people consider. © 2011 Ryo Umezawa - Confidential - All Rights Reserved.

20. What OIC does OIC will educate and support entrepreneurs in Japan. Facilities Education Government Creative Environment Capital Network Mentorship © 2011 Ryo Umezawa - Confidential - All Rights Reserved.

21. OIC fills in the gap 321Year Facilities Mentorship Network Capital Needs Gov't funds VC funds Banks Corporates Supporters 321Year Angels OIC target area © 2011 Ryo Umezawa - Confidential - All Rights Reserved.

22. OIC Overview OICOpen Incubation Center ServicesEducation, mentorship, access to capital, networking, back office support, introductions FacilityCentral Tokyo facility; open design; meeting and desk space for 40 companies; 24x7 access; convenient to public transportation, restaurants and shops Target companies Early-stage Japanese ventures; overseas ventures entering Japan; ventures with innovative technologies and business models; preference for ventures targeting the world’s most urgent social and environmental needs StatusNot-for-profit entity © 2011 Ryo Umezawa - Confidential - All Rights Reserved.

23. OIC - the key differences An incubator run by entrepreneurs for entrepreneurs  Complete understanding of how to help entrepreneurs succeed Clear mission – to create long-term growth for Japan by educating and supporting entrepreneurs  No hidden agenda Completely independent  In a position to provide best impartial support to entrepreneurs Designed to be a sustainable, but not-for-profit organization  Fostering entrepreneurship is our #1 priority © 2011 Ryo Umezawa - Confidential - All Rights Reserved.

24. OIC - the key differences Run by entrepreneurs Run for entrepreneurs Open environment Open network © 2011 Ryo Umezawa - Confidential - All Rights Reserved.

25. Successful US incubators Social lendingPublishing software Payment solutions Wireless chips LEDsWireless devices Email softwareData mgmtLocation services Silicon Valley, CA Boston, MA Silicon Valley, CA © 2011 Ryo Umezawa - Confidential - All Rights Reserved.

26. case study : 500 startups © 2011 Ryo Umezawa - Confidential - All Rights Reserved.

27. Entering Japan

28. 19 Conclusion Entrepreneurs are vital for the future long term growth of Japan Entrepreneurs are under represented in Japan OIC will educate and support entrepreneurs Co-incubation network help growth internationally © 2011 Ryo Umezawa - Confidential - All Rights Reserved.

29. Ryo Umezawa ryo@j-seed.com ryoumezawa (E) umemac (J) www.ryoumezawa.com © 2011 Ryo Umezawa - Confidential - All Rights Reserved.