HAX in Japan

LATEST TRENDS IN HARDWARE STARTUPS

BENJAMIN JOFFE PARTNER HAX

Twitter: @benjaminjoffe Email: [email protected] Wechat: benjamin2301

9 years 1 year 4 years

Mechanical Engineer

Analyst

Founder/Consultant

Angel Investor (12)

2000 to

2013

Speaker (>200 talks)

Researcher(>1M views)

Writer

Partner 2013-now

US$300M Fund Global Top 3 Seed Investor (>600 startups)

HARDWARE LIFE SCIENCES SOCIAL/MOBILE

#1 HARDWARE SEED INVESTOR

STARTUPS223YEARS5

SEED 4 MONTHS + $75K FEE + $100K CASH

GROWTH 6 WEEKS

O TO 1 1 TO NSHENZHEN

Prototype to LaunchSAN FRANCISCO

Product to Scale

~2,000 /

YEAR

CANDIDATES

CHINA: 10%

U.S.+CAN: 50% EU: 25%

OTHER: 15%

90%

10%

JAPAN: < 1%

INDUSTRIAL

CONSUMERHEALTH

ENTERPRISE

10

20

30

40

2012 2013 2014 2015 2016

FEATURED STARTUPSSERIES B SERIES A SEED

STEM robots

Smart lighting solutions

IoT Connectivity & Cloud Solution

Instant camera with AR

Retail inventory robot

Commercial cleaning robot

Delivery robot

Lab robotNon-contact biosensors

Cocktail robot

Smart pet devices

SEED

Headphones for sleep

$9 Microcomputer

Sous vide cooking at home

Mobile blood diagnostic Self-equalizing headphones

VALUE OF HAX

30% PROGRAM

70% COMMUNITY

SCI-FI HAS ARRIVEDSCI-FIHAS ARRIVED00/

FLYING CAR

Slovakia

JET PACK

U.S.A.

ANDROIDS

Japan

PROBLEMS 01/ EXPENSIVE 02/ IMPRACTICAL

QUESTION #1 USABLE FUTURE

HAX | HARDWARE TRENDS 2017 | PAGE 20

PERFECTTIME FOR

HARDWARE

CHEAPER COMPONENTS

ONBOARDCPU

RETAILERSFOR HIGH-TECH

SMALL BATCHMANUFACTURING MICRO-CAPS,

REG A+…

CLOUD CROWDFUNDING& PRE-SALES

SOCIAL MEDIATO TEST DEMAND

SMARTPHONES

NEW & BETTERPROTOTYPING

TOOLS

QUESTION #2 R&D TO MARKET

MORE HIGH TECH GROWING GAP BETWEEN “MAKERS” & STARTUPS

First R&D (Japan) (not for sale)

1986

Segway (USA) $5,000

2001

Ninebot (China) $330

201630 YEARS FROM LAB TO MASS MARKET

CHALLENGES

BUILD PROTOTYPE (R&D)

CHALLENGES POSITION PRODUCT (STRATEGY) BUILD PROTOTYPE (R&D) ITERATE (DEVELOPMENT) BUILD PRODUCT (PRODUCTION) LAUNCH (PR & MARKETING) GROW (DISTRIBUTION & SALES)


01/HAX | HARDWARE TRENDS 2017 | PAGE 26

FASTER

PROTOTYPE

ROVENSO makes heavy-duty agile robotic rovers for rough terrains and remote intervention.

Switzerland

3 MONTHS LATER

LAUNCH

2017�8�30�毎日の習慣を作る子ども向けスマートウォッチ「OCTOPUS」販売開始

France

1 2 3 4

18 MONTHS

R&D1

2

5

4

3PrototypingProductionInvestment

World-Class STARTUPS World-Class RESOURCES

Sales


CHEAPER02/HAX | HARDWARE TRENDS 2017 | PAGE 38

COSTS EXAMPLE: DOG POOP PICKER

2011 GENERAL ROBOT ONBOARD COMPUTING

(Not a HAX company)

$400,000 (2011)

2017 SPECIALIZED ROBOT CLOUD COMPUTING

$400 (2017)

U.S.A.



EASIER

EXAMPLE PING PONG ROBOT

TRAINERBOT

Taiwan

HOW FAST? HOW CHEAP?


TEAM COST TIME

PERCEPTION(ESTIMATE) 10 $2M 4

YEARS


TEAM COST TIME

PERCEPTION(ESTIMATE) 10 $2M 4

YEARS

REALITY(2017) 2 $100K VC

+$250K KS18

MONTHS



PERSONAL

EXAMPLE HEADPHONES

CUSTOM-FIT

REVOLS: CUSTOM FIT

Canada

PERSONAL SOUND

NURA: TUNED TO YOU

Australia

low tones mid tones high tones

sens

itivi

ty



SPECIALIZED

EXAMPLE HEADPHONES

BRAINWAVES

KOKOON: FOR SLEEP

U.K.

MINDSET: FOR WORK

Canada

THE CASE OFROBOTS

SPECIALISTS

WAREHOUSING

AMAZON: WAREHOUSE ROBOTSACQUIRED KIVA FOR US$775M IN 2012

45,000 ROBOTS BY JAN. 2017

INVENTORY

SIMBE ROBOTICS

U.S.A.

CLEANING

AVIDBOTS

Canada



HEALTH

PORTABLE DIAGNOSTIC


BLOOD DIAGNOSTIC

CRIAMTECHTESTS BLOOD TYPEAND DISEASES

BBB TRACKS BLOOD MARKERS

(E..G DIABETICS)

South KoreaPortugal

AIRE is a digestive tracker that detects food intolerances(e.g. IBS causes) through the breath. Ireland

DIGITAL THERAPIES

SLEEP IN 10 MINUTES?

U.K.

TREAT DEPRESSION

Sweden

BACK PAIN

JAPETFrance

DIGITALTHERAPIES = THE NEW PHARMA?

INGESTIBLES

IMPLANTABLES

FUTUREOF HEALTH

HAX | HARDWARE TRENDS 2017 | PAGE 92HAX | HARDWARE TRENDS 2017 | PAGE 92

DUNCAN TURNERMANAGING DIRECTORHAX SEED

Donating your datamight help more than donating an organ”“DATA

IS THE NEW BLOOD


We have the opportunityto make the generation born now the healthiest in history.”

ALEX GORSKYCEO, JOHNSON & JOHNSON

“




SMARTER

SMART SPEAKERS

NESTTHERMOSTAT

PHILIPS HUELIGHT

ECOBEESWITCH

BELKINOUTLET

KEENVENT

SAMSUNGHUB

AUGUSTLOCK

RINGVIDEO DOOR BELL

FITBITFITNESS TRACKER

DROPCAMCAMERA

HYDRAOSHOWER HEAD

SAMSUNGROBOTIC VACUUM

A.I. & MACHINE LEARNING EVERYWHERE



INDUSTRY-CHANGING

MANUFACTURING

MANUFACTURING SMART ROBOTS LOW COST + COMPUTER VISION

SMART CO-BOT

China

MANUFACTURING DESKTOP MACHINES

U.K.

AGRICULTURE

PYCNO SECROP

FIELD SENSORS

EDYN




CHINA

IP

WORLD LEADER IN PATENTS SOON?

2016 NUMBER OF APPLICATIONS BY COUNTRY (‘000)

SOURCE: WORLD INTELLECTUAL PROPERTY ORGANIZATION

WORLD’S #1 & #2IN PUBLISHED APPLICATIONS TOP 10: 7 FROM ASIA, 3 FROM U.S.

4,123 PATENTS 3,692 PATENTS

USAJapanChina

GermanySouth Korea

FranceUK

NetherlandsSwitzerland

Sweden

0 15,000 30,000 45,000 60,000

-1%+3%

+40% IN 2017?+45%


INVEST

USA$14.5B

CHINA$10.6B

EUROPE$3B1Q 2017

3%

35%

4%10%

48%

USAEuropeIndiaChinaRoW

SOURCE: DOW JONES VC EDGE 1Q 2017

EQUITY INVESTMENT BY REGION INTO VENTURE-BACKED COMPANIESCHINA VC

INVESTMENT IS #2 GLOBALLY


SHENZHEN

THE SILICON VALLEY OF HARDWARE

Akihabara Huaqiangbei x20

SHENZHEN & GUANGDONG

MANUFACTURING SUPPLY CHAIN

COMPONENT MANUFACTURERS

TECHNICAL WORKFORCE

ASSEMBLY SUPPLIERS

SHENZHEN SUPERPOWERS

SKILLS

ANY SCALE

SPEED

SAVINGS

ROBOTICS


ROBOT MAKERS

100,000

200,000

300,000

400,000

500,000

Fanuc

Yaskaw

aABB

Kawasa

kiNach

iKuka

DensoEpson Adept

25,00045,00080,00080,000100,000110,000

250,000300,000

400,000

SOURCE: ROBOTICS & AUTOMATION NEWS, 2016

ROBOTS PURCHASED BY COUNTRY

(SOURCE: IFR, 2015)

CHINA BUYS

ROBOTS20,000

40,000

60,000

80,000

China

South Korea

Japan USA

Mexico

Canada

2,7004,700

27,00035,00038,000

69,000

SALES 2015: 248,000 (+12%YOY)

+20%YOY

Old China

New China

INVENT

DJININEBOT

MAKEBLOCKUBTECH

NEXT INNOVATORS

DJININEBOT

MAKEBLOCKUBTECH

NEXT INNOVATORS

>$10B

>$1B

>$1B

MAKEBLOCK ($200M val.)

プログラミング教育×ドローン＝「Airblock」7月14日から国内販売開始 2017�7�6�

For innovation, China Today is like Japan in the 80’s”

SEAN O’SULLIVAN, FOUNDER, SOSV/HAX

“


SCALE

MOBIKE

START: 2015 BIKES: 5M USERS: 100M INVEST: $1B

BUY


BUYING INNOVATION

CHINESE APPLIANCE MAKER MIDEABOUGHT GERMANY’S KUKA FOR US$4B



BUYING DESIGN

PHILIPPE STARCK DESIGNED THE MI MAX




JAPAN

ECOSYSTEM ANALYSIS

SILICON VALLEY

01/ MARKET 02/ CAPITAL 03/ TALENT 04/ INFRA 05/ REGULATIONS

01/ MARKET 02/ CAPITAL 03/ TALENT 04/ INFRA 05/ REGULATIONS 06/ CULTURE

WHY? SAFETY NETS!

CORPORATIONS HIRE STARTUP TALENT

IN OTHER COUNTRIES

SPECIAL CASE: FRANCE


EXHIBITORS PER COUNTRYSTRONG: FRANCE & KOREA WEAK: JAPAN & GERMANYHAX: 83 STARTUPS!

USACHINA

FRANCETAIWAN

SOUTH KOREAHONG KONG

HAXCANADA

UKJAPAN

GERMANYISRAEL

0 450 900 1350 1800

CES 2017:

2015 110 startups

2014 40 startups

2016 190 startups

2017 238 startups

WHY? SAFETY NETS!

MOST IMPORTANT IS: CORPORATIONS HIRE STARTUP TALENT

BUT ALSO

Unemployment benefits for 4-24 months

*even when starting a company

Sabbatical from job from 6-24 months

(no pay)

ROLE MODEL+ RE-INVESTMENT

Xavier Niel, French Tech Billionnaire

Campus for 1,000 startups Mr. Niel invested $270mln

JAPAN

Ricoh, Seiko Group, Sharp Corporation, Sony, TDK, Toshiba and Yamaha.

WHERE ISTHE NEW SONY?

MARKET CAP

M&A

RAISED $30M

Takuma Iwasa, Founder, Cerevo

01/ MARKET 02/ CAPITAL 03/ TALENT 04/ INFRA 05/ REGULATIONS 06/ CULTURE

01/ RE-USE TALENT

01/ RE-USE TALENT = LOWER RISK FOR STARTUPS

02/ GLOBAL PERSPECTIVE

Takakazu Fujimoto

HAX

Takakazu Fujimoto

“The most important thing is to go abroad and see Japan from outside the country.”

Dr. Shuji Nakamura - Nobel Prize for Physics (2014)

A NEW MEIJI

A NEW MEIJI

IT HAPPENED BEFORE

MBA, 1993 BA Economics, 1980MBA, 1990

01/ GLOBAL EXPERIENCE 02/ USE YOUR ENGLISH 03/ CORPORATIONS HIRE STARTUP TALENT

FROM GALAPAGOSTO A NEW MEIJI

it’s not

vs. vs.

it is

+ +

THANK YOU !

[email protected]@BENJAMINJOFFE"

✉www.slideshare.net/haxco

Technology

HAX in Japan