LESSONSLEARNT
CONNECTING WITH THE

ASIAN

STARTUPECOSYSTEMS

1The purpose of Innovation Lab Asia (ILA) has been to strengthen
collaboration between the Danish startup ecosystem andseven innovation hubs in Asia: India, Japan, Korea, Singapore,
Malaysia, Taiwan and China Bay Area. During our three yearsof working with these ecosystems, ILA has gathered a vast
amount of information that is relevant to all Danish and Nordic
stakeholders who may be interested in connecting with peersin Asia.
We’ve experienced both failure and success, witnessed thecomplexity of Asia, and seen new trends emerge as we moved
along. We have gathered specific insights on how, where

PREFACEand why to engage with Asian ecosystems. We’ve seen firsthand the limitations that hamper Danish internationalization
towards Asia and identified measures that could streamline
the process.
This report, and the ILA Project overall, have been createdthrough a collaboration between TechBBQ and Asia House,

This report provides an extract of the insights generated by
the Innovation Lab Asia project, and how these lessons will
shape our future plans, projects and activities.

along with help from our colleagues at Copenhagen Capacity,
Nordic Innovation House Tokyo, and many other great Nordic
partners we’ve connected with over the course of the project.
We would like to extend a special thanks to The Danish Industry
Foundation for supporting this project.

For further information and guidance, contact:
ASIA HOUSE

COPENHAGEN CAPACITYPeter Johansen, pj@asia-house.dk

Oliver Hall, ohall@copcap.com (Japanese speaker)

Kenken Aoshima, ka@asia-house.dk (Japanese speaker)

Lisa Mallner lma@copcap.com

TECHBBQ
Julian Nielsen, jni@techbbq.org (Japanese speaker)
23

INDEX

4

06
09
12
16
19
20
23

Go East...
Learning by doing
Exploring Asia
India
Japan
Korea
Singapore

24
27
28
32
36
38
42
44

TaiwanChina Bay Area
Struggling with Asia
Follow the money
Size matters
Bridging the gap
The method
Turning the page

5

The purpose of ILA was to promote theinternationalization of the Danish startup ecosystem
towards Asia, and thus strengthen their access to
Asian markets, funding, and talent.

GO EAST...
The project was motivated by the publishing of the Global

internationalization in Asia. In fact, during the project we would

Entrepreneurship Index (GEI) in 2018, which found that thesee the consequences of this abstract ranking manifest itself

otherwise strong Danish startup ecosystem was struggling

very concretely.

with internationalization, especially compared to our neighbors
in Sweden, Finland, and Estonia. In fact, this was the main

A second motivation of the ILA project was the fact that

weakness of the Danish startup ecosystem, according to theinnovation ecosystems in Asia are growing rapidly. According

GEI.

to the authoritative Global Startup Ecosystem (Genome)
Report 2020, 30% of the top 30 global ecosystems areThis lack of internationalization was — and is — reflected on

now found in Asia, up from 20% in 2012. Tokyo and Seoul aremany levels. Lack of network and connectivity between Danish

specifically mentioned as the new entrants to the top 20 sinceand Asia stakeholders (community organizations, investors,

2019, while Shenzhen and Hong Kong (also known as the China

founders etc.); limited or fragmented knowledge in Denmark

Bay Area) have moved into the Top 30. Moreover, Asia is moreof opportunities and access points in Asia and vice versa;

relevant than ever to investors. In fact, the aggregate value of

few or no Danish tech startups looking to scale to Asia; andventure capital deals in Asia increased from USD 26 billion inlimited willingness by Danish investors to support activities

2014 to USD 129 billion in 2018 (Statista, 2021).

in Asia all contribute to Denmark’s relatively low level of

6

7

THE

INNOVATION LAB ASIA PROJECT

Purpose:
Original project partners:
Associate partners:
Original funding:Actual expenses:
Project duration:
Website:Project manager:
Lead consultants:

To strengthen the collaboration between the Danish
and Asian startup ecosystems.
Asia House & TechBBQ
Copenhagen Capacity & Nordic Innovation House TokyoDKK 4.3 million
DKK 4.0 million
2 years plus 1 year extension due to COVID-19
innovationlabasia.dk
Peter Johansen
Julian Nielsen, Lisa Mallner, Oliver Hall, Kenken Aoshima

LEARNING BY DOING
In October 2018, the ILA project set out to map themain Asian innovation ecosystems and identify local
stakeholders with international focuses and mandates.

This mapping was based on a combination of desk research and

The first track focused on the China Bay Area. A special focus

field trips to each location, and the findings were condensedof the report was Shenzhen, which has become the world’s

into seven reports. These were printed and presented at thestrongest hub for prototyping and manufacturing, and has the

TechBBQ Conference in September 2019, along with a series offastest growing startup ecosystem in China. As it stands, there

Asia-related events.

are no official Danish platforms in Shenzhen, and therefore
the visibility of the Danish startup ecosystem remains limited.

In October 2019, ILA initiated its second phase, to establish

We therefore deemed it possible that ILA - with relatively

more in-depth collaboration with select Asian hubs.

few resources - could make a difference: create a stronger
awareness and establish beneficial partnerships, especially for
Danish hardware startups.

8

9

ENGAGING

In November 2019, ILA organized a TechBBQ-branded event inJapanese VC funding activities towards the Nordics, especially

To satisfy these inquiries, in October 2020 ILA initiated an

Shenzhen together with our local partners: the Nordic-China

Finland and Estonia. A secondary purpose was to promoteambitious program for showcasing Nordic startups to JapaneseStartup Forum and Troublemaker, a Dutch-Nordic Makerspace

this narrative in the Japanese investor community, hopefully

stakeholders through a series of sector-specific reports.

in the heart of the city.

contributing to a band-wagon effect.

Leveraging on experience, the reports were available in both
English and Japanese,and were followed up with Japanese-

Despite — and in keeping with pandemic-related restrictions,

One of the main takeaways from SLUSH 2019 was that

language events with trusted partners in Japan. Thesewe were able to organize and carry out a second event inJapanese stakeholders desired information on the Nordic

initiatives turned out to be highly successful and generated

November 2020, which is a testament to the value of goodstartup ecosystem, but lacked easy access to this information.

real investment leads for many of the participating startups.

partners on the ground. We are confident a third event will

Especially in print, and in Japanese language. Thus, in Januarytake place in 2021. In fact, launching TechBBQ-branded pop-

2020, ILA published its first report directly targeting the

From the very start the ILA project has been highly exploratory,

up events with trusted partners in Asia has proved to be an

Japanese audience: Nordic Innovation - Europe’s unicorn

not just in relation to the initial mapping of the sevenefficient and low-cost method for raising the Danish and Nordic

factory. This report was printed and disseminated to Japanese

ecosystems, but also in figuring out how best to engage withflags in foreign ecosystems.

stakeholders across five cities during ILA’s first (and only)

Asian stakeholders. The exploratory nature was hinderedbusiness trip to Japan in February, just before the COVID-19

somewhat by the ongoing pandemic, which cancelled

pandemic caused global travel and business shutdowns.

business trips and tech events and nullified the prefered way

The second major track focused on attracting VC funding fromJapan. In November 2019, ILA launched the report Japanese

10of interacting with Japanese stakeholders, who usually place

Investments to the Nordics at SLUSH in Finland. The report

During the ensuing lock-downs, ILA sought to develop new

much importance in physical meetings and trust building

was produced in collaboration with the inbound investment

models of engagement with Japanese stakeholders. The initialactivities before taking the relationship to the next level.

agency, Copenhagen Capacity, and the Finnish-Japanese fundstrategy was to continue promoting the Nordic ecosystem in

Nordic Ninja VC.

Japan via direct meetings, Japanese language newsletters,

Over the following pages, we will share our lessons learned

and virtual conferences. However, these engagements only

from our many activities, hoping they may be of relevance for

The report was written to create awareness in the Nordic

led to still more inquiries about potential Nordic startups that

others following us on a journey to Asia.

startup community that there has been an exponential rise inwould be relevant for Japanese investors.

WITH

CHINA

The extent to which ILA should engage with
China was a matter of debate from the very start.
The pros were obvious: China is Denmark’s largest
market in Asia, and has the world’s strongest
investor ecosystem outside the USA. But China
is also huge and quite well covered by several
specialized Danish organizations. Could ILA makea real difference?
We decided to narrow our scope to China’s
startup hub Shenzhen, which is located in a
special economic zone especially suited tostartup businesses, and focused on identifying
partners for prototyping. In fact, Danish hardware
startups were already interacting with Shenzhen,
regardless of available resources, so it seemed
logical to try to help understand best practices
for startups that come to Shenzhen in the future.
Our focus on China generated — for the firsttime ever — pushback and uneasiness from
Danish stakeholders. We also encountered someapprehension about accessing Chinese funding,due to the nebulous role of the Chinese state
involvement, and the reputed assertive nature ofChinese investors.
We recommend, therefore, that concerns be kept
in mind and handled head-on when startups look
to China.

11

EXPLORING ASIA

ILA originally decided to focus on the previouslymentioned seven Asian tech hubs of India, Japan,
Korea, Singapore, Malaysia, Taiwan and China Bay Area
based on a general assumption that these locations
provided the greatest opportunity for Danish startups
in terms of market opportunities, investments, and/or talent.

The selection also reflected the very exploratory nature of
the project, and the fragmented knowledge about Asian
ecosystems in Denmark. Hubs in Indonesia, Vietnam,
Thailand, The Philippines, Pakistan, Bangladesh, Sri Lanka,
Northern India, and others could also be interesting for Danish
stakeholders, and merit further investigation.
The outcome of the investigation was distilled into an ecosystem
report for each of the selected hubs, except Malaysia, which we
found was too nascent to merit a separate report.

1213

INNOVATION LAB ASIA PUBLICATIONS•Startup ecosystem guides to India, Japan, Korea,
Singapore, Taiwan, and China Bay Area.

•

Estonia: A case story•

Japanese Investments: Expanding to the Nordics updated 2021•

Nordic Innovation: Europe’s unicorn factory (in English and Japanese) - updated 2021•

Nordic Healthtech: Showcasing the ecosystem and
24 startups (in English and Japanese) - updated
2021•

Nordic Fintech: Showcasing the ecosystem and 24
startups (in English and Japanese)•

Nordic Urbantech: Showcasing the ecosystem and
30 startups (in English and Japanese)•

Newsletters on the Nordic startup ecosystem (inEnglish, Chinese and Japanese)•

Surveys, blogs and numerous articles in the media…

The format and scope of the reports was subject to muchinternal debate. The key question was: what would havethe greatest impact in terms of shifting the Danish startup
ecosystem’s focus towards Asia? A comprehensive report on
the Asian ecosystems, providing in-depth analysis of trends
and tendencies, and a heavy reliance on facts, figures, andacademic methodology? Or a series of quick reads with a more
promotional focus? Each of the two strategies had their merits
and catered to different audiences.
ILA eventually decided on the latter, more promotional strategy
targeting startups, founders, and investors, publishing six
ecosystem reports that set out to describe the “personality” ofthe selected innovation hubs in terms of maturity, strengths,
weaknesses, and level of internationalization.
All the reports introduced main stakeholders with international
focuses, including insights on their mandates, track records,
and areas of interest. All the reports were catered to a
Nordic audience, with a particular focus on strongholds andstakeholders that are relevant to the Nordics. The reports werelaunched at the TechBBQ Summit in 2019 along with a series ofside events focusing on Korea, Japan, and the China Bay Area.
The following pages will provide a brief summary of the“ecosystem personalities” of each of the selected hubs. For
more detailed information, please refer to the original reports,
which are available on Innovation Lab Asia’s website.

14

15

INDIABANGALORE

The innovation ecosystem of Bangalore is the most vibrantthe financing and resources required to address an emerging

in India. It is highly internationalized, has a strong contingent

market, and the scalability to satisfy the massive Indian market.

of foreign and Nordic corporations, and boasts the greatest
density of incubators and accelerators in India. Danish startups

Also, Danish startups may have difficulty accessing funding inlooking to scale to India should consider Bangalore their first

India, as local investors tend to fund mainly within the Indian

point of entry.

and South Asian region.

India is the world’s largest emerging market, with a huge

Nonetheless, India shouldn’t be ignored by the Danish startup

demand for smart and cost-efficient solutions within water,

community. Not only are the direct market opportunities

waste, energy, health, food, agriculture, and more. However,immense, especially within B2B, but India is also a suitablevery few Danish startups are present in Bangalore or India, for

testbed for co-creation and product adaptation within

which there are several reasons.

emerging markets.

Danish products are rarely “plug-and-play” in an Indian
context. They need to be adapted to the Indian market, and thisusually takes time and costs money. The startups often lack

16

17

JAPANTOKYO

Japan is Denmark’s second largest export market in Asia andinvestors for opportunities in the Nordics. Some are alreadythe world’s third largest economy. By all accounts, Japan

LPs in Nordic VC funds (mainly in Finland and Estonia), while

will remain a key market for Denmark in the years to come.

others are accessible in Tokyo. From our experience, Danish

In addition, Japanese consumer patterns match Danish andstartups should absolutely consider Japan when looking for

Nordic strengths. The Nordics carry a strong brand value

funding opportunities.

in Japan, not just in terms of a common affinity for quality
craftsmanship and elegant minimalism. Japan is one ofTokyo is the undisputed center of the Japanese innovation

Asia’s wealthiest countries, with a high demand for premium

ecosystem; it has the highest number of startups and attracts

products.

the greatest amount of funding. In 2018, 77% of all Japanese
VC investments went to Tokyo-based enterprises.

However, the primary reason for Danish startups to consider
Japan is probably access to potential funding. The Japaneseinnovation ecosystem is presently experiencing a boost ininvestments, especially from Corporate VCs. As the Japaneseinnovation ecosystem is still relatively underdeveloped (though
growing), there is a growing interest amongst Japanese

18

19

KOREASEOULThe 2020 Startup Genome report dedicated an entire chapter

the market is large and advanced, there is limited foreign

to the “The Meteoric Rise of Seoul’s Startup Ecosystem,” adding

presence and many Koreans feel more comfortable working

that the Seoul Metropolitan Government has made some ofwith people they know, as is often also the case in Scandinavia.

the most “impressive investments in its startup ecosystem

There are few soft-landing programs for foreign companies,

worldwide... [by committing to spend] USD 1.6 billion to develop

and the large Chaebols (Korean conglomerates like Samsung

its ecosystem over the next three years along with the nationaland LG) dominate the innovation space.

government and private investors”. As a result, “Seoul scored 9
out of 10 on our investor activity index this year”.

Nonetheless, Korea holds attractive prospects for Danish
startups, especially where Denmark has strong capabilities

This growth in Seoul’s startup ecosystem has sparked new

on a global scale and/or where Korea is a leading actor inopportunities for international startups, especially in fields

technology development, such as in Audio, Blockchain,

where Korea already has a stronghold thanks to local talent,

Fintech, Maritime technologies, Greentech and IoT. Given the

resources, and infrastructure.

dominant position of the large Korean conglomerates, startups
should consider engaging with these to gain access to local

For international startups looking to scale into the Korean

partners and clients.

ecosystem, connecting with local partners is critical. Though

20

21

SINGAPORE

Singapore is one of the world’s most dynamic innovation

Singapore has several popular crowdfunding platforms, such

ecosystems, benefitting from solid governance, pragmaticas MoolahSense and FundedHere.

policy, and a strong VC environment.
However, these advantages have also created a distorted
Unlike many other countries, Singapore allows foreigners to

picture of Singapore as a startup center. While manyown 100% of their companies, meaning you don’t need local

entrepreneurs choose to have their HQ in Singapore in

partners to establish a company. In most cases, you can alsoorder to raise venture capital and enjoy the benefits of good

operate your business from your home country, avoiding theSingaporean governance, it is common to find the bulk of theirhigh cost of living in Singapore.

teams and most of the actual innovation taking place in themarket where they are launching, such as Malaysia, Indonesia,

Another main attraction of the Singaporean ecosystem isor Vietnam.

the prospect of funding. Recent unicorns like Grab (originallyfrom Malaysia), and Trax (Israeli founded), have establishedthemselves in Singapore due to the access to VCs and theclose regional markets in East and Southeast Asia. In addition,

22

23

TAIWANTAIPEI

Taiwan’s startup ecosystem is not as well-known and developed

From a Danish perspective, it is worth noting that the public

as neighboring Shanghai, Singapore, and Hong Kong, but thesector in Taiwan has a strong focus on establishing smart cities

island has some unique advantages for early-stage startups

and adopting more sustainable energy sources. The smart city

looking to scale into Asia.

strategy opens possibilities for Danish startups in a range ofsectors including IoT, Fintech, Edtech, Transportation and

The ecosystem in Taiwan is characterized by heavy investment

many others. Secondly, the focus on transforming the energy

from the public sector and a relatively conservative VC

sector to a greener and more sustainable model paves the way

landscape. And while Taiwan’s startup ecosystem lags behindfor startups within Energy and Cleantech, where Denmark hassome other parts of Asia due to an absence of adventurism

a strong reputation.

and a uniform pool of talent, it has been exceptionally active

24

in recruiting foreigners to help grow the burgeoning startup

The business environment of Taiwan is generally stable, andecosystem, mostly from the ASEAN region. This means thatthe costs are lower than in Korea and Japan. Additionally,

government startup programs are significantly more open to

Taiwan presents fewer risks in terms of intellectual property

internationals compared to elsewhere in the region.

rights compared to mainland China and other parts of Asia.

25

CHINA BAY AREA
SHENZHEN

The startup ecosystem in Shenzhen is characterized by a

But Shenzhen is more than a global factory space. Right now,

“maker culture”, with a multitude of small, agile makerspaces

it is rapidly becoming one of China’s fastest growing innovation

for rapid prototyping and product optimization. In Europe it

hubs. It has the youngest population of any major Chinese city,

may cost EUR 20 and take 1-2 days to assemble a basic PCB

an international mindset, and very startup-friendly regulations.

(printed circuit board); by contrast, the same device can bemade in Shenzhen in 20 minutes for less than EUR 1.

Naturally, the startup scene in Shenzhen is rather hardwarefocused. Most of the successful local startups revolve around

Add to this, the famous Huaqiangbei electronic mega-market,“remixing:” adding to or altering features of existing products.

an enormous electronics market spanning over 1 kilometer,

Shenzhen is also characterized by strong funding opportunities.

where you can find any component needed for your build, be

It is part of a special free trade zone that provides extra

it for VR, AR, IoT-devices, robotics, drones, or any other exotic

support for foreign businesses and gives startups access to

sub-components. Shenzhen is undoubtedly the best place toventure capital from government funding schemes and private

go for early-stage Nordic hardware startups looking to speed

investors. In fact, the city is home to 30% of all Chinese VCs.

up their prototyping.

26

27

STRUGGLINGWITH ASIA

Perhaps the most poignant insight gained from our
exploratory phase was how few Danish tech startups
are actively engaged in Asia. Of course, there arevibrant Danish expat communities in parts of Eastand Southeast Asia, but the business landscape isdominated by corporates and larger SMEs.

Below the surface, and in some surprising locations there is aplethora of smaller Danish-owned non-tech enterprises andtech nomads working freelance from exotic surroundings inAsia— but these do not qualify as tech startups.
The fact is, very few Nordic — let alone Danish — startups
have a physical presence in Asia, with a real office and local
employees. Some of the SaaS-based companies may be selling
their solutions at a distance. Others may have a local sales rep.
But only a handful of the larger scale-ups actually make it toAsia. Why?

28

29

DEALING

no time to spare, so they prefer to focus on more familiar andSourcing companies is challenging. You willneed to collaborate with investors or dedicated cluster organizations with access tothe startup community. Also, expanding thescope to include Nordic or European startups will greatly increase the pipeline andreduce the effort of scaling.

•

Startups are not motivated by abstract notions of growth rates and market value. You
need to provide real operational opportunities and networks in the target country.

•

Startups often lack resources and only respond to the most necessary enquiries. You
will need to minimize any effort on behalf ofthe startups, so they can focus on their core
activities.

less risky markets. As a result, the sourcing of Danish startups(and even SMEs) for Asia-bound activities is perhaps thegreatest challenge to any internationalization initiative.
Even impact startups, who provide solutions with particular
relevance for emerging markets in South and Southeast Asia,
struggle to make the leap. They lack the funding and tailored

STARTUPS•

Most Danish startups are too early-stage to access remotemarkets. They have limited funding, few employees, and almost

WITH

support mechanisms to identify and implement their POC andaccess the market.
Yet, launching new initiatives may not always be the solution.
ILA experienced a widespread fatigue or saturation in thestartup community in terms of engaging in new accelerators,
programs, or initiatives — and not just in relation to Asia. Simply
put, the most consistent motivator seems to be the prospectof accessing new funding. Therefore, any initiative that seeks
to motivate Danish and Nordic startups to scale towards Asia
will definitely benefit from a close collaboration with both Asianand Nordic investors.

30

31

FOLLOW THE MONEY•

The Nordic brand is strong in Japan: The Japanese•

The Nordics are a perfect base for European

are generally impressed by the Nordics, not just in terms

expansion: The Japanese perceive the Nordic countries

of a common affinity for quality craftsmanship andas politically stable, economically strong, and highly

elegant minimalism, but also the efficient and highlyinternationalized; therefore, the Nordics appear to be an

digitized Nordic public sector that provides its citizens

ideal base for a European foothold in Japan. In addition,with free education, healthcare, and social security. Theysome investors believe Silicon Valley has become

are also aware of the consistently high rankings thatoversaturated with VCs, and are looking for better deals in

Nordic countries enjoy in global indexes for innovation,

the European startup ecosystem. It is not only the Nordics,

digitization,

but Europe as a whole, that is interesting for Japanesecompetitiveness,entrepreneurship,transparency, governance, and happiness. In general,stakeholders.

Of the first batch of reports published by ILA, one stands out:

We drew two conclusions: Firstly, Japanese funding was

Estonia - a case story. Witty people have suggested thatflowing towards the Nordics; it just wasn’t flowing to Denmark.

many perceive the Nordics as model societies.

Estonia hardly qualifies as an Asian innovation hub, and indeed,

Secondly, we had much to learn from our New Nordic neighbors,

this report was conceived from unexpected insights. It also

not just on who to talk to, but also how to do it. ILA’s report on

face many of the same societal challenges as Japan in

In recent years, the level of Japanese VC and CVC capitaldefined the second phase of ILA.

Estonia paved the way for our Japanese investor focus, and theterms of an aging population and dwindling workforce.

has grown rapidly. However, the Japanese startup

importance of Nordic collaboration.

Also, many of the solutions provided by Nordic startups

ecosystem is relatively immature, and investors therefore•

Nordic solutions cater to Japanese needs: The Nordics•

Japanese capital has a strong international mandate:within Healthtech, Fintech, Robotics, Smart cities, AI andneed to look to foreign markets for good deals. Additionally,“Kilroy was Here”-feeling. Wherever we went, the Finns andSince October 2019, we have carefully monitored Japanese VC

digitization match the Japanese vision of Society 5.0.

Nordic startups generally feel more safe dealing with

Estonians had already been, talking to the right people andinvestments and acquisitions to the Nordics (see our website)

Nordic solutions are very relevant for Japanese investors

Japanese investors rather than e.g., Chinese, whose

closing deals. It turned out that Estonia, operating under afrom 2013-21. The growth has been impressive, for several

looking to bring new tech to their home market.

funding source may be more nebulous (see fact box The“New Nordic” brand, and with a population of just 1.3 million,

reasons:

During our initial investigation of Japan, we had a continuous

Pros and Cons of China).

had landed more Japanese investments from 2013-18 than
Denmark, Sweden and Norway— combined.

32

33

JAPANESE INVESTMENTS TO THE NORDICS 2013-2021
NORWAYFINLAND

AutoStore Softbank
Brandpad Thorgate Ventures III
Exabel Sanden
Girff Aviation Dronefund VC
Kahoot Softbank
Nevion Sony Corporation
Oda Softbank
Oncolmmunity NEC (Acquisition)

3rd Eye Studios Oy Ltd Colopl Next
Attractive.ai Keisuke Honda, Tatsuro Shimada
Broadbit Yaskawa Electric
Canatu Oy Denso
Combinostics NordicNinja VC
Flexound NordicNinja VC
Hatch Entertainment Docomo
IndoorAtlas Yahoo! Japan
Inkron Nagase Group (Acquisition)
KIDE Clinical Systems Topcon (Acquisition)
Logmore NordicNinja VC
MaaS Global NordicNinja VC, Denso and others
Medfiles WDB Holdings (Acquisition)
Meru Health IT-Farm Corporation
Nightingale Health Kirin, Mitsui
Oura One Capital
Sensible 4 NordicNinja VC
Sensire Yokogawa
Supercell Softbank, GungHo (Acquisition)
Teraloop Yaskawa Electric (Acquisition)
Varjo NordicNinja VC

SWEDEN
Crosser NTT Docomo
Einride NordicNinja VC
EINS Consulting NTT Data (Acquisition)
Exeger Softbank
FishBrain Recruit Holdings
Fishbrain Softbank
Inkonova Terra Drone
Klarna Softbank
Outfox Intelligence Dentsu (Acquisition)
Sinch Softbank
Sturdy NEXTBLUE
Symfoni Software Fujitsu (Acquisition)
Tracklib Sony Innovation Fund
VEAT NEXTBLUE
Voi NordicNinja VC

ESTONIA
Bolt NordicNinja VC
Clanbeat Mistletoe
Cleveron ITOCHU (MoU for R&D)
Fits Me Rakuten (Acquisition)
Funderbeam Mistletoe
Jobbatical Mistletoe
Lift99 Mistletoe
Lingvist Rakuten
Planetway Mistletoe, Tokusui, Sakura Internet
Realeyes Docomo
Skeleton Technologies Marubeni
Startship Technologies TDK ventures, Recruit
Tera Ventures ITOCHU, Mistletoe (Limited Partner)
Thorgate Ventures III Alesco ventures (Limited Partner)
Transferwise Mitsui, World Innovation Lab
Veriff NordicNinja VC
Xolo Mistletoe

DENMARK
AddiFab Mitsubishi Chemical
ByFounders Digital Garage (Limited Partner)
Chainalysis Mitsubishi UFJ
DigiShares Toko Kondo
Grazper Yokogawa (Acquisition)
Magnetix Dentsu (Acquisition)
Nodes Monstar Lab (Acquisition)
Pie System DG Incubation
Unibio Mitsubishi Corporation
WARM Sony Innovation Fund34

As of 10th Sept 2021

35

•

SIZE MATTERS•

Nordicsuccess:collective

In spite of its potential benefits, promoting cross-Nordic

achievements of the overall Nordic startup ecosystem,

By

promotingcollaboration is complicated. Most Nordic people feel very

we outshine most other tech hubs. When we launched

Nordic when travelling abroad, and the further away, theour Nordic Innovation report, Japanese stakeholders werestronger the feeling. Any differences that may emerge, aresurprised and captivated by the fact that we have thecherished as cute little quirks to an otherwise great common

highest number of unicorns per capita outside of Silicon

heritage. However, once back in our respective countries, that

Valley. This is the kind of narrative that attracts East Asian

Nordic feeling is quickly replaced by the usual national focus,

investors.

the Danes feeling Danish, the Swedes Swedish, and so on.

Nordic networks: Across

the

the

Nordics

there

are

This paradox also impacted ILA. On the operational level, we

individuals with strong personal networks in Asia. Thesefound a great eagerness to work as a united Nordic Region

are supremely important when doing business in Asia, andwhen engaging with Asia and Japan. Individuals across therepresent the best shortcut to doing business in Asia. The

Nordics happily shared information and connections for theNordics need to combine their knowhow and networks tocommon good. However, on the political level, things got more

It may seem banal to suggest that Nordic collaboration is

The good news is that the Nordic brand is already well-successfully access Japan and other Asian hubs. Simply

complicated, as mandates and funding opportunities are mostparamount in an Asian context. The entire population of

established in East Asia. Most stakeholders generally

put, Asia is not a zero-sum game.

often earmarked for national initiatives.

Denmark (6 million) would fit easily into a suburb of the Greater

perceive the Nordics as one coherent region, and are rarely

Tokyo Area (38 million), Shanghai Metro Area (28 million), or

knowledgeable about (or interested in) the minor differences

Nordic sourcing: Presently, only a few Nordic startups are

Thankfully, things are changing. In recent years, Nordic

Seoul Capital Area (25 million). Only by joining forces can all thethat form our national narratives. More importantly, most East

willing to focus actively on Asia, and therefore achieving aInnovation Houses have opened in Hong Kong, Singapore, andNordic countries hope to compete with large hubs in London,

Asian stakeholders tend to focus on larger regional areas whencritical mass for Asia-bound activities can be challenging

Tokyo. Naturally, the Tokyo-house has been a key partner for

Boston, New York, Tel Aviv, etc.

they internationalize, e.g., the United Kingdom and Ireland,

when sourcing on a single country level. Only by widening

ILA from the very start of our Japan-focused activities. Our

Latin America, Germany, and so on. Denmark or Sweden on

the scope to the entire Nordic region is it possible to makenext step is to build on this spirit in our own hemisphere.

their own are simply too small to justify an exclusive initiative.

this effort sustainable. In the same vein, startups tend to

Nordic collaboration matters on many other levels too:seek inspiration from their peers, and one of the strongest•

motivators for scaling internationally is real successstories. Since few Nordic startups have an Asian trackrecord, we need to widen the scope here as well.

36

37

In this final chapter, we touch on how to engage withJapanese stakeholders on an operational level. Manyof the findings will also be relevant in other partsof East Asia. Some of the points might be consideredhigh-level cultural generalizations, while others
are more specific.

BRIDGING THE GAP•Take the long-term perspective: It takes a long time toallowed us to expand our network to JETRO and the Tokyo

create a presence in Japan; stakeholders require many

Metropolitan Government.

mails, meetings, and physical encounters to establish
the level of trust required to develop a partnership. Publicorganizations are usually even more cautious.

•

Communicate in Japanese: Though English has become
more common in Japan, being able to communicate
in Japanese is a definite advantage. From a cultural•

Engage with local partners: Having others vouch forperspective, it is a simple way of showing respect as a

you goes a long way in Japan, so try and establish aforeigner in that you have put in the additional effort toworking relationship with one or two partners of good

establish yourself in Japan. On a more practical level,

repute like large and/or well-connected organizations,information may be lost in translation without youor organizations with a badge of officialdom. In doing so,

realizing it. Japanese often find it shameful to admit to not

you leverage the trust and respect accumulated by theseunderstanding what is being said, and impolite to ask theirorganizations and provide a face-saving loophole for new

guests to repeat their point. Also, many of the decision

Japanese partners. The more trusted partners you havemakers are more senior, and therefore likely to be lessin your corner, the more new partners will be willing to

proficient in English. For this reason alone, it is a definite

work with you. We are grateful to work closely with Nordic

advantage to communicate in Japanese at meetings

Innovation House Tokyo and Trusted Corporation, whichand events; in a similar vein, we strongly advise providing
Japanese-language sales materials.

38

39

•

Choose your words carefully: Japanese find the spoken•

Reconsider your SoMe strategy: We did not haveword much harder than the written. Therefore, speak

resources to hire an external Japanese PR-expert

very slowly at meetings and avoid difficult words andand struggled to find the right channels for digital

expressions, even if you find their English to be good. Your

communication. LinkedIn is not widely used in Japan,

Japanese counterparts will not ask you to slow down,

and therefore shouldn’t be used to target Japaneserephrase, or admit to not understanding, but will feign

stakeholders. Twitter is popular, but is more suitable forcomprehension and interest. Also, do not be unfazedcompanies targeting young people.

by sudden periods of silence from the Japanese. Thisis simply regarded as a sign of respect, that they are

However, gaining a social media following is often very

contemplating your words.

resource-intensive, and takes a long time to gain traction.
The Japanese platform Line has the highest number ofOne may venture a guess that this is a reason why theusers, but is not commonly used for business purposes.

Finns and Estonians get along so well with Japanese—

We eventually fielded a page on Note.com and promoted

they have also mastered this art of silent breaks, which

content via Facebook, which is quite popular for business

Danes find so hard. Finally, keep your ego in check. If you

purposes in Japan. For more information on Japanesewant to earn the respect of Japanese, do not ramble off

SoMe, check out this article on edamamejapan.com.

about your own merits and exploits; instead, be modest
and soft spoken.

•

Paper is great:Weexperienced

thatJapanesestakeholders were very pleased with the printed versionof our reports, especially if they were also written in
Japanese. Never underestimate the power of paper inJapan!

40

41

1.

Japanese (C)VCs are actively looking for global

2.

opportunities

Japanese stakeholders generally have a positive
impression of the Nordics

THE METHOD
3.

Japanese investors are actively seeking access to Nordic

4.

startups looking to Asia

Presenting startups in a uniform and comprehensible
manner, and wrapped in a beautiful Nordic design,
increases interest

あA
In December 2020, ILA launched the first of a series of sector

This methodology proved very effective in connecting with

reports, introducing the Nordic Healthtech ecosystem toJapanese investors and stakeholders, even in the grip of global

a Japanese audience and showcasing 24 up-and-coming

COVID-lockdowns: we generated a total of 24 investment leads,

healthtech startups. Over the next couple of months anotherwhich we define as specific Japanese investors requesting

two reports were launched, one covering Fintech and theintroductions to specific startups that were showcased in theother covering Urbantech, showcasing a total of 78 New Nordic

reports and at the events.

5.

Communicating in Japanese is key to gaining traction

6.

with Japanese stakeholders

Spending time on identifying and maintaining good
relationships with local partners are key to strengthening
outreach in Japan

startups.
The reason for this high success rate was perhaps that the
All the reports were published in both English and Japanese,7.

methodology built on 10 key learnings of ILA:

Presenting a united Nordic front raises the collective
brand and relevance of all the individual Nordic countries

8.

Sourcing startups at a pan-Nordic level provides thenecessary volume for Japanese stakeholders

and included links to video pitch material with Japanesesubtitles. Each report launch was followed up with an event
where all communication was in Japanese, and organizedwith local Japanese partners: Nordic Innovation House Tokyo,
JETRO, Trusted Corporation, and others.
9.

Leveraging on the network of sector-specific cluster

10. Minimizing the work effort required from the startups fororganizations is key to engaging with the startups

producing the showcasing material is key to securing
their active and positive collaboration

42

43

THE

TURNING THE PAGE

SECTORREPORTS•

3 reports: Healthtech, Fintech, Urbantech•

2 languages: English and Japanese•

78 startups showcased•

18 video pitches with Japanese subtitles•

4 all-Japanese events•

13 startups pitching to a Japanese audience•

24 investment leads

The main activities of NAVA will include:

Though project funding for ILA ends in September, the

The Nordic Asian Venture Alliance (NAVA) seeks to connect

activities will continue. We have achieved a level of economic

the Danish, Nordic, and East Asian investor communities andsustainability and will continue our promotional activities,

increase the flow of Asian capital to the Nordic ecosystem. In

producing newsletters, events, and reports, and connecting

doing so, NAVA aims to strengthen the ability of Danish andfor an East Asian audience in the Japanese, Korean andengagement, i.e., direct investments, limited partnerships,

stakeholders from the Nordic and Japanese ecosystems. In

Nordic startups in raising larger (series A+) rounds without

Chinese languages. The showcasing will follow the format

and joint funds.

addition, we are open for new partnerships and Nordic-based

having to relocate abroad.

and methodology of the ILA sector reports.

projects.
The project will build on the insights, network, andWe are also expanding our investor focused activities with amethodologies of ILA, and include many from the original

new project: the Nordic Asian Venture Alliance, funded bycore team, plus some new hands on the deck. The project will

the Danish Industry Foundation.

also be expanding its scope beyond Japan to include Chineseand Korean investors, who also have a mandate to invest••

A digital platform showcasing at least 160 Nordic startups•

Outreach and matchmaking between the Nordic and East
Asian investor ecosystems.

••

Investigating the relevance of different models ofOrganizing events, delegations, and networking sessions
to further NAVA’s aims.

•

Promotional activities in tandem with ILA.

Identifying investors and potential Limited Partners, theirstrategic focus areas, and international mandates.

internationally.

44

45

FEEL FREE TO CONTACT US
IF YOU ARE ...

•A startup looking for showcasing and exposure in Asia,
free of charge•

A Nordic investor looking to connect with other Nordic
peers with a business interest in Asia•

A Nordic investor looking to connect with East Asianinvestors or Limited Partners•

An East Asian investor or Limited Partner looking

NORDICASIAN

VENTURE

Purpose:to connect with Nordic startups, investors, or otherstakeholders•

Formal project partners:
A Nordic cluster or community organization looking to help
your members connect with Asia

46

Funding:
Project duration:
Project manager:
Website:ALLIANCE

To increase the flow of venture capital fromJapan, Korea, and China to the Danish andNordic startup ecosystems, especially for Series
A+ rounds.
Asia House, TechBBQ, Copenhagen Capacity,
Innovation Centre Denmark (Shanghai & Seoul)
DKK 5.6 million
2 years, starting October 2021
Peter Johansen
nordic-asian.vc
47

This report has been developed by

In a collaboration between

With support from

Asia House48|

Indiakaj 16, Copenhagen|www.innovationlabasia.dk|

hello@innovationlabasia.dk