Akira Kurabayashi | DNX Capital

Profile

Akira Kurabayashi

Managing Partner

Akira has built his career in the Japanese B2B technology sector by establishing a US-style investment approach and contributing to the development of the industry. He has invested in numerous Japanese SaaS companies, primarily as a lead investor from the early stage, and has supported their growth as a board member. Akira currently oversees DNX Japan’s investment activities. He serves as a board member for DataX, Andpad, XICA, Kakehashi, UPWARD, Mazrica, Adacotech, Techtouch, FLUX, Knowledge Work, Alphaus, Zeroboard, HERP, Scalebase, and Shippio. Notable past investments include Sansan (TSE 4443), Money Forward (TSE 3994), TeamSpirit (TSE 4397), toBeMarketing (acquired by Fujitsu), UPSIDER (acquired by Mizuho Bank), Hotto Link (TSE 3680), TerraSky (TSE 3915), Synergy Marketing (acquired by Yahoo Japan), 1st Holdings (acquired by Orix), Shanon (TSE 3976), Kabuku (acquired by Futaba Corporation), Beceem Communications (acquired by Broadcom), Smart Signal (acquired by GE Intelligent Platforms), and more. Prior to joining DNX Ventures in March 2015, he served as Head of Japan at Salesforce Ventures and Globespan Capital Partners. Before earning his MBA at Wharton, he worked at Mitsui & Co. and Fujitsu in Tokyo and Silicon Valley, where he invested in B2B startups in Japan and the US and supported the portfolio companies’ business development initiatives. In addition to his role as a venture capitalist, he currently serves as an advisor to KKR, Pioneer Corporation, VOREAS HOKKAIDO (professional volleyball team), and the Tokyo University of Science on leadership programs. Akira holds a BA in Commerce and a Ph.D. in Technology and Innovation Management from Doshisha University, an MBA from the Wharton School of the University of Pennsylvania, and an MA in Law from Hitotsubashi University. He also completed the General Management Program at Harvard Business School (36th Session) and the Executive Management Program at the University of Tokyo (Term 17). He is the published author of The Corporate Venture Capital Handbook (Chuokeizai-sha).

Interview

Bringing the venture capital profession to Japan
Sensing the Winds of Change in Japan’s B2B Software Landscape For roughly thirty years — since I first entered the workforce — Japan has pursued various initiatives to invigorate its startup ecosystem. While meaningful progress has been made along the way, the gap between Japan and Silicon Valley in terms of industry leadership and enterprise value has only widened. Silicon Valley draws diverse talent from every corner of the world, and extraordinary companies continue to emerge from this collision of backgrounds. Microsoft, Salesforce, and more recently AI companies like Anthropic — the majority of the businesses that have become global infrastructure in the B2B software space were born in the United States. The question that drives me has long been as follows: could we help create companies from Japan that are capable of becoming true leaders in this massive B2B software market? In the past, industry veterans with the experience to found a B2B software startup tended to stay at large corporations until retirement. Today, however, we’re seeing a growing number of people who built their careers at major companies choosing to start their own ventures — driven by problems they identified firsthand and determined to solve them using cutting-edge software. Success stories are steadily accumulating. People with genuine purpose and integrity are stepping up to build companies, and in doing so, they’re making the world a little better as their businesses grow. I believe this is slowly changing the way Japan perceives startups. What I’m working toward, though, is a world where Japan’s own entrepreneurs — not imported innovation — take ownership of B2B software advancement. I’ve carried with me throughout my career a deep desire to see Japanese entrepreneurs contributing to the kind of ecosystem where Japanese companies can grow and thrive through access to the most advanced technology in the world.
Striking a Vein Bringing “Genuine” Venture Capital to Japan The thread that has run through my entire career is a commitment to realizing the American venture capital profession — in its truest form here in Japan. At leading U.S. venture capital firms, the lead investor joins a portfolio company’s board as an outside director and holds genuine influence over governance and major strategic decisions. VCs are required to make the right calls as an outside director from a foundation of deep diligence, a thorough understanding of the underlying technology, and fiduciary duty to the institutional investors.That is what venture capital, at its core, is meant to be. In Japan, however, a surface-level idea of venture capital took root without this foundation. It has not been uncommon for investors to lack relevant operating experience or deep technology literacy therefore falling short of fulfilling the role as it was originally conceived. Historically, Japanese venture capital was simply never expected to serve as a guardian of governance for private companies the way its American counterpart was. And so it evolved along a different path: primarily a source of capital and encouragement, rather than a disciplined partner in building and protecting value. I still remember the jolt I felt at twenty-five, when I was searching for the work I wanted to dedicate my life to, and encountered American venture capital for the first time. It was like striking a vein of ore. Not only had most people in Japan not yet seen the gap between the two countries, but I knew, instinctively, that this was the pursuit I was built for. The journey since has been endlessly stimulating. The further I’ve come, the more I’ve found myself surrounded by extraordinary people who push me to reach higher. The colleagues I worked alongside at Globespan Capital Partners and Salesforce Ventures are Silicon Valley superstars today. Every time I see what they’ve built, I feel the pull to keep sharpening myself.
A Partner Committed to Maximizing Value — Alongside the Entrepreneur The relationship between founders and ourselves is a soft and delicate one. Without deep trust between the two, we cannot aim to grow together. At the same time, as bearers of fiduciary duty over the capital entrusted to us by institutional investors, we can never be the kind of presence that supports a founder no matter the circumstance. When a business cannot achieve growth over many years, there are times when we have no choice but to make hard decisions—and I am keenly aware of just how unforgiving this world can be. That is precisely why I hold profound respect for the founders who embody what DNX asks of an entrepreneur. The authentic commitment to decide to start a company in order to solve a social issue, and to give everything toward maximizing its enterprise value, is by no means something anyone can imitate. Together with that respect for those who set out to see it through, and in order to be worthy of them, we too want to keep growing—in keeping with our value, “Be a true partner to entrepreneurs.”

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