"Entrepreneurial aspirations" to hear the background of deciding to start a business, the conflict until the business gets on track, and the desire to realize through the business. In the 9th session, we interviewed Mr. Ken Watanabe, President and CEO of REXEV Inc.
【profile】
REXEV Inc. President Co-founder Ken Watanabe
Graduated from Waseda University Faculty of Science and Technology, Department of Electrical, Electronic and Information Engineering / Graduate School of Science and Engineering, Electrical Engineering (Power System Engineering) Completed (Master of Engineering) Hitotsubashi University Graduate School of International Corporate Strategy (Financial Strategy / Business Finance Course) Completed (Financial Strategy MBA) Visiting Professor, Green Technology Research and Education Center, Kyushu University / Part-time Lecturer, Graduate School of Urban Management, Osaka City University
After being in charge of electric power-related product trade business and plant construction project work for the Middle East, Africa, and Europe at Sumitomo Corporation, he was seconded to Summit Energy Corporation, a subsidiary of Sumitomo Corporation, to develop a power plant. Responsible for a wide range of operations, power supply and demand management operations, retail sales, etc. After that, he joined ENERES Co., Ltd. in 2009, and has served as an executive officer, director, and managing director, and is in charge of business planning and new business development. In addition, he was listed on the TSE Mothers market in 2013 as a listing officer. Formed a capital and business alliance with KDDI CORPORATION in 2016, retired as a director at the Ordinary General Meeting of Shareholders in March 2017, and became an executive officer. Established REXEV Inc. in January 2019 and assumed the post of President and Representative Director.
[What's REXEV Inc.]
Founded in January 2019. With the vision of "realizing a sustainable social infrastructure that allows all people to move at zero marginal cost," we will develop and provide systems required for energy management. By combining next-generation technologies such as AI, IoT, and autonomous driving, we aim to create new added value for e-mobility, contribute to the promotion of the spread of renewable energy, and solve regional, social, and global issues. The company also operates the power supply and demand adjustment using the battery of an electric vehicle (hereinafter referred to as EV) and the EV-specialized car sharing "eemo" mainly in Odawara City, Kanagawa Prefecture. In December 2020, with JAFCO as the lead investor, raised about 740 million yen in Series A.
What we are looking at is the realization of a society with 100 % renewable energy (hereinafter referred to as "renewable energy").
-First of all, please tell us about the business of REXEV.
It is often seen as a car-sharing business company, but the main focus is the energy management business. REXEV 's essential mission is to provide system solutions that will be needed in the future when the conversion to electric vehicles (EVs) occurs. EV-specialized car-sharing "eemo" is one of the businesses we are promoting after considering how to increase the number of electric vehicles. The car sharing business is one of the many mobility services such as taxi, bus, and rental car, and if you are only doing the car sharing business, you should handle gasoline cars as well. ,it's not.
Electric vehicles are still expensive and there are few models. By providing an EV usage experience through a car-sharing service, when a choice of vehicle type comes up, it will be "let's ride" or "let's buy". For that reason, "selling the experience of electric vehicles" is what I want to do with EV car sharing from now on.
-So that's it. What exactly is the energy management business, which is the mission of REXEV?
It is the development and operation of a control system that enables the charge of electric vehicles to be adjusted well. If the electric vehicle market expands in the future, in addition to personal passenger cars, various vehicle types, vehicles and applications such as trucks, buses, and corporate commercial vehicles will increase. Then, a problem that has not become apparent now comes out. One of them is the problem of using electricity.
For example, if Company A converts 100 cars to EV and charges 100 cars at the same time, the amount of electricity used will jump up. Energy management technology is needed when the number increases. With sunlight, it was difficult to control, and due to changes in the weather, it generated more electricity than needed, so it was necessary to limit the amount of sunlight received. Under the feed-in tariff (FIT) for renewable energy, power generation companies are now in a situation where they have to respond to output curtailment. Anyway, because we focused on construction, we had to deal with the problem of how to control the surplus power generation later.
Even in electric vehicles, we can anticipate energy management issues such as power shortages due to charging. Now that the market is not big yet, if we create an adjustable system and increase the number of electric vehicles, the total social cost will decrease. This theme has social significance, and I thought it would be easy to make use of my long experience and knowledge in power adjustment and management businesses.
-What kind of society did you want to realize when REXEV was founded?
"How to increase renewable energy" was an important point of view. Energy management that successfully regulates naturally fluctuating solar and wind energy is essential for the realization of a world of 100 % renewable energy. The more renewable energy we have, the less fuel we have to pay. Even if you make 1 or 100, the incremental cost does not increase, and it is the energy of "zero marginal cost" in economic terms. If that happens, the cost of producing electricity will be lower for renewable energy, which will have great environmental and economic benefits. It costs money to drive a gasoline car, but the electricity generated by renewable energy costs 0 yen no matter how much you charge it. Travel costs are steadily falling, and eventually it will lead to solving problems of local mobility such as people with mobility difficulties and deficit traffic. We are drawing a future scenario, hoping that self-driving cars will come out and help solve social issues in the region.
-What made you aware of the issues in realizing the "world of 100 % renewable energy"? Please tell us how you came to REXEV.
When I was a student, I was researching the liberalization of electricity retailing, and I joined a trading company because I thought it would be interesting if I could get a job. Then, witnessing the unchanging industrial structure of electric power, I joined ENERES, which manages the supply and demand of electric power and trades electric power, thinking that startups could lead to revitalization of the market with a sense of speed. The Great East Japan Earthquake was a major opportunity for me to become aware of the issues. The liberalization of electric power accelerated at a stretch, and the way of thinking surrounding electric power changed completely. In addition, I became more familiar with the effects of climate change, and I changed my mind that the only thing I could do to deal with environmental problems was the energy domain.
I think that the shift to a carbon-free society has a huge impact. It's about quitting what has been developed with fossil fuels since the Industrial Revolution, so it's close to the next new revolution.
The revolution so far has happened with the energy shift. Coal was born, and the means of transportation that used to be walking or horses became steam locomotives, the movement changed, and people migrated and the range of life expanded. It is also the power of energy that enables mass production. Next, when oil was born, internal combustion engines and automobiles were born, increasing the freedom of movement. Energy is a catalyst for changing the industrial structure.
Until now, the primary energy of gasoline and the secondary energy of electricity have not been fused. However, if electric vehicles become widespread, the fusion of mobility and electric power will advance. As the industrial structure of electric power changes, the spread of renewable energy will lead to the realization of a society where marginal costs are reduced to zero. I wanted to play a part in the next energy revolution in the energy management of electricity.
― At what stage is REXEV 's energy management system for electric vehicles now?
The control system we have developed already supports charging adjustment of electric vehicles. With the spread of electric vehicles in the future, it is expected that charging spots will appear everywhere in the city. But without a control system, electricity would flow every time you connect it to a charger. If you charge it as easily as a smartphone, "If you have a charger, plug it in", you will soon run out of power. The REXEV system has established a mechanism that prevents charging when a control signal is received.
In the future, it will be necessary to raise the system control level according to the scale, such as making it possible to adjust 100 or 1000 vehicles in stages as electric vehicles become more widespread. Since the market has not expanded yet, we will invest in development while observing the timing.
-What are the expectations and concerns of the "future in which electric vehicles will run"?
I think that the impact of electric vehicles on the industrial structure will be enormous. Electric vehicles can enter the market if you have the funds. Japan has won so far because it required advanced technology to make an internal combustion engine. However, if fabless (a company that does not have a factory) can also make it, GAFA and China will be able to enter the market. What will Japan do to China, which has such an economic zone? There is no answer.
I think that the idea of an electric vehicle is not "a vehicle that has changed from gasoline to electricity" but a moving smartphone. I'm hoping that Sony's electric car, which is doing well with Xperia, may run.
As a good brake, I'm looking forward to future companionship.
-Please tell us how you got to meet JAFCO.
Ms. Numata of JAFCO is a friend of ENERES, who was in his previous job. I first met around October 2009. From that time on, I was talking about the idea of "I want to do this kind of business" while drinking occasionally. I was lightly asked to tell me when I started a business, so I actually started a business and spoke to him. When I was wondering if they would consider investing from Series B, I said, "I will start with Series A." I was surprised that JAFCO did not have the image of investing from the early days. We asked them to invest as a lead investor in a series A round that was held from November 2019 to the following year. I thought it would be best to have the person who is the easiest to do if I would like to receive an investment, so it was natural for me to choose Ms. Numata, who has a long relationship with me.
Mr. Watanabe and Tomoko Numata, the capitalist in charge of JAFCO (left)
-Is it also great that you experienced listing at ENERES in your previous job?
I agree. With Ms. Numata, I feel that I can somehow get listed (laughs). Since I have experienced the specific process up to listing once, it is easy to predict how it will work and I can give you advice.
In my previous job, the representative and Ms. Numata often fought a battle. When I listened to the story carefully, I often understood what Ms. Numata was saying. I was confident because I was watching up close the attitude of saying what I should say at the right time.
-What kind of advice do you seek from investment managers?
I think it's important to be a brake. Entrepreneurs only have "ideas and aspirations", so they want to move forward in the shortest possible time to realize them. That is why it is valuable to have a person who advises us based on our knowledge so far and gives us a hint to stop and think about it.
-How will REXEV, including IPOs, develop in the future?
We aim for an IPO in 2024 at the earliest. As the electric vehicle market is booming, the energy management business market will also grow. We expect our value to increase.
In the current market environment, the social needs of electric vehicles are increasing, and there is a subsidy system, which makes it easier to expand the business. However, the number of electric vehicles has not expanded, and we have not reached the point where we can choose from multiple lineups. The track record as REXEV is not enough, and it is still struggling to acquire human resources who have experience in system development of energy management. There are still many issues.
-What do you expect from JAFCO for the 2024 IPO?
We have received sufficient support from financing to introduction of business partners, so we can't hope for any more. I hope you will continue to accompany us as before.
How will it lead to the solution of social issues? It's important to be able to tell the story in your own words
-As an entrepreneur, do you have any things or beliefs that you have consistently cherished?
What I keep in mind is to do my best. It's the saying "Sincerity" left by Shoin Yoshida. Just as unnamed people changed the world with the Meiji Restoration, young entrepreneurs change the world. I think it may be startups that move society.
-Finally, what is the ambition that an entrepreneur should have, and do you have a message or advice for those who want to become an entrepreneur?
How can it lead to the solution of social issues and benefit the world? I think it is important to build a business from the perspective of what the cause is. I think that having a story that you can tell in your own words will increase your chances of success, and people around you will follow you.
In the field of electric vehicles, it is not known to the world that various problems actually arise when the market expands. That information gap is the advantage of REXEV, but on the other hand, it is also necessary to carry out educational activities.
Electric cars, like gasoline cars, do not have to be purchased and placed in the parking lot. There are many things to consider, such as how to attach the charger, what to do with the wiring, and what to do with the capacity of electricity. Introducing an electric vehicle is not so easy, and REXEV 's support will be of great significance. That is why we want to be a company that contributes to society by adding the added value of energy management.
