JAFCO's investment professionals employ every possible method to meet more entrepreneurs, to be selected by them, and to seize opportunities to be their partner. A recent initiative they have taken on is the EIR (entrepreneur in residence) program. This system, long adopted by overseas VCs, is a noteworthy endeavor expected to boost domestic innovation, as demonstrated by the pilot project under the Ministry of Economy, Trade and Industry (METI).

In this article, we will introduce the first round of First Leap, a hands-on startup support program held for the first time in 2023, in which JAFCO, which began utilizing EIRs as a METI pilot project in 2022, welcomed entrepreneurs at the pre-startup or early startup stages as EIRs.

We will delve into the activities and achievements of the First Leap program, the value it offers to entrepreneurs, and highlight firsthand insights from interviews with three participants from the first round. Additionally, we will explore JAFCO's approach to its EIR program as well as its appeals.

What is JAFCO's startup support program, First Leap?　

First Leap is a startup support program launched by JAFCO in 2022, building on its extensive commitment to the aspirations of many entrepreneurs. Targeting individuals at their pre-startup or early startup stages, the program aims to increase the number of startups and promote open innovation by providing JAFCO's support system and know-how, alongside a hands-on approach by its investment professionals. Until 2022, investment professionals worked one-on-one with entrepreneurs, but from 2023, the program transitioned to a structured format.

In the first round held in 2023, six sessions were conducted on themes such as "Vision and Team Building," "Business Model and Market Strategy," and "Fundraising and Investor Relations," offering participants practical knowledge, specific actions, and the necessary mindset for launching a business. Additionally, various forms of support were provided, including consultation opportunities with JAFCO's investment professionals and investment support teams as well as CEOs of JAFCO's portfolio companies.

Participants had access to:

• Feedback sessions with JAFCO investment professionals in areas related to their business concepts
• Sharing knowledge from past investment case studies
• Mentoring from startup CEOs that JAFCO had invested in
• Opportunities for customer feedback and sales opportunities with potential initial clients
• Legal consultations with JAFCO's in-house Administration Division, which includes qualified lawyers

■Results of First Leap

In 2022, the program began with nine participants, supported through one-on-one guidance from JAFCO's investment professionals. By 2023, the structured program format saw participation from 15 teams. These participants launched ventures in diverse areas, such as generative AI, SDGs, space exploration, mental health, and D2C business models.

One of the key strengths of First Leap lies in the one-on-one mentorship provided by experienced investment professionals and the extensive network that JAFCO brings to the table. For instance, during the concept development stage, the program supports entrepreneurs by facilitating customer feedback and helping them organize and manage seminars, creating opportunities for business growth.

One entrepreneur, aiming to establish a generative AI business, co-hosted a webinar with JAFCO, which attracted over 500 registrants. Together, they generated leads from nearly 800 companies, leading to successful contracts with around 10 businesses. "In the early stages, we often lack resources or face difficulties approaching large corporations," noted the participant. "The support we received was incredibly valuable."

The value of First Leap as described by participants of the first round

To better understand First Leap, we interviewed three participants from the first round about their motivations for joining, the expectations they had for the program, and how it has helped evolve their businesses and organizations. The interview was conducted by JAFCO's Masaaki Wakabayashi, a member of the planning and operations team for First Leap.

Participants in First Leap: Nao Kondo (left), Naoki Kishi (center), and Maria Morimoto (right).

■Expectations for a serious venue to reflect on business and organization

Wakabayashi To start, could you please share an overview of your business and how you came to participate in First Leap?

Kishi I'm Naoki Kishi, CEO of EQUES, an AI startup now in its third year. We focus on developing AI solutions that support the pharmaceutical industry from validation to operation, as well as AI products that streamline quality assurance tasks. I joined First Leap through an introduction from JAFCO investment professional Aki Uehara. At the time, we were mainly doing contract development, but I was interested in packaging some of our good ideas, particularly in quality assurance in the pharmaceutical industry. I decided to participate because I believed that listening to the program's speakers could help drive the business from conception to launch and allow the development of growth strategies and scaling plans.

Morimoto My name is Maria Morimoto and I'm the CEO of GFLOPS Co., Ltd. I founded the company in November 2023 through the First Leap program. As for our business, we are developing a generative AI assistant service with an emphasis on task-oriented services.

At the time, I was working as a Google employee while preparing to co-found the company behind the scenes. I was considering joining First Leap with a co-founder who could be a true partner in the entrepreneurial journey, where joy is inevitably accompanied by hardship. We participated with the shared intention of launching the company if we could successfully navigate the challenges to the end.

Wakabayashi So you wanted to use the process as a standard for building the organization and to see if you could truly work together?

JAFCO's Masaaki Wakabayashi, in charge of planning and managing First Leap

Morimoto Exactly. I was also looking to evaluate not just team-building but also the feasibility of the business itself. Just having an interest in generative AI, a co-founder, and a desire to start a company might not lead to a successful product. I felt that spending three months debating and discussing would reveal what we needed to see.

Kondo I'm currently at the stage of launching a medical tourism business aimed at revitalizing regional areas in Japan. After considering various approaches, I decided to start a model case in the Kansai region as a subsidiary of a business partner I was fortunate to connect with, and I plan to expand this model across local areas throughout Japan. I learned about First Leap through the entrepreneurship community at Globis Business School, where JAFCO's investment professional was a speaker. Among the many accelerators out there, I found JAFCO's 50-plus-year history and extensive investment in various startups and SMEs to be genuinely trustworthy, and I wanted to learn from them.

At that time, I was deeply uncertain whether my business plan was solid, including aspects like fundraising. I wanted to validate the process of launching a business through First Leap.

■ The Greatest Appeal: Lectures Based on Real Experiences and Wisdom from Pioneers

Wakabayashi Next, please tell us about the benefits you felt from actually participating in First Leap. What were some of the things that helped you evolve your business and organization?

Morimoto Each study session featured entrepreneurs who are currently active as instructors, and I thought the quality of the lecturers was truly exceptional. The lectures were practical and grounded in real experiences that matched the participants' business phases, allowing us to relate to the content personally. For example, during a discussion on team building, an instructor said, "If you want to work with someone, keep inviting them and don't give up. It's essential to keep reaching out." Hearing that resonated with me and reaffirmed my understanding.

Kishi Through study sessions that incorporated personal experiences, I learned specifically about 'where to meet the customers I want to connect with' and 'how to convey my company's appeal.' This has led me to consciously think about my approach to potential customers. From there, I went on to actively pursue exhibiting at an expo, resulting in improved lead acquisition efficiency. I believe the concrete actions I took were due to the lessons

Kondo The Q&A sessions were also incredibly valuable, providing very realistic answers. I think the appropriateness of the themes and challenges discussed during the sessions prompted the right questions. I was able to ask questions based on the lecture content and receive direct feedback from the instructors. Later, I even followed up with them via social media for further discussions. The instructors, being passionate entrepreneurs themselves, provided thoughtful and heartfelt advice in response to our inquiries.

Morimoto Many of the insights gained from the lectures and responses to our questions resonated deeply later on. As we progressed toward launching our businesses, I found myself thinking, "So that's what they meant when they taught us that in First Leap."

I also felt the significant value of JAFCO's support in customer acquisition. During the program, my company hosted three webinars, and while our brand was not yet well-known, we received a substantial number of registrations thanks to JAFCO's assistance.

■Tangible results after participation

Wakabayashi Could you share any changes in your business or organization, as well as any visible results that you've seen after participating in First Leap?

Kishi As I mentioned earlier, we received hints on how to approach customer acquisition, which I feel has improved our ability to negotiate with large manufacturers. Additionally, what started as a commissioned project for quality assurance has now led to development requests from other companies, and I'm confident that we can transition from a commission-based model to a packaged service. Quality assurance is a niche area, but it is something that can be widely utilized across the industry, so how we expand from here will be key.

The learnings from First Leap have been a starting point, and I feel that we are making steady progress, so I intend to continue advancing the business with confidence.

Kondo During the final pitch of First Leap, I was told, "If you start, you'll find the hints." Then, at a subsequent pitch contest, one of the judges encouraged me, saying, "Just go ahead and do it, give it a try." That encouragement was a huge factor for me in deciding to take action. I began actively participating in business contests hosted by local governments to explore what was needed in various regions.

Now, after completing my MBA, I've left my position at a major pharmaceutical company and have committed 100% to my business since April. The reason I've been able to move forward with such speed is, without a doubt, because I participated in First Leap, which helped me grasp the direction of my business and gave me the push I needed. Additionally, through communication with fellow entrepreneurs, I was able to identify my strengths, which helped me clarify my business's unique points. These three months were also a time when I could figure out what not to do, which was a major takeaway.

Morimoto I was also able to realize the importance of focusing. When I participated in the program, I was juggling four projects simultaneously, which made each day tough. With the rapid advancements in generative AI, we needed to evolve even faster. In that context, participating in "First Leap" and interacting with the businesses and institutions JAFCO introduced to us helped define the direction our company should be taking, and we were able to narrow down our focus to one project, which was a great relief.

Additionally, through JAFCO's introduction, we secured a contract. In July, we introduced the generative AI assistant AskDona, which provides prompt and accurate responses to inquiries regarding RIKEN's supercomputer, Fugaku. As part of JAFCO's customer acquisition support, we engaged in technical discussions on generative AI with RIKEN. Following verification and evaluation, we successfully implemented the solution, making this a promising case for the practical application of AI in generating appropriate responses from vast amounts of data.

Our company is currently on a positive trajectory, and one of the catalysts was definitely First Leap. Moving forward, we aim to become a bridge for many companies struggling with how to best use generative AI technology.

Wakabayashi Seeing how all of you are progressing makes us feel that hosting this program was truly worthwhile. We are committed to making future iterations of First Leap even more valuable. Finally, could you each share a message for aspiring entrepreneurs?

Kishi Before participating in First Leap, my focus was often on short-term revenue, and I rarely had the opportunity to sit down and deeply think about our business and organization. Now, thanks to the conversations I've had with the instructors and JAFCO staff, I'm able to think about what kind of company we want to build and what kind of organization is necessary to achieve that. I now plan our business with a three-to-five-year outlook.

It's rare to find a partner like JAFCO that will run alongside you as you seriously think, struggle, and take action in the process of starting a business. For anyone even slightly interested, I encourage you to seek out the next opportunity and take it for yourself.

Morimoto Starting a business is often something you do alone, from scratch. However, with First Leap, the investment professionals at JAFCO, drawing on their investment experience, work together with you to think through what's needed for the business, grapple with challenges, and take action. It's an incredibly valuable environment.

Another appeal is the many like-minded peers you'll meet. From student entrepreneurs to those already running businesses, to those still considering starting one, the diversity of participants offers a wide range of learning opportunities. The ability to share both failures and successes in such a setting will surely accelerate the growth of your business.

I believe that starting a business is a path one can choose positively as a life decision. If the program is held again, I encourage people to consider participating.

Kondo For me, First Leap was a place where I gained a lot of high-quality, real, and actionable information. Up until now, I've been gathering, analyzing, thinking, and deciding on information all on my own. But the new and diverse connections I made with the instructors, JAFCO members, and fellow participants gave me the essential insights I needed to make the right choices for the growth of my business.

For those who are trying various things but struggling with which direction to take, or those unsure of how to move toward their goals, First Leap will serve as a guidepost. Without high-quality information, it's impossible to make high-quality decisions. I believe that for anyone who feels something is missing but can't quite identify what it is, this kind of environment offers a meaningful challenge.

Wakabayashi Thank you all for your powerful messages! We are sincerely looking forward to your future activities!

In conclusion

The first round of the entrepreneurship support program First Leap, which was launched with the aim of increasing the number of entrepreneurs driving the startup ecosystem, provided an opportunity for those who are seriously committed to starting a business and want to be fully prepared, as well as those who wish to quickly test their business ideas and organizational structures. It supported individuals who, despite their struggles, decided to take action, as well as those who had already begun moving forward.

At JAFCO, we will continue to experiment and refine our approach in order to create even better opportunities for entrepreneurs. Please stay tuned for JAFCO's EIR program and other new initiatives!

Top row (from left): JAFCO's Ayuki Shirakawa, Nao Oishi, Aki Uehara, Masaaki Wakabayashi.
Bottom row (from left): Nao Kondo, Naoki Kishi, and Maria Morimoto.