Startup Branding ~ The Key to Centripetal Force for Building a Platform

How are "co-creation" and "branding" necessary for startups? Vincent Philipp, President of Plug and Play Japan (※1), which supports startups, and Keisuke Konishi of Dentsu Inc. discussed the current situation and future prospects.

※1 Plug and Play Japan: Founded in the U.S. in 2006 as an innovation platform connecting "large corporations" and "startups." Established its Japanese subsidiary in 2017. Operates startup acceleration programs and plans to begin investing starting in fiscal year 2019. Builds communities where large corporations and startups coexist.

 

From left: Keisuke Konishi of Dentsu Inc., Vincent Philippe of Plug and Play Japan

Large corporations are indispensable partners for startups

Konishi: First, could you briefly explain Plug and Play's unique business model and its social role?

Philippe: Our core belief is that startups cannot grow without large corporations, and large corporations cannot accelerate innovation without startups. That's precisely why we exist—to bridge that gap and match the two.

Through our acceleration programs (*2) focused on various themes, we create environments where large corporations and startups interact. This fosters a cycle where large corporations gather around startups, and in turn, more startups gather around them...

*Acceleration Program: A time-limited program conducted by large corporations as part of open innovation, aimed at collaboration with or investment in startups. For startups, it provides opportunities for connection and matching with large corporations.

 

Konishi: At Plug and Play, you've systematized the know-how for nurturing startups, but the key point is building a "co-creation" platform that transcends the boundaries of companies and organizations.

In Japan too, not only has fundraising become easier for startups recently, but spaces like coworking facilities are rapidly emerging. These enable collaboration beyond traditional organizations and corporate structures, significantly transforming the environment in various ways.

Philippe: Yes. Observing these movements, I feel that forms of co-creation involving diverse people across organizational boundaries are precisely what's needed now to enhance corporate branding and value.

Branding around the purpose of "solving social issues"

Konishi: When we talk about "branding" for startups, we often imagine activities like gaining recognition through mass advertising. However, fundamentally defining a company's purpose and vision is essential for creating business centripetal force – attracting investment and talent.

Philippe: For startup branding, the company's mission, vision, and shared values are extremely important. This is because startups often have a business model concept but no actual product yet.

Specifically, we support companies in the very early stages of founding. To communicate the appeal of the company and its venture, it's vital to clearly articulate its purpose – what societal challenge it solves and how it will change the world. Then, we engage large corporations that resonate with this purpose.

Konishi: Beyond building the foundational platform for the business, creating a community of supporters—like business partners and early customers—is also essential.

Philippe: Yes, community building is indispensable for a startup's growth. Therefore, articulating and communicating the company's purpose, along with targeting and marketing—deciding who to reach and what message to convey—are major points. We also host events at our company to explore these meanings.

Konishi: I recently attended a startup expo and was struck by the incredible energy there.

Plug and Play Japan's "EXPO" event, where large corporations and startups present the results of their acceleration programs.

Philip: Clarifying your purpose is the first step you should take when starting a business. It's crucial not only for securing partners externally but also for attracting the right people to work within your company and for defining the meaning of working there. Precisely because the team is small, acquiring top talent early is essential. When team members are aligned, growth accelerates.

Build a strong brand purpose and centripetal force, then use that as the core to increase collaboration with teammates and other companies to elevate the brand.

Large corporations also need to communicate their value to startups.

Konishi: How do you perceive the branding challenges facing Japanese startups? Increasing the number of startups might be the biggest challenge, but there's also significant room for improvement in how they communicate their value through branding.

Philippe: Startups frequently give presentations, or "pitches," aimed at large corporations and investors. Here too, the key lies in how effectively they can communicate the company's value and the potential of their business. Global startups excel at this aspect; they essentially convey 100 things as if they were 120. Japan, on the other hand, tends to convey 100 things as if they were 80. To increase collaboration between startups and large corporations, I believe we should also focus on improving pitch techniques.

Konishi: The nature of collaboration with large corporations also needs to evolve beyond one-way investment or technology utilization. We must advance approaches that leverage each other's resources and ideas to create mutual value.

Philippe: Large corporations don't just listen to pitches. They also conduct "reverse pitches," where they present their own value and vision to startups. By clearly communicating their own value and vision, large corporations can better connect with promising startups. It also provides an opportunity for large corporations to redefine their own vision, brand, and what they seek from startups.

Another crucial point is that while both sides communicate their vision and value, it's essential to interact on equal footing, not with one party dominating. This fosters a mindset of working together.

Konishi: We're considering the theme of rebranding Japan. The Japan brand still strongly carries the image of quality, trust, and technology built by its manufacturing sector.

At the same time, I feel that becoming large corporations has led to stagnation, and the brand itself—the "noren"—has even become a "ball and chain" hindering innovation. Could collaboration with startups be an opportunity to change this internal culture and create new value?

Philippe: The term "open innovation" has taken root in Japan, and we've reached the phase where it actually creates value. Japan once achieved continuous innovation in manufacturing and other sectors.

The large corporations that built modern Japan were all startups themselves in the past. That DNA should be leveraged for developing modern technologies like software and AI. We'll likely see more cases where large corporations and startups mutually enhance value while communicating their shared vision and mission.

(After the discussion)
The Future of New Value Co-Creation Between Startups Driving Social Issue Solutions and Large Corporations

Japan, often called a pioneer in social challenges like declining birthrates, aging populations, and shrinking demographics. Amidst this, a new generation of entrepreneurs is launching diverse innovation initiatives. These aim to realize human-centered values and ways of life through technology, or to solve regional and societal issues.

Furthermore, the rapid development of supporting environments like accelerators and coworking spaces is propelling value co-creation between large corporations and startups into a new phase. This holds the potential to generate impact that transcends corporate boundaries and transforms society in the future.

I firmly believe that co-creation-based innovation and branding centered around highly social "purpose" will become a key strength originating from Japan in the future.