Global Startups and Dentsu Inc.: What's Most Important in Business Development?

The sports startup support program " SPORTS TECH TOKYO " (hereafter STT). This time, we spoke with three Dentsu Inc. producers participating in STT about business development, arguably the program's most defining feature.

How do Dentsu Inc. producers help transform startups' technologies and ideas into new products and services, then secure cooperation from partner companies and organizations to get them operational as actual businesses?

Within the STT team, Mr. Koide, Mr. Yasutake, and Mr. Shudou (from left) are primarily responsible for business development with startups and partners.

<Table of Contents>
▼The Essence of SPORTS TECH TOKYO Lies in "Business Development"
▼What Dentsu Inc. Did and Learned Leading Up to World Demo Day
▼What kind of support programs do startups actually want?

The Core of SPORTS TECH TOKYO Lies in "Business Development"

Hiroaki Shichijo, Transformation Producer

Amidst the global proliferation of startup support programs and investor matchmaking events, SPORTS TECH TOKYO (STT) stands out as particularly vibrant. Its defining feature is the strong commitment from the organizers (Dentsu Inc.) to support startups from the initial business development concept through networking, proof-of-concept testing, and ultimately to full commercialization.

Hiroaki Shuzo, a Transformation Producer at Dentsu Inc. who supports corporate new business development, explains their role in STT:

"Our job as organizers is to 'create new businesses.' As I'll explain later, monetizing a startup's technology and turning it into a viable business is difficult for a single startup alone. Therefore, we conduct technical verification alongside the startup while also examining what challenges exist in the sports world. We then consider what kind of partners are needed to solve those challenges, conceptualize the business scheme, and coordinate everything, including negotiations with partners."

Similarly, Transformation Producer Shohei Koide describes the appeal of the STT program as "where the energy converges."

"In the coming era, new businesses will emerge unexpectedly within diverse contexts. We can no longer just wait for client requests; we must go out and interact with various types of people to create business. STT brings together diverse individuals—startups, sports organizations, media, partner companies—all driven by passion. This synergy creates efficiency, making it a place where business is born," says Koide.

Responding to this, Yuta Yasutake, who has been involved with the program since its inception, states, "STT has created a community overflowing with business opportunities."

"STT has many partner companies, sports-related organizations, and sponsors (companies and groups supporting the STT program in various ways) participating. The key point was the shared theme of sports. The scope of sports is actually very broad, and partner companies are hopeful about the potential for connections across many areas. As a result, a community with more energy than expected formed, and we received inquiries from many companies, including some from other countries like France, asking, 'How is this program being realized?'" (Mr. Yasutake)

Mr. Shutsujo also believes the "scalability" inherent in the sports field was a major factor in STT's success.

"With sports as the core, it's easier to expand into solving various societal challenges. What surprised me was that over 33 countries and approximately 300 startups applied for this program. The opportunity to engage with this many startups is only possible because of 'sports' gravitational pull.' As mentioned earlier, in today's world, business won't emerge unless you go out and seek it. Becoming a place where you can meet people from all these different areas is one of STT's core values." (Mr. Shutsujo)

However, community building itself is not the program's ultimate goal. The three unanimously emphasize that what truly matters is Dentsu Inc. Inc.'s role within this ecosystem: co-developing businesses with startups in this space where new ventures are born, and expanding those businesses beyond sports.

"We identify where startup technologies can be useful—areas they might not see on their own—gather that information, and connect the dots. Serving as that glue is the first key point. Dentsu Inc.'s traditional business, epitomized by one-off sales deals, was fundamentally about closing things quickly. But we do the opposite: we open business outward. We take a long-term view to ensure world-class startups don't get buried." (Mr. Koide)

What Dentsu Inc. Did and Learned for World Demo Day

Shouhei Koide, Transformation Producer

The "World Demo Day," an interim presentation of STT's results, was held in August as a culmination of one program phase. Leading up to this Demo Day, three producers worked alongside startups on business development.

Mr. Yasutake described their actual approach: "First, we verified each startup's technology and redefined its added value."

For example, take the Finnish startup Omegawave. While its service was already being used by professional soccer clubs like Ajax as a conditioning management tool, its unique feature was the ability to capture not only physical data like heart rate but also mental data such as brainwaves.

"When we really listened to Omegawave's story, we discovered it also served as a communication tool—helping coaches and players initiate conversations by showing mental metrics when athletes drank alcohol or were sleep-deprived. This opened up possibilities beyond sports teams. It could become a tool with broader societal impact. We conducted similar verifications with other startups," said Yasutake.

Omegawave holds potential applications beyond sports. At World Demo Day, CEO Gerard Bruen announced partnerships with three organizations—the most among the finalists.

While "sports" served as the starting point, each startup's business development progressed with an eye toward broader potential. Mr. Shutsuyo described the key focus in business development:

"What challenges does implementing this actually solve? Perspectives like 'making people happier' or 'enriching society' are crucial. If business and money take precedence, it's easy to fall into the mindset of 'we want to use this technology, so let's force it here.' But unless you start with the challenge itself, it won't work," said Mr. Shuzo.

Mr. Yasutake also agrees on the importance of "starting with the problem."

"Even just in the sports ecosystem, there are numerous challenges, but the startups themselves often don't see them. Sometimes, a single startup can't solve a particular problem alone, but we can bring in partners to make it happen. For example, if media involvement would help, we can bring in media partners," said Yasutake.

What challenges exist in the sports world?

"One is that most sports aren't being 'filmed' or 'broadcast.' This includes minor professional sports, elementary/junior high school matches, or individual sports like mountain or ocean activities. Yet there's demand to film these sports, and if broadcast, people want to watch them. Suppose a startup develops unmanned cameras or drones for filming. Then the question becomes: Where will it be broadcast? How will it be delivered? That's where partners become essential. Then there's the fan engagement system. When you can deliver footage of sports that couldn't be shown before, fan passion ignites. You need to create a scheme for how to turn that generated passion into a business or venture." (Mr. Koide)

For example, Israel's Pixellot offers a product where AI automatically films and records sports events. While originally intended for professional sports venues, Mr. Shutsujo notes, "If installed in schools or community gyms, it could potentially build a long-tail video business, similar to selling photos from school sports days."

Pixellot, equipped with AI, enables automatic multi-angle filming. While originally designed for professional sports, the challenge of "no cameraman" also exists in schools and community sports.

Additionally, the American platform SportsCastr opens sports commentary to the general public. For example, while Thai and Vietnamese players are active in the J.League, broadcasts aren't available in diverse languages like other local broadcasts. Mr. Shuzo therefore notes, "Personally, I feel that even if Thai fans become interested, there's a barrier to them watching consistently." He believes that if Thai soccer fans knowledgeable about the J.League become casters providing commentary, it could create the potential for J.League broadcasts to expand globally.

"For platform operators, 'multilingualization' is costly. SportsCastr solves that challenge while also becoming a means for casters to pursue side gigs or self-fulfillment. By tackling such social issues, the value and appeal of a startup completely transform," says Mr. Shuzo.

The live streaming platform SportsCastr is creating new forms of fan engagement by tapping into the hidden desire to share one's passion.

Such unique startups rarely solve problems alone. That's where Dentsu Inc., acting as a hub, comes in.

"For example, triathlons aren't often broadcast on TV yet. But if you had an environment where you could watch them instantly, along with someone providing appropriate commentary, that could create fan engagement. Combining something like SportsCastr with Pixellot could make that happen, right?" (Mr. Koide)

What kind of support program do startups actually want?

Transformation Producer Yuta Yasutake

However, bringing a business to a visible stage within the limited timeframe of the program was no easy task. Dentsu Inc.'s members were also honed through this process.

"First, we check the feasibility—whether the technology actually works. Then, we verify if it genuinely solves the problem and brings joy to people by implementing it with the team and athletes. This PDCA cycle must be turned over as quickly as possible. Speed is crucial for startups; even a delay of just a few months can be fatal. So we had to decide 'Which team or athlete should we do the PoC (Proof of Concept) with?', 'Whose cooperation should we secure?', immediately compile and propose it, and then build the environment. Honestly, it required a tremendous amount of effort," said Mr. Koide.

At STT, we have to somehow drive business development within a limited timeframe. Unlike Dentsu Inc.'s traditional business, where we started with client briefs, we must identify challenges ourselves. What I've learned is to first have the courage to dive in. Build the concept in a day, then just move forward—that's when you see different things. We learn this every day. (Mr. Yasutake)

Mr. Shucho states, "The business development we're doing is essentially a challenge to go from zero to one (0→1)." Once that seed of 0→1 sprouts, the next step is to seek collaboration from more members within Dentsu Inc. to grow it together – this is one flow of STT's business development.

"Dentsu Inc. has tremendous strength in cultivating what already exists. However, opportunities for 0→1 challenges remain scarce, and we haven't fully grasped the winning formula. Through this program, we're growing in how to create 0→1 and what actions to take to achieve it. I believe this growth will be applicable beyond STT work," says Mr. Shuzo.

In August, the World Demo Day was held at Oracle Park, home of the San Francisco Giants. Representatives from various sports leagues and associations, investors, and media packed the venue, resulting in significant coverage.

"Seeing so many people gather for the Demo Day was truly impressive. I was moved by how Dentsu Inc. managed to pull off something of this scale. Even after the event, the response was substantial. We received inquiries via social media from companies expressing interest in participating next year if it happens, and others wanting to seriously consider investment," said Mr. Shuzo.

The World Demo Day held at Oracle Park, one of Major League Baseball's sacred grounds, was a huge success.

On the other hand, the pressure leading up to Demo Day was immense.

"The April kickoff was also well-attended, but that was driven by anticipation. Whether people would come to the Demo Day, however, depended entirely on 'what we had accomplished since the kickoff.' No matter how many people attended the kickoff, if no one came to the Demo Day, it would have been a failure. But in reality, many people did come. I think that shows everyone had challenges they couldn't solve alone and placed their hopes in STT. The best part of the Demo Day was seeing how thrilled the 12 finalists were. Not just the finalists, but other participants too, told us that STT was exactly the kind of program startups had been hoping for," said Mr. Koide.

What kind of program did startups want? It wasn't just one that connected investors with startups. It was a program that supported business development together, transforming startup technology into viable businesses that could be utilized where they were truly needed.

"Leveraging Dentsu Inc.'s network, we identify corporate and social challenges visible only through our unique positioning, then combine them with startup value to create businesses. This is something only Dentsu Inc. can do, and I believe it holds potential to generate diverse businesses beyond STT as well," (Mr. Yasutake)

While rooted in sports, the business models born here are expanding into other fields and solutions for societal challenges. We encourage you to keep a close eye on STT's future, where numerous such initiatives are emerging.