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  4. Business Model Construction at Startup Companies and Applying the Methodology to Corporate Venture Projects

2015 Vol.4
Business Model Construction at Startup Companies and Applying the Methodology to Corporate Venture Projects

New Businesses Development and Seed Acceleration with the Lean Startup Method

2015/11/09

In this paper, I explain important points for the success of startup companies. Focusing on the concept of Open Innovation, in which large companies leverage their innovation by utilizing startups, I present the key approaches and implications established through my consulting work. Moreover, I provide information that will be useful for startups in solving their problems by discussing trends concerning new financing methods in Japan. First, I present a situational analysis of startups in Japan and explain the social roles that startups will fulfill in today’s “fourth startup boom” with governmental support leading to an increase in the number of IPOs. I then explain the key characteristics of startups in this fourth boom period and next focus on a notable movement at large companies, namely, the shift to utilizing external resources to create new businesses. I describe the key steps for constructing a business model by this new approach and discuss the effectiveness of the Lean Startup Method .where new businesses are launched using minimal resources.as the essential concept for startup growth. Lastly, regarding financing trends in Japan, I describe the characteristics of crowdfunding and other financing methods in venture accelerator programs and discuss financial institutions’ efforts toward improving financial technology, so-called FinTech , and its meaning for startups.

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