1. Overview

The Tokyo Consortium held its second event of the fiscal year on September 16, 2022. Titled "Mindset Event for Creating Unicorn-Level Companies," it targeted mid-to-late stage startups and those aiming for that stage, deepening their understanding of the capital strategy necessary to solidify their business plans.We welcomed Masayuki Tadokoro, CEO of Unicorn Firm Inc., as our keynote speaker. This in-person event was held at CIC Tokyo and was attended by approximately 60 participants.

2. Event Implementation Overview

(1) The Essence of Strategy for Startups

Achieving PMF (Product-Market Fit) is crucial for early-stage startups. However, once a company enters the mid-stage and beyond, a portfolio perspective becomes indispensable. To formulate growth strategies from this perspective, it is vital to reduce "waste, inefficiency, and inconsistency" within the business.

First, regarding "inconsistency," this is the most easily overlooked of the three elements. Large startup organizations, in particular, tend to develop inconsistencies.For a startup's sustainable growth, it's crucial to maintain balance across various aspects like finance, product, marketing, and governance.
Furthermore, "Muri" fundamentally means not having a clearly defined target market. Segmenting customers and markets, and determining where and how much to invest in marketing is vital. Thus, devising a strategy to conquer the target market without "Muri" is what reduces "Muri."

Finally, to reduce waste, it is necessary to determine which matters are critical to the company and which are not. It is important to consider what the company's Critical Success Factors (CSF) are and aim to build defensive assets accordingly.

(2) Building a MOAT: The Key to Strategy in the Middle to Later Stages

MOAT refers to the "moat" that protects a business castle from attack by external enemies (competitors). For mid-to-late stage startups, it is crucial to clearly identify what constitutes their defensive assets and to thoroughly articulate their advantages and defensive elements.

In particular, the founder's authority is crucial when building a MOAT. When a startup reaches Series A or beyond, whether the founder possesses authority within that business domain significantly impacts the company's culture and the ability to recruit top talent.

And I believe entrepreneurs who always keep a "defense point" in mind can spot winning strategies. While there may be as many ways to spot winning strategies as there are companies—say, 100 ways for 100 companies—I think constantly considering "defense points" helps build a moat and increases the likelihood of business success.

(3) Startup Competitive Strategy as a Story

When designing competitive strategy as a narrative, it is crucial to build a flywheel. A flywheel, literally meaning "winged wheel" in Japanese, represents the process of identifying your Critical Success Factors (CSFs) and designing how to combine positive loops around them to sustain ongoing success. By interweaving the individual stories unfolded in each case study, you can create a powerful defensive asset.

4. Invitation to Join the Tokyo Consortium

For membership inquiries regarding the Tokyo Consortium, please contact us at tokyo_consortium@tohmatsu.co.jp.

●Contact for inquiries regarding this matter:
Tokyo Consortium Operations Office tokyo_consortium@tohmatsu.co.jp
Operations Contractor: Deloitte Touche Tohmatsu LLC
Reception/Response Hours: 10:00 AM to 5:00 PM (excluding Saturdays, Sundays, and national holidays)