Shirley Binder knows a thing about facilitating big investment deals. A woman who refuses to compromise her sense of self, Shirley has climbed to the top and today runs the Tel Aviv branch of Samurai Incubate, a Japanese VC which invests in Early-Stage startup companies in Japan, Africa and Israel. Currently managing their sixth fund, the company is becoming a driving force in accelerating business relations between companies in Japan-Israel.
In this interview, Shirley tells us about her work with Japan, the trends of the market, and her own experience as a female in a leading position.
You started your career as a lawyer and eventually joined Samurai. Can you tell us a little bit about your background and how you got to work with Japan?
Early in my career, I started working in a big law firm. I quickly realized that I didn’t want to do legal work all day. I wanted to study and gain experience in the field of business, and that’s when I decided to join Stier Group, who produces professional conferences and events.
During my two years of working with Stier, I learned how to run a business and manage budgets, and the work helped me realize my love for combining business and law. Coincidentally, a CEO of a company under Samurai connected me with Samurai who was looking for a business and legal manager. It was a golden opportunity for me and so, despite not knowing anything about the country, I packed my bags for Japan.
Can you tell us more about Samurai Incubate and your role as head of the Israeli branch?
We meet many startup companies throughout the year, in order to find the perfect match for our fund’s LP’s. The list of relevant verticals is derived from the LP’s fields of interest, and include, for example, construction, logistics, digital medical care, and more. Ultimately we want to find the most relevant startups for investors in Japan, as our purpose is to bring startups exclusively to the Japanese market.
We also provide consulting services for enterprise companies in Japan, helping them find relevant technologies in Israel and then implement them into the company, and assist Israeli startups in advanced stages to find investors in Japan.
As for my role, I am the manager of all the company's activities in Israel. This includes (but not limited to) basic administration affairs and budget management, and maintaining ties with the ecosystem in Israel, as well as coordinating with our legal advisors.
Israel is known for its startup culture. In Japan, startup culture may not be as prominent but it’s not non-existent. What is the difference between the two startup cultures?
According to my knowledge, the obvious difference between the countries is first and foremost the quantity: while Israel is home to over 8,000 active startups at the moment, Japan has a quarter or less of that amount. Looking at Israel, the supply is far larger.
If we dive a bit deeper, Japanese startups are more market-oriented. They develop technologies and products that are relevant to the local market. In Israel, the market is very small and startups are not set up to stay in the local market. Their state of mind is to always export the technology, from the beginning all conduct is in English and they are always with the outward look.
You work with companies of all sizes in Japan. Do you find a challenge in connecting a small company with a startup, as opposed to, let’s say, a large company?
It very much depends on the company itself. The main challenge in working with large companies is the length of the process when it comes to decision making. The larger the company, the longer and more branched the company's decision-making method. More people need to approve the process and reaching everyone takes time, which is the main disadvantage. Having said that, I do see improvements in decision making processes over my years in Samurai.
In smaller companies, the real challenge is the understanding that even for a pilot move it is necessary to allocate resources. Not all companies can find the resources to invest in and support such an activity. The main challenge, if at all, is to convince the company that money and resources need to be invested in the project in order to make it work.
By connecting companies across geographical distances, Samurai Incubate is playing an active role in shaping the future of the market. What are some trends you have noticed in the market over the years?
In the 5 years I have been working at Samurai, I’ve witnessed a mutual growth in interest. I used to have to “convince” Israeli startups to think about Japan, but today many of them turn to us because they know we are a Japanese company and realize the potential.
The understanding of the great business potential is expanding on both ends. If once there was a doubt that things could happen, today it is already certain and there is a willingness (and a way) for both parties to try and produce business.
In the last year, there has been a very big interest from companies in Japan for smart city solutions. The pandemic has only reinforced the demand for these kinds of technologies that can convert services into digital services – medical services, communication channels, employee management solutions, anything. If anything, the COVID-19 pandemic has given birth to a surge of digitalization in Japan.
And with digitalization comes cyber threats and attacks on companies, so solutions are needed – everything needs to be implemented digitally.
You mentioned COVID-19, which certainly took the world by surprise with some businesses suffering greatly as a result. Do you think the status quo will impact decisions to invest?
When it comes to investments, we were lucky enough to raise our 6th fund long before the outbreak of the pandemic, so we are able to continue our operations as usual, and we generally keep investing and looking for different opportunities. In Japan, as far as we can tell and from our experience with the colleagues we work with, they’re trying to operate as usual.
A serious change (or rather improvement?) we see is the understanding in Japan that meetings can be held virtually; for a country that respects face-to-face interaction, it’s huge. There are still some physical sessions, however the way of thinking has changed. There is an understanding that it is possible to run a business without a physical presence, which to me is something significant.
Japan’s business scene has a reputation for being dominated by men, especially when it comes to managing positions. As a female in a leading position, what is your experience working in the market?
When I started working at Samurai, I was warned that the business world in Japan was dominated by men.
I can say, at least the first time I came to Japan, I was very apprehensive about how I was supposed to be – should I change myself? Or be who I am? And I realized that when you come as a professional person who has a professional value to give, you don’t really have to change who you are. I quickly realized that they would accept me with my curls and the fact that I am an opinionated and colorful woman.
This is a tip not only specific to Japan but in general: understand that you do not have to change in order to be accepted. If you have something to give and you are a professional person, you’ll be accepted just as you are.
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