Procean Columbia 2015

PROCEAN

Team 4: Yoshihisa Shiraishi, Bumpei Sugano, Hiroki Ichikawa and Namiko Sawaki

An equity/operational partner of Japanese SMEs to expand the business abroad by providing

capital, talent and network

Interviews yesterday: 10Total interviews to date:42

Bumpei Sugano

Hiroki Ichikawa

Namiko Sawaki

Ministry of Foreign Affairs [Government]

Ministry of Economy,Trade and Industry

[Government]

Sojitz Corporation[Trading House]

Yoshihisa Shiraishi(Founder & CEO)

Mizuho Securities[M&A Advisory]

First Eastern Investment[Private Equity]

Team

VALUEPROPOSITIONS

CHANNELS

CUSTOMERRELATIONSHIPS

CUSTOMERSEGMENTS

REVENUE STREAMS COST STRUCTURE

KEYPARTNERS

KEYRESOURCES

KEY

ACTIVITIES

・We support our customers not only through consulting without taking risks but also investing and serving as management at JV

・Mostly salary of employees, travelling fee and office rent

・ 3STONE Inc. (Family company)・Ministry of Economy・ Chamber of Commerce・ Lawyers & Accountants

・ Consulting fee ・ Capital gain through selling stakes of JV after 3 – 5 years to customer / partner company

・ USD Half million to 1 million raised through family company and their friends ・ Network in HK and all over the Asia

・ Set up Joint Ventures in outside of Japan with customers・We support JV for other than operation, such as finance, accounting, marketing, identifying local management etc

・ Building up relationships with customers through introduction by friends and the government

・ Introduction basis through friends and government etc

・ Japanese companies ・ Revenue size USD 5 to 20 million ・ Haven’t expanded their business in outside of Japan yet or those have not been well thus far・ Companies have their own final products with brand / technology

Business Model Canvas (Day 1)

VALUEPROPOSITIONS

CHANNELS


CUSTOMERSEGMENTS


KEYPARTNERS

KEYRESOURCES

KEY

ACTIVITIES

Problem:・ Lack capability to operate abroad re equity, talent and local network

Our Service: ・ PROCEAN is a partner of Japanese SMEs to expand its business abroad

Value Proposition:・ Reach to undiscovered SMEs and provide them with equity, talent and local network ・We support our customers not only through consulting without taking risks but also investing and serving as management at JV

・ Fixed costs: Legal fees・ Variable costs： labor costs, sourcing introduction fees・Mostly salary of employees, travelling fee and office rent

Sourcing partner:・ Small-sized accounting firms・ Banks・Ministry of Economy , trade & industry・ JETRO

Operation partner：・ Small-sized law & accounting firms・ Independent consultants ・ 3STONE Inc. (Family company)・Ministry of Economy・ Chamber of Commerce・ Lawyers & Accountants

Dynamic pricing (Negotiation basis)・ Consulting fee ・ Capital gain through selling stakes of JV after 3 – 5 years to customer / partner company ・ Dividend from partner parent company

・ Finance・ Talent・ Sourcing network ・ Local network in HK, Singapore, Thailand and the U.S.・ USD Half million to 1 million raised through family company and their friends ・ Network in HK and all over the Asia

・ Sourcing potential customers・ Hiring multilingual talents with operational experiences・ Fundraising ・ Expanding local networks・ Set up Joint Ventures in outside of Japan with customers・We support JV for other than operation, such as finance, accounting, marketing, identifying local management etc

・ Get – Introduction through friends, accountants, banks or the government・ Keep – Discount for repeated customers・ Grow – Diversify serviceBuilding up relationships with customers through introduction by friends and the government

・ Friends know SMEs’ owners・ Small-sized accounting firms・Ministry of Economy・ Chamber of Commerce・ Introduction basis through friends and government etc

・ Japanese companies SMEs ・ Revenue size: USD 5 to 20 million ・Will expand business in HK, Singapore, Thailand or the U.S.・ Have own final products・ Haven’t expanded their business in outside of Japan yet or those have not been well thus far・ Companies have their own final products with brand / technology


VALUEPROPOSITIONS

CHANNELS


CUSTOMERSEGMENTS


KEYPARTNERS

KEYRESOURCES

KEY

ACTIVITIES

Problem:・ Lack capability to operate abroad re equity, talent and local network


Value Proposition:・ Reach to undiscovered SMEs and provide them with equity, talent and local network

・ Fixed costs: Legal fees・ Variable costs： labor costs, sourcing introduction fees

Sourcing partner:・ Small-sized accounting firms・ Banks・Ministry of Economy , trade & industry・ JETRO

Operation partner：・ Small-sized law & accounting firms・ Independent consultants


・ Finance・ Talent・ Sourcing network ・ Local network in HK, Singapore, Thailand and the U.S.

・ Sourcing potential customers・ Hiring multilingual talents with operational experiences・ Fundraising ・ Expanding local networks・ Gaining certificate as a trustful partner from government

・ Get – Introduction through friends, accountants, banks or the government and various exhibitions

・ Keep – Discount for repeated customers・ Grow – Diversify service

・ Friends know SMEs’ owners・ Small-sized accounting firms・Ministry of Economy・ Chamber of Commerce

・ Japanese SMEs ・ Revenue size: USD 5 to 20 million ・ Industry: Food, medical device and industrial ・Will expand business in HK, Singapore, Thailand or the U.S.・ Have own final products

・ Family company & friends to provide us capital


VALUEPROPOSITIONS

CHANNELS


CUSTOMERSEGMENTS


KEYPARTNERS

KEYRESOURCES

KEY

ACTIVITIES

Problem:・ Lack capability to operate abroad regarding equity, talent and local network


Value Proposition:・ Reach to undiscovered SMEs and provide them with equity capital, senior management talent and local network

・ Fixed costs: legal fees・ Variable costs： labor costs, sourcing introduction fees

Sourcing partner:・ Small-sized accounting firms・ Banks・Ministry of Economy , Trade & Industry・ JETRO

Operation partner：・ Small-sized law (including HR) & accounting firms・ Independent consultants ・ PR Company



・ Sourcing potential customers・ Hiring multilingual talents with operational experiences・ Fundraising ・ Expanding local networks・ Gaining certificate as a trustful partner from the government ・ Collecting know-how of success factors to expand abroad

・ Get – Introduction through friends, accountants, banks, the government and various exhibitions. Exposure in the media ・ Keep – Discount for repeated customers・ Grow – Diversify service

・ Direct・ Friends know SMEs’ owners・ Small-sized accounting firms・Ministry of Economy, Trade & Industry・ Chamber of Commerce

・ Japanese SMEs ・ Revenue size: USD 5 to 20 million ・ Industry: Food and medical device ・Will expand business in HK, Singapore, Thailand or the U.S.・ Have own final products



VALUEPROPOSITIONS

CHANNELS


CUSTOMERSEGMENTS


KEYPARTNERS

KEYRESOURCES

KEY

ACTIVITIES

Problem:・ Lack capability to operate abroad regarding equity, talent and local network


Value Proposition:・ Reach to undiscovered SMEs and provide them with equity capital, senior management and local network

・ Fixed costs: legal fees・ Variable costs： labor costs, sourcing introduction fees

Sourcing partner:・ Small-sized accounting firms・ Banks・Ministry of Economy , Trade & Industry・ JETRO

Operation partner：・ Small-sized law (including HR) & accounting firms・ Independent consultants ・ PR Company

Dynamic pricing (Negotiation basis)・ Consulting fee (based on pre-package)・ Capital gain through selling stakes of JV after 3 – 5 years to customer / partner company ・ Dividend from partner parent company


・ Sourcing potential customers・ Hiring multilingual talents with operational experiences・ Fundraising ・ Expanding local networks・ Gaining certificate as a trustful partner from the government ・ Collecting know-how of success factors to expand abroad

・ Get – Introduction through friends, accountants, banks, the government and various exhibitions. Exposure in the media ・ Keep – Discount for repeated customers・ Grow – Diversify service

・ Direct

・ Japanese SMEs ・ Revenue size: USD 5 to 20 million ・ Industry: Food and medical device ・Will expand business in HK, Singapore, Thailand or the U.S.・ Have own final products



PROCEAN

SMEs(Food & Medical Device)

Equity CapitalManagement Local Network

Consulting

The U.S. Hong Kong

Singapore Thailand

Customers

Operation Partner

Gain CertificateGovernment

Collaborate

AccessSourcing PartnersRegional

Banks

Business Expansion

Joint Ventures

Fund Raising

Family Company

Individual Consultants

Smallaccounting

firms

Diagram of the Business

Small law &accounting

firms

Revenue Model

Investment Consulting

Capital Gain & Dividends・ Divestiture of stakes in JV to partner company or local company・ Gain dividends from partner company

Advisory Fee・ Introducing potential customers・ Financial advisory・ Consulting

Gain Revenue

1 2

Pricing Model (Consulting Service)

Items Fee StructureContract Period

Milestones

New Customer Acquisition

$3,000 4 monthsSigning up a

contract with 1 new customer

3% of sales volume

1 yearSales of

customers’ products

Market ResearchDelivery of the

report (1 country / 1 business)

$3,000 3 months

Business Plan

Completion of making business plan (1 country/ 1

business)

$5,000 5 months

Support of Receiving Subsidy

from the Government

Completion of receiving the

subsidy$1,500 3 months

Customer Segment

• ~$5mil;• Non-final products; or • Unstable domestic

operation

• $5mil ~ 20mil; • Final products - F&B, medical

devices;• First class products with no local

networks, no human / financial resource; and

• Stable domestic operation

• For SMEs with $5 - 20 million sales, there is a manager (sales / store) who is in charge of business and may have done overseas market research

Target Person in the CompanyEmployee

- Manufacturin

g

Accountant CFOManager CEOEmployee

- Sales

• CFO is the next to talk to if we are injecting our capital / JVs

• CEO is the decision maker whom we shall talk directly, after manager / CFO

Decision Maker

Current Customers

Company Region Activity

Medical Device North America New Distributor Identification

Fashion Startup Hong Kong Sellectshop Introduction

Food Machinery Southeast Asia and

North AmericaCustomer Acquisition

Schedule of Key Activities

Jan Activities Feb

Mar

Apr

May

Jun Jul Aug

Sep

Oct

Nov

Dec

Counterpart/Partner

Year 2015

Narrow Down Focus Area/Industry through Research & InterviewsLearn Success/Failure Factors to Expand Abroad through Interviews

Successful Companies to Expand Abroad

Build up Relationship for Useful Local Information

Establish Company

Japanese & HK Government

Initial Fund Raising

Family Company & Friends

Gain Certificate

Hire Talents with Operational Experiences

Build up Sourcing Partnership

Regional Banks & Accounting Firms

Through Friends

Graduation from Columbia !

Education

Procean Columbia 2015