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Venture Ecosystem: A Platform for Growth and Sustainability

  • Media
2024.11.26

At D-POPS GROUP, we understand a “Venture Ecosystem” to be a dynamic platform that enhances the growth and sustainability of a community of enterprises. United by a shared identity and philosophy, these companies continuously innovate to address critical social challenges through groundbreaking business models. We are committed to making this ideal a reality through daily strategic efforts and unwavering dedication.

Below is an expanded explanation of a Venture Ecosystem.

1. What is a “Venture Company”?

In Japan, startup companies—whether in the early stages of seed financing or the late stages of major corporate development—are also known as venture companies. Kotobank, a Japanese online dictionary, contains the following definition:

During times of transition in industrial structures, the leading role of industry changes, new businesses that did not exist before are born in cutting-edge fields, and new markets are created. Companies that rapidly invent unique technologies and products according to the needs of such times are called “venture companies”.

To put it a little more broadly, if a culture of challenge permeates a company from the top executives to the employees, and if that company is tackling new areas with unique ideas and business models, it can be called a venture company. In addition, an enterprise that did not start up recently but continues to challenge itself with ever bolder undertakings can also be considered a venture company, no matter how large it may be. In this sense, any Japanese company can be called a venture company as long as it has the spirit of a startup.

With this viewpoint, we consider the consumer-to-consumer online marketplace Mercari (which has released new services one after another according to their value statement, “Go Bold”) and Rakuten Group (which launched Rakuten Mobile with completely new base station technology even after it had achieved significant growth) to be exemplary Japanese venture companies.

Internationally, companies like Alphabet and Meta are still brimming with venture spirit, as well.

2. What is senmitsu?

In the real estate industry, it is said that only about three out of every thousand negotiations will successfully close a deal, and this concept is expressed in the Japanese business term senmitsu (literally translated, ‘thousand-three’). In the food industry, it is said that only three products out of a thousand will become an enduring staple in the marketplace, so the term senmitsu is used there, as well.

In the venture capital (VC) industry, the data from a case study on funding reveals that out of a thousand companies interviewed, 3% of those are considered for investment, one-third of that 3% actually receive funding, and then only 30% of those ventures successfully exit. Therefore, (1000) ✕ (0.03) ✕ (⅓) ✕ (0.3) = 0.3% = 3 out of 1000…in other words, senmitsu.

Thus, the probability of success for a venture company is extremely low.

However, the probability of success can be increased, depending on the following factors:

(1) Continuing to strive with greater effort than anyone.
(2) Learning from and helping other colleagues in the same situation.
(3) Consulting and receiving support from senior managers and mentors.
(4) Learning from both successes and failures in starting new businesses.

3. What is an Ecosystem?

In ecology, the term “ecosystem” refers to a community of organisms and the environment that surrounds them as a somewhat closed system. When the organisms that exist in a certain area and the nonliving environment that surrounds them are considered together as one system that is closed to some extent, this is called an ecosystem. (Source: Wikipedia.org)

If we transpose this to the business world, we can say that it is a group of companies with a certain common identity and philosophy, regardless of whether or not they are physically gathered in a certain area.

Imagine a forest, which is composed of a variety of plants, the insects and small animals that carry those plants’ seeds, and the larger animals that prey on them. The forest is perpetuated and grows through the mutual interdependence of these animals and plants, which eventually decay and turn to soil, providing nutrition for future generations in an unending cycle.

Now, replace this metaphorical forest with a group of actual companies. When a community grows and sustains while mutually influencing other members, that is what we call a business ecosystem.

Now, what are the specifics of a business ecosystem?

4. Collaboration

Companies in an ecosystem are not enemies or competitors who are constantly at each other’s throats. Rather, they are colleagues who have a good relationship and positively influence each other. As such, there will be a natural tendency for them to initiate the following cooperative measures.

(1) Pioneering customers

Introducing each other to new corporate and consumer customers, and jointly cultivating new markets to increase the number of fresh clients. (This means more than simply providing work for each other.)

(2) Industrial cooperation

Supporting sales efforts by leveraging the existing sales channels of one company to introduce new products or services from another. Such business partnerships are not marked by mutual distrust, but rather by discussions conducted in good faith and contracts based on consistent, reasonable terms.

(3) Personnel exchange

Companies within the ecosystem will exchange information as well as executives, engineers, marketers, and others in the same position and job category with other companies to stimulate each other. This includes everything from short-term secondments and temporary relocations to personnel transfers.

(4) Generating new business

This collaboration and personnel exchange among companies will act as the impetus for inspiring ideas to improve efficiency and create new businesses, products, and services. This not only increases profitability, but also sows the seeds for future growth.

5. Mutual Learning and Support

Corporate management is not always smooth sailing. Competitive conditions and rapid changes in the marketplace often put companies in very difficult situations. To successfully navigate through these stormy seas, they need to learn from and help each other.

(1) Study groups

In fields where expertise is required, affiliated companies hold study sessions. These are taught by knowledgeable individuals from within the ecosystem or by guest lecturers. Social events are also held on a regular or irregular basis, and great ideas can come out of these, as well.

(2) Lending and transfers

When there is a temporary shortage of personnel at Company A, such as during the launch of new routes or systems, personnel from Company B—which has sufficient staff at the time—are sent to Company A to help them. In return, when Company B is in the same situation, Company A sends personnel to aid them, too.

(3) Joint recruiting activities

Joint information sessions allow the recruitment of many talented individuals to their optimal positions among the many companies within the ecosystem. However, these activities can only be successful if the identities and fundamentals of every member are aligned, since that will attract candidates who resonate with those shared principles.

6. Ecosystem Renewal

The ecosystem is not just a collection of companies that are all the same size and in the same industry. Rather, it includes diversity and a wide range of development, from startups that have just begun to senior entrepreneurs who have a long track record but continue to take on new challenges. As mentioned above, corporate management is not always smooth sailing. Indeed, there are times when companies have to close their businesses.

Therefore, the idea of constant renewal is a crucial feature of the ecosystem.

(1) Startup businesses

The most important role in the ecosystem is played by startup companies that create new businesses. They exemplify the seeds of a forest or the eggs of a nest. Internal entrepreneurship and the budding of independent off-shoot companies is encouraged, and parent companies invite them to continue a business relationship. Equally as important, when the community encounters outstanding startup companies that share its philosophy, it invests in them and welcomes them to join the ecosystem and establish capital ties with the other members.

(2) Mentors

Within the ecosystem, a group of advisors and mentors with a wealth of knowledge and experience is absolutely essential. In our forest analogy, they stand as giant, centuries-old trees that store abundant nutrients and provide water. They introduce prospective clients from their network of contacts built up over time; they happily allow junior leaders to bounce ideas off of them for planning business strategies; and they provide training for the executives and managers of each company in the ecosystem regarding organizational theory and how to cultivate a healthy working culture.

If an entrepreneur has a mentor or senior manager who can be consulted at any time, he or she will have exponentially more success than one who works alone without anyone to consult.

(3) Role of alumni

As companies grow through friendly competition and mutual learning and support, it is only natural that some leaders will successfully exit through going public or through strategic acquisitions.

When these “alumni” (former leaders in the community) leave to pursue other opportunities, they may or may not choose to return to their original company in the future. Either way, because they are still united in philosophy and principles, they do not cease to be a part of the ecosystem. Rather, alumni remain involved in the community as lecturers in study sessions, as interim managers to help restructure companies that are struggling, and in other roles as they are invited.

(4) Rebirth and revival

Suppose there is a company that unfortunately cannot avoid liquidation. However, among the employees of this company, there are many talented people who would be valuable anywhere. Perhaps the leader of this company was not well-suited for management, but was an incredibly capable lead engineer.

If these skilled employees are able to change roles and transfer to other companies in the ecosystem, they could very well make tremendous contributions there. Providing a platform for people in the ecosystem to continue to shine as brightly as possible by starting again, or opportunities for recovery—this is what truly characterizes an ecosystem.

7. What is a Venture Ecosystem?

To synthesize all of the various aspects mentioned above, a Venture Ecosystem has the following defining features:

(1) Consisting of companies with an indomitable, entrepreneurial spirit

(2) Members that learn from and help each other

(3) Personnel united under a common philosophy and culture

(4) Growth and renewal on an individual basis, leading to continuous growth as a whole

(5) Birthing new startups from within, and expanding through acquisitions

(6) The entire community standing together, with a united front, to face changes in the environment

(7) A platform that supports the growth of the community

More comprehensively, a Venture Ecosystem can be described as: “A platform for growth and sustainability that supports a community of enterprises that are united by a common identity and philosophy and continue to take on the challenge of solving social issues through highly innovative business models.”

D-POPS GROUP and the companies participating in its Ecosystem will continue to learn from and support each other, striving daily to become a platform that is indispensable to society.

We hope this article helps you to understand the meaning of “Venture Ecosystem” in D-POPS GROUP’s long-term vision of developing a Venture Ecosystem that is essential to society.

D-POPS GROUP Advisor
Genta Sugihara

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We explained that cross-selling is a method that yields immense results not only for gross profit but also for operating profit, without requiring additional expenses or time. By maximizing the sales of products and services related to the customer’s intended purchase, a company can maximize both gross and operating profit, creating a significant competitive advantage over rivals. I have intentionally addressed cross-selling following our previous discussions on “Inventory Turnover”, “Sales per Employee”, and “Sales per Tsubo”, which focused on cash flow and expenses related to inventory, labor, and rent. If you read these in order, starting with the first article on “Inventory Turnover”, the essential points of business management will become much clearer. For those who have not yet read them, I highly encourage you to do so. What we at D-POPS GROUP want to convey through this discussion on cross-selling is the same message as before: business is built by people. The customers who purchase products are people, the sales staff who sell the products are people, and those who utilize technology are all people. While I think it is impossible to win in competition and survive in business without commanding technologies like AI, I also think that technology alone is not enough to survive. At D-POPS GROUP, we believe that business success does not happen simply because the technology is good or the management strategy is sound; rather, the intersection of People × Technology × Management Strategies is what truly matters. In accordance with this line of thinking, D-POPS GROUP’s vision is “realizing a Venture Ecosystem”. Our goal is to support startups through investment to help people shine and solve social issues, providing value that goes beyond mere numbers and efficiency. We hope that you enjoyed this article and look forward to working with you in the future. D-POPS GROUP Managing Executive Officer Tetsuya Watanabe
  • Media
2026.02.12
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He was calling to announce that he had received an informal contract agreement from a market-leading company. Just a few months ago, negotiations had seemed to stall, and he had sounded frustrated, but now, his voice carried a clear sense of achievement. After congratulating him, I told him that this was not merely a product of luck, but the result of changing his attitude toward sales and thus taking a major step forward for his future activities. Looking back on this negotiation, he realized that his past failure had resulted from pressing for an early contract immediately after a free trial and attempting to move forward according to his own company’s convenient timing rather than making sure to fully resolve the client’s concerns. This time, he revised his approach. He did not rush the decision to commit to his company’s product. Instead, he worked with the counterparty to organize the points they needed to consider and prepared adequately for the next meeting, naturally bridging the way to the next dialogue. As a result, the negotiations moved forward steadily, leading to this successful step. The noteworthy point is that he did not use any special closing techniques. Instead, he consciously refrained from the forward-leaning posture of trying to oversell. Four months ago, I introduced him to a potential client and sat in on the meeting. I had concerns about his behavior during that session, and after it ended, I gave him some stern advice: “The most important thing in sales is not to get the contract at all costs, but to avoid ruining relationships.” What his negotiation style lacked was a listening stance. This does not simply mean staying silent while the other party speaks. It is a stance of advancing a dialogue while reading subtle reactions: ・Where is the person choosing their words carefully? ・Are there any unspoken implications? ・Did they tilt their head slightly in doubt? Many sales representatives focus on pushing the negotiation toward a contract. However, their essential role should actually be to maintain an environment where the other party feels comfortable to continue their consideration. When pressured to decide, people either stop thinking or show a strong rejection, and they will quietly withdraw from you. Negotiations that end with “We’ll take this back and think about it” generally end in failure. Therefore, you should not try to immediately stamp out their questions. Instead, while keeping yourself organized regarding what should come next and allowing sufficient space to address their doubts, you must seek to continue the dialogue with the other person’s goals in mind. It is widely said that a capable sales person has abundant knowledge and can respond instantly with the right answers. However, the kind of person who earns trust from customers is the one with a sincere attitude: someone who does not interrupt, provides pauses for consideration, admits uncertainties, and promises to look into them before the next meeting. After that failed negotiation, the CEO’s way of interacting with customers clearly changed. What he then gained months later was not just a contract, but the realization that he could truly listen, the success of moving forward without rushing, and a sales sense that he could expect to produce repeated success in the future. A listening stance is precisely what enables the decision not to sell at the moment. If you’re an entrepreneur who feels challenged by sales, you need to ask yourself the following question. “Am I truly trying to listen to the other person, or am I just trying to make the other person listen to me?” The moment you understand that distinction, the quality of your sales will undoubtedly begin to change. 2. Questioning Ability Found in Locating the Root of the Issue What makes the difference in sales outcomes is not how well you can speak. When I served in business development and B2B sales for many years, I always set one goal: get the other party to verbalize their business’s problems. Simply put, it is the killer question: “What business  challenges is your company facing now?” Asking a CEO about management challenges, or a marketing head about brand strategy challenges, or an HR head about talent development, or an IT head about internal systems. Reaching the point where I could ask this question was always my goal, particularly for our first meeting. Obviously, if you ask about a company’s issues abruptly in your first meeting with someone, you are not going to receive an answer. First, you have to build up trust, create an atmosphere where they feel safe to talk, and eventually lead to this question within the natural flow of dialogue. Once that relationship is built and the right question is asked at the right time, the moment the other party verbalizes their problem, the essence of the discussion shifts from one-sided selling to collaborative and constructive dialogue. Your own company’s products or services then naturally enter the conversation as a candidate for the solution. Most unsuccessful sales attempts begin with an explanation before hearing the problem. They follow a set pattern: introducing your company and then yourself; describing the product and its market advantages; case studies within the same industry; related costs or durations; then, concluding with something like, “So, our product ought to be useful for your company.” However, at that point, the client will begin to evaluate what you said. Is this really necessary now? Is this salesperson exaggerating? Could there be an error in this data? In the worst case, that mindset then switches to finding a reason to refuse. Management and business both have goals; there is no reason to implement a product unrelated to those goals. This is why the first thing a salesperson should do is understand the other party’s goals and challenges. Furthermore, in reality, you may not always meet the final decision-maker in the first meeting. In that case, ask the company representatives about their operational goals or the challenges in achieving them. Even if they cannot speak for the overall management strategy, they can talk about their own job-related pains. Then, you can think together about solving those problems and search for where your company’s value proposition could belong. Soon enough, these exchanges will lead up to a dialogue with the decision-maker. If you’re still at the stage where the other party hasn’t shared their issues, then it’s meaningless to present a feature list or a price table. You should only begin discussing specific service details after the client has fully understood which of their problems your solution addresses and to what extent. Simply by getting this sequence right, you can drastically change the way that business negotiations progress. By narrowing your explanation down to only the features that the client is interested in, you can reduce your presentation time and allocate the remaining time to constructive, collaborative consideration. Also, effective case studies are not always limited to the same industry; there is no small number of cases when examples from other industries that solved similar problems resonated even more strongly. Ultimately, everything comes back to a proper listening stance. If you enter the mindset of putting yourself in other people’s shoes and listening seriously to what they have to say, the right questions will arise naturally. This is precisely why good listeners are preferred over good talkers in sales. 3. The Courage to Say ‘No’ and the Courage to Withdraw Many believe the ideal B2B salesperson is one who can win every single deal. In reality, that is not necessarily the mark of an excellent salesperson. A salesperson who protects the company and its systems in the long term is one who can identify deals that should not be taken and has the judgment to refuse if necessary. In the sales field, there will be moments when you say to yourself, “I want this deal, but I feel I shouldn’t close it for strategic reasons.” Customers who take excessive customization for granted; those who insistently make one-sided demands; those with a widespread corporate culture of arrogance; supervisors who chase price without understanding value: making deals with clients like these tends to increase indirect costs and mental exhaustion resulting from the necessary development, support, and management. Eventually, the contract becomes a burden on the company. Sales requires patience, but it’s not necessary to carry all of the stress yourself. Unreasonable demands; business discussions that are at an impasse; attending to completely disrespectful people; or negotiations intended solely for price comparison: if you choose to force these impossible deals through, it will lead to a loss for your entire organization. Halting an unhealthy deal before it gets any further is also a sales skill. “Since this does not align with our company’s policies, we will have to decline.” Such a statement is not rude or hostile; it is an expression of sincerity that shows your boundaries. In the long run, a company that clearly shows what it can and cannot do will earn more trust than one that accepts anything. Making the decision to withdraw is also the duty of a leader. I once made a management decision, in agreement with headquarters executives, to intentionally drop out of a large project where price competition had overheated and no profit could be expected. This was not admitting defeat, but a business judgment to withdraw from a fight where we would suffer heavy losses even if we won in the end. This concept is not limited to new prospective clients; there are also existing customers from whose partnership you should withdraw. Clients who take up too much time with low profitability; clients who make no effort to implement agreed-upon terms; clients who lack the will to revive their failing businesses; those who always start from a place of negativity: holding onto these relationships just because “the customer is king” is a choice that erodes the company’s future. A decision not to renew a contract can also be necessary for healthy management. Interestingly, companies that have the courage to say ‘no’ will ultimately attract better customers. Relationships with clients who align with your corporate culture, maintain mutual respect, understand your worth, and continue making efforts to grow become trust-based partnerships that go beyond mere business transactions. Rather than your prices, these customers choose you based on your merit, and become long-term fans. While sales is a job that involves being chosen, it’s a job that involves choosing your associates. Far from being cruel or heartless, the courage to say ‘no’ or to withdraw enables responsible decisions that protect the company, its employees, and its future. Concentrating resources on the relationships that are truly valuable is precisely what generates the next stage of growth. Is that not the very essence of “management-minded sales”? Conclusion: Sales Skills are Part of Management Skills In this article, we introduced three skills: A listening stance and the courage not to sell Questioning ability found in locating the root of the issue The courage to say ‘no’ and the courage to withdraw None of these are merely sales techniques. They represent a management mindset that allows both executives and sales leaders to correctly allocate limited management resources while earnestly facing the market. No matter how great your product is, it will not reach the market without a discussion plan that is equally great. Standing on the forefront of business growth, sales is a necessary part of business management itself. D-POPS GROUP has the vision of “realizing a Venture Ecosystem”※. To this end, we are committed to building systems that allow the members of our Ecosystem to grow sustainably and providing hands-on support through our team of advisors. ※Read “Venture Ecosystem: A Platform for Growth and Sustainability” for more details. We will continue to offer our support so that the companies within our Ecosystem can put this “Management-Minded Sales” into practice. I hope that this article will serve as a practical aid to startup founders and executives alike. D-POPS GROUP Advisor Genta Sugihara
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2026.02.05
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