The document discusses how technology evolution is rapid and disruptive. It notes that the average lifespan of companies on the S&P 500 has decreased significantly over the past 60 years. It then provides examples of how technology is disrupting various industries. The document argues that startups represent outsourced corporate R&D and that discounting emerging technologies and startups today could be perilous for companies. It also presents data on Japanese corporate investment in startups and emerging technologies like quantum computing.

2. www.cbinsights.com 2
IN THE LAST 15 YEARS, 52% OF FORTUNE
500 COMPANIES HAVE DISAPPEARED
1955
61 year lifespan in S&P 500
2015
17 year lifespan in S&P 500
vs

3. www.cbinsights.com 3
“I just think it is serving a different kind of need. It’s a different
business segment onto itself. And the segments that we are serving
largely, I think, will remain separate and distinct from that. I don’t
think customers suddenly woke up…and aid, ‘We really don’t care
about consistently high quality products, and we don’t need service
and we don’t need amenities.’ I just don’t buy it.”
– Chris Nassetta, CEO of Hilton on Airbnb
TECHNOLOGY IS EATING
EVERY INDUSTRY

4. 4
TECHNOLOGY
EVOLUTION IS QUICK
Phase 1
Mainframe
Phase 2
Mini computer
Phase 3
PC
Software
Phase 4
Internet
Web
Phase 5
Mobile
Apps
Phase 6
Connected Platforms
Hardware & Software

5. 5
JAPAN IS WELL-POSITIONED
FOR THE NEXT PHASE, IF…

6. www.cbinsights.com 6
PINPOING EMERGING
INDUSTRIES & TRENDS
IDENTIFY POTENTIAL
STARTUP DISRUPTERS
SEE EXISTING AND NEW
COMPETITOR MOVES
NEW BUSINESS MODELS
AND TECHNOLOGIES
IF THEY CAN RESPOND TO NEW
TRENDS AND THREATS QUICKLY

7. Anand Sanwal
CEO / Co-founder, CB Insights
Ran American Express $50M Chairman’sInnovation Fund
Prior work in venture capital and M&A
Author of “Optimizing Corporate Portfolio Management” (Wiley 2007)
Graduate of Wharton (Finance/Accounting) and University of
Pennsylvania (Chemical Engineering)
@asanwal
ABOUT ME
asanwal@cbinsights.com

8. Technology market intelligence
for data-driven executives.
CB Insights software lets you predict, discuss and
communicate emerging technology trends using data
in ways that are beyond human cognition.
www.cbinsights.com 8

9. FINDING
SIGNAL
www.cbinsights.com 9
Without data, you’re just
another person with an opinion.
OLD SCHOOL
(limited by human cognition)
Google searches
Gut instinct
Guyswith MBAs
(pundits aka consultants, analysts)
NEW SCHOOL
(beyond human cognition)
Machine learning
Naturallanguageprocessing
Topic modeling
Probability driven models
Signals discerned from millions of sources including:
• Venturecapital / angel investments
• Startup data
• Patents
• Government grants
• News media
• Social media

10. See what other customers have to say at http://www.cbinsights.com/customer-love
“We use CB Insights to find emerging trends
and interesting companies that might signal
a shift in technology or require us to
reallocate resources.”
TRUSTED BY WORLD’S
LEADING COMPANIES
Beti Cung
Corporate Strategy, Microsoft

11. www.cbinsights.com 11
62
9 16
211
490
1200
1400
2010 2011 2012 2013 2014 2015 2016 (YTD)
From the NY Times to Bloomberg, CB Insights data is used by hundreds of
leading media outlets every week
“ACCORDING TO CB INSIGHTS…”
CB INSIGHTS MEDIA CITATIONS PER YEAR

12. In 2016, Japan’s corporations invested:
$3.1 BILLION
across
125 DEALS,
to VC backed companies.
www.cbinsights.com 12www.cbinsights.com

13. MORE THAN 60% OF DEALS INVOLVE CORPORATES
www.cbinsights.com 13www.cbinsights.com
62% 61% 66% 68% 68%
38% 39%
34% 32% 32%
2012 2013 2014 2015 H1 2016
DEALS TO VC-BACKED COMPANIES WITH VS WITHOUT CORPORATE
PARTICIPATION IN JAPAN 2012 - H1 2016
Deals to VC-backed Companies with Corporate Participation Deals w/o Corporate Participation

14. JAPANESE CORPORATIONS ARE PRETTY ACTIVE
www.cbinsights.com 14www.cbinsights.com
$852
$1,005 $3,368 $5,875 $3,124
84
117
189
169
125
2012 2013 2014 2015 2016 YTD (9/27/16)
JAPANESE CORPORATE DEALS AND DOLLARS TO
VC BACKED COMPANIES GLOBALLY
2012 - 2016 YTD (9/27/16)
Disclosed Funding ($M) Deals
$4,028
(Full-Year Projection)
168
(Full-Year Projection)
LESS ACTIVE THAN US OR CHINESE PEERS, HOWEVER

15. MITSUI & CO. IS THE MOST ACTIVE
JAPANESE CORPORATE INVESTOR
www.cbinsights.com 15
MOST ACTIVE JAPANESE CORPORATES BY DEAL COUNT 2012-2016 YTD (9/26/2016)
RANK INVESTOR
1
2
3
4
5
RANK INVESTOR
6
7
8
9
10
RANK INVESTOR
11
12
13
14
14

16. MOST ACTIVE CORPORATE INVESTORS
IN JAPAN RANKED BY DEAL COUNT
2012 – 2016 YTD (9/27/2016)
www.cbinsights.com 16
Rank Investor Select Investments Made Between 2015 -­2016 YTD (9/27/2016)
1
2
3
4
5

17. BUSINESS SOCIAL GRAPH OF JAPANESE CORPORATE
INVESTMENTS IN THE LAST 12 MONTHS
www.cbinsights.com 17

18. ACTIVITY PICKING UP IN SPECULATIVE AREAS LIKE
QUANTUM COMPUTING
www.cbinsights.com 18
Corporation Engagement Quantum Computing Activity
R&D/ Product
Development
MitsubishiElectric is developing proprietary quantum cryptography
equipment to secure mobile communications.
R&D/
Partnership
NEC and Fujitsu partner to offer customers quantum-encrypted
communications over long distances.
R&D/ Product
Development
Nippon Telegraph and Telephone Corporation is developing quantum-
based computer chips that rely on photons– particles of light -- to
process information.
R&D/ Product
Development
Toshiba’s prototype quantumkey distribution system delivers digitalkeys
for cryptographicapplications on fiber-optic-based computer networks.
Toshiba maintains one of the largest quantum IPportfolios in the world.

19. www.cbinsights.com 19
Source: Clay ChristensenDisruptive Innovation Framework
TODAY’S EXPERIMENTS BECOME
TOMORROW’S PROBLEMS.

20. www.cbinsights.com 20
Source: Clay ChristensenDisruptive Innovation Framework
DISRUPTIVE INNOVATION
COMES FAST & FURIOUS

21. #FutureFintech www.cbinsights.com 21
STARTUPS EQUAL
OUTSOURCED R&D
IN THE LAST 5 YEARS, MORE THAN 38,135 EARLY-STAGE
FINANCINGS TOTHESE EXPERIMENTS

22. www.cbinsights.com 22
Source: Clay ChristensenDisruptive Innovation Framework
DISCOUNT THEM TODAY. AT YOUR PERIL.

23. THESE EXPERIMENTS ARE MULTIPLYING
www.cbinsights.com 23
Cost to Launch a Tech Startup
Source: Upfront Ventures

24. Get the complete 59-page report
Get access to the full report to understand how
Japanese corporations can win the next tech
revolution and avoid disruption.
Get the PDF
If you're on mobile, use this URL:
cbi.vc/japan-tech