Session 3: "Network Society and Business Community"

Coordinator: Prof.Hanada(Keio University)

Hanada: Focus on business activity,the development of an information environment, to promote venture spirit, to utilize a new reformed network society in the business sector and researchers.

David BenDaniel (Cornell Univ.)

Topic on High performance ventures and high growth ventures.

Many universities have gone into a venture capital fund under the prudent man rule. 1 out of 5 ventures go through it, and go public.

In Japan, there is a need for a high growth venture. There are impediments to the HGV system in Japan. Especially 5 inpediments ( easy to hard)

A. OTC - In Japan, the over the counter market size is much larger.The exit stragegy in Japan is more difficult compared to the U.S.
B. Options - compensation mechanisms of individuality tax laws need rewriting grants and consultations under the New business act
C. Valuations - the word is not used in Japan, which is a problem, the evaluation of the company has no meaning in Japan, Japan is profit based. Japan needs to bet on the plan
D. University - The University should be a part of the venture.
E. Culture - Individual based, employment loyalty exists in Japan. Unlike the U.S, starting a business is different and unthinkable .
F. Corporate-sponsored spinoffs

Hideh Takahashi(NCR)

High growth venture capital in the Multi-media devision is difficilt for Japanese companies. There is very little contents of the media and mechanism,that went out to the world from Japan. Japan holds no global position in any of the catagories of contents, package and tool kits. This a problem because the production by automation and the network will raise the number of white coller workers.

In intellectual propertu related companies in Japan, ventures are very difficult due to the reason that theJapanese people like tangible things and distrust things that cannot be seen.

Japan should focus on the production where replication is difficult. Minimization and simplicity should become Japan's speciality

Tim Bray(Textuality)

Technology is well suited for the internet. Just because a system of venture capital exists, does not mean it is easy. The venture capitalist will want proof of your capitalization strategy

The Internet is, rich impatient people who like technology, has ultra low cost content delivery and ultra high speed interaction

Business problems lie iin the category of "trust", "technology", "cost", "marketing".

Advice for success - Market is stronger than technology and do not forget the old way of marketing "conventional marketing".

The kind of community it will make. A more market oriented, faster moving. If you are highly specialized on the Internet, you succeed, your market is the world.