Japanese VC Who Moved to India (Bengaluru), With Family

Three points you will get to know in this article:

1. In 2023, Shun Sagara relocated from Tokyo to Bengaluru to broaden the reach of his Japanese VC firm.
2. Sagara’s goal is to invest in Indian startups that show promise for global leadership and collaboration.
3. He mentioned that he and his wife enjoy raising children in India due to the hospitality.

From Tokyo to Bengaluru: The Journey of Shun Sagara

I was raised in Japan and started my professional journey at a Tokyo-based enterprise software firm.  Before leaving the company in 2018, I held different sales positions there for five years.  The next year, I became part of Genesia Ventures, my current venture capital firm, taking on the role of investment manager.

During my second year at the firm, we seriously considered expanding internationally.  We were established in Southeast Asia, and it was increasingly agreed that India was our next logical destination.  It matched my aspiration to operate in a rapidly changing market, and I was eager to advance.

My relocation to India wasn’t motivated by an obsession with curry, Bollywood, or anything of that sort.  India and Japan have always seemed to me to shine on the sidelines, without claiming the center stage as China or the US do.  

Investing in Indian Startups: A Vision for Global Collaboration

The moment that triggered it for me was when a Japanese founder said I was the only VC out of 20 to 30 meetings she had taken who genuinely understood enterprise businesses.  While it was a compliment, it also raised concerns: if I had no rivals nearby, perhaps I was competing at the wrong level.  For me, relocating to India—where startups are not only developing products but also creating the infrastructure of an emerging economic power—seemed like the next logical move.

It wasn’t easy to decide to move with the family.  My wife had previously been exposed to New Delhi, the capital, as she worked as a flight attendant for Japanese Airlines.  She was not fond of the air quality, the spicy cuisine, and the lack of safety for young single women.  I needed to persuade her that Bengaluru was not the same as Delhi.  After she got on board, we relocated to Bengaluru in the summer of 2023 so I could establish an Indian subsidiary for my VC firm.

As the sole employee of the company in this country, my responsibility is to facilitate investments in India for our fund based in Japan.  The size of our average initial check is approximately $500,000, and we supplement it with investments ranging from $1 million to $1.5 million.

My investment thesis relies on these three qualities instead of specific sectors: founders who have a strong understanding of the Indian context;  fields like pharmaceuticals or precision manufacturing in which Indian firms have the potential to emerge as global market leaders;  and fields where India and Japan can work together, such as issues related to elder care or workforce shortages.  I have made investments in five companies since we opened our office in India.

Cultural Contrasts: Business and Lifestyle Differences Between Japan and India

There are big differences in how business is done.  To illustrate, Japanese culture revolves around risk mitigation, in contrast to the Indian startup ecosystem.  Our startup pitch decks in Japan consist of 40-50 slides and cover every possible objection a VC might raise.  In India, entrepreneurs enter meetings with a napkin sketch and rock-solid confidence.  From my experience, both approaches are effective.

Another major distinction is the “jugaad” mentality in India, which focuses on improvisation with available resources, as opposed to the Japanese concept of “kaizen,” which emphasizes ongoing optimization of current processes.  I have discovered that fusing these perspectives in India-Japan transactions can yield remarkable outcomes.

As someone from Japan, where cleanliness is paramount, I find that one of the greatest differences about living in India is the lack of it. This has also proven to be a challenge for my wife and children.

Life in Bengaluru: Raising a Family and Building Connections

However, regarding child-rearing, India—especially Bengaluru—is among the top cities globally.  Individuals display warmth and kindness toward outsiders, with a majority having a fondness for children.  The locals treat my two little kids — a daughter aged five and a son aged three — well.  The city also boasts excellent international schools, and my wife and I have found raising children to be a wonderful experience.

The most surprising thing for me was the widespread popularity of sports at the grassroots level.  While I had always known that cricket was beloved in India, I was astonished to witness the growing popularity of soccer there.  After two years of living here, I play weekly soccer with five friends.  Though I know many Japanese expats and other foreigners, 90% of my social circle consists of local Indians.

The colleagues I collaborate with are open-minded and cooperative, and they have consistently offered assistance when I face daily operational challenges.

I am committed to a long-term stay in India and do not intend to return to Japan for at least the next five years.  Even after moving back home after a decade, I wish to maintain my exposure to India and Indian businesses.  My life’s work and ambition has been to connect India and Japan.

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