As a manager for Hitachi Solutions Startup Incubation Program, Tingchao Huang supports employees in launching businesses in Silicon Valley. He feels that his many opportunities to aid in launching brand new businesses overseas, all the while belonging to a single company, have been valuable experiences. We asked him about the challenges and joys of aiding others in launching businesses in the fiercely competitive US, how his mindset has changed as a result, and how his efforts contribute to society.

Partnering with employees in launching businesses

── You are involved in Hitachi Solutions Startup Incubation Program in Silicon Valley. Please tell us about your duties.

Under the Startup Incubation Program, employees work in teams of two to come up with ideas for how to solve social issues, with the goal of launching businesses in the US. Ideas are solicited in-house, and employees whose ideas are chosen spend one year preparing to launch the business in Silicon Valley. The program began in 2022, and since that time, four teams have been selected, in the fields of comfortable living spaces, construction site safety management, AI-assisted recruiting activities, and healthcare.

A lot of preparation goes into launching a business, from identifying issues through to interviewing potential clients, verifying business models, and pitching the idea to investors and venture capitalists. My job as project manager is to support these steps.

── You were originally in charge of IT system development, including the development of point systems and cashless payment systems for overseas markets. Is that right?

Yes, that’s right. At Hitachi Solutions, we interact with clients in a comprehensive manner, overseeing the full process from proposal development to after-sales services, so the idea of being able to gain such a broad range of experience, while remaining at a single company, was appealing.

Through engaging in various tasks, I discovered my interest in the process of defining requirements to visualize the client’s overall goal, and when I began to tell others about this, I was actually placed in charge of defining requirements for many other projects. I learned to define requirements effectively in environments with different business practices from those in Japan, and I am able to apply the experience I gained at that time in my current job.

── Specifically, what sort of support does the Startup Incubation Program provide?

Everything from planning market research interviews to introducing employees aiming to launch a business with appropriate people in Silicon Valley, and negotiating with venture capitalists to build cooperative relationships that will ensure the support needed. One of my roles is to leverage my experience to give advice about, for example, questions that venture capitalists have asked in the past and what sorts of things would be good to prepare.

I think that being able to partner up with employees who have come to the US to launch a business, all the while remaining a member of Hitachi Solutions, is something only possible in this position.

── When conducting interviews, there is also a language barrier to overcome, right?

Language is not the only difficulty. It is hard to think of exactly what to ask to get the information you want and to select the right people. Follow-up is also hard, including integrating their answers into your data, and applying it in verifying business models. I consider these matters together with each team preparing to launch a business.

Networking is also a vital element in being able to put employees into contact with the right people. As an example, Building connections with key individuals, such as employees at major companies or venture capital executives, requires a strong network. Outside of work in the evenings and on weekends, I attend startup gatherings and seminars hosted by tech companies and venture capitalists to gain insights and expand my network. In Silicon Valley, it is easy to build up a network as long as you are motivated. Sometimes, being a Hitachi Solutions employee makes people more willing to listen to me.

The Mindset of Give & Give

── What advantages do you think Hitachi Solutions has in the Startup Incubation Program?

First of all, we are engaged in quite a few business sectors. We handle a broad range of fields, including retail, manufacturing, finance-related point systems, smart cities, human resources, just to name a few. We have accumulated so much knowledge and so many technologies that there are bound to be synergies. In terms of startups in the US, there are many promising sectors. Having a global presence also draws interest and engagement from others.

Of course, another major advantage for Hitachi Solutions is our ability to provide funding and set up environments to facilitate the creation of startups in the US. I mentioned earlier that networking is important, and when necessary, you can ask an intermediary to introduce you to an interviewee or ask them to conduct some needed research. Only a large organization can facilitate the significant up-front investments required to compensate for deficiencies and bolster a business in this way.

── What aspect of the Startup Incubation Program do you feel is most difficult?

Selection for the Startup Incubation Program takes a problem-focused approach. Teams that have a good understanding of who is struggling with what are the ones that get selected. That is more important in the selection process than solutions. However, proving that an issue actually exists is a difficult task.

If you felt like it, you could continue to gather information forever. What sort of narrative do you want to build, and how much data and evidence do you need to collect in order to persuade investors? That’s the most difficult part of the decision-making process. Of course, the two members of the project are the ones who make the final decision, but as a partner, I always struggle with these issues. There is nothing to do but gain more experience.

── You have been involved in the Startup Incubation Program for two years now. Have you noticed any changes in your own work style?

My mindset toward business has changed dramatically. 

For example, in regard to the speed of business. Soon after I came to the US, I was once admonished by someone that I had asked to introduce me to an interviewee for not replying quickly enough. I received an email and said that I would reply before the end of the day, and I was firmly instructed, “No, reply within the hour!” In fact, business in Silicon Valley moves forward far faster than in Japan, and phases progress in single-day increments. I had to get used to that.

I also learned the spirit of “give & give.” You often hear the phrase “give & take,” but in Silicon Valley, instead of doing something to “take,” people remained focused on what value they can provide, and continue to advertise that. First and foremost, it is about contributing to others. I now see that as my first priority.

Work that can contribute to both Japan and the US

── What can the Startup Incubation Program “give” to society?

I feel that, since the purpose of the Startup Incubation Program itself is to solve social issues, it will be capable of contributing in that way in the US. Here in the US, while businesses have ample access to funding, the quality of life is not that high. That being the case, it feels like there are still many areas that have yet to be addressed and many issues waiting to be solved.

The program will also likely be able to contribute to the startup scene in Japan. It is a tough world, and not all projects will necessarily make it all the way to launch. However, the skills and mindset acquired through the process of actually preparing to launch a business in the unforgiving environment of Silicon Valley will prove useful even after returning to Japan. I believe that, when people return to Japan and make use of these experiences or convey them to other companies, the ripple effects will benefit Japanese society.

── Do you feel that you personally have grown in any way?

Once selected, team members come to the US to launch their business, and they have lots of questions. Now, being able to answer them like a mentor makes me feel that I am much different than I used to be.

Unlike developing a sales channel for an existing product, launching a completely new service in a foreign country is not something you get to experience many times in your life. Starting off without any prior experience, and trying to identify who is struggling with what and learning how to develop solutions is a valuable experience.

── Lastly, what challenges would you like to take on in the future?

I am in the US right now, but I would like to eventually contribute to Japan and my home country of Taiwan. People call the prolonged period of economic stagnation in Japan the “lost thirty years,” and I am aware that there are many issues. However, I still feel that Japanese people are very kind and that Japan is a great place to live. I hope to work in Japan or Taiwan and do something positive for society there.

I understand that startups and venture capitalists are on the rise in Japan right now, and in the future, I would love it if I could apply the expertise that I am gaining in Silicon Valley to trigger new businesses that solve the problems faced by clients in Japan as well.

Personal Perspectives

Together with a venture capitalist in Silicon Valley

I love musicals. Sometimes, I even fly all the way to New York to see them. I get deeply engaged in that way of looking at the world. I also like anime, and I watch My Hero Academia, Haikyu!!, and One Piece.

Recently, I have taken up playing pickleball. It’s a combination of tennis, ping-pong, and badminton. Players use flat paddles (rackets) to hit a ball with holes in it back and forth. It has been popular in Silicon Valley over the last several years. With many venture capital professionals participating, it has become an effective networking opportunity.