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September 30.2025
2 Minutes Read

From Silicon Valley to Tokyo: Launching an AI Startup in Japan

Man in Japan's busy street, neon lights, signifies AI startup vibrancy.

Leaving Silicon Valley for Tokyo: A Fresh Start in AI

Eric Fung, once immersed in the fast-paced world of Silicon Valley startups, sought a transformative shift in his life and career. Disillusioned by the intense competition and exorbitant cost of living in the Bay Area, he made the bold decision to relocate to Tokyo and establish his new AI company, Colega AI. Fung's journey reflects a broader trend where entrepreneurs are searching for more accommodating environments to grow their startups.

The Appeal of Japan's Business Landscape

Japan boasts a unique business fabric, characterized by a significant number of small enterprises thriving alongside multinational giants. Interestingly, small businesses dominate the market, fostering a nurturing ecosystem for innovative ideas, especially in the AI sector. In 2025, it is noteworthy that Japan has streamlined the processes for foreign entrepreneurs, significantly lowering barriers to entry. With an emphasis on technology and a supportive infrastructure, it is an opportune moment for innovation.

Cultural Adjustments and Opportunities

Despite language and cultural barriers, Fung is adapting to Tokyo life, finding that Japan's work ethic and collaborative spirit align well with his entrepreneurial ambitions. The infusion of generational creativity is evident in the local tech scene, echoing trends discussed by industry experts at conferences like those held at Globis University. As AI matures, Japan's legacy of industrial prowess positions the nation as a compelling backdrop for tech-driven solutions.

Future Directions and Strategic Insights

Fung's transition from the United States to Japan symbolizes the shifting paradigms within the global startup ecosystem. As he focuses on building AI marketing solutions for small businesses, it encapsulates a pressing need within Japan—a market ripe for digital transformation. Observations suggest that AI startups will increasingly seek to harness the advantages of localization. As AI tools quicken development cycles, understanding regional user behavior becomes paramount.

Building a Resilient AI Startup

To thrive in the competitive AI landscape, startups need to focus on sustainable growth strategies. An emphasis on securing early paying customers and feedback loops can create a robust foundation for future expansion. As Fung’s team at Colega AI leverages diverse expertise across Asia, the importance of a globally informed yet locally focused approach cannot be overstated.

Conclusion: Embracing Innovation Across Borders

Fung's journey underscores a vital narrative—successful entrepreneurship often transcends borders. With Japan emerging as an enticing frontier for foreign innovators, the blend of local culture, technological advancement, and entrepreneurial spirit presents a fertile ground for sustainable growth in AI and beyond.

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10.02.2025

Navigating the IRS Transition Away from Paper Checks: Protecting Vulnerable Taxpayers

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