## Kyoto's Startup Scene: A Fusion of Old and New

Foreign entrepreneurs are making waves in Kyoto, **blending centuries-old traditions with cutting-edge technology**. This movement comes as Japan actively seeks to **attract international talent** to invigorate its startup ecosystem.

![Kyoto Startup Scene](https://www.ft.com/__origami/service/image/v2/images/raw/https%3A%2F%2Fcms-image-bucket-production-ap-northeast-1-a7d2.s3.ap-northeast-1.amazonaws.com%2Fimages%2F0%2F6%2F6%2F2%2F49892660-3-eng-GB%2FCropped-1753426909photo_SXM2022101100010071.jpg?width=780&fit=cover&gravity=faces&dpr=2&quality=medium&source=nar-cms&format=auto)

*Number of funded startups in Kyoto nearly doubled to 79 last year from 44 in 2014, according to a report by Initial Inc., a Japanese startup information platform. (Photo by Toshiki Sasazu)*

This **nascent trend** is not just about innovation; it's a blueprint for **how traditional industries can rediscover their relevance** in the modern world through technology. From artisanal crafts to hospitality, startups in Kyoto are demonstrating that the past and future can coexist harmoniously.

TOKYO -- Foreign entrepreneurs are blending tradition and technology in Kyoto, as Japan seeks to attract international talent and boost its startup ec

Kyoto's Startup Renaissance: How Foreign Entrepreneurs Are Merging Tradition with Tech

**Startup founders in 2025 face a capital market that's both abundant and restrictive**, according to Cathy Gao, a partner at Sapphire Ventures. Speaking at TechCrunch’s All Stage conference, Gao highlighted the paradox: **capital isn’t scarce, but access to it is harder than ever**. For founders eyeing a Series C round, the journey begins with a stark reality check.

### The High Bar for Series C
Only **one in five startups that raise a Series A ever make it to Series C**, and the criteria have only gotten stricter. Investors are no longer just chasing growth; they're chasing **certainty and undeniable upside**. "The question isn’t just 'is this company growing?' but 'is it on a trajectory to become a market leader?'" Gao emphasized.

### What Investors Look For
- **Category Leadership**: Companies must define their categories with clear go-to-market strategies and undeniable market pull.
- **Sustainable Growth**: In the age of AI, rapid growth is common, but sustainability is key. Investors seek "compounding loops" where the company strengthens as it scales.
- **Beyond Metrics**: While metrics are important, **investors need to believe in the company's potential to lead its space**.

### Building Relationships Early
Gao advises founders to **treat fundraising like a go-to-market campaign**, building relationships with VCs well before the pitch. Sapphire Ventures, for example, prefers to invest at Series B but starts engaging with companies at Series A.

### Practical Tips for Founders
- **Create an Investor CRM**: Track interactions, preferences, and recent investments of potential backers.
- **Timing is Crucial**: Don’t start fundraising until multiple firms signal interest. "It’s about timing and planning ahead, not luck," Gao noted.

This strategic approach can help founders navigate the complex Series C landscape and secure the funding they need to scale.

And it starts with a reality check, according to Sapphire Ventures partner Cathy Gao.

Navigating the Series C Maze: Essential Strategies for Startup Founders in 2025

**Startup founders face a perplexing and even contradictory capital market in 2025**, according to Sapphire Ventures partner Cathy Gao. "Capital isn’t scarce. But access to that capital is harder than ever," she said.

Gao, who spoke at TechCrunch’s All Stage conference in July, shared insights on how startup founders, especially those in the later Series C stage, can navigate this challenging economic environment. **The key? Starting with a reality check.**

### The High Bar for Series C Funding
Only one in five startups that raise a Series A ever make it to raise a Series C. And, in the past year, the bar for raising late-stage capital has only risen. Investors are no longer just chasing momentum—they are chasing **certainty**.

"Investors are now asking: 'Is this company truly a winner in whatever market that they’re serving?'" Gao said. "The question really isn’t, 'is this company growing?' The question has shifted to, 'is this company on a trajectory where the upside is really undeniable?'"

### What Investors Look For in Series C Startups
Companies raising Series C rounds should meet certain criteria. For one, **they’re all category leaders**, according to Gao.

"They’re defining their categories. They have clear go-to-market and undeniable pull," she said. "In short, they’re growing efficiently, but there’s also traction to show that these are truly the market leaders in the spaces that they operate in."

### Metrics Aren't Everything
Companies looking to raise a Series C should also remember that **metrics do not always equal money**. Sure, metrics are important, as are annual returns, growth, and retention, she said, but if investors are not sold on the idea that a company can truly become a leader in their respective space, then they are going to move on.

"Investors have to explain why a company will win in the future," she continued. For example, there are companies that don’t have amazing metrics yet somehow raise a suitable Series C round. In one case, a startup nabbed more than a $2 billion valuation, she noted. "They were effectively able to communicate the story to investors why this company will be a leading company over time," Gao said of the company’s successful raise.

### Continuity Over Short-Term Virality
Another Gao rule: **continuity is better than short-term virality**.

In the age of AI, companies are growing faster than investors have ever seen before, she noted. "But oftentimes it’s the case, what goes up also sharply comes down," Gao said. "So the question is, 'is this growth sustainable?'"

In a Series C, investors are looking for **compounding loops**, or seeing that the company gets stronger as it scales, she said.

Series C Funding Secrets: How to Convince Investors You're a Market Leader

**CRV**, a veteran in the venture capital space, has successfully raised **$750 million** for its twentieth flagship fund, marking a significant milestone for the 55-year-old firm. This new fund is notably smaller than its previous **$1 billion early-stage fund** raised in 2022, reflecting a strategic shift in focus.

### A Strategic Pivot

The firm has decided against raising another late-stage fund, a move underscored by its recent return of **$275 million** to investors from its **$500 million Select fund**. CRV cited the overvaluation of mature startups as a key reason, aiming to preserve overall returns by concentrating on **seed and Series A** investments.

### Rapid Fundraising Success

Despite the downsizing, CRV's limited partners showed unwavering support, enabling the firm to secure the entire **$750 million** in just **four weeks**. The demand reportedly exceeded the fund's size, highlighting the confidence in CRV's investment strategy.

### Focus Areas

CRV plans to channel the new fund into **consumer and devtools companies**, continuing its legacy of backing successful startups like **DoorDash, Mercury, and Vercel**. With a portfolio that includes over **750 startups** and **80 public companies**, CRV's track record speaks volumes.

### Recent Investments

The firm's latest bets include **CodeRabbit**, an AI-powered code review startup, and **Outtake**, which leverages AI for cybersecurity solutions, showcasing CRV's commitment to innovation and technology-driven ventures.

The 55-year-old VC firm announced its twentieth fund.

CRV's Bold $750M Fund Strategy: Downsizing to Focus on Seed and Series A Startups

Even while the tech industry is still buzzing over **Figma’s hot IPO** on Thursday, another significant tech IPO occurred this week: **Ambiq Micro**. On Wednesday, the chip maker for wearable devices saw its shares climb from the initial price of $24 to over $42 on Friday.

There’s one thing both companies have in common: **Kleiner Perkins** was a major investor. 

So it’s been a very good week for the venerable venture firm. Just for fun, we’ve calculated the value of Kleiner Perkins’ stake in each company.

Kleiner sold **1,346,499 shares of Figma** at the IPO price of $33, and could have sold as many as **2,756,020 shares** at that price if the bankers exercised their option to nab additional shares. Given how much **demand outstripped supply for shares of Figma**, we’re going to assume the bankers will snap up the full tranche (or they already have).

Meanwhile, Kleiner still holds **52,364,374 shares of Figma**, the company says. Share prices are still fluctuating wildly in heavy trading on Day 2, from about $110 to over $142, but closed Day 1 at $115, so we’ll use that number.

For Figma: An estimated **$91 million returned from share sales** and a remaining stake worth more than **$6 billion** (2,756,02 shares at $33 = $90,948,660, and 52,364,374 shares at $115 = $6,021,903,010). 

For perspective, this stake in Figma alone is worth **3x the last mega-funds the firm raised**, which was **$2 billion across two vehicles in 2024**. By the way, the Kleiner partner who oversaw its investment was Figma board member **Mamoon Hamid**.

Ambiq is a much smaller company and it was a much smaller IPO. It sold a total of **4 million shares** and raised **$96 million for itself** in its IPO. Existing shareholders are subject to the classic **180 days lockup** before they can sell. Kleiner holds **2,081,831 shares**, the company disclosed. Shares are still trading at a premium to the IPO price as of Friday and closed Thursday at $43.85. So we’ll use that price.

Ambiq stake: **$91.3 million** (2,081,831 at $43.85 = $91,288,289).

But wait! There’s more. Kleiner is also having a good month and possibly year (Kleiner has declined comment for this story).

The firm reportedly scored a decent return earlier this month as part of **Google’s deal to license tech from Windsurf** and hire away its top talent. We don’t know exactly how much of the **$1.1 billion or so VCs obtained** from the Windsurf deal went to Kleiner specifically. But TechCrunch’s Marina Temkin reports the total return was about **3x the original funding**.

And at least one more Kleiner-backed company is waiting in the wings to IPO. Fleet tracking startup **Motive Technologies** raised **$150 million led by Kleiner Perkins**, with Ilya Fushman joining the board, the company announced this week. Bloomberg reported in December that Motive is gearing up for an IPO, potentially still in 2025.

With two IPOs this week alone, Kleiner Perkins partner Mamoon Hamid has reason to celebrate.

Kleiner Perkins Celebrates a Stellar Week with Dual IPO Triumphs

Silicon Valley’s startup hustle culture is evolving, mirroring China's once-outlawed "996" work schedule—**9 a.m. to 9 p.m., six days a week**, totaling **72 hours per week**. This shift is particularly noticeable in the **AI startup sector**, where companies like Rilla are explicitly stating in job listings that applicants should be ready to commit to **~70 hours/week** in person.

### The Rise of 996 in the Bay Area

- **AI startups** are at the forefront, adopting this grueling schedule to stay competitive in the **global AI race**.
- **Will Gao**, Rilla’s head of growth, mentions a growing **Gen-Z subculture** inspired by tech legends like Steve Jobs and Bill Gates, who were known for their relentless work ethic.

### Tech Giants Weigh In

- **Google co-founder Sergey Brin** suggested that **60 hours a week** is the productivity "sweet spot."
- **Elon Musk and Mark Zuckerberg** have also emphasized the importance of **hardcore work cultures**, with Musk famously demanding extreme commitment from Twitter employees.

### Global Implications

- Despite China's Supreme People’s Court declaring the **996 culture illegal** in 2021, its influence has spread globally, sparking debates in **Europe’s tech sector** about competitiveness and work-life balance.
- **Harry Stebbings** of 20VC fund argues that **working seven days a week** is now necessary to compete on a global scale.

### The Burnout Concern

- Critics like **Ivee Miller** of Balderton Capital warn that such intense schedules lead to **burnout**, a top reason early-stage ventures fail.

Some Silicon Valley startups are embracing China's outlawed "996" work culture in pursuit of hyper-productivity and global AI dominance.

Silicon Valley's New Obsession: The Controversial '996' Work Model from China

## **Pilgrim's Bold Move: A Founder's Extreme Demo Secures Major Funding**

**Jake Adler**, the 21-year-old founder of **Pilgrim**, a biotech startup focused on military and commercial medical devices, took an unconventional approach to showcase his flagship product, **Kingsfoil**—a hemostatic dressing. Adler filmed himself cutting open his thighs to demonstrate the product's effectiveness, a move that not only captured attention but also helped secure **$4.3 million in seed funding** from notable investors including **Peter Thiel's family office**, **Cantos VC**, and **Day One Ventures**.

### **The Demonstration That Turned Heads**
Adler's video, which he assured was done safely and with prior notice to his mother, showed him using a punch biopsy tool to create precise wounds on his thighs. One wound was treated with Kingsfoil, which transformed into a gel-like consistency upon contact, effectively stalling bleeding, while the other served as a control. This daring act underscored Adler's commitment to his startup's mission: developing **battlefield-ready biotech** solutions.

![Kingsfoil in both gauze and gel form.](https://i.insider.com/688ce710f748d8c055f6bb84)
*Kingsfoil in both gauze and gel form. (Image: Pilgrim)*

### **The Science Behind Kingsfoil**
Named after the healing herb in *The Lord of the Rings*, Kingsfoil is a **clay-based hemostatic** designed to seal wounds, clot blood flow, and aid healing without known side effects beyond minor skin irritation. Adler's goal is to first cater to the **Defense Department**, whose needs he believes are ahead of civilian markets, before making the product available commercially.

### **Funding and Future Plans**
The seed round was led by **Cantos VC**, with participation from **Thiel Capital**, **Day One Ventures**, and others. Pilgrim is also developing two additional products: **Voyager**, an inhaled mist to neutralize chemical threats, and **ARGUS**, a surveillance platform for detecting biological and chemical hazards.

Adler, a **Thiel Fellow**, envisions Pilgrim as a **dual-use startup**, bridging military and civilian applications. With Kingsfoil on an **expedited pathway** to FDA approval, Pilgrim aims to revolutionize wound care with its innovative solutions.

Pilgrim, which makes a hemostatic dressing and other biotech products aimed at military and commercial use, raised $4.3 million in seed funding.

21-Year-Old Biotech Founder Raises $4.3M After Demonstrating Product by Cutting His Own Leg

## The Rise of Quantum Computing Startups

Quantum computing is revolutionizing the tech industry by leveraging quantum mechanics to perform complex calculations far beyond the capabilities of classical computers. **This innovative technology operates on quantum bits or qubits**, enabling simultaneous calculations and opening new frontiers in computing.

### Global Leaders in Quantum Innovation

The **United States** dominates the quantum computing startup scene with **77 startups**, leading the charge in this cutting-edge field. Following the U.S., **Canada** and the **UK** are notable contenders with **29 and 26 startups** respectively, showcasing a vibrant ecosystem of quantum innovation.

![Map showing the world's quantum computing startup hubs.](https://www.visualcapitalist.com/wp-content/uploads/2025/07/Quantum-Computing-Hubs_02-web.jpg)

### Investment and Breakthroughs

With **national funding announcements in quantum technology reaching around $54 billion**, the sector is witnessing unprecedented growth. **Startup investment surged by 50% to $2 billion last year**, reflecting the accelerating interest and confidence in quantum computing's potential.

### The Startup Ecosystem

- **QuEra Computing** (Boston) secured a **$230 million funding round**, with backing from giants like SoftBank and Google Quantum AI.
- **PsiQuantum** (California) received **$594 million in financing** from the Australian government, highlighting the global race in quantum advancements.

### Big Tech's Quantum Ambitions

Tech behemoths such as **Google, Amazon, and Nvidia** are deeply invested in quantum technologies. **Nvidia** is establishing a quantum computing research center in Boston, aiming to integrate quantum computing with supercomputers to bring practical applications to life.

In this graphic, we show the top countries for quantum computing startups as innovation accelerates and global investment ramps up.

Kyoto's Startup Renaissance: How Foreign Entrepreneurs Are Merging Tradition with Tech

Summary:

Kyoto's Startup Scene: A Fusion of Old and New

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