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Nikkei Business Daily October 18, 2016

How to Avoid Being a ‘Business Tourist’ Part 2

Joanna Drake Earl
General Partner, Core Ventures Group

Part 2

In Part I of this editorial, we outlined a framework for determining what aspects of Silicon Valley innovation are strategic to your company, and how to map those areas to specific objectives and Silicon Valley modes of engagement. With that framework in place, the most critical next step towards being effective with Silicon Valley start-ups is to develop trusted relationships.

We advocate assigning a senior executive sponsor within your organization to own any Silicon Valley initiative (partnership, investment or acquisition). By knighting one leader to serve as an advocate for a Silicon Valley relationship or initiative, you can increase odds of success through their professional responsibility. They will be responsible for marshalling HQ resources and owning timely corporate decision-making.

If that executive is not able to have a persistent presence as the company liaison in Silicon Valley, then pair them with an on-the-ground, talented lieutenant who can cultivate and nurture the relationships in the start-up ecosystem. An ideal profile is a senior business development executive with experience operating in Western cultures, preferably with some kind advanced degree from a top Western University and, even better, with some years already working in Silicon Valley. Speaking perfect English is less important than being comfortable speaking English. In Silicon Valley we hear all kinds of accents but we don’t hear people who don’t talk. And, as important as English, is tech speak.Finally, your Silicon Valley representative should be a passionate advocate for your company and mission.

In order to develop trusted relationships with entrepreneurs and Silicon Valley connectors, it is critical that your company invest reliable and persistent executive time in Silicon Valley. Your executives, and therefore your company, will only be taken seriously if they appear committed to the market and founders know that they aren’t going to be replaced every 12 months. An ideal commitment is 3+ years. It is possible to spend 50% back and forth in Japan if there is a strong local Silicon Valley presence and residency. Ultimately, the number one goal should be to identify the right specialization and connection points for their company. It will take at least two years to be invited to the insider events and conferences and investment opportunities. They should spend time in all the places where the “Silicon Valley insider” entrepreneurs and investors do business and develop friendships. Needless to say, sending executives for isolated 3 months stints is a waste of everyone’s time.

And while in Silicon Valley representing your company, your leaders should learn the art of conducting successful meetings with entrepreneurs. First, it is important to get introductions from respected and trusted entrepreneurs and connectors. One of the reasons that Silicon Valley is so insular is that top talent uses its human capital network as a shield to avoid wasting their time. Most insiders refuse cold calls even from top corporate executives.

When your executives receive properly qualified introductions and secure meetings, it is important that they recognize that your corporate brand will not necessarily impress the entrepreneur. Instead, they should approach each meeting with a specific set of goals in mind and having done the homework necessary to add value to the start-up. The best meetings are the opposite from meishi exchange: substantive exchanges where the entrepreneur hears an important customer insight, takes away an understanding of Japanese market differences, or benefits from a valuable introduction. It’s a little bit like early dating: bring flowers or chocolates and be prepared to be in courting for the long haul. Blind dates are rarely recurring!

Read on Nikkei Site

If you want to contact us

We place a high priority on meeting with start-ups that are referred by someone we know. If you aren’t already connected to our network, feel free to send us an email. Forgive us in advance for only responding to cold introductions that are absolutely fascinating.

You can find us in San Francisco at 474 Bryant St. [map]