FROM ENTREPRENEURS

13 STORY Aidemy UTEC

The Unseen Dreams Shaped by a President
Who Was Once a Student Entrepreneur

Aidemy Inc. President and
Executive Officer UTEC President, CEO & Managing Partner

PROLOGUE

Aidemy is at the forefront of services that facilitate swift adoption of cutting-edge technologies, including AI, for both businesses and individuals. The company focuses on promoting the internalization of AI and digital transformation (DX). Rather than functioning merely as a system integrator (SIer) aiding in system construction or tool implementation for business transformation, Aidemy emphasizes talent development and project assistance, enabling clients to integrate AI and DX into their operations effectively. Mr. Ishikawa established the company during his tenure at the University of Tokyo, where he shared a classroom with UTEC's Tomotaka Goji by coincidence. How has the encounter between a student entrepreneur and a venture capitalist propelled Aidemy's growth?

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SECTION01 : Backing the Potential of Entrepreneurs

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SECTION01

Backing the Potential of Entrepreneurs

Mr. Ishikawa and Mr. Goji have a 20-year age difference. The two, whose generations are as far apart as parent and child, met in a class at the University of Tokyo's graduate school.

Goji:
I encountered Mr. Ishikawa for the first time in April 2017. The previous year, while engaged at UTEC, I joined the doctoral program at the Graduate School of Engineering, University of Tokyo, and was part of a lab specializing in AI and data science. Needing credits from the master's program, I attended a lecture by the esteemed Professor Yutaka Matsuo on AI research and became classmates with Mr. Ishikawa.
Ishikawa:
I established a company named Goods in 2014 during my undergraduate studies. After a hiatus to explore various endeavors, which unfortunately did not pan out, I resumed my studies and joined the master's program. I decided to concentrate on AI for my next venture and took Professor Matsuo's "Web Engineering and Business Models" class, where I met Mr. Goji, attentively seated in the front row. We were grouped for a project, and upon exchanging business cards, I realized his significant role as UTEC's President & CEO, which surprised me (laughs).
Goji:
Conversely, I was quite anxious. We were required to present our project outcomes as a team, and as I was new to coding, I depended greatly on my younger, more adept classmates, including Mr. Ishikawa. Desperate to keep up (laughs), I was truly thankful for Mr. Ishikawa's assistance. As a token of gratitude, I began advising him on his venture.
Ishikawa:
Indeed, after that class, we decided to rename our company to "Aidemy." Subsequently, we introduced our flagship AI education program under the same name. Around this period, UTEC was initiating its fourth fund, valued at 24 billion yen, and they invested 2 million yen in Aidemy, marking UTEC's smallest investment to date.
Goji:
Despite the modest sum, we opted to invest, recognizing Mr. Ishikawa's potential. At that juncture, he was networking with numerous IT entrepreneurs and contemplating an angel round. UTEC is different from angel investors with a distinct investment philosophy. Nonetheless, Mr. Ishikawa earnestly engaged with my venture capitalist perspective. Believing in his journey, I was committed to supporting his success.

SECTION02 : Addressing the Frequently Asked Question about Technological Innovation

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Addressing the Frequently Asked Question about Technological Innovation

Originally conceived as an educational platform for individuals, "Aidemy" shifted towards a B2B model in response to significant corporate demand, setting the course for growth. What unique value did UTEC add during this expansion?

Ishikawa:
"Aidemy's" inception saw Mr. Goji consistently questioning our technological edge, instilling a profound awareness of our tech. He connected us with The University of Tokyo professors, enabling us to integrate advanced technologies into our offerings. For instance, we designed a system using ChatGPT where AI, rather than providing direct answers, stimulates learning through skillful questioning, and this became one of our notable competitive advantages.

This transition to a B2B model also facilitated enterprise introductions, significantly increasing our corporate engagements and sales, now comprising 85% of our revenue from 200-300 companies.
Goji:
We also facilitated connections with industry leaders, such as when we introduced Mr. Ishikawa to a major manufacturing company's chairman who was visiting the University of Tokyo Entrepreneur Plaza.
Ishikawa:
Yes, after UTEC’s introduction, the negotiations progressed swiftly, and led to a long-term relationship with that client. One aspect I particularly appreciate is heeding Mr. Goji's counsel regarding engagement with major corporations. Shortly after securing the investment, he recommended establishing a board of directors to enhance governance, with Mr. Goji stepping in as the second director. Initially, I did not grasp the full significance of this advice. Yet, robust governance is crucial for a small startup to gain acknowledgment from significant corporate clients. Retaining the perspective of a student entrepreneur without adapting would likely have hindered our expansion.

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PROBLEM

Entrepreneurship presents its trials, and Aidemy faced its share in human resources and operations. UTEC's expertise was indispensable during these times.

SECTION03 : Navigating Through Challenges for Growth

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Navigating Through
Challenges for Growth

Ishikawa:
UTEC was instrumental in our team-building efforts. As the company expanded, it became crucial to recruit seasoned management and personnel with experience. However, lacking prior corporate experience, I was uncertain how to assess candidates older and more experienced than myself. Typically, I involved Mr. Goji in the recruitment process for CXO-level positions to leverage his insights.
Goji:
Additionally, a notable instance involved a junior from my alma mater emerging as a prospective COO. He had multiple career paths available but chose our venture after understanding the necessity of full dedication, subsequently making substantial contributions. Indeed, we've navigated numerous challenges in human resources and business operations together.
Ishikawa:
Precisely. Mr. Goji consistently offered reassurance, reminding me that such obstacles are typical for startups and surmountable, providing significant moral support during challenging times.

FINAL SECTION : “Retaining a Series B Startup Mentality, Even After Our Public Listing!"

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FINAL SECTION

FINAL SECTION

“Retaining a Series B Startup Mentality,
Even After Our Public Listing!"

Aidemy has broadened its offerings beyond talent development to include support for digital transformation (DX), leading to its public listing in June 2023. What lies ahead for the company? Insights on its future direction, coupled with recommendations for UTEC, were shared.

Goji:
The IPO was postponed by a year due to market volatility, but as an investor, my philosophy remained: "As long as the business continues to grow, the timing of the IPO is secondary." Now, with Aidemy's transition to a publicly traded entity, I'm curious about the company's future trajectory.
Ishikawa:
Post-IPO, our organization still mirrors a Series B venture by Silicon Valley benchmarks. The public offering isn't the culmination but the commencement of more substantial challenges. Mr. Goji, your prior discussions on forging new sectors through technology and achieving a global presence resonate with us, yet we acknowledge there's much to achieve.

Our strategic focus will intensify on global expansion. Leveraging our international client base as a springboard for global outreach is a priority. Our ongoing collaboration with Zeon Corporation in Materials Informatics, aimed at enhancing material development efficiency through AI and big data, exemplifies the synergy between Japanese industrial strength and cutting-edge technology, marking the path for potential groundbreaking initiatives.
Goji:
Your outlook is promising. From an entrepreneurial standpoint, do you have any recommendations for UTEC?
Ishikawa:
Reflecting on our journey, I value UTEC's hands-on approach, particularly beneficial for young student entrepreneurs like myself. Grasping the criticality of robust governance took time, yet the guidance to confront hard truths has been indispensable. The synergy between UTEC and student-led startups is evident, fostering a nurturing environment for emerging startups. I urge UTEC to continue looking for student entrepreneurs and nurturing the ecosystem. At the same time, I am motivated to ensure that the label "student entrepreneur" is viewed positively, devoid of any perceived shortcomings.

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