Ask Guhe, founder of American Drivemode, about Honda's start-up stage in Silicon Valley (2)

日本人としてシリコンバレーで起業してM&Aによりイグジット―。グローバルで勝負をしてみたい日本人起業家であれば、1つの大きな目標となるようなことでも、「シリコンバレーで起業したのは、ここの天気が良かったからですよ（笑）」と明るく笑う――。

It was Yoshiyoshi Koga, a co -founder of DRIVEMODE, who looked back on his half life as a tech entrepreneur and responded to the CORAL INSIGHTS interview.DRIVEMODE, founded in 2013, was acquired in Honda in 2019.What is the meaning of a startup acquisition that became the first acquisition project for Honda, 70 years old?

This is the second of the interviews with Mr. Koga.

(Listle / CORAL CAPITAL partner and editor -in -chief Ken Nishimura)

Start up Honda with Silicon Valley

―― DRIVEMODE, which Koga was founded, came as a US startup.Honda acquired it in 2019.About two years have passed since then, how are you working on?

Koga: First of all, from the premise, everyone knows that the IT of the automotive industry is now happening.It is known that software players such as Apple will come in, and that it will include IT -like methodology and software development methodology.

Under such circumstances, it is important that Honda, the top hardware company, bought our company as the first acquisition.We will expand the products developed by DRIVEMODE together.

It is a project that has been done so far to add a collaboration system with a smartphone to Honda's vehicle and convert low -end cars to IoT, but the role is increasingly expanding.From now on, Honda's technical platform will spread more and more.I can't say what it is, but DRIVEMODE is assigned to the challenge in places with high uncertainty in such a new field.The job is to respond to IT's common sense, that is, spread the startups of product development.

Yoshiyoshi Koga of CEO of DRIVEMODE in the United States

I think it's a job to destroy Honda's common sense in order to maintain and establish Honda's industry leadership as the software changes.

The manufacturing industry has excluded uncertainty as much as possible.It is a system that eliminates as much uncertain thing as possible because problems such as recalls occur.On the other hand, the latest methodology of startups and software is the assumption that it is uncertain in the first place, and emphasizes the speed of failing quickly and fixing it quickly.That's the agile style from Silicon Valley.Not only the methodology of product development, but also the strategic, organizational theory, in -house IT system, product development of how uncertain is managed, and such ways of thinking., Honda starts up Silicon Valley.That is our huge mission.

I really want to do that for Honda.What Honda founder Soichiro Honda was saying is that he is now talking about "startup natural", which is now supported by methodology such as lean startups.There are so many people who are longing for Honda.However, there is a situation where it is absolutely far from Honda in the founding period and has to avoid risk.Among them, everyone wants to recover the original Honda's soul.So I think they listen to our voices very well.

So, not only product development, but also leverage with our strengths, consulting, advisory, and advisory.

In the DriveMode, a consulting team is launched just to do that, and in the DX project, we open our system to the Honda side instead of adjusting our IT system to Honda.We are working to create more agile products.

Respect as a "IT professional group" even for 200,000 vs. 20 people

Koga: Fortunately, we are outside the company and listen to the story.We are a software elite group, IT professional group.It's a software professional group that you trust in the company, so you'll listen to your opinions very well.I think that a big organization like Honda does not change if you think about it normally, but you have the opportunity to change it.Expanding this team and changing the culture in Honda.No, from me, "I want to return to the original Honda."That's like that.

――When Soichiro Honda fell and made a motorcycle.

Koga: That's right.Let's try it anyway.Such a way of thinking is exactly what is called lean or agile.At that time, it was innovative, and Soichiro Honda practiced earlier than anyone.Then, Honda must use the methodology that was later established in the software field.

Regarding the creation of products, I am quite free to do it independently than to match Honda's method.

For that reason, DriveMode has many employees.If a Japanese company buys a Silicon Valley company, it is normal for anyone to be gone in about two years.The first acquisition has rarely two years left, and there is almost no cross -border.It rarely does it with cross industries in the manufacturing and software.There is almost no way to do it in a company with such a size difference.It is extremely difficult for those who have really different cultures to go together.Nevertheless, it is Honda's efforts that almost all of the DRIVEMODE employees remain and work.

I'm always selfish, I'm still selfish, but since Honda has the amount of listening to it, everyone is working every day while worried that it will be for Honda.Even though they are stressed in a new environment, everyone is fighting what can do for Honda.That's because Honda trusts me and leave it as a software professional.As a DRIVEMODE team, you continue to trust Honda and want to help.

I think this is a great example of a Japanese cross -border startup acquisition.I think it should be more highlighted and a tremendous success.I don't think this is usually the case.It's really difficult for a large Japanese company to buy such a different company and not break down in the air.

今後10年、ソフトウェアの影響が強くなるに従って、ホンダにとってすごく重要な時期だと思うので、僕らにできることはたくさんあるんじゃないかと、うちチームも思っています。それに対してホンダもうちの意見を尊重してくれているので、小さいチームながらも、すごくダイナミックな仕事をさせていただいています。そういう度量あるM&Aが日本でも増えるといいなと思いますね。

The launch of a new business is a professional, so it is faster to buy

――In that sense, is it a good way to acquire a startup and attach it to the side of the organization like Dejima?As one winning pattern.

Koga: I think so.I think that planning a new business for software and planning a new product are a professional.It's not something you can do because you have created a new department.

The other person who fights in the new business is IT companies or startups, so the excuse that the manufacturing industry is like this is inevitable, so the excuse is not allowed.In that case, it makes sense to introduce a startup like DRIVEMODE with a system and management system and leave it to it.It's overwhelmingly fast in speed.If you make everything from the front, it will take many years.If you buy a completed startup and expand it, the speed will be much higher.

Organizationally, DriveMode was initially acquired by Honda Technical Research Institute, but it has already been transferred to the headquarters.Now it's an organization that hangs directly at the head office.

――In the scale, it is a form that hangs on a considerable large organization.

Koga: The number of Honda's all employees was 200,000 (currently 215,000).Honda was 200,000 and about 20 were about 20, so the difference is 10,000 times (laughs).

――It's a drastic hit if you look at Honda.This is the first corporate acquisition in Honda's history, which has been in business for over 70 years.Because it is the first acquisition, the terms (acquired conditions) such as the acquisition amount and the incentive design after the acquisition are private, right?

Koga: Yes, it's private.I was an investor in VC, so I know some of the terms of the term, so this is the relationship here, so it's such a risk hedge, so I don't have to worry about it any more.I told you that motivation design is better.There is no doubt that everyone still remains without quitting DRIVEMODE because Honda respects my opinion.The moment I talked about the acquisition, the recruiter contacted our team members at once.

Eventually, the moving physical system will be re -drawn with the software.

Koga: Is it okay to talk about what we think of the automotive industry overall as a background that our role in Honda is interesting?

--Please.

Koga: The reason why the Japanese automotive industry is strict now is that it focuses too much on hardware, but in the first place mobility is not so long.In the agricultural revolution, people began to ride horses.In a certain place, there was a stress of the difficulty of managing horses and horses feces in New York, and a car was born.The industrial revolution created a hardware, a mobility system defined by a machine, rather than a car.There are things that are needed on the premise of machines from the Industrial Revolution, for example, roads, signs, gas stations, licenses, and laws.They combine them to create a system.

During the Agricultural Revolution and Industrial Revolution, the mobility has not yet reached the information revolution in the major flow of information revolution.In other words, when the mobility system designed by the software has not reached, I think the real innovation is still coming.

What does an information revolution occur? For example, what happened when the physics -hierarchy system called a letter was replaced by email or the Internet was that there was a protocol like TCP/IP in the first place, and the physical lines and router specifications were determined accordingly. You went there. In the end, software is redesigned the whole system, and we don't talk about reducing human errors by automating only specific parts in the mail with software. That's it. In that sense, I don't think EVs or autonomous driving on the premise of systems from the Industrial Revolution are not within the scope of the Industrial Revolution. The system itself only increases the role of software in a specific part, assuming that it cannot be changed. It is not a change in the scale that the Internet replaced the letter by email using some AI delivery of letters with AI.

However, if the evolution of software in mobility in the future goes to a certain point, somewhere, "Is this the infrastructure itself strange?"There is a discussion, "Isn't this road?"At that time, I think that the physical system with software will be redrawed.

Humans and capitalism eliminates bad things, so even if you think it's absolutely impossible, it will be realized.After all, humans want a door anywhere.We are looking for something that is fast, safe, clean, easy to use, and no need for any rules.This lasts forever as a market pressure.The current mobility system, like the Industrial Revolution era, will not be permanent.

As the software continues to evolve, the infrastructure itself is redesigned at a stretch when the role plays beyond a certain point.The evolution of software such as autonomous driving, which is the previous stage, may only be a transitional technology.But that doesn't mean it doesn't make sense, and repeating steady continuous evolution will be the detonator of the information revolution.So, now, I think it's a very important role for mankind to use software to redefine cars while fusing hardware and software.

The role that Japan should play in the car revolution is great

Koga: I think the role that Japan plays is very great in the mobility information revolution that combines hardware and software.Originally, the software and the hardware of automobiles are a combination of Japan's strong part, so there are still many opportunities in Japan.Conversely, I'm not sure what is other than this (laughs)

Of course, the risk is very high, but I think it's a very interesting area where Japanese and international people like us can help the world.I'm really looking forward to the next 10 or 20 years ... I wanted to say a little recruiting meaning (laughs), but that's my vision.

――By the way, what kind of human resources are DriveMode?

Koga: I want a digital consulting team for Honda, and I want people who can consult with engineering and strategy consulting as an early member.In the development, I want a mobile engineer because Honda's motorcycle and four -wheeled IoT.Product managers, designers, engineers, and Gorigori's product teams like QA.I would like you to come in at the salary table in the IT industry.

Plate "Tie prohibition" at the entrance

――What do you think Koga will do in 10 years?

Koga: I don't know.In the first place, there is nothing like you want to be an entrepreneur, you don't want to be a silicon valley.I just lived in Silicon Valley because the weather was nice (laughs), but when I was here, I happened to start a business environmentally.

I decided not to think strategically about my happiness.Don't strategically think about your important life decisions.For example, if an elementary school student says, "I'm 25 years old, I meet a destined person and get married."Because you haven't met someone you like yet.I think it's basically stupid to predict your emotions in advance.What I felt at that time was to obey honestly.

If you find it more fun to start a business at that time, you may think or not think.But for me, that's not important at all.Until you fall in love because you meet, you're a type who doesn't want love (laughs).I don't have to be a business house again, or that's not the case.

Conversely, that's as important.It's important, so leave it to your feelings at that time.That's why I'm careful not to make a plan in advance.Then your eyes will become cloudy.If you think you have to get married, you will start searching for a woman, and you will give priority to that, rather than being happy.I don't know much about my life because it's a policy of my life that I don't think about what is important so that I can be honest.

--I see.So maybe there is a future that leads to a position that leads reincarnated Honda 2.0?

Koga: I don't know, but I'm not confident (laughs)

――It similar to the story of the investor and entrepreneurs, is there a different professional worker?

Koga: Before I work, I'm this personality.Our Tokyo office is banned from a tie, and I have a plate saying "Please cut the tie here" at the entrance, but I know that Honda's headquarters will not be able to enter unless you dress properly.Prank.If you think that you can leave something important to such a playful guy, you will be worried that you will not be able to sleep at night.No, I usually sleep.

This is the second of the interviews with Mr. Koga.

Ken Nishimura

Partner, chief editor @ Coral Capital