Japan’s Startup Revolution (feat. Kathy Matsui) | E2235

Watch on YouTube ↗  |  January 14, 2026 at 23:30  |  1:07:44  |  This Week in Startups
Speakers
Kathy Matsui — General Partner, MPower Partners; Board Member, Fast Retailing
Jason Calacanis — Angel Investor / Founder, LAUNCH

Summary

Kathy Matsui, general partner at MPower Partners and Fast Retailing board member, joins Jason Calacanis in Tokyo to discuss Japan's startup ecosystem, the shift from deflation to inflation, and why labor shortages make Japan unusually open to AI and startups. They cover Fast Retailing/Uniqlo's global growth, MPower's Fund II focus on Japan Dynamism and women founders, Sakana AI, and policy changes attracting founders. The conversation also ranges into Middle East-Japan ties, geopolitics, immigration, and the impact of humanoid robots and automation.

  • Kathy Matsui discusses Japan's shift from deflation and stagnation to inflation, wage growth, and a tight labor market.
  • Japan's government is promoting startups through visas, subsidies, quasi-public capital, and unicorn targets.
  • Fast Retailing/Uniqlo is highlighted for functional fabrics, quality, and global expansion.
  • MPower's Fund II focuses on Japan Dynamism themes: energy, supply chain, cybersecurity, and food security.
  • MPower launched Japan's first women founders focused fund, citing a discount-entry and premium-exit opportunity.
  • Sakana AI and Japan's openness to AI adoption are cited as signs of a changing startup ecosystem.
  • Jason Calacanis discusses humanoid robots, Tesla Optimus, Amazon robotics, and job displacement.
  • Geopolitics, Middle East ties, and immigration policy are touched on without specific trades.
Ideas
Kathy Matsui General Partner, MPower Partners; Board Member, Fast Retailing 4:07
Uniqlo parent expands global functional apparel.
Fast Retailing, the parent of Uniqlo, is a global apparel company that is anti-fast fashion and focuses on durable, quality, reasonably priced clothing. Its functional fabrics such as HeatTech and Airism, high customer service, and global expansion—especially overseas sales exceeding Japan and strong positions in China, Europe, and the U.S.—support a differentiated global growth story.
9983.T HIGH
Kathy Matsui General Partner, MPower Partners; Board Member, Fast Retailing 12:35
Japan exits deflation, wages rising.
After more than two decades of deflation and stagnation, Japan has shifted to inflation with rising wages. A shrinking workforce gives young workers a sellers' market, and the economic environment is now good enough to encourage risk-taking, including startups.
EWJ HIGH
Kathy Matsui General Partner, MPower Partners; Board Member, Fast Retailing 18:19
Japan policy supports startup ecosystem.
Only about 2% of startup funding in Japan goes to women founders. They raise less and are valued lower than male peers, creating a cheap entry point for investors. However, women-founded companies that IPOed between 2020 and 2024 were valued 1.5 times higher than male peers, creating a potential discount-entry/premium-exit arbitrage that few investors are focused on. MPower launched Japan's first women founders focused fund, backed by the Tokyo government and Mitsubishi entities.
Japanese startups MPower women founders fund HIGH
Kathy Matsui General Partner, MPower Partners; Board Member, Fast Retailing 19:27
MPower invested in Japan AI unicorn.
MPower is invested in Sakana AI, one of Japan's fastest unicorns. It has attracted investors such as Khosla, NEA, and Lux and is recruiting AI talent globally to Japan, showing that Japan can build and attract world-class AI companies.
Sakana AI HIGH
Kathy Matsui General Partner, MPower Partners; Board Member, Fast Retailing 23:48
Japan security needs drive Fund II.
MPower's second fund has a core focus called Japan Dynamism, driven by Japan's geopolitical vulnerability as an island with few natural resources and a shrinking population. The fund targets critical needs including energy security, supply chain security, cybersecurity, and food security.
MPower Partners Fund II Japan energy security Japan supply chain security Japan cybersecurity JAPAN FOOD SECURITY HIGH
Kathy Matsui General Partner, MPower Partners; Board Member, Fast Retailing 56:51
Japan backs laser fusion energy.
MPower has a laser fusion energy company in Fund II. Kathy sees fusion energy as a big and exciting area for the Japanese government, and says being involved in the rulemaking and policymaking process is key for startups in regulated sectors.
Fusion energy MED
Jason Calacanis Angel Investor / Founder, LAUNCH 65:47
LLM robots disrupt labor, factories.
Jason argues that LLM-connected robots will become highly capable and cause real job displacement, doing surgery, sorting garbage, and working in factories. This creates a broad investable theme around humanoid robotics and automation.
Humanoid robots MED
Jason Calacanis Angel Investor / Founder, LAUNCH 65:50
Tesla leads LLM-connected humanoid robots.
Jason visited Tesla's secret factory with Elon Musk and saw Optimus 3. He believes robots connected to LLMs will be able to perform surgery, sort garbage, and work in any factory, positioning Tesla at the forefront of a major humanoid robot wave.
TSLA MED
Jason Calacanis Angel Investor / Founder, LAUNCH 66:20
Amazon leads warehouse robot automation.
Amazon will be the first singularity company because of its rapid robot deployment. It already has roughly 600,000 robots versus 1.5 million humans, and Jason expects two to three million robots within five years, making Amazon a leader in warehouse automation.
AMZN MED
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This This Week in Startups video, published January 14, 2026, features Kathy Matsui, Jason Calacanis discussing 9983.T, EWJ, Japanese startups, MPower women founders fund, Sakana AI, MPower Partners Fund II, Japan energy security, Japan supply chain security, Japan cybersecurity, JAPAN FOOD SECURITY, Fusion energy, Humanoid robots, TSLA, AMZN. 9 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Kathy Matsui, Jason Calacanis  · Tickers: 9983.T, EWJ, Japanese startups, MPower women founders fund, Sakana AI, MPower Partners Fund II, Japan energy security, Japan supply chain security, Japan cybersecurity, JAPAN FOOD SECURITY, Fusion energy, Humanoid robots, TSLA, AMZN