From Announcer to CVC Capitalist: New Co-Creation Goals from a Company that Supported 100 Years of Entertainment

Hari Tobita

Executive Officer, Shochiku Ventures Inc.
Innovation Promotion Department, Business Development Division, Shochiku Co., Ltd.

After working as an announcer for a TV station, I joined Shochiku in 2017. After gaining experience as an event producer, I became involved in the planning and development of XR content, overseeing the production of location-based VR and AR apps. In 2021, I was seconded to the seed-focused venture capital firm ANOBAKA, and now I am working on business collaborations with startups and managing a studio using virtual production technology, as well as working as a producer. In 2022, I became an executive officer at Shochiku Ventures.

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CVC Shouldering the History of Japanese Entertainment

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- Shochiku Ventures, the CVC of Shochiku, was established in 2022. Could you tell us about its purpose and the vision it aims to create?

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Shochiku, since its founding in 1895, has developed a diverse range of entertainment-related businesses, with theater and film as its core focus.

Although it may not be widely known, Shochiku has been involved in many pioneering initiatives throughout its long history and has a DNA of embracing challenges. For example, Shochiku was behind Japan's first "talkie" (a movie with synchronized sound and picture) and color films. Additionally, in the traditional performing art of Kabuki, which has a history of over 400 years, Shochiku has actively incorporated innovative staging, collaborations with popular IPs, and the use of cutting-edge technology, while preserving classical elements. This approach has continued to attract a large number of fans to this day.

The mission of Shochiku Ventures, encapsulated in the phrase "Advancing the entertainment of this country," reflects our commitment to continuously undertake new initiatives that align with the needs of society, technology, and the times, while inheriting tradition. We take pride in contributing to the creation of Japanese culture, and through our CVC, we hope to further advance the development of entertainment.

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- Could you tell us about the activities of Shochiku Ventures?

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Shochiku Ventures, with funding from Shochiku and itself, established a fund of approximately 1 billion yen in its first year.

Our investment focus includes "entertainment," as well as "urban development" in the Higashi-Ginza area, which is beginning to undergo redevelopment. We are interested in several emerging technologies and themes, including XR and Web 3.0 (particularly NFTs), and are looking to collaborate with startups that possess cutting-edge technologies and services related to entertainment.

Our primary investment target is early-stage startups that have a tangible product or service. However, we are currently considering a wide range, from seed to middle- and later-stage companies.

We are also working on co-creation with the Shochiku Group, and we run an accelerator program (hereafter referred to as "Accel Program"). The current program, which ran from June 30 to August 10, 2022, is ongoing. Investment activities and the accelerator program are not tied together, but we aim to focus on supporting innovative services and products while considering co-creation with business divisions within the company.

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- Could you explain the process that led to the establishment of Shochiku Ventures?

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Collaboration with startups had been under consideration since around 2017. It began with initiatives like LP investments and sending young employees to venture capital firms, and in 2019, we held our first accelerator program. We also established the New Business Division, which consolidated scattered new business efforts from each department, gradually building a system for open innovation.

However, just as we were ready to move forward, the COVID-19 pandemic had a major impact. Our business, which had been focused on inviting customers to theaters and cinemas, was severely affected in 2020 when all theaters and cinemas were forced to close, and performances continued to be canceled or restricted until 2021. At that time, we had no choice but to limit our new challenges.

Meanwhile, between 2020 and 2021, we took the opportunity to have our employees seconded to the CVCs of the VC firms and business companies we were investing in, gaining valuable training experiences.

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- The establishment of Shochiku Ventures was accomplished by overcoming the challenges of the pandemic. What kind of structure does Shochiku Ventures have now?

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Shochiku Ventures was launched with a team of seven, led by Inoue, an executive director and head of the Business Development Division at Shochiku. Four of the team members are in their 30s and have been entrusted with considerable decision-making authority. All four of them hold the title of executive officer or senior executive officer. This is the same group that gained training by being seconded to VC firms and corporate CVCs.

I joined Shochiku in 2017 and was involved in planning XR content and running Shochiku's first accelerator program. In 2021, I was seconded to ANOBAKA and later joined Shochiku Ventures.

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- This time, rather than making a balance sheet investment through Shochiku itself, you have created a CVC subsidiary and adopted an investment structure through a fund. Can you explain why?

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By creating a subsidiary separate from the main company, we aimed to expedite decision-making within the team and grant responsibility and authority to members in their 30s, who are closer in age to many entrepreneurs. Above all, Shochiku is not well-known in the startup industry. We expect that establishing a new company will have a positive announcement effect as well.

The intention behind the fund scheme is to ensure continuity in our collaboration with startups.

There are already many attractive CVCs and VCs, so after reflecting on what we could offer, we concluded that, in addition to providing accelerator programs and business collaboration opportunities, a CVC fund would likely be in demand.

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From Announcer to Capitalist

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- Could you tell us about your career so far, personally?

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After graduating, I joined Iwate Menkoi Television, a Fuji TV affiliate, as an announcer.

I was born and raised in Tokyo and attended an all-girls school from elementary to university. From the first grade, I admired Natsuko Kojima from Fuji TV and dreamed of becoming an announcer. This may be common in all-girls schools, but during my teenage years, my classmates were excited about becoming actresses or flight attendants, but I remained consistent in my desire to be an announcer. I suppose I was a relatively pure-hearted child (laughs).

During university, I joined a broadcasting research club at Waseda University and took part in hosting and announcing. It was a large circle of about 500 people, making events and videos, where everyone played their role in creating something together before passing the baton to the host. I really enjoyed that team dynamic. The experience of passing the baton to complete something has stayed with me and became an important guiding principle in my later work.

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- As you pursued your dream of being an announcer from a young age, did you encounter any gaps or surprises once you actually started the job?

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Starting my career in Iwate, where I had no prior local knowledge, was initially a bit bewildering. However, I often received encouragement from viewers who would say, "Do your best!" I felt a sense of connection with the local people while working. Local broadcasters like myself would often go to the field as reporters, and there was a strong sense of fulfillment in delivering information to the public.

On the other hand, I struggled with the conflict of reporting on the aftermath of the earthquake. Between joining in 2012 and leaving the company, I was responsible for covering the damage from the 3.11 disaster and for nationwide broadcasts. There were moments of frustration, such as not experiencing the 3.11 disaster firsthand and the emotional gaps I felt when reporting on the mental state of those affected while trying to convey that "reconstruction is steadily progressing." I understood the importance of reporting to prevent the disaster from being forgotten, but I also had moments of doubt, as I felt I was evoking painful memories for those who wanted to forget. These mixed feelings were challenging to express while doing my job.

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- Why did you decide to leave your career as an announcer and join Shochiku in 2017?

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There were two main reasons.

The first was my desire to build a more diverse career, beyond just being an announcer. At the time, the reporting department I belonged to had a low female ratio, and there were very few senior female colleagues. Even though I loved my job, I found it difficult to envision my future five years down the line without a clear role model.

The second reason was that I felt the power of entertainment. I witnessed people in evacuation centers and temporary housing passing around manga magazines to read together. When film screenings were held, people of all ages gathered in large numbers, tightly packed into the venues. When a Kabuki performance was held on the coast, despite many people staying away from the sea after the disaster, people from all over Tohoku gathered to watch. In times of disaster, restoring infrastructure and basic living conditions is a priority, but I realized that entertainment is a source of energy for people and enriches their lives.

Reporting is important, but at the same time, I struggled with the conflict of conveying information that could hurt people. It was at this time that my interest in entertainment, which can inspire and move people's hearts, grew significantly. I registered with a job search site, and by chance, I joined Shochiku.

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How the Accelerator Program Changed My Perspective

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- How did you find it jumping into a completely different industry and job role?

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Actually, I had never even used Excel or PowerPoint before, so the work environment changed drastically for me. Additionally, the reporting department is not a revenue-generating division, and as an announcer, you can usually meet people just by handing them your business card. When I switched jobs, it was my first time creating my own projects, setting budgets, and pitching them to others. I had to learn how to think in these terms.

After joining, I worked as an event producer, handling everything from finding sponsors to marketing and promotion. Each day was a new experience, and I was constantly learning and expanding my skills.

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- How did you overcome the hurdles of starting a job in an entirely different field, especially when you didn't know anyone in the company?

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I began by making connections within the company. I would go for lunch with people who seemed close to my age, and through them, I was able to connect with others. Gradually, the work became easier as I built a network.

Unlike when I was an announcer, where my name would be recognized, in this new role, I had to actively promote myself—explaining who I was, what I could do, and what I was interested in. I focused on my own personal PR. Being able to meet people and gather various pieces of information probably helped that I had built up my character as a reporter during my previous career (laughs).

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- How did your encounter with startups and CVC come about?

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The turning point was my experience managing Shochiku’s first accelerator program in 2019. As we worked together on the program, I found myself frustrated because I couldn’t fully absorb the passion and worldview of the startups. I realized that I needed to study more. I was deeply impressed by entrepreneurs around my age or younger, who were risking their own lives and supporting their employees. Their level of study and seriousness was on a completely different level from the corporate mindset I had known.

At the same time, I also felt the urge to embrace that energy and create something new with them. I even told Inoue and my superiors at the time that I wanted to be seconded to a VC.

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- Could you share an impressive experience with a startup during your time in the accelerator program or during your secondment year?

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One of the most memorable experiences in the accelerator program was working on a PoC with VARK, a VR platform that streams live music events. Shochiku provided the New Shinjuku Piccadilly theater as a physical venue, while users participated in the VR space through VR goggles.

By holding the same event simultaneously in both the real world and the VR space, I gained a deeper understanding of what each platform's value should be and what was necessary to make it happen. This helped shape my thoughts on the future of entertainment.

During my secondment to the VC, one experience that stood out was when we decided not to invest in a particular startup.

The startup was also in the VR space, focusing on content development. Many xR-related services require specific devices to be enjoyed, which limits their potential market size for the time being. There were other factors as well, and ultimately, we decided against investing.

However, if we had been able to approach this as Shochiku's CVC... I think we could have found ways to collaborate, such as mixing theater experiences with VR, or using Shochiku's customer data and proprietary content to create joint ventures. These collaborations might have opened up greater potential for fundraising and business growth.

Reflecting on this, I feel that launching Shochiku's CVC this year has great significance.

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120 Years of Startup Mindset

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- What kind of company is "Shochiku" as a potential partner for startups?

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I believe Shochiku is a company where both offense and defense coexist. Over its 120-year history, Shochiku has experienced many challenges, and many of those challenges have turned into cultural milestones that have influenced society.

Kabuki, for example, not only preserves the traditional forms of kabuki but has also ventured into adaptations based on popular manga and anime, which have been particularly embraced by younger generations. By balancing the preservation of tradition with the willingness to take on challenges, Shochiku has created a culture that evolves with the times. Shochiku’s "tolerance for challenges" might stem from a deep understanding that in order to protect culture, it’s necessary to also embrace the challenge of change.

Moreover, I’ve heard that Shochiku has a history of actively investing and acquiring businesses since its early days, growing by expanding its network of partnerships. I think that when facing startups, it’s not easy to convey their passion and knowledge within the company and seek understanding and cooperation. However, I believe that there is a connection between Shochiku’s DNA and what we are trying to achieve through CVC.

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- Could you tell us about Shochiku Ventures and the future vision you have for the CVC you’re aiming to build?

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As a CVC focused on the entertainment sector, a field we deeply understand and appreciate, our main goal is to contribute to "creating the entertainment of the future."

In the entertainment field, I believe that xR (extended reality) has great potential, so I will continue to focus on exploring the possibilities of combining the real world with digital experiences. Beyond xR, I’m also interested in startups that are using cutting-edge technology in general. "The entertainment of the future" will emerge from those innovations.

At the same time, there is a structural challenge when it comes to advanced technologies: they often lack a track record, face difficulties in securing funding, and struggle to scale their businesses. That’s why I believe a CVC from a historic company with real business assets like funding, professionals, talent, content, and brand power can provide the breakthrough that these startups need.

I originally worked in television, where I was used to worrying about ratings. I understand the impact of gaining recognition, and the thrill of creating momentum by getting more people to know about something. Today, even if a project is rooted in Japan, it can quickly be shared with the world. That’s why I think it would be fascinating to collaborate with startups that have the ambition to leverage Shochiku’s support to gain global attention for Japanese traditional arts.

Within the team, we always say, "Let’s put in the hard work first" while keeping our aspirations high. We’re newcomers as investors, and there aren’t many precedents for CVCs in the entertainment industry. Of course, we’re aiming for investments and collaborations, but for now, I think we should focus on creating as many opportunities as possible. When the passion and sense of mission of startup entrepreneurs meet the experience and legacy of a historic entertainment company like Shochiku, I’m excited to see the kind of chemical reactions that might occur. I want to start by building that environment, step by step.

Having gained experience in the accelerator program and through my secondment, I feel that I’m finally at a point where I can truly feel excited about what lies ahead. I’m happy to be in this role.

While absorbing everything I can from startups, VCs, and CVCs, I want to combine Shochiku’s unique strengths and work toward realizing the goal of "advancing entertainment in this country."

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