Phil has spent three decades shepherding US startups into Japan and, just as often, translating Japan back to his corporate LPs.
What impressed us most was his balance of enthusiasm and restraint: he loves this market, yet preaches patience to anyone who tries to conquer it on Day One.
Japan Through Phil’s Lens
Phil reminded us that Japan remains the largest high-income market still open to overseas startups once China is taken off the table.
Customers here pay real prices and, when you earn their trust, they renew quietly for years.
A single flagship account in Tokyo often unlocks meetings across the rest of Asia, because executives in Seoul or Singapore trust products that clear Japan’s famously tough approval process.
Most importantly, selling to Japanese engineers forces a young company to tighten its roadmap; features that survive here tend to travel well everywhere else.
From “Please Come” to “Please Slow Down”
Before the pandemic, Phil’s biggest job was convincing founders that Japan was worth the airfare.
Today his inbox is full of startups booking flights on their own and asking for a crash-landing plan. His first counsel is almost always the same: move deliberately.
The quickest way to stall in Tokyo is to accept every meeting and end up championed by someone who lacks the budget or seniority to push a deal across the line. Three carefully chosen conversations beat thirty polite ones.
Turning Diligence into Deal Flow
Phil’s firm opens each project with a twenty-page “market map.”
It lists the exact divisions inside major corporations that control budgets, the industry groups that influence them, and the competitors most likely to feel pressured by a new entrant.
Founders mark the names they care about, Phil arranges introductions, and real business development becomes the only diligence required.
That approach helped Square choose Lawson rather than a telecom for hardware distribution and guided Palantir toward an unlikely, yet deeply productive, alliance with Sompo.
The Fine Print on Corporate Capital
When we pressed Phil on whether a Japanese conglomerate belongs on a startup’s cap table, he was blunt: only after a commercial partnership is already producing revenue, and only if several corporations come in together.
A single investor strategy can limit future options once executives rotate or priorities change. A small “club” round that invites multiple partners keeps everyone motivated without letting any one group steer the product roadmap.
Precision Playbook for Breaking into Japan
For founders and operators sizing up Japan, Phil suggests treating Tokyo as a precision instrument rather than a brute-force distribution channel.
Start with tier-one customers, because they attract tier-one talent and validate pricing from day one.
Protect your optionality; joint ventures and exclusive territories feel flattering early on but can narrow the path later.
And instead of shrinking from Japan’s perfectionism, use it to sharpen the product until the roadmap can stand up anywhere in the world.
Keep the Conversation Going
If this recap sparked ideas, you’ll enjoy the full episode with Phil on The Coral Capital Podcast.
We dive deeper into Coinbase’s year-long regulatory dance, the data play behind Palantir’s insurance partnership, and why convenience stores can outsell telecom giants.
Tune in on YouTube , Apple Podcasts and Spotify.
Check out Phil’s book here
Senior Associate @ Coral Capital
