"Entrepreneurial aspirations" to hear the background of deciding to start a business, the conflict until the business gets on track, and the desire to realize through the business.
In the 27th meeting, Mr. Kazuyuki Uemura, CEO of Sharing Energy Co., Ltd., talked about the future challenges of the business from the perspective of the capitalist Tomoko Numata.
【profile】
Kazuyuki Uemura, CEO of Sharing Energy Co., Ltd.
After graduating from university, after engaging in management reform projects of a major general trading company at Deloitte Tohmatsu Consulting Co., Ltd. (currently ABeam Consulting), he established I & C Cruise Co., Ltd. in 2008 and became the representative director. Received Top 5 for 3 consecutive years at Tohmatsu Japan Technology Fast 50. Established Sharing Energy Co., Ltd. in January 2018. In February 2020, transferred I & C Cruises to ZIGExN Co., Ltd., Ltd. through M & A and became the founder of the Company. In March 2021, became the representative director of the Company.
[What's Sharing Energy Co., Ltd.]
We have installed a solar power generation system with no initial cost, mainly for detached houses, and are developing a third-party owned (PPA) service "Share Denki" that can be used at a discount. Expand the introduction of distributed power sources such as solar power generation and promote local production for local consumption of renewable energy. Based on Share Denki, we are promoting the provision of packages with Tesla 's storage battery "Powerwall", comprehensive cooperation agreements with local governments, and VPP demonstration projects of the Ministry of Economy, Trade and Industry.
The number of share-denki contract requests has exceeded 5,500 nationwide, and the cumulative amount of funds raised is approximately 7.63 billion yen (as of June 21, 2022).
Introduced "solar power generation for residential use with initial cost of 0 yen" early in Japan
-Please tell us how you established Sharing Energy Co.,Ltd. in 2018.
Uemura Sharing Energy is a startup that I started as a new business of the company I established in 2008. When I was a university student, I became interested in starting a business when I met a senior who started a business in Silicon Valley, and gained experience at a consulting firm and a startup to do my own business in the future. It was in 2008 that I started a business based on the external environment and my own situation. However, at that time, the business content had not been clearly decided, and since I had children, I decided on the axis of "spreading the values and services that should be spun to the next generation through the Internet" and founded the company.
Meanwhile, while reading various documents such as the book "Inconvenient Truth" by former Vice President Al Gore of the United States, it is the next generation to become interested in the area of "renewable energy" and tackle this social issue. I was convinced that it was an entrepreneurial theme that I could spin with all my heart.
Therefore, we focused on the residential photovoltaic power generation system, which was still mostly door-to-door sales at that time, and started a comparative media business to eliminate the information gap between users and contribute to market development. As we witnessed the system cost of solar power generation falling tremendously over the course of 10 years and various players entering the industry, we not only provided information but also introduced the system to the market as a party. I came to think that I should go. From such a background, we established Sharing Energy in 2018 and started the "Share Denki" business.
-What are the characteristics and competitive advantage of "Share Denki"?
Uemura The PPA (electric power sales contract) model adopted by "Share Denki" rents the roof of the building and installs a solar power generation system for free, and the power generated there is purchased at a lower price than the electric power company. thing. We have taken the form of transferring the system to our customers free of charge after 15 years have passed, and we are currently receiving contract requests for more than 5,500 buildings nationwide. In Japan at that time, although there were cases of PPA for factories and large-scale facilities with large power generation capacity, there was no precedent for private housing, and the service that can generate solar power at home with an initial cost of 0 yen was epoch-making. It was.
Nowadays, it is increasing little by little, but there are not many companies that specialize in it. Since we have been a pioneer, we have already established a network with contractors nationwide and a construction management scheme, and we can automate a series of complicated processes such as design, application to electric power companies and the Ministry of Economy, Trade and Industry, and construction arrangements. I am. We believe that our strength is that our customers are able to use the lowest electricity prices in the industry because these costs are kept down.
-Can you tell us both what you found rewarding and what you struggled with while continuing your business for four years?
Uemura I am very pleased that the number of colleagues who support the mission of "transforming the energy system by creating distributed power sources" has increased. Currently, the government and the Tokyo Metropolitan Government are moving toward making it mandatory to install solar power generation equipment in newly built houses, and the public awareness of "decarbonization of homes" will increase. I feel that it is both rewarding and a great responsibility to be able to move forward toward solving social issues together with employees, investors, customers, and many stakeholders.
Actually, I can't really think of what I had a hard time ... Because, I have a personality that switches quickly. Of course, there are times when something goes wrong and I reflect on myself, but I immediately switch and think about the next move, so I always have the feeling that I am step by step.
Encounter with a capitalist who is familiar with the energy field
Mr. Uemura and Tomoko Numata (left), the capitalist in charge of JAFCO
-In April 2022, we raised Series B funding from JIC-VGI and JAFCO. Please tell us from the background of considering this large-scale financing of 5.23 billion in total.
Uemura There are three reasons. The first is a business model that requires a large amount of initial investment. Since it is a model that expands services with assets at its own expense, various financing methods are needed in the future, and for that reason, strengthening the company's equity was essential for Series B. The second is to improve customer reliability. We often install the system in the homes of individual customers in partnership with house makers and construction companies, but it is important for us to have a sense of trust and security when introducing the system. It was also a necessary phase to have our business partners and customers join the VC with peace of mind.
The third is to create a network to accelerate the efforts we are currently making. Recently, the number of local governments aiming to decarbonize the entire region, not just one house, is increasing, and the business concept of introducing "Share Denki" to facilities and housing in the region is also underway. We will outsource installation work to companies in the region to secure employment, and then return the environmental value created there to local governments to increase the ratio of renewable energy. I want to create a system that allows electricity, people, and money to be locally produced for local consumption. Therefore, I wanted to ask VCs who have networks with financial institutions nationwide to help me.
-Please tell us about your encounter and impression with Jafco from the perspectives of Mr. Uemura and the capitalist in charge.
Uemura We had JAFCO introduced by our shareholders and met Mr. Numata for the first time in November 2021. The first impression is "I'm a sharp person" (laughs). I was surprised that you are very familiar with the renewable energy field. Currently, we are trying to expand distributed power sources nationwide, but in the future we are looking at new businesses that bundle them. Mr. Numata was the only one who could see through to that extent and give us his opinions and advice.
Numata I was originally interested in companies aiming to solve social issues that have not been solved for many years, and I was in charge of companies in the energy field even before "re-energy" and "decarbonization" began to be called out. The decarbonization declaration and the regional decarbonization roadmap were formulated, and when I was wondering if solar power generation on the roofs of houses would increase, Mr. Uemura was introduced to me, and I thought it was a tremendous opportunity. It is an impression of.
I think this is a habit of JAFCO's capitalists, but whether or not you think you are a "good president" the moment you meet is a very important indicator. In that respect, Mr. Uemura frankly felt that he was a very good president. There was a sense of trust that I could talk openly about everything, including issues, rather than blowing strangely.
-After that, what kind of exchanges did you have before the funding was decided?
Uemura Numata is looking two or three steps ahead in the energy field, so we discussed the business while simulating various cases. He also deeply analyzes overseas companies that serve as role models, and I am ashamed to learn from them. I'm really glad that we can be together safely.
-So, is the presence of the capitalist a big factor in choosing JAFCO in the end?
Uemura Yes. Even if I refused, I was talking internally that I would like the board of directors to appear. Among the many VCs, JAFCO has the image of "mainstream" and "root", and is a VC that has the power to realize all the visions in Series B that I mentioned earlier. Furthermore, if you are a VC with a wonderful capitalist like Mr. Numata, you have the confidence that the organization is very mature and will be able to accompany you to the success of the investee company.
Numata Thank you. Residential sunlight is an area that will surely grow in the future. Sharing energy has been ahead of the game since 2018, and we have already built a system that allows us to expand our business, so I think we will be able to win overwhelmingly among our professionals. Investing in the energy field has the difficulty that if it is too early, it will not produce results by the deadline of the fund, and if it is too late, it will not be profitable, but this investment was the best timing.
After raising funds, further business / organization expansion
-Please tell us about the support that Jafco plans to provide.
Numata Currently, we are introducing regional financial institutions nationwide. JAFCO has abundant networks with regional banks' business planning and business matching departments, and has also held matching events for regional banks, and has already begun to take advantage of these points of contact to connect with sharing energy. Everyone on the regional bank side has responded positively, and I think that in the future, we will be able to introduce our business partner builders and develop "Share Denki" together with mortgages, and we will continue to collaborate.
The rest is financing. Since it is a business model that requires funds to own assets, we would like to establish a method that can raise funds more flexibly according to the growth speed while involving financial institutions and leasing companies.
-I think we can focus on expanding the organization in the future. What do you prioritize in hiring?
Uemura Hiring is what I'm working on with the most weight right now. The most important thing is the high level of interest in the business domain, but regardless of age, you can give interesting ideas for expanding this business and multifaceted opinions from different backgrounds. I would like to hire excellent people.
Until now, we have mainly developed newly built detached houses, but in the future we would like to increase the ratio of existing houses, and we also have alliances with large companies such as infrastructure, communication, electric railways, etc. that have such customers. I'm in the field of view. Therefore, in terms of occupation, I would like to strengthen business planning in particular. We also need skill sets such as business planning to promote alliances with other companies in the same industry and mass marketing to gain market share as soon as possible. (Click here for the sharing energy recruitment page)
From Japan to global decarbonization business
-Please tell us what President Uemura wants to achieve in the future and his aspirations as an entrepreneur.
Uemura We are aiming to be the overwhelming number one in the category of "decarbonization of homes". I think that the model for local governments that we are currently promoting will be able to expand overseas, so after achieving the IPO, we will look ahead to global expansion and play a part in realizing a carbon-free society as a global business originating in Japan. I want to carry it.
When the word "decarbonization" appeared on the front page of the Nihon Keizai Shimbun this New Year, I was deeply moved from the standpoint of having been involved in renewable energy since 2008. It is hard to say that the idea of "doing good things for the environment even if you pay money" is still rooted in Japan, but it is certain that the consciousness of the national government, local governments, and customers is changing. Currently, we are developing our business with the approach that we were able to contribute to decarbonization as a result, starting from "the electricity bill is profitable", but we will become a society where both consciousness and behavior are "decarbonization = natural". I want to keep my ambition.
-Finally, do you have a message for entrepreneurs?
Uemura It is very important to clarify "what you do for" when starting a business. If it is to solve social issues, it is easier to recruit friends, but I think it is important to be strongly aware of what kind of flag you are raising for what. Also, it is quite difficult to create a one-of-a-kind business or company, and I think the final difference is "whether or not you really did it." Can you do what you decide to do? Can you create an organization that can be done? I think that is the key to winning or losing as an entrepreneur.
Person in charge: Comment from Tomoko Numata
Around 2010, when I became involved in the energy industry, there was no FIT system yet, and a market based on actual demand had not been formed. Demand was created by the government from there, the cost of solar panels was steadily falling, and on the other hand, the electricity bill was soaring, so the actual demand was finally born and the market was growing. Perhaps more companies will enter the residential solar power business around next year, but since sharing energy already has a foundation, we expect to win overwhelmingly if we run for a year. The management team, including Mr. Uemura, has perfect experience and personality, and has created an organization that can manage with a strong conviction. I would like to provide support that can accelerate future business growth.
