"Entrepreneurs' Aspiration" tells a story of an entrepreneur's passion to start a business, the background and difficulties to overcome until the business gets on track, and what the entrepreneur hopes to achieve through the business.
In this 39th edition of " Entrepreneurs' Aspiration," Mr. Nao Nitta, President and CEO of K.K. CYBO ("CYBO"), talks with Tomoko Numata, JAFCO's VC professional in charge of the company, about his future business pursuits.
【Profile】
Nao Nitta, President and CEO, K.K. CYBO
Determined to master the measurement of cells, the basic unit of life, Mr. Nitta worked for a venture company originated in the University of Tokyo while still a graduate student, immersing himself in the development and commercialization of an apparatus to measure cell activity. He joined Sony in 2008 and contributed to the development and commercialization of flow cytometry, a cell analysis tool. In 2006, he joined the R&D program promoted by the Cabinet Office, where Prof. Keisuke Goda of the University of Tokyo served as PM. Taking over the results of that research, he established CYBO in 2018 and became president.
What's CYBO?
The company is developing the SHIGI platform, which promotes the digitization of microscopic tests and the use of AI. Currently, the company is focusing on medical applications, including an AI solution to support cervical cancer screening performed by microscopic observation of cells, and the development of new technology for testing the risk of atherothrombosis such as cerebral infarction and myocardial infarction. In the future, the company aims to provide a basic platform that will be used in all industries involving life composed of cells, including food, the environment, and energy.
Transforming Cell Testing with Cell Analysis Platform
What is CYBO's business?
Nitta: We are creating a unique cell analysis platform by digitizing cell testing and utilizing AI. Conventional cell testing has been done visually using an optical microscope. Pathologists perform daily examinations and diagnoses based on the knowledge accumulated in the history of science and medicine to date: finding various cells with a microscope, classifying them, and explaining their relationship to disease.
However, Japan has a serious shortage of pathologists and a seriously aging population. Manual testing is extremely labor-intensive and results can easily vary. Our company hopes to solve this problem.
Although the specimen itself is small, the area of cells viewed under an optical microscope is vast when examined in detail. Since cells have a three-dimensional structure, it is necessary to look not only in the plane but also in the depth direction. To digitize this process, a huge amount of high-definition 3D image data must be collected.
The scanner SHIGI developed by our company has realized digital cell testing based on a technology that captures and compresses a huge volume of images in a short time without compromising image quality. Combining this with AI-based cell analysis technology, we aim to release SHIGI as a platform.
What are the reasons behind the lack of digitalization in the field of pathology?
Nitta: There are several reasons, including cost, but the most important reason is the image quality of the scanner. Conventional digitizing technology had not reached a level where doctors could confidently make a diagnosis based on images alone. Therefore, the flow had to be reconfirmed with a microscope, which meant that the digital technology could not be an alternative to microscopic examination.
It is not easy to change the conventional workflow in a busy daily work environment. Doctors do not use an apparatus if it is not high quality and easy to use, and I think this has been an obstacle to DX.
In fact, the first prototype we made was not accepted by the doctors who gave us their opinions during development. Even though we thought the image quality was good enough, from a professional point of view, the image quality was not good enough at all.
From there, we redesigned SHIGI, and after several prototypes, the current SHIGI was finally accepted as "good" and "can be used for diagnosis."
Our strength is not only in our technical capabilities. We place great importance on communicating closely with medical and research institutions to learn about the real issues and to think of ways to solve them, regardless of whether by hardware or software.
What is the current phase of practical application in medical institutions?
Nitta: The recognition of SHIGI as a platform for digitizing cell tests is increasing, and doctors have begun to discuss about the SHIGI technology at academic conferences.
We intend to obtain the necessary approvals as a medical device and move forward to commercialization by the end of 2024. We are conducting research and development in collaboration with hospitals and universities so that our technology is applied, first of all, to cervical cancer screening, where there are a large number of specimens but manpower is in short supply, and in platelet activation tests, where our technology is needed.
Please tell us about your career before starting your own business.
Nitta: I studied science and engineering as an undergraduate at university, but I became interested in biology and subsequently studied cells and genes. Cells are the basic unit of structure in living organisms, and genes are the basic unit of information. I wanted to master one or the other, and I chose the cell.
At a University of Tokyo start-up where I worked while still in school, I was involved in the development of an apparatus to measure cell activity. I then moved to Sony, where I was involved in a new business that utilized the technology cultivated in Blu-ray disc development for cell analysis.
The impetus for starting the company came when Professor Keisuke Goda of the University of Tokyo (currently a director of CYBO) invited me to join a project under the Cabinet Office's "ImPACT" program for promoting innovative research and development. I worked on the development of a new technology that uses ultra high-speed imaging technology to photograph cells, analyzes the images using AI, and isolates the necessary cells. I founded CYBO based on this technology.
Besides the knowledge and technical aspects, are there any other aspects of your experience that you feel are useful now?
Nitta: For a deep-tech manufacturing company like ours, no matter how good the idea is, it is not a business unless the product is manufactured. It is important to have someone on the team with experience as a manufacturer who can design while considering the actual manufacturing process.
During my time at the startups and Sony, I experienced many times the process of going directly to factories and customers to promote commercialization, so I try to share the image of "creating products" within the company when we work on our business.
I have always been interested in "technology transfer" and "industry-academia collaboration" rather than "research" itself. When technology is commercialized and used by users, new discoveries are found, and from these discoveries, new technological ideas can be derived. Such interesting developments can only be created through communication. This is really thrilling to me, and I think this is why I chose a career that emphasizes the commercialization and application of technology.
Meeting at a pitch event that helped to move difficult fundraising forward.
Mr. Nitta and Tomoko Numata, JAFCO's VC professional in charge (left)
In April 2023, you raised 400 million yen through Series A round of financing with JAFCO as the lead investor. Please tell us about your encounter with JAFCO.
Nitta: At the end of 2021, we began to consider fundraising, but since we were still in the process of product development, it was difficult to get a good evaluation from VCs. It was during this time that I participated in the Incubate Camp (a camp program for entrepreneurs and investors), where I met Ms. Numata.
On the first day of the camp, the entrepreneurs pitched on their own, and on the second day, they pitched with the investors they were paired with. My pitch on the first day was not well received (laughs). On the second day, I was paired with Ms. Numata and thanks to her advice, I placed second in overall ranking. I also received the Best Growth Award for my significant improvement in the ranking.
Numata It is common for companies with excellent technology to fall into this trap, and my impression was that Mr. Nitta was able to convey the excellence of his technology, but he could not fully demonstrate how and what kinds of problems it could solve. I worked with him to sort this out.
Mr. Nitta brushed up the content overnight and dramatically changed it to a pitch that anyone could understand. I felt that he is an excellent manager who can create products that meet the needs of others.
Nitta: SHIGI was originally developed based on requests from our users, medical and research institutions, to solve their problems with our technology. I think Ms. Numata's advice helped me go over the development process and verbalize it. Ms. Numata has a track record of investing in companies in the fields close to ours, and her opinions were so precise that I felt she was someone I could trust as an investor.
As a venture capitalist, what potential did you see in CYBO?
Numata: There has long been a need for a scanner that acquires high-resolution 3D images of cells in the field of pathology, and after the Incubate Camp, I went to see SHIGI, which is very compact, about the size of a small microwave oven, and reasonably priced.
I thought this would be easy to install even at large hospitals, so I asked Nitta-san to introduce me to potential users, and when I interviewed them, they all said, "It would be very helpful to have such a product."
Many doctors are often too busy to cooperate with our interviews, but those introduced to me by Mr. Nitta graciously accepted our requests, and some of them even showed us their operating rooms. That's how high expectations are for SHIGI. The image of practical application of SHIGI came to me at once.
What were the deciding factors for you to finally choose JAFCO as your lead investor?
Nitta Ms. Numata's interviews were very professional and precise, and she kept bringing up requests from doctors that I didn't even know they had. She was so accurate that I even thought, "She could be our marketing manager.
In addition, there are various processes, including pharmaceutical approvals, to launch SHIGI as a medical device, and Ms. Numata's extensive knowledge and experience in organizing these processes helped us to decide that we could trust Ms. Numata with our products.
Each investor has different areas of expertise and different ways of thinking, so there is always a good or bad match. Especially for a company like ours, where it is difficult for investors to understand the potential of the business, it is important to keep working without losing heart until you meet a compatible investor. I too struggled in the beginning, but I am glad that I met Ms. Numata and was able to take the next step.
Create a "dictionary of cells" that can be used in various industries
Now that you have completed the fundraising, what are you planning for the future?
Nitta: First, we are hiring personnel to strengthen our development structure. We develop both hardware and software, and among software, we utilize various technologies such as embedded systems and AI.
In order to make products that can actually be used in the medical field, we also hold discussions with doctors. Therefore, we would be happy to have people, who can work on manufacturing from multiple perspectives while communicating with those around them and who want to contribute to medicine and society by utilizing cutting-edge technology, on our team, rather than people who only want to master a specific area of expertise.
Click here for employment information at ▶︎CYBO
Nitta: Our business plan is to sell SHIGI as a medical device by the end of 2024. To achieve this goal, we would like to make steady progress with the cooperation of medical institutions and manufacturers. There are about 7,000 to 8,000 hospitals in Japan, but only about 2,600 pathologists. There are many hospitals that do not have pathologists and cannot perform tests or make diagnoses.
With inexpensive and easy-to-implement digital tools, hospitals will be able to provide high-quality medical care regardless of their financial resources or location, and we aim to achieve this by steadily expanding SHIGI's user base.
Mr. Nitta, the starting point of your career was the desire to "master the cell." Besides "SHIGI," is there anything else you would like to achieve through the cell?
Nitta: In the future, we would like to apply our cell analysis platform not only to the medical field but also to various other fields. For example, in the food field, the development of fermented foods, alcoholic beverages, and cultured meat, and in the energy field, the development of biofuels. As we develop our cell-focused business, we are often approached and asked by customers in a wide range of industries, "Can you do something like this?." I realize the potential of cells on a daily basis.
Through a series of technologies to measure cells, collect cell data, classify cells, and collect cells, we are creating a "dictionary of cells," so to speak. SHIGI is the first step in this process. Since the types of cells that can be measured with SHIGI are limited, we hope to measure and compile a database of various types of cells in the world, and create a basic tool that can be used as a matter of course in various industries.
Finally, please tell us what you value as an entrepreneur.
Nitta: Sincerity is always important to me. As a company based on science, I do not want to lie or say anything suspicious, and I want to be sincere in everything we do. I am also committed to building a relationship of trust through open communication with our employees as well as with the medical institutions and business partners with whom we cooperate, and to working together to realize the future we are aiming for.
Contact Person:Tomoko Numata
The shortage of pathologists in Japan has been a longstanding issue. To solve this issue, the need for digitalization and the use of AI has been increasing, but until now, there have been no products that are practical in terms of both quality and price. CYBO has developed a compact and affordable scanner that can capture clean images of cells at high speed and can be easily installed in any hospital. CYBO's strength also lies in its ability to support physicians in a wide range of diagnoses by combining AI-based cell analysis technology. Mr. Nitta is a highly flexible manager who has steadily improved the product while incorporating the opinions of doctors who become users. Together with his talented team, he is working to put SHIGI to practical use by the end of 2024. I am confident that SHIGI will be used in hospitals throughout Japan, and I will do my utmost to support them.
