Camilo Sandoval: Empowering Startups for Growth in the US and Japan | 18/100 Interviews

Camilo Sandoval: Empowering Startups for Growth in the US and Japan | 18/100 Interviews

TL;DR

1?? As a White House Senior Advisor, Camilo Sandoval championed AI healthcare tech innovation, focusing on the invaluable mission of improving and saving veterans lives.

2?? Japan’s startup scene is rapidly evolving, with increasing women in the workforce, unique career shifts, and significant government backing.

3?? Japan's digital transformation presents golden opportunities, especially in healthcare and cybersecurity, awaiting innovative solutions from startups.


Japan's Current Startup Scene?

Thirty years ago, while stationed in Japan for nearly five years as part of his service in the United States Air Force, Camilo Sandoval embarked on his enduring relationship with the country. Since then, he has returned over thirty times, with his most recent trip coinciding with the G7 Summit in Hiroshima. Here, he delved into the intricacies of escalating cybersecurity and AI advancements. Historically known for its conservative approach, Japan is now at the cusp of an entrepreneurial renaissance.?

This wave is powered by an uptick in women's active role in the workforce and a notable rise in venture capital activity. The government's audacious pledge of 1 trillion yen to invigorate startup growth underscores the optimism around Japan's entrepreneurial landscape. Camilo's own observations this past summer during a three-month exploration of the Japanese archipelago affirm this sentiment: Japan's growing acceptance of diverse career paths and rising entrepreneurial spirit is evident. Notably, the nation witnessed a staggering fifteen-fold surge in VC investments in just under ten years since 2012.

Total Value and Number of Deals in Japan

While serving under the Trump administration, Camilo held significant positions such as the White House Senior Advisor, Chief Information Security Officer (CISO) of the United States, and Chief Information Officer (CIO) for the Department of Veterans Affairs.

Camilo during his visit to the White House

As the CIO, he was instrumental in the digital transformation of the nation's largest integrated healthcare system and financial services institution, managing an impressive $4.5bn technology budget that oversaw 1,298 healthcare facilities and a team of 16,000 technology professionals.

His leadership emphasized a shift towards more digital innovation, customer orientation, and a strong commitment to cybersecurity and measurable outcomes. Moreover, at the White House Office of Management and Budget (OMB), Camilo was the central figure for cybersecurity and AI policymaking, chairing significant councils in collaboration with entities such as DOD, Homeland Security, and the National Security Council, focusing on pressing national security issues.

Advising the US President on AI and Technology Innovation

When questioned about the hefty AI and Technology investments in the Department of Veteran Affairs, Camilo responded with clarity and urgency, “Envision being a nurse or surgeon in the emergency room, with the weight of a life in your hands. Every second counts, and the choices made in those tense moments can determine life or death.” He added that, “Investing in AI and technology isn't just about innovation—it's about elevating the odds of successful patient outcomes in an emergency scenario where seconds count. It's about harnessing tools that can rapidly provide insights or treatment recommendations which traditionally might have taken hours or even days to discern.” In essence he believes that, “it's about leveraging technology to save lives or building health research programs to study how genes, lifestyles, military experiences, and exposures affect health and wellness.”

Challenges in Japan are Opportunities for US-Japan Startups:?

Camilo is deeply committed to bridging the U.S. and Japanese startup worlds through his mentorship and investment strategies. Japan, over the years, has been navigating its way to revamp its economic mechanisms to maintain a competitive edge in sectors revolutionized by technological advancements. The startup landscape, once an overlooked segment of Japan's economic story, is now receiving significant attention from the national government and leading corporations. Even though there's a noticeable uptick in startup formation and investments in Japan, the environment isn't without its hurdles. A key challenge in Japan's startup realm is the hesitation among angel investors to take risks. Additionally, top talent is difficult to attract and retain despite the abundance of well-educated people in Japan, many of whom are fresh graduates drawn to legacy companies for stability, often putting startups at a disadvantage.

Japan's burgeoning health tech sector is opening doors for U.S. startups specializing in AI, IoT, and robotics in the digital healthcare realm. This growth is propelled by Japan's significant aging population, its state-of-the-art IT backbone, and a swift digital pivot prompted by the pandemic. As healthcare expenditures rise, the Japanese government aims to reduce costs by boosting R&D investments and refining regulations tailored for digital health products and services. Furthermore, there's a marked increase in Japanese consumers gravitating towards innovative products from U.S. digital health entities. Recognizing these encouraging trends, Camilo emphasized that U.S. digital health startups stand at a vantage point to tap into this flourishing market.

One pressing issue Camilo identified is the scarcity of deal-sourcing resources in Japan's regional areas. Through his journeys, he uncovered numerous promising small and medium-sized startups scattered across rural Japan. While these startups brim with scaling ambitions, they often grapple with securing adequate funding. Leveraging his expansive U.S. network, Camilo bridges this gap, connecting these startups to potential markets in the Americas. He remains bullish about the potential of Japanese startups and anticipates substantial growth in the near future.


References

https://carnegieendowment.org/2022/10/17/japan-s-venture-capital-industry-snapshot-of-growth-and-transformation-pub-88187?

https://xtech.nikkei.com/atcl/nxt/column/18/02317/122600004/

Sho Inagaki

Senior Account Executive at Nippon Shokken U.S.A Inc.

1 年

Continued... Nevertheless, I think AI technology can serve as a valuable tool within the healthcare sector, automating much busy work. It is important to acknowledge and convey these hazards and provide solutions to investors, in Japan - as mentioned in your article, an especially cautious landscape. I look forward to reading more from this series! https://www.nature.com/articles/s41746-023-00939-z

Sho Inagaki

Senior Account Executive at Nippon Shokken U.S.A Inc.

1 年

Very insightful read! US funding for startups is a huge plus, but I also think Japanese investment from angel investors, venture capitalists, and traditional companies will lay the framework for a more open mindset nationally. For this to happen, for all the benefits that employing AI can provide to the VA and the healthcare sector as a whole, it is paramount that we remind ourselves of the nature of AI. Since AI is using previously indexed data as a basis for generating outputs, depending on the application, we must be careful to ensure we find and blacklist the biased and incorrect data from the AI system. These biased sources are especially of concern in healthcare since this kind of misinformation can lead to lethal consequences. One example was found in a study published on Digital Medicine, about how generative AI can not only propagate but amplify antiquated and false prejudices about the anatomical makeup of Black patients. Across the US, black patients have been disproportionally diagnosed with chronic illnesses stemming from discriminatory practices (that have been indexed).

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