All motivation stems from an attitude to find something interesting

Noriyuki Suzuki
President, Asterisk Inc.

All motivation stems from an attitude to find something interesting

Asterisk Inc. offers the AsReader series of barcode readers and radio frequency identification (RFID) readers that can be attached to smartphones. The Osaka-based company was the first to focus on the possibilities and potential of smartphones, launching reader devices attachable to smartphones when dedicated devices were mainstream in the field. Asterisk has been making great leaps, including listing its shares on the Tokyo Stock Exchange Mothers market in September 2021 and completing the construction of “AsTech Osaka Building”, as a lab and Osaka Office in February 2023. Mr. Noriyuki Suzuki, President of Asterisk, describes the path Asterisk has taken so far, its relationship with Mitsubishi UFJ Capital (MUCAP), and its future prospects.

Background

—Making people happy with our business

I was good at thinking logically and could quickly solve logic quizzes since childhood. I majored in mathematics at university, where I met a very good teacher. He used to say, “This is interesting” for everything. Whenever I heard that, I wondered whether those were really interesting. But when I tried them out, they sure turned out to be interesting. Since then, I have retained an attitude of finding something interesting in everything.
After graduating from graduate school, I joined Toray Industries, Inc. and was engaged in system-related work, developing systems for clients. I could make clients happy through the cycle of receiving an order, completing a system, delivering it, and receiving its payment, which also leads to the next project. I enjoyed it a lot and even thought that pursuing this path as a company employee may not be a bad idea.
Around the time of the birth of my first child, my father came down with an illness. That was when I felt that I had reached the halfway point of my life and did some self-reflection. Moreover, when I was working as the leader of a project to rebuild a core system, a sales executive said to me, “The system division just has to make what we tell you to make.” We were generating solid profits and contributing to the company’s business, so we did not deserve to be told something like that, which provided me with an impetus. I came to the realization that, after all, I want to make people happy through business, which was why I decided to start a business.

Encounter with Mitsubishi UFJ Capital

—Our first fundraising became a turning point for the business

We were engaged in software development for a while from the time of establishment. From around 2008, we considered betting on the potential of smartphones and made our foray into this field, but our business performance continued to be hard. We were trying out various things in a bid to break the status quo. As part of that, we met with officials from many VCs, but nothing panned out because we did not have the knowledge or the information as to what it means to have someone invest in us, and we were fumbling.
Around this time, while this situation continued, our CFO introduced us to Mr. Sato of MUCAP. My image of venture capitalists based on my experience was that they were slightly scary, but Mr. Sato empathically listened to us from the beginning. While seeking his advice about various matters, he told us that MUCAP would participate in our first fundraising.
I actually do not remember much about that time. To be honest, I had no time to spare. We were able to raise funds, but it felt as if we were entrusted with money that belonged to someone else. However, various things started falling into place a month or two after our fundraising, like a financial institution offering us a loan and so on. Our proposals to clients also started getting accepted, maybe because we began to have some leeway. Looking back, the tide definitely turned with this fundraising.

Relationship with Mitsubishi UFJ Capital

—MUCAP faced cordially to whatever we brought up

It is not easy to answer when asked what the difference between MUCAP and other VCs is, but Mr. Sato of MUCAP, was easy to talk to. He faced cordially to any issues we brought to him. He always participated in our monthly board meeting as an observer, which was a big positive for me. It apparently put some constructive pressure on the then managerial staff in the sense that they could not report anything strange or ambiguous because the VC was observing in the board meetings. Thanks to that, the mood of the company became sober. In addition, Mr. Sato introduced us to a lot of business partner candidates. I was awe-struck by the breadth of his network, which is probably a given for a mega bank- affiliated VC.
While preparing for listing, the securities companies and the auditing firm pointed out various things to us, and often times we were perplexed as it was our first time. Nevertheless, we were able to respond properly thanks to the apt advice provided by Mr. Sato.

Future Prospects

—Try new things with speed

So far, we have been expanding our barcode and RFID readers under the themes of Object Recognition and mobile. We plan to expand them globally, and at the same time, we are also working on developing businesses in other fields. What we are currently working on actively is a smart lock security solution using face recognition called “AsReader GoMA”. It can be used for recording access to rooms and can also be linked to attendance management systems. We developed it into a solution that brings together two opposing elements of security and convenience. We are offering it including a back-end system and also as a service in combination with a retrofitted smart lock device developed by a company in which we have invested.
In addition, we have also started a project on the world’s smallest-class AI camera in partnership with a company that develops innovative AI chips.
I am fortunate that the work has been incredibly enjoyable for me all this time. Going forward, I would like to take on new challenges with a sense of speed.

To all aspiring entrepreneurs

As I have mentioned earlier, you can overcome any difficulties as far as you have the attitude to find something interesting in it. Such an attitude also has a strong impact on people around you. The experience of struggling desperately during tough times will surely stand you in good stead later.

Interviewed in February 2023

Company

Asterisk Inc.

https://www.asx.co.jp/

Primary business activities

AsReader business (planning, development, and sales of in-house AsReader products)

AsReader, which employs Object Recognition technologies such as image recognition, barcode, RFID, and sensors
AsReader, which is linked with mobile terminals, primarily iOS and Android
Packaged applications using the above
Contract-based development of business use products and others

System integration business (operation-related SI business)

Contract-based development business employing Object Recognition technology such as image recognition, barcode, RFID, and sensors
Contract-based development business of mobile applications centered on iOS
Business consultancy employing Object Recognition technology
Business consultancy employing mobile terminals

Company History

2006	August	Established in Otsu, Shiga
2007	January	Started mobile security service for businesses
2008	April	Relocated head office to Yodogawa-ku, Osaka Established “Asterisk—for mobile solutions” as the company concept
2010	March	Launched “Salasee”, Japan’s first mobile POS system utilizing iPhone and other devices
	July	Introduced “PitPay”, Japan’s first payment application for smartphones
	November	Opened Tokyo Office in Minato-ku, Tokyo
2012	May	Established “Dalian Mingrixing Technology Co., Ltd.”, a wholly-owned subsidiary, in Dalian, People’s Republic of China
2014	June	Started selling “AsReader” barcode reader and RFID reader writer
2015	January	Established “AsReader, Inc.”, a wholly-owned subsidiary, in Torrance, California, U.S.
2016	March	Carried out capital increase through third-party allotment to five VCs
2017	October	Opened a research and development technology center in Shenzhen, China
2018	February	Established “AsReader Europe B.V”., a wholly-owned subsidiary, in Rotterdam, Netherlands
2019	May	Relocated the office of “AsReader, Inc.” to Portland, U.S.
2019	June	Relocated Tokyo Office to Chuo-ku from Minato-ku
2020	November	Opened Nagoya Office
2021	September	Listed shares on the Tokyo Stock Exchange Mothers market (securities code: 6522)
2023	February	Opened “AsTech Osaka Building” as a lab and Osaka Office in Yodogawa-ku, Osaka

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