H (Hoshuyama): Congratulations on your appointment as president. It feels like we have found the best person for the job.

S (Suemitsu): Thank you very much. I appreciate all your hard work as president when the company was starting up.

H: Thank you for always getting me involved. I remember when the radiative cooling material was being developed at the Osaka Gas Co., Ltd. Energy Technology Laboratories. It was four years ago when I was asked to take charge of new business creation at WiL when discussions were underway on how the material should be commercialized, and three years have passed since I became president upon the company’s incorporation. Time flies. I was originally supposed to serve as an interim president, so I am glad that I can now pass, or rather return, the baton to you.

S: Time flies indeed. It has been around seven years since I first started conducting basic research, but I think we have finally reached the point where our work is recognized by society and the business can expand further.

H: We have been developing the business based on the premise that if the heat environment continues to deteriorate, there is bound to be demand for a zero-energy cooling material, and I have personally experienced the growing recognition of the existence and capabilities of the material. The first thing we did when we launched the company back in the summer of 2021 was to tell society as a whole that such a material exists. I am glad our work was noticed by the public as the buzz around ESG and SDGs issues grew.

S: Given the tailwind of social issues, it was nice that we were able to share SPACECOOL with more people, especially highly aware individuals who are attempting to create new businesses, and that we received so many inquiries. Following the incorporation and development of the business, we have also received more feedback on both the strengths and weaknesses of our product. I was really struck by the benefits of and momentum from incorporating the business as compared to if I was working on my own.

H: That’s right. Incorporating a business can provide quite a lot of benefits in terms of business development, but the reality is that large companies are often reluctant to launch startups in the form of carve-outs and prefer to continue working on projects as a separate internal division. It is a shame whenever potential goes unfulfilled due to the lack of talent or organizational capabilities. Another factor that often gets in the way of incorporation is the management issue of who will be the president. Maybe it was a good thing that SPACECOOL was able to navigate that by telling me to be the president (laugh). Osaka Gas was also decisive in that regard.

S: I believe we have been able to grow so rapidly through open innovation because of the bold decision to launch a startup in the form of a carve-out.
Thank you very much for growing the company and making it what it is today. I will commit myself entirely to SPACECOOL after leaving Osaka Gas and will lead the company through its next phase after taking over from you as president. Thank you for your hard work.

H: Even though you are taking over as president, it is not as if I am leaving the company (laugh).

S: That’s true (laugh).

H: That said, I am glad you made the decision last December to leave Osaka Gas and commit yourself to SPACECOOL.

S: Why is that? It is a product I developed, so of course I am committed to it. I am also glad that you left WiL before me and committed yourself to SPACECOOL. At the time, I felt that I had to match your courage.

H: Many people in large companies just come up with new ideas and ask someone else to take care of the rest.

S: Is that so? I genuinely felt that I wanted to finish what I had been researching for many years with a sense of responsibility and ambition, given that we were able to incorporate the business, undergo internal and external verification, have customers purchase the product, and get a sense that the product is starting to become of value to society.

H: I share your sentiments, but many people have a hard time stepping up to the plate. The reality is it is often the case that large companies naturally offer more stable salaries, better benefits, and are viewed more favorably by society. Moreover, one’s decision to make a career switch to a startup may even be viewed with skepticism by family members...

S: Actually... I did not encounter much difficulty in that regard. Fortunately, my family, and especially my wife, was very supportive of my decision. As the creator of SPACECOOL, I knew I had to finish what I had set out to do with responsibility and ambition, which my wife and the rest of my family naturally accepted. In addition, my superiors at Osaka Gas were very understanding and supportive, which allowed me to make the switch without any hesitation. I was blessed to have people like that around me, for whom I am thankful.

H: Yes. That is very important, and it also means that the people around you believe that SPACECOOL will be a success. Although it is hard to define success, I think they believe that they can maintain their current way of life at the very least and that there is upside potential, so you can go ahead to do what you would like to do.

S: That’s true. I think they believed in what I was doing.
By the way, I think this “belief” was also the thing that supported SPACECOOL in its early days. We were attempting to create a new market with SPACECOOL, and we could not infer its potential from past sales. In other words, “belief” was the only thing that kept us going.
I believe that SPACECOOL is built on the belief of our employees, family members, shareholders, customers, and many other people who trusted us. That is why we must live up to their expectations. I feel really blessed to have found something that I can devote myself to with a strong sense of responsibility to do my very best for the sake of those who believe in me, a feeling that money cannot buy. If I do not succeed, I will be failing those who believed in me, so I will do whatever it takes to grow SPACECOOL!

H: Yes. As the second president of the company, I hope you can do your best to make SPACECOOL a success story among deep tech startups not only as a startup in the form of a carve-out of a large company and as an entrepreneur who started within a company, but also for those who have made a career switch.

S: Thank you very much. The existence of the radiative cooling material SPACECOOL has proven to be of value to society, and its actual adoption has been growing following internal and external verification. It feels a little daunting to take on the role of president just as the company is about to gain wide acceptance both within Japan and abroad. However, I have also learned from you that management requires working in a team, and I believe that we can make steady progress if we listen carefully to the voices of our customers, employees, distributors, shareholders, and other stakeholders, and if we can gain the support of those around us. I look forward to continuing to work with you as well.

H: There are many aspects to SPACECOOL, including being a carve-out of a large company, a deep tech company, a climate tech company, and as a startup of an entrepreneur working within a company. However, business expansion will lead to the growing adoption of zero-energy cooling technology and the mitigation of heat-related issues for society as a whole, so I believe we will become more successful the more we expand the business.
As I mentioned at the start of our conversation, we have found the best person for the job, and I wish you the best of luck as president and CTO! Your job title may have changed, but we will continue to offer you the necessary support, so let’s start working on expanding the business!

S: Yes! Let us join forces and grow the company! I look forward to working with you!