He moved to Japan to launch an AI startup in Tokyo

This essay is based on a conversation with Eric Fung (37), CEO of Colega AI in Tokyo. Edited for length and clarity.

I was ready for a fresh start, so last year I moved to Tokyo.

California was not what it was before. The cost of living was insane, and the Bay Area magic has become darker. I wanted a reset. I visited Tokyo as a tourist and loved its safety, cleanliness and energy.

I also realized something important. Japan has over 3 million small businesses including restaurants, bars, cafes and retailers. Unlike the US, where large chains dominate it, Japan is still operated by many moms and pop shops. It has become the perfect market to test my ideas.

In 2024, I've been there for three months. My US passport allows for the most. I have no roots in Japan – I don't speak Japanese, I don't speak any language, and my family is originally from Hong Kong. But I thought that if I could make something work here, I could make it anywhere.

What I noticed in New York City wasn't for me

I was born in Brooklyn, New York and grew up in a blue-collar family. My father moved from Hong Kong and did almost every job imaginable, including a waiter, limousine driver, and a FedEx worker. My parents even ran through the restaurant for a while.

My parents wanted me to go down the more traditional “white collar” path, but entrepreneurship has always been in my DNA.

I studied advertising and public relations in Pennsylvania. After graduating in 2010, I joined an advertising company in New York. Within a year I knew that corporate life wasn't for me. I jumped at a small startup, pitched products that no one ever heard of, leading a team older than me. I learned more in three years than in the classroom, and I wanted to build a company.

New York didn't seem like the right place to start, so at age 24 I packed a suitcase and headed to San Francisco.

Fung wanted to build a company so he moved to San Francisco.

Provided by Eric Fung

Find my edge in the Bay Area

My first idea was from a visa sponsored job search site to a travel camera app – not taking off, and Big Technology stints only confirmed that corporate life was slow and soul-shattering.

The Bay Area was cruelly competitive and discovered directly with fast database launches. Working there has hone my advantage and taught me how to compete for market share.

In 2019, I co-founded my first company with two former colleagues. Before “AI” became a buzzword, we built AI tools for engineers. After an early success, we left due to the pandemic. It showed me how there is an unpredictable startup life.

After that, we went through the “restaurant phase.” We opened a bubble tea shop, a pancake cafe and fusion spots in California. I set up each, did it and hired a manager to take over. It was exhausting, but it gave me a point of view.

Since then I have a manager who has sold one and runs the other two. Currently, I'm focusing on the new startup, Colega AI. It builds AI marketing solutions for small and medium-sized businesses.

Our startup is registered in the US, but our team is based in Tokyo. We have seven. There were three people in Tokyo, including me, and two of them were in Japanese. As we are not far away, the rest is spreading to Asia, and now no one is in the US.

I moved here forever in April.

Fung's company is registered in the US, but his team is based in Tokyo.

Provided by Eric Fung

Adaptation to Japanese labor culture

Traveling to Tokyo is exciting and challenging.

To navigate cultural and language barriers, I partnered with local people who bridged local relationships. Early on, I was worried that no one would take me seriously. They pitched foreign market products in markets known for their tradition and form.

Tokyo's working culture is a world outside of San Francisco. Sleeping in the office is not uncommon, so I have a Japanese friend who keeps her pillow under the desk. A hierarchy of long and seniority is burned into the system. As America's founder, I had to balance respecting that culture with creating a more flexible, startup-style environment.

My wife, Shana, who I met in San Francisco in 2018, runs her own jewel and jewel business and is well adapted. She loves the safety of the city. However, making close friends takes time and adds hurdles to the language barrier.

We rent a spacious studio near Shibuya. In a very convenient part of the city, you pay around $1,350 for 500 square feet. A similar place in San Francisco can easily cost $3,000.

The space is still close by US standards, but the trade-offs are incredible access. Late night ramen, world-class food, trains anywhere in just a few minutes. It also reduces daily costs. Dining out and groceries are cheaper, but fruits are shockingly expensive.

I don't know how long I'll stay. Great if my business keeps me in Tokyo for five years. When it leads me to other parts of Asia or back in the US, I understand that when the time comes.

Is there any talk about moving to Asia that you want to share? Contact the editor: akarplus@businessinsider.com.

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