Why medical AI is taking off in SE Asia

Today's episode is about trust; trust in technology and trust in each other. Very few startups experience what LPixel went through and far fewer survive it. Today we welcome Yuki Shimahara, founder of LPixel, back to the show. The last few years have been a roller-coster for LPixel, and despite the chaos LPixel managed to created Japan's first certified medical AI device and roll it out into hospitals around the country. And despite his success in Japan, Yuki also explains why smart medical AI startups are all looking to Southeast Asia. It's a great conversation, and I think you'll enjoy it. Show Notes How LPixel was certified as Japan's first AI medical device The transition from diagnostic support to full medical diagnosis Why it's not technology holding back medical AI The nature of trust in Japanese business Japanese health insurance is now paying for AI diagnosis What happens when an employee steals all your funds? The advantages (and disadvantages) of full transparency How investors reacted and their new demands Why more doctors are founding startups Why research is easier at startups than at universities Why developing countries will see more advances in medical AI than the developed world Going global does not mean going to the US (yet) How the Japanese government should (and should not) foster Japanese innovation Links from the Founder Everything you ever wanted to know about LPixel LPixel's medical diagnostic support system Eirl Transcript Welcome to Disrupting Japan, straight talk from Japan’s most successful entrepreneurs. I’m Tim Romero and thanks for joining me. Japan is often described as a high trust society, but it's hard to explain exactly what that means and why it matters. Well, today we sit down to talk about trust and about medical AI with Yuki Shimahara, CEO of LPixel. Now, a lot has changed since Yuki was on the show four years ago. And by all metrics, LPixel is a stronger and more successful startup today. But one unfortunate event really put that level of trust to the test. Well, Yuki will give you the details, but the level of trust that existed between investors and clients and employees resulted in saving a startup that no one could reasonably expect to be saved. And we also talk about why medical AI is going to be adopted so much faster in Southeast Asia, why more and more doctors are starting startups in Japan and why Yuki thinks it's more productive to do deep research at a startup than at a university. But you know, Yuki tells that story much better than I can. So, let's get right to the interview. Interview Tim: I'm sitting here with Yuki Shimahara, the CEO of LPixel. So, welcome back to the show.  Yuki: Yeah, thank you for having me. Tim: LPixel a cloud-based AI image analysis for life sciences and medical research. And well, you can probably explain it much better than I can. Yuki: I'm very honored to be back here. LPixel is a startup company from Research Lab of Tokyo University, which is a pioneer bio image informatics. We combine life science and imagine analysis including AI, but also we do are the two main business. So, we developed the AI for medical misdiagnosis and then developing AI for accelerating the pharma research. Tim: And wow. Last time we talked, I think you were still a PhD candidate at that point. Yuki: Probably. Tim: Yeah. Because I do remember we were running around into different rooms at the University of Tokyo campus at Hongo trying to find a room that didn't like echo. So, much has changed since then. You're a lot bigger and more successful than before. So, how many people do you have working at LPixel now? Yuki: Now, 60 or 70. Tim: Tell me about your customers. So, last time most of your customers were research institutions, people working on medical research and it seems like you've expanded a lot since then. Yuki: I think the last time is just developing the AI but ...