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March 19, 2026

The Production Cake Stack

Insight from Lisa Yu — Panel on investing in Japanese AI startups
Conversations at Shack15 — AI Salon event on Japan-Silicon Valley collaboration

Lisa Yu shared a powerful metaphor for evaluating robotics startup investments: success depends on every layer of the production "cake stack." Each country has a specialty in production, but investors must align with all layers — and those layers are spread across many countries.

Every layer of production in every country needs to support every mode of production. We can't focus too much on the US-based way of doing things when building startups that operate globally.

Japan has so much to teach us about manufacturing, precision, and production integration. The lesson is clear: to invest well in robotics and hardware startups, you need to understand and respect the full international production chain, not just the slice you're most familiar with.