The term, “Keiretsu” traces its roots to japan, where it refers to groups of synergistic businesses that complement one another naturally and dutifully. The japenese do not take the term lightly. It’s not, “Hey we have some synergies, perhaps we’ll work together in the future somehow.” Instead, Keiretsu stands a dutiful obligation. It’s not a perhaps, it’s a must.
Venture capitalists attempt to apply this principle to their portfolio companies (e.g. investing in salesforce, as well as other companies, and having your portfolio companies have a lifetime free license to salesforce, as well as a significant amount of training). Angel investors have tried applying this methodology to their investment strategy (yes, angels are still around…I think).
Yet, this buzz-word is drying out. We’re hearing less and less of it. Kleiner Perkins took the reins and stated they were applying this methodology to their portfolio companies. The only difference was that their definition lacked the dutiful obligation. They interpreted Keiretsu as a nice-to-have. What ended up happening?
Nothing.
In order for Keiretsu to work, the dutiful, dedication to the principle must be present.