Another type of business structure derived in Japan is called keiretsu. A keiretsu, sometimes called an “incubator” or “catalyst” in the US, is loosely translated as a family of affiliates or a business group with overlapping stakeholders and interests.
In a keiretsu, affiliate companies have purposely planned and created interlocking technologies, directorships, shareholders, and joint business ventures. The business that is carried out within a keiretsu group is not exclusive, yet they will generally look internally for services and human resources before considering outside resources—a “you scratch my back, I’ll scratch yours” system, a Web 2.0 style “old boys club,” with girls too.
The keiretsu group’s synergy offers power and profits because the businesses can proactively work together towards mutual success. The author of this guide has loosely formed a keiretsu called WashingtonVC where resources, talent, and technology are shared to deliver innovative products and services across a broad range of industries. Kleiner Perkins in Silicon Valley is famously profitable for its style of technology investment keiretsu.
