In addition to Arival Bank, we also have updates from Agatha, Pomelo, and Vynn Capital

Singapore’s Arival Bank raises US$2.3M in equity crowdfunding – Finovate

Singapore-based digital bank for SMEs and crypto businesses Arival Bank has raised US$2.3 million in a pre-series A equity crowdfunding campaign led by Seedinvest and Crowdcube, Finovate wrote.

The total funding went beyond the firm’s target of US$864,500.

It follows a US$1 million seed funding round that Arival raised in April 2018.

Claiming to have a pre-money valuation of more than US$14.8 million, Arival Bank looks to use the funding to support licensing and product development initiatives, followed by its launch plan.

It also claimed to have received more than 1,000 requests from individuals and organisations, expressing their interests in opening an account.

Japan’s Agatha raises US$4M in funding to boost sales outside of Japan – Press Release

Japanese cloud-based document management service Agatha announced the completion of a JPY420 million (US$4 million) funding round.

Existing investors Mobile Internet Capital participated in the funding round, which also included new investors GMO VenturePartners and Salesforce Ventures.

The funding round also included a loan from Japan Finance Corporation.

The services that Agatha provide aims to achieve digitisation and streamlining of clinical and project documentation. It claimed to have been adopted by over 200 hospitals and pharmaceutical companies in Japan and overseas.

According to the company, its strength lies in its compliance with GxP regulatory requirements in Japan, US and European Union.

The funding will be used to boost sales and marketing in and outside of Japan, and enhance functionalities that streamline clinical and project operations using artificial intelligence.

Also Read: Southeast Asia fintech community just got a boost with ASEAN Financial Innovation Network, Bridge+, and PwC’s collaboration

Thai fashion tech startup Pomelo raises US$52M – e27

Thai fashion tech company Pomelo today announced a US$52 million Series C funding round from Central Group, Provident Growth Fund, InterVest Star SEA Growth Fund, Andre Hoffman, Toivo Annus, Lombard Private Equity, Ambient Sound Investments OU and The Luxembourg Company Deverel.

The funding round followed a US$19 million Series B that it has raised in November 2017.

With this round, Pomelo has now raised over a total of US$83 million.

The startup wants to use the funding to focus on building its technology, particularly in the implementation of big data and AI for pricing, design, and e-commerce personalisation.

Vynn Capital, OPTI Japan team up to bridge Southeast Asia-Japan investments – e27

Kuala Lumpur-based early-stage venture capital (VC) firm Vynn Capital today announced a strategic partnership with Japanese advisory and consulting firm OPTI.

The partnership aims to bridge more Japanese investments into Southeast Asian startup ecosystem as well as foster collaboration between the two ecosystems.

The partnership was made with the background of an increasing need for early-stage funding in Southeast Asia, complemented with growing interest from Japanese corporations to extend their reach to the region.

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Image Credit: Matthew Guay on Unsplash

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The Singapore-based human resource and benefits management platform is a cloud-based HR SaaS company

HReasily, a Singapore-based SaaS-enabled human resources firm, announces that it has received US$5 million funding from one of its longest client, Envy Capital.

The funding, HReasily said, will be to accelerate development, especially for its features to benefit its users.

Envy Capital, which is a part of Envy Asset Management, said that it has been using HReasily services in 2015 when its company was still a team of three. Envy Capital’s leader coined the positive improvement that the company has experienced growing into a team of 18 today is also because of HReasily’s solutions on workplace culture.

“HReasily has digitised a lot of our functions with a suite of HR management services. The system allows us to add on modules only when we need them. Looking at it in the long term, there are different solutions we can utilise as our business needs grow,” said Rhiya Lee, Envy’s deputy managing director.

HReasily provides a human-resource technology aimed for small to medium enterprises.

Also Read: Singapore’s SaaS startup HReasily raises funding to help SMEs streamline HR work process

Pascal Henry, HReasily’s CEO and co-founder, said: “We’re delighted that our end user sees us not just as a digital solution, but as a business partner.”

HReasily’s tools digitalise and automate HR processes such as implementation and employee onboarding. It also offers a capacity for personalisation, and constant additions of new modules.

Its suite covers core functions such as payroll, expense claims, time and attendance, and leave management.

Currently, the company said it has 30,000 companies on its platform, with active users in eight countries: Singapore, Malaysia, Thailand, Hong Kong, Indonesia, the Philippines, Cambodia, and Vietnam.

This year, HReasily added an Insurance component to its Staff Benefits pilot module, as well as white-label solutions. The company plans to roll out Scheduling and Employee Benefits next, with Performance Appraisal, Reporting, Onboarding and Scheduling in the pipeline for 2020.

In April 2018, HReasily raises seed funding co-led by Mazars Group (a global audit, accounting and consulting group) and New Zealand-based VC firm Zino Ventures.

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There needs to be a way to create an inclusive set of regulation that will steer the way we develop this technology into the future

There is no doubt that we see significant advances in intelligent machinery across all facets of our lives.

Great strides have been made in neural network technology where patterns are collected from large amounts of data which can be used and improved.

This means that AI can identify objects much faster and accurately and make better decisions without any interference from humans. A great example of this would be self-driving cars.

It raises the question of how this new set of rules will be played out across all segments of our society and in the legal frameworks that we currently have in existence.

Can AI truly make better decisions than humans?

We have case studies today of hospitals refusing to operate on a critically dying patient because they could not get the consent from the right party.

In other words, there is rigidity in the way contracts manage our current lives due to the potential consequences of breaking that contract. That is where we are now as a civil society.

Now, imagine a situation where we know that a person needs medical attention but due to a structured set of algorithms set within a program, there is no permission to allow it. Or a self-driving car that needs to break a road rule in order to avoid a dangerous collision.

To what extent are algorithms able to discern discriminatory patterns as well as humans? And more importantly, how will the courts handle these sorts of cases?

Also Read: An encrypted affair: messaging apps are becoming an important tool for cryptocurrency adoption

What is even more interesting is how the law will treat the layperson, who had no direct involvement in the coding or development of these technologies in the first place, but it was their input (of their own data) which impacted the final decision which set forth the action.

Should they be responsible for the consequence of AI’s decision given by individuals themselves even though they did not code the algorithm that determines its decision-making process? Are the biases that AI generates as a result of our own data our own fault or the fault of the algorithms? These are obviously interesting questions that we, as stewards of the next generation of technology, must seriously consider.

I think one of the issues closest to the heart is whether AI will eliminate or determine my personal choice. As a centre left-liberal, I would be a bit worried if I lost my freedom of choice, and even worse, losing my personal choice and not realizing it.

But of course, our personal choices are largely subjective and as a best-selling author, Daniel Ariely would argue, we are, in any case, predictably irrational.

Could AI actually improve our decision-making process and make our lives more meaningful or would it make us even more polarised than ever before? Let’s take a look at both sides of the equation below.

Potential benefits

AI could potentially make our decisions less subjective. For example, it can create greater efficiencies in any given system. A good example might be the use of energy. It can determine what actions would create the best use of energy by calculating energy peaks, best use case and so on.

It can also determine how best to spend our wealth (in itself also another form of energy) and can be objective in determining the way we spend since spending can become very much an emotional exercise.

Also Read: How I started a US$1K/M side hustle selling slim paper wallets from rural Japan

It can also be a potential benefit by harnessing the collective experience of many in order to determine the best result for any particular action. A bit like garnering advice from a hundred wise elders who have been there and done that, using historical data of previous judgments and decisions.

Potential bad consequences

A bit like a social experiment gone wrong, AI also has the potential of creating some pretty scary dystopia-like scenarios. Like in the episode of Netflix’s Black Mirror where all relationships were based on an algorithm, we risk creating societies so rigid in its application that it loses its touch of humanity.

Sound familiar?

This kind of social engineering might some of the fictional stuff today, but it could very well become reality if we don’t have discussions about the role of AI across all aspects of society in the future. There are many more potential disasters.

For example, gerrymandering may become even easier. Just look at the Cambridge Analytica scandal and how data can be used to influence voting results.

Imagine if AI takes this even further and it somehow manipulates to make a certain segment of people “choose” to buy houses in a certain area. Or having our choices in say fashion or art narrowed to what algorithms choose for us based on our previous choices and therefore eliminating the potential to open our minds to other kinds of creative experiences.

All of this could have the potential to make future generations a narrower, less multi-faceted, dare I say, less tolerant individuals.

The social responsibility of developers of AI technology

As the developers and guardians of this new technological revolution, we must keep these issues in mind. We know we cannot stop it and I don’t really see any reason why we should stifle its advancement in any case.

But we must ensure that this technology is used for the advancement of humanity, in creating a more inclusive world that emphasises our commonality rather than our differences.

AI has the potential to make our lives that much richer and give us more time to focus on more important things in life rather than “working just to make a living”.

Also Read: The raging Amazon forest fires: Why businesses need to step up for climate change

It is a chance for us to redesign the paradigm of our very existence as we know it with a focus on creating synergies rather than competition. In the words of R. Buckminster Fuller, “we can operate our planet in such a manner as to support and accommodate all humanity at a substantially more advanced standard of living than any humans have ever experienced”.

As technologists and participants working in its development, we have an important role to play in setting the right foundation for the advancement and development of future protocols.

In our interconnected world, this will obviously require a multi-stakeholder, global effort so that we can ensure its direction does not fall in the hands of those who wish to take advantage of it for selfish means. We find the opportunity once again to ensure that we develop this technology for the better evolution of humanity.

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Image Credit: Annie Spratt

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With all the hurdles that keep startups from truly flourishing, NTT Startup Challenge is here to help pave the way

In Indonesia’s bustling capital, the local startup ecosystem has been making strides to challenge dominant global startup hubs like Silicon Valley and Beijing. Not only that, but according to e27’s annual report that studied the funding pattern of 847 Indonesian startups in 2018, these startups have procured an average deal size of US$88 million for each one—comprising 38 different verticals including healthtech, fintech, and e-commerce in what can only be described as a microcosm of the larger Asia Pacific’s flourishing startup ecosystem.

Indonesia isn’t alone in this recent boom. Neighboring country Malaysia now also finds itself in an optimistic position, having seen the emergence of thousands of new startups across different tech verticals according to the same annual report. More importantly, notable government-led efforts through Malaysia Digital Economy Corporation (MDEC) have been documented to provide new schemes for young ventures, including their partnership with 9 Digital Transformation Labs to empower more Malaysian businesses to go digital.

Countries like Thailand, Vietnam, and the Philippines have also propelled leaps and bounds in their own respective ecosystems, ultimately impacting the region’s overall performance. These strides cover tech ventures in multiple areas such as AI, fintech, e-commerce, Big Data, and many others.

What does this say about the region? It means much can be expected from such momentum, especially when aided by multifaceted support enabled across all fronts.

Challenges in Asia’s startup scene

It’s no secret that Asia has become an increasingly attractive space to explore and scale various tech solutions. However, this doesn’t render the region immune to certain challenges.

The primary obstacle holding back Asia is understanding local behaviour. Being comprised of multiple countries with different sociopolitical frameworks, different cultural backgrounds, and different consumer behaviours, startups emerging from the region best equip themselves with a solid support system in order to truly flourish.

One important thing that has to be considered is that with the context and geography of Asia, it is important for startups to scale beyond their home countries. In doing so, factors like different languages and different currencies become imperative variables to consider. When a startup isn’t equipped with ample capital, advanced tech, or the right connections, companies are held back from taking those necessary steps.

To combat such obstacles, startups primarily need three key forms of support: funding opportunities, access to networks, and quality technological infrastructures. These three ingredients, when peppered with proper business insights and guidance from reputable industry thought leaders, make for a formidable recipe for success.

Last July, Indonesian ride-hailing company Go-Jek announced new investments from three large companies under Japan’s Mitsubishi group, giving them stronger leverage in the competitive ride-hailing scene in the Southeast Asian Market.

Meanwhile, only last year, Singapore-based ride-hailing company Grab entered into US$1 billion partnership with Japanese carmaker Toyota opening up excellent opportunities for Grab driver-partners particularly in countries like the Philippines.

Singapore-based marketplace, Carousell, also launched its mobile payment service, Caroupay, through an integrated payment system developed in partnership with three key finance players: DBS, Stripe, and Visa. These are only a few examples of Asian startups successfully collaborating with global enterprises to solve certain obstacles.

How NTT Startup Challenge solves obstacles in a unique way

With the goal of supporting startup ecosystems in Asia and scale or leverage startup businesses through forming an alliance with NTT Ltd., the NTT Startup Challenge is a platform that provides opportunities for funding, access to NTT and partners’ investor network, and access to quality technological infrastructure.

NTT Ltd. is a leading global technology services company under NTT Incorporated (NTT Inc). They partner with organizations around the world to shape and achieve outcomes through intelligent technology solutions.

NTT Startup Challenge programme founder Yasunori Kinebuchi said, “NTT Ltd. welcomes a wide variety of applicants from seed and early-stage startups to series A concentrating on Big Data, AI, Fintech, Sharing Economy, and others.”

Startups that apply for the programme get to participate in a series of activities that include pitching sessions, matching events, and networking.

When asked what makes this startup challenge special, Kinebuchi quipped “As NTT Ltd. doesn’t seek an opportunity for investment at this program, the ecosystem can be formed without conflict of interest with various investors. For example, the judges and partners include local venture capital investors (VC), business accelerators, and Southeast Asian mega-VCs like KK fund and Gree Ventures, among others. We provide investors with immediate access to Asian startups in their early stages.”

He further said, “It has therefore received strong support from governments. Since startups tend to be highly susceptible to government regulations, collaboration with government agencies in host countries is essential. NTT Ltd. already has a strong relationship with government bodies in several countries within Asia such as in Indonesia (Ministry of Industry & Creative Economy Agency), in Malaysia (MDEC, MaGIC, and Cyberview) and in Vietnam (Saigon Innovation Hub).”

Perks of joining the NTT Startup Challenge

As with most programmes, the NTT Startup Challenge comes with a plethora of perks that startups across Asia could really benefit from. Of all these perks, the three overarching ones are as follows:

1.) Providing competition rewards such as IT infrastructure, support and management, access to NTT Group’s customer base, and access to Southeast Asian mega-VCs like KK fund, Gree Ventures as well as local VCs for startups.

2.) Encouraging enterprises to enter markets in Asia smoothly and to access and collaborate with other Asian startups’ innovative ideas and unique technologies.

3.) Providing investors with immediate access to Asian startups in their early stages.
Kinebuchi stressed the mutually beneficial nature of establishing networks and partnerships in the NTT Startup Challenge. Other than prizes that are valued at a total of US$10,000, finalists are invited at a matching event in which they will be introduced to potential business partners for innovation.

The event puts premium on the fact that a startup needs not only funding, but also IT infrastructure, organizational and technical knowledge, and a global customer base. On the other hand, global enterprises require innovative solutions tailored to local needs in terms of culture, government regulation, and local market. At the end of the day, engaging with global enterprises is essential for startups to grow rapidly.

Cultivating Asia’s startup ecosystem

During the startup challenge’s earlier edition, each country’s top-three startups of 2018 were invited to Japan in March 2019 for a showcase event aiming to connect Japanese enterprises, investors, and startups with Asian startups. This was done in order to promote Asian startups’ entry into the Japanese market as well as Japanese companies’ entry to Asia.

There are multiple success stories shaped by the NTT Startup Challenge in the past, with some startups procuring funding worth US$500,000 due to media exposure garnered after the competition, while others enjoy engagements with private investors in Japan, as well as startup planning to establish joint ventures with Japanese global company introduced by NTT.

With all the possibilities listed above, we can expect Asian startups to further cultivate their ideas and render them into reality with the help of NTT Startup Challenge. By bridging the gaps and overturning the hurdles that keep startups from flourishing, we only further enrich the booming momentum that Asia now experiences.

If you’re a startup based in Asia looking to explore these possibilities, the NTT Startup Challenge is accepting applications here. For more information about the event, you may visit their official website.

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The selected startups must have raised seed capital and serve the ​UN Sustainable Development Goals

The United Nations Development Programme in Indonesia announced that it has teamed up with the Silicon Valley venture capital seed fund and accelerator ​500 Startups​ to launch ImpactAim Indonesia. The move seeks to boost the development of social entrepreneurship and startups in Indonesia, which is considered to be a growing economic hub in Southeast Asia.

ImpactAim Indonesia will conduct a nationwide selection process to recruit between 8 to 10 startups. The requirements for startups to be selected include having raised seed capital or more, serving customers, and serving the ​UN Sustainable Development Goals​.

The accelerator is said to focus on providing guidance on impact measurement, tailored business, and impact acceleration assistance. The startups then will be showcased to prospective impact investors from around the world.

The program itself will take place in Jakarta, with no fee or equity from participating startups, and will run for 10 weeks.

“Imagine a world where tech unicorns and venture capitalists tackle the UN Sustainable Development Goals. It’s already happening, and we’re honored to be working with UNDP Indonesia to accelerate this,” said Khailee Ng, Managing Partner of 500 Startups.

Also Read: MaGIC, UN launch bootcamp for youth-led startups, social enterprises in Malaysia

According to the 2018 Survey of Entrepreneurs and MSMEs in Indonesia by the Asia Pacific Foundation of Canada, 99 per cent of the country’s businesses comprise of the micro, small, and medium enterprises (MSMEs). MSMEs are the key driving force of Indonesia’s economy and contributing 60 per cent of GDP.

Resident Representative of UNDP in Indonesia, Christophe Bahuet emphasised that the new initiative is part of UNDP’s role in championing innovation for the Sustainable Development Goals (SDGs).

“We hope that the partnerships will open doors for many small enterprises, particularly in Indonesia’s most disadvantaged regions,” said Bahuet.

ImpactAIM was first launched by UNDP in Armenia in 2017; similar initiatives are under development in several countries of Asia and Eastern Europe. UNDP also works on SDG impact-oriented accelerators for established and mature companies.
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