Year: 2019

 

Bitcoin as a symptom 

As it rose to popularity, many experts predicted that it would become the go-to solution for remittances, especially in Southeast Asian markets like the Philippines, which have high overseas working populations. 

Bitcoin – the pundits suggested – would allow overseas Filipinos to send their remittances more affordably than traditional wire transfer services like Western Union. Even companies that traded Bitcoin, such as Coins.ph and Satoshi Citadel Industries, communicated the expectation that remittances would be a major use case. 

Several years later, Bitcoin has indeed taken off in a big way in the Philippines and other neighbouring ASEAN markets, but not for the reason most anticipated. The money corridors of giants like Western Union have largely remained unscathed. Instead of sending remittances via Bitcoin, Filipinos have taken to the cryptocurrency as a form of investment, trying to profit off as a speculative tool.

Also Read: A layman’s guide on how bitcoin is aiming to transform the global economy

What should be interesting to note is that such Filipinos are not necessarily interested in Bitcoin itself – they hold no ideological affinity for the decentralization of money, or other similar ideals usually associated with the earliest adopters of the coin. These Filipinos simply lacked access to investment instruments, and Bitcoin – by its sheer ubiquity in tech and business media – happened to be the easiest to invest in. If the financial exclusion is a problem, so, too, is investment exclusion: People have no channels to make their money grow.

That’s why the rise of digital investment channels is so important for a country like the Philippines. The fin-techs who provide mobile wallets, including PayMaya, GCash, Coins.ph, and Rebit, now count millions of users between them. Now that Filipinos have the means to store value, they also need to be given channels to increase this value. On this front, there are many promising local and global companies accomplishing just this task.

Next-generation investment platforms

The local startups in the Philippines addressing the need for more investment channels are as much impact- as profit-oriented. And within the broad impact of helping people in need of money, people can further segment by their own particular interests. 

If you’re passionate about helping students, you can extend a loan to students via InvestED. This loan will help with a variety of academic-related expenses, such as their tuition, dorm fees, daily allowances, or school needs like their laptop. In return, you as a peer lender get 6 to 12% per annum on their investment.

If you care more about rural communities, on the other hand, you can invest in a platform like Cropital. The platform connects peer lenders with farmers, who use the capital to scale up or modernize their farms in some way. There then becomes three way value creation: the crops grow, the farm’s business grows, and the investor’s investment grows.

Founded in Israel, global social trading platform eToro has become very popular in Southeast Asia, the Philippines included. The company has pioneered copy trading, which makes it easier for new or busy investors to invest in the stock markets by allowing them to automatically copy the future trades of a trader who matches their risk appetite and other preferences.

eToro also notably has numerous CopyPortfolios that allow investors to copy thematic portfolios, one of which is a 5G portfolio that gathers 45 companies integral to the global rollout of 5G mobile network.

These include tech manufacturers like Intel and Hewlett-Packard as well as telcos like AT&T, Telenor, and China Telecom, which launched the third telco in the Philippines with Mislatel Corp. Filipinos, in short, will be able to invest in the companies indirectly and directly responsible for one day deploying 5G where they live and work.

Also Read: 5 legal mistakes startups make after inception and how you can avoid them

That InvestED, Cropital, and eToro allows Filipinos to invest in the development of their own communities – be it through human capital or technology infrastructure – should be noteworthy for every founder in Southeast Asia.

One, Filipinos want access to financial instruments that allow them to grow their money, in a way that makes sense for them. People don’t want to be pigeon-holed into investing in whatever financial trend is currently dominating the headlines, but have genuine options available to them, each of which they can carefully consider through transparent terms.

Furthermore, given the choice between investing in an abstract commodity and one that has a direct impact on their community, Filipinos will almost always pick the latter. It’s an easy choice. Why just earn money when you can do so while also helping your less fortunate neighbours or building your community’s tech infrastructure?

Founders across the Asia Pacific need to think of ways they can similarly create value for multiple stakeholders, spread across people or organizations in need of capital and those who have it to lend or invest. If they achieve this goal, founders will have something even more valuable than the oft-cited platform or marketplace that they say they want – they’ll have genuine community.

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Now that the shock wave is over, it is time to start talking about what is next.

The Southeast Asian startup ecosystem started the week with a bang when gojek CEO and co-founder Nadiem Makarim showed up at Merdeka Palace on Monday and announced his resignation to join President Joko Widodo’s new cabinet.

Two days later, the entrepreneur’s new designation at the cabinet was revealed: He is to be the new Minister of Education and Culture.

The internet went crazy. On Twitter, there were at least 35,000 tweets with the keyword Mendikbud (“minister of education and culture”) by the time is feature was written. Discussions about Makarim’s new designation were also frequent in various Telegram groups.

Many of the discussions centred around whether Makarim is the right person for the job, considering his lack of background in education and culture. This discussion can go on for days, so here I would like to focus more on what his appointment meant for the startup ecosystem –in Indonesia and Southeast Asia.

What is the message that Makarim’s appointment is sending out to us, the startup ecosystem in Southeast Asia?

The message is that: We matter.

Also Read: [Updated] Breaking: Nadiem Makarim named Minister of Education and Culture of Indonesia

Startups used to be all about college dropouts tinkering in their’s parents garage, trying to come out with something groundbreaking. Five to ten years ago, if you tell your kaypoh aunties that you are a startup founder, at best they are going to arch their eyebrows before gossiping with fellow kaypoh aunties (“Kids these days …”). 

But as companies reached billions of dollars in valuation, as their names become a household brand, their founders may start to gain a voice beyond their community.

Once their achievements are acknowledged, the society will start looking up to these founders. They want to find out about their secret sauce: How they are doing this, how they are solving problems. Their insights and opinions will be heard once these founders reach a particular level in their career.

Even better: Everybody will expect the chef to cook his secret sauce for them. The big institution suddenly wants you to be part of the team so that you can help them improve things there.

It seems only fitting that next big move for a startup founder is to enter politics. In light of Makarim’s appointment, some had joked about becoming a minister as the next exit path for a founder. But there is some truth to the statement.

Startup founders entering politics is more than just a matter of a startup having a friend in high places. Though honestly, any startup can benefit from such a thing. Including gojek itself.

It is all about making a greater disruption, a more significant impact on society. No matter where you live, the public sector is always in need of disruption. And who is better to do that than startup founders? The very people with innovation in mind?

Also Read: Following Nadiem Makarim’s resignation, gojek names new leaders

Interestingly, Indonesia is not the only phenomenon where this has happened.

In the US, you may have been following the moves of Democrat presidential candidate Andrew Yang, who had a strong background in the startup community before his involvement in politics.

Much closer to home, we have also seen Pakornwut Udompipatskul, the former managing partner at StockRadars, who had won a local election in Thailand and is leaving the company to become an MP.

In Malaysia, three startup founders have also been appointed to the National Economic Action Council (NEAC). According to a Vulcan Post report, their presence in the council is to “provide insight on issues related to the cost of living, employment, poverty and homeownership.”

Of course, this does not mean that we want everybody to leave their company ASAP and start a campaign to become an MP. Really, the last thing we need is people who entered public service because it seems cool to do so.

But if you are a startup founder and public service is your calling, then remember that you have something unique to bring to the table. Beyond your understanding of how design sprint works or how to set up an OKR, you are coming with a mission: To never accept the status quo.

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Image Credit: Wahyu Putro A., Antara Foto

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Tax filing can be one of the most cumbersome activities for startups. That is why you hire a tax professional so he or she can handle all the tax-related tasks and you do not have to get your hands dirty.

Here are some pointers that will help you choose the right tax preparer for your business.

1. Expertise

As a startup owner, you often tend to take tax filing lightly and do not give much attention to hiring a tax professional. However, you should make sure to hire an experienced tax preparer. An experienced tax professional knows the ins and outs of the tax filing process and can get you the maximum tax relaxation.

It does not mean that the novice tax preparers are not capable of taking care of your taxes. However, if you are hiring a tax professional, why not hire an experienced one?

2. Qualification

When an individual holds the responsibility of filing your taxes, you are obligated to know his or her qualification. However, you should not be overwhelmed if the tax preparer holds a bunch of designations under his/ her name.

The tax professionals have different qualifications depending on the services they offer or the examinations they have passed. You should analysis the tax requirements of your startup and select the tax professional accordingly.

Also Read: Indonesias tax management startup OnlinePajak raises US$25M led by Warburg Pincus

Here are some professionals who offer tax-based services-

1. CPA – A Certified Public Accountant (CPA) are individuals that are responsible for managing the finances of customers, including transaction and taxes. A CPA can be specialized in taxes; however, it is not necessary.

2. Enrolled Agent (EA) – Startups can hire Enrolled Agents if they need to be represented in front of the IRS. An individual can become Enrolled Agent by passing an exam or by working in the IRS for a minimum of five years. IRS does not put any limitations on the practice right of EAs, which means that they can handle all tax matters.

3. Certified Financial Planner (CFP) – The CFPs offer financial planning to startups on insurance scenario, future investments, cost optimization, and long-term tax strategy. Hence, startups can hire a Certified Financial Planner if they are planning for the future. However, not all CFPs offer tax services. Therefore, you should ask the CFPs about their list of services before hiring one.

4. Accredited Tax Preparers (ATP) – The Accredited Tax Preparers (ATPs) and Accredited Tax Advisor (ATAs) is a credential provided by the Accreditation Council for Accountancy and Taxation (ACAT) to individuals that pass the respective exams. These credentials ensure that the individuals are well-versed to handle all your tax-related issues.

3. PTIN

A PTIN (Preparer Tax Identification Number) is a pin used by the IRS to identify the tax preparers. All enrolled agents, as well as the tax professionals that are involved in filing taxes, should get a PTIN as it is required to be filled in the tax forms. However, some tax forms do not require PTIN.

Hence, it is essential for every entrepreneur to check for the PTIN before hiring a tax preparer, so you do not have to suffer while filing taxes.

4. Type of tax

Hiring a tax preparer also depends on the type of tax you want to file for your startup. There are some tax preparers who are proficient in filing federal taxes but are not aware of the local taxes of your state and vice-versa.

Hence, you should hire a tax professional who can file both federal and state taxes, taking the burden of tax filing off your shoulders.

5. Fees

There is an ocean of tax professionals out there. However, like all other aspects of your business, you want someone who asks for a reasonable fee for filing taxes.

Also Read: How will Goods and Services Tax (GST) affect businesses in India?

The fee asked by different professionals can vary on many accounts. They can be anything from the number of forms filled to the size of your business. However, if they guarantee a refund larger than others, do not get lured into the offer. They might be using illegal methods to get you that refund.

6. Technology  

According to the IRS, in 2019 filing season, the total e-filing was estimated to be 127,939,000 of which 71,725,000 were filed by tax professionals. These large numbers indicate that a majority of them prefer to file their taxes online.

Hence, you should hire someone who is tech-savvy and prefers e-filing of taxes.

Moreover, the tax preparer should also make use of advanced solutions such as cloud-hosted tax software available in the market to reduce manual errors.

Tax filing should be hassle-free

Tax filing should be the least of concerns of any startup. They should be able to focus their time and energy on core processes for future growth. Hence, it is necessary to hire a tax professional that will take care of all tax issues, not just filing.

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Zelia Leong left her full-time job at the luxury hospitality sector in 2015 and bought a one-way flight ticket to Scandinavia. The tour, however, was prolonged and she ended up travelling around Europe.

Following local recommendations, she went to places that she didn’t even know existed. She hopped on the cheapest bus or train to the next city or country, and along the way, made a few new friends.

“When I returned home, I realised that travel is all about having new experiences, understanding more about yourself and the world,” she tells e27 recounting her story. “It is also about the memories made along the way in the little moments.”

“I did not remember the landmarks I visited, the tourist spots I took photos of or the things I bought. Instead, all I cherished after the trip was the people I met and the meaningful connections I made. That’s what makes travel special and unique for a lifetime,” she adds.

This unique travel experience brought the best out of Leong and kindled her entrepreneurial spirit.

And Anywhr took birth.

Based in Singapore, Anywhr is a bespoke travel curator, which plans your journeys to lesser-known places worldwide, personalised for you. “Anywhr was started to help people explore and experience more of the world, even in less common places they did not expect to visit,” according to Leong.

Also Read: 6 key things to consider while hiring an individual to handle tax for your startup

In other words, Anywhr takes the hassle out of planning and preparing for great trips. It uses information about your preferences and personality to curate a trip experience.

“Take a personality quiz, share your travel preferences with us, and we will plan and book a trip just for you. We specialise in lesser-known places away from mainstream tourist spots,” says Leong, who along with Felix Tan, started the company in 2016.

Leong adds that Anywhr not just plans and books flights and accommodation for the customer, but also takes care of logistics such as transfers and visas. The firm has 24-hour customer support on standby. Besides, it also provides travel insurance.

The company targets anyone who wants to go on a holiday but has no idea where to go or doesn’t want to plan. Customers include solo female travellers, groups of family and friends, and also romantic honeymoon couples.

“We help you go on a great holiday that’s planned according to your personal preferences. You just have to sit back and enjoy your trip,” Leong tells e27.

Sharing an experience with a customer, Leong says: “We planned a 10-day European honeymoon trip for a couple departing from Singapore, and they visited unique places like Bohemian-Switzerland and Krakow. We also recommended nice restaurants and sent them a packing-list to ensure they have the right outfits for those Instagram photos,” Leong shares.

Currently, she claims, Anywhr has customers from more than 25 cities worldwide, such as New York, San Francisco, London, Berlin, Amsterdam, Singapore, Sydney, and Hong Kong.

Partnerships

To facilitate the services, the startup has forged a partnership with a few major airlines and accommodation providers. Also, it has integrated with travel technology firm Amadeus, who works with airlines, hotels, and travel agencies world over.

“This helps us get special pricings from partners and in turn, give the value back to our travellers. Our airline partners work with us to promote new and less common destinations,” she elaborates.

Also Read: Leveraging technology to transform the way we feel, travel, and eat

Anywhr also charges a standard service and processing fee, such as for credit card payment processing, from customers.

The company wants to explore new markets across the world to cater to a larger audience base. “The launch of our new website in September this year saw a spike in bookings coming from cities such as San Francisco, New York, and London. We are exploring growth opportunities in those new markets,” she adds.

Along its journey, Anywhr also managed to rope in some investors to back its ambitious plans to go global. They include Hustle Fund, Found Ventures and angels like Royston Tay and Kwok Yang Bin (both co-founders of Zopim).

“The beauty of building a startup is in growing it well despite the odds, and having a great team behind it makes all the difference. And I’m happy that we have that and a great ecosystem of friends, investors, and community supporting and helping us through the journey,” she concludes.

(Disclaimer: e27‘s Co-founder and CEO Mohan Belani is an investor in Anywhr).

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Japan-based Digital Wallet Corporation acquires Speed Money Transfer Philippines, rebranding as Digital Wallet Philippines [DealStreetAsia]

Digital Wallet Corporation (DWC), a Japan-based fintech company, announces that it has acquired remittance and foreign exchange firm Speed Money Transfer Philippines (SMTP) for an undisclosed amount.

SMTP operates in the Philippines and Australia, and following the acquisition will be renamed as Digital Wallet Philippines. The report by DealStreetAsia said that the deal and the name change have been approved by the country’s central bank, the Bangko Sentral ng Pilipinas (BSP).

With the Philippines placing fourth as the highest remittance recipient globally in 2018 at US$34 billion (according to the World Bank), the acquisition is timely. Eiji Miyakawa, Founder and Chief Executive Officer of DWC said the company’s Philippines business aims to allow unbanked customers to benefit from financial services such as remittance, foreign exchange, and payments through their mobile devices.

“The Philippines acquisition is the first step in DWC’s global expansion strategy to deploy our mobile wallet services, Smiles Mobile Remittance (Smiles), to Asia and Europe,” Miyakawa added.

Doctor Anywhere joins forces with ViettelPay, providing online healthcare services in Vietnam [MobiHealthNews]

Singapore-headquartered telehealth startup Doctor Anywhere has joined forces with ViettelPay, a part of Vietnam’s mobile carrier Viettel, in signing a strategic cooperation agreement to bring a full suite of online healthcare services to ViettelPay’s registered users throughout Vietnam.

Following the agreement, ViettelPay’s customers will be allowed to connect to Doctor Anywhere’s virtual clinic and consult a locally registered doctor, as well as access a range of wellness services directly on the ViettelPay App, as reported by MobiHealthNews.

Also Read: Doctor Anywhere raises US$4.1M to offer patients easy access to healthcare providers through video consultations

Doctor Anywhere continues its expansion plan in Vietnam with its latest strategic cooperation with ViettelPay after the startup signed a Strategic Cooperation Agreement with Bao Minh Insurance, one of the largest insurance groups in Vietnam back in September.

Meet the AR startup that has attracted celebs of Katy Perry’s caliber [Forbes]

Sandbox VR, a free roam location-based entertainment venue, announces that it has received US$11 million round of financing from notable celebrities such as Katy Perry, led by a16z and Craft Ventures, founded in 2017 by David O. Sacks and Bill Lee and backers of Oculus, AirBnb, Lyft, Pinterest, and Slack.

Sandbox VR puts up to eight players wearing backpack PCs and VR headsets literally inside the game together. It was founded by game developer Steve Zhao.

Prior to this funding, Sandbox VR secured a whopping US$68 million from Andressen Horowitz, The celebrity presence was rounded out by actors Will Smith, Orlando Bloom, athletes Kevin Durant, and Honda Keisuke, and former superagent, and CAA co-founder, Michel Ovitz.

Also Read: RedDoorz makes US$70M first close of Series C round, to launch tech hub in Vietnam

As reported by Forbes, the company is currently in the process of an expansive rollout across the U.S. with a location recently opened in Los Angeles, and is coming soon to New York, Austin, San Diego, and Chicago with a total of 16 total locations planned by the end of 2019, and fifty by the end of 2020.

RedDoorz is looking at IPO by 2022, stating a logical way to get funded [Business World Online]

Hotel management and booking platform RedDoorz is reportedly contemplating an initial public offering (IPO) in the country by 2022, Business World Online has learned.

“I think, overall, the business goal of RedDoorz is to conduct an IPO. By 2022 or 2023, we should be on our way to creating our business which is publicly listed. That is the general vision,” said RedDoorz founder and chief executive officer Amit Saberwal.

He added that the company targets to earn US$500 million by 2020. By December, Saberwal said RedDoorz will be earning approximately $200 million.

RedDoorz announced last August that it closed US$70 million for the first part of its Series C funding, with participation from growth equity firm Asia Partners, Rakuten Capital, and Mirae Asset-Naver Asia Growth Fund, adding to its existing investors Qiming Venture Partners and International Finance Corporation.
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Japanese consumer finance company Credit Saison today announced the launch of its corporate venture capital (CVC) arm Saison Capital, that is set to invest up to US$55 million to early-stage startups in India and Southeast Asia.

The fund already made an investment in Indonesian P2P lending platform KoinWorks.

It expects to invest in six to eight companies every year with initial ticket sizes of up to US$1 million.

Prior to the launch of the CVC arm, Credit Saison had invested in leading names in Southeast Asian startup ecosystem such as Grab and Shopback.

It has also been a limited partner in various funds such as Cyberagent Ventures, East Ventures, Gree Ventures and Beenext.

Also Read: ShopBack raises US$25M funding round led by Japan’s Credit Saison

In a press statement, Credit Saison explained that Saison Capital will invest in founders building ecosystems that have the potential to distribute financial services to the underbanked, though they also have a mandate to invest in a wide variety of verticals outside fintech.

“The establishment of Saison Capital is Credit Saison’s latest commitment to its international expansion and the constant innovation and modernisation of its operations and product offering. We can be a long-term growth partner for some of the world’s most exciting startups, supporting their internationalisation and scaling up. We are taking these startups to the next level, from seed to Series A, B, and beyond,” said Kosuke Mori, Managing Partner at Saison Capital.

Saison Capital also stated that its portfolio companies will have access to Credit Saison’s network of experts and partners, which included a joint venture with HCM Development Bank in Vietnam and Grab.

“Our unique value proposition is our strong institutional knowledge of the financing space, the investment team’s tech backgrounds, and the speed of our conviction. We move quickly and have an independent decision making process from Credit Saison,” said Chris Sirisereepaph, Partner at Saison Capital.

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Image Credit: rupixen on Unsplash

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Following the resignation of Nadiem Makarim as gojek CEO to join President Joko Widodo’s cabinet, on Monday gojek has announced the appointment of Co-Founder Kevin Aluwi and Group President Andre Sulistyo as Co-CEOs.

In addition to that, the company today announced the appointment of gojek commissioner Garibaldi Thohir as President Commissioner to lead the company’s non-executive board.

It also stated that Makarim will no longer retain any executive or advisory role in the company.

In a statement, the Co-CEOs explained that while Sulistyo is going to focus on corporate functions and management of capital allocation, international expansion as well as payments and financial services, Aluwi will focus on the product development, marketing, organisational development and the transportation and food delivery businesses.

“We would like to conclude by thanking the government of Indonesia for recognising the significance our business has had on society. We will respect the process the Palace has set out by not going into too much detail before tomorrow’s inauguration. We would also like to wish Nadiem the very best of luck as he embarks on this very important mission,” they wrote.

Also Read: Indonesian edtech startup Zenius reportedly raised US$20M from Northstar Group, onboarding ex-gojek COO as its new CEO

Who’s who

As a co-founder of gojek, Aluwi is said to have held significant leadership roles across product and functional teams within the organisation.

He has used his background in Business Intelligence to pioneer the use of data for decision-making across the business. He has also assembled deep technology expertise across the data, engineering and product teams, with a focus on enhancing the platform’s overall user experience.

Prior to his role at Gojek, he spent time at Zalora Indonesia, Merah Putih Incubator, and Salem Partners.

Meanwhile, Sulistyo has overseen over US$4 billion of the company’s fundraising, which attracted key investors such as Google, Tencent, Astra, KKR and Warburg Pincus. He has also laid the foundation for the company’s business strategy for long term sustainability.

Prior to joining Gojek, Andre was an Executive Director at private equity fund Northstar Group and was previously the Head of Corporate Finance at Delta Dunia Makmur.

gojek stated that it now has over two million driver-partners across Southeast Asia and over 400,000 merchants, all of whom together process over two billion transactions annually.

Also Read: Indonesian small lender bank Artos says no tie-up with gojek, focussing on going digital

Entering the new era

Indonesia’s President Joko Widodo has been inaugurated for his second term on Sunday, in which he had promised to reveal candidates for his new cabinet the next day.

On Monday, several leading public figures, including chief justice Mahfud MD, have been seen entering the Merdeka Palace, leading to speculation of their possible appointment as ministers.

Makarim was one of the public figures who was invited by the President to the Palace. Speaking to the press during the event, the startup founder then announced his resignation from gojek to accept a position in the cabinet.

Details about the new cabinet, including Makarim’s new designation, is expected to be announced on Wednesday.

The appointment of Makarim into the cabinet is seen as part of President Joko Widodo’s effort to elevate the country’s digital economy into new heights, as part of a recognition of the impact that tech innovation has to the society.

Rumours of the appointment of an Indonesian startup founder as minister had circulated for months, prior to the announcement on Monday.

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Image Credit: gojek

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Driving is not so much about trying to open up on the expressway as it is about the experience while driving— listening to music, holding a meeting, or catching up on current events.

Technology is taking more of the judgment work out of operating a motor vehicle and letting people go on autopilot. And that means automakers need to focus on the experience as much as the mechanics.

Digitally-enabled ride-hailing is set to become a key driver of growth and profitability in tomorrow’s auto markets, far outstripping the profitability potential of traditional car-selling to buyers.

Also read: Is Southeast Asia ready for cannabis startups?

And car owners increasingly are seeking vehicles with a lower carbon footprint such as electric vehicles, or EVs—when they do decide to buy cars instead of simply using ride-sharing services.

Taken together, these trends—autonomous driving, connectivity, electrification, and the sharing economy—are fuelling a huge potential market for mobility services, appealing to the gradual shift away from “vehicle ownership”.

Accenture research shows that by 2030, globally traditional automotive sales will grow marginally to USD$2.2 trillion. In contrast, revenues from mobility services will soar to over half of that at $1.3 trillion during the same period.

Many new services will come from businesses that are pushing forward into this exploding market, challenging the automotive incumbent with creative, user-centric solutions. One example is Puppy Auto, which design affairs, part of Accenture Industry X.0, will demonstrate at the Industrial Transformation Asia-Pacific (ITAP) this week.

Using technology from a Massachusetts Institute of Technology spin-off, this autonomous electric vehicle allows real estate developers and home sellers to offer transportation-as-a-service to residents of large gated compounds found in Chinese cities. Residents can use the vehicle to cover the last mile from their doorsteps to the gate—and vice versa.

Next-generation mobility service like this will ultimately change the auto manufacturing work in Asia-Pacific. Assembly plants from Thailand to Japan will still be building cars, but they may have opportunities to become the producers of new components, as well.

It should also impact the thinking of the national car makers who are trying to enter the market with low-cost niche cars. From Vinfast, a subsidiary of Vietnam’s Vingroup, which is making its first made-in-Vietnam automobile model, a combustion engine hatchback to Indonesia’s low-cost green cars or the China manufacturers looking to enter the Southeast Asian market.

All need to address the evolving expectations of customers while spurring the creative juices of entrepreneurs. In Japan, where digitizing the nation is part of its vision of “Japan 5.0” utilising sensors in industry and manufacturing is high on the agenda. Sensor technology is also increasingly a key part of self-driving cars and could be an area of focus that Japanese manufacturers seize to lead.

Also read: 4 key points to consider when scaling in Southeast Asia

Connectivity options are endless – as people drive less in their cars or their shared-vehicles they will expect to do more while commuting. The scope for inventing new services is open to all, which should be a reason for optimism in Asia-Pacific entrepreneurs who could be pitching their ideas to national and multinational auto manufacturers.

While there are new opportunities and the world is Asia’s automakers’ and entrepreneurs’ oyster – that doesn’t mean it’s easy pickings. Out of the 199 automotive companies with annual revenues in excess of USD$1 billion we studied, only a quarter are succeeding at scaling digital innovation. We call them the “Automotive Champions.” They not only have successfully scaled more than half their digital POCs, but also earned higher than average returns on their digital investment (RODI).

What sets them apart?

Automotive Champions are spending more time and money on design updates and reviews that would have looked counterproductive in the past.

Nissan, for instance, is hiring a team of engineers and scientists at its digital innovation hub in India. The goal is to innovate user experience and interfaces through the adoption of digital technologies such as AI, cognitive analytics, and machine learning.

To succeed, companies may have to leave their comfort zones and focus on new skills, platforms, technology, partnerships and different types of leadership.

What does that mean in practice? Take partnerships for instance. Regular companies continue to be wary of competition. Automotive Champions, on the other hand, partner with competitors with complementary competencies to neutralize disruptive threats from new entrants.

Toyota is one such example. In 2019, the company partnered with Chinese automotive major BYD to jointly develop electric vehicles in China. The two automakers will work together on electric sedans and SUVs, while also partnering on developing electric batteries.

These new ways of thinking about what works in the auto industry shouldn’t be viewed as hurdles. They should be seen as opportunities for executives in the Asia Pacific to go back to the drawing board and say: What can we offer that’s different?

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Join our e27 Telegram group here, or our e27 contributor Facebook page here.

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Cambodia-based Raintree, a co-working space and creative entrepreneurs hub, partners with SmallWorld Venture, a venture capital firm, to launch the first flagship co-working space of SmallWorld Realty, on the premises of the Raintree building.

The partnership, an official statement read, aims to provide support to the startup community in Cambodia.

SmallWorld Venture is an equity-based investment firm that was co-founded in 2011 by Rithy Thul with a mission to create a shared professional workspace, to facilitate business minds to “explore aspirations while transforming their ideas into reality”.

Raintree claims to be the first creative office development hub for creatives, entrepreneurs, technologists, young people, and professionals alike by providing space to collaborate through the Core (open plan office space), the Canopy (loft event space), and the Crown (open rooftop terrace). It was opened in 2016 by co-founders Zoë Ng and Cambodian architect Hok Kang.

“We felt that bringing SmallWorld and Raintree together was the perfect opportunity to catalyse further growth in the tech community. As Raintree is always on the lookout for partnerships with industry leaders, to fuel growth in the Cambodian economy,” said Ng, Managing Director of Raintree.

Also Read: Report: Cambodia saw 140 per cent rise in tech startup investment in 2018

According to Thul, SmallWorld looks to bring together tenants whose founders have some track record and are more established within the Cambodian tech community. “This is a space where entrepreneurs and founders can bring prospective investors to appraise their operations, as well as like-minded individuals and groups they want to collaborate with,” Thul added.

Tenants at Raintree in Cambodia include Microsoft, Viber, Grab, Havas Socialyse, Havas Champagne, and Saturday Kids/Coding Cats.

In the past, Raintree has been awarded the Best Office Development – Cambodia at the 2017 International Property Awards, Asia Pacific.

SmallWorld Realty will be located in the prime commercial development of Phnom Penh boasting seven private offices and 42 shared desks.
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Singapore-based data-driven venture investment platform Hatcher+ today announced the completion of the 100th investment from its H2 fund and the closing of a US$5.5 million seed funding round.

Describing the funding round as oversubscribed, Hatcher+ stated that it plans to use the investment to further develop its predictive analytics engine and business process automation platform.

“Over the past year, we’ve invested in startups at a rate of three a week, which is a fairly unprecedented rate of investment. And to date, these investments have mainly been in Australia, Europe, India, and the US,” said John Sharp, Co-Founder and Partner at Hatcher+.

“Our goal now is to aggressively expand our investment activity into China, Japan, Korea, Southeast Asia and the Middle East in partnership with leading advisory firms and co-investment partners, and to expand our deal analysis footprint through tie-ups with leading service providers to the VC industry,” he continued.

Also Read: Venture platform Hatcher+ partners with accelerator BlueChilli to co-invest in 240 global startups

Hatcher+ co-invests in early-stage startups alongside accelerators and early-stage investors such as Antler, Blue Chilli, Blue Startups, Fashion Technology Accelerator, Innova, Plug&Play, Quake Capital, Sente, Standia Ventures, and Thinqbate.

It builds a platform that includes an AI-based predictive analytics engine build from a multi-year study of over 500,000 events from the venture world. The platform also includes a business process automation platform designed to enable construction and management of large, highly-diversified venture portfolios.

“Our platform allows emerging VCs to quickly and easily access high-quality deal flow from around the world, use our advanced data analytics to build diversified portfolios, manage the portfolio and reporting, and access our network of VC investors, worldwide, for the purposes of syndication,” Sharp said.

The company said it has analysed over 10,500 business plans over the past year on behalf of dozens of accelerators and venture capital funds around the world.

Also Read: Taizo Son’s Mistletoe leads US$3.5M funding in venture investment platform Hatcher+

It is planning to raise its Series A funding round in “the near future.” Seventy per cent of the capital will be allocated towards further research and development of its platform.

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Image Credit: Hatcher+

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