Posted on

The future of startup management lies in spontaneity

startup_management

“One of the core problems with management,” says Rhys Marc Photis, the founder of the management consultancy GPi, “is [that] it manifests itself in the experiences people have gone through as employees and managers themselves.”

When a startup begins to grow, it needs to put in hierarchical levels and formalise things. When that happens, it is a very natural reaction to then say, “Oh listen, guys, I had this challenge before in a company when we had to set up a team leadership structure, let me do that” or “Here is a book that talks about formal structures”.

The problem Photis alludes to is the same one that the eminent business thinker Gary Hamel points to when he asks: “Who is managing your company?”

It seems like a simple question. “You might be tempted to answer the CEO or the executive team,” writes Hamel in his book The Future of Management.  And you would be right, but that would not be the whole truth.

Generally, often happening with global businesses, your operations are being managed currently by a lead cadre of long-departed ideologists and practitioners who formed the policies and protocols of modern management.

It is their proclamations, reverberating across the years, which invisibly develop the process your corporation allocates devices, sets accounts, distributes power, price elasticity, rewards employees, and addresses decisions.

Also Read: Afternoon News Roundup: Event management startup PouchNATION raises Series B from cinema tickets platform TIX ID

According to Karan Bilimoria, founder of Cobra Beer, eight different Ps are the fundamental basics for his business success. He listed them as product, pricing, promotion, placement, people, phinance (used for the term finance), passion, and profit.

“Nowadays, there is so much aid available for businesses; availability of beer testing and supplies; the government provides so much assistance, and there are so many organisations running today that I did not have when I started twenty-five years ago,” Bilimoria explains.

These theories maintain their allure largely because of how successful they have been. It is not hard to see why an aspirational business would want to import management practices from companies who have utilised them to a phenomenally successful effect.

But it is not that simple. As Hamel explains, like the opposite of the rules of physics, the laws of startup management are neither predestined nor persistent — and the best thing, too, for the provisions of management is now murmuring under the stress of a mass it was never intended to bear.

The fact is, says Photis, blindly copy-and-pasting from corporate environments often, in his experience, have an adverse effect on startups.

According to Photis, these problems creep in at the point of ‘letting go’; the magical point when a business gets funded or lands a big client and begins to grow rapidly.

Also Read: Malaysia’s drone-based asset management startup Aerodyne raises funding, targeting APAC expansion

“At that point, the founder has to let go a little because one person cannot simply manage the organisation anymore,” Photis says. And that is when they start to adopt concepts that are not borne from within the business.

Organisational development is not much different from personality development. If you take yourself, you do not want someone to come in and tell you how to live your life and tell you how to do things. You figure out what you want to achieve and then you start to develop your own way, and skills on how to live your life.

It should be very similar in organisations.

The pressure of on-boarding new hires and rapid scaling leads to a proclivity for pre-ordained management ideas, says Photis.

But then you run the risk of people adhering strictly to just their defined roles and responsibilities. Then you get the typical lack of ownership issue. Startups need to put people before processes.

Corporate power structures do not lend themselves to the pliability needed by startups. “Bigger corporations are frequently self-obsessed,” says Photis. “They will say the customer is the most important part of the business. But when you speak to them on the telephone, or you deal with their admin departments, then it is either you stick to their processes, or there’s no hope.”

Also Read: How to improve your startup management

This is a difficult phenomenon to counter because it does call for a measure of bravery. Frequently, employees need to be afforded the chance to engage in constructive nonconformity. And then, says Photis, when an employee or team within the business comes across great idea management needs to react to it.

“It is the pragmatism to look at market opportunities,” he says. If a team in the business has a great idea, then you shift the resources to them. But in a formal organisation you say, they do their things, we do our thing, and then at the end of the year, we’ll see where we end up.

As Hamel transcribed in the book The Future of Management, which eventually compels the performance of your company, is its management model. In a post-modern age, the ability of “spontaneous self-renewal” is not just a nice-to-have – it’s a necessity.

Editor’s note: e27 aims to foster thought leadership by publishing contributions from the community. Become a thought leader in the community and share your opinions or ideas and earn a byline by submitting a post. We are discussing inclusivity at work and women all of March. Share your thoughts, tips and best practices on how we can make the startup ecosystem more inclusive, gender and culture diverse.

Join our e27 Telegram group, or like the e27 Facebook page.

Image credit: Alex Alvarez on Unsplash

The post The future of startup management lies in spontaneity appeared first on e27.

Posted on

AMTD Digital to acquire Singapore’s insurtech startup PolicyPal

Left to right: PolicyPal CTO Wong Kai Chin, AMTD Group Chairman and CEO Calvin Choi, PolicyPal Founder and CEO Val Yap

AMTD Digital, a digital finance arm of Hong Kong-based AMTD Group, announced today that it will acquire a controlling stake in Singapore-based insurtech startup PolicyPal.

In a press statement, the company stated the acquisition “deepens” its plan to build a Southeast Asian fintech platform headquartered in Singapore.

AMTD Digital did not share financial details. It is also pending the approval by the Monetary Authority of Singapore (MAS).

Founded by Val Yap, PolicyPal has raised fundings from 500 Startups, PayPal and angel investor Koh Boon Hwee.

It is also the first graduate of MAS’s fintech regulatory sandbox programme.

Also Read: PolicyPal is going to change their logo, thanks to a legal threat from a US insurance giant

Following the acquisition, there will be several roles that PolicyPal will take:

1. It will become a member company under AMTD Digital
2. With its digital insurance broker license granted by MAS, it will become AMTD Digital operating vehicle to develop and expand in the Southeast Asia insurtech sector
3. It will collaborate with AMTD Risk Solution to drive innovation and promote “an inclusive, green, technological, and professional online insurance service and risk management experience.”

As for AMTD Digital, in 2019, together with Chinese smartphone maker Xiaomi, it established Airstar Bank and had obtained one of the first eight virtual banking licenses issued by the Hong Kong Monetary Authority. The platform will launch its services to the general public “soon.”

AMTD is also teaming up with SP Group, Xiaomi, and Funding Societies to jointly apply for the Singapore digital wholesale banking license.

Image Credit: AMTD Digital

The post AMTD Digital to acquire Singapore’s insurtech startup PolicyPal appeared first on e27.

Posted on

Why Korean investors are getting attracted to Southeast Asia

Southeast Asia (SEA), with over 650 million population and a thriving startup ecosystem, is one of the global growth engines. Investors from around the world have been making big bets on young ventures in the region for quite a few years.

While the region’s startup industry keeps on attracting massive funding from investors across the globe, a new trend has picked up over the past one-plus year — investments from South Korean have grown. This trend is more visible lately, with the likes of Yanolja, Woowa Brothers, and GEC-KIP Fund actively supporting tech startups in SEA, which comprises several countries and archipelagos.

What attracts Korean investors into SEA

“There are a few key reasons why there’s been more interest in SEA from Korean investors, and it’s a combination of what they can offer and what they hope to achieve investing in SEA,” says Daren Tan, Managing Partner of Golden Equator Ventures.

SEA offers enormous opportunities and higher investment returns, which makes it attractive to investors from North Asia, including South Korea, where growth and returns are more muted.

Charles Rim, General and Founding Partner at Seoul-based Access Ventures, agrees. A shrinking home market is a reason why Korean investors are looking to invest in Southeast Asia. “There is a slow-down of sorts in Korea. So investors are now looking to go global and Southeast Asia is a good option for its proximity to the home market,” he says.

Also Read: AMTD Digital acquires Singapore’s insurtech startup PolicyPal

The emergence of unicorns such as Grab and gojek and their massive fundraises also give confidence to Korean investors to turn their focus to SEA. Deal flow is no longer scarce, which is also a draw.

“Seasoned Korean investors – chaebols, corporations, established funds – can see the opportunity that SEA presents as a fertile ground for the convergence of technological expertise and abundant, affordable labour,” Tan points out.

“But beyond Korea being interested in SEA, many startups in the region also have the desire to grow much larger, and that’s where a North Asia/Korea play could come in,” says Tan, adding that Korean investors can also offer their strong networks back home to present an attractive expansion plan or exit strategy for many startups in SEA.

There is also another big factor. On a government level, the Moon Jae-in administration in South Korea had launched a New Southern Policy in 2017 –a commitment to increase trade with SEA and prosper together with the region. The policy pledges support for trade and investments, including the pursuit of foreign trade agreements (FTAs) and creating new tech business opportunities with ASEAN nations, so looking into SEA is aligned with the government policies.

One example of Korean investors’ entry into SEA is Korea Investment Partners (KIP) partnering with local institutions like Golden Equator Ventures (GEV) to leverage existing regional expertise in co-managing a fund targeted at Southeast Asia, called the GEC-KIP Technology and Innovation Fund (GEC-KIP Fund).

The fund most recently invested in cloud-kitchen startup Dahmakan’s US$18 million Series B round alongside Korea’s app development firm Woowa Brothers. This is yet another example of Korean players seeing synergies with startups in SEA. Other Korean corporations such as Naver, etc. have also entered the region via various vehicles.

Also Read: Morning News Roundup: Vietnam’s IT recruiting platform TopDev raises investment from Korean recruiting company SaraminHR

“We strongly believe that the cross-sharing of strategic expertise and technical knowledge, along with the influx of smart capital, will create exciting possibilities that will mutually benefit stakeholders, entrepreneurs and corporations, from both Southeast Asia and South Korea,” Tan remarks.

Eddie Lee, Senior Associate, who covers South Korea for White Star Capital, feels that this trend is very similar to how US-based VCs saw an opportunity to invest in China/India ten years ago when successful US models were being replicated there regionally.

“Most of web 2.0 consumer startup models are now built out, well funded, and are mature in Korea. So Korean VCs are looking for opportunities to continue the same strategy of building out proven models in emerging regions,” Lee shares.

Geographically and culturally, it was the easiest for Korean investors to enter SEA. In parallel, Korean VCs are actively building a working network in the region to assist mature Korean startups (mostly unicorns) to expand business there through partnerships or competitive benchmarking, Lee explains.

Another reason is that Korea’s Big Techs — such as Naver and Kakao — see an opportunity to become a globally dominant organisation through SEA. Similar to how FAANG has transatlantic dominance, Naver and Kakao have ambitions to build regional dominance in Asia, excluding China.

“As Korea has been the leading FDI in Indonesia and Vietnam, Koreans feel more familiar with the territory. The first wave was basic manufacturers such as textiles, and then tech hardware such as cellphones and semi-conductors, and now tech startups,” adds Rim of Access Ventures.

Also Read: The future of startup management lies in spontaneity

Attractive industries

According to Tan of Golden Equator, Korean VCs tend to be bullish on deeptech and the entertainment sector — two segments in which they are strong at home.

As for deeptech, South Korea had over a million patents in force in South Korea in 2018, and Chaebols such as Samsung and LG are among the top patent applicants. So, it makes sense for them to continue to invest in leading technologies.

“On the entertainment side, we invested last year in Gushcloud, alongside KB Investment and our co-manager Korea Investment Partners. Another recent example and the sizeable round is Mirae’s investment in digital entertainment company POPS,” Tan reveals.

Daren Tan, Managing Partner of Golden Equator Ventures

When it comes to corporates, they, in the beginning, invested across sectors to get better visibility on the technologies that were growing in the region and the trending tech that could affect them.

So they typically started investing in funds to get better knowledge and then potentially leveraged on co-investment rights to invest when it made sense.

One example could be Hanwha, which entered the region a few years back by investing in a couple of the Southeast Asia fund managers but is now doing direct investments using its newly-launched fund.

“Later on, investing mostly in sectors directly synergistic with corporate’s core operations, so looking into companies they could potentially acquire or partner up with down the road, to see how they can potentially work with those companies or incorporate the business to truly realise the synergy. One example could be Yanolja’s further investment into Zen Rooms,” Tan says.

Of late, agritech, consumer internet and impact sectors have seen an uptick in terms of investment. The agritech investment is partly influenced by incentive schemes provided by the Singapore government agencies to help develop key sectors for the local economy.

Also Read: Capital markets platform iSTOX raises US$5M from Korea’s Hanhwa

As for consumer internet, the market has seen more companies launching social commerce platforms these days and are getting good traction, basing consumer choices on a circle of trust. Summer International is a good example.

“We think we’ll see more funds making a shift towards impact investments, implementation of proper ESG policy, as well as monitoring and doubling down on sectors such as financial inclusion, edutech and digital health,” Tan goes on.

Major deals by Korean investors

Dahmakan, Malaysian cloud kitchen company and a Y Combinator startup, recently closed a US$18 million Series B round, led by Rakuten Capital, Partech, Woowa Brothers, and Golden Equator Ventures.

On the M&A side, Gushcloud bought back shares from Yello Digital Marketing Global (YDMG) in 2018, putting its founders back in the driving seat.

Another deal is Yanolja’s, a leading travel group in South Korea, strategic investment in ZEN Rooms, a franchise of economy and mid-range hotels in Southeast Asia.

What is interesting though is that many of later-stage deals are strategic. ‘Strategic’ can defined as: 1) the investing companies are looking to acquire/partner with the investees in the future, 2) investors can open doors in their home markets (in this case Korea) for partnerships with other players, or 3) the investors have access to opportunities that could be potential exit routes for the investees.

“In SEA’s case, we haven’t seen many successful tech IPOs, barring Sea Group and Razer. Hence, it’s hard to engineer large exits in the billion-dollar range if the exit is via M&As,” Tan feels.

“Hence, there is a strong North Asia (Korea included) play here. It’s not just Korean investors wanting to invest in SEA for stronger returns than their domestic markets, but SEA companies do need access to other regions for growth, scale, partnerships, and potential exits.

Also Read: Today’s top tech news: South Korea’s ATU Partners launches e-sports-focussed growth fund

Hence, if the exit landscape is still maturing, it does make sense for investors to look at some of these deals more from a strategic angle rather than purely financial,” he continues.

As the success of M&A often relies for a large part on the ability to integrate to realise the synergy, it makes sense for strategics to first invest in those potential targets or partners, and overtime being able to assess the true value of buying versus partnering, alongside with their ability to work with the management team.

“Finally, for some strategics, the ability to potentially work with some of these companies can also be more valuable than their actual return on capital invested,” Tan says.

“We believe we will see more large financial investors being more active in this region as we can demonstrate a viable path for companies in this region to exit via IPOs in the US, or potentially Hong Kong. However, we will probably need to wait for another one to two years for the public markets to stabilise as we’re entering a recession,” Tan warns.

Image Credit: 123rf Stock Photos

The post Why Korean investors are getting attracted to Southeast Asia appeared first on e27.

Posted on

News Roundup: Indonesia’s mPOS firm Cashlez to raise US$6M via IPO to acquire IT firm

Finance

Medtech startup Biolidics plans to raise US$2.2M to fuel expansion

Singapore-based medical tech firm Biolidics has shared its plans to raise UD$2.2 million from a share placement exercise for business expansion and to pursue new opportunities.

DealStreetAsia reports that the company plans to issue 17,858,000 new ordinary shares at an issue price of S$0.175 per share, which represents a discount of approximately 7.3 per cent to its volume-weighted average of S$0.188 per share, for all trades done on Catalist on March 13.

The company has an issued and paid-up share capital of 242.5 million shares. With the placement, it will increase the issued and paid-up share capital to 260.358 million shares.

Established in 2009, Biolidics provides cancer diagnostic solutions, focussing on the development of cell enrichment systems that can be used for cancer diagnosis, prognosis, treatment selection, and monitoring. The company has developed and commercialised ClearCell FX1 System, a fully automated medical device that relies on a novel patented technology to separate and enrich cancer cells from the blood.

Last month, Biolidics announced that it would develop its proprietary cancer diagnostics solutions in China.

Indonesia-based mPOS Cashlez to raise US$6M in IPO, to acquire IT firm

Cashlez Worldwide Indonesia (Cashlez), a mobile point-of-sale service provider in Indonesia, has said it plans to raise US$6.6 million in an initial public offering (IPO) to acquire an IT solution provider.

Backed by VC firm of Mandiri Sekuritas, Cashlez said it will sell 300 million shares equivalent to 20.29 per cent of its enlarged capital at 298 – 300 rupiah apiece, as reported by DealStreetAsia.

Also Read: Aiming to add 4 new startups, Mandiri Capital Indonesia targets insurtech, investment management sectors

The proceeds from the IPO will be used to buy 51 per cent stake in IT solution provider for smart card technology and RFID Softorb Technology Indonesia (STI). The rest will go to the company’s working capital, and local brokerage firm Sinarmas Sekuritas will be the underwriter for the IPO.

“We are a fintech, payment gateway startup that has secured a license from the Central Bank. We believe that this initial public offering will support our business development,” Cashlez CEO Teddy Setiawan said.

Last year, the firm that was founded in 2015 had raised an undisclosed amount in a Series A funding round led by Japanese diversified conglomerate Sumitomo Corporation with participation from state-owned CVC Mandiri Capital.

Currently, the startup is awaiting the approval of the Financial Services Authority (OJK) on April 7, while the public offering will be held on April 8.

Cashlez will list its shares on the Indonesia Stock Exchange (IDX) on April 20.

Business

PayPal’s study reveals financial health of Singaporeans will be crucial to the future of work

PayPal today released a report on “Financial Health for the Future of Work in Singapore”, which explores how the way people work in the future impacts the way the financial services industry needs to serve them. The report combines an analysis of a survey administered to 1,000 Singaporeans, extensive literature reviews, and more than 100 interviews with experts from all over the world, including several Singapore experts.

Singapore-specific research findings reveal the implications of financial health on Singaporeans’ preparedness for the future of work. Singaporeans are not only highly aware of the impending changes to their careers but are welcoming opportunities brought about by automation, Artificial Intelligence, Machine Learning, and other emerging technologies.

However, the Singaporean workforce still has a long way to go in preparing financially for automation and allied changes noted the report. Workers in jobs that are at high risk of automation exhibit more signs of financial distress and younger Singaporeans are also voicing their concerns regarding their long-term financial health and ability to retire in comfort.

Singaporean entrepreneurs, in general, remain financially healthier than their global counterparts, but more can be done to support the enterprises that are financially-distressed.

Also Read: [Update] PayPal: 121% surge in global mobile payments during Black Friday 2013

Overall, the report reinforces the need for financial services supporting Singaporeans through the changes in their future of work and calls for financial service providers to better serve the needs of a changing workforce and to build up the financial health of their customers.

People

BurdaPrincipal Investments appoints Albert Shyy as Managing Director for Asia

BurdaPrincipal Investments, the capital arm of media and tech company Hubert Burda Media, has promoted Albert Shyy to Managing Director (Asia) at BurdaPrincipal Investments (BPI). According to a statement, the appointment will take effect on April 1st, 2020.

In his new role, Shyy will focus on deepening BPI’s investment activities and guiding its growth in Asia. Shyy has been with BPI’s Singapore office since in 2017 and has led investments in Southeast Asia into companies such as fashion marketplace Zilingo, co-living operator Hmlet, and used car marketplace Carsome.

Prior to joining Hubert Burda Media, Shyy led investment activities for GREE Ventures (now Strive) in Southeast Asia and India, overseeing several portfolio companies including Indonesian payment firm Kudo and e-commerce company Berrybenka.

Indonesian C2C marketplace platform Jualo names Manisha Seewal CEO

Manisha Seewal, CMO of automotive marketplace Carro, has been appointed as CEO of its C2C marketplace platform Jualo that is based in Indonesia. In her additional role, Seewal will focus on business expansion and strengthening synergy with Carro’s automotive ecosystem with immediate priority to attract Indonesia’s top talent to its growing team.

Seewal said: “Both Jualo and Carro will leverage each other’s technologies to provide Indonesians with a transparent and hassle-free platform for e-commerce, especially when buying and selling vehicles.”

Also Read: Automotive marketplace Carro adds US$30M to Series B round; acquires Indonesia’s Jualo.com

In the CMO’s role, Manisha led and drove the development of Carro’s key branding and positioning strategies in Singapore, Thailand, Malaysia, and Indonesia. Prior to Carro, Manisha led marketing teams of global insurance corporations such as Tokio Marine, Aviva, Great Eastern Life, and HSBC Insurance.

Founded in 2013, Jualo.com is one of Indonesia’s most prominent full-stack hybrid C2C marketplaces and was acquired by Carro in 2019. The platform helps private and professional sellers trade new and used goods in over 300 categories including cars, motorcycles, property, fashion, electronics and job adverts.

Picture Credit: BurdaPrincipal Investments

The post News Roundup: Indonesia’s mPOS firm Cashlez to raise US$6M via IPO to acquire IT firm appeared first on e27.

Posted on

These 4 medtech startups will help you bust health myths during COVID-19 crisis

 

As COVID-19 impacts the world economy, affecting daily life, and human health, these rapid changes have also created an environment of fear and anxiety. This mindset might potentially come from the information that we consume daily.

Coronavirus precaution tips, remedies, and essential advice has been circulating over various public forums and social media platforms ever since the breakout. Some are true, some are exaggerated, while some are actually harmful. Big tech companies such as Facebook and policymakers are finding ways to detect, monitor, and combat misinformation; however, it is difficult, if not impossible, to suppress the circulation of social media posts from individuals.

At a time like this, it is crucial to be mindful of sources we consume every day so that we do not become the carriers of misinformation.

e27 has reviewed three medtech startups who are positively combating distortion of health news as the virus continues to spread.

1. DoctorxDentist

Headquartered in Singapore, DoctorxDentist provides free-to-use medical information services for those who are curious about any significant illnesses published strictly by certified doctors.

Anyone is free to publish their medical questions; however, after which only doctors and specialists are allowed to reply to the enquiries.

However, in order to keep the process transparent, doctors are given ratings by patients who have “consulted” them only on the platform for which users need to register themselves through the portal.

2. Whitecoat

Whitecoat is a virtual healthcare platform that offers services such as online diagnosis, treatment, medical referrals, and offers delivery of medication anywhere in Singapore.

Also Read: Morning News Roundup: Chilibeli raises US$10M, gojek denies staff layoff and Grab merger reports

During a crucial time when social distancing is highly recommended, using a virtual platform to consult doctors is highly advisable.

To use the platform, one has to download the app, sign up, select symptoms and pick a doctor or have one assigned. After the consultation, medicine is directly delivered within 90 minutes of consultation.

3. Lifetrack Medical Systems

Lifetrack Medical Systems offers radiology solutions that allow customers to scale and integrate their radiology operations in a cost and time-efficient way.

Based in the Philippines, the company is led by a team of health and technology veterans from the US and the Philippines with the goal of making healthcare software human.

Even though the following company is not a blog, since there is a growing need to rapidly diagnose cases, the project is appealing to people to crowd-source a COVID-19 image repository. It will be “freely available for individuals, medical institutions, hospitals, health departments and health ministries” to share their COVID-19 chest CT images globally.

4. Halodoc

Indonesian online-based health app Halodoc provides health solutions to facilitate easy access to healthcare. It also works closely with Prodia (laboratory) making it easy for users to conduct health checks, both at home or in office.

Gojek and Halodoc together have launched free online medical consultation services for Indonesians experiencing potential COVID-19 symptoms.

Through the check (available on the Gojek app and links to Halodoc’s app), users can conduct a self-assessment if they are doubtful of their condition and share their travel histories. According to the answers, further diagnosis will be made, and a COVID-19 assessment at a government hospital might be facilitated.

” Those who complete the self-assessment and are categorized as low-risk will receive educational materials on preventative health measures and can access Halodoc’s ongoing telemedicine services to deal with other symptoms,” according to the company statement.

At a time like this, e27 thanks not only Southeast Asian startups but all other companies around the world who are helping people to get past through this uncertain time.

Image Credit: Pexels

 

 

 

 

The post These 4 medtech startups will help you bust health myths during COVID-19 crisis appeared first on e27.