Taking your business from a simple idea to a large corporate entity is an intensive and delicate process. The unfortunate statistic that 90 per cent of startups fail shows the importance of these formative stages. Trying to be the next investment unicorn has as much to do with logistics and planning as the power of the idea at hand.

Let’s cut the chase. The primary challenge of emerging startups is attracting investment capital to scale up operations. As noble as some investors are, their primary motivation is profit, either in the short or long term.

These investors are typically savvy entrepreneurs who can gauge the prospects of your startup by looking at several aspects of your startup.

Here are some things to get right when seeking investor capital:

Expert legal advice

The legal setup of your company is critical. For the uninitiated, the processes and intricacies can seem daunting. A fundamental decision you have to make is determining your preferred business structure.

Different business structures incur different types of liabilities. For instance, incorporating your business as a company is a display of intention to scale up. It also limits the liabilities of the business owner because the company is a separate entity. However, it is more expensive and requires more personnel, unlike a partnership.

Also Read: Why fundraising sucks, and what we can do to help

To this effect, some institutions have specialised in advising startups in the processes of startup growth. This role is something even traditional financial institutions are increasingly looking at.

In this era of robo-investors and the internet, a startup founder might not see the need for expert advice. However, it is essential to utilise experts, especially if you are not familiar with the intrigues of legal documentation.

Experts can advise you on the appropriate contracts to sign, issue to employees, and even keep the company information confidential through Non-disclosure Agreements (NDAs). Legal experts can also give your proper advice as to protecting your ideas through trademarks and patents.

Documentation should not be taken lightly. Deciding to handle it yourself instead of utilising experts can be a fatal error, especially if it leaves the startup vulnerable to external control or flouting regulations. These structures and processes are fundamental in ensuring your startup is credible and secure. 

Know what you are looking for in an investor

As you would guess, venture capital typically comes with strings attached. Milton Friedman is famous for saying, “There ain’t no such thing as a free lunch,” and this certainly holds true in investment circles. 

Also Read: How and when to appoint an advisor for your tech startup

For their capital, venture capitalists usually ask for a stake in the startup. Some seek to have control over the governance processes, while others want to take an active role in growing the company.

Remember, some of these investors are big names in the world of finance. Should they choose to touch your startup, it can become news in the financial sector.

Therefore, know what to look for when pitching to an investor. Whether you seek a partner to help grow your business or simply a hands-off investor only interested in stake is a consideration you must have before seeking external capital.

Depending on the nature of your innovation, location, the scale of operation, and the level of capital you seek, a marketing partner can come in handy. If you can’t utilise such a service, taking time to research the investor, no matter how famous they are, can always come in handy.

This effort will not only enable you to pitch appropriately but also manage your expectations as to the kind of offers to expect.

Also Read: Monk’s Hill Ventures’s Peng T. Ong on how to get your startup ready for the new normal

The intangibles

Besides having a competitive advantage and market viability, you have to sell your idea. Intangibles like confidence in your ideas and passion in your business come in handy. 

Billionaire venture capitalist Jim Breyer claims that these intangibles made his decision to become an early investor in Facebook easily. To Breyer, Mark Zuckerberg displayed the ‘courage and intensity’ that venture capitalists look for.

Impressive as your idea is, investors give you money based on trust. Do I trust this person to take this idea to the Promised Land? The answer to this question can hinge on what they observe in meetings, presentations, and even documentation.

However, this does not mean that you have to become overly-exuberant. Over-promising is another gut check that venture capitalists can use to overlook a startup. Just be true to your idea and give it the best shot.

Getting it right in attracting venture capital is not a walk in the park. In any random pool of ideas, it is not given that the best idea on paper will shine brightest down the line.

Also Read: Ascent Capital raises over US$80M for its debut fund to invest in Myanmar’s startups: Report

It is as much about the process as it is about the substance.

With adequate preparation and expert advice, it can seem smooth. Having a reliable partner to guide your pitching process is vital. Be smart, be bold, and, ultimately, be prepared.

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The start of the decade has not been kind to the global community. Within the first few months, we were greeted with the greatest pandemic in a century, COVID-19. Soon enough, we found ourselves plunged into the greatest recession since the Great Depression.

Among all these negative sentiments, we ought to spare a thought for the Class of 2020 and future graduates in the near future. They will be entering the worst job market in recent memory and many are struggling to secure jobs.

The situation has been so dire that the government has stepped in with the SGUnited Jobs Package for graduates to access short-term and long term job opportunities and pick up job-related skills and capabilities for when the economy picks up after recovery, they would be able to capitalise on the new opportunities.

Silver Lining

However, all hope is not lost. Instead of viewing the current situation as a bane, graduates should adopt a different set of lenses and find the positives of the current state of things present. They should look to explore other industries given the opportunity costs will be lower due to poor job prospects in the general economy.

Digress from the norm and look past the traditional Multinational Corporations (MNCs) that we have often associated a good, stable job with. Take the plunge and join the startup ecosystem.

Also Read: iSTOX graduates from MAS Regulatory Sandbox to fully operate its capital market trading platform

Value of startups

Startups exist due to the presence of institutional problems that litter the society we live in. They identify problems, develop solutions, and execute them to solve these problems and value-add to the community. TreeDots, a Singapore startup started in 2017 by three graduates who rejected job offers from UBS and Oliver Wyman, is a testament to the above statement.

By providing a platform that allows food suppliers to re-distribute their unsold inventory to organisations that can use them, suppliers turn potential losses into profits. Furthermore, buyers get quality ingredients at lower prices, and the community benefits from less food wastage.

Wateroam, founded by undergraduates from the National University of Singapore (NUS) in 2014, solidifies the view that more graduates are taking the plunge and joining the startup ecosystem with the hope of making a difference to others. By providing clean water access, they hope to empower individuals to lead a healthier life, free of water-borne diseases.

Therefore, giving them access to better livelihoods. TreeDots and Wateroam form just a small slice of the ever-increasing pie of startups started by graduates to solve problems that include Xfers, which eliminates the hassle of collecting payments and the high fees of using existing payment platforms by creating an automated banking network that allows users to conduct transactions in a secure and low-cost manner.

Perhaps the most notable startup that has penetrated the Singapore community and provided convenient solutions to our daily lives is Grab. Travelling and ordering food has never been easier and their foray into e-payments has the potential to make physical cash a forgone thought. The business models of the above firms are the hallmark of the startup ecosystem.

Also Read: 3 lessons I learned as a student entrepreneur

Identify problems, develop solutions before executing them to value-add to people’s lives. Hence, graduates wanting to be involved in something greater than themselves and impact the lives of others should take the plunge and join the startup industry.

Use age to your advantage

Graduates also have time on their side and those looking to utilise their youthfulness to grind and hustle to constantly improve themselves will find the startup ecosystem enticing. Filled with challenges and failures, it is not a glamourous industry to work in.

It is fast-paced, high pressure with the constant need to deliver results. Instead of viewing it as a burden and shy away from it, those who perceive it as an opportunity to challenge yourself and grow in the process will enjoy working in this ecosystem.

Failures in the startup industry are viewed differently compared to the conventional corporate world. Just ask Khoo Kar Kiat. His startup business, FastBee, collapsed despite two years of hard work. However, he shared that taking the entrepreneurial plunge has put him on a path of self-discovery.

Given the average of entrepreneurs in Asia is 28, graduates should dive in and gain experience in the startup industry and learn from those who have walked the path and experienced the peaks and troughs of creating a startup, before proceeding to the next stage and create their own company.

Also Read: Lessons from a student entrepreneur on building a successful startup

Another advantage of entering the startup ecosystem early is that it reduces the need to unlearn and relearn new ideas. This is particularly true given the fast-paced and rapidly changing ecosystem startups are associated with. Fresh off the education system and into the working society, they would have minimal notions of workplace cultures and ideas that would have made future integration into the startup industry difficult given the unconventional approach to working and finding solutions that startups adopt.

Ball in the court

Ultimately, for the Class of 2020 and graduates in years to come, the ball is in your court. As with all adversities in life, there is always a positive lining to it. It is up to you to find it. Be accepting of the current situation and numerous curved balls that the pandemic has thrown at you.

You are unable to change the fact that the pandemic has happened nor can you control its impact on the economy. However, what you can control is how you respond to it.

Take the chance to try something different and challenge yourself every day to be better. Take the plunge and join the startup ecosystem and give yourself a challenge while helping others.

Challenges are what make life interesting. Overcoming them is what makes it meaningful.

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Though this week has brought news of another outbreak of COVID-19 in Beijing, many people in Asia are already looking to a post-pandemic future. One of their major concerns is data privacy. Across the region, contact tracing apps were used to track citizens’ movements, and in many countries using these apps was mandatory.

Given the history of data privacy violations in China and other Asian countries, it seems legitimate to ask whether these apps will be used after the pandemic to continue to track citizens.

These concerns come on top of widespread worries about the eagerness of Asian governments to deploy new invasive technologies, such as the way that policymakers have attempted to undermine privacy in the cashless economy, and targeted tech startups for IP theft. 

In this article, we’ll take a brief look at how governments in Asia dealt with privacy concerns during the pandemic, and assess the likelihood that privacy rights will be restored to citizens after the pandemic is over.

Tracing apps in Asia

Almost as soon as the pandemic broke out, countries in Asia began to develop technological systems for contact tracing. In the West, smartphone apps that were designed to perform this function faced much opposition: citizens were worried that they would undermine the push to make smartphones secure and that widespread data collection was a civil rights infringement.

Some countries in Asia had no such qualms. In Singapore, citizens were required to download an app named TraceTogether. In Hong Kong, quarantine orders on new arrivals were enforced via another app, StayHomeSafe, which relied on a wristband to track users’ movements and ensure that they stayed home.

Also Read: Blockchain is the future of data privacy

Infringements of these rules carried significant penalties: up to six months in prison and a potential HK$3,200 fine. Other countries in Asia have gone even further.

In South Korea, citizens were required to download an app that tracked all of their movements and sent citizens updates if they had potentially come into contact with a carrier of the disease.

Consent and privacy

There are two striking elements of the Asian response to the roll-out of these technologies. One is that governments in Asia, unlike their Western counterparts, largely ignored concerns that such apps violated the privacy of users.

The other, perhaps even more surprising, is that on the whole citizens in these countries welcomed the deployment of these apps.

In South Korea, for instance, have had great success in developing tracking apps that go well beyond the capabilities of the government-sanctioned system. Corona 100m, one such app, was downloaded over one million times in Korea in just a few weeks.

In addition, tracking apps like this appear to have huge support in South Korea: a government poll reported in Nikkei Asian Review found that more than 70 per cent of respondents supported the tracking of citizens through systems like this.

Also Read: Life after COVID-19: How and why smart cities need to focus on sustainability

These statistics point to a slightly problematic characteristic of data privacy in Asia. There appears to be a higher level of consent, at least in some countries, for the government to collect data on citizens. 

To see the extent of the difference between Asia and the West when it comes to data privacy, it’s instructive to look at attempts to roll out contact tracing apps in Europe.

The ability to track contacts during infectious diseases has been around for more than a decade, and Cambridge University’s voluntary FluPhone app was an early example in 2011. Using the app was voluntary, and fewer than one per cent of people in the test area downloaded it.

Striking a Balance

All this said it should be noted that the COVID-19 outbreak has been a unique situation, and it’s unlikely that such high levels of consent for government surveillance would be seen outside of a global pandemic. Nonetheless, the relatively unopposed roll-out of these apps across Asia raises some worrying questions about what will happen to digital privacy after the pandemic.

A warning sign of what could happen comes from China. Contact tracing apps were not mandated in that country, but not because the government wasn’t tracking its citizens. 

Instead, and as The Economist reported a few months ago, Beijing merely re-purposed its already huge programme of digital surveillance. In other words, citizens in China did not need to download a specific app for the government to know where they were at any particular moment, because the government already has this information. 

Also Read: From data novice to data expert: How tech startups can handle data privacy

It could be argued, of course, that a slight hit to citizens’ privacy is a small price to pay for saving hundreds (or thousands) of lives through contact tracing. Nonetheless, contact tracing apps of the kind seen all over the continent are a worrying sign that governments across the region – and even in some of its more liberal states – are willing to use emergency powers to track their citizens. This will not, fear some analysts, be a capability that they will give up easily. 

A clash of values

Ultimately, the differing debates in the West and Asia regarding the privacy implications of contact tracing illuminate the deep rift between the two regions when it comes to views about the legitimate power of the state.

Countries in the West have struggled to roll out surveillance programs of the kind seen in Asia, and not least because doing so appears to undermine the core values that underpin these democracies.

The future is always difficult to predict, but it is clear that there is a balance to be struck in Asia between respecting the private lives of citizens and allowing governments the tools to respond to emergencies. It’s unlikely that activists in the region will be able to convince politicians to give up these systems entirely.

But perhaps new technologies, such as blockchain and the kind of de-centralised apps being trialed in the USA, can provide a more private future for the citizens of Asia.

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This article is published in partnership with Startup SG, an initiative of Enterprise Singapore that provides comprehensive support for startup development in Singapore.

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Fundraising without meeting face-to-face is the new norm in a post-COVID-19 world. While startups fight to stay afloat, it is also important to continue to seek funding to drive business growth.

As companies and decision-makers are forced to make deals and conduct business virtually, take this opportunity to reach out to investors who may now have more time to hear out and aim to close these deals.

Get ahead in the new climate of investment

In the current economic climate, a good leader in times of crisis is more defining than being a good leader in almost any other scenario. This is the time your values stand out and you show who you truly are. This means, being empathetic to your team, stakeholders, and customers. Listen first and be transparent. Take care of yourself and your team, support your teams with kids, and check in on each other. Here is some advice I have for startups to tide them through the crisis:

Find one thing to focus on

When growth has stalled and certain industries have come to a standstill, turn your focus to improving and building a killer product in preparation for the recovery. Ask yourself these questions: What drives usage? How have habits changed? What features can I improve on now? What are the barriers to growth? During this time, you should think about how you can prepare yourself for the next spurt of growth.

Pivot to temporary revenue-generating activities

Consider temporarily pivoting to cash-generating activities, or in some cases, structural solutions. One way would be to team up with a vertical partner. A good example of this is when Elon Musk merged his startup X.Com with Confinity during the dot-com boom to form Paypal.

Extend your cash runway

This is a challenge for many, and we recommend keeping enough runway for at least 18 months. If you do not think you have enough, think of contingency plans and what non-essential expenses the business can function without. For example, if your team is small, can you do without office space and go fully remote for the near future?

Also Read: How Tokopedia managed customer experience and engagement amidst the pandemic

Similarly, focus your energy and time on what drives the business forward. If you do this successfully, you will be in pole position to benefit from the next decade’s worth of growth and be part of the path to recovery.

Despite the current economic climate, VCs are continuing to invest in startups, and some are even being done virtually. Startups need to ride this trend and proactively reach out to people who may now have more time to hear them out. However, they also need to bear in mind that valuations have been slightly lowered, so it is important to strike a balance between fundraising and reaching their goals.

Rising to the challenge

As a Startup SG Partner, Antler has worked with Enterprise Singapore to build a strong base of startups in Singapore. These startups have mitigated short-term challenges while seeking new opportunities to grow. Some homegrown startups that have benefitted from Antler’s mentorship and Startup SG’s support include:

Sama (Singapore), a platform built to address labour exchange in Singapore has now pivoted to address COVID-19 by offering a solution for companies seeking to transfer foreign construction workers across sectors to manage their manpower needs during COVID-19. They hope to help workers find jobs while helping companies fulfill their labour needs.

Also Read: How startups can tap community networks to pivot for growth amidst the pandemic

Cognicept (Singapore), offers a human-in-the-loop robot intervention system and teleoperation service. During the current global crisis, they have pledged to donate this service to any businesses using robots to support COVID-19 efforts and response.

Calling on the community

A fundamental belief at Antler is that we support and invest in businesses that are solving real problems and have a positive impact on the population. This pandemic has been the largest humanitarian crisis we have witnessed in our lifetime and so we called upon the best and brightest to come up with solutions to chart the way forward and help humanity.

Antler committed US$500,000 to startups tackling COVID-19 to propose solutions in Mitigation, Medical Equipment, Remote Health, and Digital Tools. I am pleased to say that the community response was overwhelming, as we received over 1500 applications from 100 countries.

Additionally, with support from Enterprise Singapore, we have developed another layer of support for the companies, holding frequent webinars with our global network of advisors, partnering with organisations in various regions, and making our teams available for more frequent coaching.

We have also continued investing and building companies, with an additional 58 companies invested in and supported globally. In Singapore, we have been part of Mentor for Hope, a mentorship program where Antler Southeast Asia’s leadership give advice to startups affected by COVID-19.

We are holding our first virtual Demo Day out for Southeast Asia out of Singapore for our fourth cohort on July 16.

To the class of 2020 graduates

What you are doing right now is incredibly important. Now is the time to create growth, new employment opportunities, and solve the world’s largest problems. If you look at the companies that came out after a crisis, they are some of the biggest companies right now.

A final call-out to all students graduating this summer. Look out for the imminent launch of Antler Launch Academy, an online free five-week offering for aspiring entrepreneurs.

We understand you are entering one of the toughest job markets in generations. Use this as an opportunity to kick-start your career by getting out there and learning. What you will learn will enable you to realise your dreams and build your own company in the future.

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There is a common belief that to be a successful entrepreneur, you need a great idea. But a great idea on its own is not enough. At the heart of every success, you will find people. Companies are made of people. Successful companies are made of talented people, at every level of the organisation.

Looking at companies like Google, Facebook, LinkedIn, Netflix, Zappos, these successes are rightfully attributed to their inspiring founders’ vision and leadership. These founders saw a gap. They came up with a smart and innovative idea to fill this gap. And they developed the right strategies to make it happen: the right business strategy, the right go-to-market strategy, the right marketing strategy … and the right people strategy.

Without a strong people strategy, it is not possible for founders to move from an idea (no matter how exceptional and revolutionary it is) to a unicorn, let alone to a successful and sustainable business over time. Founders cannot do it all by themselves. If they want to scale, they have to rely on other people as the company grows. And these people have to be equally talented, if not more so!

The terrible reality is that 90% of startups fail and there is a common set of reasons why. In a 2019 study, CB Insights compiled a list of the Top 20 Reasons Startups Fail. The top nine are:

1. No market need
2. Ran out of cash
3. Not the right team
4. Got outcompeted
5. Pricing/cost issue
6. Poor product
7. Need/lack business model
8. Poor marketing
9. Ignore customers

Each of these is linked in one way or another to a failure in leadership and human capital. We could even argue that the issues related to the product, marketing and go-to-market strategy highlight a broader capability issue at the team level, an inability of the leaders to build a strong team and to drive a business effectively.

Also Read: Book Excerpt: In this digital age, customer journey as we know it may no longer exist

As a business gets started, things may seem rather simple because you, as the founder, are in control: the company is small and you can react to issues as you encounter them. You can hire and fire fast. You can keep an eye on the quality of employees hired in the team and their level of performance delivery. But this becomes more challenging from the moment you grow beyond the point where the founding team has regular contact with all employees.

The quality of the people in your organisation defines the quality and sustainability of your business. The quality of the strategies will only be as good as the people developing them. The execution of the strategies will only be as good as the people in the teams who do the actual work. And the quality of the talent you can attract and hire will only be as good as the people already working in your company.

It’s not even about getting ahead. It’s a matter of survival. Particularly in times of crisis, like the COVID-19 pandemic, having all this in place is not a luxury. Too many founders who are worried about the survival of their company only focus on the financial aspect of the business, but it is those who successfully navigate their crew through hard times that come out stronger. When the boat is rocking on a stormy sea, you need everyone to roll up their sleeves and row in the same direction. How can a disoriented crew do that if the founder isn’t captaining the ship? Indeed, making it through a crisis is the real stress test of your organisation.

Companies with a good people strategy enjoy a special status in their chosen field too. You probably already know who these are in your industry. Their names come up in conversation … in positive ways. They are known for their positive work environment. They attract and hire the best talent. Their employees (and even candidates) speak highly of them. These companies are in demand. People want to work there, people want to stay there, people are committed and deliver at a high standard.

Most founders think that people strategy is something you only have to worry about once you reach a critical number of employees. Usually around 150-200 employees when the first people issues really start to show. They then hire a Human Resources team to handle it. But there are plenty of companies with well-qualified HR professionals that do not come close to the status of ‘best company to work for’. They have a recruiting team, they have cool videos on their career page, they have fun employee engagement initiatives, they even offer free food in a full-stocked pantry … but still the reviews on Glassdoor do not do their
effort justice.

Also Read: Book Excerpt: How chatbot threatens to upend an entire industry in the Philippines

So, what is the secret sauce? What do Google, Facebook, LinkedIn, Netflix or Zappos do differently? How come Google has been on Fortune’s ‘Best Company To Work For’ list for 11 years and landed in the top spot for 6 years in a row? How has Zappos managed to be consistently rated as one of the ‘Best Places To Work
For’? How does LinkedIn constantly reach one of the highest scores on Glassdoor?

The common factor is that their employees are happy, dedicated and safe at work. These companies have a high volume of applications and low attrition rates. Their employees recognise and value these companies’ investment in their wellbeing. They have a clear employee value proposition and clear idea of the type of people that best fit their organisation, which are achieved through the development of a clear people strategy.

We know of these companies now, but they did not become like that overnight. They were built like that. They articulated the people strategy early and translated it into the right work environment for them from the beginning. Google had their values and key people management principles set within the first two years.
Google founders’ altruistic principles and ‘societal goals’ were clearly articulated in their mission and values from the launch of the company in 1998, and the famous OKRs were in place by 2000.

All companies have a different story. They do not go through the same stages of growth at the exact same time. They do not experience the same challenges. They do not share the same beliefs and culture. However, good people strategy underpins the success of these companies, and there are some similarities and trends that you need to know in order to build your organisation – starting now.

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Anne Caron is an international speaker, author and consultant. Drawing on her 10 years’ experience as a senior HR executive at Google, she set up her consulting practice in 2015 to support founders in building high performing and positive organisations.

Through her experience working with entrepreneurs, she developed a methodology for startups to grow the right organisation and team, which she describes in her book From Zero to 1,000.

This story has been excerpted by courtesy of the publisher from From Zero to 1,000 by Anne Caron (Anne Caron, 2020).

To purchase the book, please visit this site. The paper version is available at Amazon from July 25.

Image Credit: Damir Kopezhanov on Unsplash

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