As economies begin to reopen and businesses grapple with a new digital and socially distant landscape, industries as we know them have inevitably changed over the course of the outbreak. While many sectors struggle to tide through this new reality, fintech is in a promising position with S$650 million (US$475 million) invested in fintech firms throughout the first half of 2020.

With the challenges brought forth by the pandemic, digital financial solutions are vital in serving economies and societies of the future. Southeast Asia is actively accelerating the digital financial services sector with the Monetary Authority of Singapore (MAS) urging the use of digital finance and stimulating the fintech sector with S$125 million (US$91 million) to support the digital financial industry to navigate new obstacles.

With new socially distant norms, many firms are now forced to adapt to the new realities. The pandemic has already prompted a 20 per cent increase in Singapore businesses kick-starting their digital journey, and this number is likely to rise further as the outbreak continues.

Amidst the changing business and economic landscape, customer’s demands are also changing. Eighty per cent of surveyed respondents in Singapore has stated that they are likely to continue using online banking after the pandemic.

With more consumers migrating and adapting to digital, they will naturally expect other financial providers to follow suit, and insurance will be no exception. Traditional insurers are now faced with joining the digital wave or succumbing to those offering digital solutions fit for a socially distant society.

Tradition vs technology

Digital by design, today’s fintech and insurtech startups have an operational structure rooted in technology and the agility to continue services amidst business disruptions and limited contact. In contrast, much of traditional insurance is structured around face-to-face contact, and as such, the transition to digital is met with more challenges as they create new avenues for customers to make well-informed decisions without having to physically meet financial advisers.

Also Read: Asian insurtech on the rise: An overview of the main players

In addition, new products take an average of six to nine months and close to US$1 million to develop and test. Caught at a technological crossroads, it is slow and costly to integrate into a digital ecosystem.

In a rush to expedite digital processes, many companies have implemented solutions in weeks rather than the months or years it would have usually taken, raising concerns on the long-term impacts that could arise from such quick digital fixtures.

With many traditional insurers taking this digital leap, there is an even greater need to scrutinise solutions from a digital perspective to avoid the pitfalls of quick technological fixes. The transition to digital goes beyond structural changes and involves a re-engineering the mindset and culture of the organisation to think from a digital perspective, from product to customer service.

The future of insurance

With a growing focus on technological transformation, naturally, most would expect that the future of insurance is digital. No doubt, to an extent that is true but I believe that the future of insurance is not just digital, but efficient—being able to connect to our customers more instantaneously, to understand their needs more promptly, and to address their concerns immediately.

Encompassing new technologies from big data and machine learning to robo-advisory and IoTs, digital insurers are built to lower costs for policy administration and improve claims management, streamlining processes more efficiently than traditional insurers.

Having such technological solutions provides multiple touchpoints for customers to connect at any time which is crucial in accelerating processes and creating an efficient customer onboarding process.

Also read: Why insurtech startup Igloo is eyeing Vietnam for expansion

In this new economic climate, finances are a concern for many, making it even more necessary to have seamless services that provide clarity and connectivity to customers at a time of uncertainty.

Presented by new challenges, traditional insurers are forced to evaluate old practices and innovate new processes in a bid to stay relevant in an ever-changing economic landscape.

As we look at a post-pandemic world, it will be paramount to embody the nimbleness of a digital insurer, providing the efficiency that the customers of tomorrow not only need but expect.

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Lever VC, a new global alternative protein venture capital fund based out of Hong Kong, has announced the first close of its first fund.

As per an official statement, the Fund I has U$23 million in commitments so far.

Also Read: Why Sesamilk thinks plant-based milk is healthier than cow milk and has a bright future

The firm claims to have attracted “strong support” with around 70 per cent of capital commitments from Hong Kong and Asian family offices and conglomerates with diversified interests, including consumer products and the food industry hoping to gain exposure to the high-growth alternative protein sector.

Lever VC was founded by Managing Partner Nick Cooney and Partner Lawrence Chu, who have been investing in the alternative protein sector since 2015. They were also investors in Beyond Meat, Impossible Foods, Memphis Meats, JUST, Aleph Farms, and Kite Hill.

It invests in early-stage plant-based and cell-cultivated meat and dairy companies. The firm has already backed ten startups, including Singapore-based TurtleTree Labs, which develops cow’s milk and human breast milk from cell cultivation; and Hong Kong-based Avant, a cell-cultivated meat company in the greater China region.

The company further added it will continue to identify investment opportunities in early-stage alternative protein companies, carefully evaluating around 1,200 plant-based and cultivated meat and dairy protein companies that the firm tracks globally.

Alternative protein, which generally refers to plant-based and food-technology alternatives to animal protein, is one of the most popular investment trends in recent years.

Barclays, UBS, and JP Morgan project the sector to grow by 31 per cent year over year, becoming a US$85-$140 billion market over the next ten to fifteen years.

According to Lever VC, the alternative protein industry is on track to transform the food industry, thanks to macro trends toward greater awareness of health concerns, food safety and sustainability.

Also Read: Bühler invests in Big Idea Ventures’s New Protein Fund; to invest in up to 100 plant- and cell-based firms

“The alternative protein market is continuing to grow quickly, and with our deep experience and proven record of returns in the sector, as well as the preeminent deal flow across Asia, North America, Europe and beyond, Lever VC is perfectly positioned to deliver value to investors looking for financial or strategic exposure to alternative protein and the broader impact investing market,” said Chu.

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Image Credit: Lever VC

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MDI Ventures, the corporate venture capital (CVC) owned by Indonesia’s state-owned Telkom Group, has announced the launch of a new US$500 million tech fund.

The new fund aims to bolster the digital transformation agendas of the archipelago’s state-owned enterprises (SOEs) at large.

The push is as part of an ambitious goal of building out a full-fledged, state-owned digital ecosystem.

Also Read: Meet the VC: How Indonesia’s MDI Ventures managed 3 overseas exits within a month

MDI Ventures claims with the launch the new fund, it has now become the largest corporate-backed, multi-fund VC firm in the nation, with more than US$790 million in assets under management.

Since 2016, MDI Ventures and Telkom have worked together to expand the telecoms company’s in-house digital capabilities. So far, it has invested in more than 44 startups from more than 12 countries.

The CVC is now on the lookout for tech startups that aspire to dominate the local market and help traditional, and largely offline SOEs, join the nation’s thriving digital economy.

So far, SOEs have played an essential role in Indonesia’s US$1 trillion modern economy. As the country’s consumer market is quickly shifting toward digital-first and digital-only user experiences, transformation is seen to be a top priority for local SOEs moving forward.

“Indonesia’s digital economy managed to reach US$40 billion in 2019, with the e-commerce sector acting as the main catalyst for the spike,” said Donald Wihardja, the newly-appointed CEO of MDI Ventures. “Increased ease of digital payments across the country and widespread consumer adoption also significantly contributed to this growth.”

“To maintain their strong footholds in the market well into the future, our SOEs know they need to embrace digital business models more profoundly than ever before. By allocating this fund in accordance with the government’s bold mission and by partnering with local tech innovators, Indonesia’s SOEs will be ideally positioned to thrive for generations to come,” he added.

In recent years, Indonesia had already been transitioning major SOEs into a fully digital paradigm. State-owned banks, for example, had released various tech innovations since 2018 and some even launched their own online and app-based lending platforms for SMEs.

They had also established key partnerships with numerous fintech startups such as Privy, Oy, LinkAja, and ModalRakyat.

Meanwhile, Telkom has been the driving force behind SOE digital transformation efforts at large. Since 2016, MDI has created multiple in-house synergies for its parent company and also cultivated a slew of highly profitable portfolio exits.

These included Melbourne-based Whispir’s IPO on the ASX, Naspers’s acquisition of Red Dot Payment at a valuation of US$65 million, and the acquisition of Singapore-based cloud communications platform Wavecell by US-based 8×8 in a deal worth approximately US$125 million.

Also Read: MDI Ventures names Donald Wihardja as its new CEO, aims to announce new funds this year

Sandhy Widyasthana, COO of MDI Ventures, commented: “SOEs and tech companies can establish symbiosis by allowing startups to instantly access large corporate clients and their consolidated networks of consumers. Meanwhile, these startups will furnish state-owned companies with value-added digital services that will help them adapt to a rapidly changing business landscape in Indonesia. This also means startups can potentially have more exit opportunities later on.”

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Image Credit: MDI Ventures

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Singapore’s edutech startup Doyobi announces US$1M in funding from 500 Startups, others

The story: Singapore-based edutech startup Doyobi has raised US$1 million in funding.

Investors: 500 Startups and Xoogler Angels.

What is Doyobi? : Launched early this year, Doyobi is an online school for kids which offers coding courses that are supported by Google, the Singapore government, as well as educators from around the world. It uses videos, quizzes and projects to make teaching and learning fun and easy.

More about the story: Some of the companies partners include Tutor ID (Brazil), Coding & More (India), Galileo (US), Tenopy (Singapore).

Investment in edutech companies have also gained a lot of interest and according to Holon IQ has grown from US$500 million in 2010 to US$7 billion in 2019.

“VCs have been looking at edutech in a big way even pre-COVID-19. Asian parents spend more on their children’s education than sometimes even food – but the pandemic has been an accelerator of this – governments and parents see how powerful alternative platforms such as Doyobi can be. We’re grateful Doyobi chose us to be one of their partners to provide scalable education solutions for our children’s generation,” said Khailee Ng, Managing Partner, 500 Startups.

Also Read: Ecosystem Roundup: Anchanto raises US$12M; MAS earmarks US$182M more to boost fintech innovation; How Tiki manages to keep employee churn rate healthy

Lightspeed India closes US$275M fund for early-stage companies

The story: American venture capital firm Lightspeed has closed US$275M of its new fund Lightspeed India Partners III from global institutional LPs.

“The new fund is the biggest for India and will enable Lightspeed India Partners to make early-stage bets on more than two dozen startups in the region,” said Hemant Mohapatra, a partner at the firm.

Where it will invest: Early stage, seed, and Series A companies from India

How it will support startups: By leveraging its global network, building customer partnerships, talent acquisition and growth capital. Some of its portfolio companies include Byju’s, Indian Energy Exchange, Oyo, ShareChat and more.

About Lightspeed: It is a multi-stage venture capital firm which invests across several stages and sectors in India, including technology-led businesses as well as non-technology sectors like advertising and media, business services, financial services, healthcare, education and retail. It currently manages more than US$10 billion across global Lightspeed platform.

Lu International partners Kasikornbank to develop Thailand’s online wealth management platform

The story: Singapore’s Lu International has partnered with Kasikornbank, one of Thailand’s largest banks, to establish an online wealth management platform for retail investors in Thailand.

Behind the partnership: Lu International will leverage on Kasikornbank’s wide customer base in Thailand whereas the Thai bank will use Lu International’s technological capabilities and experience in doing business to help address the financial services gap in the market.

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Image Credit: Doyobi

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At the recent Against All Odds Startup Summit 2020 online conference by Freshworks for Startups, Saleswhale Co-Founder & CEO Gabriel Lim explained how he and his team built a global SaaS platform from Southeast Asia (SEA) with a US$1 million annual recurring revenue (ARR).

But he began his presentation by dubbing his presentation as a “glossary of f*ck-ups.”

“We broke every single rule there is about building a startup,” he pointed out. “But life is not linear and we made tons of mistakes.”

Based in Singapore, Saleswhale builds AI assistance for demand generation. Lim wrote the first lines of codes for the platform when he noticed the disputes faced by sales and marketing teams, where the leads generated by marketing teams are often deemed unsuitable by the sales team.

A Y Combinator alumnus, Saleswhale has gone through the journey and lived to tell the tale. So here are the five things that Saleswhale has learned about building a global SaaS platform from Southeast Asia.

1. You have to decide about being a global SaaS company since Day One

Lim began by explaining how for many SaaS startups based in SEA or APAC, their earlier customers are usually the people in their own network. While this is not inherently a bad thing, these startups have to be careful as it might prevent them from building a product that suits the market that really matters: the US.

“For example, we did not realise how important it was to be integrated to Salesforce — this is because we have been so focussed on Asian users,” Lim elaborated.

Also Read: AI sales assistant Saleswhale raises US$5.3M Series A round led by Monk’s Hill

Which leads us to the bigger question: Why is it so important for Saleswhale to enter the US market?

“Because you should become a dominant player in the US before you can become a global player,” Lim answered.

2. In SEA and APAC, avoid sales-led go-to-market (GTM) motion

Lim spoke of the time when the company experienced a decline in their sales, and he attributed this to its lack of proper marketing motion.

“We did not have a proper product-led motion; a lot of it was led by sales,” he said, stressing on the importance to have a consistency in marketing, lead generation, or some kind of virality in one’s own product.

“It’s going to be extremely painful to get a sales-lead business from APAC because, number one, we do not have the talent density here … Number two is if you’re selling to the US market, this means a lot of 2 AM and late night costs,” Lim continued.

3. Just because you do something, doesn’t mean you should do it

To give context, Lim explained about the one-time Saleswhale overgrew its team. Labour in APAC is relatively cheaper, and whenever problems arise, the company found itself hiring more people as an immediate solution. This ended up with the company having a massive but ineffective team structure.

“If I could turn back time, I would become more thoughtful before I grew the headcount too quickly,” Lim said.

4. Be shameless about learning

As he continued to stress on the importance of looking towards the US market, Lim said that it is crucial for founders of global SaaS platform in SEA to reach out to those in the US. This means doing cold calls and email to their US counterparts to ask questions about building a team and many more.

“In Singapore and APAC, there are just not too many SaaS veterans to learn from. Even the investors may not have that deep of a knowledge,” Lim opined.

Doing outreach can help shorten the learning process for startups.

“If you don’t do this, you’re taking a lot of execution risks,” he stressed.

Also Read: Y Combinator startup Saleswhale raises US$1.2M to automate sales processes

5. Another one related to talent: Hiring the right people

Hiring a capable person is not enough; a global SaaS platform should also hire ones with the right kind of capability. Lim dubbed this as “an expensive mistake that can take back your growth by one year.”

For example, Saleswhale used to hire executives from major SaaS companies with regional HQ in Singapore, but this turned out to be a mistake. Why? Having worked in the regional HQ, these executives are accustomed to operating based on the directions they received from the main HQ.

“This does not transfer well to a startup where you really have to reinvent your playbook from scratch,” Lim said.

Related to the previous points, Lim suggested hiring talents directly from the US, something that remains feasible even during the COVID-19 pandemic due to remote working. But what if a startup does not have the resource to do this?

“It is better to promote someone internally and push them to learn as fast as they can,” he closed.

 

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