Malaysia’s clean energy industry is in a state of flux.  Ambiguity remains with the end of the Net Energy Metering (NEM) 2.0 scheme and the entry of big players.

Here we unravel some of the scenarios happening within the clean energy sector in Malaysia and reveal an independent player’s perspective, even amidst rising COVID-19 cases which have impacted all businesses.

End of Net Energy Metering Scheme (NEM) 2.0 signals uncertainty

Since January 2019, Malaysia’s current NEM2.0 scheme has allowed excess solar photovoltaic (PV) generated energy to be exported back to the grid on a “one-on-one” offset basis, meaning full returns on every kiloWatt generated. Its quota of 500 MWp ends December 31 this year.

It is highly beneficial to end-users operating in industrial, commercial, residential and agricultural sectors as excess solar energy will be directly offset to one’s electricity bill. The excess energy will then be recorded in credit form with the validity for 24 months.

Suffice to say, the uptake of NEM has grown steadily resulting in 102 megawatts (MW) generated in 2019, compared to only 27.8MWp produced in 2016 and 2018.

However, though NEM3.0 has been brought up, no further details were released. Are businesses better off signing up for NEM now and enjoy its perks or are they better off waiting to see details of its next iteration?

Household names join the clean energy bandwagon

Big players who see potential in clean energy are jumping on the bandwagon, as they see the possibility that it could one day replace traditional oil and gas.

The national oil company, Petronas, is already pivoting to clean energy after it posted an MYR21 billion (US$5 billion) loss due to weak oil prices.

Also Read: “We want to make the clean energy space more dynamic”: Electrify CEO Martin Lim

In addition, TNB has also made its move. Their latest ventures are a gain of majority equity interest in one of the largest solar platforms in the UK, Vortex Solar, and the commencement of operations of its second large-scale solar (LSS) project in Kedah just this month.

Going into Smart Energy Management

With uncertainty looming in all directions, how do independent players such as Plus Solar operate within the increasingly competitive clean energy landscape as uncertainties caused by the pandemic?

As a clean energy solutions provider which began with an investment of MYR100,000 (US$24,000) in 2012, it was with much toil, sweat and tears that we moved up to MYR150 million (US$36 million) revenue in just eight years.

Now 150 people strong, FYR 2020 was a big year for us as we recorded a 200 per cent jump in revenue but the pandemic came forcefully and created uncertainty within the ecosystem. This made us realise the need to go beyond traditional solar to survive.

In one of our key pivots which was accelerated by the pandemic, we took to tech, not limiting our offerings to just traditional solar solutions. We were able to create a smart energy performance management system (EPMS) called Source.

Though it was in the works for a few years, the pandemic showed again to be the true catalyst, expediting its roll-out to just weeks after the movement control order (MCO).

Source makes use of AIoT (AI and IoT), through sensors feeding real-time data to a central computer that learns and adapts, then eventually making smart, automatic energy decisions possible for any building. It is akin to a Fitbit, always monitoring and making improvements, and in this case, it is to a building’s energy usage performance.

Since then, many of our clients have managed to save up to 25 per cent of their operational costs by leveraging this system, and either save on bottom lines or channel their funds to more urgent areas of their businesses.

The next iteration

We have also been actively seeking to educate clients about the end of the Net Energy Metering (NEM) 2.0 scheme and take advantage of its 500 MWp quota, before it ends this December 2020.

Barely three months to go to the end of the year, NEM applications must be approved by year-end to qualify for the one-on-one compensation basis for surplus solar energy. It takes approximately 60 days for an application process thus applicants have barely 30 days before the end of the year to take advantage of the NEM2.0 scheme.

Also Read: Intelligent energy management startup wins She Loves Tech Singapore 2019

The offset of excess energy generated to the national grid is the main benefit to end-users, from residential to those operating in energy-intensive applications such as the industrial, commercial, and agricultural sectors.

Users can look forward to reduced electricity bills by generating one’s own clean energy, an increase in property value, as well as a reduction in carbon footprint.

In the months following the movement control order caused by the COVID-19 pandemic, we have successfully secured many notable brands who are taking advantage of the NEM quota to secure their cost savings and hedge against escalating electricity tariffs. Any brands that wish to ensure the same for themselves are encouraged to act on this opportunity for long-term benefits.

Though it will end, SEDA has announced the next version of this scheme, NEM3.0, though its details are not. We hope it comes as close to the same one-on-one offset basis as before so that solar energy is made even more accessible to Malaysians.

Seizing opportunity in uncertainty

Truth be told, the clean energy industry has never been more vibrant – with competition rife, end consumers will be the beneficiaries of price wars.

While we are just one of the many players here, we have managed to remain relevant to our clientele through constant innovation in our “Fitbit for buildings” as well as seizing opportunities by our push towards securing the NEM quota for clients before the end year.

These past months, we have received very good feedback from customers on our innovation with notable clients such as Tan Kian Huat Fishery and Shell MarkMaju who have experienced savings of up to 25 per cent when it comes to heating, ventilation and air conditioning (HVAC).

What the industry begs for is a supportive ecosystem, which we hope to see rolled out by the Sustainable Energy Development Authority (SEDA), with NEM 3.0 announced officially as well as further positive allocations and policies announced in the upcoming Budget 2021 by the Government.

As the pandemic goes on, Plus Solar has seized opportunities through pivoting, always towards client needs. It is clear that willingness to adapt is the answer to keeping and gaining market share for industry players of any size.

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2020 has set in place a different reality. Suddenly, there was no more waking up early and rushing for a last-minute flight, riding through a new city in a blur of cab rides from meeting to meeting, before packing for the first flight back the next morning.

Working from home (WFH) is the new normal, so how do you transpose that real-world interaction and chemistry to a video call?  How do you Pitch from Home?

Founders get anxious about this when they realise they’re not going to see investors at a conference or networking event. Ironically, with significant time saved from commuting and flying, many investors actually have more time now for meeting founders.

But it doesn’t mean that getting a meeting will be easier. Founders still have to cut through a barrage of webinar and Zoom invites. So here’s my quick advice on getting a “yes” to a meeting, and making it a home run.

Getting the Meeting

Make it an easy “yes”

Investors can’t take every meeting request. That’s why warm introductions are important. I am immediately more keen if you are referred to by another founder or investor whom I already respect.

Look through your name cards, spend time reconnecting with founders who have raised Seed and Series A rounds, and earn the right introductions.

If you’re attending a virtual webinar, ask well-researched questions and connect with the investor on social media after. If you’re reaching out cold, I’m much more likely to respond if the context connects it to a webinar I just participated in.

Also Read: Getting your story straight with a pitch deck flow

Send your deck

Before an investor will take a meeting, they may need to qualify a few things first. Does the stage of your company align with their investment strategy? Does the product/solution fit within the fund’s thesis? Is there any conflicting overlap already in the portfolio?

Your deck will help answer these questions quickly for the investor – so if they ask for a deck, don’t feel like you lost an opportunity to pitch, realise it can be a door opener.

Before the Meeting

Really get to know your investor

Once you’ve secured a meeting, our Indonesia-based Associate, Andri Wardhani, recommends analysing the fund’s investment mandate (i.e. geographical coverage, ticket size, stage, space). Look up podcasts, articles and interviews by the team to find patterns of their interest.

If you’re a brick and mortar startup, get creative

Participate in virtual industry roadshows, take warehouse videos and send product samples to your prospective investors. Anything to help them understand your day-to-day operations (short of a visit to your facilities).

Rehearse team dynamics

A startup’s team dynamic and culture reflect more on the potential ahead, more than any deck. Try to replicate your culture online. Coordinate early on who presents at which parts, and who answers certain questions.

Invest in a good quality setting

A little viewing comfort goes a long way. If you’re doing lots of calls, you may want noise-cancelling headphones.  Make sure you have good WiFi (or take advantage of Zoom’s phone dial-in feature to pair it with your video).

Take five minutes before every meeting to ensure that your set-up is working.  I also recommend if you’re gonna pitch, watch a few funny videos just beforehand to pick up your energy and get your brain in a positive mood.

Also Read: Pitch deck fundamentals: What you need to include to build an effective one

During the Meeting

Read the room

In a physical space, you can feel the energy of the room — even if you’re not consciously aware of it. Body language, eye contact, nodding and vocalisations are all clues to whether a founder is nailing the pitch.

These are mostly lost in online meetings, where you don’t always get to see or hear behind the screen. And when you are unable to grasp when an investor is engaged or distracted, it is easier to miss the mark.

Uses pauses

To make an online pitch engaging and conversational; keep it short, sweet, and pause to check in after every major point. Our Senior Associate, Jeffrey Chua, a self-proclaimed actor, advises founders to think of pitching as a play of seven acts (market, problem, solution, product, traction, revenue model, and team).

Have a short intermission between each act. Take a breath and gently ask investors if they have any questions. Address them immediately instead of leaving them to the end of the presentation.

Closing the Meeting

Always ask about the next steps

Before the end of every call, be sure to inform the investor of your fundraising time frame and your planned process. Find out what the investor’s usual process is, and ask how they will move forward. Their answers should give you a good gauge of how interested they are, and if they think you’re a good fit.

I hope it comforts founders to know that investors don’t necessarily prioritise in-person meetings in the investment process. Even before the lockdowns began, it was quite common in this region to meet mostly online – and even back founders without meeting them in person.

And as the pandemic wanes, I can imagine the industry retaining many aspects of the “new normal”. There could be much lower expectations of in-person meetings as investors and founders grow comfortable with building relationships through Zoom calls and Whatsapp messages.

Bottom line is: a great team with a great product wins every time. Keep the tips above in mind, keep working at it, and investors will be asking for your time.

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2020 has been a rollercoaster year for businesses in Singapore with COVID-19. Since PM Lee Hsien Loong’s announcement for the Circuit Breaker (CB) on April 3, there have been strict, but necessary restrictions put in place that has affected the way we live and work.

During this period where many modes of operations that were offline in nature had to be curtailed, certain industries such as aviation and tourism have taken big hits. A recent report in August stated a -5 to -7 per cent drop in Singapore’s GDP, as the country slips into a technical recession, making 2020 the worst performing year in the nation’s history.

Manufacturing output went down 6.7 per cent in comparison to 2019, while the unemployment rate rose from 2.4 per cent in March to 2.9 per cent in June, and retail sales dropped 27.8 per cent on the year in June as well. 

However, other businesses such as e-commerce and delivery platforms enjoyed a spike in sales, proving that the pandemic isn’t bad for all business. The central theme that has been essential for business continuity and success during this period is the ability to go digital and pivot.

Local company EmpatKali enables interest-free instalment payments for offline and online transactions with a “buy now, pay later” model; has been bought over by Australia-based Afterpay. While mental wellness platform Safe Space has been making waves with online counselling as a viable option and strong supplement to the traditional face-to-face approach.

Heading into 2021, businesses that took a passively defensive stance earlier on are realising that the battle with COVID-19 will be ongoing, and the new normal is being defined as businesses react to new developments. As such, businesses have to take the initiative.

Also Read: How e-tailers should prepare for Singles’ Day amidst COVID-19

For entrepreneurs who are weathering the storm, or for those who are thinking of starting this journey, here are five things to consider before taking the plunge.

Get your house in a legal order

Establish a good legal foundation for the business. Shareholders’ agreements, founders’ vesting agreements, and IP assignment agreements are some of the things that need to be made clear to keep things transparent, and for the key people involved to be accountable.

Just as it is important to know how you’re getting your capital, knowing the responsibilities, obligations, and liabilities will make things easier in the case of an exit or dispute.

Understand your financial capital

The Singaporean government has been proactive in making sure existing businesses can stay afloat. Upwards of S$100 billion (US$73 billion) through four stimulus packages this year, and an additional S$5.8 billion (US$4.2 billion) heading into Q1 of 2021 to support the economy.

Before crafting a capital budgeting plan, be sure to educate yourself on what grants or schemes are available to you. In good times this process for a business would be akin to a marathon, though the pandemic climate makes it more challenging, the principles are the same – plan for the long run.

Do not be hasty in deciding on a capital source without weighing your options. Though raising funds through investors and VCs has been a route that startups, keep in mind that not all investor money is good money. Know what you’re getting into, and what is expected of you if you decide to take that round of funding. 

Go at a workable pace

WFH (work from home) arrangements has become the default working arrangement that has led to additional challenges.

A recent report by Limelight Networks stated that 74 per cent of Singaporeans are more productive with WFH arrangements, but that came with longer working hours. Only 32 per cent of Singaporeans surveyed wanted WFH to be permanent, and 51 per cent preferred the flexibility to choose to be in the office or at home.

Also Read: Asia’s food delivery potential is set to unlock post-COVID-19. Here’s why

With WFH, entrepreneurs need to understand that different home setups and conditions make the WFH experience different. As exciting as starting a new business can be, the risk of burning out with extended working hours and always being connected is very real, and WFH can be rewarding, and not disruptive.

Be clear with your working hours, treat yourself, your partners, and your colleagues well. As with financial capital, plan for the long run.

Check your alignment, then scale up

Founders’ discord is real, between 60 per cent to 70 per cent of startups fail due to misalignment between founders and their teams. We have worked with startup founders who say one thing when they are together, but have completely different sentiments when approached alone.

Address whatever irks or bothers you. Small annoyances become much more than that if they occur more than once, and when the stakes become higher there’s more to lose that could have been avoidable.

For some startups, the real test begins when they see a degree of success. A common pitfall is when entrepreneurs over-extend themselves. Whether it is through adding new features, new products, or expanding the team, scaling up is not the only way to make a business better. We recommend taking a look at the book Small Giants: Companies that choose to be great instead of big, where there are examples of companies that have succeeded by focusing on being great.

Also Read: Singapore tech entrepreneurs raise funds to help Indonesian daily wage workers during COVID-19

Be ready to adjust, or be ready to quit

Never take things for granted, situations and context will change and taking stock of the situation regularly goes a long way. Like how bubble tea chains partnered with other food and beverage providers resulting in better sales during the period. Moving into the new normal businesses have to be ready to make adjustments when the time calls for it. 

For the businesses who are struggling and might not see any end in sight, the new normal could mean a new beginning, and quitting now to regroup is not a bad thing. In some cases, a full stop comes before the right pivot and could be the very thing that leads to success.

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Of all the tech industries, the deep tech industry in Singapore has gathered a large amount of interest from the government in recent years. Earlier this year, the government announced a S$300 million (US$221 million) addition into Startup SG Equity as proof of its support for the deep tech scene.

There are many reasons for this excitement. One of them is because of the technology’s immense potential to solve real-world problems.

Dr Lim Jui, CEO at SGInnovate, defines deep tech as unique, cutting-edge technologies that demand a high degree of specialisation from both its inventors and practitioners. At a working level, it means technologies derived from relatively recent research with the potential for strong intellectual property (IP) protection

These are emerging technologies that could entail elements of AI, machine learning, and blockchain that have the potential to solve bigger issues surrounding the world. For example, medical devices or drugs that can increase lifespan, AI that can forecast natural disasters, or clean energy solutions that can help mitigate the risks of global warming.

“Let’s take Tesla and SpaceX in the US, and Creative Technologies in Singapore as examples. These companies have created industries where none existed before. That’s the power of Deep Tech. SGInnovate’s mission is to pave the way for the next generation of ‘Creatives’, ‘Teslas’, and ‘SpaceX’s’, creating high-growth, intellectually stimulating, and satisfying employment for our future generations,” Dr Lim says in an interview with e27.

Having spent most of his career in the business of innovation, Dr Jui says that he has seen firsthand how Singapore’s deep tech ecosystem has evolved.

“From research being licensed to foreign MNCs, to the emergence of digital startups addressing specific technological problems, to a vibrant community of startups spanning different areas of deep tech. There is now a much greater variety and depth in our startups, making for a richer ecosystem that has attracted more investors,” he explains.

Also Read: Beyond COVID-19: A new era for deep tech startups

While deep tech is a sector that has, over the past year, been largely funded by government organisations due to the volume of investment and risk involved, the tables have turned. Plenty of investors are now taking more interest in the technology.

Currently, SGInnovate has funded many deep tech startups. Some of which include digital therapeutics startup Biofourmis, wireless laser communications startup Transcelestial, and MedTech startup See-Mode Technologies.

To talk more about the state of deep tech in Singapore, Dr Jui shares insights into Singapore as a rising hub for this industry, the organisation’s initiatives to boost deep tech, investor perks, and more.

Why Singapore?

Singapore has all the key ingredients of success for deep tech growth – a strong education system with world-class universities, a robust pool of scientific and technical talent and thought leadership in medicine, finance, and engineering.

Add to this is a friendly business environment that has a track record of strong IP protection, and consistent leadership emphasis and financial support for the startup ecosystem, it is hard not to be bullish about Singapore’s deep tech prospects.

With the increasingly vibrant Singapore startup ecosystem, the overall investment climate and opportunities for deep tech in Singapore is set to grow in the future.

Also Read:  National University of Singapore to spend US$18M to launch 250 deep-tech startups

Investing in deep tech

Deep tech investment is a high-risk, high-return endeavour. Traditional roadmaps for a business model or market conquest may not apply. And that’s on top of the technology risk and typically higher capital requirements.

So due diligence needs to be married with imagination. Yet, the history of science and technology has proven that those willing to take the plunge early will reap the biggest returns.

The best way to attract investors to invest in deep tech companies is to show them that you can do good and do well. You can make money from deep tech investments.

Just as an indication of the investment demand for Singapore deep tech startups, SGInnovate has invested about US$36 million (S$50 million) into about 70 Singapore deep tech startups over the last four years, and these companies have gone on to raise over US$479 million (S$650 million) in venture capital.

I believe we have largely succeeded in demonstrating that high returns can be generated, and we count on a strong and growing network of co-investors both locally and internationally.

It is also worthwhile to note that the Singaporean government is very supportive of investors in the deep tech field. The government had declared a US$221 million injection into Startup SG Equity for deep tech startups during its Budget 2020 announcement.

A career in deep tech for the non-techie

If someone has an interest in a deep tech career but is unsure about where to start, there are talent programmes that they can take part in, to gain the needed technical and industry skills for the deep tech industry.

Even if one comes from a non-STEM background, there are general tech roles (such as in software or UI/UX development) and other business-critical roles available within the industry.

Due to the nature of the technology, technical roles are always essential as they build their solutions and continue to maintain momentum in their technology development roadmaps. But as these startups mature, they will also need to build up their core business functions such as sales, marketing, operations, and legal.

Also Read: SOSV, 500 Startups invest US$2.55M seed round in deep tech startup SEPPURE

It is essential to adopt an entrepreneurial mindset which means always having an open mind to try new things, learning and up-skilling, as well as being flexible and adaptable during challenges.

Be ready to embrace failures, learn from it and restart again.

Upskilling workforce for Industry 4.0

Since the beginning of the pandemic, SGInnovate has been prioritising efforts around creating more deep tech job opportunities to support the community, working closely with partners and government agencies to explore new initiatives.

Some of SGInnovate’s initiatives for deep tech job seekers are:

Summation Apprenticeship Programme: A programme that matches top talent with deep tech startups with projects in emerging technologies such as AI, cybersecurity, IoT, robotics, quantum computing, and more

Infinity Series: A programme for undergraduates looking for roles in deep tech startups.

The New Frontier: A talent showcase in October which offered over 200 job openings in more than 30 startups and organisations.

Power X programme: A full-time traineeship programme for Singaporeans that blends classroom and workplace learning to equip them with skills for a new career in deep tech space.

Founded in 2016, SGInnovate is a private limited company wholly owned by the Singapore government; it aims to build and scale deep tech startups into high potential companies with global impact. Its Deep Tech Nexus Strategy is focussed on adding tangible value to the deep tech startup ecosystem in two key areas: development of Human Capital and deployment of Investment Capital.

SGInnovate seeks to back entrepreneurial scientists through equity-based investments, access to talent, and business-building advice.

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Image Credit: SGInnovate

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Indonesian telecom giant Telkom Group has announced the launch of Batch II, 2020 of its startup incubation/acceleration programme, Indigo Creative Nation (ICN).

Registration is open from October 1 to November 13.

Also Read: Rethinking Telkom Group’s plan to invest in gojek

An on-desk selection process will be conducted by Telkom from November 16-19 and a pitching session from November 24-26.

The programme will primarily focus on six categories — logistics, finance, education, travel & tourism, agriculture and health.

Startups that successfully complete the programme will receive up to Rp. 2 billion (US$130,000) each, besides mentoring and synergy programmes provided by Telkom.

In addition, participants will also get access to 180 million Telkomsel users, 7.5 million IndiHome users and 200,000 corporate customers.

“ICN is our annual initiative with the aim of increasing competitiveness, independence, and national economic growth through the development of a creative digital industry. For Batch II, we will look for startups from six categories, so they can explore digital businesses that have the potential to become new engines of growth. In addition to funding, startups will also get training activities with well-known mentors who we have curated professionally,” said Fajrin Rasyid, Digital Business Director of Telkom.

The first batch 2020 was started in May, and at least 201 startups had registered for the programme. Telkom conducted a screening process to select 35 finalists, of which 18 startups were inducted into Batch I.

Also Read: PrivyID will integrate its service into Telkomsel’s platform

Launched in 2013, ICN has fostered 31,748 digital talents spread across 17 DILos (Digital Innovation Lounges) throughout Indonesia. At least 177 digital startups have entered the programme located at 4 DiVa (Digital Valleys), namely in Jakarta, Bandung, Jogja and Makassar.

ICN’s alumni include PrivyID, Opsigo, Run System, Goers, Nodeflux, Muslim Life, Osman, OnTruck, CyberArmy and Bahaso.

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Image Credit: Telkom Indonesia

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At any given moment, at least half of the top 10 ranked cryptocurrency exchanges are Asia-based exchanges. A recent report found that Asian cryptocurrency users are responsible for over 31 per cent of all cryptocurrency transacted in the past 12 months.

China alone controls 65 per cent of Bitcoin global hashrate, making China the jumping point for most new Bitcoin activity. 

Asia has always been the most active and important region for the industry, as deep-rooted technology and gaming prowess create a natural fit for digital currencies. This has led to many exchanges, service providers, and ancillary companies being set up in Korea, Hong Kong, Thailand, Japan, and other top markets. 

Unfortunately, a consistent stream of regulatory pressure and security incidents has caused one blow after another for Asia-based exchanges in 2020. The landscape is clearly changing as regulators feel international pressure and sophisticated hackers look to exploit security loopholes.

During this time, Decentralised Exchanges (DEXs) have exploded in popularity, with daily volume exceeding some of the largest centralised exchanges. 

The implications of these changes are clear. Users want more control of their funds and are risk-tolerant enough to “gamble” their funds on decentralised finance (DeFi) yield strategies versus risking them on centralised exchanges that have control of a users’ private keys. We are witnessing a battle taking place between multiple stakeholders. 

Also Read: How bright is the future of cryptocurrency?

String of unfortunate events for Asian exchanges

On September 26, Singapore-based cryptocurrency exchange KuCoin announced that it had been on the receiving end of a major hack. As a result, its Bitcoin, Ether, and ERC20 hot wallets were compromised, leading to an estimated US$240 million loss of customer fund.

Kucoin took swift action, encouraging projects to conduct token swaps in order to deem stolen assets worthless. Most projects (Orion Protocol, Aleph.im, Akropolis, Velo Labs, etc.) complied, helping reduce the total loss. 

Interestingly, it wasn’t only centralised projects that came to the rescue. Some of the affected DeFi token projects also offered assistance, with varying degrees of community involvement that questioned the truly decentralised nature of such protocols.  

Just five days later on October 1, Hong Kong-based BitMex, one of the industry’s leading futures exchanges, was charged by the CFTC for illegally operating the exchange and allowing US customers to trade without the proper KYC/AML requirements.

A few weeks later, SEC Chairman Hester Peirce, nicknamed “Crypto Mom”, announced a warning to other global exchanges. This solidified the US’s stronghold on the industry, even for exchanges domiciled in Asia with the majority of their user base in Asia. 

Lastly, on October 15, Maltese-Chinese exchange OKEx halted trading after reports surfaced that the company’s founder was under investigation by the Chinese government. Similar to the other news, this caused a mild panic in the markets with Bitcoin dropping three per cent following the news break.

It is important to note that this is not the first time OKEx has been an under-reported investigation and these kinds of inquiries are not uncommon in crypto. Just a month earlier, Korea-based Bithumb had its offices raided twice by local police forces. While not unique, these events all happened within a six-week span, showing a more recently complicated landscape for exchanges. 

Also Read: 5 reasons why crypto exchanges need to be decentralised

Decentralised exchanges solve industry challenges

A decentralised exchange or protocol that has a single point of failure, be it through admin keys or a founding team at risk of SEC censure, is not sufficiently decentralised to survive. It was the risk of legal proceedings that prompted IDEX to enforce KYC for traders.

The move proved a death-knell to the DEX, which is now a shadow of its former self, having been usurped by Uniswap – the industry’s most popular DEX at the moment.

To solve this problem, and create a truly censorship resistant trading environment, a number of new DEXs have sprung up aiming to create decentralised platforms that can survive black swan events, be it litigators or hackers.

Chief among these is Injective Protocol, which is pioneering a layer-2 DEX for cross-chain derivatives trading and is debuting on Binance Launchpad this month. Its promise of high-speed non-custodial trading, including derivatives products, might be enough to tempt traders away from centralised platforms such as Deribit and BitMex. 

When thinking about DEXs, it is only natural to think about DeFi as both go hand in hand. Despite significant differences to centralised exchanges and their non-custodial and community governance nature, DeFi projects may still be susceptible to regulatory action, if deemed necessary, due to problems surrounding central authority and administration. 

Many DeFi projects continue to build up levels of decentralisation within their protocol, helping to protect against such enforcement. However, unless DeFi platforms including DEXs can sufficiently improve decentralisation across the full spectrum of their projects, significant, if not existential, threats remain.

On the bright side, the CFTC action serves to emphasise the importance of actual decentralisation, pushing cryptocurrency projects further in that direction to avoid regulatory risk. In a week where BitMEX was cut down to size and Kucoin suffered a massive hack, the need for a truly decentralised exchange such as Injective has never been greater.

Also Read: XanPool launches platform to enable P2P transactions from local currency to cryptocurrency in SEA

The goal is to bring the best of what the industry offers, including its users around the world, and make an accessible ecosystem that is borderless and safe. This is where the importance of the product comes into play. An exchange could have a flawless track record for years and still suffer from an unforeseen event that could jeopardise user funds in the meantime. 

Expect to see more DEXS come into play in Asia, with a more critical user base that understands the technology, including the limitations that a DEX might have below the surface.

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VIISA, a seed-stage fund that invests in startups from Vietnam, today announced the two startups that have been selected to the eighth batch of its accelerator programme.

The selected startups will receive a follow-on funding of up to US$200,000 from VIISA Investment Track if they manage to obtain funding from an outside lead investor.

Other than that, the programme –which is held fully online– is also offering startups the opportunity to connect with corporate partners and prospective investors throughout the three months.

“It is truly inspirational witnessing Vietnamese founders remain thriving throughout the COVID-19 pandemic time. Their strong determination in working with VIISA programme has once more put more pressure on the value creation philosophy VIISA has committed to,” Hieu Vo, CFO of VIISA, said in a statement.

The startups of Program Batch 8 and other startups of the VIISA alumni will be showcasing their businesses in December 2020.

Also Read: Algorand Asia Accelerator debuts 10 blockchain startups that aim to innovate under Finance 3.0

The two startups selected for this programme are:

DoctorBear

A mobile app platform that enables users to consult with specialised doctors via video call and offers various test packages according to the treatment plan. The DoctorBear team consists of a group of medical doctors with over 15 years of professional experience and an in-house technology chief. It has a long-term goal to expand to Southeast Asian market.

DrobeBox

A fashion tech startup that offers clothing subscription service and uses AI to recommend clothes to women. In addition to renting the clothes, DrobeBox gives an opportunity for the customers to own any item they love after fitting. The team believes that AI technology “can recommend clothes to women better than themselves.”

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Image Credit: VIISA

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Startup Studio, the accelerator runs by the Indonesian Ministry of Communications and Informatics (Kemenkominfo), announced the 20 startups that have been shortlisted into its programme.

Targetting early stage startups, Startup Studio said that it has received 668 applicants from 32 provinces in Indonesia. From October 5 to November 26, the startups will take part in a programme that includes a series of online events, such as one-on-one mentoring, brainstorming session, networking event, and a pitch day.

The startups are:

AgenKAN
An integrated fintech platform that aims to reach out to the underserved communities in Indonesia.

Biteship
A one-stop platform for inter-city courier service.

Career Support
A social enterprise that empowers schools by giving them career centres and helping their students.

Feedloop
A content-builder platform that enables users to create shareable, interactive stories.

Also Read: In brief: Silver Lake invests in Byju; Launcho Ventures launches startup studio in S’pore

Halofina
A mobile financial advisory app.

Jejak.in
A platform that enables users to plant a tree and monitor its growth to help fight climate change.

Justika
An online platform that enables legal consultation at a more affordable fee.

Keeppack
An e-commerce fulfilment platform.

Larik.tech
A code walkthrough platform built to simplify code understanding.

Moodah
A mobile accounting platform for SMEs.

Nectico
A platform that aims to enable the digitalisation of cooperatives in Indonesia.

Rakamin Academy
A platform that helps professionals to get training and networking.

Also Read: Singaporean film distribution startup Viddsee is becoming a production studio

Rekosistem
The startup provides consultancy services that focus on waste management projects.

Payo Kepasar
A mobile platform that enables on-demand shopping and delivery service of fresh produce.

PTS.SC
A platform that enables end-to-end supply chain management.

Schoters
A platform that helps international students to prepare for their study abroad.

Tumbasin
A platform to help customers shop in wet markets.

Verihubs
A platform that uses AI to help with the customer identification process.

Waterhub
The startup builds drinking water refill station that is connected to a mobile app.

Also Read: This Asia-based startup has just teamed up with three major Hollywood studios

Woobiz
A platform that helps users to sell goods online and offline.

The Startup Studio programme followed the launch of other initiatives by the ministry to support the local startup ecosystem, including Gerakan Nasional 1000 Startup and Next Indonesia Unicorn (Nexticorn).

In the latest edition of Nexticorn, Minister of Research and Technology Bambang Brodjonegoro explains how Indonesia wants to support startups differently in 2020. While previously, the task of working with startups was dominated by Kemenkominfo, starting Q4 2019, Ministry of  Research and Technology (Kemenristek) will also take part in it.

“We are more upstream, responsible to create as many startups as possible. Kemenkominfo will be more on the downstream and infrastructure,” he said.

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Image Credit: Uray Zulfikar on Unsplash

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Klikdaily, an FMCG supply chain startup in Indonesia, is planning to launch an initial public offering (IPO) in the next three years, its Founder and CEO Amos Gunawan told e27.

The Tangerang, Banten-headquartered company is considering various stock exchanges in Southeast Asia for the IPO debut.

Also Read: What does Peter Thiel-backed Bridgetown’s IPO mean for SEA’s startup ecosystem?

The discussions are still in the initial stages, and the company is “actively communicating” with its investors and partners in this regard.

“At Klikdaily, we follow a culture of ‘don’t wait for the right time to do something as there will never be a right time. Just do it’,” stated Gunawan. “We hope to launch a successful IPO with the right support and business strategy and by expanding into many vital sectors.”

“Since the beginning, we have been focused on the right and strong business model and market fit, and we would like the public to support our growth even further. Supply chain is a vast market. By going public, we would like to bring the industry to the next level,” he shared.

Klikdaily is a one-stop solution for traditional mom ‘n’ pop stores to get various products from multiple brands with a competitive price. As on May this year, the firm claims to have served thousands of stores in 600 districts across Indonesia.

Klikdaily claims that its business grew more than 900 per cent in the January 2019-September 2020 period and its service is now available in every province, district and sub-district across Indonesia.

A few months ago, Klikdaily secured an undisclosed sum in Series A funding, led by Berlin-based Global Founders Capital (GFC). This round came less than a year after it secured pre-Series A from GFC, Pegasus Tech Ventures, FundedHere and Teja Ventures.

Also Read: ‘Companies shut down not because of crises but only when founders give up’: Joseph Phua of M17

According to Gunawan, Klikdaily plans to execute three innovation strategies that focus on sustainability and National Economic Recovery. These strategies will be carried out through locally-produced products (private labels), through an effective and efficient supply chain ecosystem and by providing financial support for MSME partners.

In the near future, Klikdaily, together with strategic its partner producers, plans to launch 25 private labels.

“We believe in the importance of building a sustainable business that continues to provide solutions for people. Based on a data from Supply Chain Indonesia (SCI), the sector has more than 12 per cent of average annual growth that contributes nearly US$70 billion to the nation’s economy in 2020. This means there is a huge market in the supply chain sector,” he shared.

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Image Credit: Klikdaily

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