Year: 2020

As a startup lawyer, I tend to see when things go wrong for companies and their founders more often than most people. To save you having to untangle easily avoidable issues, here’s a list of the most common pitfalls for startup founders.

The good news is that these issues are easy to avoid with a bit of planning.

Not giving love to your cap table

Your cap table needs to be accurate and mirror the formal share register. We have seen fundraising transactions postponed or even cancelled where founders have not been able to clearly explain their cap table to investors.

Warning signs that you might have a cap table issue looming:

• Inaccurate cap tables not showing convertible instruments at all, or incorrectly.
• If you’ve promised options or shares to people but not clearly documented these arrangements. For example, indicating to employees that they might get a certain percentage of the company in shares or options could end up being legally binding and yet confusing – a percentage of what and when??

How to avoid this pitfall? Keep track of both your cap table and your share register, whether using specific software or a simple excel spreadsheet. Only allocate options under a formal share scheme approved by the board.

Bonus tip: ESOPs and cap tables.

A common question we get from founders is, “how does my ESOP appear on my share register and/or my cap table?”

The answer is that options are not recorded on a company’s share register or on its public filings. However, cap tables typically include the ESOP allocation together with any other convertible instruments such as convertible notes or warrants. This means that your current share register might differ from your fully diluted holding (i.e. after accounting for your ESOP).

Not having vesting arrangements in place

It is a misconception that founder vesting is something that only investors like to see. Founder vesting agreements are key from the outset: Covering founders and also any advisors who are offered shares. Why? They protect your startup if founders or advisors move on quickly, by enabling the company to claw-back unvested shares.

Also Read: 8 common legal mistakes made by entrepreneurs

Having a large percentage of a company’s equity held by people who are no longer contributing is not efficient – those shares could be used to incentivise others in the business, plus new hires.

What to do: Get vesting agreements in place for founders and advisors. For founders, this should cover some, but most likely not all, of their shares.

If shares are to be issued to advisors upfront for future services, the company needs a mechanism to buy back some or all of those shares, not just if the advisor leaves, but also if they don’t deliver what was expected.

Signing the term sheet without negotiation

When doing a capital raise, most of the tricky legal and commercial issues are set out in the term sheet. Whilst term sheets are usually legally non-binding it is important to negotiate them with the help of a lawyer before signing.  It is difficult to get investors to go back on what was already agreed upon.

What to do: Engage a lawyer at the term sheet stage. An experienced startup and VC lawyer can review and provide comments on a term sheet in under a couple of hours.

This is a good investment if, as in most cases, it helps you secure more balanced documents and deal terms.

Bonus tip: Short form term sheets

Be wary of short-form term sheets that appear to leave all the key issues to the long-form transaction documents. Whilst you’ll probably sign this kind of term sheet quickly – the likelihood is you are simply delaying the real discussions until later.

If there are investor-friendly deal terms you’ll want to know early on in the process so you don’t waste time, and then not proceed with the deal.  For extra tips, watch this video guide on negotiating a series A term sheet.

Underestimating the time taken to fundraise

Documents are becoming standardised and financing rounds closing more quickly. That said, the process always takes longer than founders think. Series A rounds can take three months from signing the term sheet, especially where there are lots of moving parts (e.g. if you have a lot of investors to deal with or several existing shareholders).

Founders sometimes get ‘deal weary’ at the end of a long process and concede material points just to get it over the line. Therefore, have realistic expectations on the timeframe from the outset and, if necessary, start the fundraising process sooner if cash flow is tight.

How you can minimise the fundraising timeframe:

• Start early.
• Get organised. Set up and maintain an electronic due diligence folder (sometimes called a ‘data room’) before you’ve started the fundraising process.  This should contain all your indexed company documents, records, and signed agreements.
• Don’t leave the disclosure process until the last minute on a fundraising transaction – disclosure is critical to protect the company and founders against claims by investors.
• Use a complete checklist to streamline the closing process.

Making everything too complex

Speed and simplicity often carry the day. Startups can go wrong when they make things complex, especially when it comes to fundraising.

Warning signs: If the convertible note you are negotiating is now 20 pages or more, you’ve probably defeated the purpose of using a note in the first place.

If you are raising very small funding round but the investment is only drawn down in tranches and/or involves KPIs, you might well be speaking to the wrong investors.

How you can avoid this:

• Take the easy route where you can. Use standardised terms for convertible notes like the KISS but check with your lawyer on the terms – they can point out quickly the key points to negotiate (if any).

• Work with good series A templates such as the Singapore VIMA model documents and don’t try to reinvent the wheel.

• Raise a little less money if you can do so much more quickly on simpler terms.

Agreeing to harsh terms with early investors because you need the cash

Conceding material issues in early seed rounds can set a precedent in future fundraisings. It’s not the type of thing that you can ‘fix’ down the road.

For example, if your first round of investors ends up with a twice participating liquidation preference (which would not be considered to be market standard), your future investors are likely to ask for the same, or worse. This becomes more material as the funding rounds “stack” on top of each other of course.

Also Read: The biggest legal traps startups fall into

The same applies to control rights. For example, requiring all investors to approve certain board matters (rather than a majority) is inefficient and may encourage future investors to ask for the same (ending up in approval gridlock).

How you can avoid this? Think about the next round when you are negotiating the current one. Stick to market standards and spend time negotiating the key economic and control rights rather than issues that make little difference to your end goals.

Letting your record-keeping lapse

Bad record-keeping will cost you time, money and aggravation down the line and make you look disorganised when talking to investors.

Depending on where your startup is incorporated, you will have certain statutory and filing requirements.  In some countries (such as Singapore), you may have a company secretary who helps you with this.

Startups move quickly. One minute your company has a few ordinary shares held by a couple of founders, and before you know it there are investors, several classes of preference shares, convertible notes, and an ESOP.

What you can do to make it easier:

• Work with a company secretarial firm that understands the dynamic startup environment so that the paperwork approving transactions and matters can be prepared quickly. Some company secretaries now offer to keep all necessary files on an online platform for easy house-keeping.

• Ensure all signed documents are stored in electronic files and updated regularly. This will speed up the process when distributing information to investors.

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Ideas take birth every moment, but not each one succeeds.

There are many reasons why this could happen. Sometimes it is due to lack of resources; sometimes it is due to inadequate research. Planning and implementation are also factors that play an important role.

In today’s article, I’m listing five important questions that you must ask yourself before getting your tech startup idea out in the market.

How are you going to fund your startup?

The first step to bring your tech startup idea to life is to arrange funds. Developing an app or website would require money and not every investor you approach will let you use his or her money right away. He or she will want to see a prototype.

And even if you’re able to convince an angel investor, it will take months to close the deal. So, have other sources. Decide if you want to use your savings, take help from friends or family, or win money through app contests.

So, before you plan to build your million-dollar idea, outline how you will arrange the funds for your tech startup.

Will you focus more on the mobile app or the website?

The next important question is whether you need an app or a website to implement the idea. If the user needs to log into the service frequently (e.g. social media), you’ll need an app. But if it includes plenty of calculations and analytics (e.g. HRMS) to help the users, go for a website.

Also Read: What different types of investors are there for funding your startup?

Then, consider compatibility, maintenance, and upgradability. When you upgrade your app, users will have to download it again to use the features. That’s not the case with websites. But through an app, your service is easy to access.

So, get into the details of your idea and research your target market to decide whether you’ll develop a mobile app or a website.

How will you monetise your idea?

Once you have decided on the platform – website or app – chalk out your revenue strategy.

You can go for the freemium model where you provide some services for free while charging for the others. It works for products such as cloud storage or music streaming apps.

You can also opt for the subscription-based revenue model, as in CRMS or wealth management software.

And if your idea is to build a marketplace to connect customers and businesses, you can earn through commissions on transactions. You can even opt to play ads and earn through them.

Depending on your tech startup idea, research your competitors, interview your target users and find all the potential ways to monetise.

How will you attract the top talent?

Implementing your tech idea will need talented professionals too. But, a team of programmers, web developers, and UI designers won’t be easily attracted to something that doesn’t even exist. You will have to make efforts to hire top talents who understand your vision and sync with your idea.

You can scour freelancing sites or take help from your network. And then, list out the various ways you can use to attract those potential talents. You can offer them the opportunity to work remotely, or the freedom to experiment with their creativity.

Remember, it’s not always about money. So, work on all the possibilities.

How will you stand out from the crowd?

Even if you all the resources, this won’t ensure success. You have to be different. When we started InVideo, an online video editor tool, things were not easy for us as the market is already crowded with many online video editing tools. However, our easy-to-use, simple, interface won the battle for us.

So, find spots where your competitors lack. Your offer can either be a missing feature, a few tweaks for a smoother experience or a pricing model different from your competitors.

Also Read: How to finally get your startup idea off the ground in 2020

You can even target a specific customer segment with features that suit them. The possibilities can be endless; you need to observe.

Find what makes you unique in the crowd, before you decide on a grand launch.

Yes, putting a tech startup idea on-air is easy. But making it a successful venture is a path full of twists. It will take dedication, hard work and even some sleepless nights. But even before that, you should have got a clear vision for the future of your startup.

These five questions are vital to helping you decide if your tech startup idea is feasible enough to put to practice.

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Editor’s note: e27 aims to foster thought leadership by publishing contributions from the community. Become a thought leader in the community and share your opinions or ideas and earn a byline by submitting a post.

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Millennials of today wish to find their dream jobs once they graduate from college. And they are extremely sensitive about the roles and responsibilities that are put on their shoulders once they are hired.

Lending a job in market-leading companies is an achievement in itself.

Still, startups hold their fort that lets their interns learn many things and gives benefits that no leading business can. But is this a good decision? Let’s find out.

Asia is home to continuous progress that has taken the exponential leap from past years. Southeast Asian startups have raised US$8.58 billion in the first few months of 2019, which is very much near to what US startups have raised.

The opportunities for exponential business growth are opened, and this is the best time to start your first job or take an internship at one of these young startups.

Not only their working environment, but their work approach leads their employees to become the next great leader of the market and brings the best out of them. If you wish to shape your career the right way and dream of becoming the next great entrepreneur, startups of Southeast Asia can teach you many things. 

And this earned knowledge becomes a keystone of paving your road to a successful career.

Internships at Southeast Asian startups: Benefits earned

Startups of all regions are not the same. The concept behind a startup heavily depends upon the customer requirements and possible market transformations.

As Southeast Asia is demonstrating a solid growth in the areas of healthcare, technology, and fintech, the chances of succeeding with the best approaches are bright. And it also provides you with the benefits as your company takes the best efforts to bring out your best.

Startups of all regions are not the same. The concept behind a startup heavily depends upon the customer requirements and possible market transformations.

As Southeast Asia is demonstrating a solid growth in the areas of healthcare, technology, and fintech, the chances of succeeding with the best approaches are bright. And it also provides you with the benefits as your company takes the best efforts to bring out your best.

Friendly work culture

Startups heavily differ in terms of work culture and employee lifestyle when compared to other typical corporate environments. You get to make the best out of your free time; social gatherings, a lot of fun activities to do, and more- are the common ways startups use to keep their employees engaged.

Also Read: Why you should never intern at a startup (especially e27)

You get to work in a culture that is not at all praising based but is real and dynamic at the same time. The credit for achieving success in a task never gets snatched away from you. Because your small team strength helps you get identified easily, and you get credits in your sack.

Moreover, this fun collaboration with your co-workers develops relations with them and makes your regular work life fun and enjoyable. They ensure their employees stay fresh and efficient throughout time and become productive than ever. 

You can never go wrong with a bit of music, good food, and a friendly environment- workers love to participate! Hence, the first benefit you earn is coworker support.

Learn to socialise

If you are an introvert, this might come as a blast for you. But with time, you get habituated to this routine and start enjoying. You learn to make and keep relations with not only coworkers but with any person sitting beside you- isn’t that a crucial skill of an entrepreneur?

Well, we are just getting started.

For example, a Malaysian startup Jewel Paymentech gives their employees a friendly work environment by arranging monthly movie nights, holiday rewards, gym, and swimming pool, and many more.

The point is, they keep engaging their employees in activities to lead a healthy and happy life. And according to SWIFT, this startup is one of the promising fintech companies in Asia.

Shape your career the right way

The work culture of your company is an important aspect that affects your career. A friendly work culture lets you learn many skills from different persons working with you. As an intern, this positive work environment helps you find what you are best at and shape your career in the best way possible.

The skills you learn from your work makes all the difference.

For example, Shopback.sg is a Southeast Asian startup that gives its employees enough room to learn and grow from experienced E-commerce veterans. Their team onboard keeps learning from the experienced veterans to manage their growth with the best approaches.

Exposure and growth

A typical corporate company is highly structured, where each employee has to report to their superior. The chances of getting enough exposure are very low if you are a slow learner. But startups are the best bet for you. They give their employees equal attention and a chance to grow at the best pace.  

Knowledge on latest techs

As Southeast Asian startups expertise in the field of latest Fintech, the newest technology concepts get implemented. The concepts of AI (Artificial Intelligence), Blockchain, cybersecurity, and more- are the fundamental technologies these startups expertise in.

Including the website security measures like generating SSL certificates, preventing hacks, securing online payments, and more are their work areas.

This helps you earn knowledge on the practical implementations of technology- preparing you for the future where technology rules the world. The example of a Korean Beauty product seller, a promising e-commerce giant of the future, Althea fits here. 

This e-commerce websites owners have a flat structure- where every employee is handed over responsibilities equally. It helps learn the aspects that the company assigns you and expertise in the same field.

Productivity measures

Startups are best at measuring employee productivity. As every employee holds significance and contributes to the success of the company, they strive to maintain work productivity. The perks of friendly work culture include increased work productivity. As the responsibility to manage and maintain your work front is on you, you can learn to plan out your work strategy and, ultimately, improve productivity.

Think creatively

Your surrounding environment affects your thinking. Alike corporate hierarchy, startups tend to integrate each and every employee in every process. The innovators or the founders of the startup can teach you many things from their experiences. But the primary benefit you earn is, you get to experience their innovative thinking.

Also Read: 11 tips for managing the digital workforce of your startup

Thinking creative and innovating new solutions to solve common problems is what startups are good at, and if you work at a startup, you get to experience their creativity. 

You can find your lost path to being a creative person too. For example, the innovation of online ride-hailing has led startups to use a uber clone app solution to provide the same features and services, but with an innovative mindset that they implement through their ride-hailing solution.

Opportunities for a bright future

An added advantage of working at a startup is: you get to try on different hats. They assign you various tasks to perform that can help you learn many things that you would never think of learning. 

Therefore, startups encourage you to become a multi-tasker rather than becoming a role-specific employee. It helps you to make your resume bigger and better; after all, all these skills should be mentioned in there!

The startups located in Southeast Asia are highly technology-dependent. Their work culture, employee mindset, corporate profiles, working environment, and more makes them the best choice of freshers.

If you ever get a chance to load in their boat, never let it get away as the benefits offered by the company and the skillsets you can develop are beyond comparison.

The time for starting your internships in any company is getting near. It becomes crucial to identify the field where you want to work. But keep in mind the benefits and possible opportunities a company can offer you. 

Instead of running behind the money factor, it is essential to develop the skills that can help you develop excellent skills for your future betterment.

Also, if your dream is to become a successful entrepreneur in the future, Southeast Asian startups have got the power to make you shine and develop entrepreneurial skills while working with their innovative minds and truthful approaches.

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Editor’s note: e27 aims to foster thought leadership by publishing contributions from the community. Become a thought leader in the community and share your opinions or ideas and earn a byline by submitting a post.

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

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One of the areas in the tech industry which has been gaining more and more attention over the years is edutech.

At the 5th Asia-Pacific Meeting on Education 2030 (APMED2030) meeting, Shigeru Aoyagi, director of UNESCO Bangkok, stressed the correlation between education and poverty eradication.

“Of all factors considered, low literacy skills are most strongly associated with poverty, socioeconomic disparity, and particularly the gap between rich and poor,” he said. “Reducing poverty requires that countries invest in equipping their populations with functional skills in reading, writing, and numeracy.”

As bringing equal access to education becomes of primary importance to governments, more and more founders are realising the ways in which technology can be used to reach a wider network of people.

To realise this common goal, there have been many investments poured into startups working in the sectors. The Southeast Asian (SEA) region has recently seen high-profile funding rounds raised by the likes of Ruangguru, HarukaEdu, Zenius, Edukasyon, and Gredu.

In an exclusive interview with e27, Nick Hutton, Regional Director Asia at e-learning platform D2L, talks about the challenges faced in promoting e-learning adoption in this region –and why edutech in SEA still has a long way to go….. compared to other countries.

A common misconception

Before we delve deeper into the challenges, Hutton believes that it is important to clarify the common misconception about edutech.

“There is a common misconception about edutech in Southeast Asia. It is believed that e-learning is fully online. But in reality, it happens in three forms: face-to-face environment, blended learning, and complete online learning,” he says.

Also Read: Undeterred by rejections and insults, this duo has built a cool edtech startup and got funding, too

He further explains that the first way edutech can enhance learning is through a face-to-face setting, where software is used to enhance learning in institutions. The second way is through blended learning where a certain amount of time is spent in class and online courses. The last way is through complete online learning.

“Asia and SEA are far behind in the use of technology in assisting learning,” he continues ” North America has taken the lead, UK is pretty ahead, Australia and New Zealand to an extent. Hong Kong and Singapore have also largely incorporated it,”.

But Hutton is of the opinion that SEA and Asia are still largely untapped markets when it comes to incorporating e-learning into mainstream institutions. 

For example, an institution in Indonesia with 40,000 students will use technology in content –but it is still not seen as a campus-wide initiative.

As the regional director of D2L, which comes from the phrase “desire to learn”, he believes that what sets D2L apart from the rest of the edutech startups, is that the platform allows learning in all three forms.

Instructing the instructor

Keeping up with edutech trends is essentially important as technology radically aims to change everything we do, from banking, socialising and purchasing. That also means, convincing teachers to move away from orthodox modes of learning to more unconventional ways.

It is not difficult to introduce Millennials or the younger Gen-Zs to e-learning. In fact, students expect to learn in a “Facebook-style” manner, he jokes. But the main problem in this region are the teachers, he stresses.

Also Read: Businesses are learning to code without coding

“They see it as ‘replacing’ rather than enhancing. It is difficult to convince them to change when they have been teaching in one particular mode for 20 years,” he underlines. “And that is a difficult conversation to have.”

A changing landscape

When asked about how the government fares in encouraging edutech adoption, he does not hold back. “Governments are still very much in the dark ages,” he says.

According to him, governments find it very difficult to recognise “accredited courses that lead to a degree in a completely online environment.”

However, that being said times are radically shifting and ten years ago it was far more important to get a degree from an accredited institution because it had a lot more kudos associated to it and also because of organisations in the past looked for somebody with an undergraduate degree of a certain level in a certain field.

He comes to the conclusion that despite all the hurdles, there is a new trend of “lifelong learning” evolving. Working professionals are starting to become more interested to have more skills to compete in the marketplace.

And employees are changing the way they are accepting these online certificates. Degrees do not have to be from institutions and the future of work and learning is driving that.

The problem for higher education arises because now, and in the future potentially there will be other deliverers of education around who are starting to deliver great education in a lifelong learning mode.

Noticing the shift in the learning landscape which poses a certain amount of threat to these institutions, they are now aiming to use technology much more smartly.

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Image Credit:  Susan Yin

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EMQ, a global financial settlement network, has rolled out a new feature to enable customers from around the world to make cross-border money transfers into China using its real-time pay-out network.

Hong Kong-headquartered EMQ currently covers 126 banks in China and will be expanding to over 150 banks in the coming months.

“China is a significant market in our global growth strategy as it is the world’s second-largest recipient of remittances with US$67 billion in currency flow into the country in 2018, according to the World Bank,” said Max Liu, Co-founder and CEO of EMQ.

Also Read: Filipino Senator seeks to declare the Singaporean founder of Angkas persona non grata

“Since we launched our China gateway two years ago, we have continued to invest in our network infrastructure and strengthen our compliance capabilities in the region to deliver a faster, efficient and cost-effective cross-border settlement platform. It allows our customers to send money from anywhere in the world into China,” added Liu.

EMQ operates a global financial settlement network that currently spans across Europe, China, Hong Kong, Singapore, India, Indonesia, Japan, Vietnam, Cambodia, Thailand, Taiwan and the Philippines, with expansion underway across key business markets in the Middle East, Africa and the Americas.

Its network infrastructure can be deployed across multiple vertical industries for a broad range of services, including e-commerce, merchant settlement, procurement, remittance, and payroll.

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With Echelon Asia Summit right around the corner, one of the questions that beg to be asked is: how can startup founders maximise their Echelon experience?

Thankfully, your Echelon experience can start sooner than you could ever hope for. Between rubbing elbows with potential future partners, to sharing insights with other startup founders, and even to dazzling potential investors with your one-in-a-million idea, you can make noise in your local startup scene early on with the Echelon Roadshow 2020 Kuala Lumpur!

What better way to boost your business and amplify your reach than by learning from the best and the brightest? With Echelon Roadshow 2020 Kuala Lumpur only a few short weeks away, you don’t only get to listen to experts on stage, but you get to mingle with them as well, and even get to know other key figures who can help you scale your business.

This is ultimately what sets Echelon Roadshow 2020 Kuala Lumpur apart: it is not only a celebration of great ideas and a chance to expand your network while learning from the best, but it’s also strategically situated at the heart of Malaysia’s bustling capital!

On top of that, this is your chance to check out your country’s representatives to the Top 100—an opportunity to immerse in the local startup community and see what efforts other Malaysia-based startups are employing to materialize their vision.

The Echelon Roadshow 2020 Kuala Lumpur is part of a series of international stops leading up to the annual Echelon Asia Summit happening in Singapore. The Echelon Roadshow 2020 is happening on 18 February, 2020, from 5pm to 9pm at the HLX, 3, Jalan Kia Peng, Kuala Lumpur, Malaysia.

RSVP to the Roadshow is free, so if you want to score insights on Southeast Asian tech—grab your tickets now!

 Tickets are running out fast so visit the Echelon Roadshow 2020 page to find out more details!

The post Kick-off your tech startup journey at the Echelon Roadshow 2020 Kuala Lumpur appeared first on e27.

After making headlines for submitting digital bank licence application and leading a handful of consortiums, ride-hailing unicorn Grab and online gaming startup Razer are reportedly considering to apply for a similar licence in Malaysia, says a PYMNTS report.

Names like AirAsia, Axiata, CIMB, and financial institutions such as Hong Leong Bank and Maybank are also likely to join the race, a source familiar with the matter told the publication.

“Many financial and non-financial institutions are sizing up market opportunities and working with external parties,” one of the sources was quoted as saying.

The report also mentioned that some have been in discussions with consultants for guidance as they weigh in the possibility of moving into digital banking.

Last month, Malaysia’s central bank revealed that it will issue up to five conventional and Islamic online banking licenses. The licensing system is being prepared and is expected to be finished by the end of June this year.

Also Read: These tech companies are eyeing for Singapore’s digital banking license

Malaysia’s central bank BNM also said that it will likely prefer bidders with capital governed by firms in the region to have a chance in obtaining the licence.

One of the earliest applicants of Singapore’s digital bank licence is the gaming startup Razer’s fintech arm. Razer Fintech’s CEO Lee Li Meng shared that it has ‘vast enterprises in Malaysia’s online payments arena and would assess the prospects of digital banking’. The company was already in discussion with a regional conglomerate for a Malaysian licence.

Meanwhile, telecommunication firm Axiata will be allowed to submit an application via its Axiata Digital Services unit, which controls the e-wallet Boost.

AirAsia’s financial services arm BigPay also runs an e-wallet that has a prepaid card.

Another Singapore’s digital bank licence hopeful Jack Ma’s Ant Financial and Touch n’ Go currently are the biggest e-wallet services in Malaysia with 6.9 million customers. CIMB holds a majority stake in Touch n’ Go, which can give it the upper hand in the possibility of going after a digital banking licence.

Malaysia’s draft doctrine also states that electronic banks are required to “minister to underserved and unserved populations” with services and solutions that focus on the void in the market.

Also Read: Customer onboarding and the brand new digital banking licences by MAS

Digital banks in the country are also required to maintain US$24.5 million in starting capital and scale to US$74 million.
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Photo by Poh Wei Chuen on Unsplash

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Home design and renovation platform Livspace today announced that it has raised about US$60 million in funding from a host of investors, including Hong Kong-based Tahoe Investment Group and Singapore-based Mercer Investments, and EDBI, says an ETtech report.

European investment firm Kharis Capital, and Nicholas Cator, MD of Venturi Partners, also co-invested.

As per regulatory filings sourced from Singapore, this round could stretch up to US$90-100 million and is likely to be closed next month.

Also Read: Home design and renovation platform Livspace raises funding from IKEA

Livspace was founded in 2015 by former Google executives Anuj Srivastava and Ramakant Sharma, along with Shagufta Anurag. Livspace facilitates the interaction between customers and interior and home designers as well as with suppliers. It maintains delivery timelines serving the three target markets with a supply chain-supported backend.

The company is said to take end-to-end ownership of a housing project, right from design to manufacturing to installation. Aside from that, Livspace also operates an offline design studio.

To date, the Bangalore-based company has raised about US$150 million.

The last reported investment was in May last year from IKEA’s strategic partner Ingka Group (Sweden).

In 2018, the startup also raised Series C funding from private equity firm TPG Growth, Goldman Sachs, and Jungle Ventures, among others.

In 2016, the company raised US$15 million, led by Bessemer Ventures Partners, with participation from Jungle Ventures and Helion Venture Partners.

In October 2019, Livspace launched in its first international market in Singapore and had plans to make it the base for all Asia-Pacific markets, including Malaysia and Australia.
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Picture Credit: Livspace

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As motorbike-based ride-sharing service Angkas continues to make waves of headlines in the Philippines, e27 breaks down the series of events that led to this week.

The lead-up

It started when thousands of Angkas bikers took to the streets on December 27, 2019, to express their disapproval for a new policy that would result in job loss for 17,000 riders. Announced during holiday season, the policy was put into action primarily for safety and traffic management measures.

Angkas had to resort to social media to call for support from their users, leading to a popular #SaveAngkas hashtag on Twitter.

These social movements did work for Angkas as it prompted the Philippine Competition Commission to appeal to Land Transportation Franchising and Regulation Board (LTFRB) to reconsider its decision of limiting 10,000 bikers per motorcycle firm.

“Angkas business was not like Grab which acquired its competitor and therefore became dominant and a monopoly. Here Angkas grew out of its own efforts. In a sense, you are taking away what Angkas has worked hard on obtaining, which is a driver base,” said Bernabe in an interview.

Here, Bernabe refers to the time when Grab acquired Uber and created a monopoly in Singapore.

However, Antonia Gardiola, another member of the LTFRB, put forth another argument. He puts emphasis on the notion that now the drivers will have the option to choose from two additional players. 

The controversy ended up with the launch of a pilot run from December 23 to March 23, which was meant to test the safety and practicality of motorbike-based public transportation.

Things seem to be doing well until the pilot run was ended before its time. The technical working group in chrage of the pilot run submitted its statement to the congress, urging the Department of Transportation (DOTr) Secretary and the congress “to immediately terminate the implementation of the pilot study,” according to a letter addressed to Transport Secretary Arthur Tugade.

Angkas was also accused of emotionally blackmailing the government. An LFTRB board member has also accused the ride-sharing company of deceiving the riders as nobody will lose their job with the new cap.

Also Read: Filipino Senator seeks to declare the Singaporean founder of Angkas persona non grata

To add another blow to the already heated up situation, Filipino senator Aquilino Koko Pimentel filed a resolution to declare Angkas’s Singaporean founder Angeline Xiwen Tham a persona non grata, or unwanted person. He stressed that Tham holds almost full ownership of Angkas, which is against the local law, whereby Filipinos must own 60 per cent of public transport companies.

Slowly this conflict begins to get more and more personal, as senator was quoted saying, “Tham is merely a guest in our country, yet she is already acting like an oligarch which seems hell-bent on becoming at our expense.”

What startups can learn from this conflict

In comparison, even as many ride-sharing apps failed to make peace with the government, sometimes having good administration connections can lead a long way. Take an example of Nadiem Makarim, the charismatic ex-CEO of Indonesian ride-sharing app gojek. Not only that he managed to tactfully work with the government when it tried to place a ban on ride-sharing services, but he is also part of the government today.

The savviness of Makarim’s government relations skills was also displayed when Malaysian Youth Minister Syed Saddiq Syed Abdul Rahman endorses the company on Twitter, leading to the eventual legalisation of motorbike-based ride-sharing service in the country.

But this could also mean that this situation is in itself a lesson to all startup founders: Startups need to have good government relations skills.

While Angkas has been harbouring public support, ultimately the government will be the one to decide who goes and who stays.

What this will mean for Angkas in the future 

A lot of people in the Philippines and outside of the country see Angkas as an extremely fast, cheap, and reliable mode of transport. This comes forward as the company has a near-perfect safety record in the region.

Also Read:  Motor taxis declared illegal in the Philippines as pilot run ends before time

This move by the Philippine government can be seen as overregulating innovative transport solutions which may be seen as a hurdle for future transport solutions.

What are the possible alternatives for Angkas?

There have been suggestions for the company to switch from motorbike-based ride-sharing to car-based one. But certainly, these two services have a different value proposition. It also has a different driver community to manage.

Since foreign ownership also seems to be the problem here, Angkas might need to consider increasing the number of local ownership –and leadership– within its corporations.

Either way, this is a challenging time for both the company and the ride-sharing community in the country. While it might sound anticlimactic to say that there was nothing that we can do but to wait and see, we see this situation as comparable to being in a crossroad: Anything can happen.

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Image Credit: Unsplash

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Cambodian VC firm Ooctane today announced that it has made an undisclosed strategic investment in local food delivery startup Muuve.

The Phnom Penh-headquartered Muuve said it plans to use the funding for expansion into new cities in the country and strengthen its current operations. “This investment will allow us to continue to scale, drive business for Muuvers and merchants, and offer more choices to consumers,” said CEO Phanith Panh.

Also Read: Cambodia-grown VC firm Ooctane secures US$55M from country’s logistic giant

As part of the investment, Tapas Kuila, General Partner of Ooctane, will join the board of Muuve.

“We have been closely tracking Muuve’s progress over the past few months as well as the growth of the food delivery industry in Cambodia in general. We believe that their business model along and customer experience will continue to set them apart from the rest of the pack,” said Kuila.

Launched in Phnom Penh in 2018, Muuve crowdsources its delivery partners (called Muuvers) using an ‘asset-light’ approach. Currently, the company offers over 18,800 different food items on its menu catering to locals, expatriates, and Chinese taste-buds via its 350-plus restaurant partners.

“We’ve always been proud of being the first local delivery platform to utilise an asset-light business model to provide Muuvers with opportunities for jobs and incremental revenues,” Panh added.

Also Read: Venture capital firm Ooctane debuts in Cambodia to support local startup ecosystem

Ooctane primarily focuses on technology-enabled businesses in the logistics, e-commerce, real estate, and financial services verticals, and also advises on various mergers and acquisitions for the WorldBridge Group. The fund is chaired by Oknha Sear Rithy, Chairman of the WorldBridge Group.

The VC firm recently closed its debut US$55 million Cambodia Investment Fund with a mandate to invest in technology-enabled businesses founded in Cambodia, looking to expand into Cambodia, or founded by Cambodians anywhere in the world.

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