The co-founders of Bobobox

Just less than a week ago, Indonesia-based accommodation startup Bobobox secured US$11.5 million in Series A round of funding, led by Horizons Ventures and Alpha JWC Ventures.

The news came as a breath of fresh air after a series of unpleasant occurrences in the hospitality industry, with companies shutting down, employees being laid off and several other collateral damages that follow the hard hit.

The impact has been especially severe in Southeast Asia, where tourism and hospitality play a significant role. There has been a predicted decline of US$3-7 billion in gross income into the tourism markets in Vietnam, Thailand, Malaysia, and Singapore.

Worse, giants like online booking startup Traveloka laid off 10 per cent of its total workforce in April. A month earlier, Singapore-based RedDoorz had cut eight per cent of its employees.

Smaller but consistent players such as budget hotel startup Airy Rooms, in the meanwhile, were forced to shut down with COVID-19 taking a toll on their operation.

Against all odds

While major companies in the hospitality and travel tech industry bore the brunt, a relatively new player has managed not just to survive but also thrived in the current crisis. And it is no less than a feat in these trying times. The company in the centerstage is Bandung-based Bobobox.

Founded in 2017 by Antonius Bong and Indra Gunawan, Bobobox is a capsule network which has a vision to be the recharging facilities for everyone to get quality rest. Its capsule rooms, or ‘Pods’, are equipped with app-controlled secured door access, customisable lights, Bluetooth speaker, king-size and single-size bed, compact working space, and personal air conditioner. The prices start from US$10 per night.

Pre-COVID-19, Bobobox operated eight buildings with more than 500 pods in total and an average occupancy rate of 80-90 per cent. Amidst the crisis, its occupancy rate dropped to 50-60 per cent in March while other hotels were already at a single digit and many had shut down.

Also Read: Bobobox raises US$11.5M funding when many of its peers in the hospitality sector are on the brink

“Despite the turbulence due to the pandemic, we are grateful that we can still lock-in investment from global investors,” said Bobobox Co-founder and CEO Indra Gunawan.

The pandemic also opens new opportunities for Bobobox as local users become new regulars of the Pods, instead of the usual foreign tourists.

Bobobox’s Marketing Manager Ahmad Qois said the company did things differently to set itself apart from the struggling bunch. In addition to the hygiene protocols and flexible booking options with no cancellation fees, the company operated almost the same as the rest of the measures implied out there.

What is different about Bobobox is that it operates efficiently due to the smaller number of human resources. The firm didn’t have to lay off employees.

Capsule model can be the future

Capsule-style rooms, with only beds and other essentials inside, are not something new in the hospitality industry. It’s often the go-to choice for backpackers as it usually costs less and solo travellers would only need to sleep in their room.

Bobobox pods

Bobobox’s app-based booking system offers a technically more spacious capsule room. Qois called it “self-contained units” with more privacy and security, which spelled differently nowadays with the outbreak.

With the global advise of maintaining secure distance — ‘secure’ now means being ‘self-contained’ — it is understandable that Bobobox’s model has become more in-trend now than ever.

“With extended preventive measures in place, many locals have relocated to our pods to improve their work-from-home experience. Some would choose Bobobox with the closest distance to their workplace to avoid long commutes to work, limiting their exposure to crowded public facilities,” said Bobobox Co-founder and President Antonius Bong.

It is now safer to be together in an “isolated” place with minimised facilities than occupying a large room with people coming and going for room service and housekeeping on top of a receptionist contact.

Staying relevant

“Relevant” would be a positive uptake on the whole COVID-19 situation, but that’s what Bobobox has done. According to Bong, the current situation allowed the startup to show more use cases of its sleeping pods.

“With little modifications, we have installed more than 100 pods in hospitals as comfortable shelters for doctors and health workers so they can rest better while remaining close to their patients. We have been getting great feedback from the medics and local governments on these facilities,” Bong explained.

Sleeping pods can be a lifesaver for the front liners, and Bobobox’s quick wit earned its brand not only exposure but also trust.

Also Read: Indonesian capsule hotel startup Bobobox raises pre-Series A funding round

The Brains behind Bobobox

Gunawan has 10-plus years of experience in the hotel, tech, and manufacturing industries, while Bong worked in the real estate and tech industries. Together, they lead Bobobox with the latest funding with the plans to use it to accelerate its product improvement and location expansion.

“We are also revamping existing hotels. Unlike many hospitality SaaS [companies] that only provide branding, we help independent hotels by providing the pods, system, and even marketing. The pilot project has been successful, and we are looking forward to expanding this model,” Gunawan said in an article featuring its first round of funding in 2019.

“We want to enhance ‘Pods’ features and overall experience by growing our tech team and strengthening its manufacturing and operating models,” Bong said.

Key takeaways

Their quick wit and edge of having pods instead of hotel rooms prevented them from free-falling. The company also managed to leverage technology in enabling more nimble operating models (short stays and long stays).

Qois shared that the main takeaways of their survival is that they maintain their efficiency and lean operations. “We learned that it’s important to prepare several scenario planning/simulations so that we will be prepared when another crisis hits the industry. Being an affordable and comfortable option will not be enough, cleanliness and safety will be the new compulsory ethos from now on.”

Being in the face of a global pandemic, Bobobox also forces to look at the operation in a different way. “For more use cases, Bobobox will have to be beyond just a capsule hotel but the future of resting pods for everyone to get a quality rest anywhere, anytime,” Qois said.

Qois’s statement is backed by what Velocity Ventures forecasts, which believes that “the most agile startups may be able to discover new business opportunities and adapt accordingly”.

The report in Web in Travel further suggested that the need for travel won’t dissipate and it predicts that travel numbers will bounce back relatively swiftly.

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Picture Credit: Bobobox

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Anthill Ventures, others invest US$1M in Indian travel-tech startup QuaQua

QuaQua, an India-based platform that delivers immersive virtual travel experiences, has raised US$1M funding from Singapore-based VC firm Anthill Ventures and other anonymous investors.

The company will use the funds to enhance its product and build an AI and content-driven platform.

Founded in 2016, the startup allows people to experience travel from the comfort of their homes. It aims to “deliver real and immersive travel experiences through storytelling, that inspire people to travel”.

Currently, it claims to have a user base of 2.5 million from all over the globe.

Singapore ranks 16 in global startup ecosystems

Singapore has re-entered the best 20 in startup ecosystems globally, jumping five spots to clinch the 16th place out of 100 countries, according to the latest Startup Ecosystems Rankings report published by startup research company StartupBlink.

In APAC, Singapore ranks 3rd, right behind China and Australia.

As per a Singapore Business Review report, the island state’s global status as a fintech hub and highly supportive public sector have been regarded as the primary reason for its higher ranking.

Also Read: [Updated] T. Fuad leaves WeWork Southeast Asia; Korea

“Singapore’s public sector is highly supportive of its startup ecosystem, and considering the country’s stability and infrastructure, it is also becoming a regional entry point for expansion to the Asian market, as startups like Grab demonstrate,” the report said.

Singtel Innov8, others invest US$52M in American security platform Synack

American crowdsourced security platform Synack announced today that it has raised US$52 million in funding from Singtel Innov8, the VC arm of Singtel Group, according to DealStreetAsia.

The round was co-led by B Capital Group and C5 Capital, with participation from GGV Capital, GV (formerly Google Ventures), Hewlett Packard Enterprise, Icon Ventures, Intel Capital, Kleiner Perkins and Microsoft’s venture fund M12.

The new funding will be used for global expansion and product enhancement, the company said in a statement.

India’s LetsTransport raises US$1.3M from Blacksoil

LetsTransport, a logistics solution company which fulfils intra-city last-mile deliveries in India, has secured US$1.3 million in funding from Blacksoil Capital.

This follows an investment of the same amount in the company in November 2018.

LetsTransport provides urban logistics solutions to enterprises by offering tech-enabled intra-regional transportation services. It enables enterprise clients to book trucks and manage bookings through their mobile app, call and website.

It works across industry sectors like organized retail, FMCG and e-commerce, distribution and 3PL companies. Some of its clients include Amazon, Flipkart, Bisleri, Vishal Mega Mart, Future Supply Chain, Coca-Cola, Delhivery, and Udaan.

The startup is present in 15 cities in India and a registered trucker supply of 60,000-plus drivers.

Blacksoil is a new age diversified alternate credit platform for high growth startups, SMEs and real estate segment.

Malaysia Debt Ventures receives 49 applications for its startup funding relief initiative

Malaysia Debt Ventures (MDV) has announced the closing of its first application window for the “Technology StartUps Funding Relief Facility (TSFRF)”, according to DigitalNewsAsia.

The initiative received 49 applications from startups within a diverse number of sectors.

TSFRF is a programme that aims to provide immediate and affordable cash flow support for VCs- or government agency-backed technology startups impacted by the global health pandemic.

Also Read: Singapore’s XA Network invests in Vertex Ventures’s US$305M Fund IV

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Image Credit: Eva Darron

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The PolicyStreet team

Malaysia-based insurtech platform PolicyStreet announced today that it has raised US$1.8 million in Series A investment, led by existing investor KK Fund.

Singapore-based Spiral Ventures also participated in the new round and the rest of the funds was raised via Malaysia’s Equity Crowd Funding (ECF) platform PitchIN, according to a press statement.

The startup will use the capital to enhance its product, increase sales, expand into other regions, and also for marketing.

PolicyStreet allows customers to buy insurance policies directly from its platform. It mainly targets millennials with its products, and the goal is to make the insurance industry fun and relevant for its young users.

In order to do this, the startup promotes simple insurance products that it claims demystifies normal industry jargons in a 3-step approach.

In 2019, the insurtech firm received approval from Malaysia’s central bank BNM to become a financial advisor. This allows PolicyStreet to work with over 35 insurers and offer more than 1,000 insurance products.

As of now, the company serves large conglomerates and SMEs.

Also Read: Malaysia’s PolicyStreet gets central bank approval for financial advisory

“Aggregation will not enable us to advise the right products to different target customers, but financial advisory will. We want to advise customers without prejudice, and we will marry technology and innovation to remove ‘fats’ in the ecosystem by driving transparency and simplicity in insurance,” PolicyStreet CEO Lee Yen Ming, previously commented.

Previously, PolicyStreet had raised US$500,000 in seed funding from KK Fund and received grants from Cradle Fund.

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Image Credit: PolicyStreet

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DrinkPrime Co-founders Manas Ranjan Hota (L) and Vijender Reddy

Access to drinking water is a problem in most parts of India.

Less than 50 per cent of the population has access to safely managed drinking water. Chemical contamination of water is present in 1.96 million dwellings.

Access to drinking water is a problem in many parts of India.

About 35 per cent of the nation’s urban population obtains and stores drinking water in bubble-top water dispensers, which are popular among people in the 22-40 age bracket, living in rented homes.

However, more than half of these cans in circulation do not meet the safety standards set by the government. Plus, ordering water is a cumbersome process.

Testing the waters

As flatmates, Manas Ranjan Hota and Vijender Reddy also faced difficulties in accessing potable water in 2015. The water available was dirty impure. Traditional water purifier was an option, but recurring service costs made it less desirable for the duo.

“Frustrated, we started thinking of a solution. Our first idea was to develop an app for home delivery of good quality water cans. We received a good response, and within six months reached 6,000 active users in just two suburbs of Bangalore,” recalls Hota.

However, unit economics was didn’t make sense; their business lost money on every order. This is when the two realised that a point-of-use water purification solution would be a better approach to tackle this problem.

“We studied several water purifiers available in the market and reached out to many experts to understand their detailed functioning,” Hota says. “Our research showed that the core problem is the prohibitive cost, both upfront and maintenance of each device. This was the motivation for us to design DrinkPrime.”

Making the most of IoT

DrinkPrime is a subscription-based smart water purifier with an integrated Internet of Things (IoT) device. The product, claim the founders, can measure and track the quality of water, filters and consumption.

Also Read: How to introduce innovations without scaring customers away

According to Reddy, a direct-to-consumer sales approach, coupled with the use of IoT, which reduces the maintenance cost, helps DrinkPrime make the purifier affordable for costumers. “We have built a smart product and an ecosystem to deliver safe and affordable drinking water to our subscribers.”

For a monthly subscription fee, DrinkPrime takes care of everything — from logistics to installation to regular proactive maintenance.

The pricing plans are customised to different segments, taking into account the water quality in the area and consumption volume.

The subscription fee starts from INR 350 per month (under US$5).

“During installation, we help the customer download the DrinkPrime app and sync it with the purifier. Subscribers can check the status of the purifier, the water consumed, pay their monthly subscription fees, and request services easily on the app,” Reddy explains.

In addition, DrinkPrime monitors the status of the purifier from its backend and sends alerts to the customer when the maintenance is due. When the customer selects a convenient time, DrinkPrime’s technician partner will come and do what’s needed.

DrinkPrime’s early adopters are mostly working professionals, aged 22-40 years.

A US$50B opportunity

Currently, DrinkPrime operates in Bangalore and Hyderabad, with plans to start operations across the top 10 Indian cities in the next 18 months. The company is also receiving interest from Southeast Asia, South Asia, the Middle East, Africa, and Latin America, but for now, the prime focus is India.

The market size is over US$5 billion in India alone. If other developing countries are included, it is a US$50 billion opportunity and is growing at a CAGR of 20 per cent.

Right from the start, DinkPrime faced several crises: “Our initial challenge was product development. Getting the right IoT sensors and the right filter technology that would work in varied field conditions was a long and tedious process. We were able to achieve a stable product only after 12-plus months of rigorous testing,” reveals Hota.

“When we started, we with a GSM (cellular connectivity) connectivity as we wanted an ‘always-on’ connection to monitor the water quality in real-time. But when we deployed the solution, we noticed that in many Indian homes, the kitchen was housed behind thick walls, which disrupted the connectivity leading to improper functioning of the device,” says Hota, an MBA graduate who has previously worked at Sonata Software.

To overcome this, the company went with the Bluetooth mode of connectivity and had to develop computation capabilities inside the purifier. Now, the data can be monitored real-time, and it gets transmitted whenever the purifier is synced with our mobile app.

Managing the blue-collar workforce, inducing technicians and delivery partners, was another major challenge. As it was a completely new product, DrinkPrime had to put in a lot of efforts to train and up-skill the team, the founders disclose.

A D2C company, DrinkPrime manages end-to-end solutions — from hardware, production, marketing, installation, to resolutions. “Drinking-water is a segment where trust plays a big role in customers’ decision-making. This is the reason why companies resort to huge advertising campaigns and celebrity endorsements.

However, we don’t have a budget for this, so we tried to build trust through the use of data. For example, as we get more installations in a particular city, we have an up-to-date map on area-wise water quality,” shares Reddy.

DrinkPrime uses this information to change the filter composition according to a customer’s input water quality. It takes this a step further by suggesting other products — from tap and shower filters to hair and beauty products, each customised to the customer’s input water quality.

“We feel that such a personalised approach can only be achieved by taking a D2C route,” says Reddy, an ex-AMD researcher.

DrinkPrime was part of the Sequoia India’s recently-concluded Surge programme in Singapore and raised an angel round of funding from investors that included FirstCheque and Snapdeal Co-founder Kunal Bahl.

Also Read: A look into the future: How a global pandemic changed the way we buy and sell

“The best part of Surge is the power of the community of entrepreneurs and the peer group learning that comes with it. We feel like whatever questions or dilemmas we have, someone in the group has already been through the same and we just need to ask and learn from their journey,” the co-founder-duo says.

Lessons learned over the past 4 years of your existence?

“We went through many near-death experiences while building DrinkPrime. It is important to persist and believe in yourself. It is equally important to finding a support network of mentors, advisors, and well-wishers who back you in difficult times,” says Hota.

Never be too attached to your solution or creation but be passionate about the problem you are trying to solve, he warns. This will help you objectively analyse if the solution is working or not and be able to pivot when the right time comes.

“For example, we pivoted twice before landing up with our current business model. Although are still solving the same problem, the solution is different.”

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Image Credit: DrinkPrime

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Singaporean accelerator Iterative debuts eight startups in its first cohort

Singapore-based startup accelerator Iterative has unveiled eight startups in its first cohort, according to TechInAsia. The accelerator programme provides each startup with US$150,000 in exchange for 15 per cent equity.

This year’s portfolio includes eight companies from a variety of sectors, including logistics, healthcare, clothing, food delivery and finance.

Become
Offers affordable invisible braces at the customer’s doorstep

Bungkus
Provides exclusive halal food items to merchants

Haulio
Tech platform which connects hauliers and shippers to speed up cargo process

PropSeller

A platform that connects real estate agents in Southeast Asia with property owners or sellers

Also Read: DrinkPrime tackles India’s drinking water crisis with its subscription-based IoT smart purifiers

Sendhelper

A home services app that connects Singaporeans with blue-collar and non-executive workers to aid in daily chores

Starboard

Allows businesses to import paper filings and data into a cloud-based platform

Tendopay

A financial services platform that enables Filipinos to make online shopping purchases in instalments

Outside Voice

Builds data collection layer “on top of WhatsApp in the form of video surveys.”

Oppo, T-Hub partner to bolster India’s digital startup ecosystem

China-headquartered smart device brand Oppo has partnered with India’s innovation ecosystem T-Hub to support the startup ecosystem in India, according to a press statement.

Through the partnership, selected companies will receive incubation support from OPPO along with technical mentorship and access to new markets.

Startups will be selected based on their prototypes and strategic fitment with OPPO products.

“The cutting-edge startups and their technologies will be the driver of competitive advantage and creative disruption in the telecom industry. To fuel this growth, T-Hub is collaborating with OPPO India in multiple ways to nurture and support their solutions and bolster the startup and innovation ecosystem,” said Ravi Narayan, CEO of T-Hub.

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Image Credit: Mario Gogh

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T. Fuad speaking at Echelon Asia Summit 2018

Turochas “T” Fuad, Managing Director at WeWork Southeast Asia & Korea, announced in a LinkedIn post on Monday night that he is leaving the company.

He cited the desire to pursue entrepreneurship again as the reason for his departure.

In details, he wrote:

“It has been an amazing ride for the past four years at Spacemob and WeWork. From WeWork’s acquisition of Spacemob, personally interviewing the first 150 employees who joined us, scaling our business from three to 34 locations across Southeast Asia to spearheading our business transformation across South Korea.

It was so important to me that we have the right culture, and tribal mindset to achieve what we set out to do. With that foundation and an amazing team, I have decided to put my attention back on my next entrepreneurial path.

Also Read: Singapore Budget 2020 and what it means for the tech ecosystem this year

It is something I’ve mulled about for a while now and I can feel my entrepreneurial spirit calling again. I will be forever grateful for the lifetime memories, amazing friends I’ve come to know and the difference we’ve made. It is now time for my next adventure.”

e27 is reaching out to WeWork to find out more details about the company’s plan after Fuad’s departure.

Throughout his career, Fuad had founded three startups and all of them had met its exits.

In August 2017, coworking space giant WeWork acquired Spacemob, the coworking space chain he founded and have it rebranded to WeWork.

In January, Fuad spoke to Channel News Asia about the company’s plan to continue on expanding in the Southeast Asian region despite the challenges that its parent company had faced in the previous year, where it saw its valuation fell from US$50 billion to US$8 billion. This had led to a roadblock for their IPO plan, followed by other controversies.

In addition to their operations in Singapore, Fuad was quoted saying that WeWork’s businesses in Bangkok, Ho Chi Minh City, Jakarta, Kuala Lumpur, and Manila, are “definitely on the right track.”

“… We expect them to hit the same kind of trajectory as in Singapore,” he said.

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Its been two months and I have (like most of you all) have not stepped out as much as I would have liked. From restricting mobility to transforming businesses and deteriorating economies, the pandemic still rules the top of our minds.

Thanks to our amazing contributors from the Southeast Asian (SEA) ecosystem, we were able to reimagine the future and use their views and tips to better equip ourselves to fight the impact of the pandemic on our lives.

Dealing with the crisis

The one thing we cannot underestimate right now is the power of the community. While our agility and speed are essential to the way we work and has given birth to lots of great online content and new ways of interacting with our communities virtually, this blog post by Techstars’ Oko Davaasuren is about (the often slower process of) recovery — it is about re-investing in us, and our communities.

By now, most of us are settled in this new, “not-so-normal” phase, where all our worlds have merged into one space and all we have is a window of talking heads on a screen as our communication to reach the outside world and our different spheres of life. Antler’s Puja Bharwani shares the four main areas for a leader to consider as a CEO or founder during times of crisis.

Much has been said that technology companies are the true winners, but the question is: who are the winners and losers in the new world order driven by COVID-19? Ranise Teo spills the beans…

However tempting it may be to jump at short-term fixes, stopping there would be dangerous, warns innovation strategist, Philipp Kristian Diekhöner. If we are to return to normal anytime soon and prevent such in time to come, it is in our hands to be the change we ought to see, globally. Here’s how we can do that.

Also Read: AMA with e27 and Cocoon Capital

Preparing for the post-pandemic world

Advisor, entrepreneur, and investor; Paul Meyers is positive about “impact investing”. It is everywhere these days – outside of COVID-19, it has become this year’s must-have investment strategy, he adds. Unleashing the power of money for good has suddenly become the rage. Read on to capitalise on this wave.

With various innovations taking place across the globe, many are wondering who is leading the cryptocurrency revolution: East or the West? As it stands, Asian economies appear to lead the crypto race, although the West is showing that it has no plans on being left behind. The crypto asset space is a fast-moving one and only time will tell who will truly win this race, but one thing is for sure – crypto assets are here to stay, says MD of eToro, Jasper Lee.

Will VC funding dry up? What are the top verticals? Is this a good time to expand a startup? As an entrepreneur and angel investor, William Klippgen has invested in more than 24 companies, including PropertyGuru, Tickled Media, and ReferralCandy. Today, as the Managing Partner and co-founder of Cocoon Capital, he shared some words of wisdom on what to expect ahead.

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Register for our next webinar: Meet the VC: Qualgro Partners

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

Image credit: Guilherme Stecanella on Unsplash

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Founded by ex-Google and Splunk executives, Indonesian data management startup Delman has secured US$1.6 million in a seed funding round led by Indonesia-focussed VC firm Intudo Ventures, according to a press statement.

Other backers who participated in the round include early stage tech startup investor Prasetia Dwidharma Ventures and smart cities company Qlue Performa Indonesia.

The company has said that will use the newly raised capital to establish an R&D centre in Surabaya and make fresh hires, specifically earmarking Indonesians who are currently working as data scientists in Silicon Valley.

Delman is a big data management and analytics, providing startup that leverages in-house developed solutions to simplify, validate, and automate the data management process to help businesses make more accurate business insights.

According to the co-founder of the company, Surya Halim, an average company in Indonesia sends 70 per cent of its time and around US$200,000 on cleaning enterprise data. This creates inefficiency in both cost and process.

Also Read: Morning News Roundup: Data management company Cohesity raises US$250M in Series E funding led by DFJ Growth, others

“The most typical data quality-related issues in Indonesia have been related to unstructured or unmatched data, either traditionally managed or handled by inexperienced teams,” Halim added.

The two-year-old startup claimed to be able to expedite data integration and management from multiple sources up to 30 times faster, using artificial intelligence and machine learning for data cleansing and warehousing.

Its backer believes that big data solutions us still a growing market in Indonesia and is yet to be taken to the next level.

Qlue founder Rama Raditya said that in the middle of the pandemic, the company actively invests in startups with great potentials such as Delman.

“As the market for big data in Indonesia continues to grow, the demand for big data solutions is shifting to local providers who better understand Indonesia’s unique circumstances,” he said.

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Image Credit: Arga Aditya

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LongHash Ventures, a global blockchain accelerator and venture capital fund headquartered in Singapore, has officially announced the launch of its fourth batch of startups under LongHash Hatch, an accelerator programme designed for blockchain startups.

LongHash Hatch is a 12-week programme that includes modules in strategy formulation, go-to-market execution, and subject matter guidance across technology, marketing, and fundraising.

Some of the industry leaders who will be participating in the programme include Fenbushi Capital, HashKey Capital, Kenetic Capital, and Dragonfly Capital, with Ethereum Foundation, Maker, Synthetix, and InstaDApp.

The accelerator has raised over US$16 million in funding for its portfolio to date, with projects including AID: Tech, AlphaWallet, Keyless and Xanpool.

“The growth of the blockchain ecosystem needs to be an undertaking that is both directed and purposeful. LongHash Ventures has demonstrated its unparalleled sourcing network and hands-on venture building capability in the past two years,” said Deng Chao, Managing Director at HashKey Capital.

Also Read: Going big? Then Go e27 Pro.

Here are the seven startups in the programme:

CredMark
A digital asset credit bureau that equips financial institutions with non-traditional credit data based on blockchain financial history and private data

Hashtacs
A white-label solutions platform which helps financial institutions with efficient records consolidation and easier transactions via blockchain

Pravica
An email and communications software which provides privacy and security blockchain,  also enables payments via email

Puma Browser
A mobile browser which is private by default, and able to stream micropayments to websites via blockchain

StaTwig
A SaaS startup for efficient tracking of vaccines and food supply chain using blockchain and IoT

Viewbase
A blockchain analytics platform for cryptocurrency traders, with data models including Exchange Deposit Tracker, Inflation Tracker, and Crypto Sector Indices

Xend
An African end-to-end merchant solution including inventory management, payments and business intelligence

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As an entrepreneur and angel investor, I have invested in more than 24 companies, including PropertyGuru, Tickled Media, and ReferralCandy. Today, I am the Managing Partner and co-founder of Cocoon Capital.

Thank you to all those who attended this month’s AMA with e27 and Cocoon Capital. Due to time constraints, we were not able to address all the questions. Here are my views on the additional questions asked during the webinar:

What are the requirements and criteria for companies to prove their worth and business investment attractiveness further, especially in this current era?

The most important criterion is still the strength of the founding team. Where cash is now king, founders should ensure that the expectations of what they are able to raise, and at what valuations are aligned with the current market. 

Additionally, a clearly identified problem, a well-defined go-to-market strategy, and a big enough market opportunity are three areas that are clearly required. Furthermore, if founders have shown flexibility in onboarding clients to build up their future pipeline and revenue potential, it would make them stand out. 

What trends will we see with VCs saving dry capital for existing portfolio companies and struggling with capital calls from LPs, and corporations cutting down on cash outflow?

We see four key trends: Firstly, investment rounds are becoming smaller as VCs reserve funds for their current portfolio companies. Secondly, we believe deals will take longer to complete due to the inability to travel and meet founders. Lower risk appetite will also result in longer due-diligence processes.

Also Read: Meet the VC: Philippines’s Kickstart Ventures on becoming the country’s gatekeeper for startup ecosystem scale-up

Thirdly, we see a fall in valuations across the board. Lastly, we believe investors will put a higher emphasis on reaching profitability within a defined time frame. Previously, startups could raise money to buy the market share for the future, but we think investors will be much more focused on the present and how to create positive cash flow.

Singapore is such a small market. Is it viable to conquer the home market first to prove your company before you expand regionally and globally?

For most businesses, it would make sense to prove product-market-fit in their own markets first and expand to other markets after based on where the best opportunities lie, whether regional or global. As Singapore is a developed market, the next logical market is often on the global level, rather than regional. 

For companies that focus on events and travel experiences (which is pretty much non-existent now), how will you advise them in this period? Pivot out of their core, double down for the future, or maybe to hibernate?

Instead of focusing on revenue generation, think about where your sector will be in the next few months. When businesses and countries begin to open up again it will be a new world. Identify core problems to solve and keep building your product to match your vision of how that new world will look. 

We typically advise companies against hibernation as it will be difficult to regain any traction or rebuild the team. However, if that is the only option due to the lack of funds, then companies may go into hibernation.

While stressful, founders can also possibly take on other jobs to make sure their business can keep running and pay salaries to key staff.

Also Read: In conversation with Will Klippgen and Michael Blakey of Cocoon Capital

We expect this crisis to move into one of the worst recessions the world has experienced. How would the monetary and fiscal policy changes affect the risk appetite for the investors?

As long as there is uncertainty in the market, investors will take a more cautious approach to invest, bringing us back to our point around longer due diligence processes and smaller rounds.

Many large venture capital funds have closed billions of dollars over the last few years meaning there is still ample capital to deploy. But they will be more selective and take longer to do deals. Also do note that most of the capital is tied up in Series A and later stage funds.

What are the three most common denominators between the companies you have already invested in?

They are all mostly B2B, tech-enabled companies that are able to scale regionally or globally in markets where they have a good chance to build significant barriers to entry.

How would you assess early-stage startups now at this juncture given the pandemic and the budget worries?

We will assess startups the same way we normally do. We would, however, place more emphasis on capital conservation and prudence in spending. We are spending more time on doing due diligence on each investment and we need to see that 

What are the requirements for companies to apply for funding with Cocoon Capital?

We welcome all seed-stage, enterprise and deep tech companies to apply to Cocoon Capital for investment. Companies may apply for funding at cocooncap.com/apply. 

Also Read: News Roundup: FoodRazor snags US$900K seed funding led by Cocoon Capital

Is there a singular most important trait that Cocoon is looking for when hiring new team members for the fund?

Not really, but we require a passion for entrepreneurship and for solving meaningful problems.

Is there an age limit on founders/co-founders applying for investment with Cocoon Capital?

None. We are open to all ages, and we are also actively encouraging women to apply to us. We also encourage founders to create both age and gender diversity in their teams!

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Register for our next webinar: Fireside chat with Paul Meyers and Jussi Salovaara

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