The adoption of advanced technologies such as Artificial Intelligence (AI), Machine Learning (ML), Big Data, and the Internet of Things (IoT) has accelerated in the past few years across many sectors and organisations – both large and small – have seen the potential benefits that could be brought to bear by these technologies. This is evident even more so in recent times where Covid-19 restricted how businesses could normally conduct their day-to-day operations and the adoption of advanced technologies has allowed them to stay relevant amidst the challenges.

While the rate of advanced technology adoption varies across industry sectors, French tech giant Thales Group and the Civil Aviation Authority of Singapore (CAAS) saw the need to leverage co-innovation to accelerate the adoption of advanced technologies in Air Traffic Management (ATM).

In November 2019, CAAS and Thales established the Aviation Innovation Research (AIR) Lab. The joint lab brings together multiple stakeholders in the ATM value chain – from air traffic controllers to AI experts and local start-ups, all supported by expert ATM engineers and software engineers specializing in latest technologies – creating a veritable ‘sandbox’ where the diverse team can experiment and co-create the future ATM capabilities, leveraging technologies such as Cloud native frameworks, DevOps CI/CD automation, big data, AI / ML etc.

The multi-disciplinary team adopts an agile ‘build-test-and-learn’ methodology, working in short sprints that enable Minimum Viable Proof-of-Concepts (MVPs) to be co-developed in a shorter time frame.

One concept which motivated the conception of AIR Lab is the core belief that diversity in perspectives combined with the latest open technologies can precipitate out-of-the-box solutions which will be key enablers for future ATM systems. It is not just traditional ATM engineers who are involved, but also the operational air traffic control users and the “young” tech talent of innovative start-ups and enterprising developers who can envision a digital ATM future that is both technically advanced and ready to meet the many challenges of the aviation sector such as eco-friendly “green” operational concepts to address carbon emission objectives.

Leveraging data for innovation: AIR Lab’s Open ATM Architecture and APIs

AIR Lab’s first priority since its inception was to develop an Open ATM architecture.

The adoption of open, standard technologies on an Open ATM platform will benefit the entire ATM ecosystem by reducing the ‘build-test-learn’ MVP life-cycle. With the shortened lifecycle, smarter, safer, more efficient and secured airspace management capabilities can be made available earlier.

The MVP approach adopted for the AIR Lab’s Open ATM architecture programme uses Scrum practices and the Agile framework. These practices and the use of open technologies including public APIs for service access align with the latest IT industry trends, thus enabling collaborations with the broader IT / start-up ecosystem as well as the nurturing of the next-generation talent for the ATM industry.

Also read: Solving multiple medtech problems with a single device powered by AI

An Open ATM platform will also enable data and service exchanges at the B2B / enterprise level, allowing multiple stakeholders to provide and consume data/services on the platform.

Imagine the potential applications that can be co-created when Air Navigation Service Providers (ANSPs), airlines and airports share data related to operations such as flight trajectories, weather, planning constraints, connecting passengers/cargo amongst many others, and share common optimization objectives which can benefit all stakeholders in the aerospace value chain.

Safe and Secure Data Management

The work in AIR Lab also involves ensuring data is shared in a safe and secured manner. AIR Lab’s Chief Product Owner Mr Hugh Rodrick, said, “A common misconception is that Agile, Scrum and MVP are equivalent to throwing the systems engineering rule book away. This is not the case. Setting out a solution and design which appropriately addresses the needs whilst respecting the system constraints, (e.g. safety, security, quality, maintainability, etc.) remains paramount.”

“One key need of AIR Lab’s Open ATM platform is to enable access to ATM services using public (secured) APIs based on open technologies, whilst allowing integration of third-party capabilities as services,” he added.

When the Open ATM platform is connected to an operational ATM system (such as the Thales LORADS III that is currently operating at the Singapore Air Traffic Control Centre), such systems constraints must be respected as we allow for real air traffic control data to be shared with trusted collaboration partners. The entire process must adhere highest levels of cybersecurity measures which limit access and ensure potential “attack-surfaces” are identified and minimised – all of which are built into the Open ATM platform using the latest web security features.

Also read: TuringCerts combats fraud with blockchain-powered certificate validation

The Open ATM platform’s public API gateway limits access through the use of authorisation keys and is prepared for role-based credentialed access. It is also designed to allow Open ATM system services to have multiple “personalities” such as a privileged API set that is only accessible by clients who connect from within a defined IT domain, such as a CAAS facility.

This subsequently allows sensitive air traffic control data to be leveraged from within air navigation service providers such as CAAS, but excluded from the data provided to the public API personality.
Safety is also addressed through such cybersecurity measures. By effectively isolating the operational ATM system and the Open ATM platform network domains using best practice cybersecurity architecture, the safety-certified status of the operational ATM system is not impacted.

Hear more from the AIR Lab Team

On the experience and benefits of the ‘build-test-learn’ MVP approach employed in AIR Lab, one of the lead developers from the AIR Lab team, Lee Yan Shen said, “Coming from years of traditional software engineering practice, working with the agile process adopted in AIR Lab has been both a refreshing and enlightening experience”.

“The lean organisation, together with the open and transparent culture that we developed along the way, and the direct access to end-users create a perfect environment to reap all the benefits of agile development.”

“The short iterations with regular open and honest discussions and reviews builds strong camaraderie between team members, allowing us to actively learn from each other and rapidly build up our knowledge in both business and technical domains,” Lee added.

Also read: Nongsa D-town: bridging the digital talents of Southeast Asia

The open ATM platform also allows easier data sharing and service exchanges. Kevin Tan, an executive engineer from CAAS working in the AIR Lab, highlighted how CAAS’ engineering team and other R&D partners will be able to experiment and validate their R&D concepts easily with the integration to the Open ATM platform and its data via the APIs.

“This will help significantly reduce the time for innovative explorations and implementations. CAAS can build up the local aviation ecosystem by inviting start-ups and local SMEs to explore the use of the APIs for integration and adaptation of their technological products into the aviation domain. CAAS will also be able to make use of the Open ATM platform and its APIs in AIR Lab as means to build up the engineering competency in CAAS,” Tan added.

Collaborative ecosystem for a better tomorrow

The ATM sector has different moving parts and as such, the approach for innovation cannot be one-dimensional. A collaborative environment where different problem-solvers come together, can accelerate innovation and the digital transformation of this unique and complex sector.

Multiple reports and studies advocate the ethos of collaboration and this is more pertinent now than ever when industries across the Asia Pacific and the entire world are accelerating digital transformation in anticipation for the post-pandemic future. With the expertise in the latest technologies, like machine learning, AI, big data and IoT, of the various stakeholders coming together, the aviation sector can look forward to a more creative, efficient and resilient future.

Innovative start-ups have a unique opportunity with next-gen open platforms like AIR Lab’s Open ATM architecture to pioneer innovation in the ATM industry. Through AIR Lab, CAAS and Thales seek to increase investments into ATM-related research in Singapore by bringing in ATM domain experts and hiring the right local talent.

Interested start-ups, universities, and developers can view the Open ATM’s public APIs here. Those who want to take it a step further and trial the Open ATM services or even build solutions in partnership with AIR Lab are welcome to email the team at contact@airlab.aero.

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This article is produced by the e27 team, sponsored by 
Thales

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Today, everyone wants to be a startup investor.

From Coinbase’s IPO to Grab’s SPAC merger, startups are dominating the market headlines. Undeterred by the high-risk nature of venture investing, individual investors are hungry for the chance to invest in startups.

In the name of democratising ownership, startups themselves are becoming more receptive towards equity crowdfunding campaigns. Last month, US-based Gumroad, a startup that helps creators sell their works, allocated US$5 million of its funding round to anyone who was willing to invest a minimum amount of US$100.

However, Daniel Lin, co-founder and CEO of FundedHere, a Singapore-based licensed private equity and lending-based crowdfunding platform, is quick to point out that such a model could easily burn the pockets of retail investors.

“The idea of democratising ownership is a beautiful thing but we must also be equally aware that investing requires a healthy combination of discipline and knowledge,” he told e27.

Below are edited excerpts of the interview.

What are the key challenges for individuals looking to invest directly into startups? How does transacting through a crowdfunding platform solve these?

There are three main challenges for individuals who are professional investors.

Firstly, individuals do not know where to look for these promising startups as they are not in the industry.

Secondly, conducting due diligence on these startups is difficult, as founders are unlikely to entertain individuals who only put in smaller amounts, compared to ultra-high net worth individuals and institutional investors.

Lastly, the expected investment quantum is usually at least S$50,000 (US$37,500). This is largely too high for most professional investors and hence prices them out of good opportunities.

Also Read: 3 ways startups should assess different financing options

A crowdfunding platform can help professional investors overcome these three challenges.

A platform that is licensed would have the capability to conduct due diligence to ensure that only the most promising startups are featured. With the use of technology, platforms could provide a seamless investment process that involves discovering the startups, completing transactional documents and transferring the investment funds.

The biggest advantage is that investors can now directly invest in a startup at a lower investment size. This is important as it provides an opportunity for younger professional investors to gain access to interesting opportunities without being overweight in a high-risk high-return asset class such as startup investing.

How does a due diligence process for a startup looking to crowdfund on FundedHere look like? What are the key metrics you focus on?

We start the process by getting startup founders to fill up a scorecard. This scorecard takes into account 20 variables that would inform the platform on whether the startup is within the ballpark of being investment grade.

For successful startups that clear the scorecard requirements, they will usually go through a consultancy phase called the “Discovery Phase”, where our team will work closely with the founder to equip them with three crucial documents essential for fundraising.

This includes a comprehensive valuation report with stress-tested underlying financial assumptions, a fully verified online data room with due diligence conducted and to be made available to prospective investors, and an investor memorandum to summarise the unique selling points of the startup.

Also Read: ‘Due diligence is like dating before the long-term marriage’: Accion Venture Lab’s Paolo Limcaoco

Thereafter, we will conduct an onboarding assessment by incorporating comments and views from industry experts covering business, tech and commercial factors.

The potential to scale, the competitive advantage that a startup has, the competency and experience of the founder and his team, and the valuation of the startup are key factors we look at when deciding when to run a fundraising campaign.

How do you consistently source for startups to be listed on the platform? On average, how many crowdfunding campaigns do you run in a month?

We have spent the last five years building a thriving ecosystem out of Singapore. This includes partners such as Institutes of Higher Learning (IHLs), syndication platforms, angel investment networks globally and mentors and investors — each of them providing an extensive pipe of potential startups.

We also engage the community through mentorship, startup competitions and conversations with entrepreneurs so that we become the go-to partner for fundraising.

On average, we try not to run more than three campaigns in a month so that investors do not have to choose between startups. We ensure that startups running their campaigns concurrently are not within the same sector to ensure compatibility and a better selection for our investors.

Do you see crowdfunding extending past the seed/Series A rounds and catering to Series B and above financings? 

Rounds after the Series A round usually require institutional funding as the quantum of fundraising is usually much larger. Unpacking the complex nature of multiple revenue streams across multiple geographies becomes a more challenging endeavour.

Crowdfunding platforms in countries with a larger population could provide access into Series A rounds and beyond if they have a vibrant retail investor ecosystem but this would be more of an exception than the rule.

FundedHere focuses on startups in their seed round and pre-series A round. The key to our value proposition is providing access to non-accredited investors to fund rounds that are up to US$1 million as it can be done in a swift and systematic manner.

How has investor behaviour/preferences changed in light of the pandemic and its economic challenges? What are some metrics investors are paying more attention to?

The pandemic has built a large amount of uncertainty in the markets and the natural reaction is for investors to shore up cash. However, sophisticated investors see this as an opportunity and are still on the lookout for good deals. Investors tend to look at how a founder manages its cash flow, how he responds to crises and how adaptable he and the startup can be.

Also Read: The lure of the orient: How retail investors are being drawn to Asian investment markets

Valuation tends to be more modest to account for a more conservative outlook and founders who are able to price that into the valuation tend to receive the funding they need.

Gumroad, a US-based startup, recently announced it was looking to raise money from unaccredited investors as part of a crowdfunding campaign. Could you see this funding model be replicated within Southeast Asia? 

Yes definitely, but it does not come without challenges. The idea of democratising ownership is a beautiful thing but we must also be equally aware that investing requires a healthy combination of discipline and knowledge.

The traditional benchmark of requiring a certain amount of affluence before investing in alternative products is increasingly less relevant as the investment sizes are now significantly smaller.

We can still apply the same principle of investor protection by capping the amount that each non-accredited investor makes and that not more than a fixed percentage of his or her annual income is invested in the alternatives so that the investor’s risk-reward investment portfolio is still properly managed.

At FundedHere, while we are able to raise funds from retail investors, we have opted to keep the minimum investment quantum to S$5,000 (US$3,800) and make it accessible only to investors who earn in excess of S$100,000 (US$75,000) per annum.

The underlying hypothesis is that this provides a fair balance of ensuring that the investor is protected and yet at the same time, has access to these interesting opportunities.

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Image Credit: FundedHere

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Global VC firm Big Idea Ventures (BIV) has unveiled the eight Singaporean startups selected for its New Protein accelerator programme.

This cohort comprises 15 early-stage ventures, of which seven are from New York.

The programme runs for five months and invests up to US$200,000 each in startups.

As per its website, a follow-on investment of US$3.5 million will also be made in the top 20 per cent companies that successfully complete the programme.

Non-financial support includes mentorship and connections with industry experts that can help scale the startup’s products.

“This group of startups has been incredible to work with in the New Protein Fund,” said Andrew D. Ive, founder of Big Idea Ventures. “All of these companies are addressing real-world challenges and represent some of the most promising innovations in the food and agriculture sectors.”

BIV’s New Protein Fund, a US$50-million fund, is dedicated to seed and early-stage investments in plant-based and cell-based food, ingredient and technology companies.

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

Here is snapshot of the eight Singaporean startups:

Angie’s Tempeh: Tempeh fermentation technology to create protein-rich foods.

Animal Alternative Technologies: Cell-based meat services including bioreactors and software.

[Stealth Mode]: B2B ingredients company developing sustainable alternatives to tropical oils and animal fats.

GreenGourmet Foods: Plant-based dairy.

Haofood: Alternative chicken protein from peanut focused on the Asian market.

MAD Foods: Plant-based beverage.

Hybrid Accelerator (participants in both Singapore and New York)

Wellme: Plant-based yogurt.

Meat. The End: Production technique to replicate meat-like mouthfeel and taste.

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Image Credit: Big Idea Ventures

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STACS, a Singapore-based fintech startup providing blockchain technologies for financial services, has raised US$3.6 million in pre-Series A funding.

This round brings its total funding raised to date to more than US$6 million.

Led by Wavemaker Partners, the latest funding is a ‘prelude’ to its Series A round, which STACS said will commence on a larger scale later this year.

Government-backed blockchain accelerator Tribe, besides Stellar Partners, also participated.

STACS was a graduate of Tribe’s third accelerator batch last year.

As per a press release, STACS will use the fresh fund to ‘expand its ecosystem of global financial institutions on its Environmental, Social and Governance (ESG)-enabling technology infrastructure.’

Founded in 2019, STAC’s Distributed Ledger Technology (DLT) platforms support the effective lifecycle management of securities and ESG financing dimensions, encompassing green and sustainability-linked bonds and loans.

STACS aims to digitalise assets, processes and documents using its patent-pending STACS Blockchain technology.

Its clients and partners include global banks, national stock exchanges,and asset managers.

Having implemented its real-time trade processing platform live with Eastspring Investments and BNP Paribas Securities Services in 2020, STACS claims it successfully reduced trade breaks for both institutions by more than 90 per cent.

The company has since leveraged its same core patent-pending blockchain technology to launch GreenSTACS, an industry-wide ESG financing technology infrastructure that supports effective green and sustainability-linked loans and bonds.

Also Read: How blockchain-powered fintech services can improve financial inclusion

“Since the 1970s, the capital markets have been fragmented, with institutions operating on different systems and ledgers, and going through a linearly-dependent process which has led to a situation whereby US$800 billion of capital is being locked up every single day in the international clearing system,” shared Ray Ferguson, Chairman at STACS, said:

“Due to multiple layers of processing, nearly US$300 billion is being spent on transaction costs in a model that one would be hard-pressed to argue is efficient. This is all wastage — wasted time, wasted money, wasted carbon footprints — that we at STACS are committed to addressing through our distributed ledger technology. Innovating our way out of these problems is vital if we are to deliver a green and sustainable future for financial services,” Ferguson added.

“There is an immense opportunity to help financial institutions process large volumes of trades more quickly, securely and accurately while reducing costs and illiquid capital. As an enterprise distributed ledger technology provider, STACS has productized a secure layer that can be deployed instantly above existing infrastructure,” said Gavin Lee, General Partner at Wavemaker Partners.

“Enterprise sales is never easy for young companies, but Benjamin (co-founder and Managing Director of STACS) is a convincing and seasoned serial entrepreneur who has secured numerous leading financial institutions as key clients. We are excited to be part of the future digitalization of capital markets,” Lee added.

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Image Credit: STACS

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Malaysian early-stage VC firm 1337 Ventures and pan-Asian insurance firm FWD Insurance have joined hands to launch a bi-annual pre-accelerator programme.

Called Alpha Startups, the 4-week programme is specifically targeted at early-stage startups in the fintech and insurance industry based in Malaysia.

The programme will offer services such as entrepreneurship modules and access to mentors, tools and technology for founders to be able to bring their ideas to reality.

After the first round, the top 10 startups will undergo a further mentorship programme, where they will be able to further refine their business models in anticipation of the demo day.

During the demo day, the top two startups will receive an investment of US$36,443 from 1337 Ventures and FWD, in addition to US$29,513 worth of infrastructure credits for their cloud infrastructure, recruitment, marketing and payment gateway needs.

Investees also stand a chance to receive further funding for their seed to pre-series A round.

Also Read: 1337 Ventures partners with Malaysia’s central bank to launch fintech accelerator programme

Bikesh Lakhmichand, CEO of 1337 Ventures, said, “We always wanted to see the private sector step up and play a more long term role in building the fintech and insurtech scene in Malaysia compared to the touch-and-go approach we have seen other players take.”

“FWD Start-up Studio’s approach is a game-changer with not just its long-term commitment to early-stage funding across multiple intakes but also through Alpha Startup’s programmatic approach to provide start-ups with insights, paid POCs (proof of concept) and access to markets,” he added.

Applications for the programme are open and set to run until 25 startups are selected.

Founded in 2012, Kuala Lumpur-based 1337 Ventures also runs accelerator programmes for MNCs and GLCs, such as Bank Negara Malaysia, Khazanah Nasional, Telekom, Digi, MDEC, CIMB and Maybank, amongst others. Notable graduates include Funding Societies, Parkeasy, Senang and Coins.ph.

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Image Credit: 1337 Startups

 

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