Once you decide to grow your company as a startup, the amount of money you need to support the scale-up often exceeds what your current business can afford. That is why financing from different types of investors serves as a short in the arm and may help your company take off not only through the capital injection but also through the added expertise and network.

Below are the nine types of investors that are most commonly utilised in the startup world.

1. Venture capital firms
2. Angel
3. Angel syndicate
4. Personal investor
5. Accelerators/Incubators
6. Banks
7. Government agencies
8. Retail investors
9. Family office
10. Corporate venture capital

1. Venture capital firms

Venture capitalists are private equity investors who make investments through venture capital firms (VCs). They invest in high-growth businesses in exchange for a share of the company’s ownership. 

People or organisations who finance these VCs are called Limited Partners (LPs), including pension funds, endowments, foundations, finance companies, family offices and high-net-worth individuals. LPs have limited liability up to the extent of their investment and do not involve in the day-to-day management of the fund.

Meanwhile, individual professionals who are responsible for making investment decisions for the fund are called venture partners, or operating partners. They also generally take board seats in your startup after the investment.

Cheque sizes:US$200K – US$350M+

Also Read: SEA tech founders playbook: A to Z of becoming a fundraising legend (Part 1)

2. Angel

Angel investors are individuals who provide capital to early-stage startups. They are usually wealthy entrepreneurs who have a yearly income of more than US$200,000 or a net worth of more than US$1 million.

This type of investment is usually made in the form of a loan or a stock purchase, together with the advisor role of the angel. Since the deal is often brought up in between the startup’s first round of funding and a venture capital attempt, it yields high returns when the company scales up but also imposes high risks as most businesses fail at this stage.

Angels often invest in groups and form a network to keep track of new deals within the industry.

Cheque sizes: US$10K — US$30K

3. Angel syndicate

According to an explanation by Keystone Law, an angel syndicate is defined as a group of investors who agree to invest together in a particular project. It can be set up by angels or investees with funds that are drawn from any source.

An angel syndicate is led by a lead angel investor who coordinates the syndication and sits on the board of the company after investment.

Cheque size: US$25K – US$100K

4. Personal investors

Friends and family often support founders with their money, which turns them into personal investors.

Personal investors take the lion’s share among all sorts of financing sources, contributing more than US$66 billion yearly and an average of US$23,000 per project.

Since the loans or investments come from a close relationship, it is important to separate family and business, as well as state clearly the contract and terms prior to officially employing this investor type.

Cheque size: US$2K— US$30K

5. Accelerators & Incubators

Accelerator programmes provide a set timeframe where firms spend from a few weeks to a few months working with a group of mentors and experts to supercharge their business and avoid mistakes. Some of the most well-known accelerators are Y Combinator, Techstars, and The Brandery.

Startup incubators start with businesses or even single entrepreneurs, and they will not follow any fixed timeline. While some incubators are independent, others are funded or maintained by VC firms, angel investors, government agencies, and large enterprises, among others.

If accepted into one of these programmes, the startups may receive from US$10,000 to Us$120,000 in seed financing to help them develop and market their product, and access to extra information and resources.

Cheque size: US$10K – Us$120K+

Also Read: SEA tech founders playbook: A to Z of becoming a fundraising legend (Part 2)

6. Banks

Banks are a traditional financing vehicle and ranked fifth among the most common funding sources for startups, according to Dealroom.

Leveraging the finance industry, banks often invest in fintechs that can add to banks’ service offerings. Some banks also set up their venture arms to focus on startup investments. In this method, banks can be considered corporate investors.

However, it is notoriously difficult for early-stage startups and small enterprises to access banks’ funding as the startup needs to provide proof of a revenue source or collateral before its application is authorised.

Cheque size: Not specific 

7. Government agencies

There are government initiatives that provide funding for certain projects. They will not compel the firm to give up any stock, but they will have an influence on its profitability.

Startups are often qualified for these grants and schemes based on the government’s qualifying requirements, which might be difficult for new businesses to overcome. With this in mind, entrepreneurs should carefully consider what those expectations are beforehand to fulfil during their development.

Cheque size: US$10K – Us$120K+

8. Retail investors

Retail investors can be understood as non-institutional investors that include almost everyone who uses a broker, bank, or real estate agent to acquire and sell debt, equity, or other investments.

These individuals are not investing on behalf of others. Instead, they are managing their own funds. Personal goals, such as planning for retirement, saving for their children’s education, or funding a significant purchase, are the driving forces behind this type of investor.

Business strategies to attract sums of funds from a large number of retail investors might be known as crowdfunding (as in early-stage companies) or initial public offering (IPO) (as in mature companies).

Crowdfunding uses social media and crowdfunding platforms to connect investors and entrepreneurs. This type of investment works best for social media-savvy and B2C firms, which can employ the network effect as well as the customer base. When customers enjoy a product or service and believe in its future development, startups may take advantage of the potential to get initial funding to launch their product.

The majority of crowd funders are between the ages of 24 and 35. The average amount raised per campaign in the crowdfunding sector will be US$127,466.

Cheque size: US$50M+

Also Read: Pitch deck for dummies: A compilation of top tips and advice from the community

9. Family offices

Private wealth management advisory firms that service ultra-high-net-worth people (HNWIs) are known as family offices. They offer a full package of services, from budgeting, insurance, charitable giving, wealth transfer, investment, and tax services, to managing the assets of an affluent individual or family.

Since family offices are growingly interested in investing in startups, working with them might be extremely different depending on who is in charge of the investment choices and processes.

For this type of investor, taxes, long-term intergenerational investment, status, and income may be more critical than for other types of investors who are seeking a faster exit.

Cheque sizes: US$200K – US$10M+

10. Corporate investors

An incorporated business that chooses to invest in another firm is known as a corporate investor.

Big corporations may profit from investing in startups by bolstering their own growth figures and diversifying their holdings.

Some corporations also put financing into outside startups through investment, merger or acquisition. Some even establish their own accelerator and incubator programmes, as well as an ecosystem, to help cultivate these prospects.

Cheque sizes: US$200,000 – US$67B

—

Ready to meet new startups to invest in? We have more than hundreds of startups ready to connect with potential investors on our platform. Create or claim your Investor profile today and turn on e27 Connect to receive requests and fundraising information from them.

Image Credit: 123rf

The post Finance your startup: 10 types of investors you should know appeared first on e27.

Every October, we celebrate World Mental Health Day to raise awareness of mental health issues worldwide and mobilise efforts in support of mental health. Over the past 18 months, understanding mental health and wellbeing has progressed significantly– not just in the media or in our social spheres but also the workplace.

This increased focus on mental health and wellbeing has signalled a vital realisation that employee health is critical for enabling business continuity and resilience. Many businesses are making great strides in putting workforce wellbeing at its core.

In the wake of the latest World Mental Health Day, it’s the perfect opportunity to reflect on how organisations have supported their workforce since the onset of the pandemic and how these strategies should evolve as the pandemic continues into its third year.

Moving towards an endemic COVID-19

As Singapore moves towards an endemic COVID-19, we see gradual changes in our daily lives. International borders are reopening, large-scale events are resuming, and we are slowly returning to the office with greater frequency.

As we prepare to live safely with a virus here for the long haul, the authorities have adopted a reactive strategy that involves constant adaptation and implementation of restrictions and measures for social and business purposes.

This transition will require a significant paradigm shift in how organisations view and manage workforce health and wellbeing.

A proactive approach to building resilience, wherein businesses can anticipate and react to future events swiftly and decisively, will better equip them with ways to tackle the next wave of health concerns– be it a real issue like influenza or a silent one like mental health.

According to International SOS’ Risk Outlook 2021, one in three business risk professionals predicted mental health as a primary productivity disruptor this year. Left unmanaged for 2022, this could have serious financial and business continuity repercussions.

Also Read: Why Khailee Ng puts mental healthcare support as key to successful founders-investors relationship

Most pressing amidst the changes in restrictions is the recognition that these ever-evolving restrictions can take a toll on employees’ mental wellbeing. Weathering through these changes will require agility and flexibility– but how can businesses offer this to employees, whether they are working on-site, remotely, or in a hybrid arrangement?

Education is important in helping employees understand that an endemic COVID-19 is not a step backwards from the past 18 months of trying to eradicate the virus with it.

Backed up with clear and open communication about the business direction, goals, and concerns will help allay fears, provide clear guidance, and instil confidence and trust in the organisation’s response towards future crises.

Acclimatising to business as usual

Looking ahead, a state of endemicity will enable us to resume business travel, on-site operations, and even attend or organise large-scale work events and conferences.

While these might be exciting for parts of the workforce, we must also keep in mind that other segments of the workforce might approach this with greater trepidation.

While it might be instinctive to view re-entry anxieties and fears as personal struggles, they can also impact productivity and trust in the organisation.

Business leaders have a critical role in supporting employees emotionally through these concerns and fears and taking steps to build a healthier and more resilient workforce. In working with clients on such issues, we have identified three crucial steps towards fostering an environment that prioritises mental wellbeing.

Begin with knowing your people, understanding where they are at, and how they can be supported. To provide organisations with insights into their workforce wellbeing, we have developed Emotional Health or Resilience surveys with tools that have been scientifically validated and can uncover individual concerns.

With these findings, organisations can understand how the workforce is coping with the ongoing situation and curate a tailored programme to address specific issues.

Once you are aware of how your workforce is faring, you can assess your workforce risk levels. The information from the surveys can help HR teams and managers identify employees who are more emotionally vulnerable and hence require more attention and assistance.

With that knowledge, they can create a safe space for all so that employees know they have a good support structure to lean on and can share openly about their emotional health challenges without fear of discrimination.

Also Read: Leaders, it’s time to talk about mental health

Businesses should not underestimate the power of emotional support services such as remote confidential counselling and telehealth assistance by a team of health experts. Above being able to provide clinically-proven support for affected employees, these third-party services offer employees easy access and greater security that their issues will be handled with discretion and professionalism.

These channels should be communicated widely and consistently. By implementing multiple, varied channels of support, employees can be assured that they can seek assistance and support so that they are comfortable.

Preparing for future crises

Raising awareness for mental health issues frequently will help to combat stigma and cultivate a workplace culture that is resilient no matter what comes. This can come in the form of conveying the types of support available and sharing resources on ways to deal with stress, manage workloads, and keep an excellent work-life balance.

With this positive workplace culture, the organisation also demonstrates its openness to support and actively encourage actions that promote mental and emotional wellbeing.

Different teams, including crisis management, HR, and business continuity, should work together to adopt a more holistic approach towards workforce wellbeing, ensuring consistency and sustainability.

While these teams have previously operated in silos, the pandemic has brought an added dimension of employee wellbeing into crisis management. Teams that can work together to address twin operational and employee well-being issues have tremendous success at crisis management.

Whether the next crisis is of a medical, political, or environmental nature, organisations with employee health and wellbeing embedded in their culture, combined with robust approaches towards crisis management, will be in the best position for recovery.

Also Read: Moving mental health out of Freud’s era and beyond the couch with big data

We are now at a pivotal moment in our battle against Covid-19 – and the steps businesses take to address employee health and wellbeing will have long-term implications on business resilience, continuity and sustainability.

Building an environment that places mental health as a core pillar of business resilience will foster a workforce that can weather challenges, bond closer and develop loyalty. With the adequate support and resources to build their mental resilience, employees, in turn, will make a healthy and robust organisation that’s poised for success.

–

Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic

Join our e27 Telegram group, FB community, or like the e27 Facebook page

Image credit: archnoi1

The post How to tackle employee mental health to build a resilient workforce appeared first on e27.

Technology has been a lifesaver during the COVID-19 pandemic as it kept individuals, societies, and economies connected to one another. Among population demographics, Southeast Asia’s youth, which technology already inculcated into their daily lives prior to the pandemic, have been further pushed to the digital forefront.

Companies, especially those selling products and services to the public, have been quick to follow the market and adopt digital practices, given that the world will never return to the old-fashioned way once the pandemic ends.

Revolutionising insurance practices

One industry running to remain abreast with young customers is insurance. Realising the sheer breadth of this youth target market, which includes millennials, insurers have begun inching away from legacy business practices to become more digital. And there cannot be a better time, as COVID-19 has made consumers realise the importance of insurance as a buffer against life’s uncertainties.

Aware of the digitalisation trend within the insurance industry, personal finance comparison site, MoneySmart, recently released the report “Bots Versus Bodies — Insurers in Singapore Can Do More To Provide The “Phygital” Experience That Customers Really Want” which explored the struggle insurers face in refitting legacy processes and products to conform with the contemporary customer. On one side, insurers feel the pressure to add digital channels that enable customers to self-serve, i.e. independently find the information on or purchase an insurance product. Yet, the complexity of insurance products means that the presence of real-life advisors remains crucial, with the report revealing that 91% of respondents asserted overall satisfaction when an advisor assisted the insurance purchase.

Also read: Wealthech startup Kristal AI looks to democratise private banking

So, where does the equilibrium of the “phygital” — or intertwining of the physical aspects of insurance, notably advisors, with the digital, such as insurtech — experience lie? A survey on customers of four types of insurance products, namely “car, critical, hospitalisation, and home contents” reveals that this equilibrium shifted alongside the scale of the perceived complexity of an insurance product and its purchase stage.

Car insurance, for example, is on the low end of the scale, meaning that customers find these products relatively straightforward to understand. Hence, car insurance will benefit from gaining greater availability of convenient, self-service digital channels. The research shows a strong preference for digital channels among car insurance customers.

Right from the beginning of their purchase journey, 80% of respondents said they used financial aggregators, notably MoneySmart’s car insurance page, as their source of information given the ease of obtaining what they need, including insurance quotes. As many as 52% of customers even chose to get their car insurance online, with 92% saying that they were satisfied with the online purchase process. With financial aggregators also offering online applications, it is not surprising that customers seek this streamlined experience. 

Moving up the scale next is critical illness, followed by home content insurance. For the latter, the research makes it clear that there is more of a balanced need between bits and bodies. Customers strongly opt for self-serve channels to learn about the choices available in the market, with financial aggregators emerging as the top pick again at 88%. A benefit of financial aggregators such as MoneySmart’s home insurance listings is not only the consolidated information in one spot, but also the special offers insurers dispense for online buyers. Yet, 83% of respondents would rather make claims through an advisor given the complexity of the process.

The scale ends with hospitalisation insurance in which customers found the assistance of knowledgeable advisors deeply reassuring even during the shopping process given the importance and complexity of these products.

Maximising the best of both worlds

With regards to purchasing stages, customers overall turned to digital channels to gather initial information on insurance, with 73% visiting online financial aggregators. Yet, during the complex claims process, 65% of customers chose to submit paperwork via advisors to secure a successful outcome.

Also read: These startup champions are ready to build a new Hong Kong

However, a closer look at each stage shows that “bots” and “bodies” have a mix of roles in every stage. In the purchase planning stage, customers researched insurance products by visiting websites and discussing them with family or friends. Then, in the shopping around for the best product stage, customers start heading to advisors and websites that they believe would give unbiased insights. Next is the actual buying of the insurance product stage where, despite an even split between customers purchasing online and via an advisor, those who chose the latter reported higher satisfaction. In the last stage, which is making claims on the policy stage, customers overwhelmingly preferred advisors who could walk them through the complex procedures, thereby minimising errors.

However, despite the importance of a cohesive “phygital” journey, the report pointed out experiential gaps, whereby one of them appears early on in the consumer journey. Digital channels intended to facilitate the pre-purchase stage often lacked the simplicity to address customer queries, such as on premiums and coverages, in a straightforward language that customers would instantly comprehend. As a result, customers go back to looking for advisors who can personalise the explanation.

Bridging the gap with MoneySmart

MoneySmart shares a number of recommendations for insurers wanting to plug the gaps. First, to solve the lack of simplicity of digital touchpoints, insurers must craft content that speaks with clarity to a wider segment of the audience. Insurers can experiment with embedding bot algorithms that enhance the understanding of questions whilst extensively utilising templated answers. And with customers becoming more comfortable with video conferencing, on-demand video calls with advisors can give customers the exact answer needed.

Also read: QBO partners with e27 for Startup Venture Fund Pitch

With the pre-purchase digital touchpoint solidly serving customers, it is now time to turn eyes to the next stage, which is catering to customers of insurance products with advanced complexity. This class of customers crave a concierge experience in which advisors cater to the entire process of selecting policies, compiling documents, as well as processing and submitting claims. MoneySmart proposes improving interactions by offering seamless omnichannel touchpoints that blend the best of both bots and bodies, encompassing tailored digital content that provides comprehensive pre-purchase information, on-demand access to advisors through all platforms, and an efficient online application process.

The success of insurers in finding the perfect equilibrium for the products will ultimately lead to a stronger industry that knows exactly how to give customers the personalised experience that they want — “bots” that get the job done and “bodies” that help them get through it.

– –

Photo by Kampus Production from Pexels

– –

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

We can share your story at e27, too. Engage the Southeast Asian tech ecosystem by bringing your story to the world. Visit us at e27.co/advertise to get started.

The post Bots vs Bodies: can insurers strike a balance between human services and tech? appeared first on e27.

Thailand-based listed agrifood major Thai Wah Group has formed a new venture investment arm to support B2B food and agritech startups in Southeast Asia. 

As per an official announcement, the subsidiary will have a US$3 million (THB 100 million) registered capital. It is expected to complete the registration in Q1 2022.

Also Read: How 73-year-old Thai Wah works with tech startups to break new ground in noodles production

As reported in TechinAsia, in its initial phase, the VC arm plans to invest in eight to ten early-stage startups over the next two to three years. It seeks to co-invest with other VCs in revenue-generating firms that are raising US$3-10 million in pre-Series A or Series A rounds.

Apart from funding, Thai Wah Ventures will also provide value-added benefits such as R&D, pilot development, and production roll-out. Thanks to the VC, startups will have a better grasp of the retail, wholesale, and cross-border distribution markets.

The major goal is to invest in food and technology enterprises in several sectors connected to Thai Wah Group’s core industries, including but not limited to farm technology, food processing and bioplastics.

The company says it is in talks with some of Asia’s VC firms to co-invest in the selected startups, aiming to assist at least four portfolio companies in becoming unicorns in the medium term.

“Not a single person or company can do everything themselves if they want to make the right move and fast. We believe open innovation will help us develop the right solutions faster,”Hataikan Kamolsirisakul, head of Strategy and Innovation at Thai Wah Group, told e27 in an interview last year.

Founded in 1947, Thai Wah Group provides B2B food ingredients, starch, tapioca starch and flour within a global food supply chain business. 

Touted as Asia’s largest distributor of vermicelli noodle goods, the firm claims that it has 13 operations in Asia and its business stretches across 30 countries in Asia, the US and Europe.

Also read: Agritech ecosystem in Thailand: More than 60 per cent of startups have not raised external funding

Thai Wah Group has been selected in the Stock Exchange of Thailand’s Sustainability Investment list over the past three years. It is also a part of the United Nations Global Compact program since 2020.

According to AGFunder, Southeast Asia’s agri-foodtech startup ecosystem is one of the world’s fastest-growing marketplaces. In 2019, the area secured a total of US$423 million in funding across 99 deals.

—

Ready to meet new startups to invest in? We have more than hundreds of startups ready to connect with potential investors on our platform. Create or claim your Investor profile today and turn on e27 Connect to receive requests and fundraising information from them.

Image Credit: Thai Wah Group

The post Thai Wah Group sets up VC arm to invest in food and agritech startups in SEA appeared first on e27.

ARC Group, a Shanghai-based boutique mid-market investment bank with offices in Singapore and Jakarta, has launched a US$20-million SPAC opportunity fund, called ARC Opportunity Fund.

An open-ended fund, a SPAC opportunity fund invests money as risk capital with sponsors to create new SPACs. (Special purpose acquisition companies or SPACs are blank-cheque companies that provide an alternative way to list in the public markets.)

A top executive of ARC Opportunity Fund told e27 that the fund has already made the first close at US$12 million (almost 60 per cent of the target size). The Limited Partners include family offices and entrepreneurs based in Malaysia and Indonesia.

Also Read: Can SPACs avoid another reverse merger crisis?

“Going public via SPAC mergers has seen tremendous interest in the past few years and has boomed on Wall Street since 2020, raising more than US$83 billion in 2020 and over US$125 billion in 2021 so far. However, its popularity has begun to wane as many SPACs trade below their initial IPO price,” said Chittransh Verma, managing director of ARC Opportunity Fund.

Typically, a SPAC is created by a sponsor who invests 5-6 per cent of risk capital. With this investment, the sponsor will become a 20 per cent holder of the SPAC after IPO. Once merged with a target company, the sponsor gets 5-6x returns on an average in a period ranging from one year and a half to two years.

“The capital required to invest as a sponsor in the SPAC risk capital makes this structure generally accessible to only ultra HNIs. ARC Group has identified this gap and decided to bridge it by making this market more accessible to a broader set of investors,” he said.

Headed by CEO Abraham Cinta and Verma, ARC Opportunity Fund will invest alongside high-quality SPAC teams globally.

According to Verma, the fund will invest by assessing sponsors’ ability to merge with the target company, and it has created a framework to select sponsors. “We can invest in 10-12 SPACs across varied sectors, geography, and sizes with each fund. We will target Asian sponsors who want to create SPACs. 90 per cent of them would be in the US market. However, we are also exploring options to work with sponsors looking to create SPACs in Singapore.

Also Read: The hidden danger in SPACs. Is the hype worth the risk?

ARC Opportunity Fund is yet to start investment from this fund.

Founded in 2015, ARC Group has been focused on providing public market solutions to mid-market companies with offices across Asia. The group has been a financial advisor in over 30 SPAC transactions.

—

The post ARC Group launches US$20M SPAC opportunity fund, hits first close appeared first on e27.

Thai e-commerce enabler CREA has announced a US$25 million strategic investment from SuperOrdinary, a global accelerator for beauty and personal care brands, in exchange for minority equity.

This round brings CREA’s total financing raised to date to US$38 million.

The collaboration will help CREA attract new brands to Southeast Asia’s flourishing digital commerce ecosystem by offering a one-stop solution covering the US, China and Southeast Asia.

The minority investment forges a strategic alliance between CREA and SuperOrdinary, which will develop a new cross-border global platform network and allow each other’s respective portfolio firms to expand into new markets.

Through organic business expansion and revenue synergies from the partnership, CREA expects its revenue to triple in 2022 and grow by 500 per cent by 2023. Over the last year, its portfolio of leading brands, spanning beauty, FMCG and fashion categories, has grown over 400 per cent.

Founded in 2019 by Lazada co-founders Aimone Ripa di Meana and Alessandro Piscini, CREA offers the opportunity for global brands to win the millennial and generation Z consumer by providing end-to-end services to operate on the existing digital channels such as Facebook, Instagram, Line, TikTok, Lazada and Shopee and their own online brand store.

Also Read: E-commerce enabler Great Deals closes US$30M Series B to build automated fulfilment centre in Philippines

CREA’s core services include store and channel management, fulfilment, digital marketing, data insights, creative and omnichannel solutions. Its clients include Kiehl’s, Clarins and Nestle Dolce Gusto.

In March 2021, CREA expanded into Malaysia and Singapore and is planning to open in Vietnam, Indonesia and the Philippines shortly.

Established in 2020 by founder and CEO Julian Reis, SuperOrdinary is a global distribution partner and brand accelerator facilitating sustainable global expansion for beauty and personal care brands, including Drunk Elephant, Malin + Goetz, The Ordinary, and Supergoop!.

SuperOrdinary’s services include global demand generation, distribution, branding and marketing, consumer data analytics, and product registration.

Additionally, SuperOrdinary is implementing an M&A strategy of incubating, investing in and acquiring brands to optimise marketing, infrastructure and scale globally.

In 2021, SuperOrdinary expanded into the US by partnering with beauty brands to strategically scale in an ever-evolving digital-first marketplace.

According to the latest e-Conomy SEA 2021 report by Google, Temasek and Bain, the Southeast Asia e-commerce market is expected to reach US$234 billion by 2025.

The region’s beauty and personal care industry is expected to grow by more than 5 per cent annually, driven by digital commerce penetration, providing SuperOrdinary with an attractive market opportunity.

—

Ready to meet new startups to invest in? We have more than hundreds of startups ready to connect with potential investors on our platform. Create or claim your Investor profile today and turn on e27 Connect to receive requests and fundraising information from them.

Image Credit: CREA

The post Lazada co-founders’ new e-commerce enabler CREA locks in US$25M from SuperOrdinary appeared first on e27.

Deskimo, a provider of on-demand workspaces in Singapore and Hong Kong, has completed a US$3-million seed financing round from Y Combinator and Global Founders Capital.

They were joined by Pioneer Fund, Seed X, Starling Ventures, TSVC, and other investors from Asia Pacific, the US, and Europe.

The company has deployed the money in its Jakarta expansion. It has partnered with over 30 workspace partners in Jakarta for the soft launch and expects to add 20 more before year-end.

The startup also expects demand in other emerging markets in the region due to traffic congestion and homes where wifi and electricity might not always be stable.

Deskimo was co-founded by Raphael Cohen, former head of Asia at Rocket Internet, and Christian Mischler, previously co-founder at GuestReady, HotelQuickly and Foodpanda.

Also Read: From co-working to co-living, these 8 brands in Southeast Asia have got you covered

It empowers companies to move to a hybrid, asset-light office setup or remote-first strategy, thus helping them reduce their fixed office leases and free up resources.

On the other hand, professionals can freely access any workspace listed on the app, stay for as long as they like, and pay by the minute.

The company provides on-demand access to over 100 professional workspaces in Singapore, Hong Kong, and now Jakarta.

Over the past few months, brands such as WeWork, The Hive, The Executive Centre, and Garage Society have joined Deskimo.

“The pandemic has fundamentally changed the corporate approach to work. Finally, employee effectiveness has moved into focus rather than employees’ time spent at the office. However, not everyone has a great home office setup that lets them stay focused on their work,” said Deskimo’s Singapore MD Jonathan Soh.

Adrian Ng, Deskimo’s MD in Hong Kong, added. “Company managers are reducing their fixed office leases and are moving to a flexible arrangement with their workforce. Both win: It unlocks significant cost savings for companies, and it adds flexibility and freedom to employees’ lives.”

—

Ready to meet new startups to invest in? We have more than hundreds of startups ready to connect with potential investors on our platform. Create or claim your Investor profile today and turn on e27 Connect to receive requests and fundraising information from them.

Image Credit: Deskimo

The post Ex-Rocket Internet Asia head secures US$3M seed capital for his on-demand workspace venture appeared first on e27.

Despite the pandemic, we see encouraging signs of a strong recovery in funding deals all across Southeast Asia. From just the first half of 2021 alone, a total of US$915 million was raised from 16 different funds, with a fair amount going to Seed and Series A stage companies. Though this was lower than the same period in 2020, we are hopeful that ample dry powder is still available to deploy.

 

As a startup founder, how can you ride the wave and best position yourself for series A funding? Having spent several years in the ASEAN startup ecosystem, I would like to share my observations and tips on raising funds.

In summary, having the right timing, positioning, capacity building plans, and market expansion plans help raise your chances of success.

Timing: When should I raise a Series A funding?

Raising Series A is a different ball game than raising the earlier rounds, and… the timing matters.

I have observed many founders jumping into this process prematurely, often way before their business is even set up to handle the complexity that comes along with external funds. Consequently, they fail to pitch successfully and secure the funds they need.

Think about this, how would you be able to land safely — if you are flying and building a plane simultaneously?

The right time to raise a fund is when:

• You have built out your skeletal team
• Your market has been validated to a certain extent
• You have a valid business model that is (somewhat) scalable and replicable

Positioning: How much do I raise and at what valuation?

It may sound cliche, but I suggest beginning with the end in mind. Since the funding raised will ultimately be channelled into helping you achieve your next business milestone, such as the expansion of your team or scaling into a new market, ask yourself:

What is the next business milestone that my startup is planning towards, and how much time would be needed to reach that point?

The quantum of raise varies depending on what you, as the founder, seek to achieve. For example, Grab raised their maiden round of US$2.15M with us to venture overseas, and Sunday Insurance raised US$10 million for scaling overseas at series A too.

How much time you would need to achieve the next milestone also varies from business to business. But typically, 18–24 months would likely be sufficient to focus on the 2–3 business milestones that you are aiming towards.

You should also be aware of your monthly burn rate, that is, your monthly spending, to attain the desired milestones. From there, work backwards, and you will be able to determine how much money you need!

[(Monthly Burn Rate) x Number of months needed to achieve business milestones] + additional costs = Funding Needed

Also read: How to win term sheets and influence investors: Notes from founders of NewCampus, Snapask and Flickstree

It is always tempting to raise more than needed. But I would caution against that, as raising too much capital early on can lead to over dilution.

Naturally, your investors often take the biggest risk to fund you early, so they would ask for a proportionally more significant stake for each dollar invested in return for the risks they would incur.

The other question would be, at what valuation should I be raising. In my experience, founders often tend to ask for a relatively high valuation though it is early in your startup journey. But instead of doing that, I would suggest aiming for a fair valuation and then seeking reasonable adjustments through the future fundraising rounds.

If your current valuation is too high, it may become a significant source of friction with your investors if you fail to deliver. We have witnessed some startups fixated on the high valuation— to which investors agreed to fund them, yet their companies were unable to execute the business plan.

That led to the aftermath of downsizing and losing talent, managing upset investors, and the stress of seeking a white knight or raising loans to bridge the performance. It is just not worth putting yourself through such a grind.

On the other hand, if you can consistently execute your business plan, your investors will be more inclined to follow on and give you more money to reach your next goal.

At Vertex Ventures, we believe that the most sustainable way to increase a startup’s valuation for the next round is to ask for a reasonable amount, execute well, and deliver on your milestones. I’ve seen this working time and time again for founders through the years.

Capacity building: My internal strategic partners?

This is where founders often overlook.

Invest in your Human Resource (HR)

An often overlooked function, founders tend to take on the HR role or delegate it to junior staffers. However, founders must recognise the need to develop a carefully thought-out approach to hiring, developing and retaining talents to fuel business growth as you expand.

You are your company’s best recruiter, and you will be speaking with candidates all the time — deliberately or otherwise. You will need to scale yourself by involving junior staff (who shows the potential to grasp and grow into the role) to join you as you interview and dialogue with candidates.

HR is essential to this, and you would want to build a dedicated HR ‘team’.

Bring onboard someone with the financial know-how

Having a high-performing finance person can go beyond merely balancing the books. This role is strategic, and the finance person’s role stretches across different functions and competencies that will help your startup thrive and grow, such as setting and scrutinising critical metrics like your CAC and CM, not to mention optimising cash flow which is the oxygen for your startup.

They may also aid you on your fundraising and exit processes, investor due diligence and construction of sensitivity and scenarios analysis etc.

Market expansion plans: Who should I send?

Though Singapore is a great place to trial, pilot, test and validate, it is typically too small a market to support 10X growth.

If you are growing your business, you should set your sights on expanding overseas. Vertex Ventures’ portfolio companies such as Grab, Nium, Patsnap, Speedoc and more have raised Series A and ventured beyond Singapore.

However, overseas expansion does not come without its challenges. Nuances in culture, language, ways of doing business and competition are among key considerations. So, how to expand successfully into new markets? Should it be at all cost? I don’t think it should be.

Founders need to be thoughtful and strategic about expansion plans— the reasons for the markets you choose to expand into first could be the availability of the right customers, infrastructure or size of the market.

Case in point

Elena, the co-founder of our portfolio company Turnkey Lender, had taken the initiative to relocate her family to Austin, Texas, just before Singapore shut her borders last year due to COVID-19.

It was unsettling for us as investors and board members. However, both Dmitry and Elena (as founders) felt this was the right thing to do as they have seen strong inbound interests for their digital lending platform.

Kudos to her, Elena was able to get the legal paperwork sorted out, hire the first team members (all within a micro-budget), and now, the US market accounts for more than 50 per cent of the company’s revenue.

While we see what is on the front end and celebrate it, we must acknowledge the hard work behind the scene where Dmitry and Elena were juggling zoom calls with teams spread across markets (US, Ukraine, Poland, Malaysia, and Singapore) and timezones. We had witnessed the superb teamwork between the founders and the senior team members.

When planning the expansion — check and see you have fighters and go-getters whom you can send to plant your flag abroad, all within a reasonable budget.

Parting words

Raising Series A is an exciting phase in your startup journey. It will be a different experience from raising your seed round, as investors at this stage tend to be more demanding.

As such, it is essential to make sure you are raising at the right time, for the right reasons and at the correct valuation.

There is no good in rushing things. Don’t put the cart before the horse — prepare your startup well, way before you even start asking for the cheque.

Do this so that when you do fundraise, you are coming in from a position of strength.

–

Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic.

Join our e27 Telegram group, FB community, or like the e27 Facebook page

The post How to fundraise for Series A from a position of strength appeared first on e27.

Resync Technologies, a Singapore-based energy cloud solutions provider for smart city and distributed energy assets, has secured a US$2 million Series A financing round from GGV Capital.

The startup plans to use the funds to innovate and build more advanced capabilities for its energy cloud platform while expanding its footprints across the Asia Pacific and the Middle East.

So far, Resync boasts of having deployed its solutions in more than 150 buildings and 300 MWp of solar assets with over 20 customers in seven markets in APAC.

Also read: Go smart or go waste? Smart construction in Asia is up for grabs

Founded in 2017 by CEO Emir Nurov and Dr Jayantika Soni, Resync provides an energy cloud platform for renewable energy assets, building energy management, and industrial energy management. 

“We started Resync with the vision to build a unique, intelligent energy cloud that will be at the forefront of the global energy transformation,” said CEO and co-founder Emir Nurov.

Its technology is built with a combination of artificial intelligence and technical knowledge of energy systems, offering advanced analytics, optimised performance and energy savings for smart buildings and distributed energy assets (DERs). DERs refer to assets such as rooftop solar PV units, natural gas turbines, microturbines, wind turbines, electric vehicles (EV) and EV chargers, and so on.

Besides, Resync enables automated building, renewables, and Internet of Things (IoT) devices.

According to the firm, its data science team has applied the non-intrusive load disaggregation (NILM) approach to present a full overview of energy consumption profiles separated by energy appliances in real-time without the need to install any extra hardware.

This approach assists households and businesses reduce carbon footprint and save up to 30 per cent of their monthly electricity bills. “Resync’s AI-driven approach shows tremendous potential in helping commercial properties optimise across energy sources and get the most value from their spending,” said Weihan Liew, venture partner at GGV Capital.

The startup has partnered with Thai Digital Energy Development (TDED), a joint venture between the Thai Government’s PEA ENCOM International, Prasetia Dwidharma, an ICT solution provider in Indonesia, and NTU Singapore’s EcoLabs, a national enabler for cleantech. 

Globally, governments and enterprises are doubling down on adopting cleaner and more efficient energy use to reduce carbon emissions and mitigate the effects of climate change. Singapore also realises the Green Plan 2030’s energy reset target by greening 80 per cent of buildings, embracing electric vehicles (EVs), and quadrupling solar energy deployment. The country has also shifted to the cleanest fossil fuel available — natural gas. 

—

Ready to meet new startups to invest in? We have more than hundreds of startups ready to connect with potential investors on our platform. Create or claim your Investor profile today and turn on e27 Connect to receive requests and fundraising information from them.

Image Credit: Resync

The post Resync scores US$2M to expand energy management solutions to Asia, Middle East appeared first on e27.

Tech giant Gojek has formed a joint venture with Indonesian energy company TBS Energi Utama to develop the country’s infrastructure for two-wheel electronic vehicles (EV).

The partnership, known as Electrum, is in line with Gojek’s and TBS’s commitments to achieving zero emissions by 2030 and the Indonesian government’s plans to prioritise the development of the EV industry.

Under the shared vision, Gojek pledges to transform its fleet to 100 per cent EVs, while TBS will double down on investing in clean and renewable energy.

Leveraging Gojek’s deep presence in Indonesia and TBS’s capabilities in the energy sector, the two will team up to build a comprehensive and scalable EV ecosystem, including two-wheel EV manufacturing, battery packaging, battery swap infrastructure and EV financing.

“We will be able to support Indonesia’s transition to building a cleaner, more accessible and sustainable mobility system. It will ultimately make EVs the norm, contributing to the country’s emissions reduction targets and improving air quality in our cities,” said Gojek CEO and co-founder Kevin Aluwi.

Also read: The growth of electric vehicles is saving the planet, one trip at a time

Launched in 2010, Gojek is a Southeast Asian super app for ordering food, commuting, digital payments, shopping, hyper-local delivery, and two dozen services. In May this year, Gojek and Tokopedia announced a merger to form GoTo Group. The internet giant seeks a valuation of between US$25 billion and US$30 billion in the next funding round.

Gojek’s Group CTO Severan Rault told e27 in an August interview that Gojek wanted to move from the idea of a super app to an on-demand company, meaning it wants to become a platform that gives its users everything they need very quickly. This includes the firm’s foray into areas such as sustainability and transportation.

Apart from the joint venture with TBS, the decacorn also recently announced an EV and battery swapping pilot scheme in Jakarta in collaboration with Taiwanese electric scooter maker Gogoro, electric vehicle producer Gesit, and state-owned company Pertamina.

Gojek’s parent company GoTo Group will invest in Gogoro through a Private Investment in Public Equity (PIPE) scheme, which is expected to complete the transaction in early 2022.

Initially, the firm will deploy 500 electric motorcycles, with plans to scale to 5,000 EVs travelling a total of one million kilometres in the future.

At this stage, Gojek customers will be able to select EVs when using the GoRide service in Jakarta. Driver-partners using EVs can also go about their daily routines more efficiently, serving customers across GoRide, GoFood, GoSend Instant, GoShop and GoMart.

Also read: Gojek wants to move from the idea of a super app to an on-demand company for everything: Group CTO

The data from this pilot project will also be utilised to bolster the technology and infrastructure for EVs to meet the burgeoning demand in the Indonesian market.

“It is crucial to develop a strong and comprehensive EV ecosystem to enable large-scale adoption of EVs in Indonesia,” said TBS Vice President Director Pandu Sjahrir.

In addition, Gojek created a carbon emission calculation feature, namely GoGreener Carbon Offset, by partnering with the startup Jejak.in. Through this feature, users can calculate the amount of daily carbon emission and convert it to planting trees for carbon absorption.

—

Ready to meet new startups to invest in? We have more than hundreds of startups ready to connect with potential investors on our platform. Create or claim your Investor profile today and turn on e27 Connect to receive requests and fundraising information from them.

Image Credit: Gojek

The post Gojek forms JV with energy company to develop two-wheel EV infrastructure in Indonesia appeared first on e27.