Singapore-headquartered crypto mining company Bitdeer Technologies has announced a merger with the blank-cheque company Blue Safari Group Acquisition Corp. to go public in the US.

The deal values Bitdeer at approximately US$4 billion.

The combined entity is expected to be renamed Bitdeer Technologies Group and remain a publicly listed company on the NASDAQ.

The transaction is expected to be completed in Q1 2022, subject to, among other things, regulatory approvals.

“As a leader in crypto mining, we will continue to solidify our leading position in the crypto mining space. Today marks a significant milestone for Bitdeer, and we strive to create value for our broader group of stakeholders in the future, including our clients, employees and shareholders,” founder and chairman Jihan Wu said.

Bitdeer provides comprehensive digital asset mining solutions to its customers. It handles complex processes involved in mining such as miner procurement, transport logistics, mining data centre design and construction, mining machine management and daily operations.

Also Read: How Binance acquired 35 per cent market share in a year with its new crypto derivatives line

The firm currently operates five proprietary mining datacenters in the US and Norway.

Blue Safari believes the partnership presents an opportunity to invest in its target sectors, such as fintech, IT, and business services. Following the close of the transaction, the combined company will continue to be led by Wu.

Naphat Sirimongkolkasem, CFO and director of Blue Safari, stated, “The crypto mining space has attracted tremendous attention in recent years, and Bitdeer’s innovative platform has propelled it into the limelight among the most illustrious players in the sector.”

Blue Safari Group Acquisition Corp. is a special purpose acquisition company sponsored by BSG First Euro Investment Corp., a British Virgin Islands company. It was formed to effect a merger, share exchange, asset acquisition, share purchase, reorganisation or similar business combination with one or more businesses or entities.

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Innovation in the built environment sector cannot be realised based on a thrust from a single party alone. The built environment sector has traditionally been thought to be large, slow-moving and conservative, and has lagged other sectors in innovation and digitalisation.

This push towards digitalisation must occur at a whole-of-sector level, with cooperation within and across different parties at the corporate, emerging company, and governmental levels.

Awareness of the lack of digitalisation

Countless studies by organisations such as the OECDand management consulting firm McKinsey & Co have rated the real estate and construction sectors as amongst the least digitised. 

A 2020 Statista survey of global real estate C-suite executives found that approximately 33 per cent of respondents shared that their companies did not have the resources and skills required to operate a digitally transformed business.

Thus, these executives realised the ability to generate huge benefits through embracing the technologies which have disrupted the siloed industry.

Also Read: How did Ninja Van build a culture of creativity and innovation

The importance of integrating technology into the real estate sector

Innovations can deliver strong returns on investment and capital expenditure costs can be spread across asset life cycles.

Smart technologies can also help boost top lines– the European Commission found that a smart, higher-performing building can add up to 11.8 per cent in lease value and fetch increased valuations of up to 35 per cent.

However, sector-wide digitalisation cannot be achieved by corporates alone and must be undertaken at an ecosystem level.

Real estate sector in Singapore

In Singapore, the government has been leading the digitisation charter for the real estate sector, but there is a gap in the model for ecosystem-wide collaboration due to legacy mindset issues in the private sector.

In a recent survey on technology and innovation conducted by the Urban Land Institute and Taronga Ventures, it was found that internal challenges were the largest barriers to the adoption of innovative technologies.

Specifically, resistance to change, business-as-usual conflicts and lack of budgets were listed as amongst the largest challenges facing real estate corporations as they undertook their innovation journeys.

To overcome the former two issues, corporates should work closely with emerging technology companies to design optimal change management strategies to seek buy-in from executives.

Collaborating closely with governments by leveraging digitalisation programs, knowledge sharing, and grants can help alleviate some of the budgetary issues faced by corporations.

Hence, adopting a collaborative tripartite can help drive innovation across the sector.

Also read: Why Singapore becoming a tech hub is a great boost for the proptech sector

Introduction to RealTechX Singapore

An example of a model is RealTechX Singapore, an innovation program that promotes shared support for real estate technologies and knowledge sharing between corporates, emerging technology companies, and government agencies.

Corporate partners in the program include PGIM Real Estate, Mitsubishi Corporation, Nomura Real Estate, CapitaLand, Verizon, and Lendlease’s International Towers.

Together with government partner Enterprise Singapore, the innovation program seeks to support emerging real estate and real asset (RealTech) companies in the sector by accelerating commercial opportunities with corporate partners.

The revolutionary innovations offered by program participants are at the forefront of the RealTech space and span the real estate life cycle, from digital construction management to smart building and smart city solutions.

Other innovations launched digitally

In the digital construction management space, Singaporean companies like Hubble, VRcollab and Voox are leveraging cutting edge technologies to improve collaboration, governance, and safety in construction sites, delivering better quality outcomes with higher productivity.

Further down the life cycle, intelligent solutions such as SmartClean provide IoT sensor-based and data-backed facilities management, while TransferFi is revolutionising the sensor space with its wireless power network technology that abolishes the need for cabling or batteries.

Finally, solutions are also providing corporates with key ESG outcomes– Hydroleap has significantly shifted the water treatment space using its electrochemical technology that is not only cheaper but also greener.

Its technology can be applied to multiple use-cases, including wastewater treatment from construction worksites, or in the treatment of water used in data centre cooling towers.

Corporates have the opportunity to readily test and scale these solutions as they drive innovation in their portfolios and assets.

Along with the strong support RealTech companies and corporates receive from Enterprise Singapore (ESG), this new tripartite model has proven an efficient and successful method of driving innovation in the sector.

Also Read: Tech scouting and innovation partnerships: How co-creation can foster growth post-COVID-19

Establishing and building a network

The agency has been at the forefront of supporting the industry since its inception – in addition to providing support for emerging companies through financial and non-financial assistance, it looks to create network-building opportunities through events like the Singapore Week of Innovation and Technology (SWITCH) which was held from 8-12 November 2021.

SWITCH brought together thought leaders, entrepreneurs, and investors to catalyse collaboration that will bring a meaningful exchange across different fields and markets.

Partnerships with investors, strategic partners, public sector agencies, and emerging technology companies must be formed to drive this change.

The traditionally competitive and uncollaborative built environment sector must work together to overcome a lack of innovation capability and knowledge gaps.

It is extremely encouraging to see that these groups are recognising the benefits of partnerships and are embracing this new model of collaboration.

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Kopi Kenangan may hit unicorn status with Falcon Edge-led round
As per a report, the coffee chain is in advanced talks to raise US$100M in Series C; Its existing investors, including Sequoia, GIC, and B Capital are also participating; In 2020, the online beverage retailer raised US$109M Series B led by Sequoia.

Crypto miner Bitdeer to go public through US$4B SPAC merger
The Singapore company was spun off from Chinese bitcoin mining giant Bitmain in January and has been doubling down in its adoption of renewable tech in digital asset mining; The SPAC Blue Safari Group went public in June, raising US$57.5M from IPO.

Vietnam’s NextTech sets up US$50M fund to invest in blockchain startups in SEA
Next100 Blockchain will also serve as a venture builder to incubate entrepreneurs and qualified technical experts in the blockchain domain to start businesses under NextTech; AntLaunch, a decentralised platform that allows crypto-based projects to fundraise, will conduct due diligence of the projects.

Lazada co-founders’ new e-commerce enabler CREA locks in US$25M from SuperOrdinary
The collaboration will help CREA attract new brands to SEA’s e-commerce ecosystem by offering a one-stop solution covering the US, China and SEA; CREA’s core services include store and channel management, fulfilment, digital marketing, data insights, creative and omnichannel solutions.

Kejora Capital, Sunway Group launch new US$25M fund for Malaysian startups
It will also introduce an initiative called “Jakarta Express” to help Malaysian startups and investors explore opportunities in the Indonesian market; Alongside Orbit Malaysia’s current active investments, Kejora Capital has previously invested in regional startups in various industries.

Gojek forms JV with energy company to develop two-wheel EV infrastructure in Indonesia
Gojek and TBS Energi Utama will team up to build a comprehensive and scalable EV ecosystem, including two-wheel EV manufacturing, battery packaging, battery swap infrastructure and EV financing.

Jeff Bezos-backed Indonesian startup Ula rakes in US$23.1M from Tiger Global, Flipkart co-founder
Ula is a horizontal multi-category wholesale e-commerce marketplace that combines modern retail’s technology, tools and skills with the lean cost structure of traditional micro-retail; It claims to have grown 230x since its launch and offers over 6K products and serves 70K+ traditional retail stores in Indonesia.

Sleek lands US$14M Series A to offer back-office services to SMEs worldwide
Investors include Jungle Ventures and White Star Capital; Sleek automates and integrates company setup, financial and regulatory reporting, bookkeeping, and banking services; Sleek manages a portfolio of over 5K businesses that produce US$700M in sales and complete over 1.4M accounting transactions in 2020.

Thai Wah Group launches VC arm to back food, agtech startups in SEA
The VC firm will invest in eight to 10 early-stage startups over the next two to three years in its first phase; It will look at startups that are revenue-generating and on the brink of scaling their business.

Thai e-logistics startup GIZTIX nets US$10M in Series B, eyeing IPO in 2025
Investors include WHA Group, AddVentures, KK Fund, and CAC Capital; GIZTIX help business customers to outsource delivery services and manage their own trucks simultaneously.

SG-, UK-based payments firm Pomelo Pay banks US$10M Series A led by Inference Partners
Pomelo Pay provides integration with over 30 payment networks globally. It’s used by both banks and NBFIs; It plans to enter new markets in Europe and Asia; The startup said it has processed over US$500M in payments for the year, projecting a 5x increase by 2022.

InLife leads investment round of Filipino D2C insurtech platform Maria Health
Co-investors are Wavemaker Partners, tryb Group, and Celo Foundation; Maria Health aims to simplify comparing, choosing and purchasing health insurance through its D2C marketplace; About 10% of its first-time coverage buyers are families of Overseas Filipino Workers, and 75% are women.

Golden Gate Ventures co-leads US$4M round of Indonesian healthtech firm Klinik Pintar
Co-investors are PT Bundamedik, Skystar Ventures, and Sequis Life; Klinik Pintar helps its users book teleconsultations, virtual health services, as well as in-clinic sessions; It currently has over 120 clinics from 60 Indonesian cities on its platform.

Ex-Rocket Internet Asia head secures US$3M seed capital for his on-demand workspace venture
Investors include YC, GFC, Pioneer Fund, Seed X, Starling Ventures, and TSVC; Deskimo provides on-demand access to over 100 professional workspaces in Singapore, Hong Kong, and now Jakarta.

Resync scores US$2M from GGV Capital to expand energy management solutions to Asia, Middle East
Resync provides an energy cloud platform for renewable energy assets, building energy management, and industrial energy management; 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.

Malaysia’s ReSkills, ‘Netflix model in e-learning’, bags US$1.5M to expand across SEA
Investors include JSF Platinum and unnamed angels; ReSkills allows coaches to build online courses on their preferred topics and applies a subscription model for learners; It focuses on education-based services, with a target age ranging from 15 to 35 years.

AgFunder-backed agritech accelerator Grow opens applications for 3rd cohort
Grow will invest up to US$200K for each startup accepted to its third Impact Accelerator cohort; Applicants should at least have a minimum viable product, operate in at least one market, and be “well on the way to establishing product-market fit.”

Gojek officially launches GoCar service in Vietnam
Gojek had wanted to roll out car-hailing services in the country much earlier but faced difficulties in getting permission from regulators; It also had to reshuffle its leadership team in Vietnam, losing two CEOs within 18 months.

Indonesian influencer platform KaryaKarsa bags US$500K from Accelerating Asia, others
KaryaKarsa can help content creators distribute and monetise their works, such as books, comics, and videos; Currently, there are 40K creators and 300K users on its platform; The company will use the fresh funds to provide more offerings and onboard more content creators.

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It is no secret that a loyal customer is the most valuable type of customer. They are likely to bring repeat business, spend more and try new products.

Tough business conditions have put pressure on businesses to cultivate loyalty, which is not surprising given an increase in customer retention by 5 per cent can increase profits by 25 per cent to 95 per cent, according to an earlier study by Bain and Co.

This begs the question: how can small and medium-sized businesses (SMBs) in Hong Kong with limited resources cultivate customer loyalty with their newfound overseas customers from thousands of miles away?

How can they capture growth opportunities brought on by the pandemic, not least with time zone differences, differing consumer preferences and more?

Businesses often believe that the panacea to loyalty is a loyalty scheme; however, this should not be the only consideration. The starting point should be an overall strategy to loyalty that incorporates hygiene factors and elements that build trust with the customer.

Brand loyalty starts with a smooth customer experience

One major hygiene factor is to ensure that there is a smooth customer experience. Not only does this create a reason for customers to return, but it also prevents the consequent negative effects associated with poor experiences.

This is particularly important for PayPal as we look to design products that help our business clients across the world ensure a seamless and simplified payment experience for their customers: a key aspect to building and retaining loyalty.

This is even more important when engaging with customers in different time zones since the lengthened service and query response times create friction in the overall experience which add to the chance of a “moment of truth” being missed.

Also read: 3 ways to get more customers and increase loyalty

Investing in the right e-commerce and payment infrastructure to ensure a smooth customer journey can go a long way. For instance, allowing guest checkout for first-time customers or a quick click to complete checkout for repeat customers will reduce cart abandonment and maximise the chance of securing purchases.

Consumers trust brands that resonate with them

Many businesses are familiar with drivers of customer loyalty here in Hong Kong, but these can be very different from the corresponding factors in international markets. A 2019 study conducted by KPMG found that the biggest drivers of brand loyalty for Hong Kong consumers were personalisation and meeting expectations.

Although these are to be expected, a 14-market study by Edelman reveals a more complex picture as it found that 43 per cent of consumers will stay loyal if they trust a brand, even when something goes wrong.

Nowadays, especially since the pandemic, consumers trust brands with cultural, purpose, and societal aspects that resonate with them.

Communicating what your brand stands for can be a powerful tool in acquiring customers who share your beliefs and are more likely to remain loyal. This will create resonance in existing loyal customers and galvanise them to action, no matter where they are in the world.

Many examples of successful global brands have started small but gained a loyal following because of their purpose. This could be a commitment to organic products, charity donations, or simply bringing your personality into your products.

Rewards mechanisms incentivise customer purchases and drive loyalty

When it comes to loyalty schemes, an area worthy of discussion and a popular marketing tactic in Hong Kong is customer rewards, yet it is often misapplied.

Many businesses treat rewards as a short-term promotional giveaway; however, this mechanism only incentivises new or existing customers to buy a particular product.

Instead, businesses should design reward mechanisms to encourage new customers to behave like their most profitable fifth-year customers.

Also read: Building up customer loyalty with emotional branding

Potential examples include rewarding customers that participate in early-bird events or regularly make purchases from new lines.

Some might think that being successful in building loyalty with overseas customers is expensive and complicated. However, in recent years, there has been an explosion of eCommerce platforms that sellers can use to reach new customers.

Many even offer localised marketing to help businesses attract and engage customers without learning a new language.

Technology is lowering the barriers to building a great customer experience and cultivating customer loyalty. Together with the right fundamentals, small businesses selling cross-border can punch above their weight and capture new growth no matter where their customers are.

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As China continues to make advances in developing its own central bank digital currency (CBDC), it’s worth asking how the arrival of currencies like the eYuan will impact the world of cryptocurrencies. Could CBDCs pose a threat to bitcoin’s dominance? 

China’s state-sponsored digital currency, the digital renminbi, commonly referred to as the eYuan, is already being developed to solve fiat currency’s inefficiencies in cross-border transactions. 

The country’s central bank, the People’s Bank of China, claimed in a recent white paper that the digital renminbi is “ready for cross-border use,” however, for China’s new digital currency to be operational, it will need other international CBDCs to be functional to trade with.

With this in mind, the People’s Bank of China supports the development of global central bank digital currency standards and works alongside other monetary authorities to launch multi-CBDC arrangements. 

As the data shows, global efforts towards the development of CBDCs has grown significantly over the past three years, with more than 84 institutions actively engaged in CBDC work, while experimentation towards the development of digital currencies has also grown globally in the same time frame. 

So what will central bank digital currencies look like? And will they have the potential to muscle in on a cryptocurrency market dominated by the likes of bitcoin? Let’s take a deeper look at a growing movement that has the potential to overhaul finance as we know it: 

What is a CBDC?

As an emerging technology, there are no templates for what a CBDC should look like as a currency.

Typically, these digital currencies are formed by government priorities, constitutional limits and individual policy and design decisions, meaning that each national CBDC is likely to look different depending on where you are. 

But what is a central bank digital currency? The term refers to the virtual form of a fiat currency. CBDCs act as a form of an electronic record or digital token of a country’s official currency.

This means that it can be issued and regulated by a nation’s central bank. The currencies’ digital nature can help simplify the implementation of monetary and fiscal policy whilst promoting better financial inclusion in developing economies through fintech solutions.

Also read: What does the future of CBDCs actually look like and why does it matter?

Unlike cryptocurrencies, which run on decentralised blockchains– meaning that no single entity holds the assets or retains the information about individuals using them– the centralised nature of CBDCs has some privacy concerns depending on how respective governments use the digital currency. 

China’s system isn’t even the most advanced form of CBDC globally, with both Cambodia’s Bakong and the Bahamas’ ‘Sand Dollar’ being rolled out on a larger scale, according to PwC data.

However, it’s worth noting that China is the world’s first major advanced economy to start implementing a digital currency at any scale. Its lofty ambitions make the country a significant innovator in the field. 

Could CBDCs Replace Cryptocurrencies?

As news of international projects to develop central bank digital currencies spread around the world, In 2018, Nouriel Roubini, a professor of economics at New York University’s Stern School of Business, wrote in The Guardian that “if a CBDC were to be issued, it would immediately displace cryptocurrencies, which are not scalable, cheap, secure, or decentralised.

Enthusiasts will argue that cryptocurrencies would remain attractive to those who wish to remain anonymous. But, like private bank deposits today, CBDC transactions could also be made anonymous, with access to account-holder information available, when necessary, only to law-enforcement authorities or regulators, as already happens with private banks.

Besides, cryptocurrencies such as bitcoin are not anonymous, given that individuals and organisations using crypto-wallets still leave a digital footprint,” Roubini added.

However, in a recent CoinShares article, James Butterfill rebukes the notion that CBDCs can replace bitcoin and other cryptocurrencies, noting that crypto’s purpose is far too different to that of digital currencies. 

“Bitcoin and CBDCs are very different, with the former being of fixed supply while the latter is backed by fiat currencies,” Butterfill explains.

With this in mind, CBDCs take on a far more similar role to stablecoins, where users are far more inclined to spend their money.

Whilst Roubini is correct in claiming that CBDCs can outperform many cryptocurrencies practically, fixed supply means that crypto will always be seen as a far more effective investment opportunity. 

Maxim Manturov, head of investment research at Freedom Finance Europe, points to the mainstream emergence of cryptocurrency as a critical reason behind its coexistence alongside CBDCs, highlighting the emergence of major fintechs like Revolut and their efforts to accommodate cryptocurrency trading: 

“Revolut has grown into one of Europe’s dominant consumer financial technology companies, constantly adding new features. The app started as a way to avoid currency conversion fees when travelling but quickly added banking, trading and crypto features among dozens of products,” Manturov explained.

Also read: How interoperability between private and public players will accelerate the CBDC Race

Today, bitcoin is a globally recognised store of wealth, which has been adopted by significant finance players like PayPal and is accepted worldwide. The cryptocurrency’s fixed supply makes the asset closer to assets like gold rather than CBDCs, which behave more like stablecoins. 

As CBDCs make their emergence, it’s clear that digital currencies will play a key role in shaping the future of finance.

Though, it’s far more likely that they will emerge alongside the likes of bitcoin rather than replace the world’s most popular cryptocurrency.

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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

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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.

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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.

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Photo by Kampus Production from Pexels

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

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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.

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Image Credit: Thai Wah Group

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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.

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