Vietnamese internet giant VNG Corporation is considering going public in the US via a merger with a special purpose acquisition company (SPAC) at a US$2 to US$3 billion valuation, Bloomberg has reported, quoting unnamed sources.

The technology giant is working with financial advisers and is holding talks with several SPACs for a potential merger.

VNG is Vietnam’s first tech unicorn with a valuation of about US$2.2 billion. Singapore’s sovereign wealth fund GIC, Temasek and Goldman Sachs are some of its high-profile investors.

Also Read: VNG invests US$6M in Got It, to launch premium instant P2P gifting solution in Vietnam

The firm has been considering a potential listing for several years. Back in 2017, Bloomberg reported that VNG had signed an MoU to list its shares on the Nasdaq, the second-largest stock exchange in the world.

Started out as a gaming business in 2004, the company has since expanded into digital content, e-commerce, digital payments and recently cloud services. It offers a wide range of products and services across four business groups: online games, payments, Zalo, and cloud.

In March this year, VNG invested US$6 million into B2B gifting services company Got It in exchange for a 25 per cent stake.

Back in 2016, it acquired a 38 per cent share in e-commerce platform Tiki for US$17 million.

In August 2020, VNG filed a lawsuit against TikTok for alleged copyright infringement in Vietnam, according to a Reuters report. VNG, which has business interests in online gaming, music streaming and messaging apps, accused the Chinese app of using audio tracks owned by its subsidiary Zing without adequate licences.

Of late, listing via a blank-cheque company or SPAC has caught the imagination of Southeast Asia’s startup industry. In the recent past, many companies have disclosed plans to list via SPAC merger. The list includes Grab and PropertyGuru (Singapore); Carsome (Malaysia); and Tiket.com and Kredivo (Indonesia).

—

Image Credit: VNG

The post VNG mulling public listing via SPAC merger at US$3B valuation: report appeared first on e27.

In our increasingly cashless world of neo banks and e-wallets, Malaysia has become a hotspot for both regional and global fintechs. Fintech companies are setting up bases in Malaysia not just to access the substantial domestic market, which boasts a population of more than 32 million, but also to establish their presence in Southeast Asia. This year, the capital of Kuala Lumpur shot up by 11 places in the Global Fintech Rankings, which is a testament to the country’s conducive environment for fintechs looking for a gateway to the region.

Leading platforms like GrabPay and Touch ‘n Go have a cumulative active user base of 21 million. Part of why fintechs have been so successful in the country is because they have managed to capture the e-commerce market, with many users choosing digital alternatives over cash for convenience, safety, and ease of use. Malaysia’s digital wallet usage rate of 40% sits at the top of ASEAN, above neighbours like the Philippines (36%), Thailand (27%), and Singapore (26%).

Malaysia is also well-known for being a multicultural and multilingual country. The country is home to speakers of 137 languages, including major lingua francas like English, Mandarin, Malay, and Tamil. This diversity lends itself to a wide pool of talent with different backgrounds and experiences, making Malaysia a microcosm of the larger Southeast Asian market.

Over the past years, the country’s digital adoption rate has been growing steadily, in part thanks to the support from government institutions like the Malaysia Digital Economy Corporation (MDEC). Regional tech giant Grab, for example, got its headstart in Malaysia as a ride-hailing platform known as ‘MyTeksi’. Since then, the super app has grown exponentially and recently announced plans to go public, with an expected valuation of US$39.6 billion.

Also read: Going Global: Malaysia’s homegrown fintechs take on the world

Unsurprisingly, the recent pandemic has only accelerated this growth. Mobile banking transactions, for instance, hit a record high of US$109.7 million last year, up by 125% from the year before, according to the Fintech Malaysia 2021 report. With people working from home and more concerned about safety and hygiene, the Malaysian market is adopting digital solutions at a faster rate than ever before.

The growth of Malaysia’s fintech ecosystem is also partly thanks to regulatory support from Bank Negara Malaysia (Central Bank of Malaysia) & Securities Commission.

To support regulator’s efforts, the Malaysia Digital Economy Corporation (MDEC) has launched the Fintech Booster, a capacity building program by MDEC, in collaboration with Bank Negara Malaysia (BNM) to assist fintech companies, both local and foreign in developing their products and services via three strategically crafted modules: Legal and Compliance, Business Model, and Technology.

Among the initiatives spearheaded by the government is the Malaysia Tech Month Fintech Showcase, led by MDEC. Malaysia Tech Month 2021 (MTM 2021) is a virtual, month-long curation of electrifying digital and technology keynotes, workshops, discussion panels and business-matching sessions. It will feature a distinguished group of local and international industry speakers and investors to share their expert thoughts and experiences in 4IR-driven digital economy. This showcase provides both domestic and global fintechs with a platform to network, demonstrate, and learn about best practices, which will ultimately fuel the country’s thriving tech ecosystem.

Wahed, a game-changer for Islamic Finance

New York-based fintech Wahed is one of the startups that will be featured at this upcoming showcase.

Established in 2015, Wahed is an Islamic digital investment manager that allows users to build ethical, shariah-compliant investment portfolios. The company does the legwork for users by screening investments for issues like excess debt, tobacco, alcohol, firearms, and gambling, among other things that might violate Islamic principles. Users’ investments are then diversified into different asset classes, such as US Equities, Malaysian Equities, Gold, and Islamic Bonds, also known as Sukuk.

Wahed entered the Malaysian market in 2019 as the first company to receive an Islamic Digital Investment Management License from Malaysia’s Securities Commission. To date, the company has more than 200,000 clients across the world.

Part of the reason Wahed has managed to achieve these milestones is because of Malaysia’s rich tech ecosystem.

“Malaysia is definitely home to one of the leading Islamic Finance ecosystems in the world,” said Syakir Hashim, senior vice president of business operations at Wahed.

Furthermore, the conducive regulatory environment also helped them expand in Malaysia. By consulting with MDEC, Wahed was able to understand the local ecosystem, stakeholders, and other government agencies. This support allowed them to tailor their offerings to Malaysian users.

“By truly delving into the market to understand the lifestyle, language, culture, and pain points of the local market, we were able to grow Wahed Malaysia to what it is today,” added Hashim. “We are en route to being the household name for Islamic Investing in Malaysia.”

Malaysia ranks 1^st in the Global Islamic Fintech (GIFT) Index and had an estimated Islamic Fintech Market Size in 2020 of $3.0 billion expected to grow by 23% annually to reach 8.5 billion by 2025.

Harnessing Malaysia’s tech talent pool with MoneyLion

Another global fintech company that proves the preparedness of the Malaysian market is MoneyLion. The company develops financial products with low barriers to entry, providing a digital all-in-one finance platform for the everyday user. Some services MoneyLion provides include mobile banking, lending, automated investing, Buy Now Pay Later solutions, crypto, and more.

Co-founded by a Malaysian but based in New York, MoneyLion has raised US$227.5 million to date and is dubbed an emerging unicorn. In fact, it is in the final stages of its NYSE IPO, with an estimated US$2.9 billion in equity value.

Although MoneyLion does not yet have a local presence for Malaysian consumers, most of their technology and AI teams are based in the Malaysian capital of Kuala Lumpur.

Also read: Fintechs ushering in a new era for a more digital India

“One of the proudest achievements I have is that, out of a handful of successful neo banks in the world, we built MoneyLion’s technology entirely in Malaysia,” said co-founder and chief technology officer Foong Chee Mun.

Foong had been living in the United States during the founding of MoneyLion, but returned home to Malaysia for some time as his wife became pregnant. At the time, he hired three engineers to work with. Now, the Kuala Lumpur team has grown to 180 people and continues to attract tech talent from both local and international universities.

“The MoneyLion KL office is not just a backend office, we are responsible from end to end, from product ideation to management to engineering to optimization and growth,” added Foong. “I strongly believe that we have the right talent and environment to build a regional fintech hub right here in our very own backyard.”

How Ablr leverages Malaysia’s market-readiness and digital infrastructure

Another fintech that has successfully expanded in the Malaysian market is Ablr.

In line with its mission of humanizing financial services that improve people’s lives, Ablr leverages data to provide a better credit system for consumers.

Their first product, for example, enables businesses to allow customers to pay for goods and services over time via a series of flexible monthly instalments with no hidden or late fees. This means that businesses have a solution for accelerating revenue, while consumers can pay in a fair, convenient, and transparent way.

Founded in 2017, the startup now has offices in both Singapore and Malaysia.

There were multiple reasons for entering the Malaysian market. Ablr found that there was a real need within the Malaysian market for consumers to get access to fairer and more transparent financial solutions. Malaysia’s infrastructure, mobile phone penetration rate, and rapidly growing middle class were also factors that pushed for Ablr’s expansion into the country.

Market readiness was another key reason, said founder and chief executive officer Ian Ow.

“We believe Malaysia is about to experience a revolution through fintech innovation and digital enablement that would create many possibilities and opportunities for social and economic advancement,” he added. “The government has heavily supported the adoption of new ways to pay and access financial services, while Malaysians have displayed an open-mindedness in embracing new technologies.

Ablr was able to ride this wave of growth because of the fintech-friendly environment which promotes innovation and financial inclusion. For example, the Financial Technology Enabler Group (FTEG) set up by Bank Negara Malaysia pushes policies that increase the adoption of technological innovations in the financial services industry.

“Our initial rollout with businesses and consumers in Malaysia has been encouraging so far,” said Ow. “We are currently preparing for a soft launch with our key partners and are in the process of developing a focal vertical on Islamic Finance with that work anchored in Malaysia.”

Backing Malaysia’s fintech founders with 1982 Ventures

For Singapore-based venture capital firm 1982 Ventures, the decision to set up operations in Malaysia was an easy one.

The fund focuses on investing in early-stage fintech startups across Southeast Asia and found that Malaysia has a supportive ecosystem, despite being often overlooked by regional and global venture capital firms. When the Malaysian government put out an open call for overseas venture capital firms to work with the government, 1982 Ventures took the chance.

Since then, 1982 Ventures has found plenty of opportunities to work with different stakeholders in the local market.

“We have been engaged by Malaysian family offices, corporates, and investors that are looking for a fintech VC partner with a proven track record,” said co-founder and managing partner Herston Powers.

Also read: From the experts: How to hire the right members for your startup

1982 Ventures’ Southeast Asia portfolio includes fintech leaders such as Brick, Fundiin, Homebase, Infina and Wagely.  1982 Ventures will be announcing more investments and strategic LPs as they approach the first close of their fund.

While venture capital investment into fintech startups has been growing more than 50% annually for the past five years, the share of investment into fintech in Southeast Asia is much lower than the global rate. 1982 Ventures thus aims to fill this gap in the region, including in Malaysia.

“Fintech in Southeast Asia is a once-in-a-generation opportunity,” said Powers. “In nearly all major markets, the most valuable venture capital-backed companies are from the fintech sector and this will be the case in Southeast Asia and Malaysia.”

Wahed, MoneyLion, Ablr and 1982 Ventures will all feature at the upcoming Malaysia Tech Month Fintech Showcase. To learn more about the programme and the fintech showcase, please head to their official page.

– –

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

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 Building Malaysia’s fintech ecosystem appeared first on e27.

BRI Ventures, an investment arm of Indonesia’s state-owned BRI Group, today announced a collaboration with ITB School of Business and Management (SBM ITB) to launch the country’s first venture capital university courses in 2021.

SBM ITB will open the venture capital courses under both undergraduate and graduate programmes at its Jakarta and Bandung campuses. It aims to nurture the archipelago’s fresh job market of professional venture capitalists for emerging startup sectors.

The curriculum is designed to help students learn about basic venture investment principles, gain exposure to various startup ecosystems, as well as understand financial building blocks related to the startup life cycle.

“Ten years ago, venture capital wasn’t considered a career and now has become one of the ideal accomplishments among local business students,” said BRI Ventures’s CEO and veteran venture capitalist Nicko Widjaja.

Also read: Ecosystem Roundup: GIC invested US$94M into Bukalapak before its IPO; All about the cloud kitchen industry in Indonesia

Capitalising on the university-industry collaboration, the venture capital investment courses will give students access to extensive industry insights and subject matter expertise from business leaders.

“The programme is strongly aligned with the mission of SBM ITB, which aims to nurture leaders with an entrepreneurial mindset that creates impact,” added Dean of Economics and Business Prof. Utomo Sarjono Putro.

The Southeast Asian startup funding landscape has witnessed an influx of global and regional venture capital firms rushing to grab a share of the Indonesian market. The total funding of local startups has surpassed US$1.9 billion across 52 rounds in the third quarter of 2020, according to the Indonesian Venture and Startup Association.

In recent years, Indonesia has witnessed a rapid growth of tech ventures, especially with the growth of the country’s four original unicorns Gojek, Tokopedia, Traveloka, and Bukalapak.

—

Image Credit: BRI Ventures

The post BRI Ventures, SBM ITB team up to launch Indonesia’s first venture capital courses appeared first on e27.

SubPlace, a subscription online shopping startup, said today it has raised US$2.36 million in just four days of launching its equity crowdfunding (ECF) campaign on MyStartr.

The startup raised the money for its smart lock product LockIn, and it came from 275 investors.

As per a press statement, SubPlace plans to set up 250 brand stores across Malaysia within the next five years, with an expected uptake of over 100,000 new users.

Launched in November 2020, SubPlace is an online platform where consumers can subscribe to a range of products and services such as fast-moving consumer goods, personal care products, furniture, home appliances, and electronics.

Also Read: Luxury lifestyle brand Oxwhite smashes Malaysia’s ECF records with US$1.2M fundraise via pitchIN

The lifestyle subscription platform will operate under two subscription models: SUB and SUB+.

● SUB is where users can subscribe for their daily necessities and services (e.g., groceries, pet supplies, health, and beauty products. Products are available as a single plan or in bundles. Subscribers may cancel subscriptions without obligations or continue the subscriptions on a monthly/long-term basis.

● SUB+ is a rental platform for high-value furniture, home appliances, and electronics, all of which come with warranty and servicing. Products are available at a low entry cost. The subscriptions are not installments, and customers will not need to pay a deposit nor require a credit card.

SubPlace claims LockIn is a state-of-the-art smart lock, which will be launched in October this year at the price of ~US$566. The product will be available either as an outright purchase or through a rent-to-own plan starting at ~US$16 per month.

Besides the X1 smart lock, the company will also offer two other smart locks, the LOCKIN S30 Pro and LOCKIN 2X Pro.

“I believe that the success of this campaign is an indicator of a healthy appetite for smart home products, indicating the high potential of the smart home market. However, we also acknowledge that we are now tasked with delivering on our promise, and we want to let our investors know that we will not disappoint. Our goal is to exceed everyone’s expectations,” said Mak Wai Hoong, CEO of SubPlace.

Also Read: This startup took only 38 minutes to achieve its US$720K crowdfunding target

The company recently partnered with the Multimedia Development Corporation (MDEC) to launch the Go e-Commerce Onboarding campaign aimed at helping SMEs move business online.

—

Image Credit: SubPlace

The post SubPlace raises US$2.4M for its smart lock product in 4 days of launching ECF campaign appeared first on e27.

The challenges associated with deep tech companies essentially stem from the complexities of the technology commercialisation process.

They can be placed into four broad categories: prolonged development timelines, complex value chains, limited availability of social and physical infrastructure, and high capital demand.

For Singaporean deep tech startups, this is no different. Every founder in the Little Red Dot also factors in the specifics of the local ecosystem, displaying both outstanding strengths — the quality of science, modern infrastructure, efficient government— and a fair share of shortcomings — small domestic market, limited depth of the local B2B market, large science to commercialisation gap.

If local entrepreneurs encountered barriers on all four fronts of building their venture (i.e. customers, value chain, talent availability and capital), then their chances to build a worldwide success story and win over competition would dwindle quickly.

For those Singapore-based founders embracing the arduous deep tech path, there is no choice but to build themselves a central position in a deeply interconnected mesh of global players.

Such a global mindset quickly becomes an asset by going after the most promising markets and forming strategic partnerships with world-class technology partners — rather than the “best in my own backyard” types.

In the US, EU, China or India, looking at an international presence early on may be seen as a risk of defocus by investors and advisors alike. But in many other cases — basically, the rest of the world — being competitive equates crossing national borders and target a major economy on at least one side of the business, be it go-to-market, hiring talents, or raising funds.

The challenges of building capabilities and doing business across borders are familiar to many venture founders chasing expansion and growth, starting with the last generation of key digital players, from the GAFA to regional unicorns such as Grab in Southeast Asia or Revolut in Europe.

In the case of hard tech, framing an international strategy is driven by market sizing, timing and scalability. The successive steps of the deep tech entrepreneurial journey require both short-term, dynamic, and medium-term, trust-building types of interactions with top-in-class industrial players looking for an entry ticket to the adequate spot on the value chain.

Because of the complexities of the productisation tasks at hand and the deep scientific background needed, the barriers to entry, maturation and scalability are extremely high — and the associated rewards in the case of a successful go-to-market equally attractive.

The risks inherent to developing or combining high technologies can be methodically and systematically mitigated by founders who are successful at striking those key cross-border partnerships: finding the right equipment manufacturer, prototyping workshop or international distributor, and developing long-standing collaborations.

While framed as client-supplier relationships, these collaborations are more complex and rarely purely commercial. The amount, typology and aggregated know-how of those industrial key players often hint towards North America, Europe and Japan as Tier 1 targets, together with Israel, South Korea, China and India as contenders.

Also Read: How early-stage deep-tech startups can attract and retain the right talent

While leapfrogging at tremendous speed — even leading in selected niche markets — Southeast Asia as a whole is still structurally considered as Tier 2 with regard to hard tech intensity, depth and maturity.

While the global technological and economic maps may be totally different in one to two decades, the scarcity of mature deep tech players in the region requires that young ventures focus on developing abroad early on.

Strategy amidst chaos

Deciphering those cross-border value chains constitutes both a strategic necessity and a schizophrenic element. In order to successfully create impact, founders need to navigate a moving network of stakeholder relationships. They must constantly assess and understand the ultimate users of their startup’s product or service as well as the intermediaries.

Decisions about how much time, energy, and resources they want to spend then drive how they approach the intermediaries — e.g., asset managers, corporate sponsors, advisors or investors — who sit between their venture and the future customers or partners. While intermediaries are a bridge, they can also create barriers. The expertise and willingness of an intermediary to work with the founders on the creation and evolution of a startup strategy can be critical for its success.

This very strategic mindset and the associated cross-border processes go hand-in-hand with better control of development timelines, go-to-market and funding in the long run.

Obviously, obstacles and pitfalls encountered during this cross-border journey are numerous. It means different legal systems to master, challenges to identify the right partners to initiate the dynamics, eventual push-back from the original entrepreneurial ecosystem or the local government.

The idea that national distances affect the conduct and performance of businesses operating across borders has been at the core of entrepreneurship for decades.

Here are three practical tips that founders can take to overcome some of those pitfalls:

Being default global vs default local

Future international success starts as soon as the venture is incorporated. Globalising a company doesn’t happen overseas at the beginning, but at the founders’ desks: they need to identify the right support in advanced economies, large markets and top industrial ecosystems, then convince them to be involved.

Without the founders’ quasi-obsession to build a global player, the future expansion is at risk. Mistiming of the internationalisation strategy, forgetting the root causes of global success, hiring the wrong leaders and over-delegation of the international developments by the founders are typical mistakes to be avoided.

Also Read: Meet the new batch of 8 Vietnamese startups joining VSV Capital’s accelerator programme

Capitalising on international play books

The path to becoming a cross-border firm is a series of iterations and humbling experiences. Obviously, each business model requires a different playbook.

Founders should spend some time preparing their own version that serves as the single source of truth, covering the latest learning on how their venture can grow effectively at the global scale.

The reality is that few Singapore-born deep tech organisations are actually multi-geography, therefore not that many people have been actually confronted with the challenges of growing a business across borders. As a result, that knowledge is a scarce resource because so few people have been there, and so it’s difficult to seek expertise when you decide to go down that road.

Empowering the right executives

When a deep tech company hires an executive, the business essentially hires the executive’s network. Great executives will staff a team quickly. The converse is also true: executives with weak networks burn time to build their teams.

In the first years of work, deep tech ventures mostly need to find a Sherpa working with the core team, someone who knows the market very well and has a pre-built international network. This Sherpa will allow gaining knowledge about markets, prospects, the capacity of competitors at a global level.

Over time, the founders can bring in more and more talented professionals, a winning combination being to combine senior local hires in targeted markets with long-time company employees.

Hiring the right persons is the first step, setting them up for success is the next: the organisational structure of the venture is to be adapted continuously to give key executives the freedom to operate efficiently.

This article was originally published in a longer form on Medium on July 30, 2021 and is accessible here.

–

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: monsitj

The post How to build deep tech startups across borders appeared first on e27.

The COVID-19 pandemic has impacted all of our lives in many different ways. Lockdown restrictions meant we were suddenly unable to spend time catching up with friends, family, and colleagues. We explored innovative ways to explore the virtual side of social activity due to the unprecedented circumstances. As a result, many turned to video games, taking e-sports and the entire industry to the next level.

Recent research conducted by Accenture suggests that the global gaming industry is currently valued at US$300 billion. To put this figure into perspective, it exceeds the music and movie industries combined.

For example, summer blockbusters such as Avengers: Infinity War and Avengers: Endgame or Star Wars: The Force Awakens movies all famously generated over US$2 billion individually.

However, when Grand Theft Auto V (GTA) was initially released, it earned more than $800 million in its first 24 hours.

More recently, the pandemic has led to the increased adoption of virtual social interactions as many found gaming to be an engaging distraction from the pandemic and its frustrating restrictions. But who represents the average gamer in 2021?

The changing demographic of gamers

According to NewZoo, over 80 per cent of Southeast Asia’s urban online population are gamers. This has led to publishers and gaming firms seriously looking into capitalising on the growth potential found in this region.

According to an IDC report, a 75 per cent pandemic-driven increase in mobile gaming activity is expected to remain indefinitely. Predictably, this surge of interest is generating a particular focus on the rise in mobile gaming availabilities.

As a result, it’s time to retire the lazy stereotype that only adolescent boys play video games. From the dad who lives and breathes GTA, to the mum who plays Candy Crush, to grandparents playing Wii, in a digital age, we are all gamers.

Also Read: Will Robinhood’s IPO lead to more short squeezes like GameStop?

In the past three years, the gaming industry has seen an additional half a billion players enter the space, which has increased the global figure to 2.7 billion. In addition, an influx of older gamers means that the average age of a typical gamer is now 35.

Women currently represent 60 per cent of new players on the scene, while 61 per cent of men are long-time gaming veterans. But how do these changing demographics and unique preferences lead to the changing faces of icons in today’s world?

New gaming platforms and changing demographics are pushing business boundaries away from product-centric to more experience-oriented platforms.

Gamification is becoming a standard for brands. Many household names are also embracing the concepts of gaming to educate and market their products.

Having said this, within a short period of time, we could also look at gaming as a means to connect and communicate with any audience across various industries from consumer brands to financial institutions.

We are on the cusp of a new wave of behaviour that is set to go global, and there is a growing urgency to understand and contribute to this new system.

The opportunity: Gaming as an ecosystem of super platforms

The impact of gaming on entertainment and our culture has shown upward trends leading to a more digital lifestyle. As the streaming wars gather pace, Amazon Prime is creating a TV series based around Bethesda’s Fallout, and HBO is making similar moves with an adaptation of The Last of Us for TV.

Now content with TV shows such as The Witcher, Netflix is also adding video games to its service next year as cloud gaming prepares to enter the mainstream.

During the height of the pandemic, empty sports stadiums worldwide removed much of the passion and atmosphere that attracted global audiences.

By contrast, gaming platforms are now transforming into digital social platforms where players can meet, communicate, watch live-streamed events and make purchases. All of which is fuelling the growth of e-sports.

Having said this, Ampverse became one of the fastest-growing e-sports companies in the East, setting out to play a different game by fusing data, technology, performance management, and monetisation. It’s this unique combination that is enabling major players to create a competitive advantage in a thriving market.

We have recently made acquisitions in Thailand, Vietnam and India and its winning team, Bacon Time, garnered a staggering peak viewership of 175,502 online viewers during the 2021 Arena of Valour Pro League Championship in Thailand.

The new sports heroes, celebrities, and rock stars filling sporting stadiums and attracting millions of online viewers are gamers.

According to Statista, by 2024, viewers of e-sports tournaments are expected to reach 577.2 million people worldwide.

In addition, gamers and e-sports teams are widely regarded as icons and influencers by consumer lifestyle brands and audiences alike.

Upholding the integrity of the e-sports industry

With an increasing amount of attention and investment in the industry, one of the biggest challenges is how the e-sports industry can be more effectively regulated.

With third-party involvement needed to ensure that teams and stakeholder’s needs are continuously being met, blockchain tech could be the solution to many of the challenges in the gaming industry.

In a digital world where we are all gamers, e-sports presents a long-term growth opportunity and a chance to extend the experience in traditional sports. E-sports initiatives are providing companies with attractive options to grow their international fanbase.

Also Read: “Zombeast” parent Storms to take its hyper-casual games to Indonesia, Africa with Series A financing

In particular, Southeast Asia’s games ecosystem is booming, with a US$5 billion game market expected to grow to US$8.3 billion in 2023.

These are just a few examples of why strategising efforts to focus on specific market segments and target audiences is becoming imperative in the industry.

It’s time to connect the dots by building hyperlocal ecosystems that connect teams, fans, platforms and brands. Many are only just beginning to understand the potential of e-sports, and the opportunities that are waiting in the world’s fastest-growing gaming region.

–

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: Fredrick Tendong

The post The changing face of gamers and what it means for e-sports startups in SEA appeared first on e27.

Taiwan-based VC-fund-cum-accelerator AppWorks announced today that it has made the final close of its third fund oversubscribed at US$150 million.

The new fund brings AppWorks’s total assets under management (AUM) to US$212 million.

Investors of Fund III include Taiwan Mobile, Axiom Asia Private Capital, Fubon Life, TransGlobe Life, Hongtai Group, Wistron, Cathay Life, Phison Electronics, and Taiwan’s National Development Fund.

It will continue to focus on investing in companies operating in Artificial Intelligence and blockchain in the Greater Southeast Asia region (Southeast Asia+Taiwan).

As per a press statement, the new fund is in the process of constructing a portfolio of roughly 40 deals, including 20 investments starting at US$2 million in Series A to Series C companies and 20 in the seed stage.

Additionally, the VC firm will recruit new investment associates and analysts to scale up the investment activity of Fund III. It aims to create an ecosystem encompassing 1,000 active startups with a collective value exceeding US$100 billion and generating 50,000 employment opportunities in the next 10 years.

“From a humble beginning, AppWorks is now one of the region’s leading investors, working together with other prominent venture capital firms to cultivate the startup ecosystem in fast-emerging Southeast Asia. On the AI and blockchain front, we have become a major player on the global stage,” said Jamie Lin, chairman and partner at AppWorks.

Also read: AppWorks raises US$114M for fund III to back Series A and B startups in SEA, Taiwan

Currently, AppWorks Fund III has backed more than 20 startups, including its accelerator alumni Pickone, WeMo Scooter, Omnichat, XREX, Blocto. It has also invested in companies led by a handful of AppWorks mentors, including Carousell, Dapper Labs/Flow, Tiki, Dcard, Yummy Corp, and Animoca Brands. Among them, Dapper Labs and Animoca Brands have both crossed the unicorn threshold.

Since its founding in 2009, AppWorks’s ecosystem now encompasses 414 active startups and 1,396 founders, who have collectively raised US$4.3 billion and it boasts an aggregate valuation of US$17.4 billion.

Capitalising on Taiwan market’s distinct advantages in talent and manufacturing capabilities, AppWorks offers founders a direct pipeline to talent via the AppWorks School as well as access to Taiwan’s world-leading hardware manufacturing resources to hone the competitive edge in critical areas in the future.

The firm also deploys a local seed fund strategy in the Southeast Asia market to secure proprietary deal flow. This broadens AppWorks’ exposures in the region to gain meaningful insights and access to promising deals without concerns about regional travel restrictions during the pandemic.

—

Image credit: AppWorks

The post AppWorks closes US$150M Fund III targeting AI, blockchain startups in Greater SEA appeared first on e27.

How millennials and the pandemic are driving the growth of cloud kitchens in Indonesia
The country started seeing some interest in cloud kitchens in late 2018, and it became a full-blown topic in 2019, and now the pandemic is accelerating it; Now there are quite a few players, such as GrabKitchen, GoFood, Hangry, Yummy Corp., and Everplate, among others.

AppWorks closes US$150M fund III
Investors include Taiwan Mobile, Axiom Asia Private Capital, Fubon Life, TransGlobe Life, Hongtai Wistron, and Cathay Life; The fund is in the process of constructing a portfolio of roughly 40 deals, including 20 investments starting at US$2M in Series A-C companies and 20 seed-stage investments.

GIC invested an additional US$94M into Bukalapak before its IPO
The transaction, which was done through GIC’s subsidiary Archipelago Investment, increased GIC’s stake in Bukalapak to 11% from 9.45% earlier; In April, GIC, Microsoft and Emtek co-led the US$234M fundraise of Bukalapak.

Pintu adds US$35M to its Series A kitty, aims to build Indonesia’s ‘largest crypto exchange’
Investors include Lightspeed (lead), Alameda Ventures, Blockchain.com Ventures, and Castle Island Ventures; The platform currently supports 16 different dynamic cryptocurrencies for trading and intends to add more coins such as NFT tokens.

Tiki raises US$20M Series E from Taiwan Mobile
The transaction values the e-commerce firm at US$740M; As per a DealStreetAsia report, Tiki has secured US$94M in Series E this month alone; The firm is also mulling an overseas listing to secure additional capital.

Ex-Zalora CEO’s delivery experience platform for e-commerce businesses Parcel Perform lands US$20M
Investors are Cambridge Capital (lead), SoftBank Ventures Asia, Wavemaker and Investible; Parcel Perform enables modern e-commerce enterprises to optimise logistics operations with data integrations, parcel tracking, delivery notifications and logistics performance reports in real-time.

Synqa acquires SaaS platform for event creators Eventpop in an “8-digit USD” deal
According to a well-placed source, early-stage investors got more than 5x returns, and the late-stage investors also got some returns; EventPop is backed by the likes of KK Fund and InVent.

Fuse closes Series B in a GGV Capital-led round to grow its insurtech platform beyond Indonesia
Investors include GGV Capital (lead), EV Growth, Golden Gate Ventures, and Emtek; According to a DealStreetAsia report of June, Fuse raised US$30M in this round; Fuse has partnerships with more than 30 insurance companies, 300 insurance products, and 50K+ agent partners on its platform.

27 Singapore tech startups that have made us proud this year
These achievements and milestones range from securing unicorn status, confirming plans to go public, and raising more than US$15 million in a single funding round.

Singapore-based Mighty Jaxx raises US$10M
Investors include Aceville of Tencent Cloud and KB Investment; Mighty Jaxx designs and manufacture collectibles and lifestyle products in partnership with global brands such as Hasbro, Cartoon Network, and Warner Brothers;  It claims to have shipped millions of products to collectors in 60+ countries.

Fintech startup AwanTunai secures US$11.2M
Investors include Insignia, BRI Ventures, and OCBC NISP Ventura; AwanTunai is a POS financing solution aimed at digitising Indonesia’s vast economy; It offers services including affordable inventory purchase financing, integrated online ordering, and inventory management to wholesalers and micro-merchants.

Vietnamese paediatric chain Nhi Dong 315 completes Series A
Investors are BDA Capital, Thien Viet Securities, and Qatalyst Ventures; Nhi Dong 315 operates a hybrid model integrating its app into the brick-and-mortar system; The firm currently operates 14 paediatric clinics in HCMC.

Indonesian payments solution Durianpay raises US$2M
Investors include Sequoia India’s Surge (lead), AC Ventures, Kenangan investment fund and angels; Durianpay is an end-to-end payments provider that enables businesses to grow and scale through a one-stop solution for frictionless checkout and easy-to-integrate modern APIs and dashboard.

500 Startups rebrands its SEA-focused 500 Durians fund
Called ‘500 Southeast Asia’, the VC firm will continue to focus on seed-stage investing, offering up to US$500K to founders; It is also now open to provide follow-up funding up to US$5M and to potential investments via special purpose vehicles.

Singapore-based VC firm Antler launches in South Korea
The company is looking to invest in 100 startups over four years from its new office in Seoul; The operations will be led by new partner Jiho Kang, who co-founded service marketplace Soomgo; Antler will begin investing in local startups early next year.

How Singapore is leading banking-as-a-service adoption globally
Singapore fintech scene is booming because the nation is embracing technology and trying to create digital solutions for its citizens; One such area is in open banking, whereby banks share customer data with third parties to allow customers or other financial institutions to access this information for various uses.

A close look at Singapore’s thriving startup ecosystem
As of 2019, Singapore had over US$19B in PE and VC AUM, more than twice that of neighbouring Indonesia, Philippines, Vietnam, Malaysia, and Thailand combined; In that same year, the country was home to an estimated 3,600 tech startups; Start-up Genome priced Singapore’s ecosystem at over US$25B, five times the global median.

—

Image Credit: Bukalapak

The post Ecosystem Roundup: GIC invested US$94M into Bukalapak before its IPO; All about the cloud kitchen industry in Indonesia appeared first on e27.

The post AC Ventures, Kenangan Fund join Durianpay’s US$2M round led by Surge appeared first on e27.

In early 2020, the COVID-19 pandemic hit our shores and disrupted life as we knew it. With a series of lockdowns and worldwide travel restrictions, it seemed like the global workforce was forced to participate in a mass “experiment” of sorts. Existing operational processes were put to the test, and companies had to grapple with new measures implemented on the fly. 

Before the pandemic, the “work smarter not harder” mantra led by the world’s biggest tech companies saw free lunches, open-concept offices and additional days of childcare leave as the gold standard for an innovative workplace. With most of these office perks removed, work went back to the core: people.

Studies have shown that happier employees work better to achieve organisational goals. Engaged and happy employees who feel that they belong excel in their work and positively impact the company’s performance.

I learnt this first-hand as my company, AlphaLab Capital, evolved. With no outside investment, my co-founder Michal Krasnodebski and I had the freedom to build a company and culture based on the core values we believe in – a workplace where people can work, and have fun doing so.

We made it a point to cultivate a workplace where each employee can contribute, grow and outperform and create an environment where we would want to work.

When news of the pandemic broke and working from home became the default arrangement for non-essential businesses, we took steps to transit amid the uncertainties and rapidly evolving situation. However, the processes that we set in place prior to the pandemic helped us greatly in maintaining productivity, reducing disruption and keeping our company going.  

There is no one-size-fits-all approach to developing a people-first culture, so having tried many ways to figure out the best way to work together, here’s what we’ve learned:

Building a conducive environment

It is no secret that the environment – both physical and mental – contributes significantly to employee productivity. On the physical front, we have witnessed in this century a phenomenal shift from the use of individualised cubicle workstations to the use of “open concept” workspaces.

Whether the purpose for this shift is an attempt to save costs or boost collaboration and productivity, does an open-plan office really benefit everyone? And now, with more companies implementing hybrid work arrangements due to the pandemic, how can offices be reimagined to provide a safe, conducive yet collaborative environment for all?

In a tech environment, especially in software development, an open-plan concept may counterintuitively do more harm than good. While providing employees easier access to one another may make it seem easier for collaboration, individual contributors may find it more distracting than helpful.

Also Read: How Appinventiv Grew to 400 in Just 4 Years

AlphaLab’s office, designed especially for software engineers, accommodates the best of both worlds – a meeting and socialisation zone invites information collaboration, while dedicated workstation rooms allow employees to work away from distractions. 

During Michal’s prior stint at Shutterstock, his internal study found that 61 per cent of over 10,000 meetings were made up of pairs and small groups. Drawing inspiration from that experience, we analysed two years’ worth of meetings to help the company design the new office and meeting rooms.

We have done away with large, underused boardrooms; instead, small meeting rooms allow for quicker, more focused discussion, and the larger spaces are dedicated to our software engineers to spread out and work in peace.

Empowering employees with open communication and ownership

As remote and hybrid work arrangements become a norm, it is more important than ever to have open workplace communication and keep genuine feedback flowing. By creating a supportive environment to encourage employees to speak up, you can help your team members remain engaged and valued.

According to Google’s Project Aristotle research, which studied 180 teams across the company, psychological safety is the most important factor in achieving successful teamwork. Harvard Business School professor Amy Edmondson defines psychological safety as the “belief that one will not be punished or humiliated for speaking up with ideas, questions, concerns, or mistakes.” 

At AlphaLab, we espouse this through monthly agile retrospectives, where everyone on the team is encouraged to share feedback and propose ideas or suggestions, regardless of roles or hierarchy.

These exercises help uncover valuable insights about management, work processes and even solutions, which lets us address issues effectively. These meetings have seen cross-pollination of ideas – as more ideas mean better ideas – and even transformed our planning process.

Open communication goes beyond our monthly “all hands” meetings as we constantly seek feedback from all employees on all matters. Our employees are empowered to state hard truths and process unvarnished feedback with an improvement mindset away from blame; this is crucial in developing a learning environment that drives progress and constant improvements.

We also strongly value self-direction and encourage employees to take ownership of their ideas and breakthroughs. Instead of a top-down management structure, our employees are wholly responsible for delivering their own results. With decentralised planning meetings, our staff own their responsibilities and backlogs, and how and when they do work is entirely up to them.

We also entrust our staff with unlimited vacation days – although this is currently under utilised due to pandemic-related travel restrictions. This helps promote a culture of accountability, and employees feel empowered and trusted at work. 

Also Read: Why startups need to embrace experimentation culture to thrive in the pandemic

Beyond operational processes, we also encourage self-direction and ownership in the company. We take pride in giving all employees broad exposure to all parts of the business – infrastructure, core trading technology and even in strategy development. By taking on fluid roles and responsibilities and working directly with a diverse team, everyone, even the interns, is empowered to discover their interests and unlock potential areas of growth.

We have two colleagues who were initially hired as engineers but have since transitioned to becoming quants because they were allowed to work on different aspects of the business and developed interest and aptitude for quantitative trading.

Investing in future generations with a people first culture

COVID-19 or not, the industry is still charging forward. A people-first approach doesn’t just stand us in good stead for the present; it also lays the groundwork for the future. We saw the importance of investing in the future generation of engineers to ensure growth while the economy recovers.

In a time when other organisations began cancelling their internship programmes, AlphaLab took the opposite approach and hired an outsized team of interns. We currently have eight interns (including a high-school graduate) who are well supported and contribute greatly to our team. 

More than just boosting our recruitment pipeline, our internship programme is driven by the belief that education and opportunities have the power to change lives. Our interns benefit from hands-on practical experience that will give them a leg-up in the career paths they wish to undertake, whether continuing with us or not.

In the bigger picture, the training and experience for engineers-to-be– students pursuing their passions – is our way of investing in Singapore’s future and contributing to a growing industry: a rising tide lifts all boats.

In a fast-paced industry where technological advancements can serve as either a creative or destructive force for companies, upskilling is important. Employees are encouraged to pursue upskilling opportunities, and we support them in their development. Since they control their schedule, they can take time off during the workday to attend class and fit their education around deliverables.

We are proud to note that several of our employees have since embarked on such academic endeavours during their stint with us – from earning a Machine Learning degree to embarking on a Master’s programme.

These various methods of fostering ownership and employee engagement in the workplace have proven beneficial amid the new norm. Productivity and the sharing of knowledge have remained at an all-time high, and this shows that physical proximity isn’t everything – employee empowerment is.

We strive to provide every employee with the right environment to feed their instinct for innovation and have fun at work. While we’re proud to have recently earned the Great Place to WorkCertification, our people-first culture reflects that when staff thrive, so does the company that works hard to nurture them.

–

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: AlphaLab

The post Power to the people: Ways to build a people-first culture appeared first on e27.