Lack of climate change education, governmental support and entrepreneurial culture contribute to the shortage of climate tech companies in Southeast Asia, said Tien Nguyen, General Partner of Earth Venture Capital.

However, with the growing awareness and initiatives in the region, it is just a matter of time before highly qualified climate tech startups emerged in various sub-sectors of climate tech.

“Entrepreneurship and venture investment develop through the history of economy, education and culture. Southeast Asia needs more time to improve startup quality and attract more relevant capital,” he said. “The region, however, has possessed the potential of a large and young population, a growing source of tech talents and a supportive government in terms of climate change.

Founded by Tien Nguyen and Linh Nguyen (not related), Ho Chi Minh City, Vietnam-based Earth Venture is a VC fund investing in early-stage digital solutions tackling climate change. The debut fund — closed a few days ago — seeks to support pre-seed to Series A-stage companies with a potential to expand globally.

The VC firm invests in startups in Artificial Intelligence, Machine Learning, Big Data, computer vision, and the Internet of Things that serve the goals of switching to renewable energy, abandoning fuel and diesel and planting more trees.

Also Read: There’s a mismatch of investment and entrepreneur focus in SEA’s climate tech: Steve Melhuish

Fund I aims to back 10-12 startups, with ticket sizes ranging from US$500,000 to US$3 million. Earth Venture Capital’s LPs include unnamed global institutional investors with a strong focus on climate change.

According to Tien Nguyen, the Vietnamese ecosystem has excellent potential, but it is still nascent and investing in the country is risky. It, therefore, applies a venture studio model in the market.

Earth Venture Studio is an institutional co-founder that invests and works closely with local startups — from ideation to the product-market-fit — in a scientifically systematic entrepreneurial sequence. After a year in the studio, the best startup will receive investment from the VC firm.

As founding investors, we co-build Earth startups, and we stick around for the entire mission, including the pre-and post-launch phases. We help turn an idea into a product, see it in action, and launch it for the world to experience it,” he said, sharing the details.

The VC firm also runs Earth Venture Foundation. This not-for-profit unit provides grants and sponsorship to academic and scientific initiatives/research/inventions that add value to the climate change preventing battle.

Tien Nguyen stressed that climate change is a global issue that needs to be addressed on a global scale. “There should be more education about climate change and entrepreneurship to develop more feasible initiatives in the cleantech industries. More capital commitment and involvement are needed from governments, think tanks and institutions to empower innovative entrepreneurship. Besides, the partnership with global organisations for climate change initiatives and ideas sharing is also an essential factor for Southeast Asia to keep up with the world trends.

“Our region is severely affected by climate change. Our startups, therefore, have an opportunity to test their products right on the battlefield with real issues. The complex consequence of climate change pushes our communities to react faster and more critically. The advantages that may differentiate Southeast Asia from the rest of the world are the outstanding talent in the region and the lessons we can learn from the mistakes of other regions in terms of climate tech,” he concluded.

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Watching  NFTs break into the mainstream last year, I’ve pretty much been able to create a scorecard that gives me a good idea of whether a project will succeed or not.

Of course, only time will tell because it’s not exactly foolproof. But it’s helped filter out which projects to keep my eye on for my mental health, especially with hundreds of minting every week. 

The term derivative may not be such a bad word in this industry, but sometimes when I review a new project’s roadmap or whitepaper,  I catch myself  saying, “I’ve seen this before.” 

Sadly, after some time, the space can become monotonous. And then, of course, there’s also the speculation, rug pulls and scams. Sometimes you need to step away from it all. 

After all the shilling is said and done, could there be an NFT project that’s downright good for the soul?

I say yes. As a more diverse crowd enters the space, I’ve witnessed exciting projects that tell me that we’ve only seen the beginning of what NFTs can do.

Shifting away from art to phygital impact

Rather than artists being the centre of a project, I’ve seen founders use the most basic artwork as a key to unlock valuable utility.

OddFutur3, for example, attaches the following benefits to their 200 wordart-esque access token GIFs: exclusive community, minter and collector tools, VIP whitelists, membership to a DAO, IRL meetups and experiences, early content, and much more.

This opens up the possibilities for creators to focus on developing sustainable business models similar to that of Web2 social enterprises. 

On February 27, 2022, CryptoKittens, Sussy Sharks, Chillin Chameleons, Honey Bee Club, Ocean Bandits, and Cyclo Turtles organised #NFTCLEANUPDAY. Their respective communities banded together to do a beach cleanup at the Santa Monica Pier.

While assets, the NFT, may be digital, the reach may be more tangible and lasting, straddling both Metaverse and the physical world as we know it. 

In their mechanics, even those who couldn’t join physically had a way to enter the contest, blurring the physical and digital lines.

To me, that’s exactly what the Metaverse is, not just the platforms we know of. It’s an inclusive community coming together in a virtual space interacting in increasingly immersive ways.

Creators combine lessons and concepts learnt from previous PFP (profile picture ) projects like gamification, community involvement, and merchandise giveaways and apply them to sustainable development goal problems.

Also Read: Making sound NFT bets: Think before you mint; ruminate before you ape

In effect, they’re hacking the theory of cultural change with NFTs by making it possible, easy, normative, and rewarding to do good.

Cool collective capital

In the Web2 space, the common route startups and social enterprises would follow pursuing venture capital or incubation programmes. They would have to perfect their pitches to secure make-or-break funding. NFTs have changed the game by democratising how capital is secured. 

If you think about it, minting is essentially a fundraising exercise, where the stakes aren’t as high for both founders and investors. To quote the tagline of one project, Not Essential, “Individuals cannot do much, but individuals together can do a lot.”

For illustration purposes, let’s consider the Luckies project by OddFutur3. A successful mint will raise 789.25 Eth or US$21,167,471.75 as of writing, less marketing costs, of course. This gives a pretty lengthy runway to execute on their roadmap, aiming to promote Asian culture from the perspective of second-generation immigrants in North America. 

Imagine what it would take to do that using Web2 methodologies. 

In Web3, fundraising in this manner empowers the community in two very specific ways.

It gives individuals the ability to earn like an angel investor with the minimal resources they may have.

Secondly, unlike pitching to a VC, the business model is not fully fleshed out. The community is highly involved in deciding the direction of a project. Decisions are made together, which tells me that more nuanced solutions can be created.

In light of recent events, we’ve seen how certain projects are using their clout to raise funds yet again for social good.

Jungle Freaks is raffling off 1 Genesis Jungle Freak, 5 “Allow List” spots each for JFMC and Fallout Freak to those who donate to the United Help Ukraine charity. Andrew Wang and other NFT influencers aren’t sitting this one out either.

They launched RELI3F, where 100 per cent of the funds from the primary sale will go towards relief efforts, and royalties from secondary sales will go back to the 27 Ukrainian artists in the collective. 

Business savvy for creating value

However, what is common between Web2 and Web3 funding is the importance of the founding team and their ability to deliver on their promises.

Call it really good marketing, but time and time again, I’ve seen projects that are super hyped up until mint.

Also Read: How indigenous artists could preserve their own culture with NFT

After which, the project fizzles out. I’m of the opinion that great projects that deliver value to their community will always be a success. Floor prices should be indicative of the confidence in that value. Concretely, Zoofrenz, for example, currently averages at about 0.55E, holding steady one month after minting.

I don’t think the jump from its initial price of 0.15E would be the case if it weren’t for Zombot Studios, a game art agency behind the project.

When they say they will deliver a game as part of the roadmap, we can rest easy that they can make it happen.

For OddFutur3, which helps offline businesses go online, their deep expertise in knowing their client’s customers enables them to build meaningful Web3 solutions.

OddFutur3’s founders have been behind generating billions of dollars in value for their businesses and that of their clientele. I’d be wary of projects that don’t have a strong founding team, especially when they’re entrusted with that much funding, decentralised or not.

Final thoughts

It may be only a matter of time for the bubble to burst on PFP projects or even collectibles.

For me, however, I’m still extremely bullish. We’ve yet to explore what NFTs can do, and the positive impact Web3 projects can have on the world.

If you’re a creator wanting to enter the Web3 space, my advice is to make social good your jumping point. Ask yourself the question,s “What would you do to make the world a better place?”

And then find a community that shares your why.

If you’re an investor, consider projects that go beyond the collectible use case. Find projects that have utility impacting real lives phygitally.

In this fast-paced world of NFTs,  it may be in projects that promote social good that you find what you’re looking for beyond the next 10x return.

I’ve always believed that there is a demand for good, and there will never be an oversupply. That is something you cannot hype.

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On Friday, February 18^th, Singapore announced that it was raising its carbon tax rate from SG$5 per tonne of emissions to SG$25 per tonne by 2024 and eventually between SG$50 and SG$80 by 2030.

This represents a significant step forward, giving climate impact a tangible cost and forcing companies and consumers to reflect upon and fiscally compensate for their carbon footprint.

A recent report by PwC and World Economic Forum (WEF) shows that an internationally agreed minimum carbon price could cut emissions by 12 per cent with little cost to economies.

But despite this, if we are to have a chance of reaching net-zero by 2030, companies cannot simply wait for the government to impose penalties from above, but rather must make proactive choices themselves, not simply reducing but also working to offset their carbon emissions.

The logic behind this is simple. Recent research suggests that humans have already emitted around 2500 billion tonnes of carbon dioxide since 1850, burning through over 86 per cent of the allotted carbon budget needed to stay under the 1.5C of warming pledged under the Paris Agreement.

While a carbon tax might encourage companies to make greener choices, adopting new technologies or swapping fuels, simply reducing emissions without offsetting them is unlikely to do enough to salvage the carbon budget.

Not only this but lauding a carbon tax as the pinnacle point in the effort to redress climate change brings with it the concomitant risk that businesses will simply pay their carbon tax and be done, investing no further money in green initiatives or actions.

Creating a carbon trading centre

The fact that Singapore is reported to be considering buying carbon credits and allowing businesses to buy international carbon credits to offset up to 5 per cent of their taxable emissions from 2024, is further evidence of the increasing recognition that reaching net-zero will require a dependency on alternatives other than a carbon tax.

Singapore is moving in the right direction with such initiatives, priming itself to become a centre for carbon trading.

Also Read: 13 cleantech startups to watch in Asia

Under the “Green Economy” pillar of the Green Plan, the creation of a carbon trading and services hub will encompass “green finance, sustainability, verification, credits trading and risk management.”

Singapore has established itself as a global leader in efforts to create a “carbon economy” and the introduction of a carbon tax in 2019 is evidence of this.

However, it is crucial that corporations do not see a carbon tax as a reason to deny taking proactive action. A carbon tax is not the final solution, but a positive first step.

This is why solutions like our Carbon Neutrality Token (CNT) are key in addressing the urgent climate crisis.

Not only do we currently provide the only platform that facilitates international carbon credits trading, but our CNT also allows access to authenticated carbon credits, which enables companies to actively go above and beyond balancing out their carbon emissions and thus solidify their commitment to salvaging the environment.

We know that as carbon offsetting becomes increasingly key in the fight against climate change, and as regulation tightens around such schemes, it is important for institutional investors to have absolute confidence in the quality of the exchange they choose.

MetaVerse Green Exchange’s CNT token solves the problem of ‘double-counting’ in the voluntary carbon markets by preventing the carbon emission reduction from being counted as part of the Nationally Determined Contributions (NDC) in both the host country as well as the carbon credit investor’s country.

Investors can thus be sure that their efforts are legitimate, protected against charges of ‘green-washing’, and that the carbon credits they purchase are of high-quality, therefore ensuring carbon reduction integrity.

While a carbon tax represents a positive first step in the fight against climate change, reaching our net-zero target as soon as possible will require us to not simply reduce but also offset our emissions. We encourage companies to affirm the MVGX mission and start making a proactive effort today.

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Indonesia’s long-stay rental provider Rukita has announced the official acquisition of Infokost.id, a local search site for boarding houses.

The deal size has not been disclosed.

Infokost.id was owned by GDP Venture, a Djarum Group financing company. In December 2020, GDP Venture announced the closure and termination of Infokost’s operations. Rukita then took it over and revitalised the business with a series of innovations. Currently, Infokost.id offers one million rooms on its property listing platform and serves 50,000 property owners.

Consumers who want to find a boarding house can go to the Infokost site and register using their mobile phone number. Then, consumers can search and instantly make reservations at properties on its verified list by filling out the form and directly connecting with the Infokost.id team, which will forward the request to the property owner.

Also Read: How Rukita turned the pandemic into an opportunity to grow its co-living business

At the same time, boarding house owners who want to partner with Infokost.id can register their properties at Infokost.id.

“With this acquisition, we can serve more consumers and property owners across Indonesia through Infokost.id. This is one of several Rukita business expansions planned for 2022,” said Xu-Zonne Ho, Co-Founder and CTO of Rukita.

A Sequoia Surge startup, Rukita seeks to provide a hassle-free living experience for residents and property owners. The firm said in a press release that it won a total of 13 million website users since its first launch in mid-2019.

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In 2021, startups in the Philippines raised a total of US$1.03 billion in funding which is a significant increase from the 2020 number of US$369 million, according to a report released by Foxmont Capital Partners and Boston Consulting Group.

Related to funding in the startup ecosystem, the report further detailed that from 2019 to 2021, the Philippine startup ecosystem has grown in both deal value and volume. Within the first half of the year, startups in the country raised US$437.5 million. It dubbed 2021 as a “watershed year” with total deals hitting a record of 92 and numerous startups getting into Series A, B, and C.

The report also stated that fintech, as well as media and entertainment, exhibited the largest funding growth in 2021. The number for the fintech vertical was primarily driven by the funding rounds raised by Mynt (which emerged as the country’s first double unicorn with their latest raise) while the media and entertainment vertical were driven by Kumu.

Also Read: Meet the 22 notable startups that have brightened up the Filipino tech ecosystem

The following is a list of the top five verticals that have secured funding in the Philippines in 2021:

For the e-commerce vertical, there is a 77 per cent increase in online shopping growth from 2020 to 2021 –the COVID-19 pandemic and related safety measures certainly contributed to this number. The Department of Trade and Industry even expects the e-commerce vertical to contribute US$17 billion to the domestic economy in 2021 and US$24 billion in the succeeding year.

Food and beverage (F&B) tech are also another vertical that was accelerated by the prolonged stay-at-home; the total value of the online food delivery market reached US$247.2 million.

What is next for startups in the Philippines

In this report, Foxmont Capital Partners also noted the progress that startups in the Philippines have made in 2022. Within the first two months of 2022, funds raised by local startups reached US$310 million, outpacing the same period in the last two years.

This indicated a “clear sign of continuous growth” in the ecosystem, according to the VC firm.

It is also seen as a sign that the ecosystem has begun to show signs of maturity with six out of eight deals in 2022 being Series B and C deals.

Also Read: A horse of another: Here’s the complete list of Southeast Asia’s 28 unicorns

The country has also become increasingly popular as a startup hub.

According to Foxmont Capital Partners in a press statement, the 2022 Philippine Venture Capital report was created as an avenue to foster the ethos of collaboration between key players in the local startup landscape.

Established in 2018, Foxmont Capital Partners described itself as the Philippines’ only independent, country-focused venture capital fund that invests in scalable startups in rapidly digitizing areas. The firm has announced over 26 investments thus far, with recent additions to its portfolio being social commerce platform SariSuki, export enabler 1Export, digital ledger and point-of-sales app Peddlr.

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