On September 28-29, Singapore became a host for TOKEN2049, one of the leading global crypto events where founders and executives of leading Web3 companies share their views on the market.

On the sidelines of the event, e27 speaks to three global Web3 companies to understand their views on the Asia Pacific as the next big market for them –and how they intend to win this.

Seeing the Asia Pacific from outside

The first company that we spoke to was WEMIX, a South Korean-origin company that started out as a game developer before expanding to the Web3 space. Its offerings now include DAO and DeFi services.

“We started the blockchain business in 2018,” WEMIX CEO Shane Kim explains to e27 on the first day of TOKEN2049. “As a gaming company with more than 20 years of history, we have very big IPs and game titles. We need a game platform to onboard our games, so we launched our platform in 2020.”

Although founded in South Korea, the company has set up an entity in Singapore, which it views as a “significant area” for its blockchain business WEMIX.

Also Read: Web3, wallets, and winning the next culture revolution in Southeast Asia

“We think Singapore is the best place to extend our blockchain business because Singapore has friendly regulations. It is also not far from South Korea, so there is little time difference. It is the best place to expand our blockchain business,” Kim says.

We also spoke to Anton Katz, CEO and Co-Founder of digital asset technology provider TALOS, who explained to us the difference in their user profiles from the early days of the company and today.

When the company first began, most of its clients were crypto-native organisations that wanted to provide services to the customers. But today, they have a wider variety of clients, which include traditional financial institutions and service providers who are looking to enter the Web3 space by adding digital assets into their regular offerings

Katz also noticed a difference between US and the Asia Pacific clients.

“In the US and Europe, there is a 50-50 balance between crypto-native organisations and service providers. But what we have seen in Asia is more lopsided towards the service providers,” he said. “There is a strong, long-term thinking in Asia in terms of providing services to underlying clients, and those can be retail or institutional customers.”

“We definitely did not expect this level of interest,” Katz stresses.

Another global Web3 company looking into the Asia Pacific market is Amber Group, a global digital asset company that has recently secured unicorn status. Having grown from 60 people to almost 1,000 in the recent year, the company also sees a shift in the profile of its customer base.

“Our client base is actually quite diverse. Four or five years ago, it was mostly the crypto-native participants because back then, there are not that many outsiders trading crypto. So you can think of crypto miners who have the need to get liquidity or manage their Bitcoin exposure. Then there are many and token projects,” explained Annabelle Huang, Managing Partner at Amber Group.

“Right now, we have also expanded into a lot of the traditional financial institutions, a lot of hedge funds, that are scaling up to add crypto to part of their portfolio. We also have traditional family offices and ultra-high net worth individuals who are willing viewing Bitcoin as an alternative investment,” she continued.

Also Read: How Web3 will impact the future of employment

Having started her career in the US, Huang also noted the difference in how Asia Pacific customers are behaving.

“I saw a very different crowd. In the US, it is a lot more developer-focused, more R&D perhaps. In terms of user activity, I think it’s definitely a lot more vibrant here in the Asia Pacific,” she said. “People are generally open-minded about new products and willing to try. It is a perfect ground for a lot of innovation that comes to this space to become real, tested use cases eventually.”

This placed the Asia Pacific as a top priority market for Amber Group.

“We are continuing to build upon the offerings here. All the way from the base layer, from security to all the product offerings that we can offer to clients. For example, on the institutional high-net-worth side, maybe their need is more around trading or wealth management. But I think we are not ruling out retail opportunities down the line,” she elaborates.

“Looking at the trends we have seen so far, in GameFi and others … I think we’re building out the infrastructure so that we are ready to onboard many more users. By infrastructure here, we mean technical infrastructure and regulation infrastructure.”

Seizing the APAC market

When it comes to the strategies these companies are using to seize opportunities and win market share in the Asia Pacific, there is a great variety between TALOS, WEMIX, and Amber Group. But one thing in common for these companies is the importance of word-of-mouth in a nascent industry such as Web3.

“For many years, it happens organically,” explains Kim. He adds that as a gaming company, WEMIX only began implementing marketing outreach with its more recent titles by hosting offline events in Japan, where most of its attendees come from abroad.

“We always focus on the essence of the game business: Fun. Basically, a game has to be fun,” Kim stresses. “Money is [even] a second objective, I think. Many P2E games focus too much on making money, which is not sustainable. Users will always want a fun experience with a game.”

Also Read: A look into (brand) love in the time of Web3

Amber Group also benefited from the concept of word-of-mouth.

“We have established ourselves as the most trustworthy, secure, and service-oriented platform. I think that is what our clients liked. Internationally, this space is still quite small,” Huang explains.

“So, for new players looking to come into space, I think they will get around to recommendations, and our name is always on top of the list,” she concludes.

With the Asia Pacific playing an important role in their expansion plan, it is no surprise that both TALOS and WEMIX have set up entities in Singapore to spearhead their operations in the region.

“By having these interactions in APAC and abroad, we have a better understanding of how service provider organisations are adopting these technologies. We are better at providing a more coherent set of services,” Katz explains. He gives an example of how crypto trading platforms tend to focus more on improving trading efficiency, connectivity, and stability while other organisations may put a stronger emphasis on relationships with clients.

In the case of WEMADE, the company is also looking forward to investing in more blockchain projects and companies in the region.

“We focus on the quality of the game and the fun [aspect of it], but we expand our business to new trends of the blockchain industry. We always go out looking for new trends,” says Kim.

Also Read: How Web3 will revolutionise borderless banking in Southeast Asia

Huang explains more details of Amber Group’s plan to grow further in the Asia Pacific market. It starts with expanding its team to include the best talents in the region.

It also puts emphasis on surviving the crypto funding winter.

“The most important thing is to weather through this cycle, making sure that we can continue to build in this so-called crypto winter. To remain competitive and still offer the best-in-class services … to make sure that we can onboard the next wave of users coming our way in the next Bull Run,” she closes.

The post Global Web3 companies on why Asia Pacific is the future of the industry appeared first on e27.

In this episode, we are excited to welcome Marvin Liao. Liao is a partner at Diaspora Ventures and GAMEGROOVE Capital and previously was a partner at 500 Startups, where in total, he has invested in over 400 companies. Prior, Liao played a major role in the international expansion efforts (in APAC and EMEA) at Yahoo!

In our conversation, Liao shares why it is crucial to building an internal network and trust to be successful in new markets, the pitfalls of too much localisation and autonomy, the importance of two-way innovation, and why bad economic times are great opportunities to expand in international markets and viewpoints on how investing in fast-growing companies is getting more global.

Also Read: East Ventures, Yahoo! Japan Capital, and SMDV launch EV Growth

Get your copy of our Wall Street Journal Bestselling Book, Global Class, a playbook on how to build a successful global business.

This episode is sponsored by our partner ZEDRA. Learn more about how the ZEDRA team can support you in expanding to new markets here.

Find our entire podcast episode library here.

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The content was first published by Global Class.

Image Credit: Global Class

The post Why Yahoo!’s strategy to give local teams near full autonomy cost them the global search market appeared first on e27.

In my eight-month career at e27, I have had the privilege of walking closely with our contributors and propelling their thought leadership journey via the e27 Contributor Programme.

I have come across different perspectives and opinions leading the change towards positive growth and learnt so much about the ecosystem thanks to our incredible contributor community.

A few weeks back, we published an article by John Tan, Co-Founder and CEO of Doyobi, an edutech startup, where he talks about how our current education system has been struggling to nurture curious and self-directed learners, focusing on finding solutions that go way beyond the four walls of a classroom. And thus, I was introduced to the hybrid model for our education system and how edutech is making it happen.

Our contributor articles from expert thought leaders of the tech industry call for an evergreen stature of content. Our club has founders, investors, innovators, technicians and startup professionals expressing their views.

And since its inception, we have tried to nurture our growing family of contributors. While at it, we have realised that nothing is more enriching and heart-warming than learning from each other.

Day in and day out, the ability to strengthen this vibrant community and how we can serve our contributors better keeps us going. And it is time we give them the much-deserved spotlight. Each one has a unique voice and perspective and deserves to be heard. Check out our latest product update — a contributor-only leaderboard to glance at the most popular voices on e27 at all times.

This leaderboard is a ranking chart based on article views where you can see our top trending contributors and their published bylines. With this new launch, you will be able to discover the most popular contributions from the community and stay connected at any given time. We aim to ensure that accessibility becomes as smooth as a bowl of butter and that a bright spotlight is always shining on our top thought leaders.

Our responsibility is to bring out the choicest voices and opinions and keep strengthening and nurturing this evergreen community. Don’t forget, we are just the glue holding this community together; the real magic dust is you.

So without further adieu, head to our news page (hyperlink) and see the magic brewing for yourself. If you want to see yourself on our new shiny leaderboard, join our vibrant community today by submitting a byline.

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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

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Technology has become such an integral part of the way organisations operate, and because of this, the tech industry faces a huge skills shortage. So much, so that big pay packets are offered to those with the most in-demand tech skills – usually men.

Additionally, high female representation in hard-hit industries like healthcare, hospitality, retail and tourism, the role of women as caregivers and the compounding effect of the gender pay gap have meant that women have borne the brunt of the global pandemic.

A study conducted by Boston Consulting Group and Singapore’s Infocomm Media Development Authority indicates the tech sector is making progress in diversity, but advances must continue to accelerate as women make up 28 per cent of the sector workforce worldwide. South-East Asia (SEA) is leading the change where women account for 32 per cent of tech talent in this sector.

While 32 per cent might seem significant, in reality, only a small percentage of SEA tech startups have female Founders or Co-Founders. It’s the same in the US, women make up 17-20 per cent of CIOs in large companies and 27 per cent of IT managerial roles.

The tech talent crisis

Research has shown that women place a higher value on careers that involve helping and working with other people, collaboration and problem-solving. This perhaps explains why women are drawn to tech, engineering, and STEM careers and the higher salaries these roles pay.

Studies indicate that there is a growing awareness that action must be taken on gender diversity within technology companies. While women’s participation in science, technology, engineering, and mathematics (STEM) education has been increasing, the gender gap remains high, meaning suitably skilled women technology workers are not entering the sector.

Also Read: Gina Romero’s quest of unchaining women through AI and digital tasks

This skills shortage is particularly noticeable in the field of cybersecurity, where cyber-attacks and threats are becoming more frequent and detrimental. According to the (ISC)² Cybersecurity Global Workforce Study 2021, there are 2.7 million unfilled cybersecurity positions worldwide. The (ISC)² also estimates that three-quarters of cybersecurity professionals are still men.

Considering a cyberattack could potentially disable the economy and critical infrastructure of a city, state or entire country, this is one sector that requires an injection of talent to defend networks and improve cyber resilience. Cybercrime is expected to cost the world US$10.5 trillion annually by 2025. Threat actors and hackers know the sector is globally understaffed and underprepared.

What can organisations do?

By encouraging and increasing the number of women we recruit into technology and cybersecurity fields, we can harness the power of a more diversified workforce in this industry to help combat mounting cybercrime.

Cybersecurity is akin to medicine with generalists and specialists. Until now, the field of cybersecurity has focussed more on the technical side with roles requiring specialist technical expertise.

Organisations should be looking to attract or retain more women in tech (in this case, specifically cyber), which pays higher salaries and will, in turn, reduce the gender pay gap.

Also Read: Women of Web3: Top women contributors tell us all we need to know about Web3

Research proves diverse teams perform better. Individuals from different ages, backgrounds and genders provide different perspectives, which ultimately drive innovative solutions. Cybercriminals also have a wide variety of backgrounds and experiences, the wider variety of people with broad experience working in this space, the better our chances of improving our cybersecurity posture.

Look for women with transferrable skills outside the IT department

What’s missing is the expertise that can be found outside the IT department. Expertise such as organisational change management, learning and development, business intelligence, stakeholder management, communication, situational awareness, emotional intelligence and business partnerships, to name a few.

Pay women fairly and promote women

Before looking outside for talent to complement the existing IT department, companies should be looking within. The abovementioned skills can be found among employees already working in areas such as Human Resources, Communications, and Marketing.

Provide women with training and clear career paths

Many women already working in STEM face distinct barriers to succeeding in the field, including a lack of mentorship, role models and training. There is bias in the workplace, with only 24 per cent of women working in cybersecurity. There is also a huge gap in women in leadership positions within cybersecurity. On more than one occasion, I have seen women who are as capable as their male peers (sometimes with more experience than them) be overlooked for leadership roles.

Businesses have a role to play in ensuring that as well as being paid equally, women are equally represented in leadership positions, are supported in their work lives, and there are fair policies, flexibility and parental leave.

Partner with educational institutions to mentor women early in their careers

There needs to be a concerted effort to make technology and cybersecurity professions more enticing to young women and girls to help address the gender balance.

STEM must become more available to girls early in their school curriculum, and cybersecurity needs to become more accessible. The latter requires more understanding and opportunity at a grassroots level to not only level the gender playing field but to address a rapidly growing skills gap.

One thing we can do as women in the industry is to mentor young women early in their careers, which makes access to the industry more inclusive and far less daunting. This is necessary not only to make women feel like the technology industry is a good fit for them but to give them more confidence when it comes to salary and role negotiations.

Women are increasingly finding their footing in the technology sector, but there remain legacy issues that should be dealt with today to eliminate gender from every conversation.

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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

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The post Why it’s time to hit ‘refresh’ when it comes to addressing the gender diversity gap in the IT sector appeared first on e27.

Every worthwhile project starts with a problem to be solved.

You identify something that could be improved. You realise nobody has done it before you, or at least, nobody’s done it well enough.

When you’re driven forward by a concrete issue you want to resolve, it gives you a sense of clarity. You adapt and innovate, you pay attention to the details, and you know exactly what success and failure mean to you.

To do good work, you need good tools

Years ago, I Co-Founded Pronto Marketing, a digital marketing company. I used to be in charge of our customer service and production teams.

At Pronto, we used Zendesk to share CSAT and NPS surveys with our customers. But the data we received through these surveys was functionally useless.

Our CSAT (customer satisfaction) score was around 99 per cent. That sounds impressive, but it didn’t match up with reality. Our customer service was far from perfect. People just weren’t motivated to give us more information. When they were unhappy, they cancelled instead.

Also Read: What we can learn from the first Malaysian founder on NYSE, Foong Chee Mun

Without good feedback, Pronto was stuck. We wanted to improve the quality of our service, but we didn’t know what we needed to work on.

We also had a problem with our NPS (net promoter score) feedback. We’d manually send out emails asking customers whether they’d recommend our company to others. It took our team way too much time to send these out and then process the responses. Our normal operation was halted every time we collected NPS data.

We needed better ways to gather and process customer feedback. And it needed to be an automated, effortless part of our workflow.

We tried a few existing customer feedback tools, but they weren’t getting the job done. Some were overpriced and had a steep learning curve. Others came with a host of new problems.

My team and I decided to do something challenging but worthwhile. We would build a new feedback management tool to solve our needs. So, we created Simplesat.

You know your needs better than anyone else does

Even before Simplesat took off as a company, my team and I had a clear list of goals.

We wanted to build a survey tool that would:

• Encourage respondents to give honest and detailed feedback
• Centralise customer feedback data and make it easy to examine segment and share
• Make it effortless to respond to customer feedback very quickly (before frustrated customers decide to cancel their subscription)

It took us a ton of research and experimentation to build a tool we were satisfied with.

After reading David Willemsen’s The Measurement of Customer Satisfaction, we decided to use the SERVQUAL model for measuring customer service along multiple axes. Multi-question surveys proved essential in getting past the problem of high but uninformative rating scores. Customers are willing to share how they really feel if they receive the right questions with the right timing.

We knew from personal experience that design was crucial for engagement. We looked at animations and video games while prototyping our survey designs, and we also took inspiration from Tinder’s swipe feature. Simplesat surveys had to be eye-catching, friendly, and straightforward – everything we liked to see as customers! 

We also made them customisable from the get-go. As a brand evolves and branches out, its customer feedback surveys need to change too.

When we developed Simplesat’s dashboard, the keyword was simplicity. We made sure that the data was easy to visualize. In addition to our charts and leaderboards, we made it effortless to retrieve individual pieces of feedback and create filters. Sometimes, it’s necessary to drill down on specific problems to get the whole picture. We knew how frustrating it could be to work from half-remembered feedback comments.

Also Read: A guide on the go-to-market models that startups use

All in all, our feedback management tool was built to solve problems, not create new ones. And we soon found out that there was a need for that in the market.

Sharing the solution with the world

Pronto’s clients loved filling out the new surveys. They started asking if they could use them with their own customers. Simplesat split off from Pronto and became a company in its own right.

Since then, we have improved the product based on the needs of our clients. 

That meant a paradigm shift to a service-oriented approach. We had the bare bones of an excellent product, but we still needed to make sure that all of Simplesat’s customers could use it with intuitive ease. We wanted to give them the same peace of mind that we built for ourselves.

Some of the things we had to work on:

• Improved UI
• More survey types – we added CES surveys as we went along
• Integrations with other tools
• Quick responses to customer suggestions and complaints

Our team grew, and we made sure we had a robust customer support system in place. We did our best to remain flexible and open to changes. We made some mistakes. It was possible to remedy these quickly because we kept close track of customer sentiment. 

The team’s main motivation remained the same as always. 

We believe that customer feedback needs to form the basis of all big decisions, that it takes effort to get good data, and that feedback should never be wasted. 

With this philosophy, growth was relatively painless for Simplesat. Our clients did some of the work for us, telling us what their pain points were. We kept listening, as we’d once been in their shoes. We remembered what it was like to see customer feedback as a burden rather than an opportunity.

Don’t let your spark fizzle out

I know it’s not easy for new businesses to stay on track. Leaders and teams alike may lose motivation, and chaos is inevitable in the early days. Optimism isn’t always enough to keep a project going.

My main advice to entrepreneurs is this: harness the power of your frustration.

Listen to your customers, accept ideas from your team, but always keep the core problem top of mind. That’s what should drive you forward. It will give you answers when everything else seems vague or negotiable.

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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: Canva Pro

The post Tips on building your startup out of that spark of frustration   appeared first on e27.

Southeast Asia’s online shopping and rewards platform ShopBack has signed an agreement with Temasek-backed 65 Equity Partners to raise US$80 million.

The announcement follows an earlier US$80 million tranche led by Asia Partners in July 2022, bringing the total capital raised in the Series F round to US$160 million.

The completion of the raise is subject to customary regulatory approvals.

Following the investment, 65 Equity Partners will join ShopBack’s Board of Directors and directly support its public readiness efforts.

The fresh infusion will help ShopBack grow its platform across the Asia Pacific region. The capital will also be used to launch new shopping products for users, develop growth and payments solutions for merchant partners, extend its services to more markets, and build capabilities for public market readiness.

Also Read: ShopBack acquires hoolah to strengthen ‘buy now, pay later’ offerings in Asia Pacific

Henry Chan, Co-Founder and CEO of ShopBack, said: “Over the coming months, we will be rolling out features that will enhance the shopping experience for our users, while to our merchant partners, we remain a trusted growth partner, delivering cost-effective marketing solutions to support their growth aspirations.”

Established in 2014, ShopBack offers many shopping deals, rewards and payment methods at the users’ fingertips.  The platform claims to serve over 35 million shoppers across ten markets.

The company said it powers over US$3.5 billion in annual sales for over 10,000 online and in-store merchant partners.  It has a presence in Singapore, Malaysia, Indonesia, the Philippines, Thailand, Taiwan, and Hong Kong.

The group has advanced product innovation and regional expansion this year. In January, it launched ShopBack Pay for its 2 million users in Singapore and Australia to check out conveniently at more than 3,000 merchant outlets.

In November 2021, ShopBack acquired the buy-now-pay-later company hoolah for an undisclosed amount as part of its foray into financial services. A year earlier, it bought South Korea’s largest online cashback platform Ebates Jorea from Japanese e-commerce giant Rakuten, a backer of ShopBack’s US$45 million funding round in 2019.

“This investment aligns strategically with our mandate of supporting high-growth businesses led by founders and entrepreneurs in their continued business development, as well as facilitating their potential listings on the Singapore Exchange,” said Tan Chong Lee, CEO of 65 Equity Partners.

ShopBack also recently strengthened its management bench to spearhead its growth efforts, bringing on board CTO San Oo from communications giant Slack Technologies, Commercial MD Alessio Romeni, formerly CRO of Zalora, and Global Accounts MD Alexander Yardley, who previously headed up commercial leadership roles at Agoda and eBay.

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Echelon 2022 aims to provide intimate and focused discussions on key topics and business matching services to facilitate business-driven connections during the two-day event. e27 will curate and invite key stakeholders of startups, investors, corporates, and ecosystem enablers to drive towards fruitful business outcomes at Echelon.

The 2022 Echelon edition will be co-located with SWITCH at Resorts World Sentosa from 27 to 28 October 2022. Learn more here. 

The post ShopBack adds US$80M into its Series F kitty from Temasek’s 65 Equity Partners appeared first on e27.

While there are only eight years left to decelerate the impacts of climate change, the world is yet to absorb the enormity of the crisis fully. Shockingly, less than 10,000 of the 400 million companies are measuring their carbon emissions globally. Grace Sai and her team started Unravel Carbon in 2022 to bring a transformation.

Based in Singapore, Unravel Carbon helps companies track and reduce their carbon emissions, specialising in Scope 3, focusing on Asia-Pacific. (Scope 3 emissions are the result of activities from assets not owned or controlled by the reporting organisation but that the organisation indirectly impacts in its value chain)

An AI-powered decarbonisation platform, Unravel Carbon converts any company’s accounting data into full supply chain carbon data in seconds, provides detailed emissions analytics, generates climate solutions, and auto-populates regulatory disclosure reports. It serves companies within the food & agriculture, tech, fashion & footwear, and built environment sectors — which account for more than 60 per cent of global carbon emissions.

We recently interviewed Grace Sai, who spoke about climate change, the company’s resolve to tackle it, and the climate tech space. She also talked about the significance of offline events like Echelon Asia 2022, where she will speak about climate change.

Why are climate-tech solutions like Unravel Carbon’s crucial in this era?

The Asia-Pacific region is responsible for 60 per cent of global emissions, and we house 70 per cent of supply chains worldwide. The burden of responsibility is on us, but many companies who want to take action have to go through the rigmarole of manual data collection. This process takes six to nine months and typically involves external consultants.

Unravel Carbon converts accounting data into carbon data in seconds. We want to make decarbonising painless — by switching around the effort/impact ratio, companies can now use their time on what really matters — implementing strategies to reduce their emissions.

Also Read: ‘Economic crises become less important when investing with a longer-term mindset’: Qin En Looi

Climate tech solutions are critical to enabling accelerated and aggressive action to limit global warming. We have a mission to decarbonise 1 Gt CO2-e by 2030, totalling 5 per cent of global carbon reduction goals. The power of computing makes this possible and is crucial, especially in an era of climate emergency.

While many companies are now emerging in climate tech, the space is yet to get its due attention. Is it because the world hasn’t fully realised the magnitude of the problem?

Public awareness of climate change has increased in recent years, especially with the rise of intense climate-related disasters. Regardless of whether society acknowledges it, the impacts are already at our doorsteps and felt by many.

I’ve observed that while there has been an increase in companies setting net zero targets, the urgency in achieving these climate goals is lacking — 40 per cent of them don’t even have a target year to achieve these commitments yet.

With the era of pledges behind us, the next critical decade must focus on pathways. Platforms like Unravel Carbon suggest these pathways and keep companies accountable for achieving them.

The amount of funds flowing into this space is also relatively low…

The investment focus for climate tech has seen significant growth in recent years in terms of fund allocations. We were told that we had raised the largest seed round for a climate tech platform in Asia’s history. The Y Combinator cohort we were part of (W22) had the most climate tech companies in YC’s history. Paul Graham, the founder of YC, even tweeted about that.

There are multiple reasons here, but we love the coming together for regulatory and personal reasons. Inflexion points happen when a multitude of motivations come together at the same time. It may take decades to reach there, but once that is reached, it accelerates in impact and magnitude. We believe climate tech is just at that inflexion point.

Also Read: ‘Events like Echelon are important during tough times because there’s strength in unity’

Emerging regulations such as the EU’s Sustainable Finance Disclosure Regulation (SFDR) catalyses companies and investors to revise their business strategies. Similarly, under the US Securities and Exchange Commission’s (SEC) March 2022 climate-related rule proposal, public companies must disclose their Scope 3 emissions. Thousands of companies have now made pledges to net zero or set science-based targets.

There is, however, still a lot of room for growth — according to estimates from BNEF and McKinsey, to reach net zero by 2050, the world will have to invest anywhere from US$3 trillion to US$9 trillion per year on average. Following this, we can expect climate tech investment figures to increase exponentially in the coming years.

As per a Bloomberg report of August 2022, carbon and climate startups have attracted record investments at a time when other industries are struggling to tap funds from venture capitalists. Buoyed by corporate and government pledges to cut greenhouse gas emissions, a record US$1.4 billion poured into climate and carbon-focused startups in the second quarter of this year. 

How can companies like Unravel Carbon and VCs collaborate with governments to educate the market?

Companies like ours bring the power of digitalisation to solving the climate crisis —primarily in the lack of data and good user interfaces for companies, both large and small, to be part of the solution.

In many countries, governments can be powerful in driving digital adoption through their fiscal and legislative policies. The government also has the most expansive reach when it comes to the millions of SMEs that constitute a significant component of most economies. Governments working with the private sector represent the best of both worlds. They can represent a robust working model to educate the market that can affect real change amongst businesses on the importance of addressing climate change.

This public-private engagement model would marry the tools, know-how, and mission of a company like Unravel Carbon, with the reach and policymaking power of the government. VCs would play a powerful enabling role where their capital would provide the firepower needed to scale the deployment of climate tech solutions through the broader economy.

What is the role of governments here?

Presently, 140 countries have announced or are considering net zero targets, so we will see increases in climate legislation in the coming years as governments start applying pressure through regulation or policymaking. For example, implementing carbon taxes, setting standards or bans, introducing subsidies or public finance mechanisms, and green infrastructure investment.

This will drive accountability in the private sector as governments signal clear expectations and eliminate any ambiguity that might lead to inaction.

Why are offline events like Echelon important in tough times like economic slow-down? What do you expect from the event?

Offline events are a key component of a vibrant and healthy startup ecosystem. Not only do they propagate valuable thought leadership and ideas to the startup community at large, but these events provide a crucial avenue for networking and collaboration between entrepreneurs, investors, mentors, corporates, and other stakeholders.

Also Read: Nothing can truly replace the offline element of community building: Yinglan Tan

During tough times, increased connectivity within the ecosystem from face-to-face engagement can create significant economic value. These events are also versatile in offering multiple value offerings to different stakeholders.

For example, we hope the event will give Unravel Carbon more visibility amongst attendees, as greater awareness about our primary product positively impacts our vision and mission.

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Echelon 2022 aims to provide intimate and focused discussions on key topics and business matching services to facilitate business-driven connections during the two-day event. e27 will curate and invite key stakeholders of startups, investors, corporates, and ecosystem enablers to drive towards fruitful business outcomes at Echelon. 

Here’s the full list of the speakers for the 2022 edition, which will be co-located with SWITCH at Resorts World Sentosa from 27 to 28 October 2022. Learn more here. 

The post ‘There’s a lack of urgency among companies in achieving net zero targets’: Unravel Carbon’s Grace Sai appeared first on e27.

Bizbaz, a Singapore-headquartered customer intelligence and risk assessment company, announced that it had closed a US$4 million seed funding round led by HSBC Asset Management (HSBC AM).

This round also received investment from Vynn Capital, a Southeast Asian venture capital firm specialising in early-stage tech startups; new angel investors; and follow-on investments from SOSV and existing angel investors.

“Most financial institutions and financial technology companies still use outdated financial-history based credit risk systems. Our solutions analyse all financial and non-financial data, which have meaningful impact on risk assessment for loans, insurance and other financial services. The new funds will accelerate development of new solutions and better support our growing client base of financial institutions and fintechs in Asia, Africa and beyond,” said Hayk Hakobyan, CEO and Co-founder of Bizbaz, in a press statement.

Bizbaz aims to empower financial services providers by offering them comprehensive customer intelligence and risk assessment solutions. This will enable these organisations to acquire and serve unbanked and underbanked populations in the region while also reducing their costs.

Also Read: Customer service agents are feeling burned out, how can we help them?

The solutions combine insights from applied behavioural sciences, anthropology, and machine learning technologies.

Financial-history-based credit bureau scoring as a means of assessing a person’s risk became a mainstream technology used by financial institutions in the late 1970s. According to Bizbaz, this made sense at that time as the only digital data available about the person was their bank-account-related records, if such existed.

Remi Bourrette, Head of Venture Investments, HSBC Asset Management, explains the firm’s decision to invest in Bizbaz.

“In ASEAN, the middle class is expected to more than double between now and 2030, to reach 334 million people. Financial services will likely expand at the same pace, if not faster. Our investment in Bizbaz provides a compelling exposure to this market shift in the region and other developing economies. It will support the development of its technology, which overcomes the major obstacle of onboarding clients with no previous financial records,” Bourrette said.

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Startup investments in the Asia Pacific (APAC) region in 2022 are not expected to exceed the record-high US$193.7 billion pulled in last year, according to a July report by KPMG and HSBC. Certain sectors are facing more bearish sentiments, such as the previously hot-ticket crypto sector, which has slowed its roll following the crypto crisis and global headwinds in May this year.

Against the backdrop of weaker sentiments and a capital downturn in 2022-2023, investors are understandably pivoting to focus more on profitable and sustainable growth. Here are three considerations for startups to better navigate uncertain times to achieve quality growth.

Understand your market fit

It sounds simple, but a key part of deciding where your startup best lands on the profitability-growth continuum are truly understanding your competition and your target audiences. Convosight is a community creator monetisation platform that was formed in the heat of the pandemic in early 2020 in Delhi. The timing was opportune as lockdowns made online communities a ripe target for fast-moving consumer goods (FMCG) brands. Two years later, over 500 million members from over 50,000 communities in 75 countries use Convosight.

Co-Founder and CEO Tamanna Dhamija said, “Being first movers, much of our time early on was spent educating the market. On the demand side, we told brands the importance of online communities and how consumers are shifting to online spaces like Facebook or Reddit. Supply-side: we upskilled and trained community creators to sustain their communities and run campaigns, which adds value to brands.”

In comparison, Funding Societies/Modalku, which began as an alternative lender in 2015, was in the middle of the P2P wave that swept Asia between 2013 and 2018. Today, the Singaporean startup is Southeast Asia’s largest SME digital financing platform, a product of zigging while competitors zagged and understood subtle differences in the SME financing landscape between markets in Southeast Asia, China, and the US.

Funding Societies/Modalku’s Co-Founder and Group CEO Kelvin Teo said, “We intentionally made certain choices that differed from our peers. First, we prioritised compliance and regulations, while other foreign players indexed on growth. Second, we decided to become a one-stop shop for financing, went regional and invested in technology and data ahead of other players. These minute choices to deviate from the norm have enabled us to become a market leader over time.”

Meanwhile, Singapore-based digital verification startup Accredify is dodging the funding slowdown affecting other blockchain startups by understanding and serving its target audiences. CEO and Co-Founder Quah Zheng Wei said, “2020 and 2021 were excellent years for Web3 startups. However, the current process of obtaining Web3 funding is longer. Instead of talking about blockchain, we explain the unique benefits of what our technology, TrustTech, can do for clients in document and identity lifecycle management and verification. Uniquely, we’ve not been that affected by the drop in the Web3 funding cycle.”

Also Read: Avoiding costly mistakes: How cognitive biases can affect entrepreneurs

Today, Accredify counts on the public and education sectors as big growth drivers. In Singapore, it assists the Ministry of Health in digitising COVID-19 medical records to allow the ease of authenticating discharge memos, test results, and vaccination records. Due to the slowdown in COVID-19 testing, Accredify is exploring further opportunities in the healthcare industry, such as verifiable medical insurance claims.

Having started out in the education space in Singapore, Accredify made Australia its second market. Accredify’s decentralised mechanism helps educational institutions verify certificates, transcripts, and other qualifications frictionlessly. This mechanism allows Accredify to scale quickly and export its education solution to new markets very easily.

Let your stage inform your metrics

As startups progress from seed to early-stage and then growth and late-stage funding, they must continuously recalibrate between profitability and growth. Funding Societies/Modalku, which raised a US$144M Series C+ round led by SoftBank Vision Fund 2 in February, is passing the growth stage.

For Teo, this means giving almost equal attention to profitability and growth compared to the early days, when the scale was prioritised. The turning point was after 2018 when the revelation of WeWork’s losses saw a pivot towards profitability. “Our sense was that funding sentiments would eventually change, and we wanted to take control of our destiny, especially when there’s a funding gap in Southeast Asia for Series B-C rounds. Therefore, we made a choice of changing gears to profitability,” he recounted.

To better align with profit-focused investors, Funding Societies/Modalku’s profit and loss (P&L) statements have breakdowns between existing and new businesses. Teo explained, “For existing businesses, we prefer to break down to product unit economics. Though not strictly accurate, the numbers you get here are vital in giving you direction and guidance. For instance, our financing business is approaching profitability, while more experimental business units are consuming resources. Splitting them allows us to set expectations for when each unit can become profitable.”

Accredify, meanwhile, is still very much an early-stage startup, having wrapped up a US$2M round led by Qualgro in September 2021. Though the scale is the focus now, Quah believes Accredify’s high unit economics acts as a lever they can use to turn profitable.

“Around 50-55 per cent of our spending is on R&D, so we are building products for the future, either for our existing clients or products that can help us get new clients. At any point, we can flip that switch and be profitable. It does not make sense now at our current stage, but that option is always in the back pocket, giving us a strong bargaining position with clients, partners, and investors,” he said.

Also Read: Why we cannot talk of diversity without inclusion

Meanwhile, Convosight has been profitable since its founding, so the focus now is on growth and cash flows. Key metrics include burn ratio and cash flows. “We are getting into channel partnerships and hiring, which means there might be a small margin dent. Before taking this step, we stress-tested all our numbers while focusing on cash collection and ensuring that we had two years’ worth of Cash in the Bank. We want to figure out ways to shorten the cash collection cycle because eventually, it is profitability in terms of cash flows,” Dhamija said.

Always see the bigger picture

Whether it’s facing a once-in-a-century pandemic or a weakened capital environment with hesitant investors, both Dhamija and Teo took stock of different perspectives to make critical business decisions.

For Convosight, keeping a pulse on community sentiment throughout COVID-19’s various waves in India was essential. While the first wave saw large hygiene brands marketing within online communities resulting in massive demand for Convosight, the second wave was a different story.

Dhamija recounted, “It was the worst time ever, and very different from the first wave. We were amid due diligence in April 2021 and decided to halt all community marketing campaigns, even if brands wanted to run them. We told our incoming investors that we would have zero revenue as it was not right to run ads in this climate. We had to take care of our consumers and team. We were worried about scaring off new investors, but the deal went through smoothly,” she said. Convosight closed it’s US$9M Series A led by Qualgro in June 2021.

Over in Singapore, when the first wave of COVID-19 hit in 2020, Funding Societies/Modalku spoke to every economist, investor, and analyst it could get hold of to pre-empt the market.

Teo recounted, “Considering the expected growth of the market and our cost structure at the time, we realised that every company would have to rightsize. We made the painful decision to rightsize ahead of others, to protect team members so they can find (new) employers earlier. It was very painful, immediate growth slowed down, and investors panicked. In the medium term, the team became more united and resilient. They saw that we were making the right decisions.”

The results bore these out: In 2020, Funding Societies/Modalku reduced its operational costs and cash burn by 50 per cent while keeping its default rate below two per cent.

Final thoughts

If founders are still unsure about their own profitability/growth trade-off dilemma, Teo advises erring on the side of caution: prioritising profitability and lower valuations.

“The risk is asymmetric. If you’re too profitable, you can still live to fight another day. If you left money on the valuation table, you can come back and claim it in the next round when you have better financial results. Conversely, if your valuation is too high, your down round risk will be massive. If you run out of money, you are dead in the water.”

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Cosmart, an Indonesia-based membership-driven e-commerce platform for essential goods, has secured US$5 million in oversubscribed seed funding from Lightspeed, East Ventures, and Vertex Ventures SEA & India.

Angel investors Henry Hendrawan and Albert Lucius also joined.

The firm will use the money to step up hiring and invest in breakthrough technology. “We will deploy the funds to strengthen our technology and data infrastructure further, build a world-class team, and strong partnerships with principals and key players in the supply chain ecosystem,” said Cosmart Founder and CEO Alvin Kumarga.

Also Read: How e-commerce businesses can unlock growth using alternative funding

Founded in 2022 by Kumarga and Robert Tan, Cosmart is a one-stop solution for users to purchase their monthly recurring needs. Users pay a small amount to become a Cosmart member, after which they get access to high-quality products at competitive prices, among other membership benefits.

The startup leverages technology to make it easier for users to discover, explore and select new brands and products.

Since its inception, Cosmart claims to have delivered over 100,000 products and grown its volumes by 6x in the past three months.

The company has already partnered with over 80+ principals and 500+ brands and has thousands of SKUs in stock across ten core categories.

Pachara (Pinn) Lawjindakul, Partner at Lightspeed, said, “Today’s consumer is always looking out for the best deals and lowest prices on their monthly household recurring needs. Cosmart works endlessly to provide its members access to unmatched savings, an increased repertoire of brand and product selection and most importantly, an enhanced customer service experience. We foresee strong loyalty for the brand and offering they’re bringing to the market.”

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Echelon 2022 aims to provide intimate and focused discussions on key topics and business matching services to facilitate business-driven connections during the two-day event. e27 will curate and invite key stakeholders of startups, investors, corporates, and ecosystem enablers to drive towards fruitful business outcomes at Echelon.

The 2022 Echelon edition will be co-located with SWITCH at Resorts World Sentosa from 27 to 28 October 2022. Learn more here. 

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