While Chinese electric vehicle firms made their first overseas push in Europe, they may find more long-term potential and profits in developing nations of the Global South. Conditions are enticing for sales of Chinese vehicles in developed countries, and its markets such as Southeast Asia and Africa that could provide the engine for lasting success.

Since automobiles have traditionally been seen as a globally connected sector, China has been attracting foreign carmakers into its export strategy to absorb larger parts of electric vehicle global value chains. The country gradually relaxed joint venture requirements to make it more appealing to foreign automakers, boosting the nation’s car part exports.

But this is just a half of China’s overarching strategy to supercharge the sector. As stated by Gregor Sebastian, an analyst at Mercator Institute for China Studies, in his post last September, the country does not look to only serve as a critical supplier of new energy vehicles. It also wants to groom national champions into global champions, electric car brands that perform feats globally.

This is urging Chinese startups to mull over their effective internationalisation paths.

Internationalisation strategies for Chinese electric vehicle startups

Previous studies often suggested that innovative Chinese enterprises prefer developing countries to developed countries when opting for internationalisation destinations as they can leverage their cost advantages. This seems not to be true in the field of electric vehicles.

Chinese startups, including NIO and Xpeng, decided to export their full-fledged electric cars first to developed markets such as Europe and the U.S. This is because these firms need to consider other market factors such as reasonable infrastructure availability, notable state subsidies, and proper income level of people to make sure that their internationalisation strategy works.

“All this naturally means that Western Europe becomes an attractive market for anyone taking electric vehicles,” said Kartik Gopal, a global electric vehicle industry specialist at the International Finance Corporation (IFC), a part of the World Bank Group.

That example represents the first common internationalisation strategy: export the whole car. Sam Olsen, a Singapore-based Co-Founder of the strategic consultancy MetisAsia and a commentator on Chinese-Western relations, brought up other strategies for electric vehicle startups.

Also Read: Carsome acquires majority stake in Singapore’s CarTimes Automobile

One is to control the technology and connectivity platform. Another is to dominate the electric vehicle portions, particularly crucial sections.

“I think that it’s much more likely China will make a lot of money from electric vehicles lately, but the way they will do it in the developed world is by dominating the car parts industry,” said Olsen.

Those, however, are just a part of the big picture. When it comes to scaling up globally, there is always a need for a supporting ecosystem. The next challenge is how to finance these technologies, how to make cars more cost-effective, and how to build those electric vehicle infrastructures?

“I think fundamentally the core technology know-how has now matured, and therefore the next is about scale-up, which attracts capital,” said Gopal. “Subsidies are promoting electric vehicles, but the next hurdle is that when people want to buy, many of them want loans on these, but the financial institutions are a bit hesitant. That’s the gap.”

He further explained that banks still find it quite challenging to finance electric vehicles today because it is still unknown technology with no resale markets. This issue is not unique to China. It also happens in India, Indonesia, Thailand, and many other Asian markets, lowering the speed of firms’ market acquisition and expansion.

Technical standardisation comes as the next profound problem, especially when various vehicle types and market sectors are looking to transition to electrified transport as quickly as possible.

“The U.S., China, Europe, and Japan, all have their standards. There used to be local certifications for every market you’re playing, and it’s extremely important,” stated Simon Hou, CEO and Co-Founder of XCharge, an electric car charging pile developer based in Beijing.

“We want to adapt to every single market certification to ensure that we provide the most qualified and the best product.”

In each market, XCharge has to carefully review its specific standard and develop an R&D team dedicating a lot of time to understand standards, implement procedures, roll out testing and obtain certifications.

All in all, the two forces working hand in hand are regulatory bodies encouraging the standardisation of all the different components and market pressure that requires standards to be applied as quickly as possible.

“We have to deal with challenges around interoperability of technology for both fleets and private customers,” said Nadur of bp Ventures. “It’s imperative then for the industry actors to find the right standard that enables that affordable, clean, and reliable transition.”

“The pressure is to ensure that this energy transition essentially leaves no one behind,” she added.

Europe comes as the first stop

In the developing new energy vehicle industry, Chinese carmakers, particularly electric ones, are mostly eyeing the European market for improved brand awareness, as reported by Yicai Global.

Chinese manufacturers of electric vehicles are establishing local operations in Europe to build up respectable brands on the continent. For example, Great Wall Motors and Lynk & Co have formed European entities that handle research and development, sales, and management activities.

Also Read: China’s mounting economic problems are a cautionary tale for western markets

SIn Shanghai, SAIC Motor has also launched four electric vehicles in Europe and started to record fruitful results. Last year, the firm sold 21,000 MG models, a threefold increase over the previous year.

As Europe has always been heavy in terms of net-zero obligations, electric vehicle buyers in those countries can benefit from high subsidies and a comparatively well-developed charging network. This enables a more open mindset when it comes to deciding to experiment with a new electric vehicle brand for daily use.

China’s automakers also have government support to master European safety ratings, allowing firms to build innovative products and deliver them quickly to the end-users.

But the most competitive edge that Chinese brands have over Volkswagen, BMW, and other European brands is, perhaps, China’s ability to provide mobile apps and a supporting digital ecosystem to service global buyers and keep them up to date with developments of their electric vehicles.

XCharge, a China-based innovative charging solution provider with an office in German, underlines its unique selling point as having charging products that are “well-connected with the device and well-managed on the backend; of a service platform.”

NIO, a Chinese multinational automotive company headquartered in Shanghai, also opened a few showrooms in Europe that are contemporary and well-branded to pique people’s curiosity and offer pick-up and delivery services and mobile servicing. This is different from the direct sales model of Tesla or the car dealership network in Europe.

“They [Chinese electric vehicle startups] are trying to bring over the existing sales strategies from China into the European markets,” said Sebastian. “I think they need to make sure that they use their strength, but they also need to make sure that they don’t just copy what has worked in the China market and not adapted to local consumers.”

This strategy, for the time being, needs more time to validate itself.

During the globalisation process of Chinese electric vehicle firms in developed markets, another concerning problem may be the high-quality maintenance and customer support requirements of end-users, as stated by Li Bo, Ventures Principal and General Manager of Shell Ventures Company Limited, which invested in XCharge in 2021.

“A startup typically lacks the resources and enthusiasm to address so many areas, and spreading the firm too thin might lead to unanticipated issues,” she said.

Southeast Asia to be a lucrative supply chain partner

As China and the ASEAN share geographic proximity, the two sides have naturally built long‑term bilateral trade relationships over decades, and we’re expanding rapidly as their economies flourish.

“Southeast Asia is going to be an excellent market, most likely for China’s electric vehicle manufacturers,” said Sam Olsen.

Since 2009, mainland China has become ASEAN’s largest trading partner, with the total value of trade in goods in 2020 amounting to US$516.9 billion, accounting for 24.7 per cent of the region’s foreign trade. As these trade activities ramp up, the ASEAN market is also among the top destinations for China’s outward foreign direct investment, with six ASEAN countries in the top 20 by the end of 2020, according to the Statistical Bulletin of China’s Outward Foreign Direct Investment.

This implies that China is likely to invest in electric vehicle infrastructure for this region to support its internationalisation strategy, especially when the whole car-making industry in these countries has yet to develop.

“If they [Chinese firms] know that they can sell electric vehicles in millions of units, this is a very good business investment,” Olsen added.

In February 2020, China’s Great Wall Motor took over GM’s auto facility in Rayong, Thailand, and announced last year that it was ready to launch electric vehicle models in the country. A few days ago, Chinese carmaker Wuling also launched its locally-assembled Wuling EV in Indonesia, taking advantage of the archipelago’s incentive programme to ramp up vehicle electrification.

In April this year, China’s battery giant CATL also teamed up with Indonesia’s state-owned groups to build a nearly US$6 billion battery complex. Previously, China has been known for its momentous investments in the archipelago’s nickel, copper, and other ores utilised in electric vehicle production.

Once the infrastructure is set up, the vehicle form comes as the top concern for a successful Chinese electric vehicle expansion in the region. While four-wheelers are being sold predominantly in developed markets such as Europe, in developing markets such as India, Southeast Asia, or Africa, two-wheelers, and in some cases, three-wheelers, are more prevalent.

Also Read: Grab, Hyundai launches their first electric vehicle service in Indonesia

“Of course, challenges are infrastructure and people’s ability to buy,” said Gopal. “But you also need to create unique battery packs or different data for a motor solution and make it suitable for those markets.”

This means core technologies also need to adapt to create uniquely suited products for each market. For instance, in Europe, carmakers have to deal with cold conditions to keep the battery bombs. But in Asian markets, they need to figure out how to keep a battery cool when it is even 45 degrees outside.

Local policies also add to the mix, potentially attracting products to come into a particular market. For instance, electric vehicles imported from China enjoy zero per cent import tariffs in Thailand under a bilateral agreement between the two countries. It makes Thailand a particularly appealing market for Chinese electric vehicle exports in the region.

Some might think of SEA countries would rather build their homegrown electric vehicle champions, but experts see that this is not likely to come to fruition.

“I think we’ll find it very expensive for any Southeast Asian country that wants to build a car,” added Olsen. “There isn’t a domestic manufacturer; there’s no real domestic experience creating cars in ASEAN.”

Look at Thai electric vehicle firms as an example. Thailand’s Vera Automotive developed a battery electric vehicle called V1 but produced them in large quantity in China by Geely before exporting them back to Thailand. While the firm is Thai, production is established outside of the country, mostly due to the gigantic cost of entering automobile manufacturing.

But from another perspective, Southeast Asian countries can instead look at this sector and answer whether or not they can involve in the component manufacturing, if not the full vehicle production.

For example, Indonesia has a significant number of nickel mines that are used in lithium-ion battery production. The archipelago may want to exploit that not just to supply electric vehicle manufacturing in Indonesia, but also to export that to other markets in the region.

“It’s not the same as going to European countries where there is a lot of hostility and distrust of China,” said Olsen. “There are many people [in Southeast Asia] happy to do business with China. This going to be very successful.”

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Mighty Jaxx, phygital collectibles company in Singapore, has acquired Kinetiquettes, a statue collectible firm, and PLAYe, a specialised direct-to-consumer platform of consoles, video games, collectibles, and action figures.

The deals are worth multi-million dollars, Mighty Jaxx said in a statement.

The announcement, following its recent over US$20 million Series A+ funding, is part of Mighty Jaxx’s growth strategy to extend its capabilities in and beyond the future of collectibles. The startup has raised over US$40 million to date.

Kinetiquettes and PLAYe will continue to operate independently while actively collaborating under the umbrella of Mighty Jaxx’s management. The deals will allow all the three companies to collaboratively evolve, develop better technical expertise, and increase product offerings.

“The physical collectible has always been our core business. While that will not go away, the intention is to take what we have and amplify it digitally and phygitally. The acquisition of Kinetiquettes and PLAYe moves us closer to our creative vision of working towards connecting all our fandoms onto the MightyVerse,” said Jackson Aw, Founder and CEO at Mighty Jaxx.

Also Read: Mighty Jaxx raised US$10M in a Tencent-led round to grow its designer toys and collectibles biz

“We are looking to develop real-life experiences, the MightyVerse, digital collectibles and work towards a true hybrid phygital offering via our platform that will reimagine the full-experiential journey for all fans and create value for them,” he added.

Kinetiquettes works with renowned video game and anime publishers, such as Capcom, SNK, and Crunchyroll, and collaborates with top artists and sculptors. It will offer opportunities for Mighty Jaxx to develop a new product. Kinetiquettes will bring cult gaming IPs like Capcom’s Street Fighter, Monster Hunter, SNK’s King of Fighters, Arc System Work’s Guilty Gear and the wildly popular anime titles Attack on Titan and My Hero Academia.

At the same time, PLAYe is a specialised DTC platform for video games, action figures, trading cards, and collectibles. As an authorised channel for Sony Playstation, Nintendo, and Xbox, PLAYe breaks the barrier between online and offline geek shopping, providing thousands of games, collectibles and action figures to its legions of fans.

The PLAYe acquisition offers an opportunity to leverage its DTC channels. Its established B2B network in the world of pop culture will greatly enhance the visibility of Mighty Jaxx products in stores and supplement PLAYe’s offerings to create and complement a bigger community of avid game enthusiasts and collectors.

Founded in 2012, Mighty Jaxx designs and produces digital and phygital collectibles in partnership with individuals and brands such as Netflix, Formula 1, Hasbro, Toei Animation, Cartoon Network, Nickelodeon, Warner Brothers, Adidas. It claims to ship millions of phygital collectibles to over 80 countries worldwide yearly.

Also Read: What lessons can crypto investors draw from the Luna, UST episode?

It is building an integrated platform to empower future pop-culture brands with the end-to-end supply chain of collectibles, including artist development and incubation, proprietary IP operation, and providing global consumer access with new retail.

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Kristal.AI has made a mark in key markets in the Asia Pacific with its wide range of product offerings catering to high net-worth individuals as well as first-time investors looking for a seamless digital wealth management experience. Their curated marketplace of investment products has been hugely popular with their customer base and they are looking to expand their Private Markets offerings to two new verticals — private markets solutions like ESOP liquidity solution and Kristal Managed Funds like Pre-IPO and early-stage fund.

Manmohan Mall, Head of Private Markets & Family Office at Kristal.AI, remarked that investors with a portfolio in the $1-5 million USD range don’t get the same level of access and advisory services in traditional private banks as bigger institutional investors do. “Kristal is able to help our clients make investment portfolio decisions with its unique mix of hybrid human-led advisory capability and machine-led processes and structure,” he added.

In the private markets vertical, Kristal is looking to establish its presence by offering investments in startups with its largest markets, in terms of end investment, in companies based in the US and India. Mall said that the company is very open to opportunities across their client segment of accredited investors.

Kristal Private Markets (KPM)

KPM specialises in providing investment access in high-quality private companies to investors who are looking to diversify their portfolios beyond traditional investment avenues. Their access to pre-IPO companies and high-growth startups enables investment access to privately-owned companies at a much lower minimum investment size. Through its ESOP liquidity service and primary fundraising capability, it now aims to also provide a wide range of solutions to private companies to help them manage their capital requirements.

“Kristal Private Market uses various public and private databases, market studies, and industry sources to derive relevant and required information on the asset. The investment thesis is shared in a consumable manner to aid investor education and enable informed decision-making,” pointed out Mall.

Kristal.AI’s Private Market launched over 15 private market deals last year, facilitating investments in a wide range of private deals in high-growth companies across sectors such as Stock Exchange, EdTech, FinTech, Crypto, FoodTech, Neo-banks, and more. It also provided access to some difficult-to-access companies like SpaceX as well as newly minted Asian unicorns and businesses like Thrasio, Byju’s, Udemy, Dunzo, Synoption, Stockal, and many more.

“The SpaceX name stands out because of Elon Musk’s visibility and it was challenging to get the transaction access for our investors. A lot of people want access and the ability to invest in SpaceX and we were able to get access and execute the investment opportunity so it was a big win for us,” Mall commented.

He added that the complex structure of the deal means they had to gain access through a slightly more complex investment structure and they are currently working to get on to the cap table and give more direct exposure to their investors.

Private markets have seen significant growth in the last decade, explained Mall, and he believes the participation is a lot wider today with more and more individual investors ready to explore these opportunities. The explosive growth over the last 4-5 years has seen Kristal take advantage of the innovation and wealth creation happening in these markets to bring private-sector assets to their investor base.

“We have come across some fantastic deals,” he says, remarking that “We have seen a Grab or a Gojek or a Byju’s having performed and grown.” Last year, there was a handful of unicorns in India but today the market has touched hundreds of unicorns in less than a year,” pointed out Mall. He admits that every asset class would have gone through a bit of correction in the last few months but at Kristal, “we see private deals as a great opportunity for the discerning investor who strongly believes in this asset class.”

Also read: JTC bolsters Southeast Asian innovation through LaunchPad

In line with the correction the public market has seen, private markets have also faced this correction and market momentum. To this, Mall had an interesting opinion, “In such a market condition, there are opportunities to come in at a better price point. It is a great opportunity for a discerning investor to come at a more attractive valuation. We as a platform are witnessing more negotiating power in this situation on the price point with the sellers. Hence, overall it looks like this is a buyers’ market now. But now it requires a lot more work to convince investors that this is the best time to diversify into the alternative space of private markets.”

The key aspect driving their growth, believes Mall, is that Kristal’s platform helps democratise these investment products. A typical PE hedge fund deal comes in at a ticket size above $5 million USD. Investors on their platform can get opportunities at smaller ticket sizes depending on the transaction. “Investment in any big or large private company, depending on the deal size, is typically available at a minimum ticket size of $25kUSD. We have even enabled smaller investment sizes like $10k USD,” remarked Mall.

The only constraint is how well their technology can handle the volumes, Mall explained. “We have added our very strong advisory aspect to this because typically, the availability of information is limited on private companies. The team tries to analyse deals by working with founders and investors and make the information available in formats so that investors have an opportunity to understand and dig deep into these companies,” he explained.

He believes their engagement model gives them a very strong differentiation in the private wealth management space. “You do have similar platforms in the US but this level of advisory capability is not there. This kind of asset class is usually looked at by institutions but our Private Markets team does all that research and provides advice,” he continued.

Kristal.AI unveils ESOP liquidity as a solution for private companies; completed  $1 million worth of exercise for its own employees

Their investor base includes B2C client segments of mass affluents who qualify under the regulatory definition of Accredited Investors, and the growing B2B2C segment of wealth managers, boutique investment firms, and financial advisors looking to provide their client base in India access to high-quality private market opportunities. This segment represents a large opportunity for Kristal, Mall believes.

In the corporate segment, they are looking to provide liquidity-related solutions for early to late-stage private companies that are the relevant client base for KPM.

Mall pointed out that “Earlier startups took 4 to 5 years to have an exit but now, the time frame has increased to over 10 years. Thus, the ability to provide liquidity increases significantly for companies. Wealth needs a channel to convert it into cash,” added Mall. “Based on preliminary discussions with companies, there is a lot of excitement on the possibilities.”

Kristal.AI has announced an ESOP liquidity programme for their own employees as Kristal’s team believes their company is the perfect candidate to test out their ESOP liquidity programme. It plans to roll out the ESOP Liquidity programme as a service to companies that are looking to provide liquidity options to their employees and early investors.

Mall explained, “A lot of wealth has been created by these companies for their earliest employees and founders including a sizable amount in ESOPs. But this wealth is not liquid to a large extent, so if these people want to buy a house, etc., it becomes difficult to cash out the wealth they have in the form of ESOPs. Hence, there is a need to provide such ESOP liquidity exercises at regular intervals.

Also read: Top 5G Startups in 2022 Announced

“As the company grows, the ESOP value grows — so if companies can provide liquidity along with that it becomes a very attractive option for these employees. It’s a real dollar value to the wealth creation and we provide a solution working with companies to provide liquidity,” he explained.

The next couple of years will see the company making a lot of efforts to participate in primary fundraising for these subsegments. Refining and marking the ESOP liquidity solutions will be very critical for many companies in startup ecosystems, Mall believes. “Soon people will start questioning cash vs ESOPs; if they can convert it into cash, it will be a major breakthrough for companies to retain people.”

The order placement process for ESOPs exercise is executed on a private blockchain, built and owned by Kristal.AI. The transaction is recorded on the blockchain for credibility and security, the company said. “The ability to execute on a private exchange would make it more credible, and once it scales, will become more valuable. Now, the focus will be on taking it to other companies in key markets like India and Singapore,” Mall remarked.

“Stakeholders in an unlisted company no longer have to wait for the company to go public or for a major investor to come in. With Kristal’s ESOP liquidity service, early phase to late-stage companies would be able to provide easy liquidity solutions to their employees or shareholders without cluttering their cap table,” said Asheesh Chanda, Founder and CEO of Kristal.AI.

The company claims that overall demand for investing in its platform exceeded the total supply of shares within 10 days of launch. The company had announced an ESOP liquidity programme worth over $1 million (Rs 7.5 crore) for former and existing employees. It plans to conduct such exercises every year to facilitate wealth creation opportunities for both the existing and former staff.

Moving to fund-based offerings

Apart from the ESOP liquidity service, they plan to focus on two opportunities to offer in a fund format — a diversified portfolio. Mall said they “are looking to launch couples of funds focused on Seed, Series A level to late/pre-IPO stage  companies.”

These are the Pre-IPO Fund (Evolve Fund): A Pre-IPO fund, investing in growth to late/pre-IPO stage. And their Shark Fund focuses on high conviction ideas from Seed to Series A companies with strong fundamentals.

Kristal plans to launch these funds in the next few months. “This would be of interest to a segment of our investors who might not want to take single exposure,” Mall explained. “What really differentiates is the strong advisory role we are able to attach to the offering — you will always be able to find the right investment through us,” he added.

Also read: SAP expands innovation initiatives in Southeast Asia

Mall said they are eager to get started with fund-based offerings since they’ve got some strong anchor demand from investors, and they believe they can fine-tune the funds depending on the opportunities and marketplace.

“Proper digital wealth management on an app is something very unique from an Asian perspective,” believes Mall. Their go-to-market strategy in a market like India is where Kristal teams up with wealth advisors to provide a plug-and-play solution with their technology.

“We are the tech platform that will fit into a private bank or wealth management firm.” That is what gives the real power and potential growth for our startup,” he added. “What we have to offer is quite unique in many ways and that’s why we see a great demand for both models.“

Kristal.AI is currently in discussions about a Series B funding round.

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Photo by Tima Miroshnichenko

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This article is produced by the e27 team, sponsored by Krstal.AI

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Traveloka fuels up with US$200M after failed SPAC merger
The company has said that it is still committed to going public after halting its talks with Bridgetown Holdings; Traveloka has garnered a total of US$1.2B from its past investments.

Temasek allocates US$3.6B for eco-friendly investments
It has launched GenZero, an investment platform committed to global decarbonisation; It will offer capital to companies from the early to mature stages under three areas: tech-based solutions, nature-based solutions, and carbon ecosystem enablers.

Carro buys 50% of Indonesian car rental firm MPMRent
MPMRent is the rental unit of Indonesia-based automotive group Mitra Pinasthika Mustika; Aside from having a fleet of more than 13K cars, MPMRent also provides financing services for its customers.

Animoca Brands investments valued at over US$1.5B
It has made more than 340 deals as of April; The company recently led funding rounds in companies, including content production service Gusto Collective, gaming studio Untamed Planet, and Our Happy Company, a social commerce firm.

Alpha JWC, Emtek co-lead Indonesian culinary startup Mangkokku’s US$7M Series A round
Mangkokku operates 50 branches and serves 4M+ bowls annually via its online and offline channels with dozens of permanent and seasonal menus; The startup currently operates 50 branches across several cities.

Dagangan raises US$6.6M to develop new financial services, expand national reach
Investors are Sumitomo Mitsui Banking, Monk’s Hill Ventures, and Payfazz CEO Hendra Kwik. Dagangan is an e-commerce platform that provides same-day and next-day delivery for a variety of household needs.

East Ventures-backed IDN Media secures Series D funding
Investors are Mayapada Group, KMIF, OCBC NISP Ventura, Dentsu Group, and V Media Ventures; IDN Media operates sites including IDN Times, Popbela.com, Popmama.com, Yummy, IDN Creative, IDN Event, and a creator platform called Indonesia Creators Economy.

Ant Group soft launches digibank in Singapore
Anext Bank will be led by Toh Su Mei, a former executive of DBS Bank; Anext Bank will focus on providing digital financial services to local and regional MSMEs, especially those that engage in cross-border operations.

Binance Labs invests in PancakeSwap’s token
PancakeSwap is a decentralized exchange built on BNB Smart Chain; With daily active users hovering above 400K, it is also among the biggest DApps on Binance’s blockchain network.

Australian city mulls accepting Bitcoin for tax payments
Gold Coast Mayor Tom Tate said the move is a signal to the younger generation that the city is innovative, noting that the volatility of Bitcoin’s value is not that bad; El Salvador was the first country to approve Bitcoin as an official currency.

Vietnamese customer data firm PrimeData raises seed funding from VIISA
PrimeData helps businesses collect data, set up user databases, and create customer segmentation to develop personalized sales strategies; Its products target retailers, real estate developers, and payment companies, among others.

GoTo Group adopts Gojek’s sustainability initiative
As part of its first focus, Zero Emissions, GoTo Group looks to convert 100% of its fleet to e-vehicles and achieve zero greenhouse gas emissions by 2030; Meanwhile, the company said it generates 335K metric tons of waste annually.

Lazada replaces its group CEO
The e-commerce giant has appointed James Dong as its new group CEO with immediate effect; He replaces Chun Li, who has helmed the company since July 2020.

Temasek-backed crypto exchange FTX launches in Japan
The firm’s operations in the country will be handled by Quoine Corporation, which was acquired by FTX earlier this year and renamed as FTX Japan; FTX offers a trading platform for cryptocurrency and other assets such as prediction markets, options, and volatility products.

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I spent about 12 days in Jakarta, Indonesia last month, meeting tech founders, investors, executives and operators. Here is a first-hand account and highlights which may be useful for you to know.

Market sentiment

Most people, matching the global sentiment, are plain worried. Everyone understands the funding party of 2021 is over.

Founders have a lot of questions about what they can expect when they go out to raise. Is the market going to be back up in three, six or 12 months?

Companies which were planning to raise in the short-term, are now in a tight spot and looking to shareholders to bridge the gap while companies which recently raised are breathing a sigh of relief. Most are focusing on conserving cash and directing their efforts on proving their business’ sustainable unit economics.

Investors are increasingly herding and hesitant to do non-consensus deals. “Winter is coming” is echoed around SCBD. Such statements are catchy and resonate deeply with people but do not give any sort of clarity to founders and amplify worries about an “abstract winter” i.e., we don’t know what’s going to happen but it’s going to be bad.

Yet, some investors remain optimistic, perhaps rightly so:

• The economy is strong. Indonesia’s economy is stable and growing, with five per cent YoY growth in Q1 2022, partly spurred by commodity prices and partly by a pick up in private consumption.
• Attractive entry prices. Funding winter has brought valuations to earth so if you are an investor with capital to deploy, you can enter great businesses and get a nifty return when wider capital inflows pick up again.
• Strong will thrive. Portfolio companies with strong fundamentals will come out of this downturn stronger i.e., when the debris clears, competitors with weaker fundamentals would have slowed down or shut down.

Real problems, real solutions

Funding winter or not, real problems need to be solved for Indonesians and builders to continue to build effective solutions. For example:

• Quality education access leads to increased global competitiveness (Co Learn, Binar Academy).
• Digital payments penetration and transaction data mapping lead to credit access for the traditionally unbanked (Xendit, BukuWarung).
• Bringing insurance to the new age to promote well-being and productivity of an increasingly diverse/younger workforce (Aman, Oktolife).
• Empowering micro-entrepreneurs to make a decent living (BintanGo, Super).
• Bringing down extremely high transport costs to unlock personal savings/investments (Swoopmove).

For the sake of brevity, I have only given a select few examples covering select sectors. We will be releasing comprehensive sector deep dives later this year.

Investor ecosystem

The local venture capital ecosystem is increasingly self-sufficient (at least for the early-stage rounds) with leading funds such as East Ventures, AC Ventures, MDI Ventures, Trihill Capital, Alpha JWC, Skystar Capital and Intudo Ventures together managing over US$2 billion. Many of them have recently closed new bumper funds and are deploying consistently, albeit in a slightly more paced manner.

Also Read: Funding roundup: SG’s KILDE raises US$350K, East Ventures backs Indonesia’s Riliv

There is a general acceptance that international investors especially ones who have not operated in SE Asia for long and don’t have feet on the ground will pull back for now which leads to a concern of a growth-stage funding gap opening up.

Recent transactions (see Xendit, KitaLulus, Astro) would prove otherwise but there are perhaps exceptions or rather a legacy factor at play i.e., announcements are usually three-four months behind deal closure, do expect a few more announcements of US$50 million+ rounds in the next month or so.

Notwithstanding, some international investors who have been entrenched in the SE Asia ecosystem for long, especially ones with new SE Asia-focused funds or evergreen setups, are looking very opportunistically at the market and we see them maintaining or even picking up the pace which positions them primely given the growth stage supply-demand mismatch.

Where are the Chinese? Historically active Chinese VCs in SEA, have been relatively quiet in recent times. However, it is understood there are some new entrants in the market and are looking to establish an on-ground presence in Indonesia. Plus India not being a very open market for Chinese investors, makes Indonesia a net benefactor.

Korean and Japanese investors, although never the dominant set, seem to be plugging away with deals here and there.

Middle Eastern investors have a significant amount of capital committed to Indonesia but mostly via the LP route, backing local VCs, rather than investing directly (for the moment).

Public markets and exits

The crown jewel of Indonesia, GoTo, has fared poorly on the IDX, the market cap has plunged 25 per cent since listing on 11 April 2022. To be fair, there are some knock-on effects from the global market crash, but GoTo will have to readjust to the new reality quickly and start delivering on its promise for its own sake but also for its peers.

To be noted the local listing was most likely a precursor to the eventual US listing but we can expect a delay to those plans. Some other notable tech or tech-related listed companies on IDX like Bukalapak and Bank Neo Commerce (Akulaku-backed) have not done well either.

However, making IDX into a reliable listing option for tech companies is a priority for the government, in the longer term, IDX can become a major listing destination in SE Asia for sub $1b tech companies and a secondary listing destination for larger Indonesian unicorns subject to an establishing an initial track record.

In terms of tech M&A activity in Indonesia, we see more volumes coming through in the medium-term, taking buyer inquiries as a leading indicator. Especially when we look at the micro (US$1-10 million), small (US$10-50 million) and medium (US$50-200 million) size transactions, a lot of companies have done well growing their businesses.

But at the same time have reached the end of the runway in terms of scale, expertise and stamina while big players (potential acquirers) are running away with an unassailable lead, most of the capital is likely to gravitate to these supposed winners given their growth prospects, organisational depth/breadth and expansion ambitions.

SEA expansion

Indonesian companies with unicorn ambitions are looking at neighbouring markets for growth as their domestic serviceable obtainable market saturates.

Also Read: This family office has launched a startup accelerator with a mission to protect, restore biodiversity in SEA

Already, we see large Indonesian tech companies establish a corporate executive base in Singapore, using it as a launchpad into other markets as so many Singapore-based tech companies have done before.

Partly driving this are its shareholders i.e., the Indonesia-first funds (some mentioned before) which have raised significant growth capital and need to deploy across more markets to keep delivering returns, from a capital efficiency pov, having a portfolio grow is relatively easier and synergistic than investing in fresh companies in new markets.

The subtle Indian influence

Operating in both markets of India and Indonesia, I can’t help but notice the similarities in terms of demographics, consumer behaviour and outlook which drive similar business models and value propositions, with Indonesia following India’s example, perhaps two-three years out.

Another peculiar thing I noticed while talking to early-stage founders is how they increasingly referenced Indian unicorns when describing what they’re building.

For example, X for Indonesia, the X often being a bigger Indian tech company. It is a bellwether of the increased capital, company and people flow between the two countries, a bridge we certainly wish to help build in the coming years.

People impact is already prevalent via Indian-origin founders, who seem to be doing quite well for themselves, having built some of the leading tech companies in Indonesia such as Ula, BukuWarung and Co Learn, to name a few.

Signing off

Indonesia is better positioned than ever, despite the current global downturn, relative to a lot of its peers in terms of market dynamics, self-sufficiency, local capital base, government support, and its position in international geopolitics.

Most of all, it is great to see so many strong companies being built by an ever-increasing base of super talented founders and tech execs. I am betting on them to endure this interim blip of a funding winter and thrive through and after.

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The main function of insurance is to ensure a smooth cashless claim settlement or reimbursement along with key product features, but is the sector doing enough to help the insurers?

India’s healthcare sector stood at US$160 billion in 2017, and it is estimated to reach up to US$372 billion in 2022, according to Statista. India’s healthcare market, without a doubt, is now one of the largest sectors in terms of revenue and employment as the industry continues to grow at a rapid speed.

From Long Turnaround Time (LAT) to submitting truckloads of paperwork, from long lines at TPAs (third-party administrators) to pestering doctors to issue another letter for a claim, a health insurance claim often leaves one frustrated. It is not surprising then that ‘claims’ has become a differentiating factor for most providers in the market. 

Insurance providers need to get smarter and move beyond risk remediation to create partnerships with their customers and mitigate risks. With the scope of the market expanding and maturing, lesser capital, new entrants and increasing competition, and tech-enabled customers, insurance companies need to reinvent the whole cycle of how they service their customers.

A ‘claim’ is crucial to the retention of the customer and the company’s growth, given that it might be the only touchpoint between a consumer and the insurance provider.

Also Read: Why India needs to improve access to instant healthcare solutions

Here are the challenges that need to be addressed:

Multi-channel seamless experience

With COVID-19 pushing for digital adaptability, the Indian consumer is increasingly becoming platform-agonistic, beyond metros as well. Technologies such as artificial intelligence, big data analytics, and blockchain can help transform IT systems for the insurance provider.

Insurance providers need to adopt AI-powered platforms to help agents market the right policy, set up virtual branches, and then provide a seamless experience when settling claims.

According to IBM, two years before the pandemic in 2018, only 12 per cent of insurance executives reported prioritising true digital transformation, moving toward entirely digitised data and processes, with intelligent workflows spanning systems across the insurer and ecosystem partners.

This number is expected to jump to 64 per cent by 2022. The data that the insurance company receives from the prospective client can help it create a seamless and personalised offering for the person.

Risk concierge

Risk concierge helps boost business value at multiple levels. By moving from being just a seller, insurance companies need to become companions by acting as a concierge for their health needs.

Essentially, a risk concierge finds out what a customer wants and provides what they need at every step of their health insurance, from buying one to hand-holding the insurer through their insurance cycle.

It should be able to assess risks, provide recommendations, and schedule health check-up appointments in case of impending risk to a person’s well-being. For a risk concierge to work well, the company would need to invest heavily in cloud, AI and connected technologies such as the Internet of Things (IoT). 

A concierge helps address the health risk of an insured individual holistically, leading to better loyalty from the consumer and creating a true competitive advantage in the over-crowded insurance market, which is inundated with new products and players every day.

It is imperative to move from traditional health insurance providers to an emerging concierge, especially in the Indian market.

Going cashless

Digital claims can increase customer satisfaction scores by 20 per cent, reduce claims expenses by 25-30 per cent, and improve claim handling accuracy, by reducing both overpayments and underpayments, according to McKinsey.

However, a cashless process can only work if the insurer is fully digitally-covered, ensuring end-to-end digitisation of the claims journey. 

Multi-channel FNOL (first notice of loss), automated claims segmentation, and digital claims status tracking are some of the digital processes that an insurance company can adopt.

Servicing the non-digital natives

However, since many people still don’t have credit cards or cannot use digital payment modes, overreliance on IT might undermine customer experience in the most important moments of a customer’s journey. Hence, insurers need to balance the integration of automation with differentiating personal services. 

Also Read: Shaping the future of healthcare with smart hospitals

While most Indian consumers are increasingly moving online, the category called baby boomers (born between 1946 and 1964) is still struggling with many aspects of technology. This category is the one that needs the claim assistance the most, and thanks to their age, they need to visit the hospital quite regularly.

For a consumer, who is not a digital native, it is imperative for insurance providers to preserve the human touch in insurance claims transformations. The answer would be to balance both aspects, IT and human approach, to provide a holistic experience. 

Communication

Do your communication channels for next-gen customers, and baby boomers line up with customer preferences? With young customers preferring full-service apps or non-selling direct outreach through affinity and community groups, many people need that hand-holding through each step.

As a health-insurance provider, is your communication segmented based on these preferences? 

Moreover, insurers should look at providing services that add value for and delight customers. Based on customer feedback, it should continually improve service offerings, usability, and performance.

This value proposition is usually an underestimated element of a digital transformation. Still, it adds much more value than just introducing newer products in the healthcare insurance market in the longer run.

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Despite facing overcapacity issues during its formative years, China’s electric vehicle industry has become a magnet for investment within China and worldwide.

VCs are betting big that China will become a major profit centre for global alternative fuel vehicle production, even with the inevitable shakeout and consolidation that is sure to come over the next decade.

Various Chinese startups have announced their ambitions to attract foreign buyers beyond the Chinese borders. In 2021, Chinese electric vehicle startup Aiways forged ahead with its plan to export up to 10,000 vehicles annually in Belgium, Denmark, and Israel.

Xiaopeng Motors (XPeng) is exporting its G3i electric SUV to Europe. Foreign brands such as Tesla and BMW’s successfully exporting “Made in China” electric cars to other markets has also made it a boon to the internationalisation vision of various local players.

The state of Chinese electric vehicle startups

Local electric vehicle startups have mushroomed in the country. Around 500 electric vehicle startups had been established in China by 2019, including some 300 electric vehicle makers. The number of new Chinese firms connected to “new energy vehicles” even increased by 81,000 until mid-August last year, marking up the total to over 321,000, according to Qichacha.

“I’ve been in this industry for 30 years, and in the last couple of years, I’ve seen more change in the automotive industry than I have in the previous 28 years,” said Sam Olsen, Singapore-based Co-Founder of the strategic consultancy MetisAsia and a commentator on Chinese-Western relations.

“You’re in the middle of a very quickly changing industry and therefore, it’s not surprising that lots of Chinese startups are going to be looking at automotive.”

Given the potential, Chinese manufacturers are struggling with capacity issues as sales of non-fossil fuel vehicles lag behind production potential. According to the China Association of Automobile Manufacturers, the new energy vehicle (NEV) sector was only operating at five per cent capacity by the end of 2020.

It had the capacity to build 26.7 million NEVs but only sold 1.4 million. Even worse, only 89 out of the 300 NEV manufacturers actually produce vehicles. Data from Crunchbase also show that 88 cities (out of 655 cities as of 2016) in China are home to at least one electric vehicle startup.

China’s minister for industry and information technology Xiao Yaqing said in September 2021 that the country’s electric vehicle firms are “mostly small and scattered” and in dire need of consolidation.

Since 2017, China has attempted to reduce overcapacity; however, its efforts strumbled in April 2020. For fear that the COVID-19 outbreak might spell the end of its world-leading electric-car sector, Beijing has continued to make it easier for ambitious NEV manufacturers to enter the market.

The same is true at the municipal level. Local governments have supported investments and subsidised local enterprises to prevent bankruptcy regardless of consumer demands. For example, Nanjing provided subsidies to keep Chinese-German all-EV automotive brand Byton afloat for years.

This is because the regional government and political leaders’ career prospects are often tied to regional economic growth, and provinces rely on company taxes to supplement their overall income. In a more aggressive push, provincial authorities even encourage local automakers to expand overseas in order to ramp up economic growth in their areas.

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

“There are a lot of production sites that are currently unused, partly because we have startups, but also major companies like Xiaomi or Evergrande that actually invest a lot of money into these production capacities but actually have not been selling cars yet,” said Gregor Sebastian, an analyst at Mercator Institute for China Studies. “This is a huge drain of money while China is also tackling all sorts of other problems.”

This posed a threat to the future of those “redundant” electric vehicle firms. At the moment, Xpeng, and NIO are the big names within the electric vehicle startup community. But many smaller ones that most people haven’t heard about are not making any profits. The question is what is going to happen with them in two years when the government cuts down on subsidies?

As the subsidies are phased out, and Beijing recognises that it now has a handful of its businesses selling 10,000 vehicles each month, electric vehicles may fall farther down the priority list in terms of pure investment. According to reports, the National Development and Reform Commission is working on legislation for the NEV industry, including minimum production-capacity utilisation rates for provinces and stiffer regulations for approving new projects.

The previous subsidies have given ground for the emergence of Chinese carmakers in literally all segments, which, is also complicating the competition landscape with both domestic and international players.

NIO, the Chinese electric vehicle champion, is striving to foray into high value-added luxury segments of the NEV sector, which was largely dominated by German brands like Audi or Mercedes Benz. But this company has not only been facing stiff competition with international carmakers joining the game but also suffering from competition with other local startups vying for market share.

“This fragmentation is hurting really big startups,” added Sebastian. “I don’t think they [other small electric vehicle companies] are definitely going to succeed. But as long as government subsidies fuel this fragmentation, this is also hurting them in some way.”

Chinese electric vehicle industry catches the fancy of global investors

A large amount of funding in the world today is flowing toward renewable energy. Energy transition investment hit half a trillion dollars for the first time in 2020, according to clean energy analysts BloombergNEF.

BNEF said that the world invested momentous amounts in low-carbon assets, from renewables to cleaner transport, energy storage to electric heat. Among those, companies, governments, and households put US$139 billion of investments into electric vehicles and associated charging infrastructure. This is up 28 per cent versus the previous year and is a new record.

The impetus for climate financing going into electric vehicles is obvious as transportation accounts for around one-fifth of overall greenhouse gas emissions, making it one of the main drivers of climate change.

The UN agency even warned in a 2014 report that seven million deaths each year in the world are due to tiny particulates from cars, power plants, and other sources.

“While they can’t do the job alone, electric vehicles have an indispensable role to play in reaching net-zero emissions worldwide,” Fatih Birol, executive director of the IEA, noted in the Global EV Outlook 2021 report.

The less obvious driver is attributed to the emergence of acceptable and affordable technologies for electric vehicle products and solutions, which gives investors room for a higher return prospect. To illustrate, the price of an electric vehicle battery had dropped from US$1,100 per kWh in 2010 to only US$137 per kWh in 2020 or even as low as US$100 per kWh in China, according to IEA’s report.

“With the evolution of lithium-ion batteries, the price is coming down. Also, the improvements in the electronics and powertrains products that are acceptable in performance for regular users have become available,” said Gopal.

Per data compiled by the author of this article, as of February 2022, the total funding into around 200 Chinese electric vehicle startups listed on Crunchbase amounted to US$39.75 billion, including the highest-funded electric vehicle startups such as WM Motor (US$5.3 billion), NIO (US$5.4 billion), Xpeng (US$4.5 billion) and Li Auto (US$1.2 billion).

This illustrates the strength of China’s venture capital market, which is second only to the US worldwide. However, for early-stage capital, most of it is still coming from local sources, according to data compiled by Ross Brown and Augusto Rocha.

Also Read: How electric mobility startups are tackling climate change in Asia

“Traditionally, the most money that goes into Chinese startups is Chinese money,” said Sam Olsen. “A lot of firms find it very difficult to agree to invest in China because they’re worried about political issues.”

Take the Huawei problem as an example; as one of the largest telecom suppliers in China and the world, the Trump administration cracked down on Huawei Technologies amid the U.S.-China trade war in 2019.

The firm was unable to purchase U.S.-made chips or use US machinery and software for its productions. Countries including New Zealand, Australia, and Japan even crossed out Huawei from their 5G plans.

However, in the face of the overcrowded electric vehicle startup picture and complex political landscape, international investors bet on the Chinese electric vehicle industry in a different way. They focus on state-of-the-art technologies in other niches such as public transit, battery, and charging solutions. Besides, there is also a huge interest from the Chinese government and investors looking at autonomous vehicles, LIDAR systems, and chips.

“There are a lot of startups who are trying to build premium, popular products. NIO, for example. I think that is certain niche areas where potentially even high-risk capital funding can come in,” Gregor said.

For example, some of the world’s biggest oil companies, including BP and Shell, are seeking investments in new low-carbon technologies to reduce their dependence on fossil fuels. They bolster their venture capital arms and keep a close eye on the Chinese tech startup market.

In July 2018, BP invested US$10 million in the NIO Capital US Dollar Fund to together explore opportunities in China’s NEV ecosystem.

In 2019, bp Ventures sealed a deal with PowerShare, a startup providing integrated hardware and software solutions for electric vehicle charging in China; PowerShare connects electric vehicle drivers, charge point operators, and power supply through the platforms, improving the charging experience by locating a charge point to paying for the power supply.

The VC also made a minority investment in Publisher, a Chinese startup with an innovative digital software stack that enables charging to private vehicles and fleets.

“We are not only investing in new forms of charging infrastructure or developing new electric vehicle charging hubs, but we are also investing in technologies which will simply make that transition much easier,” Sophia Nadur, managing partner at new energy-focused venture capital firm bp Ventures, stated in a Climatic talk show.

“In the area of battery technology, we are actively looking at companies that will support the delivery of ultra-fast charging options for customers and fleets.”

In the case of Shell Ventures, the VC firm joined the Series B funding round of Beijing-based XCharge, a cutting-edge electric vehicle charging solution supplier that provides customisable “one-stop” charging services to allow more successful business models.

Since 2015, the startup has deployed more than 35,000 chargers, dispensing over 20 GWh of power per month to roughly 120 electric vehicle models in Asia-Pacific and Europe. Apart from Shell, XCharge also received a strategic investment from Samsung.

A prospect for internationalisation

Driven by hyper-competition and globalisation, startups that develop their business around a new technological platform are more and more influenced by the complexity of markets, capital, industries, suppliers, and technologies.

Therefore, technology firms need to be innovative in developing their business models, but they are also required to internationalise fast and instantaneously from inception. This urges them to go international and adopt appropriate management tools with a systemic view of the firm and its environment.

XCharge, for example, decided to foray into European markets in its early days and achieved significant milestones. The innovative electric vehicle charging solution provider had an office in Hamburg, Germany for three years and will probably have branches set up in the US.

“A lot of companies become successful and then they go global, but we are in the case where we start the global business from the beginning,” said Simon Hou, CEO and Co-Founder of XCharge. “It’s a new way of building a business that is working.”

Following this path, Hou and his colleagues built a globalised team resulting in more global investors and businesses worldwide. He emphasised that China now has a talent base that is ready to make international brands. Hou himself was also an ex-employee at Tesla (China) and Mercedes Benz (Beijing).

Also Read: Thinking out loud: Are electric vehicles as sustainable as we believe?

“If you look at car manufacturers, it’s always been international in every country. But the thing exciting about the electric vehicle business is that new entrants have opportunities and our customers are very open-minded in terms of taking new ideas and new things,” added Hou.

“China’s probably the largest automotive market globally, so you would expect to see some brands in that market. I think it’s a natural development pattern, and some will become successful.”

However, the automotive market is very brand-driven, especially for personal cars. Certain brands have built up a brand value over several decades, and that is hard to beat. In the twentieth century, automotive technology was dominated by three major geographical blocks.

They were the Japanese, the Europeans, and the Americans. Therefore, it would not be an easy game for Chinese brands to make their mark in the global market.

“It will be a harder climb for an unknown brand,” said Gopal. “But these are not one- or two-year kind of stories, companies are here to play this game for decades and we should look at how they build out their brand over time.”

To give a very concrete example, in the 1980s, Hyundai Excel, Korea’s first entrant to the US market, was not very well respected. They were considered poor quality and low reliability, though they could compete on price.

This, however, made ways for Korean brands to adjust themselves, which led to Hyundai’s heavy investments in manufacturing quality, design, and long-term research and development since 1998. According to JD Power and Associates, it is very well regarded for quality, which was even tied with Honda and second only to Toyota by 2004.

“I think it remains to be seen as to how the different brands from different countries evolved,” stated Gopal. “You also have to keep in mind that the existing players are not going to sit quietly and just let somebody else come and take their market share.”

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Vietnamese blockchain gaming guild Ancient8 said today it has completed a US$6 million private financing round led by Makers Fund and C² Ventures.

Existing and new investors, including Pantera Capital, 6th Man Ventures, IOSG Ventures, Folius Ventures, Morningstar Ventures, Th3ia Capital, Sky9 Capital, and Play Ventures, also joined.

Ancient8 will use the money to accelerate the development of the infrastructure for GameFi and the metaverse by building the next generation of software products, community, and guild. Ancient8 will also develop several GameFi infrastructure software products.

Founded in July 2021, Ancient8 builds software to create infrastructure for GameFi. It helps GameFi studios identify high-quality gamers and run Web3-native targeted advertising through the Ancient8 GameFi Identity product and Launchpads.

At the same time, the firm helps gamers and crypto communities create their GameFi identity profile, track and showcase their achievements in Web3, discover high-quality blockchain games, access guild scholarships, and learn about blockchain more effectively.

Also Read: These 21 Web3 startups prove why Vietnam is world’s most surprising crypto hotspot

According to a press statement, the startup has built an active community of 200,000+ members and manages a blockchain gaming guild in Vietnam with 3,500+ scholars. Besides, it has partnered with 25+ top GameFi projects, including Axie Infinity, CyBall, Phantom Galaxies, Bigtime, Tatsumeeko, Delysium, Blast Royale, Apeiron, and Angelic.

“We will continue to expand our product offerings, partner with more innovative projects and games, and grow our influence and reach with a large global community,” said Howard Xu, Co-Founder of Ancient8.

In the coming months, Ancient8 will launch a GameFi Identity product and a pair of GameFi Token and NFT Launchpads designed to enhance the go-to-market strategy of Web3 games. Ancient8 will use these products to connect top blockchain games with its deeply engaged global community of GameFi enthusiasts and enable users to enjoy the most intuitive experience possible in the world of Web3.

In January this year, Ancient8 attracted US$4 million in a seed funding round co-led by VC funds Dragonfly Capital, Pantera Capital, and Hashed.

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Today’s digital world is filled with opportunities for abundant business growth. But the abundance of opportunities creates a lot of noise making it harder for brands to stand out online.

That’s why building positive brand equity can help brands gain traffic to their content, have more successful launches, gain press attention, and be able to charge more premium prices. But how do you build that kind of brand reputation?

Brand equity is built on brand awareness, trust, and the brand’s digital footprint. It is the perception of a brand and can have a positive or negative perceived value.

A great way to think about brand equity is, the value a brand gives. How can a brand stand out and offer more value, especially in this competitive digital age?

Focus on individuality and bring the whole person to work

One of the main issues when it comes to branding is conformity. Especially when someone is working to build a personal brand. There are so many great examples of brands to use for inspiration but there is also far too much copying. 

It’s no surprise as we are taught to conform. But success in branding actually comes from our individuality and our stories. Businesses and individuals building online brands need to think about what “secret ingredients” they have to offer. It is often diversity that makes a company successful. Creativity comes from diverse ideas and backgrounds. It comes from brainstorming and throwing out different opinions. 

Building positive brand equity in today’s digital world is about a brand coming into alignment with purpose. Everything about a person’s individuality can influence the brand. Think about today’s most successful though often controversial founders and CEOs that have an online presence. They are very strong personalities who are not afraid to bring themselves into their work. Their personal values drive the brand’s success. 

Brands that work to abolish conformity and create a safe environment to experiment will see the most success. 

Many executives, however, have achieved their positions by conforming. So as executives we have to ask ourselves, how much fulfilment are we experiencing, and how much more could I contribute to the success of this brand by bringing more of myself into it?

Learn to share your value in a way that captures

Ultimately we have to remember that our brand’s value is not encapsulated by what we think of it but by how it is perceived. How is the brand held in the minds of customers and followers? That’s your brand’s equity. The ones you are seeking to influence and impact, decide the value. 

Also Read: How luxury brands are experimenting with the metaverse

What they want to see is authenticity. Are you the person you say you are? Are you working to deliver the value that you claim to be creating? It is a combination of the digital and human sides coming together in beautiful harmony to create a digital footprint that will leave a positive impact. 

The search engines have their say. If you can’t be found by the people that need you, there is no value. But just being visible online is not enough. Great branding is part strategy and part you. 

One of the best ways to show your human side is with video. Video shows so much more than just writing out a bio or brand statement can. On video, your audience can see your personality. Your tone and body language, even what’s behind you. It’s a behind-the-scenes glimpse into your world and they love that.

Balance out performance marketing with brand marketing

We like to look at the numbers. The statistics, clicks, and shares. These are the things that are trackable and they do give us feedback but not the whole picture. These performance markers are important. But the numbers are not what fosters an engaged community. 

You need a combination of performance marketing and brand marketing. Performance marketing gives you feedback and keeps you profitable while brand marketing shares your why and builds engagement and loyalty. 

Brand marketing is a huge part of building a brand’s equity. It’s where a lot of companies fail. Outsourcing the content marketing side can help. Having a specific team that focuses on just the content without getting bogged down in the logistics of the business can make all the difference. It takes stepping back and looking with fresh eyes, your audience’s eyes. 

The community-building aspect is one of the reasons influencer marketing has become so popular and works so well. People will trust a recommendation from others much more than a company’s ad campaign.

Know how important brand equity is in this digital world?

We alluded to this in the beginning but brand equity is more important now because technology has made it so much easier to start a brand. A smaller barrier means more competition and certainly does not mean everyone will be successful at branding. There are so many resources, many of which are free, to create a website or landing page online and start a brand. Often this leads to more noise and less quality. 

Also Read: How small businesses can boost brand visibility via videos and messaging

There are a lot of mediocre brands. Don’t be one of them. Work to offer real value. This can take time and learning. It means putting in the work to connect and engage. Time to evaluate the perception your brand has and develop your story. 

Know that building brand equity is important and put effort into it.

Go where your people are and show up consistently

You don’t have to put focus on every single platform that comes along but you do have to show up where your potential audience is. 

The marketing channels that are popular change. Those who get on new platforms quickly can gain more traction just from less competition. This does not mean that you need to be on every social media wave. But you do need to be where your audience is. Meet your consumers where they are. Where they love to hang out and spend time. 

Search for your ideal customers. Where are they? Go there. What kinds of conversations are they having? Get involved and connect. 

Follow these steps and you can build brand equity over time, stand out from all the mediocre brands online, and build trust with your audience. 

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The benefits of neurodiversity are clear. People on the autism spectrum are, as a group, significantly more focused than average. They have a long attention span and can work for hours on a single project without interruption.

They don’t get distracted by office chatter, water cooler talk, or Facebook notifications from friends. This can be a tremendous advantage in an office environment where multitasking is often seen as the norm.

What is neurodiversity

Neurodiversity is a natural difference in the way people think and communicate.

It’s often defined as “neurological differences that are not disorders,” or “differences in how we process information.” These can include autism spectrum disorder, attention deficit hyperactivity disorder (ADHD), Tourette’s syndrome, dyslexia, dyspraxia and other conditions characterised by unusual sensory experiences or motor control issues.

If you’re reading this, chances are you don’t need to be convinced that neurodiversity is a good thing. But employers might. Here are five reasons why your company should consider hiring neurodiverse people:

• Neurodiverse people have unique skills
• Neurodiverse people are loyal and hardworking
• Neurodiverse people are creative thinkers
• Neurodiverse people have specialised skills in areas like mathematics, music, or computer science (where they can use their brain differently from non-neurotypicals)
• They offer an advantage to the entire business because they make it more inclusive

It’s not “nice” to hire neurodiverse people; it’s smart. Employing people with differences in thinking means more creativity in your company. It also means more innovation, new perspectives and fresh ideas.

Neurodiverse individuals are more creative and innovative and bring fresh ideas to the table. They approach problems differently than people without differences in thinking, so they’re such an asset to any company.

With that in mind, here are some reasons why neurodiversity can be an asset:

Neurodiverse employees are more creative

No matter where you look, plenty of evidence points towards this being true.

Also Read: Autistic founders and advocates share their vision of a more inclusive workplace

A study from Stanford University found that people with autism were better at finding solutions for seemingly intractable problems than their peers who didn’t have autism spectrum disorder (ASD).

And research from Harvard University indicates that having ADHD can be beneficial at work if you’re doing something creative. It helps you stay on task!

Neurodiverse employees will bring something unique to the table and help you solve business problems in a way that others can’t.

For example, when a neurodiverse employee works on your team, they may be able to see things a bit differently than their colleagues. They may come up with solutions that others wouldn’t have thought of before because their perspective does not limit them.

Or perhaps they have an idea for solving a problem but don’t know how to explain it, so everyone else understands. A neurodiverse employee could provide input into how this idea could be better communicated or find someone who can help them express it more clearly (and therefore solve your company’s problem).

Neurodiverse employees are loyal and hardworking employees

They come up with creative solutions because they see things others don’t see or think about things others don’t think about naturally.

Neurodiverse people excel in the workplace because they’re self-starters who don’t need to micromanage, making them great team members. Neurodiverse employees are independent thinkers who aren’t afraid to speak up when something’s wrong with the company or its policies, so their ideas can significantly impact your business.

Neurodiverse people are also great problem solvers since they tend to think outside of the box more often than non-neurodivergent individuals do, which means that if you’re struggling with something at work, whether it’s productivity issues or a faulty process, you’ll find someone who will have an answer for you if they’re part of your team!

Neurodiverse candidates are self-starters

They are creative, independent thinkers who can help companies achieve their goals, so long as their ideas are encouraged and rewarded.

People who are neurodiverse make great additions to small teams or as self-starters. They are creative, independent thinkers who can help companies achieve their goals, so long as their ideas are encouraged and rewarded.

If you’re a hiring manager looking for a way to boost your company’s productivity, consider this: neurodiverse candidates are excellent problem solvers. They will not only think outside the box but also try out new strategies that may seem crazy at first but will ultimately lead them to success.

One of the benefits of hiring neurodiversity is that neurodiverse people often have highly specialised skills, like amazing recall or an innate ability to analyse data, which makes them great employees in many parts of a company’s operations.

Also Read: Towards an inclusive society: Singapore-based startups that are building solutions for people with disabilities

In addition to being more loyal and hardworking than neurotypical employees (NTs), those with autism and Asperger’s syndrome are less likely to quit their jobs because they want stability and routine. They’re also good at working independently, so it’s easy for them to get things done without much supervision.

Many companies hire NTs who have mental health issues such as depression or anxiety: Their diagnoses drive them toward perfectionism, and higher productivity levels than your standard employee would achieve without an issue holding them back from reaching their full potential at work.

Neurodiverse employees are loyal and hardworking because they need their jobs to survive in a society that doesn’t always understand them. They will work harder than anyone else because they know how important it is to be successful at work, pay their bills on time, and have enough food in their fridge when the month ends.

Conclusion

There are many reasons to hire neurodiverse employees, and you’ve just read about some of them. If your company is looking for smart, creative people who can bring something unique to the table and solve business problems, then hiring a neurodiverse employee might be worth exploring.

When we’re hiring individuals with differences like ADHD or autism spectrum disorders, it’s important to remember that these conditions come with many diverse talents (and possible challenges).

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