Until two-three years ago, venture capital investors invested in tech startups almost extravagantly and mindlessly, and many without proper due diligence. They kept on pouring capital even into startups with no good product-market fit, no clear path to profitability, no scalable product, or no differentiation — probably for fear of missing out (FOMO).

But that era of cheap money is over, at least for now. Consequently, fundraising has become challenging, with VCs becoming more cautious and LPs more vigilant. A funding winter, as it is called, has set in, adversely affecting startups, mainly the consumer-oriented ones (which burn more money than their B2B counterparts).

Funding Winter refers to a period of market correction in capital inflow which lowers the probability of startups getting higher valuations in short to mid-term. The winter is due to an accumulation of many negative forces — macro (years of quantitative easing, investment speculation, etc., despite substantial fundamental challenges) and micro (weakness and implosions of various companies across the tech industry worldwide).

The winter has hit developed markets in the West the most, with late-stage companies and unsustainable startups the hardest. This has forced young companies to be prudent, cut costs, slash jobs, and lower their valuations, and many are staring at a bleak future. In Southeast Asia, many renowned unicorns, including GoTo Group, Sea Group, and Carousell, cut their workforce to save cash and survive.

Undoubtedly, the road ahead looks rocky as a prolonged winter spell is anticipated.

The moot question is:

How long will the winter last?

“Current macro parameters point to a sluggish economy in 2023, which will likely continue into the first half of 2024,” says Dave Ng, General Partner, Altara Ventures.

Tin Men Capital Founder Murli Ravi concurs. He believes there remains a lot of uncertainty in the macro-economy, resulting in increased capital cost and volatility in public equities, bonds and almost every other asset class. “I don’t expect the uncertainty to go away in the short term. Even today, VC is a small fraction of the asset universe and is subject to the same overall trends.”

Also Read: Startups that can reflect and pivot in time will thrive during funding winter: Ivan Ong of AFG Partners

While the world faced many global recessions and macroeconomic headwinds in the past, high inflation sets the current slowdown apart from them. And if inflation remains high, interest rates will also remain high; hence the era of cheap money is over.

“It might be difficult to predict when ‘funding winter’ will end, and we foresee it to continue through the year,” predicts Jefrey Joe, Co-Founder and Partner at Alpha JWC Ventures. “Market growth has slowed globally and is likely to remain so in 2023 due to factors such as inflation, rising interest rates, and geopolitical uncertainties.”

Unlike during the global financial crisis of 2008 or the COVID-19 pandemic, governments worldwide are not expected to act as a saviour this time. “Hence, the downturn may last longer, especially in terms of risk appetite for business models with no clear path to profitability,” says Helen Wong, Managing Partner of AC Ventures.

Dusan Stojanovic, Founder of True Global Ventures (TGV) and Ascend Vietnam Ventures (AVV) General Partner Eddie Thai also anticipate the winter will last long.

However, not everyone agrees. 1982 Ventures Managing Partner Herston Elton Powers believes global VC funding will rebound sharply over the next few months with increased competition to back the best founders and deals. He, however, admits that the “era of easy money” is over.

What is a way out?

According to AVV’s Thai, emerging from winter requires the accumulation of negative forces to be flushed out. Unfortunately, that usually takes more than just a few months.

“I guess that there are still some dominos to fall. In any case, the recession in Europe, possible recession in the US (Wall Street consensus forecast: 65% likelihood), and slow China recovery mean 2023 will be a tough year for the global economy. Beyond that, it will take several months of recovery in the public markets plus several specific big positive news — successful tech IPOs, big acquisitions or late-stage fundings, etc. — for winter to thaw into spring.” 

Studies show that the Western markets are being hit the hardest across global tech ecosystems, which is starting to spill over to other regions, including Southeast Asia. While the overall global recovery may take longer, recovery in Southeast Asia (Singapore) and the Middle East (Dubai) will occur earlier, experts feel.

Of these, Southeast Asia remains a bright spot due to its favourable demographics, supply chains shifting to the region, and continued digitalisation. “Hence, SEA could get a larger slice of a shrinking pie of funds allocated to venture capital,” AC Ventures’s Wong observes.

According to Alpha JWC’s Joe, emerging technologies and developing innovative business models can help jumpstart investment activity in the region. With all relevant parties and stakeholders taking proactive steps to stimulate economies, it could positively impact and increase investor confidence.

In addition, SEA — particularly Indonesia — still has a lot of growth potential in digital penetration, making this region very attractive, Joe adds.

Also Read: Of COVID-19 and funding winter: Why these 2 VC firms are bullish about SEA amid back-to-back crises

“While our primary market Southeast Asia is one with a highly competitive startup ecosystem, we are confident that there are still plenty of opportunities to invest. For example, with its enormous digital economy potential, Indonesia has kept increasing for the past years, encouraging our VCs to make more intended deals with potential founders and sectors. We also see Indonesia at a value creation discovery stage for the year, where VCs will carefully observe the economic conditions from the valuation, liquidity market, and cost of capital from their last evaluation cycle before deciding anything,” Joe elaborates.

Elton Powers bets big on strong early-stage companies in SEA, which are still in high demand. For example, 1982 Ventures’s portfolio companies, such as Fundiin and PasarMikro, managed to close oversubscribed rounds at higher valuations over the past six months. “While 2021 was a bit of an anomaly in terms of total global VC funding, SEA’s fintech funding in 2022 continued to outperform and was on track to match or beat the record inflows of 2021. There is still a lot of capital sitting on the sidelines. We expect investors to be pickier and focus on sustainable companies while avoiding unproven and buzzy trends.”

What does the winter mean for VCs?

According to Pitchbook, VCs hold nearly US$600 billion in meaningful dry powder globally. But with the uncertainty in the market, VCs should deploy with caution and look for business models with strong unit economics. It is also time for VCs to focus on managing their portfolio companies to ensure they are resilient and can emerge stronger after the downturn.

“We see globally a flight to quality where institutional investors are back to making rational decisions and valuing businesses on real profits rather than GMV or revenues,” says Andy Hwang, General Partner at Wavemaker Partners. “In SEA, valuations in overhyped sectors and geographies come back to more reasonable levels.”

Corporate governance and strong financial oversight should be top of mind for VCs. A founder-centric environment characterised the past cycle as money was chasing founders. “Hopefully, we will transition to one that encompasses the interests of all stakeholders,” says AC Ventures’s Wong.

Some VCs commonly look for the following aspects as forms of validation before investing in a company: vision, market, product, and the ‘X-factor’, which are significant advantages the team have. This is not limited to having a strategic backer but also includes other factors, such as the founder’s unique expertise to the team’s industry experience, solid historical traction to various monetisation channels and proprietary networks to innovative business approaches. “So, while 2023 may seem tougher compared to previous years, this doesn’t mean there is zero opportunity for both VCs and startups to collaborate and grow,” comments Joe.

VCs should go back to basics, says Peng T. Ong, Co-Founder and Managing Partner of Monk’s Hill Ventures. This includes following the First Principles, i.e., if the valuation is reasonable, if real opportunities exist to build a big business, and if the entrepreneurs are strong.

Ong, however, says the downturn is, in a way, good for the tech ecosystem. “Historically, if you look at VC investments in the last 20-30 years, you see some of the best times to invest as a VC is during the recession because everything is cheaper. It’s cheaper to build products, and it is cheaper to go to market. If you build a more efficient product and attack the market better, the market will be more likely to choose you because you are cheaper. After all, people are cost-sensitive. As we all know, Google came up in the middle of the dotcom bubble, and Facebook came up in the middle of the Great Financial Crisis because they were much more efficient ways to do.”

How does the winter affect the launch of new funds?

The fundraising environment is more challenging than in 2021 or H1 2022. Limited Partners (LPs) are more hesitant, given the recent market selloff.

However, as work travel is back and LPs seek to diversify outside of China and look at new fast-growing regions such as SEA, new funds with solid and unique value propositions will still be able to raise, according to pundits.

“Despite the slowdown, we still see new funds being successfully launched, particularly those with robust performance with previous funds and started by seasoned startup operators or investors,” says Wavemaker’s Hwang.

Also Read: Funding winter: VCs ask startups to focus on corporate funds from developed countries

While LPs from the West are more affected by the slowdown, their counterparts in the Middle East are not negatively affected by the downturn, which also bodes well for Southeast Asian VCs.

Stojanovic opines that VCs can get LPs if they prove they can invest in cash-flow-positive companies. Many high-growth tech companies can turn around to be cash flow positive with slightly lower growth in 12 months if they keep the same staffing/halt recruiting. “Once that happens, LPs will see that there are companies that are cash flow positive and that they can get funding in around 12 months.”

For instance, Indonesia-based AC Ventures completed the first close of its US$250-million fund in August 2022 in the middle of the winter and claimed it continues to see strong interest from LPs. Ascend Vietnam also hopes to close two 7-figure investments this month.

However, Dave Ng of Altara looks at things from a different angle: “Different LPs would have different mandates and, therefore, different preferences. For instance, institutional LPs tend to be less cyclical as they deploy across a very long horizon. They look for track record and performance and would continue to invest in funds that have established partnerships with them. While for family offices and high net-worth individuals, the variation could be more diverse due to different risk appetites and allocation strategies. Some may slow down because of the ongoing headwinds, while some may double down instead! (because prices of assets are coming down in a downturn.”

The exit landscape during the winter

According to industry watchers, exits at the very large end of the spectrum (for example, IPO) are expected to be slower than in the past two years. Some expect M&As, especially at the small and mid-cap, to pick up due to opportunities now to consolidate and expand inorganically for those acquirers with strong balance sheets to do so.

“There are also selective opportunities for the merger of peers to gain a greater footprint and critical mass. However, this usually depends on the post-merger teams successfully executing such merger strategy and working together after that. Statistically, not many mergers are successful,” says Altara’s Ng.

Stojanovic agrees, saying most exit opportunities would be linked to consolidation, especially in tech, as opposed to IPOs for the first six months. Many companies may delay IPO to focus on value creation while awaiting more favourable valuations.

Meanwhile, M&As will probably be the major form of exit for smaller companies as larger companies with strong balance sheets will continue to acquire for growth at decent valuations. However, as the economic conditions improve in H2 2023, companies may take advantage of the positive market conditions and strong investor interest in new offerings to go public.

“The number of IPOs in Singapore and globally will decrease significantly compared to 2022. However, Singapore’s economy has been recovering relatively well, and the market is not in free fall anymore. It’s possible that the memories of past crashes during market uncertainty will continue to make companies and investors cautious in the short term. This may lead to a decrease in IPO numbers or the overall performance of IPOs in Singapore in 2023. ,” Stojanovic observes.

He also feels that a robust tech stock exchange ecosystem is missing in the region and, surprisingly, in Singapore. With the influx of capital coming in from Hong Kong and mainland China, it could be an opportunity for the regional stock exchanges (particularly the Singapore Stock Exchange) to create a strong ecosystem for tech IPO.

“We still think that the largest tech companies will still choose to IPO on Nasdaq in the US, especially those who have Indonesia as a market, which still has the potential to create new unicorns in SEA,” adds Stojanovic.

Helen Wong of AC Ventures says as tech IPOs have generally underperformed recently, it will be more challenging for startups to attempt an exit through a public listing. Hence, the M&A market will likely become more viable for exits.

“Some of our portfolio companies have been acquired by corporates in the traditional sector/tech companies looking to expand their topline. It is a good time for those companies with deep pockets to acquire companies at more reasonable valuations and get ready for growth when the economic upswing comes,” remarks Wong.

The years 2021 to 2022 have been landmark years for the Indonesia tech scene with the IPOs of Bukalapak, Gojek, and Blibli. The market also saw the successful de-SPACs of Grab and PropertyGuru in the greater Southeast Asia market.

Also Read: Funding winter? Indonesia marches on … and why it will survive the gloom

“While these stocks have generally performed poorly post-lockup — similar to other tech stocks worldwide, we should acknowledge that there are no impediments now to tech listings for yet-to-be profitable tech companies. Looking forward, the H2 2023 should look better, as there are about 1,000 unicorns globally, and the best ones are likely to test the IPO waters then. Also, some of these unicorns have gone through down rounds,” says Wong

“Hence, their IPO valuation should be closer to their public comparables now. Public market investors would find it easier to digest such IPOs, especially if such companies demonstrate both profitability and growth potential,” Wong maintains.

Conclusion

While no one is sure about how long the recession and funding winter will last, it is almost certain the era of easy and cheap money is behind us. Startups with no clear path to profitability will find it increasingly hard to survive. Unicorns will be forced to raise venture capital at a lower valuation. And until this crisis is over, many more startups, and even big tech companies, will continue to shed people.

The immediate future is bleak for the global startup ecosystem.

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HYU Holdings, a Hanyang University-based investment-holding company, has partnered with Singapore’s early-stage fund Farquhar VC to help South Korean startups go global.

HYUH and Farquhar VC will collaborate on investments into HYUH and Hanyang University affiliate startups and accelerate their internationalisation efforts into Singapore and the world.

Both will also explore joint funding initiatives to invest and scale HYUH startups globally.

Prof Byung-Hee Lee, CEO of HYUH, said that both HYUH and FVC share the same ambitions to enable early-stage university startups to strategise, scale, and thrive in overseas markets. It is a timely opportunity to synergise the capabilities of both organisations.

Also Read: Singapore’s Farquhar VC joins StockViva’s US$5M Series A investment round

FVC Chief Investment Officer Jason Su said that university-originated startups, such as Beep and Roceso in Singapore, must plan early for market expansion while focusing on domestic and commercial milestones. Cross-border successes depend on the strengths of the ecosystem players.

Established in 2008, HYUH is the first university-based holding company in Korea that commercialises HYU technologies and invests in HYU and affiliate startups.

To date, HYUH has invested in more than 50 startups across several industry verticals.

Established in 2020, Farquhar has invested in over 20 startups and achieved two exits. Farquhar aims to accelerate the growth of its startup investments through targeted market access with its vast network of medium and large local enterprises across Southeast Asia, Taiwan and other parts of the globe.

FVC is making the first close of its second fund FVC Green Future Fund.

In December, South Korea’s early-stage accelerator-cum-VC fund Bigbang Angels formed a global investment fund in Singapore in partnership with Farquhar VC.

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Long-term business success means keeping pace with a continually evolving world. Between new products, new competitors, fluctuating markets, changing customer demands, global crises, and more, expecting the unexpected is the new normal.

Technology is critical to maintaining business stability and agility in any situation – but like everything else, digital transformation is a journey of many moments of opportunity.

It’s very tempting to look at digital transformation projects as having a clear start and finish. Not only does it provide a sense of control, but success is often measured when a project is perceived as ‘complete,’ the budget is no longer allocated, and the project team is disbanded. It appeals to our innate sense of tidiness. Not to mention, it’s really satisfying to check off that ‘to-do’ box.

But that’s rarely the typical, or even best, strategy. Digital transformation projects, particularly large-scale ones, often start with just a few steps and then evolve as the journey continues. You gain knowledge, better tools become available, additional budget gets allocated, and more opportunities – or challenges – present themselves.

These individual moments all combine to create your busines’ journey. There is no ‘finish point,’ but instead, you continue to shape and improve the systems that drive your desired outcomes.

That can mean managing the cost of expense reports, optimising the hybrid work experience, or improving your travel and expense processes.

Finance automation a starting point

Often, the big question facing businesses contemplating digital transformation is, “Where do I start?”

For many businesses, the answer lies in finance automation.

Also Read: How AI and automation can shape the future of farms

Recent market disruptions and changing work environments and lifestyles have almost certainly prompted a change in how you interact with customers. Perhaps you are connecting with them remotely, finding new distribution channels, or allowing them to pay in new, more convenient ways.

Whatever the case, you have most likely already taken your first steps toward digital transformation. But if your employees are still using paper and e-mail-based processes for travel and expense management and vendor invoicing, then you are missing a critical moment of opportunity to take control over business spending, improve cash flow, and prepare for the future.

The first step in your digital finance transformation should be to evaluate where you are today.

Figure out where paper and e-mail are still being used to track and manage spend and spend-related communication. Also, examine your ERP system to determine whether the functionality you have is delivering the near-real-time spend insight and streamlined payment processes you need.

Finally, take a look at where and how your employees work to see if your systems are giving them the flexibility to stay productive, whether at home or in the office.

Timely business benefits for a slowing economy

Once you have all these processes mapped out, it’s time to determine what’s working and what’s not. Travel and expenses are a great place to start.

Ask your people about your expense reporting process – how long does it take, how often are there errors, and how much time do managers and accounts payable (AP) staff spend to chase down missing submissions and approvals? How long does it take people to get reimbursed?

Next, examine your vendor invoicing for the same issues of simplicity, speed, and accuracy, and ask yourself whether lost invoices, late payments, and missed discounts are impacting vendor relationships and your bottom line.

Finally, check in with your finance teams to see if they have the spending visibility that they need to prevent wasteful spending, improve cash flow, and align spending strategy with your business goals.

In addition to considering spending processes, you will want to examine spending policy. This includes measuring out-of-policy spending as well as your employees’ familiarity with the spend policy.

You need a spending policy that covers the full spectrum of your spending activity while also delivering the desired business impact of reduced errors, greater cost savings, stronger security, and increased compliance. Spend policy should be easy to find, understand, and apply – and should ideally be built right into your spend management processes.

Now that you know which problems need to be solved, it’s time to rally your people and get them on board with implementing a solution.

Your stakeholder list should include leaders, managers, and people on the ground from accounts payable, procurement, HR, finance, IT, and any other department that deals with spending processes regularly.

Also Read: Why blockchain is instrumental for the future of trade finance

By bringing all these people together, you will be able to ensure a clear understanding of how digitalising your spending management can improve process efficiency, visibility, cost control, cash flow, security and compliance, and employee satisfaction. Not only will this help demonstrate the need for change, but it will also ease the transition to your new automated system.

For those who are still on the fence or feeling nervous about change, remind them that digital, cloud-based spend management can save finance and accounting employees many hours per week while also giving them the freedom to do their job from anywhere and an opportunity to divert time saved into more strategic tasks.

For the conservative budget hawks, be sure to present a cost-benefit analysis that considers all the money you will save by reducing errors, curbing out-of-policy spending, and increasing remittance discounts – not to mention the savings that can be uncovered through greater spend visibility.

As for IT, make sure they know that any digitalisation plan includes partnering with a reputable vendor that can provide the support they need for a smooth rollout and operations going forward.

With the right digital transformation strategy and automation technology, firms can fret less about the uncertain economic climate, as they will become more agile and productive at a lower cost.

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Bitcoin is the pioneer and most notable cryptocurrency, and it remains the dominant player in the market. However, there are many other cryptocurrencies, known as Altcoins, that have been developed in the years since Bitcoin’s inception.

These Altcoins may offer various advantages over Bitcoin, such as faster transaction speeds, lower fees, or different mining algorithms. Some of these are designed to improve the features of Bitcoin, while others are created as experiments or for specific purposes.

What exactly are Altcoins, and how is it different from Bitcoin? Let’s dive deeper and compare the two, and find out which could be more beneficial.

What is Bitcoin?

No need for introduction – Bitcoin is the grandfather of cryptocurrencies and is a decentralised digital currency that uses cryptography for security and is not controlled by any government or financial institution. It was implemented in 2009 by an anonymous individual or group of individuals known as Satoshi Nakamoto.

Also Read: What investors need to know about Bitcoin halving

Users can send and receive bitcoins electronically for an optional transaction fee using wallet software on a personal computer, mobile device, or web application. Transactions are verified by network nodes through cryptography and recorded in a publicly distributed ledger called a blockchain.

Bitcoins are created as a reward for a process known as mining, in which computers solve complex mathematical problems to verify and record transactions on the blockchain. They can also be bought and sold on exchanges with fiat currencies or other cryptocurrencies.

What are Altcoins?

Altcoins, or alternative cryptocurrencies, are digital currencies that are alternatives to Bitcoin. They were created after the success of Bitcoin and are often based on the same basic principles as Bitcoin.

Like Bitcoin, Altcoins use cryptography for security and are decentralised, meaning that they are not controlled by any government or financial institution. Many Altcoins are based on the same open-source code as Bitcoin, but they may have different features and capabilities.

There are many different Altcoins available, each with its own set of features and characteristics. Some examples of Altcoins include Litecoin, Ethereum, and Dogecoin. The choice between Bitcoin and an Altcoin will depend on an individual’s specific needs and priorities.

How are they different?

One key difference between Bitcoin and Altcoins is the level of decentralisation. Because Bitcoin has been around for much longer and has a larger user base, it is generally considered to be more decentralised than many Altcoins. This is because the network is supported by a larger number of nodes, making it less vulnerable to control by any single entity.

In addition, Bitcoin belongs to no specific team or protocol. This greatly reduces counterparty risk for investors as Altcoins do have a higher propensity of rug pulls and disastrous tokenomics.

Another important difference is the level of adoption and acceptance. Bitcoin has achieved a level of mainstream acceptance that many Altcoins have not, and it is accepted as a form of payment by a wide range of merchants and organisations. Some Altcoins, on the other hand, are accepted by fewer merchants and may be less liquid, making them more difficult to use as a means of exchange.

Also Read: Bitcoin and Ethereum simplified for a five-year-old

There are differences in the technical features and capabilities of different cryptocurrencies. Some Altcoins offer features that are not present in Bitcoin, such as anonymity or the ability to process a higher volume of transactions per second.

Weighing out the pros and cons

Altcoins may offer various advantages over Bitcoin, such as faster transaction speeds, lower fees, or different mining algorithms. However, they may also come with trade-offs, such as reduced security or liquidity.

Bitcoin has a strong track record when it comes to security. It has never been hacked, and the underlying blockchain technology is considered to be very secure. This makes it a safe choice for those who are concerned about the security of their funds.

Being the most well-known cryptocurrency, achieving a level of mainstream recognition that many Altcoins have not, Bitcoin appears more appealing to most people, as they may feel more comfortable using a cryptocurrency that is widely recognised and accepted.

Although Bitcoin has been subject to volatile price fluctuations, it has also been adopted by a growing number of merchants and individuals as a form of trusted payment. Its decentralised nature and the fact that it is not subject to government or financial institution control make it an attractive option for some users.

Ultimately, the decision of whether to invest in Bitcoin or Altcoins depends on the professional investor’s financial goals and risk tolerance. It is important to carefully research and evaluate any cryptocurrencies before investing to avoid any potential scams. If you are looking to diversify your portfolio, it is important to work with a licenced fund manager with crypto experience if you need help determining when to invest.

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On November 15th, 2022, history was made when the global human population reached eight billion people for the first time. It had taken only 12 years for the population to grow from seven billion to eight billion, proving that there is still a massive amount of population growth.

These populations are not evenly distributed throughout the world. The overwhelming majority of people live on the Asian continent, with China and India hosting similarly large populations of roughly 1.5 billion people each. The United States is a distant third in the ranking of countries by population, at 338 million people. Indonesia, Nigeria, and Brazil are highly populated as well.

Growth rate

The world’s population is currently increasing at 0.83 per cent per year. However, this is a global average; some countries have a dramatically higher population growth rate than others.

Nigeria has a very high growth rate, at 2.4 per cent every year. Pakistan, Bangladesh, and Mexico are the runners-up. Russia and China have no net increase in population growth, despite having already large established populations.

There are a variety of reasons that can cause these variations in population growth, such as economic, legal, or political factors. For example, China’s One Child Policy has severely limited population growth within the country.

The fertility rate is usually a good indicator of where a population’s growth rate stands. It is the average number of children that will be born to a woman in her lifetime. Nigeria has an unsurprisingly high fertility rate, standing at an average of 5.14 children born to each Nigerian woman. Pakistan, Indonesia, and India are runner-ups for fertility rates.

Countries such as Brazil, Russia, and China have a fertility rate below the replacement rate. This means that two parents are not reproducing enough to completely replace themselves in future generations. This usually indicates a decreasing population in the future.

A look at life expectancy

Fertility rate and life expectancy usually have an inverse relationship. A country with a higher life expectancy usually doesn’t have a high fertility rate; in fact, the population will not be growing as rapidly because they are further along in the industrialisation process.

Also Read: Singapore’s ageing population: Tech and new scientific discoveries may calm the silver tsunami

The global average life expectancy has risen drastically from only 29 years old in 1800 to 73 years old in the present day. Countries with the highest life expectancy include Japan, Spain, and Switzerland, whose citizens enjoy full lives well into their 80s. South Sudan, Somalia, and Sierra Leone only have life expectancy for citizens into their mid-40s.

These countries have fertility rates that are much higher than countries in which the citizens live longer. Usually, average life expectancy is affected by infant mortality rates, so mothers will give birth to more children in these countries. 

The growing world population has had a wide range of effects on business. The population will continue to age as global life expectancy lengthens. Therefore, there will be a greater need for industries that cater towards the elderly population. There can be a growing demand for assisted living facilities, pharmaceuticals, and hospitals.

There might also be a labour shortage caused by the ageing population, which in turn could cause a shrinkage in global GDP. GDP will likely shift towards sub-Saharan Africa to reflect the growing labour forces in these countries. Larger populations in countries can lead to multinational corporations as well. 

The road to nine billion

This next milestone is looming close. It is predicted that it will only take 15 years to add an additional billion to our population. Some of the trends that are predicted for the near future is that Africa will become the fastest-growing continent.

It is predicted to double by 2050, while Asian population rates will slow. Europe’s population will continue to slow, with a 15 per cent population decline by 2050. This decline is mostly caused by ageing populations and much lower birth rates. Global migration will also be a dominant force, representing 3.3 per cent of all people. This is understandable, given the much more globalised world we live in today.

In conclusion

It is predicted that the global population will cap out at 10.4 billion by 2080. After that, growth rates will fall significantly, and humans will have to adapt to shifting age demographics.

There are a lot of people on the planet, and resources must be shared equitably to make sure that there is a bright future for the human race and the natural world.

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Zilingo spins off tech, product, IP units to Swiss startup Buyogo
The fashion e-commerce firm is nearing a debt settlement; This comes days after Zilingo appointed EY as provisional liquidator to wind up the firm; Buyogo is a SaaS startup focused on digital e-commerce solutions for SMEs.

Ex-Deliveroo execs’ food-ordering firm Gobble shutters
Its co-founder Domenico Tan shared on LinkedIn that Gobble’s B2C model “wasn’t sustainable” for it to have survived long; The executive also shared that even with Gobble’s high sales volume, margins were still too low.

Two Singaporean PEs join hands to launch US$700M tech fund
The CSP Fund II, formed by Capital Square and Basil Technology Partners, will focus on SaaS, AI, data analytics and digital sub-sectors; The fund raised capital from HarbourVest Partners, TPG NewQuest, and Committed Advisors.

Japan’s MUFG Bank amplifies SEA focus, bullish on ID fintech
The bank has internally committed US$500M or more for equity investments to Asia, including India and SEA; In March 2022, MUFG launched a US$300M Ganesha fund to invest in middle- to late-stage Indian startups.

Indonesian e-commerce enabler Desty raises US$4.35M
The investors include East Ventures, Z Venture Capital, and BAce Capital; Desty helps sellers, creators, and influencers promote and sell their products online.

Google parent Alphabet to axe 12,000 jobs
The cuts account for about 6% of Alphabet’s total workforce; According to CE Sundar Pichai, the retrenchment will cut across product areas, functions, levels and regions.

Spotify set to slash jobs this week
While the exact number of those laid off was undisclosed, the music-streaming giant has nearly 9,800 employees, as reported in its third-quarter earnings; In 2022, Spotify let go of 38 employees from its Gimlet Media and Parcast podcast studios.

Genesis crypto-lending units file for bankruptcy protection
The filing includes the parent company Genesis Global Holdco and two of its lending business subsidiaries; Genesis has over US$150M in cash, which it plans to use to support its ongoing operations and restructuring process.

SoftBank-backed Swiggy to shed 380 employees
The Indian food delivery startup cited the current macroeconomic slowdown and overhiring for the restructuring; Contrary to Swiggy’s projections, the growth rate for food delivery has slowed down.

SG probes Gorilla Mobile over temporary suspension of services
The Infocomm Media Development Authority said under Gorilla’s licensing terms, the company has to secure approval from the government body before ceasing services.

How corporate innovation in Vietnam is fledging the B2B startup ecosystem
Zone Startups is contributing to Vietnam’s push to leverage its well-known software outsourcing industry into a fledging B2B startup ecosystem.

Giving a boost to business through finance automation
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The times they are a-changin’. Three months ago, I wrote a piece calling for an urgent step change in the Fintech industry in this very tune of Bob Dylan. In perspective, the modern-day fintech industry has been battling with macroeconomic issues — from rising interest rates, soaring inflation, industry-wide layoffs, and dwindling consumer confidence.

A decade of good times has created some complacency, and with the cold winds of winter upon us, businesses desperately need to become more adaptable and resilient to survive long term.

Now, three months later, and after hosting the largest gathering of the fintech community ever, the industry is beginning to sing a different tune — one that chants about coming together.

Come together, right now, over fintech

At the Singapore Fintech Festival (SFF) last year, we saw this very hymn of collaboration come to fruition, with the community coming together to support one another by exchanging valuable insights on business resilience and building new relationships.

When it was all said and done, we saw record turnout totalling over 62,000 across 115 countries. It was absolutely astounding given what was happening in the background, with budgets slashed and rising travel costs from the macroeconomic conditions.

Also Read: A new breed of fintech payment is here to slay the game

Instead of the community turning inward, we saw an incredible embrace and cross-pollination of ideas from people from all walks of life. There were lots of discussions about why now is the time to build and, in many cases, organisations coming together to explore a variety of partnership constructs and M&A activity.

It might seem like the start of a bar joke, but how often do you see a sustainability and educational reformist, a major tech company founder, and a chief executive of a financial regulator walk into a room together? This is the only place I’ve ever witnessed such an open and diverse dialogue in fintech with corporate leaders, policymakers, and regulators.

And now the work begins

Some may think of SFF as a culmination of the fintech industry, but I think of it as a springboard for propelling the industry forward. And now, it’s time to deliver on the promising conversations and insightful dialogues.

To encapsulate key learnings from SFF, we’ve collaborated with a few of the world’s leading consulting firms, such as McKinsey & Company and Oliver Wyman, to release seven post-event reports to the community. These reports include insights such as Web3 and digital assets, banking for business, balancing innovation and regulation, the future of fintech in growth markets, and how fintechs can become more resilient. Most reports have been released and are available to download for free by creating an account on the Elevandi website.

The roundtable dialogues during the event also gave birth to working milestones that would benefit fintech leaders and businesses in the long run. Up to 13 reports from these roundtables are to be released to the fintech community in early 2023. These reports outline solutions and steps for tackling complex industry issues that were discussed by public and private sector leaders during the Elevandi Insights Forum at SFF 2022.

Key reports include a focus on building cross-border payment systems, overcoming talent shortages, and responsible AI in financial services. Likewise, The Milken Institute and United Nations ESCAP — organisations that focused on problem statements around sustainable finance — will be publishing their reports, which would serve as a reflection of the COP27 goals.

Also Read: The global fintech market: Getting a piece of the pie

And further follow-ups will take place in 2023. First will be the convening of fintech communities from the Global South — Africa, Latin America, and Asia — at the Inclusive Fintech Forum in Kigali, Rwanda, on 20-22 June.

There we’ll work towards promoting technology and policy conversations to enable fintech development to become equitable, accessible, and sustainable to all people of the world. Immediately after, we’ll head to Zurich, Switzerland, for the second edition of the successful Point Zero Forum (26-28 June) to advance Web3 and sustainable finance together with regulators and policymakers.

Then on 14-17 November, the global fintech community will unite once again at the Singapore Fintech Festival — to reflect on the year’s progress and discuss efforts for 2024.

Onward and upward

Now, as more organisations begin to see the importance of dialogues between the public and private sectors to build resilient and adaptable businesses, there’s certain to be a stronger call for open dialogue and collaboration globally.

And we, at Elevandi will remain to be at the forefront of making this happen. Since our inception in 2021, we’ve been pushing conversations that matter to the fintech industry to help global organisations stay abreast of current issues. Driving the adoption and growth of fintech globally is in our DNA, and we will continue to raise the bar in 2023 through our different platforms.

Ultimately, the future of the fintech industry is in our hands. While it is uncertain what the economic and industry landscape will look like over the coming months and years, coming together will not only help us weather the storms of uncertainty but also serve as a burgeoning economic lifeline that will enable us to thrive together as a community.

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Data plays a massive role in our everyday lives, and the healthcare industry is certainly no exception. In fact, approximately 30 per cent of the world’s data pertains to healthcare. By sorting, organising, and analysing these huge datasets of health information, healthcare providers and researchers can find ways to significantly improve outcomes for patients and effectively save lives.

Accessing such data unfortunately remains a challenge due to analogue data, multiple data standards, lack of system interoperability and data privacy regulations.

During my time as a practising physician working in oncology, the onus was on the patient to facilitate the sharing of data between the different healthcare providers to coordinate care. Sadly today, the same challenge persists.

As a patient myself, I struggle to find an efficient way of keeping all the information surrounding my health conditions in a single secure place. From digital and non-digital sources, various data formats are scattered across several applications, making it difficult for me to view insights that could better manage my care.

Managing my health data takes up a lot of time, leading me and others like myself to feel overwhelmed by this arduous task. Not to mention the additional burden of actually having a health condition.

Moreover, such data is sensitive and valuable and requires protection against malicious actors. This is of growing concern, given the rise in healthcare data breaches.

Also Read: How mental health startup Intellect’s founder catalysed his personal battle with anxiety

In 2019 alone, 41.2 million healthcare records were exposed, stolen, or illegally disclosed, according to a study published in the HIPPA journal. This has far-reaching implications when it comes to fraud, discrimination and identity theft, to name a few.

A more effective approach for managing health data

Fuelled by my belief that there must be a more effective approach for managing health data between different parties within the ecosystem while simultaneously preserving patient data privacy, I co-founded Jonda Health, a health tech platform.

At Jonda Health, we are currently building a technology stack to help open the doors for data silos, regulate data flow, and use the right ‘valves’ to direct the data to the right place where and when it is needed.

Given the sensitivity of health data, we do not use open-source software integration. Instead, we leverage multiple layers of encryption, including that of the database, tables and data, for added protection against breaches. For the data level encryption, we use zero-knowledge encryption – an encryption process where user data is always secured, with only the user having the key needed to access and decrypt it.

We also employ our own proprietary real-time audit system to detect hack attempts and comply with HIPPA, GDPR and PDPA to ensure health data is adequately protected.

As we continue to build our tech stack, we have deployed our existing technology to a patient-facing application called Jonda. Jonda helps patients today by empowering them with their data regardless of provider or geography. To do so in a meaningful way, the user-centric app has been built with patients in mind so that it is easy to use.  This goes beyond UI and UX to include functionality based on human behaviour.

Also Read: How telemedicine can revolutionise the veterinary world?

For example, when a user is tracking their conditions and looking for a specific biomarker (such as LDL Cholesterol) in their records, they will be able to find this easily even if the biomarker is coined differently (i.e. Low-density Lipoprotein Cholesterol).

With each laboratory calling the same test something different, tracking the biomarker can be a challenge. To address this, we have created our own data dictionaries and enabled reverse search. A reverse search provides users with a convenient way of finding records or data using alternative names.

As a patient myself, I use our patient-facing application to manage my health by keeping all my health data in a single secure place and keeping track of my biomarkers. This is incredibly helpful as it has helped me to finally get rid of my box of paper medical records where I couldn’t find anything anyway.

Not to mention that each laboratory has a different unit of measurement for the same blood test, which made it extremely challenging to keep track of my biomarkers over time. The biomarker trends on the app helped me track my health data and uncover my iron deficiency, where I got to notice a downward trend in my iron count over a two-year period. I was then able to request the necessary laboratory tests and seek the appropriate care.

As we look to the future, there will be even more health data generated thanks to the increased digitalisation of healthcare with a rise of wearables, medical IoT and the like of it.

In addition, we will start to see more attention paid to data veracity, data privacy, data security, data usage rights and compliance thereof.

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I am now the ambassador of a city-state. No, not a real country like Singapore, but a metaverse game and virtual city-state built entirely on the blockchain: Cryptopia. 

As the recently appointed Cryptopia Ambassador for the Philippines, I represent our city-state to the outside world — in particular, the Filipino community. This is my role in the real world.

Within the metaverse, I have chosen to join the Traditional Faction, which, along with Tech, Eco, and Industrial, is one of the four Factions that have different views on how best to run a Cryptopian society.

Within Crytopia, you can choose to play for free as an adventurer, build your reputation, and earn digital assets by completing quests. Or you could buy NFTs (non-fungible tokens) from the start and build a business empire as a tycoon by claiming virtual land, profiting from its resources, and employing other players.

Also Read: “See you in the metaverse” – Yours, life

By being completely built on the blockchain, Cryptopia is not only a Web3 game but also, in a way, a model for the decentralised future of our real world.

Much ado about the metaverse

Cryptopia is part of the second generation of blockchain games, which are moving away from the old play-to-earn model that the meteoric rise of Axie Infinity made popular. It is also an example of a metaverse.

Yes, that much-hyped buzzword that Mark Zuckerberg is betting the future of his company on, to the point that he renamed Facebook, Inc. to Meta Platforms, Inc. in 2021.  

Yet what exactly is the metaverse?

Like “cyberspace”, which was first coined by the Father of Cyberpunk, William Gibson, in his 1982 short story “Burning Chrome” and later popularised in his 1984 debut novel “Neuromancer”, the term “metaverse” comes from science fiction.

It was Neal Stephenson who first coined “metaverse” in his 1992 science fiction novel “Snow Crash” to describe an immersive virtual realm that users accessed via VR goggles and explored through computer-generated avatars.

Since much of science fiction eventually turned into science fact, we are now living in a world where the metaverse is a reality. Just look at the recently concluded CES 2023 in Las Vegas, where both Web2 and Web3 companies presented their own visions for the metaverse.

“A common thread throughout CES was the creation of frictionless experiences that focus on what fans and communities really want. These experiences also need to be delightful – which will prove key to mainstream metaverse adoption.

“‘In the metaverse, we are all world builders, and we all have a chance to build,’ Hackl concluded. ‘At the end of the day, it’s about people.’”

To VR or not to VR

While Zuckerberg seems convinced VR is the way, different paths to the metaverse exist. And while a metaverse doesn’t necessarily have to be built on Web3 – in fact, many metaverses now are Web2 ones – I’m convinced that blockchain technology is what will lead to mainstream adoption of the metaverse.

First of all, Web3 games and NFTs (now called digital collectibles by mainstream brands such as Starbucks) have proven the allure of owning digital assets and having the ability to profit from them or gift them to others.

Also Read: 7 trends changing the reality of immersive gaming

Not only that, but blockchain and cryptocurrency can become the building blocks for DIDs (decentralised identifiers) that allow users to use one digital identity to log in to different sites and applications while protecting their privacy. Again, as part of the Web3 ethos of decentralisation.

The virtual and the real

Of course, I won’t deny the appeal of VR, which, after all, was part of the original meaning of the metaverse. In fact, I’m a big believer in VR. I was fortunate to have bought a PICO 4 VR headset during the holidays, which allowed me to watch the first VR concert of the K-pop girl group (G)I-DLE. This was streamed for free to PICO users in 10 countries, which happily included Malaysia, where I’m now based.

And if you think metaverse concerts are just a fad, think again. They are becoming so prevalent in video games such as Fortnite and PUBG Mobile that last year, the MTV Video Music Awards even added a new category for “Best Metaverse Performance“, which K-pop girl group BLACKPINK won.

The metaverse is expected to reshape society, including these five trends, in the next decade. Just as the internet created new ways to work and play, so too will the metaverse. And they won’t just be jobs involved in building the metaverse, but also jobs within the metaverse.

Apart from Cryptopia, examples of Web3 games that are creating new metaverse jobs are Ark of Dreams and GensoKishi Online. In Ark of Dreams, players can earn by performing tasks and even putting up their own businesses. Meanwhile, GensoKishi Online is bringing in big brands like Sanrio while also introducing a UGC (user-generated content)-a to-earn model that allows content creators to sell virtual items.

So don’t expect the metaverse to go away anytime soon. From the Seoul government opening up its metaverse project to the public to The Sandbox launching a Lunar New Year event in the metaverse to Lenovo introducing its Project Chronos motion-based system that might do away with VR headsets, the virtual will become increasingly part of our reality in 2023 and the years to come.

In the end, there won’t be one metaverse to rule them all. Perhaps a multiverse of metaverses, then?

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The world is going digital, and the pace at which our lives happen online is ever-increasing. In the digital world, our identities serve as gateways to access online services, be it for work or personal use. However, this very gateway is one of the most vulnerable when it comes to being exploited by hackers.

The compromising of credentials gives malicious actors to all kinds of confidential information stored on apps or services we access, potentially enabling them to enter and compromise enterprise networks and data, and more.

According to a 2022 study by Identity Defined Security Alliance (IDSA), 84 per cent of businesses surveyed had experienced a data breach due to identity-related vulnerabilities in the past year. What’s unfortunate is that, in hindsight, 96 per cent of those attacked indicated that focusing on better identity-related security practices could have prevented or at least minimised the impact of the breach suffered.

The prevalent approach of passwords and multi-factor authentication is clearly failing at protecting our data online. And with the upcoming Web3 movement that is slowly gaining traction across every sector and industry, it’s high time to relook at identity and access management.

Two-factor authentication and multi-factor authentication technologies also lack the resilience to tackle the digital transformation that Web3 will bring about. Digital identities based on the blockchain could offer some hope, not just for the Web3 wave but also for existing Web2 services for enterprise and personal use.

What are decentralised digital identities (DIDs)?

As the name suggests, decentralised digital identities (DIDs) are created and stored on blockchain networks in a trustless, permissionless, immutable, and cryptographically secure manner.

Powered by distributed ledger technology, these blockchain-based IDs are tamper-proof and nearly impossible to spoof or compromise. Storing highly confidential data on the blockchain, such as our credentials or identities, also enjoy the power of decentralisation – eliminating a single point of failure, such as a database that can be hacked and leaked by threat actors.

Also Read: How a decentralised localisation and building a community of trust can lead to global success

The blockchain-based infrastructure on which DIDs are developed, maintained, and used makes them not only more secure but also far more versatile. Unlike our email addresses that are used to create accounts on various online services and require passwords that are cumbersome to remember, update frequently, and manage, DIDs are inherently more resilient to hacks.

Security is inbuilt into a blockchain network, offering higher assurance that your digital identity on the blockchain remains protected and your data safe. DIDs offer a wide range of use cases, from accessing decentralised applications (dApps) in Web3 to handling robust identity and access management within enterprise networks – hosted centrally, in the cloud, or even in an IoT environment.

How do DIDs work?

A digital identity created on the blockchain can contain confidential information about a user, such as a name, password, government-issued ID data, IP address, device data, date of birth, and more. It can serve to authenticate the user’s identity online, but based on infrastructure that enjoys several security-related benefits of the blockchain.

Blockchain-based digital identities can leverage real-world off-chain data, store them securely on the blockchain, and be used to generate unique and tamper-proof public and private keys. The user can then use the public keys to gain access to connected online services that support DIDs, while the private keys secure the user’s DID.

Zero Trust: Enhancing the power of digital identities (DIDs)

A decentralised digital identity offering can be further secured using robust cybersecurity technology such as Zero Trust. The Zero Trust security framework works on the principle of “never trust, always verify”, offering micro-segmentation of the application of DIDs.

Zero Trust-powered digital IDs developed on blockchain technology can be used as many times as required to authenticate access to each and every online service through each and every device required or operated by the end user. It takes no chances and offers higher control over access management to administrators and developers offering online services to consumers/end users.

What can decentralised digital identities be used for?

There are several applications where a solution like the one discussed above could provide robust security. Here are some of the most common applications of Zero Trust powered DIDs:

Web3

Web3 is the decentralised web where the concept of conventional identity ceases to function. Accessing a wide host of Web3 dApps is possible with a single digital identity.

Such a DID can be used to access online services in the decentralised internet – the future of how we live and work online, be it for gaming, decentralised finance (DeFi) services, metaverse, social networking, and even work.

Traditional enterprise cybersecurity

Several organisations worldwide have already started exploring the use and deployment of blockchain-based services, both internally and for customer-facing applications. These decentralised services offer higher levels of security and privacy for enterprises, their employees, and their consumers.

Also Read: Crypto governance: Adopting a decentralised approach to governance

However, to truly enjoy the benefits of this superior technology requires shedding conventional approaches to securing it and adopting more capable cybersecurity technology.

This is where Zero Trust powered DIDs come in – they bring in higher levels of security to access blockchain-based enterprise and infrastructure services. In addition, they are also more scalable and flexible than traditional identity and access management solutions, offering cost efficiencies unseen previously.

Challenges in the adoption of DIDs

Now that you’ve read so far, you must have realised the truly game-changing potential of this emerging technology. However, what’s interesting is that DIDs have been around for a few years now – they’re not exactly brand new in the tech industry.

However, their adoption remains extremely low among organisations, even the tech-savvy ones that have moved enterprise apps and services to next-gen technologies like cloud, IoT networks, or even the blockchain itself. This is because of severe apprehension among Information Security executives towards this decentralised technology.

The hesitation in upending a conventional approach and trying something radically different that requires significant change keeps most enterprise IT leaders away from enjoying the benefits that blockchain-based DIDs have to offer.

Adopting and driving such robust technology into the mainstream requires IT leaders to convince their corporate peers of this technology’s potential. They must be willing to experiment with DIDs, launch pilot projects internally, assess their effectiveness and monitor the improved security and cost efficiencies on offer.

Final thoughts

The cyber threat landscape is rapidly evolving, and hackers are innovating at a faster pace than businesses and consumers. It’s time to stop playing catch-up and deploy reactionary solutions to solve cybersecurity challenges.

Technology like DIDs can give enterprise cybersecurity a much-needed boost and secure their sensitive data and applications not only from present-day vulnerabilities but also those that could arise in the future.

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