The startup scene in Indonesia has undergone tremendous growth in recent years, making headlines across the globe. With a combined startup valuation of USD 34 billion, its capital city, Jakarta, is ranked third on Startup Genome’s 2021 “Emerging Ecosystems” list in 2021, and ranked 12th in 2022. The nation’s prowess in breeding domestic unicorns—13 as of 2022—has received a lot of attention. 

While these facts prove the scope and opportunities in the country, they also indicate the kind of fierce competition brewing within the market. Today, capital alone is not enough for a new business to make its mark. A wide range of support from various partners and collaborators has become a must. ​​As such, strategic alliances are the only way to gain access to the range of support needed to have a competitive advantage.

Furthermore, factors like political unrest worldwide, wars, trade stand-offs, and a softening market are making it even more pertinent to function in collaborative ecosystems where businesses step out of silos and help each other grow while meeting changing consumer demands. 

Key elements needed to gain competitive advantage in today’s climate

Guidance, consultancy, and mentorship – Entrepreneurship is an arduous journey — at least only one-third of startups reportedly successfully returned their investors with a profit. According to research by a professor at Harvard Business School, one of the main reasons behind the failure of startups is the lack of proper guidance, consultancy, and mentorship.

In the absence of an expert who can nudge the business in the right direction, when a startup starts to fail, existing investors shy away from providing follow-on finance, and potential new investors may be deterred. It becomes harder to pivot when it costs a lot of money and takes weeks or months to determine whether new strategies are effective.

Entrepreneurs in that scenario are unable to afford costly mistakes, but mistakes are all the more likely due to a lack of prior experience. This becomes a vicious cycle eventually leading to the demise of the business.

Also read: Get to know Sendbird at the Echelon Asia Summit 2023!

Subject matter expertise – The issue of a small or nonexistent market for the product a company has developed is another reason behind business failure, and this stems from the lack of subject matter expertise. Such scenarios remind us of the adage “Little knowledge is a dangerous thing”.  Almost 10% of startup post-mortem founders discovered that, regardless of how strong a concept is, a lack of love for a domain and a lack of expertise were major reasons for failure.

Access to tools that will streamline and bolster your operations – In today’s digital-first world, access to the right tools is no longer a mere choice. It has grown to become a necessity. Technology has disrupted life as we know it and any business that doesn’t leverage the latest tech solutions and tools to tap into consumer engagement, lead generation, sales, product development, biz dev, and basically, any aspect of business — is losing out and will eventually fail.

Alpha-X Initiative: Creating a collaborative and resourceful ecosystem where startups can thrive

Given the highly competitive landscape and the need for the right mentorship as well as access to the right tools, Alpha JWC, a Southeast Asian early-to-growth stage venture capital firm that made its debut in Indonesia in 2015 is stepping up and going beyond the traditional roles of a VC firm. 

Alpha JWC has launched the Alpha-X Initiative, seeking to increase the chances of success of the founders of their portfolio companies. Through upskilling, enablement and support, the regional partnerships will also give startups access to competitive service rates through Alpha JWC.

In addition to the platform and technology-related training and workshops, another area of focus is assisting the entrepreneurs in the Alpha JWC portfolio in creating their brand narratives and expanding their reach. This is crucial for early-stage founders who still need to craft their brand strategies on a limited budget and with limited resources.

Also read: Nurturing Asia’s next generation of entrepreneurs and innovators

In the pursuit of enabling and empowering startups to achieve success in today’s climate, Alpha JWC recently announced strategic partnerships with Google APAC,  The Hoffman Agency, and leading regional content house, Hepmil Creators Network, as knowledge partners. The partnerships aim to extend and expand Alpha JWC’s network support to its portfolio founders across Southeast Asia to receive the best training, seminars, and consultation from subject matter experts in marketing, branding, technology, digital, and content creation.

“Alpha-X is built upon our experience and expertise. That is what’s unique about us: we’ve been there since 2015, 2016; we see the development and dynamic of the startups both from our portfolio companies and non-portfolio companies. So we are accumulating this network, knowledge, and expertise not only in the form of a talent pool but also an ecosystem network pool,” Erika Go, Alpha-X Partner of Alpha JWC Ventures, explained.

Through Alpha-X, Alpha JWC creates value for its portfolio companies

“Founders face immense challenges running their start-ups, and funding itself is not enough to help them succeed or navigate the ups and downs in their journeys. We strongly believe that we need to do more than capital injection,” remarked Erika Go.

With the Alpha-X Initiative, Alpha JWC Ventures acknowledges and welcomes the active role it must play in assisting and supporting the founders in its portfolio as it continues to invest in outstanding entrepreneurs.

Also read: 9Unicorns announces 3rd Edition of DDay on April 18th 2023!

“Alpha-X is part of our mission to create value for our portfolio companies and increase their chance of success. Alpha-X is built upon our unique experience and expertise in talent network and ecosystem, recruitment and retention, compensation and benefit strategies, and organisational capability development that we have accumulated over the years. These intangible assets can be leveraged to assist startups in every season of their startup journey,” added Erika Go. 

If you are curious to launch your business and give it a headstart from the get-go, be a part of the Alpha JWC ecosystem. Log on to https://www.alphajwc.com/en/ to learn more.

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Photo by 祝 鹤槐 via Pexels

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This article is produced by the e27 team, sponsored by Alpha JWC

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Throughout history, people have been thinking about how to make cities more liveable, efficient, and sustainable. The Romans created sewage systems and public squares, which were fortified during the Middle Ages to prevent flooding.

Now, countries have robust water systems that may use drainages, reservoirs, and dams to address modern sustainability, environmental and energy challenges.

Why are cities becoming smarter? 

The International Monetary Fund (IMF) predicted three pivotal events that may hinder economic growth in 2023: the Russo-Ukrainian war, the increasing cost of living and China’s economic slowdown. These events have led to a drop in the global supply of energy and an increase in the prices of food and other necessities.

IndSights Research gathered that the current industry sentiment was at a negative nine per cent from October to December 2022, which may have been a result of the unfavourable global economic situation. 

In the digital age, cities aim to be efficient, sustainable, and liveable for citizens. Neglecting the demand for affordable housing, better transportation, and convenient services has consequences for 56 per cent of the world’s population living in cities. Smart cities use digital tech to enhance the quality of life and boost economic competitiveness amid rapid urbanisation.

Do smart cities need to be people-first? 

To transform conventional cities into smart ones, digital interfaces and streamlined operations may seem like an easy solution, but practical and social issues must be considered. For instance, smart home infrastructure installation may be useless for households without compatible products. 

For a smart city to fully realise its potential, countries may adopt a bottom-up methodology in the development or creation process. Amsterdam approached a quadruple helix concept for their city planning strategy by focusing on the immediate needs of the government, businesses, institutions and citizens.

A collaboration among a total of 12 public, private and educational institutions allows the four aforementioned segments to initiate and implement projects. When proven successful, these projects will extend to other cities or towns.

Elsewhere, Dubai campaigned to collect citizens’ happiness levels to facilitate improvements in infrastructure and service. This helps Dubai to improve the city as it develops.

How does smart nation Singapore work? 

Singapore differs from its international counterparts in its smart city approach. With plans to ensure that measures are economically sustainable, its smart city strategies prioritise building on economic capabilities amongst the private and public sectors.

Also Read: How data science and AI are fuelling smart city goals

The Data Innovation Programme Office (DIPO) and the Networked Trade Platform allow the government to actively partner with firms to solve real-time business concerns, while the Smart Nation Co-Creating with People Everywhere (SCOPE) programme gathers public feedback for feasible tech products.  

Informed by experiences and research, Singapore delivers user-focused, cutting-edge tech, setting a sturdy foundation for smart city development and potential financial benefits. Nonetheless, technology can only achieve its purpose and potential when designed with human and social considerations. 

How are smart cities reshaping transportation and urban mobility? 

Communities require access to necessities and vital services. Smart cities are reshaping transportation and urban mobility by leveraging the latest technologies to optimise traffic flow and improve public transportation. 

Intelligent transport systems and real-time traffic data optimise traffic flows, reduce congestion, and improve safety and efficiency. For pedestrians, the Walk Cycle Ride SG plan promotes efficient, convenient, and connected travel for pedestrians while reducing vehicle emissions for sustainable practices. 

Where will driverless vehicles bring Singapore to? 

The autonomous vehicles (AVs) global market will grow to US$1,651 billion by 2027 at a CAGR (Compound annual growth rate) of 12.1 per cent as smart transportation shape the future of urban mobility. They create efficient, sustainable, and liveable cities in the face of urbanisation growth. 

Singapore has conducted trials since 2015 to address urban concerns such as declining manpower and sustainability demands. While implementing AVs may not be soon, it is not stopping the country from preparing its drivers to be AV-savvy in the form of a skills and training roadmap for public transport workers.   

In addition, the transport industry in smart cities like Singapore is shifting towards sustainable and alternative modes of transportation while also investing in autonomous and connected vehicle technologies to improve traffic flow and safety. These trends not only improve overall mobility and accessibility but create more liveable and connected communities. It also serves to benefit the environment. 

Singapore’s smart health ecosystem 

Smart cities aim to provide efficient and effective services to their residents, including healthcare services. Collection and analysis of personal health records through sensor technologies and a robust telehealth system is an important part of Singapore’s answer to current and future healthcare concerns.

Singapore’s ageing population, with citizens aged 65 and above increasing to 18.5 per cent in 2022, poses a threat to the healthcare industry. In response, the healthcare industry is shifting its focus towards research and development to create better healthcare infrastructure, placing a higher value on health data than ever before. 

Interestingly, the growth rate of health data is projected to be at 36 per cent CAGR from 2022 to 2025. This unprecedented growth matches Singapore’s plans to use data to develop comprehensive, integrated smart health systems that maximise the capabilities of a tightening manpower market. At the lower level, behavioural data collected through citizen participation in physical activities can be used to formulate preventive care measures. At a higher level, data on illnesses and recovery can be used to engineer new machinery and services. 

Applications with health sensors can facilitate citizen sensing, helping the government to make sense of the country’s healthcare needs, mitigate outbreaks, and prepare for future issues. However, for a smart health ecosystem to be of value to the growth of smart cities, a collaboration between the government, healthcare providers and the communities they serve is needed. 

Also Read: Getting smarter with tech: How will smart cities look like 10 years from now? 

One in two Singaporeans is already willing to share medical information with companies if it improves their health. Medical providers can leverage users’ trust to boost trust and adoption across the industry, which can urge support for a more efficient and well-integrated healthcare system. 

The future of urban living: Opportunities abound 

Smart cities offer opportunities for growth and innovation in the real estate industry. There may be an increase in technological involvement in built infrastructure, from conceptualisation to construction, management, and maintenance. 

The usage of digital tools allows for better planning, development, and management of properties. For example, the Housing Development Board (HDB) designs estates using various environmental tools to analyse weather patterns, traffic noise, and pollution levels. Units are then designed to take advantage of wind flow, cooling the estate naturally or blocking out hubbub to provide a tranquil living environment. 

What’s Singapore’s approach to sustainable building performance? 

Government agencies have been working in tandem with private property developers to use technology to track, analyse and optimise commercial building performance. Sensors throughout the building can notice for maintenance or replacement of important areas such as lifts and air-conditioning.

As Singapore prepares itself for the Net Zero Emissions goal it aims to achieve by 2050, similar features may be seen in future smart-enabled dwellings. From easy-to-monitor energy usage levels to EV charging stations, residents will benefit from a constantly maintained living environment, improving standards of living while fulfilling a wider sustainability objective. Similar to how commercial buildings are run, residents will have the technology to provide feedback for improvements. 

Cities of tomorrow: What can businesses do today? 

Public-private partnerships can help advance smart city goals. By providing materials, technology, and education needed by the government, the private sector contributes directly to smart city planning and the economy. The public sector also benefits from firms’ insights that may result in better support for these companies. 

Businesses can leverage the plethora of government support to further their own business needs while championing smart city goals. As many of Singapore’s Smart Nation initiatives revolve around building digital societies, companies can make use of grants to implement tech, innovate or digitalise: 

• 5G Grant (for startups and SMEs) 
• Advanced Digital Solutions (for startups and SMEs) 
• Tech Access Initiative (for startups and SMEs) 

Businesses should also actively provide perspectives that may often be overlooked by authorities. These perspectives can shape policies for the benefit of industries. Through industry chats and surveys, IndSights Research found effective communication between government and industry is key to delivering and meeting public expectations, propelling the economy to the private sector’s advantage and enhancing their reputation as responsible and sustainable organisations. 

Final thoughts

As the world becomes increasingly urbanised and technology advances, the concept of smart cities is no longer just an option but a necessity for cities to progress and meet the needs of their citizens. The focus is shifting towards creating people-centred cities to enhance the quality of life through technology. 

Singapore is a leading example of this shift with its Smart Nation initiative that aims to digitise and connect the country. Transportation is being reshaped. Healthcare delivery is being remoulded. The future of urban living will also have a profound impact on the real estate industry, with co-living properties and collaborations with businesses becoming increasingly common. 

There are numerous opportunities for businesses and citizens. The key to success is collaborating with the government, other businesses, and your customers. Businesses that recognise the potential of smart cities will have the edge over their competitors.

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Getting into an accelerator run by Y Combinator, Techstars, or 500 Startups is to a founder what getting into Harvard or Yale is to a college student. Startup accelerators are an excellent way for early-stage founders to scale up their businesses. Accelerators provide know-how and collaboration with other like-minded entrepreneurs to get leads and introductions to the “right” investors.

There are many accelerators out there to choose from, and at times having specific verticals or sectors and may vary depending on where you are based at the moment. If you end up joining an average accelerator, it may affect your future follow-on funding. I also know some that even charge you for things such as participating in their programme.

As a founder, what should you look at before joining an accelerator?

Analyse and understand the level of involvement

Before signing the onboarding documents, you need to know exactly what the accelerator is offering, whether it’s advice, funding, investor introductions or office space.

If it’s giving advice, what type of specific skills and resources are they going to commit to and plan to share with you? If it’s investor introductions, what network do they have access to, and how have they leveraged it to help previous startups?

Make sure you’re able to align with it – or risk being ostracised or abandoning any support even after getting funds. Speaking to a few previous cohort startups that have joined the programme could be a good way to see if there are any red flags.

What are the motivations behind the money

Startup accelerators are usually backed by a group of people, such as successful entrepreneurs and corporates that want to have exposure to early-stage companies. They usually play the long game by taking up an early equity stake in your startup in exchange for funding to your company and for you agreeing to participate in the accelerator.

Also Read: ‘We needed a partner to unlock the true value of our assets amid economic crisis’: iPrice Co-Founder on Bukalapak deal

Accelerators are finding some type of return which can be financial or non-financial in nature. When a corporate sponsors an accelerator, is it just to look good on the annual reports? To diversify their corporate venture portfolio? Or to create an impact in the local startup space? Who are the investors behind the accelerator? What have they invested in previously? What is the risk appetite?

Understand the legal agreements and documents involved

Since most accelerator programmes will take an equity stake for their investment in your company, you have to ensure the terms set out in the definitive agreements (usually including the term sheet, accelerator agreement, subscription agreement and shareholders agreements) are accurate based on the initial term sheet. Ordinarily, they should not get undiluted shares (or anti-dilution) or even ask for a board seat. This is usually a red flag. 

Try not to grant an accelerator control over crucial decisions (also known as ‘reserved matters’) that may hamper the ability for you to progress your startup. If you are a first-time founder, getting a startup lawyer will be crucial to ensure that the terms are industry standards and the same as what you initially agreed in the initial term sheet stage.

Anti-dilution, in particular, can complicate follow-on investors and even turn off future new investors.

Discuss and be clear on the success metrics

What is the end game for the accelerator? It may be hard to figure their metrics out, but if they cannot give you a definite answer, you may wish to check former startups in a previous cohort about their experience and how they believe the programme benefited them. 

Ultimately, accelerators are profit-motivated service providers, just like other corporate entities out there. Future newcomers may want to build alternative accelerators and offer different values than the other competitors. Your startup is precious; take care of it, do your due diligence, and do not compromise on things that can hurt the business in the long term. 

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This article was first published on January 5, 2015.

One of the most difficult concepts that I have to discuss when advising aspiring startups is that a great idea can still be a lousy business. A wannabe founder will describe to me a product or service that all of their friends swear is going to be a game-changer, only to be confused (and occasionally indignant) when challenged with a series of questions that they hadn’t considered before. Often, they have spent months planning, building and scheming only to find out later that they have wasted their time on a product that no one wants, no one understands or no one will ever hear of because of 50 other competitors.

I can relate. I’ve come up with plenty of ideas that I thought would be great businesses, only to discover that they wouldn’t work because I didn’t properly assess the tremendous difficulty of building that idea into a profitable company. Building a successful company is hard enough without facing challenges that you might not be able to overcome through sheer will and creativity.

So what makes a great idea actually great? Here are the top three things that I look at when evaluating a potential new product or service:

Does it solve a problem that enough people will pay for?
Just because you found a problem and put the time and effort into solving it doesn’t mean that you will find people willing to actually pay money for a solution. For example, I ran into a business that created an awesome piece of software that significantly reduced the time and labour needed to complete huge data migrations. Sounds great, right? Unfortunately, their target customers were people who work on projects that bill per hour. They made a product that reduced the billable hours that their customers could charge their clients. And they were confused as to why no one would ever return their calls. Awkward.

Also Read: Lean Startup Machine gets Malaysian entrepreneurs to hit the streets

You need to understand your customer, their motivations and their business model before you potentially waste a lot of time and money. I have wasted more time on this mistake than I would like to admit — don’t make the same one.

Can you dominate with meaningful differentiation?
We need to recognise how easy it is to fall in love with our own ideas and create a product with meaningless differentiation. Often, the differences we highlight between ourselves and our competitors aren’t that important to the customer.

This can be a fatal flaw when trying to stand out in a crowded marketplace. You can’t dominate an industry if you can’t differentiate in ways that resonate with your customers without a lot of explanation. If the difference between you and your nearest competitor is hard to explain, then you will struggle with marketing, sales and fundraising. By the way, “struggle” is my code word for “likely to fail.”

Hockey stick growth, or just a neat business?
Just because you can find potential customers doesn’t mean that you can find enough customers quickly and easily enough. And here is the worst part: You can initially sell the idea to a few companies, thinking that you are onto something, only to realise later that you were addressing niche issues that aren’t as common as you assumed.

Also Read: Southeast Asia is experiencing a ‘wave’ of technology company layoffs

This is why you need to understand the market that you are selling into early and connect with people who have been in the industry for a long time. That way, you can correctly assess whether or not your solution applies to enough other customers to really matter. There is nothing wrong with starting a company that just pays your bills and doesn’t scale to the moon, but learn to recognise the difference so that you don’t waste you time trying to build a huge company around a limited idea.

Sufficiently answering these three questions is not a guarantee that you have a successful business on your hands, but it’s a start. And these three issues aren’t necessarily the most obvious, especially to first-time entrepreneurs. The long and short of it is that I wish that someone had asked me these tough questions about 10 years ago when I started my first company. It would have saved me a lot of wasted time — and I find that the older I get, the less I care about losing money as much I do my time.

For those of you who’ve been in my shoes, what questions would you add to this list?

Seth Talbott started his career in IT and software development 15+ years ago. Since then, he has run a global data center for a major software company, been CEO of the award-winning Longevity Medical Clinics, and founded numerous companies, including Promedev and AtomOrbit which VentureBeat named one of the most innovative early-stage startups in the 2013 Innovation Showdown in Cloud Software. He’s also a co-founder of Preferling. Follow him @sethtalbott.

The Young Entrepreneur Council (YEC) is an invite-only organisation comprised of the world’s most promising young entrepreneurs. In partnership with Citi, YEC recently launched StartupCollective, a free virtual mentorship programme that helps millions of entrepreneurs start and grow businesses.

The post 3 questions to ask before turning your good idea into a successful company appeared first on e27.

Indonesian and Malaysian startups dominated the VC investments scene in Southeast Asia this week amidst an unfavourable economic climate and funding winter.

Take a look at the top headlines of the week.

Saison Capital rolls out new token fund

Saison Capital, a Singapore-based VC firm, announced the launch of a new token fund Saison Crypto. The average ticket size is between US$200,000 and US$500,000 with follow-on support. Saison Crypto’s first token-only investment is in the pipeline. This builds on top of its 30 existing investments which are primarily a combination of equity and tokens.

Soft Space closes US$31.5M Series B1 round

Soft Space, a Malaysian fintech-as-a-service firm, has closed a US$31.5M Series B1 round. The investors are Southern Capital Group, transcosmos, strategic investor JCB, and Hibiscus Fund. The funds will help expand its global footprint and widen its customer base by accelerating the innovation of its full-stack payments platform while expanding into next-generation technological solutions.

Qmed secures US$1.2M funding

Malaysian healthtech startup Qmed Asia has secured US$1.2M in a pre-Series A funding round through an equity crowdfunding (ECF) campaign on Leet Capital. As many as 110 investors participated in the campaign, including angels, the Malaysia Co-Investment Fund (MyCIF), and 1337 Ventures. The funds will be used to expand its operations into Saudi Arabia and Indonesia.

Hybrid work becoming the status quo in SEA

Hybrid work is becoming the status quo in Southeast Asia, with 45 per cent of companies providing it and only 12 per cent offering remote work options to employees, finds a joint study conducted by Glints and Monk’s Hill Ventures. While in Singapore, about 63 per cent of startups offer hybrid work and 43 per cent full-time office work. In Indonesia, it is 59 per cent (hybrid) and 33 per cent (full-time office work). Vietnam has bucked the trend, with 83 per cent of companies offering full-time office work, while only 11 per cent favour the flexibility of hybrid work.

Sinar Mas subsidiary invests in 01Fintech

01Fintech, a growth-stage fintech private equity (PE) firm founded by ex-Ant Group executive Kenny Man, has received an undisclosed sum in funding from Sinar Mas Financial Services, a subsidiary of Indonesian conglomerate Sinar Mas Group. The PE firm will leverage its market insights, investment experience, and technical and operational expertise to transform and operationalise Sinar Mas Financial’s fintech vision and ambition. At the same time, Sinar Mas Financial will leverage the 01Fintech team’s specialisation to drive synergies amongst the business units and various fintech investments across the entire Sinar Mas Group ecosystem.

ChopValue scores US$7.7M funding

ChopValue, a Canadian and Singaporean startup designing and manufacturing products using an innovative, high-performance material engineered from recycled chopsticks, has closed a US$7.7 million funding round. Two unnamed high-profile technology entrepreneurs with expansion interests in Asia Pacific and Europe led the round. Several corporate VC funds and existing investors (VC funds in the climate-tech space and institutional investors such as EDC and BDC) also participated. The funds will be used to expand ChopValue’s operations, mainly to serve B2B partnerships better. The focus will be on increasing production capacity and developing new product lines.

Fresh Factory nets US$4.15M

Indonesia’s integrated cold chain fulfilment and enabler startup Fresh Factory has raised US$4.15 million in pre-Series A funding led by SBI Ven Capital through its joint fund with Kyobo Securities and NTUitive. Existing backers East Ventures and Trihill Capital and new investor PT Tap Applied Agri Services also participated. Fresh Factory will utilise the funds to scale to over 100 fulfilment centres across 50 Indonesian cities by the end of 2023. The list includes Sumatra, Sulawesi, Kalimantan, and Java.

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Echelon Asia Summit 2023 brings together APAC’s leading startups, corporates, policymakers, industry leaders, and investors to Singapore this June 14-15. Learn more and get tickets here. Echelon also features the TOP100 stage, where startups can pitch to 5000+ delegates, among other benefits like connecting with investors, visibility through the platform, and other prizes. Join TOP100 here.

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