We are slowly transitioning into a world where most countries will see female participation in their economies. This monumental paradigm shift can not, and should not, be ignored. The United Nations had projected that by 2022, 59 per cent of all exporting countries would employ women, eclipsing the current 40 per cent.

Furthermore, the female entrepreneurial ecosystem has only diversified and expanded due to the acceleration of e-commerce and digitalisation. The World Bank reports that female-owned enterprises in the United States are growing at more than double the rate of all other companies. The Bank says women entrepreneurship is also increasing in developing countries, with eight million to 10 million formal SMEs with at least one female owner.

In theory, one can argue that there has always been a better time for women entrepreneurs to thrive – but in practice, it is significant to note that women still need to contend with many challenges compared to their male counterparts.

“While the number of women operating their own business is increasing globally, women continue to face huge obstacles that stunt the growth of their businesses, such as lack of capital, strict social constraints, and limited time and skill,” the World Bank explained in the Female Entrepreneurship Resource Point.

This causes a number disparity for women leaders, entrepreneurs and business owners. For instance, closer to home, the Mastercard Index of Women Entrepreneurs finds that although women in Singapore make up 44 per cent of the nation’s workforce, only a mere quarter of business owners are women.

Hence, it is vital to underscore and bring awareness to how embedded finance services, such as MatchMove’s, are an increasingly crucial cornerstone for the success of women’s entrepreneurship and breaking down barriers which obstruct it.

Challenges of women entrepreneurs

The most glaring obstacle that women face globally is the lack of access to funding and capital, and oftentimes – this is not because of a lack of trying. According to the Gallup World Poll, significant differences exist in access to financial services between women- and men-owned businesses in developing countries.

Also Read: Not much is being done to address the gender gap in the VC space: Carman Chan of Click Ventures

According to the World Economic Forum, women comprise 55 per cent of the world’s unbanked population. As women have less access to basic banking services such as checking and saving accounts, many rely on their savings, borrowings from family and friends, or micro-loans to finance their businesses.

Credit Suisse reported that the underlying issue is that more than one billion women are excluded from the formal financial system today, with 70 per cent of women-owned small-​ and medium-sized enterprises lacking access to banking and credit services.

Startup founders or those familiar with the gruelling process of getting your business off the ground would understand that the first step, usually the pitching process, is the hardest. Women entrepreneurs have found it even harder to raise capital and funding.

According to Crunchbase data, only approximately 2.3 per cent of venture capital goes to women entrepreneurs. As a result, only two per cent of women-owned startups generate US$1 million, while men are 3.5 times more likely to achieve this feat.

Thus, the lack of access to financing also hinders women entrepreneurs from scaling their businesses. By relying mainly on microloans, women entrepreneurs lack the capital to make long-term business investments.

It is no wonder that women-owned businesses tend to be informal, home-based and small-scale, especially in traditional sectors like retail and services. The World Bank states that globally, at least 30 per cent of women not working in the agricultural sector are self-employed in the informal sector.

How embedded finance is breaking barriers

Clearly, if we want women to break this glass ceiling, we need to relook at their access to adequate and long-term financing. Traditional financial institutions and organisations have not been able to address the rising needs of women entrepreneurs, mainly because they are structured differently with specific and more conservative lending criteria.

Also Read: Entrepreneur Trung Le wants to close Vietnam’s gender gap in tech

This paves the way for embedded finance, which integrates banking and payments services dispensed by non-banking entities. In short, it allows entrepreneurs to offer l financial services to their customers through their platforms, breaking down long-established barriers of financial exclusion.

Conversely, consumers get access to financial services through non-banking companies and, conveniently, at a one-stop day-to-day platform they use, such as ride-hailing apps and e-commerce sites. This not only improves their financial access but also allows them to generate better credit trustworthiness through the user data they help generate. This data goes into the decision-making of neobanks and other embedded finance providers to disburse loans, credit or instalment schemes, and to offer insurance products.

Ground-breaking in its own right, the role of embedded finance thus becomes significant in paving the way for the unbanked and underbanked, especially those who operate small businesses. It could also help women entrepreneurs close financing gaps in their processes as embedded finance streamlines intra-organisational, consumer-to-business and business-to-business processes, allowing them to spend, lend and send money effortlessly. Embedded finance will also enable female entrepreneurs to accrue cost-reduction and risk-reduction benefits, which will help them scale up more confidently.

Fintech-focused firms have also catalysed the growth of women entrepreneurs by incorporating newfangled technological solutions into non-financial services, building their confidence and business acumen.

For instance, some embedded finance enablers offer solutions in functional areas such as loyalty programmes, customer database management and scaling into e-commerce, allowing smaller entrepreneurs to focus on growing their business with these layers enabling that expansion.

By taking away the need to undergo and meet the conventional financial processes and requirements when running a business while providing them with the business tools to expand and professionalise, embedded finance effectively acknowledges and removes the barriers, women entrepreneurs face in scaling up and succeeding.

Bain & Company estimates that embedded finance will exceed US$7 trillion transactional value by 2026 in the US alone. In the Asia Pacific region, the embedded finance industry is expected to increase 39.7 per cent annually to reach US$108 billion by the end of this year. This is slated to accelerate to US$140.8 billion by 2025.

This pacy growth could help catalyse other social benefits. Women entrepreneurship, for one, can benefit from the surge of embedded finance. For that, governments, non-governmental organisations and other corporations must have a clear plan to bring embedded finance to the ground.

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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.

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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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In the past, most companies tried to increase their profitability by cutting corners, meaning that they strived to optimise their operational efficiency and lower costs.

However, the increasing globalisation meant that when lowering costs, companies were engaged in the race to the bottom, which refers to the notion that a price war would eventually wipe out any profitability and lead to unhealthy competition.

Therefore, companies also realise that they cannot cut costs forever without reducing product quality, and staying in business. It is crucial to generate more value for customers.

The elusive concept of customer values

In the first place, it is important to understand the meaning of customer value. Interestingly, despite the prevalence of the concept, not all public research agreed on a universal definition of customer value, citing the fact that value is highly relative and varies with customers’ life perspectives, cultural beliefs, and priorities.

Also Read: Achieving product-market fit: The ultimate guide to growth, strategy and positioning

Regardless, in general, customer value can be measured as the difference between the perceived benefits that customers derive from the consumption of the products or services and the price that customers had to pay to obtain the products or services. This definition highly underlined the importance of customers whose opinions contributed to the perceived value of the product or services.

With the evolvement of the product development process and customers’ preferences, it is argued that customers wish to fulfil more than one need when consuming a product/service, looking for more than just one value.

In fact, researchers claimed that customers want to satisfy five different objectives from their consumption, including functional values, social values, emotional values, epistemic values (the new knowledge and wisdom associated with product and service consumption), and conditional values (the difference in utility level between different product consumption).

Another framework to measure customer value consisted of three fundamental dimensions, including product quality (the perceived utility of the product), delivery methods, and the overall experience of the customer at all touchpoints of their consumption journey. Accordingly, while companies can control some aspects of their product’s value to customers, there are many things outside of their control, requiring businesses to look at customer value in its entirety and think of a holistic approach to improving the total experience of the customers.

The central role of customers in determining customer values

Regardless of the definition, central to the customer value concept is the role of the customer, who ultimately determines the value of the products. Therefore, it is vital to learn about the kinds of needs that customers seek to satisfy through product consumption.

There are various theories to uncover customers’ needs; nevertheless, the most established theory is probably Maslow’s Hierarchy of Needs.  According to Maslow’s Hierarchy of Needs, there are five levels of needs that a person might have, and to move up the hierarchy, the lower levels of need must be satisfied first. Specifically, at the very bottom of the hierarchy is the physiological need which can be satisfied by the functional values of the products. The next level of need is safety, including financial safety, healthcare, etc.

Once this level of need is met, customers look to fulfil their social also needs, allowing them to connect with other people in society, gain a sense of belonging and form long-lasting relationships. These two levels of needs can be met with the product’s social and emotional values.

Also Read: Designer product marketplaces on the rise: Is there room for more?

Next, on the higher level, customers hope to have more self-esteem and actualise their full potential, which can correspond with the social, epistemic, and conditional values of the product and service.

Engaging open innovation and customer involvement

Considering the diverse, complex, and fast-changing natures of customers’ values and needs within the current economic and social context, it is crucial for companies to help customers obtain more value and achieve more goals from production consumption.

More significantly, businesses should not just focus on some individuals but strive to serve as many customers as possible. Therefore, they must identify and define some shared values that are common across their vast customer base. To accomplish this goal, businesses must move beyond individual needs to recognise social needs and integrate prevailing social shared values into their customer value creation to motivate social progress through meeting individual needs.

Consequently, one way to do so is to shift from an inside-out idea brainstorming and innovation process to outside-in value creation which invites external stakeholders and engages outside resources in the process. Indeed, open innovation has become the cornerstone of contemporary marketing practices, taking advantage of the massive pool of ideas and data from around the globe to select the most common causes and values for the company to satisfy.

In sum, by understanding the concept of customer values, businesses can better serve their customers, enhance the perception of their products’ worth, and retain their customer satisfaction and loyalty.

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As a startup, it can be tempting to focus solely on developing your product or service and growing your customer base. However, neglecting to address the legal aspects of your business can lead to costly and time-consuming challenges down the line. That’s why seeking legal advice and building a solid legal foundation for your startup is essential.

From choosing the right legal structure for your business to navigating employment law and HR issues, startups face a variety of legal challenges. Failure to comply with labour laws, data privacy regulations, or securities laws can result in lawsuits, fines, and reputational damage. In some cases, legal issues can even threaten the survival of your business.

In the following sections, we’ll explore some of the most common legal challenges faced by startups and provide essential advice and insights to help you navigate these challenges with confidence.

Building a solid legal foundation

Choosing the right legal structure for your business is a crucial decision that can have long-term implications for your company. Factors such as ownership structure, liability, and tax implications should all be carefully considered. Common legal structures for startups include sole proprietorships, partnerships, and corporations.

Once you have chosen the right legal structure for your business, you’ll need to register your business and obtain the necessary licenses. This can vary depending on your location and industry but may include business registration, tax ID numbers, and professional licenses.

Protecting your intellectual property is another critical aspect of building a solid legal foundation. This can include registering trademarks, copyrights, and patents to prevent others from using your intellectual property without permission.

Employment law and HR issues

As your startup grows, you may need to hire employees or contractors to help you run your business. However, navigating employment law and HR issues can be complex. From job postings and interviews to employee handbooks and benefits, there are a variety of legal considerations to keep in mind.

Also Read: Jeffrey Bleich: Law attorney, US Ambassador in Australia, and leader for global expansion

When hiring employees or contractors, it’s important to understand the legal requirements around discrimination, equal pay, and other labour laws. Creating an employee handbook can help you communicate your policies and expectations to your employees and ensure compliance with labour regulations. Additionally, offering competitive benefits can help you attract and retain top talent.

Complying with labour laws and regulations is essential for avoiding costly lawsuits and protecting your business’s reputation. Working with an experienced attorney can help you stay up-to-date on changing regulations and navigate any legal challenges that arise.

Financing and securities law

One of the biggest challenges for startups is securing funding to grow their business. There are several options available, including venture capital, angel investors, crowdfunding, and traditional bank loans. Each funding option comes with its own legal considerations, and it’s important to understand the securities laws and regulations that apply to your funding source.

Securities laws regulate the sale of stocks, bonds, and other financial instruments and aim to protect investors from fraud and misrepresentation. As a startup founder, you’ll need to comply with securities laws when raising capital and selling shares in your company. 

In addition to complying with securities laws, it’s important to protect the rights of your investors. This can include providing regular updates on your business’s progress and ensuring that your investors have a say in major decisions.

Data privacy and cybersecurity

As a startup, you may collect and handle sensitive customer data, such as personal information and payment details. This makes data privacy and cybersecurity a critical concern. In recent years, data breaches and cyber-attacks have become increasingly common and can result in reputational damage, legal liabilities, and financial losses.

To protect your customers’ data and comply with data privacy laws, it’s important to implement strong cybersecurity measures, such as encryption and multi-factor authentication. 

Contracts and agreements

Contracts and agreements are a fundamental part of doing business, and startups are no exception. From drafting and negotiating contracts with vendors and suppliers to creating partnership and collaboration agreements, contracts play a crucial role in protecting your business’s interests.

When drafting contracts, it’s important to ensure that they are legally binding and enforceable. This can involve including specific terms and conditions, such as payment terms and deadlines, and including dispute resolution mechanisms.

Additionally, startups may need to navigate non-disclosure agreements (NDAs) and non-compete agreements. NDAs are designed to protect your business’s confidential information from being shared with third parties, while non-compete agreements can prevent employees or contractors from leaving your company and joining a competitor.

Also Read: Why SEA’s startup ecosystem is making a strong case for legaltech

By working with an experienced attorney, you can ensure that your contracts and agreements are legally sound and protect your business’s interests.

Litigation and dispute resolution

Despite taking proactive steps to avoid legal issues, disputes can still arise in the course of doing business. It’s important for startups to be prepared for potential disputes and have a plan in place to address them.

One approach to resolving disputes is through negotiation and mediation. This involves sitting down with the other party to discuss the issue and try to find a mutually acceptable solution. Mediation can be especially useful in cases where both parties want to preserve their business relationship.

In some cases, litigation may be necessary to resolve a dispute. However, litigation can be time-consuming and expensive and can damage your business’s reputation. As a result, it’s often considered a last resort.

To prepare for potential disputes, startups should ensure that they have proper documentation and records, such as contracts and agreements, in place. Additionally, having a solid understanding of your legal rights and obligations can help you make informed decisions and prevent disputes from arising in the first place.

Final thoughts

Startups face a variety of legal challenges that can be complex and daunting. Building a solid legal foundation, addressing employment law and HR issues, understanding financing and securities law, protecting data privacy and cybersecurity, and navigating contracts and agreements are all essential for startup success.

By working with an experienced attorney, startups can ensure that they are complying with the relevant laws and regulations, protecting their interests, and mitigating legal risks. Ongoing legal support can help startups stay up to date with the latest legal developments and address legal issues as they arise.

Ultimately, investing in legal advice and support is a crucial step for startups that want to succeed in today’s competitive business landscape.

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A few days ago, dispute resolution specialists and former Partners of Rajah & Tann, Danny Ong and Yam Wern-Jhien, launched the boutique law firm Setia Law in Singapore. The firm will handle dispute resolutions, fraud and financial crimes, debt restructurings, and insolvencies.

According to the duo,  as a financial and legal services hub, Singapore is expected to see significant action as it continues to cement itself as the jurisdiction of choice for cross-border financial disputes and debt restructuring.

e27 caught up with Ong and Wern-Jhien to learn about the firm, the process of dispute resolution, the myth around dispute resolution, and some of the cases they handled in the past.

Edited excerpts:

Can you tell us more about the founding of Setia Law and what inspired its focus on dispute resolution, fraud and financial crimes, and debt restructuring and insolvency?

As a financial and legal services hub, Singapore is expected to see significant action as the country continues to cement itself as the jurisdiction of choice for cross-border financial disputes and debt restructuring.

Singapore’s attractiveness for restructuring and insolvency, thanks to its ever-progressive legal framework, will demand specialist advisors with the experience and track record to service a global clientele and the ability to move quickly.

In 2022, many troubled cryptocurrency platforms turned to Singapore as their restructuring hub, including Zipmex, Vauld, and Holdnaut, following the onset of the crypto winter. There are also important “test” cases and positive outcomes that will likely increase confidence in Singapore as the centre of gravity for Asian restructurings, such as Nam Cheong Limited from Malaysia, PT MNC Investama Holdings from Indonesia, PT Modernland from Indonesia, and Malaysian video streaming service iFlix, which have completed successful debt restructuring exercises via schemes in Singapore.

Against this backdrop, the time was right to launch Setia Law – a firm with a unique mix of specialism including:

• local knowledge and technical specialists that are applicable across multiple jurisdictions,
• a network of leading professional services firms across the world
• the ability to be flexible and fast to respond to client’s needs without the limitations that come with larger firms.

What sets Setia Law apart from other law firms in Singapore that also specialise in dispute resolution and financial law?

We are one of the few legal boutique firms in Singapore with proven experience in cross-border restructuring and insolvencies, complementing our dispute credentials. More recently, we gained proven experience in handling cryptocurrency disputes and distress cases.

Also Read: The regulatory war on cryptocurrency

As Singapore grows into a restructuring hub for the crypto industry, Setia stands out with its market-leading team, which has dealt with high-profile cases to yield positive outcomes.

In addition to our unique mix of specialisms, we have a close network of leading professional services firms across the globe that add to our ability to develop winning strategies for our clients.

Could you walk us through the typical process that clients go through when they approach Setia Law with a financial or legal issue?

Our clients typically look to us within the first 24 to 48 hours of any developing crisis, which could be anything from a cybersecurity breach to financial distress situations to the discovery of fraud. They come to us because they know we can put together an effective response team and strategy in time-sensitive settings, drawing on our lawyers’ formidable regional experience and knowledge, as well as close relationships with leading professional services firms across the globe.

How does Setia Law approach cross-border financial crises, and what unique challenges does this kind of work pose when compared to domestic cases?

Our talented team of expert lawyers has deep expertise in approaching financial crises, having built their experience at a global level. This gives them the unwavering focus needed for dispute resolution and crisis management.

The challenge in cross-border situations lies in jurisdictional issues, where lawyers have to navigate the differences in legal systems to determine which jurisdiction has the authority to adjudicate the dispute and to determine the rules for the burden of proof. There are also barriers to enforcing a judgment, and the complexity of cross-border legal disputes requires a high level of expertise in international law and the agility to balance expectations from multiple jurisdictions.

At Setia, our specialism, coupled with a global network, enables us to be nimble in navigating complex landscapes and pulling together the right partners across different jurisdictions to tailor our approach for each client.

Can you discuss any particularly challenging or noteworthy cases that Setia Law has worked on in the past?

The Setia Law team has been at the forefront of major global crises over the last two decades, including the dot-com bubble, the global financial crisis and the crypto winter. Some of the notable financial and regulatory experience includes:

• Acted in the Lehman Brothers’s liquidation, from being involved in leading the Singapore aspects of the acquisition of the Asian Lehman franchise by Nomura to the complexity of untangling some of the most perplexing legal issues arising from that.
• Acted for B2C2 Ltd, one of the world’s largest market makers in digital currencies, in proceedings before the Singapore International Commercial Court. This was the first action in Singapore involving the algorithmic trading of digital currencies.
• Acted for the liquidators of BSI Bank and separately, a US investment bank, in relation to investigations into alleged laundering and dissipation of some US$700 million purportedly belonging to Malaysia-state owned company, 1MDB, through various channels which have spawned criminal investigations and legal proceedings in Singapore, Switzerland, New Zealand, and the US.
• Acted for Bank JTrust and JTrust Co Ltd in defending claims before the Singapore Court arising from English-law-governed bonds, involving parallel proceedings in New York, Mauritius, and Japan.
• Acted for STMicrolectronics, one of the largest global semi-conductor manufacturers, in a dispute relating to the supply of chips for a US$600 million national identity card project in Southeast Asia, involving parallel proceedings in Singapore and Indonesia.

What kind of clients does Setia Law typically work with, and what industries do they come from?

Setia Law acts for a broad range of clients, including multinational corporations, state-owned entities, financial institutions, and individual clients. Our industry expertise ranges from technology, blockchain, and digital assets to shipping and financial services.

What common misconceptions do people have about dispute resolution, fraud and financial crimes, debt restructuring and insolvency, and how does Setia Law work to dispel those misconceptions?

As with many legal cases, there is an assumption that they will go to court. In reality, many alternatives for dispute resolution can be quicker and more aligned with a company’s business objectives.

In the case of debt restructuring and insolvency, companies often assume that it is only undertaken to save themselves from the brink of retirement. However, it also applies to any organisation that may have debt but is still profitable. It is not always about liquidation but also about looking at tightening key areas of the business.

Also Read: Why Liminal sees compliance as the way to go for the crypto industry

At Setia Law, we aim to dispel misunderstandings through a tailored approach guided by a culture of respect, resilience, and reliability. This means that we are always available to answer questions and clarify doubts that clients may have about the litigation process.

I understand Setia has handled some high-profile cases, such as Vauld’s. Can you talk about this particular case? Do you see an increasing trend of crypto companies doing insolvency in the coming months?

To clarify, the Vauld case was handled by our lawyers in their previous law firm. Therefore, they are unable to provide any comment on the case.

More generally, amidst the challenging crypto landscape, we anticipate further downturns and more firms, both local and from other jurisdictions, requiring debt restructuring and insolvency services. Many of these firms will likely turn to Singapore as the jurisdiction of choice due to its ever-progressive laws and deep bench of expertise.

Is there a trend of VCs approaching your company for insolvency, etc? In such cases, what will happen to companies that have raised money from them?

Yes, we at Setia Law get a fair amount of VCs approaching us concerning investments that are about to or have gone into default. There are various ways in which the VCs can protect their interests in their investment in such situations, including possible private or court-sanctioned restructuring, or where there are corporate governance concerns or fraud involved, judicial management.

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