Before diving into the topic, I want to make a case for the size and status of the Hong Kong contech (Construction Tech) market:

• From McKinsey: Construction (including real estate, infrastructure, and industrial structures) is the largest industry in the global economy. It accounts for 13 per cent of the world’s GDP.
• From Statista: In 2021, around 326,000 people were employed in Hong Kong’s construction industry. That is 8.5 per cent of the total workforce in Hong Kong.
• From CIC HK: The average age of construction workers in Hong Kong is 47 years old.

Who gets funded and how?

Construction is the biggest industry that provides jobs for many and has been experiencing a rapidly ageing issue in its industrial workforce. With these figures and industry dynamics in mind, contech has become an attractive sector for VC investment. If you camp at HKSTP for three days, you will see a lot of contech startups working on BIM, robotics, DWSS, project management tools, and more.

The real question is — what kind of startups get funded in this space? Having spent some time sourcing deals across different incubators and working on contech deals in the past year, there are three key observations:

Deep industry knowledge and expertise of the founding team

Contech is harder to comprehend than other industries like Consumer, Enterprise Software, and Marketplace for one reason — the nature of the industry. The value chain of construction is complex and involves a lot more parties compared to other verticals.

Compared to an enterprise SaaS salesperson whose typical job involves convincing a client’s BD lead, Product/Project lead, and CFO, contech founders have to be able to comprehend many more pain points that cut across a construction project. Typical that would involve a lot of technical knowledge too. They, therefore, are often faced with a longer sales cycle.

When assessing contech startups, the ability of the founding team members to navigate a complex B2B sales environment is key to their survival and growth. See the photo below about the stakeholder map and my first reaction to the map:

The post Early-stage proptech and contech investing: Who gets the VC checks? appeared first on e27.

Use our special promo code: GO for 75% off your Echelon tickets!

The 2023 Echelon Asia Summit is happening at the Singapore EXPO on 14-15 June 2023. Are you a startup founder, investor, corporate, or tech enthusiast? Don’t miss out on one of the most anticipated tech conferences in the region! For more information, visit the official Echelon page.

A partnership is a critical aspect of any successful endeavour, and the upcoming Echelon Asia Summit 2023 is no exception. With the Asia Pacific tech conference happening in Singapore EXPO on June 14-15, 2023, sponsors are playing a crucial role in ensuring its success.

Also read: 15 frontrunners closer to competing in the 2023 TOP100

Echelon Asia Summit 2023 is one of the premier events for technology professionals, bringing together experts from around the world to share knowledge and discuss the latest trends and innovations in the Southeast Asian tech startup ecosystem. This year’s conference will feature keynote speeches, panel discussions, and workshops on a wide range of topics, including artificial intelligence, blockchain, digital healthcare, and other emerging digital trends.

How these partners are helping us give you the best Echelon experience ever

Sponsors play a critical role in ensuring the success of the Echelon Asia Summit 2023 in several ways. Firstly, they provide various forms of support and coverage for the various activities and features that make the summit such an exciting and meaningful experience for attendees.

Moreover, sponsors bring their expertise and experience to the table, providing attendees with unique insights into the world of tech. By leveraging their networks and marketing channels, sponsors also help bridge audiences to the broader ecosystem, enabling access to valuable insights for different demographics.

Also read: The secret to innovation? Corporate-startup partnerships are key

One of the key roles of sponsors is also their presence at the actual Echelon Asia Summit. This provides attendees with the opportunity to network with them and get to know their platform, which is an essential aspect of Echelon’s purpose as an ecosystem enabler that connects all stakeholders together. By supporting the Echelon Asia Summit 2023, sponsors can help founders connect with other professionals, investors, and startups in the tech industry, forging new partnerships and collaborations that can drive business growth and success.

As such, e27 is proud to announce K-Startup Center Singapore as one of its sponsors for the 2023 edition of the Echelon Asia Summit!

Meet K-Startup Center Singapore at Echelon Asia Summit 2023!

K-Startup Center Singapore (KSC) is operated by the Korea SMEs and Startups Agency (KOSME) as the government organisation under the Ministry of SMEs and Startups (MSS). KOSME is a comprehensive support agency specialising in SMEs and Startups in Korea.

It is the first Korean startup-supporting platform established in Southeast Asia. K-Startup Center Singapore plays a vital role as a Launchpad for Korean SMEs and Startups plugging into the startup ecosystem in Singapore and Southeast Asia.

K-Startup Center is running a global package program for Startups to help them by providing Global Scale-up Program (Acceleration Program with Local Partner), Provide Business space, and Customised Program to enable them to enter into Singapore and Southeast Asia markets.

“K-Startup Center offers customised programs, IR pitching, cooperative programs with our Networks, and consulting clinics for our Korean startups,” KSC explained.

Also read: The first 10 frontrunners closer to competing in the 2023 TOP100

KSC is dedicated to supporting Korean Startups in their plans to expand and thrive in the Southeast Asian market, including Singapore.

“Our participation in Echelon aligns with the organisation’s mission of offering a platform for Korean Startups to showcase their products and services, connect with potential partners and investors, and gain valuable exposure in the Southeast Asia market. [Through Echelon], we are able to provide Korean Startups with access to a broader network of industry experts, entrepreneurs, and investors who can help them scale and grow their businesses,” shared KSC.

At the Echelon Asia Summit 2023, KSC looks forward to exposure opportunities for their startups, meaningful business matching, and broadening their networks in Singapore and the rest of Southeast Asia.

Under its stewardship, KSC will be bringing with them six Korean startups to this year’s Echelon. These startups are as follows:

• CakepLabs is a Korea-based company which concern with Financial Technology (Fintech) and Artificial Intelligence (AI) development. CakepLabs gives you the best solution for your Fintech and Banks’ problems. We only offer you the easiest, fastest, simplest, safest, and highest quality for your Fintech.
• BC Labs is a company operating its co-investment platform, Coinvestor. Coinvestor aims to be the most engaging investment platform for digital assets globally. It offers an interactive digital space for investors and traders to seek profit-making opportunities from digital assets through a seamless service. Coinvestor sets itself apart from other crypto investment platforms by running a transparent operation, enhancing investment processes, and creating a collaborative environment.
• Sesame Lab is a startup founded in 2018 that offers a blockchain-based integrated digital key platform service. The company holds capabilities to develop both hardware and software security solutions and has been carrying out various projects aiming to digitalise all keys to make a “world without physical keys”.
• RetiMark is a company that discovers protein markers through proteomics-based platform technology and provides rapid and highly-accurate diagnostic service for blind ocular disease by developing a blood-based analysis algorithm S/W using multiple reaction methods and artificial intelligence.
• CESeL Primus, based on eco-friendly vertical farm facilities, big data, and AI-based control solution, uses modularised patented cultivation beds from the design of vertical plant factories ranging from small to medium to large, and provide turnkey solutions from construction to distribution. In addition, they are supplying various line-up products such as container farms that can easily operate farms in a small space regardless of environmental changes. They also provide showcase-type display farms for F&B businesses, and shop-in-farm that can be sold at the same time as harvesting.
• Drimaes provides an automotive software platform intended to offer in-vehicle infotainment services based in Daegu, Taegu-jikhalsi, South Korea. DRIMAES develops solutions that can give an authentic experience in the mobility area. Since existing cars have evolved into smart cars, IVI (In-Vehicle Infotainment) has become an essential part of in-vehicle experiences.

Join Echelon Asia Summit 2023

Get to know K-Startup Center Singapore and more at this year’s Echelon!

Echelon Asia Summit 2023 is happening on 14-15 June, at the Singapore Expo. Featuring a slew of speakers, exhibitors, business matching sessions, pitching stages, and more, the event enables participants to connect, network, and engage with the larger tech startup ecosystem.

To learn more about Echelon Asia Summit 2023 and sign up for the event, visit the official page here.

The post KSC to bring 6 Korean startups to the 2023 Echelon Asia Summit appeared first on e27.

Use our special promo code: GO for 75% off your Echelon tickets!

The 2023 Echelon Asia Summit is happening at the Singapore EXPO on 14-15 June 2023. Are you a startup founder, investor, corporate, or tech enthusiast? Don’t miss out on one of the most anticipated tech conferences in the region! For more information, visit the official Echelon page.

e27’s Regional MeetUp 2023 seeks to gather regional disruptors and innovators and bring the latest insights on the regional tech startup ecosystem straight into their respective homes — our next stop: Jakarta.

We’ll see you at WeWork Parc 18 on Tuesday, 9 May. Here’s what to expect:

The e27 MeetUp in Indonesia features a panel discussion with the topic “Southeast Growth Series: How can Indonesia’s tech ecosystem grow sustainably and where are future growth drivers”, with speakers Muhammad Faisal, Digital Startup Development and Partnership at the Ministry of Communications and Informatics of the Republic of Indonesia; Siddharth Kumar, Co-founder and CEO at MyRobin; Hansen Hubert, SVP at Alpha JWC Ventures; and Nitya Shah, Lead of WebEngage Startup Program; with moderator Thaddeus Koh, co-founder of e27.

Also read: KSC to bring 6 Korean startups to the 2023 Echelon Asia Summit

This event is an excellent opportunity to connect with the local tech startup community of Jakarta, share insights with experts and your peers, and potentially get free tickets to the Echelon Asia Summit happening on June 14-15 in Singapore.

The e27 MeetUp is also a great opportunity to explore how you can work with the e27 community – and e27 – to help you achieve your goals.

This is an invite-only event. If you would like to be a part of it, leave us your details in this form.

This event is brought to you by e27, in partnership with WeWork and WebEngage.

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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.

 

The post MeetUp with Indonesia’s most exciting tech entrepreneurs! appeared first on e27.

Recently, Airwallex conducted a survey amongst over 250 Singapore-based SMEs about their international expansion plan and discovered the most popular destinations for these companies. While most of them would opt for their Southeast Asian (SEA) neighbours for their expansion, a great number are also looking beyond the region–with 21 per cent looking to expand to East Asia.

At the sideline of the 7th Elevator Pitch Competition (EPiC) by the Hong Kong Science and Technology Parks Corporation (HKSTP) in late April, e27 had an opportunity to speak to several startups that are participating in their programme. These fintech and proptech startups are using the event as a stepping stone either to enter the Chinese market or the international market–with Hong Kong as a stepping stone.

With its strategic location, reputation as an international finance hub, and support system for the startup community, there are some ways that these startups can use Hong Kong as a springboard for their expansion. We look at two companies with strong ties to SEA to understand how they are using it.

From SEA to HK

As one of the semifinalists of EPiC 2023 under the fintech category, Thailand-based Finema is using the event as an opportunity to support its international expansion plan.

“[Joining EPiC 2023] is a really good opportunity to do branding. It is an opportunity to find some local partners to expand our business into Hong Kong and China as the first step into China is Hong Kong. We got the chance to work with and to know more about how to step into Hong Kong through EPiC 2023 and HKSTP, with supporting information and everything,” says Chatchai Chanvej, Business Analyst & Business Development Lead at Finema.

Also Read: Opportunities abound for Hong Kong’s largest I&T Career Expo

From its home in Bangkok, the startup builds a Decentralised Identity Platform to provide enterprises with holistic solutions. It builds digital ID cards as well as passwordless and multi-factor authentication.

“We have a product that is really beneficial for users who are going to step into Hong Kong. Or for businesses in Hong Kong who would like to expand to Southeast Asia,” he explains.

He also explains some use cases of their identity platforms that businesses and governments can use, for example, their ID card validation platform for travellers from SEA countries. In order to achieve this, Finema is working closely with local governments in the markets they operate in.

When asked whether there is any concern from the local government about safety and access to data, especially with Finema being a foreign company, Chanvej explains that it is important to have a local partner for Finema–to help build trust in the security of their platforms.

From Mainland China to SEA

For Leapstack, the goal of participating in EPiC 2023 is mainly to gain the attention of potential investors and incubator programmes. “I want to explore the opportunity to be under the eyes of investor and incubators and sees whether we have any chance to explore doing fundraising or business connections with other potential business partners,” explains Tung Can, CEO at Leapstack Vietnam.

The insurtech company was founded in 2015 in Mainland China. After nearly a decade in the market, handling mostly government projects and commercial insurance, Leapstack begins looking at the international expansion market.

Also Read: Hong Kong introduces regulatory measures for crypto trading platforms to enhance security

“We think that China is already a good market, but we need to expand internationally. So that’s why we decided to establish in Hong Kong. And then we changed the name to Leapstack International following our opening in Vietnam,” he explains. “We see the potential in Vietnam market with its population … there are a lot of elements that bring us to make a decision that we need to open Vietnam first.”

Vietnam is seen as an entryway to Southeast Asia before the company eventually expands to Asia Pacific.

“We had a lot of discussions; we think it might be the best opportunity to go through the international market through the Hong Kong gateway. We consider Hong Kong as a mature market with many opportunities, from business opportunities to government support,” says Tung Can.

“Over the past eight years, we’ve already built the know-how. That means we actually have the potentials to test all of our technology over the years. So, that’s why it’s enough for us to come out of China and expand the business and the technologies to other countries. But of course, different countries may have different types of medical treatment, clinical guidelines and market practices. So we not only utilise the current technology and systems we have in China, but we’ve foreseen that we need to adjust to every country.”

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Echelon Asia Summit 2023 is bringing 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 get the chance to pitch to 5000+ delegates, among other benefits like a chance to connect with investors, visibility through e27 platform, and other prizes. Join TOP100 here.

The post How startups are using Hong Kong as the launchpad of their international expansion appeared first on e27.

Jeffrey Seah, Partner at Quest Ventures, has rolled out a new early- and growth-stage investment fund Mettle Salt Wealth Ventures (MSW Ventures).

The VC firm’s first fund is called Asia Fund X, which is an opportunity fund in the face of challenges and transformations.

Asia Fund X fund seeks to invest in promising startups in Southeast Asia, particularly in foodtech, agritech, data tech, sustainability, and enterprise tech, with established product-market fit and experienced founders.

Also Read: Why Quest Ventures believes that the human-centricity of ESG investing will be more apparent

“At MSW Ventures, we’re passionate about working with early and growth stage companies in their go-to-market endeavours – we will strive to help them be comfortable with the uncomfortable,” General Partner Seah said in a LinkedIn post.

MSW Ventures will help AFX evaluate potential investments based on their sustainability and long-term success, looking beyond traditional performance metrics to gain an understanding of their business model and exit potential.

“In recent years, we have witnessed the emergence of transformative and disruptive technologies in response to significant changes in our world. The pandemic, for instance, has accelerated the adoption of remote work, digitalisation, and contactless transactions, leading industries to swiftly adapt to the new normal. While some consider these challenges, I view them as boundless opportunities — a constant reminder to think ahead and future-proof,” Sea said

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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.

The post Jeffrey Seah of Quest Ventures launches new SEA-focused VC firm MSW Ventures appeared first on e27.

In a world where technology has seeped into every crevice of our lives, we’re constantly bombarded by a relentless stream of texts, emails, and social media updates. Our brains are so tethered to our devices that it’s almost as if we’ve developed an extra limb.

But what if, for just a moment, we decided to sever that connection and embark on a digital detox?

How I embarked on a digital detox

So, there I was, off to Bali with a friend during Eid to see if we could survive three days without our trusty screens. We’d both been feeling the crushing weight of stress, and my buddy had even suffered a couple of panic attacks. Our plan was to cast off the digital shackles, roam the island, hit the waterpark, cruise the beaches, and stumble upon tourist sites like a couple of lost Luddites. We were on a mission to feel alive.

Initially, it was like quitting an addiction cold turkey. Our fingers twitched for our phones, yearning to swipe and tap our way through the familiar digital labyrinth. But soon enough, the cravings subsided. In their absence, a newfound presence emerged. We were more in tune with our environment, more engaged in conversation, and more connected to each other. It was like shrugging off a leaden cape we didn’t even know we were wearing.

Also Read: Is the remote working trend “swallowing”​ office employees’​ vacation time?

As we wandered through our tech-free haven, we savoured the world in high definition. The sky’s vibrant hues, the rhythmic lull of the waves, and the salty sea breeze teased our senses, unencumbered by digital distractions. Our digital detox left us feeling refreshed and rejuvenated like we’d just hit the reset button on our brains.

Of course, it’s crucial to give your nearest and dearest a heads-up. You don’t want to trigger a search party when you’re just on a temporary tech hiatus. But trust me – it’s worth the potential confusion. A digital detox not only reacquaints you with the analogue world but also rekindles your appreciation for our connected existence.

A renewed appreciation for the present moment

A digital detox offers a unique opportunity to recalibrate your relationship with both the physical world and the digital realm. By stepping away from technology for a few days, you’ll gain a renewed appreciation for the present moment, the beauty around you, and the simple joy of human connection.

But once you re-enter the world of connectivity, you’ll also find yourself more grateful for the incredible advantages technology offers. The key is striking a balance between engaging with the digital world and staying grounded in the real one.

So, go ahead and give a digital detox a try. You might just find that it not only enriches your experiences in the present but also enhances your relationship with the ever-evolving digital landscape.

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Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic

Join our e27 Telegram group, FB community, or like the e27 Facebook page

The post Digital detox: A vacation idea for unplugging your life appeared first on e27.

I watched the movie AIR last weekend. It is the story of Nike signing Michael Jordan and launching Air Jordan. Here is an extended summary of messages about dealmaking and entrepreneurship from the movie (Spoiler alert!).

Back in the 1980s, Nike was primarily known for its running shoes. It had only a 17 per cent share of the basketball shoe market, and the market was primarily dominated by Germany-origin Adidas and Converse. Nike was very close to shutting down its basketball shoe division due to disappointing sales. No top players would wear a pair of Nike.

As part of an annual exercise, Nike’s basketball talent scout Sonny was tasked to come up with a new spokesperson for Nike basketball shoes in the NBA draft. The team has a budget of US$250K to spend.

Also Read: Storytelling: Startup’s secret sauce for turning founder narratives into golden assets

While other team members suggested splitting up the budget and signing multiple second-tier players, Sonny had a contrarian view and proposed to place the entire budget on Michael Jordan. He believed so strongly that Michael Jordan would become one of the greatest players that would redefine the game for both NBA and Nike.

After multiple rounds of negotiation, Sonny managed to convince his boss, Phil Knight, Co-Founder of Nike who created the famous 10 Principles of Nike.

What Nike then did to land the deal primarily broke all the rules.

• Firstly, Sonny broke the industry norms of interacting only with the agent who represented the player and went directly to Jordan’s home to convince Jordan’s mother to take a meeting with Nike.
• Secondly, Nike made a prototype with only red and black colours which would breach the ridiculous rule the NBA imposed on shoes (that 50+ per cent of the shoe has to be white in colour) and could cost the company US$5K per game.
• Thirdly, Nike agreed to give a cut to Jordan for every pair of Air Jordan sold by Nike, which was not a standard commercial term back then.

Results? Nike went on to sell US$162 million in the first year, beating Phil Knight’s expectations by over 50x. Air Jordan has since become a legendary brand and an indispensable part of Nike. Today, combined with Jordan, Nike has effectively over 70 per cent share in the basketball shoe market.

Also Read: How to balance rapid growth and sustainability as a startup founder

So what could be the takeaways for founders and VCs from the movie? I summarised three points below:

If you believe in your startup, you should have already “put all your eggs in the same basket”

This was what Nike did by allocating its entire budget to sign Jordan. In a fundraising exercise, the first reason VCs pass a deal is when they find out the founders are not already working full-time on their venture. VCs want to see founders devoting 100 per cent of their time to the venture that they will be backing and relying on to make money. Skin in the game matters.

When you are landing a BD/fundraising deal, identify the key decision-maker

If you watch the movie, you will realise an early-stage startup founder is just like Sonny (the Nike talent scout) in AIR. In Sonny’s case, Jordan’s mother was the one who would make the final call.

He, therefore, focused on influencing her by going one-to-one and leveraging other people who could possibly change her mind. For founders raising a round from VCs: Be like Sonny. Have an attack plan for persuading the partner, and make sure the rest of the deal team does not hate you.

Lead with guiding principles, not rules

When I was working in consulting, I did not appreciate the value of presenting guiding principles before outlining the rest of the deck. Thought those were complete BS. With more work experience, I now see the value (or at least the intention) to talk through that slide.

You have to start with the ground assumption that people/your team are good at exploiting rules and overcoming constraints. If you lead by telling people the “Don’ts”, you will likely get a team who will only do work that they think will please you instead of actual outputs.

Instead, if a set of guiding principles is in place with a proper reward system that aligns interests as much as possible, you have removed blockers for your team and built a virtuous circle where team members act according to the best interest of the company.

Of course, building such a work culture is easier said than done, but this is easy to spot for VCs in a pitch meeting with other working-level members in the same room. Founders, it might not be a bad idea for you to sit down and actually write up your own set of guiding principles about how to operate your startup.

Keen to know your thoughts about the movie/points above.

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Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic

Join our e27 Telegram group, FB community, or like the e27 Facebook page

Image credit: Canva Pro

The post ‘AIR’ review: 3 lessons for dealmaking and entrepreneurship appeared first on e27.

Malaysia-based marketplace platform for renovation and interior design materials HOMA2U today announced that it has secured MYR3.87 million (US$875,000) in Pre-Series A funding.

The investment round was led by Quest Ventures Asia Fund II and included both Worldwide Management Solution and Qhazanah Sabah Berhad.

This is Quest Ventures Asia Fund II’s second cheque for HOMA2U.

According to a statement released by the company, the fund will fuel HOMA2U’s regional expansion plans, accelerate product development and promote a circular economy within the renovation and interior design industry.

HOMA2U will also channel the funds to help more people amplify their commitment to Environmental, Social and Governance (ESG) sustainability as well as help them meet their ESG goals through their Yellow Boxes and online platform.

HOMA2U is working towards growing the business threefold and will be concentrating its efforts on opening a total of 18 Yellow Boxes throughout Malaysia and Singapore.

Also Read: Thai property developer MQDC unveils ‘metta-verse’ to bridge the real and virtual worlds

Touted as Malaysia’s first unmanned interior product showrooms, the Yellow Boxes are mobile pop-up outlets that offer offline-to-online purchase services for visitors. HOMA2U is looking to establish the first Yellow Box in Singapore as early as Q32023.

Pennie Lim, the Founder and Chief Executive Officer of HOMA2U, shared that the fresh funding is a positive sign of health for HOMA2U – considering the wider context of economic pessimism that the property market is currently experiencing.

“We know that customers want renovation solutions that are seamless and engaging, with everything available under one roof. The funding will enable us to deliver on our plans to make high-quality, affordable and sustainable home interiors with renovation products easily accessible to all, essentially contributing to a total solution and wholesome experience for them,” Lim said.

“At HOMA2U, we do not just stop there. We also help our customers meet their ESG sustainable goals and practices from a design and aesthetic point as well as from the impact of the renovation materials on our environment.”

Earlier in 2021, HOMA2U secured a series of funding amounting to MYR2.4 million (US$567,000) from Warisan Quantum Management as well as ScaleUp Malaysia with investment partner Quest Ventures where HOMA2U emerged as one of the top 10 startups in the ScaleUp Malaysia’s Accelerator programme Cohort 2.

HOMA2U now has 20 team members working on business development, customer service and marketing.

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Echelon Asia Summit 2023 is bringing 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 get the chance to pitch to 5000+ delegates, among other benefits like a chance to connect with investors, visibility through e27 platform, and other prizes. Join TOP100 here.

Image Credit: HOMA2U

The post HOMA2U secures US$875K in Pre-Series A funding, eyes regional expansion appeared first on e27.

After Elon Musk’s recent tweet that Twitter “will ultimately need a complete rewrite,” coding commentators have taken to comedy, with some suggesting that he has now achieved a “mid-level engineer mindset.” In sharing Musk’s tweet, Amit Gupta, CTO of Food Market Hub, suggested that due to software’s continuous evolution, after three to four years, it becomes necessary to discuss a rewrite of a particular component or system. 

This generated a lively debate among builders in the F’in Tech community on the perennial question: Is it better to rewrite or renovate existing code?

In this piece, I capture the heart of this dilemma as well as some of the top takeaways from our conversation, reflecting the thinking of those that have been in the trenches and have the experience to share.

Better the devil you know

Every complete rewrite I’ve been directly involved with, or have knowledge of, has taken much longer than anticipated, assuming it was even completed. Often, when programmers are asked to “fix” or “complete” a rewrite, it’s easier to revert to the original (working) code base and instead focus on whatever triggered the rewrite in the first place.

Also Read: 7 lessons from building a 7-figure SaaS business with just 1 engineer

When you undertake a rewrite, you’re trading known issues for unknown ones. Modern libraries and frameworks are not immune to bugs and gotchas. In fact, they may have more than their predecessors. These issues may slow down delivery, while others may require workarounds and unsightly edges that are just as bothersome as the original.

The complexity lies beneath the surface. Typically, code bases evolve over time, with fixes and nuanced requirements baked into the code without being consistently documented. Attempting a rewrite without a comprehensive understanding of what’s already in place may continuously reveal new requirements, often during user acceptance testing.

This can drag on indefinitely, frustrating your users and blowing up your timelines. As F’in Tech advisor Sam Simopoulos succinctly put it, “These things never truly finish.”

If full rewrites are almost always the wrong approach, then who is pushing for them? Is it a non-technical manager, convinced by a persuasive salesperson? A mid-level engineer who hasn’t attempted it before? An ambitious new starter, striving to make their mark?

If any of these apply, be cautious. But if it’s the seasoned senior who loathes unnecessary changes, then it may be worth considering.

Not just the tech

When undertaking a full rewrite (or a significant renovation), it is essential to consider the needs and expectations of the users and keep the product’s purpose in mind. This maximises the chance that what is being rewritten is fit for purpose.

Gerry Eng, founder and CTO at CoinHako, builds on this, “It’s often not just a technical rewrite but a product requirement rewrite as well, making the call to remove legacy features or constraints can help unblock a lot of stuff.” However, this must be a balanced approach, as it further increases the potential risk of the rewrite, especially if the product and technical team’s visions are not 100 per cent aligned.

“What do you do if the system is so entangled that you literally cannot reasonably extract modules from it, and thus forces a complete rewrite?” asked Nino Ulsamer at Stashaway. He believes it is possible that with sufficiently senior backing, enough attention and resources can be focused to make a rewritten work.

“The rewrite can still work, but it must be anchored at the highest level. Maybe not possible without a founder-CTO pushing it forward.” These are not common, but not impossible as Uber showed, with then CEO Travis Kalanick getting personally involved. Stories like this also reveal the level of comradery that can emerge in the trenches when pulling off the impossible.

Don’t underestimate the data

As Christian Fischer, Head of Engineering at ADDX reflects, “The real pain after a rewrite is the data migration!” Without an iterative plan, the complexity of a data migration leaves two possible choices:

• A “big bang” cutover, with a sudden switch from the old system to the new
• Run a sync for two data sets, with the “old” data set supporting old processes

Big bang cutovers are high risk with little room for experimentation. Even when there is no other option, if there is a way to split the dataset into smaller pieces (for example by customer type or geography), then that should be explored as a way of minimising impact if there is an issue.

Often, engineers will try to sync data sets between old and new systems to retain flexibility, for example running one process from one dataset, and one from the other. While sensible, this adds a new layer of complexity in keeping the systems reconciled with one another for consistency, especially if the data models between the two systems differ. So we need to think about approaches that allow us to iterate on the same data set.

Sunny Singh, CTO at Headquarters, is currently undergoing a data migration, “We did it by using a combination of feature flags & new tables, along with a process to whitelist clients that were open to using a slightly buggier application. We gave those clients some additional incentives for bearing with us. This is helping us to keep data migration to a minimum as we are experimenting, and eventually, we will be migrating everyone over to the stabilised, rewritten modules.”

The use of feature flags is a great way to gradually deploy code across data migrations or more typical application releases, reducing the risk of impacting all customers at the same time.

Make it so

As Diego Rojas, CTO at Tribe Fintech, notes “Of course systems/products need to keep evolving, migrating and changing but it’s an iterative/gradual process until major risks are mitigated.” Change is inevitable, but how we implement that change is within our control, and minimising risk is the objective.

As Manoj Awasthi, CTO at Julo, explained, most experienced engineers would attempt a rewrite using the Strangler Fig Pattern. In this fascinating ecological phenomenon, a species of fig plant, known as a strangler fig, germinates on a host tree and grows around its trunk.

As the fig grows, its roots gradually envelop and constrict the host tree, causing it to weaken and ultimately die. The fig’s roots thicken and fuse together, forming a dense lattice that completely surrounds the host tree’s trunk, enabling the fig to continue growing by feeding off the host tree.

As a software refactoring technique, the host tree represents a legacy software system that has become outdated or difficult to maintain, while the strangler fig represents a new software system designed to replace it.

Also Read: Decoding the definition of a startup from an investor’s point of view

To implement this pattern, the key functionality of the legacy system is identified and implemented in the new system in a modular way. The original system is kept operational in parallel, while more functionality is migrated to the new system wrapping around it. The reliance on the legacy system decreases until it can eventually be decommissioned.

According to Headquarters’ Sunny Singh, the best approach is to rewrite specific modules as you touch specific parts of the codebase. However, considering ROI is critical to avoid exerting excess effort for little return. 

“Ugly” rewrites can be considered a waste of time: if you’re rewriting an application, then you might as well build it correctly, right? Unfortunately, as Thomas Chia, CTO at Chocolate Finance, pointed out, this violates Gall’s Law.

We are trying to jump to complexity, and thus are bound to fail. A continuous set of small changes must be made to gradually replace legacy systems with new applications. This approach almost always requires a set of “ugly” intermediate steps, yet each iteration is being utilised by real users, proving it actually works.

So, rewrite or renovate? Collectively, CTOs say: try not to do it!

But if your only option is to rewrite then try to do it in small iterative steps, have a plan around your data migration that minimises disruption, and ensure that there is a strong alignment with senior management.

But if you’re a mid-level engineer who read this and thought, “These guys aren’t hardcore enough”, then I hear Elon is hiring!

With thanks to Manoj Awasthi, Thomas Chia, Gerry Eng, Christian Fischer, Amit Gupta, Elon Musk, Diego Rojas, Sam Simopoulos, Sunny Singh, Nino Ulsamer and everyone in the F’in Tech Community.

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The post Rewrite or renovate: The programmer’s dilemma appeared first on e27.

This new series provides an opportunity for bootstrapped founders to share their venture-building stories with the audience. If you have a compelling story, please email it to writers@e27.co.

Inmagine Group is probably the first tech company to build a successful business without raising external capital in Southeast Asia. Started in 2000 by the entrepreneur couple Andy and Stephanie Sitt, the group aims to provide creative professionals and entrepreneurs with access to “high-quality digital content at an affordable price”.

e27 spoke with Stephanie Sitt, who shares the company’s bootstrapping journey and how its conscious decision not to take VC funding helped it maintain full control over its vision for democratising creativity.

Excerpts:

Can you give us some background on how Inmagine Group was founded and how it has evolved?

Inmagine Group was established in 2000 with a mission to provide creative professionals and entrepreneurs with access to high-quality digital content at an affordable price.

Over time, the company has evolved into a global creative ecosystem with multiple brands under our umbrella. Our portfolio includes Pixlr, a popular online photo editing tool, Designs.ai, an AI-powered design platform, and 123RF, a leading stock content provider.

Our mission to democratise creativity remains at the core of everything we do, and we strive to provide tools and resources that enable people to unleash their full creative potential. Our success is driven by our talented team and a culture of collaboration, creativity, and excellence.

One of the unique aspects of Inmagine is that it has grown without VC funding. Can you talk about the decision not to seek external investment, and how you have been able to finance your growth without it?

Inmagine’s unique approach to growth without external capital or VC funding is a conscious decision to maintain full control over the company’s vision for democratising creativity.

The company has financed its growth through a combination of revenue reinvestment, strategic partnerships, and operational efficiency. Reinvesting a significant portion of profits back into products and services allows for continuous innovation and improvement.

Also Read: How Inmagine is Googlising its workplace to foster an inclusive and collaborative work culture

Strategic partnerships with like-minded companies that share Inmagine’s values have helped expand reach and offerings. By focusing on operational efficiency, Inmagine has optimised processes and resources to maximise impact and profitability.

While external investment has its benefits, Inmagine’s decision to remain independent has allowed it to stay true to its mission and values, giving it the flexibility and agility to respond to changing market conditions and client needs.

How has Inmagine been able to compete with other companies in the same space that have received large amounts of funding?

We have been able to do so by focusing on our strengths and leveraging our unique position in the market.

We have built a culture of innovation, creativity, and excellence that sets us apart from competitors. In addition, Inmagine has been able to build strong relationships with clients, partners, and employees, fostering a sense of loyalty and trust that helps it stand out in a crowded market.

The company has also been able to adapt quickly to changing market conditions and client needs, thanks to our flexibility and agility.

In the local context, Inmagine has been able to compete with other companies in Malaysia’s creative industry by tapping into the country’s diverse pool of talent and leveraging its resources and expertise. Malaysia has a growing creative industry and Inmagine has been able to capitalize on this by providing employment opportunities and investing in the development of local talent.

By doing so, we have been able to position ourselves as a leader in the local creative space and to compete effectively with larger companies that have received significant funding.

What strategies have Inmagine Group used to achieve such rapid growth and scale while maintaining profitability?

One of the key strategies that Inmagine Group has used to achieve rapid growth and scale while maintaining profitability is its focus on artificial intelligence (AI) and machine learning (ML). By investing in AI and ML technologies, Inmagine has been able to automate many of its processes, allowing it to scale quickly while reducing costs and increasing efficiency.

For example, Designs.ai uses AI to generate custom logos and brand identities allowing the company to provide high-quality design services at a fraction of the cost and time required for traditional methods.

Inmagine has also used AI and ML to improve its stock content search algorithms, making it easier for users to find the images, videos, and audio content they need. This has helped the company to maintain its position as a leading provider of digital content in a highly competitive market.

In addition to its focus on AI and ML, Inmagine has also used a combination of strategic partnerships and revenue reinvestment to achieve rapid growth and scale while maintaining profitability. By continuously innovating and investing in its products and services, the company has been able to stay ahead of the curve and maintain its position as a leader in the creative industry.

Can you talk about some of the biggest challenges Inmagine Group has faced along the way, and how you overcame them without external funding?

One of the biggest challenges Inmagine Group has faced is constant market disruption, but the company has been adaptable, innovative, and decisive in reacting to market changes. When the COVID-19 pandemic hit and the demand for digital content increased dramatically, Inmagine was able to quickly pivot and provide relevant content to its clients. The company also invested in new technologies and tools to help users create and edit content remotely, ensuring that it remained relevant and valuable in the changing market.

Also Read: Bootstrapped: How 99VR raced against the clock to build a profitable business

Another challenge that Inmagine faced was the need to continuously innovate and improve its products and services to stay ahead of the competition. The company overcomes this challenge by reinvesting a significant portion of its profits back into research and development, as well as through strategic partnerships and acquisitions.

Overall, Inmagine has been able to overcome the challenges of market disruption and competition by staying true to its values and mission, being adaptable and innovative, and making decisive moves to react to changing market conditions.

How has the company culture at Inmagine Group contributed to its success, and how do you maintain that culture as the company continues to grow?

The company culture has played a critical role in its success. The company’s culture is centred around innovation, creativity, and excellence, and is characterised by a strong sense of teamwork, collaboration, and respect for individual ideas and contributions. This culture has helped to foster a sense of ownership and accountability among employees, and has enabled them to work together to achieve the company’s goals.

To maintain this culture as the company continues to grow, Inmagine has implemented several strategies, including regular engagement programs, ongoing training and development opportunities, and a strong focus on diversity, equity, and inclusion.

The company also has a flat organisational structure that encourages open communication and transparency, enabling employees at all levels to contribute to the company’s success. By prioritising its culture, Inmagine has been able to attract and retain top talent, foster innovation and creativity, and maintain its position as a leading player in the creative industry.

Inmagine Group has made several acquisitions over its existence. How have these acquisitions contributed to the company’s growth, and how do you evaluate potential acquisition targets?

Inmagine Group’s acquisitions have been a significant contributor to the company’s growth. By acquiring other companies that offer complementary products or services, Inmagine has been able to expand its offerings and reach new markets, while also gaining access to new clients and talent.

When evaluating potential acquisition targets, I focus on several key factors, including the target company’s strategic fit with Inmagine’s existing business, its financial health, and the potential for synergies and growth opportunities. I also place a strong emphasis on cultural fit and ensuring that the target company’s values and mission align with those of Inmagine.

Overall, Inmagine’s approach to acquisitions has been strategic and focused on long-term growth, enabling the company to expand its reach and offerings while maintaining its position as a leader in the creative industry.

What is the long-term vision for Inmagine Group, and how do you plan to achieve that vision without external investment?

Our long-term vision is to become the leading global creative ecosystem by continuing to innovate and provide smarter, faster, and easier tools and services that meet the evolving needs of our users. To achieve this vision without external investment, I plan to continue reinvesting profits back into the company, focusing on research and development, strategic partnerships, and acquisitions.

Inmagine also plans to maintain a strong focus on operational efficiency and cost optimization, enabling it to continue growing and expanding its offerings while remaining profitable while leveraging its existing brands, such as Pixlr and Designs.ai, to provide users with a comprehensive suite of creative tools and services.

By continuing to innovate and improve its products and services, and by staying ahead of market trends and client needs, I believe that Inmagine can achieve its long-term vision without external investment. By staying true to its vision and values, Inmagine is confident that it can continue to achieve sustainable growth and success over the long term.

Can you share any success stories or milestones that you are particularly proud of?

Inmagine Group has achieved many milestones and success stories that I am extremely proud of. One of our proudest achievements is the global reach of our brands, including 123RF, Pixlr, and Designs.ai.

With more than 300 employees, we have been able to provide our services to millions of users around the world. 123RF, our stock photo library, has grown to include over 200 million high-quality stock photos, with 90,000 new content added daily from over 300,000 creative contributors.

Also Read: AI has the potential to perpetuate harmful biases, says Inmagine CEO

This has enabled us to become a leading player in the stock photo industry, providing high-quality content to businesses and individuals worldwide. Pixlr, our online photo editor, has also been a great success, with over 10 million monthly active users and new features for 2023.

Finally, Designs.ai has experienced rapid growth, helping businesses worldwide to create professional-grade designs quickly and easily.

Overall, we are proud of the success and milestones achieved by our brands, and we are committed to continuing to innovate and provide exceptional products and services to our users worldwide.

Do you have plans to launch an IPO or get any other forms of exit in the near future?

Never say never, but at the moment, my focus is on continuing to grow Inmagine Group and achieve our long-term vision of becoming the leading global creative ecosystem. Our goal is to provide smarter, faster, and easier tools and services that empower individuals and businesses worldwide to create, discover, and connect through design, technology, and entrepreneurship.

I believe that by focusing on providing exceptional value to our clients and innovating to meet their evolving needs, we will continue to experience rapid growth and success. While we do not have any plans for an IPO or other exit strategies in the near future, we remain open to exploring all opportunities that can help us achieve our long-term goals and vision for the company.

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