Agriculture is more than just an economic activity; it plays an important role in ensuring sustainable development, social well-being, and food security. With the global population expected to reach 10 billion by 2050, demands for food and agricultural products remain very high. As a result, the agricultural sector is under pressure to keep up with the world’s growing food demand and changing trends in food preferences.

In the past years, thanks to technological advancements, agricultural productivity and efficiency have seen significant growth, resulting in increased food production and availability. Nonetheless, food security remains an important matter in many parts of the world. For instance, in Europe, it was estimated that nearly 10% of the population could not afford a healthy diet with meat or fish or vegetarian equivalent every two days. The situation is even more serious in other parts of the world, such as in Africa, where around 20% of the population does not have enough food, and over 140 million people have severe food insecurity with chronic famine and constant threats of starvation.

Challenges faced by farmers in Bangladesh and other developing countries

With the grim prospects of increasingly palpable impacts of climate change that further threaten agricultural production and place more pressure on global food security, it is vital to enhance the sector’s productivity and sustainable development to ascertain reliable food supply for more people.

In this regard, the digitalisation process that is claimed to bring about disruptive innovations and fuel growth in other industries can prove crucial in revolutionising the agricultural sector by enhancing supply chain transparency and efficiency, empowering the decision-making process with data science, strengthening sectoral resilience, and improving agronomic practices for higher production.

Also read: How Anapi’s D&O Insurance protects new startup founders

Nevertheless, the agricultural sector is still one of the least digitalised sectors in the economy due largely to the huge digital gap faced by farmers around the world. Specifically, farmers living in rural areas often lack access to stable Internet and other digital infrastructures, insufficient education and training to bridge the digital skills gap, and lower living standards in general.

This is particularly true for farmers in developing countries such as Bangladesh, where agriculture contributes to over 11.6% of its GDP and employs around 37% of its total workforce. These farmers have limited access to resources and updated insights about farming practices, financing needed to invest in their farms, or access to broader markets due to inadequate infrastructure or services like internet connectivity.

The digital divide between developed and developing countries that heavily on agriculture has created many challenges for these communities, which can lead not only to economic but also social consequences if left unaddressed — from rising inequality among countries and within countries, limited opportunities for youth who find it hard to venture out of their home environment, decreased nutrition and food security, and other long-term sustainability issues.

How iFarmer harnesses the digital power to democratise financing and supply chain in the agricultural sector

Founded in Bangladesh in 2019, iFarmer is an agri-tech company that helps farmers maximise their profit potential with data and technology, direct-to-farm commerce, financial services, and advisory services. iFarmer has been partnering with financial institutions, agriculture input manufacturers, and food processing conglomerates to craft “one-stop solutions” for farmers and their farming needs and improve their yields and income through the use of data and technology.

The core of iFarmer’s offerings includes its proprietary platform, which provides real-time information on soil analysis results, fertiliser recommendations, crop analytics, training, financing, investment, and procurement and exchange. This comprehensive suite of services allows farm owners or managers to not only track field performance but also help them boost their knowledge and capacity, gain access to wider financing options to manage their farms, and buy more equipment. Moreover, through its mobile app and web portal, iFarmer offers several additional products and services for users, such as loyalty point bonuses, news and recommendations, investment products, and so on.

Also read: WAOHire: Empowering both developers and the businesses that need them

With these solutions, iFarmer believes that it can digitalise the agriculture value chain through different initiatives. For instance, one of its key initiatives focuses on improving agricultural productivity through data intelligence and analytics. By collecting big data from farms around the world and utilising sophisticated algorithms, iFarmer can effectively collect and analyse weather information, soil fertility, pH level, and other soil attributes in real-time. Moreover, the application can also make precise recommendations for farmers to select the most suitable fertilisers to enhance their farms’ conditions and become more proliferate.

With all these features combined, it will become easier than ever before for farmers living in rural communities throughout Bangladesh and across borders to access fundamental resources for their farming operation, scale up, and spur professional development. To illustrate, Charubela Roy from Lalmonirhaat shared how she benefited from iFarmer, which has helped her with funding support, cattle feed, vaccination, veterinary services, and market access. iFarmer offers lower interest rates, flexible repayment, input services, and transport services to its farmers. “I can now grow more cattle and vegetables and have a more stable life,” said Charubela Roy.

In the next few years, iFarmer intends to embark on a more ambitious plan to better support farmers not only in Bangladesh but also globally, creating a strong network of support for farmers and making positive changes in agricultural production and food security across the world. iFarmer is currently planning to expand and bring more farmers under its network through a digitised network of micro-entrepreneurs called ‘iFarmer Centers’ for last-mile delivery as well as aggregation.

To learn more about the company, you may visit iFarmer’s official website.

About iFarmer

Founded in 2019, iFarmer has built a full-stack agricultural model which provides services ranging from distribution of agricultural inputs, customised farm advisory, access to financial services, and market linkages to sell farmers’ produce. iFarmer currently works with nearly 100,000 farmers across 25 districts in Bangladesh and has grown over 40 times in the last 3 years.

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This article is produced by the e27 team, sponsored by iFarmer

We can share your story at e27, too. Engage the Southeast Asian tech ecosystem by bringing your story to the world. Visit us at e27.co/advertise to get started.

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In recent years, Japanese startups have been increasingly expanding to South East Asia, looking to tap into the huge potential of the region’s markets. With a population of over 685 million, the region is highly attractive to ambitious startups, providing them with sizeable markets and access to rapidly growing economies.

In addition, the region’s diversity allows startups to easily adapt their business models to suit different markets. The Regional Comprehensive Economic Partnership (RCEP) has played an important role in creating the world’s largest free-trade area covering 30 per cent of the world’s population, reducing trade barriers within the region and across the globe.

This has made it easier for Japanese startups to enter South East Asian markets and take advantage of the region’s growth potential.

Also Read: Navigating a recession: How founders can protect revenue as funding dries up

Japanese startups have turned their attention to the South East Asia region to take advantage of these opportunities. The Rainmaking Expand: South East Asia programme has provided Japanese startups with the necessary expertise and networks to explore and target commercial opportunities in multiple locations. Companies such as IDDK and HACARUS have used the programme to gain access to a broader network of contacts, helping them to refine their approach to target markets and increase their success.

IDDK, a Japanese space tech company, is an example of a startup exploring the niche market of space technology in South East Asia. IDDK is leveraging its patented Micro Imaging Device technology, which replaces conventional microscopes, to target pharmaceutical, agriculture and beauty companies’ R&D divisions. While building up their solution within the Japanese market, they wanted to explore potential research partners, potential clients, and investors within South East Asia.

“We thought that the demand for our technology would be more prominent in countries that had not experienced the benefits of the International Space Station. Therefore, we thought it was important to expand into South East Asia,” shared Hiroaki Shibata from IDDK Co., Ltd.

By leveraging the expertise and network from the Rainmaking Expand programme, IDDK has identified Singapore as an important market for them to focus on, especially in relation to the opportunities in the healthtech sector. Through the learnings gained in the programme, the team at IDDK was able to negotiate and sign an MOU with Singapore Space & Technology Ltd (SSTL) for a strategic partnership to promote the use of space environments for biological experiments.

South East Asia has a growing middle class of consumers with increasingly high purchasing power driving up demand in multiple sectors. This provides a great opportunity for Japanese startups to establish a foothold in the region and tap into the potential of the markets by plugging their services into multiple industries.

Also Read: The rise of live commerce in Asia and adoption of BeLive by retailers

One startup leveraging these opportunities is HACARUS, a provider of AI-based solutions in sparse modelling to automate tedious and difficult inspection tasks. With a diverse workforce and ethos focused on a global perspective, the company has seen success in the region, particularly when working with partners who understand the ups and downs of implementing AI into a business line.

HARACUS identified South East Asia as an important and natural fit for their expansion, with similarities in complex manufacturing and quality focus, while experiencing high growth and plenty of need for their solutions to automate tedious and difficult inspection tasks.

HACARUS gained access to a broader network of connectors, consulting companies, logistics, and manufacturing companies after joining the Rainmaking Expand: South East Asia programme and leveraged this to evolve and refine their approach to their various target markets for higher success.

“We recognised that different parts of our value proposition resonate in different markets — in Singapore, we emphasise the energy and physical space-saving aspects, and in Malaysia, we focus on the time and quality throughput increases that our solutions bring,” stated Adrian Sossna, Head of Global Sales Group from HACARUS INC.

After connecting with a variety of key players, HACARUS is moving into the negotiation stage for multiple projects with customers in Singapore, Thailand, and Malaysia with the hopes of many more to come in 2023.

South East Asia offers a great opportunity for Japanese startups to expand. With a large population, supportive governments, and low costs of entry, the region is an attractive proposition for ambitious startups looking to tap into the potential of its markets. Japanese startups are increasingly taking advantage of the region’s opportunities, propelling the growth of their businesses and strengthening Japan’s regional influence.

Japanese Startups interested in entering South East Asia can now register for JETRO’s X-Hub Tokyo Singapore Course, run by Rainmaking Expand. Applications close July 24, 2023.

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In recent years, Singapore has emerged as a leading hub for data centres, hosting an impressive 60 per cent of the facilities in the region. These data centres have become integral to the country’s digital landscape and contribute seven per cent of its total electricity usage. While advanced infrastructure and connectivity make Singapore an attractive location for data centres, the high humidity levels present unique challenges for maintaining optimal performance conditions.

As energy-intensive facilities, data centres consume significant amounts of electricity, raising concerns about their environmental impact and energy security. Recognising these concerns, the Singapore government has implemented various initiatives and incentives to promote sustainable practices and improve energy efficiency among data centres. These efforts include using renewable energy sources like solar power, adherence to energy-efficient design standards, and adoption of best practices in cooling and power management.

The burgeoning growth of data centres in Singapore presents a delicate balance between satisfying the demands of an ever-evolving digital landscape and mitigating the environmental repercussions of energy consumption. But this is just one example of the many unique challenges these facilities face in Singapore.

The need for carbon reduction and sustainability in data centre operations

The growing reliance on data centres in today’s digital age has significantly increased global energy consumption and greenhouse gas emissions. These emissions contribute to climate change and environmental degradation, making it crucial for data centres to address their ecological impact.

To mitigate these effects, focusing on reducing carbon emissions and increasing sustainability in data centre operations is essential. By doing so, data centres can play a pivotal role in combating climate change while meeting the ever-growing demands of the digital landscape.

Implementing sustainable practices within data centre operations benefits the environment and facilities. By adopting sustainable measures, data centres can reduce energy consumption, lowering operational costs.

Also Read: Collaboration with corporates plays a crucial role in climate tech startups’ success

Furthermore, sustainable practices improve resource efficiency and minimise waste, resulting in a more responsible and eco-friendly operation. As a result, data centres that prioritise sustainability are better positioned to adapt to future challenges, optimise performance, and contribute to a more sustainable world.

Factors that make data centres in Singapore energy-intensive

Singapore’s unique location and climate present specific challenges contributing to the energy-intensive nature of data centres in the city-state. Situated near the equator, Singapore experiences high humidity levels and a warm yearly climate. These conditions can adversely impact the performance of IT equipment, leading to increased energy consumption. To maintain optimal temperature and humidity levels, data centres require cooling systems, representing a significant energy usage source.

As a bustling hub for digital businesses, Singapore experiences a high demand for computing power. City-state data centres must operate around the clock to support businesses and provide uninterrupted services. This constant operation demands considerable energy, particularly for cooling systems that must run continuously to maintain appropriate environmental conditions. The relentless demand for computing power further exacerbates the energy consumption of data centres in Singapore.

The limited space in Singapore, a small island nation, adds another complexity to data centre operations. To maximise their use of space, data centres need to operate at high densities, which can lead to increased energy consumption.

In addition, cooling a smaller area with a high concentration of IT equipment requires more energy, making efficient cooling solutions even more crucial. Furthermore, some data centres in Singapore have been in operation for several decades, featuring outdated, less energy-efficient infrastructure. Upgrading these older facilities to improve energy efficiency can require significant investments, adding to the challenges faced by data centre operators.

Environmental impact of energy-intensive data centres

Energy-intensive data centres have a substantial environmental impact, with carbon emissions being a primary concern. These facilities require large amounts of energy to power and cool their IT equipment, and much of this energy is generated from fossil fuels. In Singapore, which has limited renewable energy resources, data centres significantly contribute to the city-state’s carbon emissions, exacerbating global climate change.

Beyond carbon emissions, data centres also require considerable resources to operate, including water, electricity, and raw materials for construction and IT equipment. In resource-limited Singapore, data centres can contribute to resource depletion and strain local infrastructure.

One notable example is the significant amount of water required for cooling, which can strain local water resources, particularly during drought. As Singapore grapples with the constraints of being a small island nation, the resource demands of data centres become an even more pressing issue.

Data centres also generate a considerable amount of electronic waste (e-waste), which can contribute to environmental degradation and pollution. 

Electronic waste harbours toxic substances that can infiltrate soil and water systems, posing significant risks to human well-being and the surrounding environment. In Singapore, where space for waste disposal is limited, managing e-waste presents a considerable challenge for data centres.

Therefore, addressing the environmental impact of energy-intensive data centres is crucial for ensuring a more sustainable future in Singapore and worldwide.

Sustainable cooling solutions for data centres

Data centres require considerable energy to power and cool their equipment, with cooling systems accounting for up to 40 per cent of a data centre’s total energy consumption. Therefore, sustainable cooling solutions can significantly reduce energy consumption and greenhouse gas emissions while decreasing operational costs. Furthermore, by focusing on efficient cooling methods, data centres can contribute to a more sustainable future and optimise their overall performance.

One promising approach to sustainable cooling is liquid cooling, which offers a highly efficient alternative to traditional air conditioning systems. Liquid cooling involves circulating a coolant around the data centre equipment, effectively dissipating heat before returning the coolant to a re-cooling unit.

Also Read: How climate tech companies in Asia measure the impact of their work

This method can reduce energy consumption by as much as 30 per cent and even extend the lifespan of the equipment. By adopting innovative cooling solutions like liquid cooling, data centres can substantially decrease their energy footprint, minimise costs, and contribute to a more sustainable digital infrastructure.

Embracing sustainability: A collaborative approach for data centre operators and policymakers

Addressing the environmental impact of energy-intensive data centres in Singapore requires a concerted effort from data centre operators and policymakers. Implementing renewable energy solutions such as precision liquid cooling systems can significantly reduce energy consumption and associated costs for operators. Regular monitoring and optimisation of energy usage are also vital to identify areas for improvement and maintain efficient operations.

Policymakers play a critical role in driving change by developing and enforcing regulations that require data centres to prioritise sustainability. They can encourage the adoption of energy-efficient equipment, cooling solutions, and renewable energy sources through incentives or subsidies. Collaborating with industry leaders and stakeholders is essential for promoting sustainable practices and innovations in the data centre industry.

Ultimately, prioritising sustainability in operations and regulations is crucial for reducing data centres’ carbon footprint and energy consumption. By embracing sustainable practices, data centres can reduce costs and improve efficiency and contribute to a more sustainable future for all. Data centre operators and policymakers can help shape a more eco-conscious and responsible digital landscape in Singapore and beyond.

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In 2023, proving that it’s safe for customers to do business with you is paramount. Customer trust is second only to customer data privacy, and the two go hand in hand when creating a reputable company.

Use these six strategies to build consumer trust and improve your brand’s data privacy at the same time.

Modernise your website to gain customer trust

Few things scare off potential customers faster than an outdated website. It isn’t just that hard-to-navigate pages, poor mobile compatibility, and bright flash animations are annoying — it’s because sites that haven’t changed in years are often unsecured. 

Bring your business’s website into the 21st century to attract and retain more visitors. In the process, you can ensure it has modern cybersecurity features to protect people’s data.

Turn on multi-factor authentication 

2022 saw a dramatic uptick in the use of multi-factor authentication (MFA) in Southeast Asia. Hong Kong-registered a 13 per cent increase in the technology’s use, while those in the Philippines used it 25 per cent more than in previous years.

If you’ve ever visited a website that sent a temporary, time-sensitive passcode via SMS to your phone to use alongside your password, you’ve used MFA. Technology has become popular because it makes it much harder to steal data — in addition to hacking into a website, threat actors also have to gain access to a phone or tablet.

Turning on MFA might pose a minor annoyance to some website visitors, but most people appreciate the added security measure. It’s beneficial for creating a safe checkout system for online shopping. It also conveys that you take customer data privacy seriously.

Also Read: How to unlock possibilities through data privacy enhancing technologies

Employ AI to identify high-risk scenarios

Most cybersecurity software features an alert system to warn website owners of potential data breaches. For example, if someone fails multiple password attempts or logs into the site at an unusual time, the program will flag the unusual behaviour and issue an alert.

Software that uses AI goes a step further than just flagging suspicious activity. Some services also use machine-learning-powered alert scoring, sorting security alerts by urgency and relevance. You can prioritise the alerts to decide which ones need your attention most. 

You might think your website is impenetrable to hackers, but even the most reputable companies fall victim to cyberattacks. In 2019, WhatsApp — one of Asia’s leading messaging apps — experienced a breach, compromising 1.5 billion user accounts and giving hackers access to personal information. As another example, the International Committee of the Red Cross experienced a cyberattack in 2022 that compromised over 510,000 people’s data across 60 locations.

The truth is that anyone can experience a cyberattack, so you must prioritise customer data privacy to build consumer trust. That starts with using better cybersecurity software.

Create clean URLs

Your website’s address bar can tell visitors a lot about your business — intentionally or not. Long, complicated URLs with numbers, symbols and jumbled letters look less trustworthy than a curated URL describing the page. For example, on a page where customers can buy a pink handbag, the URL should end with something like “buy-pink-handbag” rather than the slug the site builder automatically assigns. 

Additionally, URLs with spelling errors are a red flag to many tech-savvy customers. That’s because untrustworthy sites often use subtle spelling mistakes to trick visitors into thinking they’re on a different page. Phishing scams often involve sites with names like Hotmail or Wells Fargo. Bloomberg.ma was a false news site designed to imitate Bloomberg.com, a legitimate financial news website.

Comb through your website’s URL slugs to ensure they reflect the actual content on the page and don’t contain spelling errors.

Explain your cookie policy

A popup explaining your website’s cookie policy might annoy some visitors, but many view it as a sign of good data management. By asking customers for consent to use their data — or allowing people to customise which data they provide — you can help build customer trust. In many cases, it’s also a legal requirement to have a transparent cookie use policy.

Also Read: Time to elevate the CFO’s stake in cybersecurity

Display security logos 

Another way to build consumer trust is through the use of logos. If your business is partnered with a network security company, include their logo on your website in a place customers can see it clearly. Make sure the image links to the company’s website and explains how the business protects data privacy.

For example, when customers visit your checkout page, put the security logo next to the section where people enter their credit card information. This will reassure people that your website takes extra steps to protect their data privacy.

Enhancing customer data privacy to gain consumer trust

Protecting customer data privacy is paramount for cultivating consumer trust and ensuring business operations run smoothly. A brand that conveys strong security measures is more likely to foster customer trust and develop a solid reputation.

Using modern cybersecurity and website design techniques, you can build a safe, trustworthy business where hackers fear to tread, attracting and retaining more customers in the long run.

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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

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In this episode, we are excited to welcome Xavier Mufraggi, CEO of SVN International Corporation and Partner at Eloquem Consulting. Prior to his role at SVN, Mufraggi was the CEO at YPO where he achieved a new record of 34,000 members in 150 countries. He was also previously the President and CEO of Club Med Europe, Middle East, and Africa.

In this conversation, we talk about why speaking the same language as locals can increase your ability to develop an understanding of the culture that’s required to build a successful expansion strategy in that market, the power of the authentic self as an integral part of personal and professional success, why skills are overrated in building teams (and what is the more valuable metric to look for instead), and the power of stories in better communication and reinforcing organisational vision.

Listen, subscribe, and leave a review now on Spotify or your favorite podcast platform.

Also Read: How startups are using Hong Kong as the launchpad of their international expansion

This episode is sponsored by our partner ZEDRA. Learn more about how the ZEDRA team can support you in expanding to new markets here.⁠ ⁠

Get your copy of our Wall Street Journal Bestselling book, GLOBAL CLASS, a playbook on how to build a successful global business⁠.

SHOW NOTES:
1:10 – Video starts
2:42 – Mufraggi’s formative experience that started his interpreneurial career. His father was an executive at a big American company, so Xavier was able to travel around the world at a young age. For example, he lived in Africa as an 11-year old
7:54 – How he learned that understanding culture and people is a very important skill early on
13:54 – They key in turning around Club Med in North America (During his time as the CEO, the company achieved historical records every year from 2011 to 2019)
20:15 – Building trust and ensuring organisational alignment in YPO, the world’s most influential global leadership community
21:45 – What Mufraggi, who was then the CEO of Club Med North America, learned from going undercover as in the CBS Series Undercover Boss
29: 00 – How organisations and business leaders could impact millions of lives in a positive way
40:16 – Why skills are overrated in building teams (and what is the more valuable metric to look for instead)
47:37 – The power of stories in effective communication and reinforcing organisational vision
49:19 – The power of the authentic self as an integral part of personal and professional success

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The content was first published by Global Class.

Image Credit: Global Class

The post Think you know what leaders need most to build successful global organisations? Think again appeared first on e27.

As Generative Artificial Intelligence (AI) continues to experience a surge in popularity, investors in the global startup ecosystem are competing to seize the hottest, up-and-coming startups that are working on solutions in the field.

As we go through the first half of 2023, e27 recently published a list of investors that have invested in AI startups in SEA.

From this list alone, we can look at several notable trends that we can compile into the following list:

1. Global investors are eyeing SEA

The most outstanding part about these AI investors is the fact that many of them are global venture capital firms from the notable startup ecosystem in the world, such as the US. All of them see potential in SEA as one of the fastest-growing regions in the world.

Notable names included Darwin Ventures, RTP Global and Harbinger Ventures.

Also Read: How Transparently.AI uses Artificial Intelligence to detect accounting manipulation, fraud

2. These investors have a high focus on the consumer sector

Harbinger Ventures is an example of such a VC firm. It focuses on identifying and scaling high-growth companies in the consumer sector. It works exclusively with early-stage consumer brands led by exceptional female founders or mixed-gender founder founding teams and incentivises collaboration amongst its portfolio companies by giving each entrepreneur an equity stake in the portfolio.

3. Working in the deep tech and life sciences sector

There are at least two notable VC firms that are focusing on the deep tech and life sciences sectors.

Lunar Ventures is a deep-tech, seed-stage venture fund with a team of three deep-tech expert partners in Berlin. It writes a cheque of EUR300,000 to EUR1 million (US$325,000 to US$1.8 million) to technical teams with strong R&D backgrounds who build European products that will sell globally.

Another contender is Biospring Partners which invests in companies with the potential to “fundamentally shift how technology is utilised across the life sciences sector.” Biospring invests in growth-stage B2B companies driving innovation across the life sciences industry and beyond.

4. A great variety of focus in terms of stages

All the VC firms are investing in various stages of companies. While early stage startup investment continues to remain popular for AI startups in SEA, several VC firms are eyeing growth and late stage companies instead. For companies that are working in the deep tech and life sciences sectors, this is a reasonable approach as it allows potential investors to look at the viability of the technology over a longer period.

Also Read: These Artificial Intelligence startups are proving to be industry game-changers

Will this trend continue?

Our interpretation is ‘yes’, at least for the remainder of the year. If we compare to popular verticals from last years, such as Web3, there is a possibility that Gen AI and related solutions will have a stronger staying power in the market. This is due to its ability to prove to the wider public its benefits and advantages, which include its wide use cases.

We might even see local and regional investors looking more into the segment to seize opportunities in this sector.

How exactly can startups seize this opportunity? The good news about AI is that it is versatile in its use. Even companies that are working in sectors outside of AI have the opportunity to implement the technology in their solutions.

In addition to investment, this also means more opportunities for tech talents with an understanding of AI technologies in the near future. Startups will look towards expanding their teams, and this often means they might seek the support of their investors.

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Image Credit: Hitesh Choudhary on Unsplash

The post What we can tell about AI investment in SEA this year appeared first on e27.

When I first started in the ecosystem back in 2016, startups were in their infancy stage. As a fresh grad, the usual setup is to join a multinational corporation, NGO or government sector.

Top talent continues to be mostly attracted to join multinationals and conglomerates due to long-standing perceptions of career safety and growth. Startups were yet to become mainstream, and there used to be mistrust in their ability to grow a young professional’s career. 

The significant progress of the post-pandemic Philippine landscape 

The narrative has now changed. Amidst growing innovation needs in recent years, incubators and accelerators emerged, nurturing budding entrepreneurs and fostering a startup ecosystem to mitigate high failure rates.

Talent is still the biggest asset of the Philippine ecosystem, and it has been further leveraged for community growth. Furthermore, the pandemic has altered the landscape, prompting an assessment of the Philippines’ recent development.

The startup ecosystem in the Philippines has been growing rapidly, driven by a combination of factors such as a large young population, increasing internet penetration, mobile-friendly infrastructure, and private-public support for entrepreneurship.

Based on Jelmer David Ikink, Founding partner of Foxmont Capital Partners, “If you look at the number of smartphones that Filipinos own, at the moment, it’s 75 million. That’s on par with Indonesia, which has double the population of the Philippines.”

Ikink adds, “And while on those phones, Filipinos use social media a lot and are very active in live streaming and purchasing goods and services through e-commerce platforms.”

Based on the Global Startup Genome Report in 2022, the Philippine startup ecosystem and Manila’s entrepreneurial ecosystem were among the top 20 Global Ecosystems and Top 10 Asian Ecosystems in Affordable Talent. The country also ranked among the top 25 Asian Ecosystems and top 15 Asian Emerging Ecosystems in Funding.

Also Read: Unleashing the power of specialised AI startups in the era of generative AI

Funding opportunities signal ecosystem expansion

To further highlight the point, Philippine startup Pickup Coffee, a home-grown coffee company focused on making premium beverages more accessible, has US$40 million in new funds; Go-Ventures, backed by Indonesia’s GoTo, leads the Series A1 investment round. This is not a unique case of fundraising, as reported by the annual Philippine Venture Capital Report.

As of February 2023, the country had already recorded 17 startup deals, putting the Philippines on track to reach 23 deals by the end of the first quarter of 2023. The figure would put Q1 startup investment at pre-COVID-19 levels, demonstrating investors’ bullishness in the prospect of technology and digital platforms in the nation.

Talent is the heart of the startup community

The past years have seen an exciting trajectory in the amount of capital funding being raised and invested in the Philippine startup ecosystem. However, local startups being built and grown continue to face the challenge of a lack of talent willing to take the leap into building startups.

Rene Cuartero, CEO of AHG Lab, equips, “This is why we at AHG Lab continue to find ways to engage universities, educational institutions, and internship partners to increase interest and change perception in startups. If we are able to attract more talent into the ecosystem, we also give more innovation to Philippine startups to succeed.”

He further adds, “Startups are born out of the need to innovate and solve pressing needs, and innovation brings the best of talent to the world stage. At the heart of the community is a multitude and diverse set of talent, and we plan to tap and grow that.”

At the same time, an alternative perception of the ecosystem plays an important role. While there are big players in the e-commerce, fintech, and mobile apps industry, nobody has managed to tap the whole of the Philippine market yet.  Startups big in Metro Manila might not understand the needs of those in other cities and rural areas. The Philippines being an archipelago, is an opportunity to replicate a similar strategy that resolves localised issues in the market. This process is so dynamic that there is a lot of ground to cover.

Public-private support is the main catalyst for growth

The best way to foster this growth lies with ongoing public-private support from ecosystem players. The Philippines is now a booming digital economy, driven by tax incentives and support extended to founders cited as reasons a startup should consider moving to the Philippines. 

The Department of Trade and Industry said that the country offers a 20 per cent corporate income tax (CIT) rate for startups as mandated under Republic Act 11534 or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law. At the same time, CREATE, through the Strategic Investment Priority Plan (SIPP), provides a more strategic tax incentive package for businesses and startups depending on tier, location, and market orientation.

Also Read: Finance your startup: 10 types of investors you should know

The Department of Science and Technology has also established local technology business incubators (TBIs) that focus on startups born in regions outside Metro Manila. A Technology Business Incubator (TBI) is a facility where startups are hosted, and business development services are provided. For would-be technology entrepreneurs and startups, DOST-funded TBIs offer office space as well as technical services and facilities to get their businesses established.

At the same time, the Department of Information and Communications Technology (DICT)  has partnered with various private players to promote startups in the Philippines, including a roadshow that aims for attendees to digest startup basics and innovation to the existing curriculum. 

Apart from the increased investment and government support, venture studios were also born out of the pandemic. In particular, Founders Launchpad, a recently launched incubation program by an independent venture studio, AHG Lab, and community ecosystem-focused Draper Startup House in partnership with DICT and QBO Innovation Hub, has expanded its application to talent outside Metro Manila.

Simon Bauer, Partner at AHG Lab and Program Lead of Founders Launchpad, quotes, “At Founders Launchpad, we believe that great ideas and passionate founders can be found all over the Philippines. That is why we build a hands-on support program that provides guaranteed funding, resources, guidance, as well as co-working and living space in the local startup capital in Metro Manila to kickstart their entrepreneurial journey and startup growth.”

It is crucial to bridge the gap between the abundance of support in the country’s capital and the entrepreneurial talent that exists outside of Metro Manila. Giving all founders equal access to the right foundations would cement the Philippines’ status as a hub for startups. While easier said than done, ecosystem players recognise its importance and are taking steps to ensure the availability of assistance anytime, anywhere. 

While the startup ecosystem in the Philippines has made significant progress, challenges such as access to capital, infrastructure limitations, and bureaucratic processes still exist. However, with ongoing support from the government, growing investor interest, and a dynamic entrepreneurial community, the startup ecosystem in the Philippines continues to evolve and offer exciting opportunities for innovative ventures.

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Recently, Robocash Group published a study which reveals that from 2000 to 2022, the number of fintech companies in South and Southeast Asia was growing fast. Growth in key sectors, including Payments and transfers, e-wallets, digital banking and alternative lending, has been fueled by increasing levels of private equity raised through funding rounds. 

Statistics on funding attracted by fintech in SEA this year show that investment priorities are changing. In particular, such sectors as Insurance Tech, Health Tech and Marketing Tech are coming to the fore. Data from the same source, which shows the distribution of investments by sector and by year, also demonstrates the growth of these segments in 2023.

So, what does it mean?

First, this is a signal that the basic segments of the fintech market are becoming saturated. Although the potential of e-wallets, digital payments, and digital banking in the region is far from being realised, the degree of competition in these sectors is already quite high.

Also, the natural market expansion can be constrained by regulatory restrictions — as in the case of moratoriums on new digital banks and e-money providers in the Philippines. On the other hand, regional fintech remains highly attractive for investments. That is why highly promising sectors, which are still forming their full potential, come to the fore. 

What exactly attracts investors?

To have a better understanding of the current trends in regional fintech investments, let’s take a closer look at them.

Also Read: Finance your startup: 10 types of investors you should know

The aforementioned surge of interest in health tech is confirmed by large transactions — for example, US$33.5 million attracted in series B by the Vietnamese company BuyMed. The company owns a B2B platform that connects pharmaceutical manufacturers, distributors and clinics. US-Singapore company Holmusk also raised US$45 million in round B. Holmusk runs NeuroBlu, a clinical behavioural health database, which is used in drug development.

Another example is the Singaporean startup Qritive, which raised US$7.5 mln. The company uses artificial intelligence to detect pathologies such as cancer. As we can see, the range of activities is quite diverse, which reflects the growing popularity of the segment and big prospects for its rapid development.

Many companies attract investments to expand into new markets. These include Roojai (insurance, Thailand), Qoala (insurance, Indonesia), Advance (Philippines, salary payments), Pilon (Singapore, cloud financial systems), Jenfi (Singapore, digital startup investments), bolttech (Singapore, insurance), BetterTradeOff (Singapore, financial advisory), CrediLinq.Ai (Singapore, financial services), Qritive (Singapore, healthcare).

As we can see, there is increasing popularity of insurtech. Also, some of these companies are going to expand their presence not only in Southeast Asia but also in other parts of the world, including Europe and the Middle East. Obviously, both product and geographic diversification are becoming increasingly important.

Speaking about product solutions, there is also interest in investing in artificial intelligence. This is confirmed by projects which received significant funding, including MONIX (Thailand, digital lending, US$20 million), Qritive (Singapore, healthcare, US$7.5 million), Trust IQ (Singapore, software development, US$105 million), Advance Intelligence Group (Singapore, financial services, US$80 million), Soft Space (Malaysia, software, US$31.5 million) and others.

In particular, Advance Intelligence Group will direct the attracted investments to improve the work of AI, which is used in transactions, lending and other products. Trust IQ, together with its investors from the Masan Group, will develop a loyalty program that uses AI and ML, as well as a scoring system which does not require proving income when issuing credit cards.

Also Read: It is important that founders see investors as their partners: Christina Teo of she1K

Another trend is non-standard projects, which also emphasize the change in the structure of investment in the region. For example, Little Wallet from Singapore claims to become the first in Southeast Asia to implement the concept of a “family bank”.

According to the company, no one in the region has tried to do this before. Little Wallet uses gamified youth branding to appeal to users aged 6 to 18. The company raised US$1.6 million in its pre-seed funding round. Pilon is another project from Singapore worth mentioning.

The company acts as a financial intermediary between banks, small and medium-sized businesses (suppliers) and large enterprises (purchasers) to ensure a seamless experience for all parties. Pilon raised US$5.2 million in seed funding.

A large group of investors took part in more than one deal — for example, Big Sky Capital, Gobi Partners, Northstar Group, EDBI, Openspace Ventures, East Ventures, MassMutual Ventures, Sequoia Capital, Khazanah.

There are investors who prefer investing in one direction (Big Sky Capital — lending; Khazanah — insurance; PayPal Ventures — payments and transactions), and those who are engaged in a variety of fintech products (Gobi Partners — insurance, neo banking; MassMutual Ventures — financial services, health; Northstar Group — lending, e-commerce). The comprehensive approach of large institutional investors confirms their interest in Southeast Asian fintech.

In conclusion, the current situation around the funding of fintech in Southeast Asia can indicate a change in the drivers of industry development.

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The legal industry is undergoing a remarkable transformation with the advent of artificial intelligence. As a lawyer who has embraced AI solutions and innovation, I have witnessed firsthand the profound impact it has on legal practices.

In this article, I will explore how AI is revolutionising legal research, contract analysis, and case management, enabling me and my fellow legal professionals to streamline workflows, deliver efficient legal solutions, and shape the future of our law practice.

 

The rise of AI in the legal industry

As a lawyer who has integrated AI into my work processes, I have experienced the game-changing potential of artificial intelligence in the legal industry. AI excels in legal research, eliminating the hours previously spent sifting through extensive information. Now, AI-powered tools can analyse databases, extract relevant information, and provide quick insights, significantly reducing research time and effort.

Contract analysis is another area where AI algorithms shine. Reviewing contracts for clauses, risks, and compliance used to be time-consuming. However, AI-powered contract analysis tools leverage natural language processing and machine learning to swiftly analyse contracts, identify critical provisions, and flag potential risks. This empowers me to make informed decisions more efficiently.

Transforming case management

Through the integration of AI, case management in litigation has undergone a transformative shift. Machine learning algorithms analyse past cases, predict outcomes, and provide valuable insights that support my legal strategy. This data-driven approach enhances decision-making and enables me to assess the strengths and weaknesses of my cases more effectively.

Additionally, AI-powered tools automate routine administrative tasks, such as document review and case documentation. By utilising optical character recognition (OCR) and data extraction techniques, these tools efficiently sort through vast volumes of documents, identify relevant information, and organise it in a structured manner. This not only saves time but also reduces the risk of human error.

Also Read: Beyond the token and the law of diminishing marginal (NFT) utility

Improving access to justice

As a lawyer committed to promoting access to justice, I recognise the significant advantages that AI brings to the legal field. Many individuals and businesses face barriers when seeking legal assistance due to high costs and limited resources. AI-powered solutions provide an opportunity to bridge this gap by offering affordable and accessible legal services.

For instance, chatbots and virtual assistants powered by AI can interact with clients, answering their legal queries and guiding them through basic legal processes. This empowers individuals to seek preliminary legal advice without the immediate need for a consultation with a human attorney. By leveraging AI, I can extend my legal expertise to a broader range of individuals who may not have otherwise had access to legal guidance.

Addressing ethical considerations

As a lawyer who embraces AI solutions, I understand the importance of addressing ethical considerations associated with its use. Transparency and accountability in algorithmic decision-making processes are crucial to ensure fairness and prevent bias. Furthermore, maintaining client confidentiality and data security is always a top priority when utilising AI tools.

I am also aware of the ethical challenges related to potential job displacement for certain tasks traditionally performed by legal professionals. However, it is important to note that AI technology is designed to augment human capabilities, not replace them.

By automating repetitive tasks, AI allows me to focus on higher-value activities such as legal analysis, client counselling, and strategic thinking, ultimately providing a more comprehensive and tailored service to my clients.

Final thoughts

As a lawyer who has fully embraced AI solutions and innovation, I can attest to the transformative power it has brought to the legal industry. By leveraging AI-powered tools and algorithms, I have enhanced my efficiency, accuracy, and overall effectiveness as a legal professional.

AI enables faster and more comprehensive legal research, streamlined contract analysis, improved case management, and greater access to justice. By embracing AI technology while upholding ethical considerations, I can harness the full potential of AI and actively shape the future of our law practice.

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Amidst the challenges of a tough funding climate, e27 is launching an exciting new article series called Angel’s Advocate to provide fresh perspectives on angel funding. In this exclusive series, we sit with prominent angels to hear their stories and strategies and gain unique insights about early-stage financing.

Adriel Yong is currently the Head of Community at Ascend Angels, one of the largest angel networks in Singapore with over 400 members. Yong’s journey as an angel began when he started angel investing in SEA startups such as Doyobi, AcadArena, JiPay, StackUp, Lumina and Acme.

He also works with Jeremy Au on the BRAVE Podcast and co-authored their publication featuring the top 10 stories on the show since its inception. Outside of startups, Yong is passionate about social mobility and continues to support Access Singapore, an education non-profit that he helped to found back in 2019.

In this edition, Yong shares his take on angel funding.

Edited excerpts:

How do you typically approach investing during a funding winter?

During a funding winter, we focus on companies with strong fundamentals and a high potential for growth, especially those with proprietary technology and experienced teams. We invest smaller initial amounts and look for startups that can scale with less capital.

What are your typical investment criteria, such as industry, stage, and geographic location?

As one of the largest angel networks in Southeast Asia, we are excited to back the next generation of founders in the region across various sectors and stages. Our sector and regional focus is a reflection of the concentration of membership in this part of the world, which allows us to best source, evaluate and support our portfolio companies.

We particularly like to back second-time founders and founders with a deep understanding of the problems they are going after because of a hard-earned insight or significant operating experience.

Can you describe your investment process from initial contact to closing a deal?

Our team and extended angel network can often be found in startup events and industry mixers. After the initial contact, the investment team will speak with a company to better understand their proposition and evaluate if there is a mutual fit to proceed further.

Also Read: Angels should play a more hands-off role: Sanjay Shivkumar of Carousell

Thereafter, we will start to speak with relevant members of the angel network to do initial due diligence and gather interest to support the company in its current round of fundraising. Once we have gathered initial conviction and interest in the company, we will share it with the wider angel network and arrange calls for the founder to speak with interested parties before collecting commitments.

How do you evaluate a startup’s potential for growth and success?

We think about companies from first principles and try to understand what is the problem they are actually going after, how large that problem is and how much people would pay to solve that problem. We ask ourselves if this is the best team to tackle this problem and whether we are able to effectively partner with them to accelerate their growth with our network over the medium to long term.

How important is the founder’s experience and background when making investment decisions?

We have observed that the founder’s experience and background can influence product, commercial and hiring outcomes significantly, especially at an early stage. Second-time founders often have an advantage in understanding pitfalls in company building, such as how to hire, fundraise and structure teams effectively.

Founders with deep operating experience in particular industries will have a massive advantage in attracting the best talent to work with them, have higher clarity on their customer persona and tend to see much quicker commercial traction. All these translate to stronger growth in the business and better fundraising outcomes.

Can you share your successful investment and what made that investment successful?

One investment we are particularly excited about is Ringkas, a digital mortgage platform in Indonesia. The founding team previously built large companies in Southeast Asia and had a good combination of startup, property and financial expertise.

What makes Ringkas impressive is its ability to structure and secure complex partnerships with top banks in Indonesia and the largest property developers to secure over $2 billion in property supply over a short span of time.

Furthermore, the gap in Indonesia’s mortgage industry is massive with Indonesia’s mortgage penetration rate, currently at a modest 3.25 per cent of the total GDP, which significantly lags behind countries like India and the United States, which have penetration rates of 11 per cent and over 50 per cent of GDP, respectively.

What are some common mistakes that startups make when pitching to angel investors? What are some myths about angel investment?

Startups need to inspire confidence in prospective investors when they pitch. Some common mistakes would be being vague about product differentiation, the business model and unit economics and the details of going to market.

Even though a pitch might have gone well for angels, some might not participate in the end when they feel that the deal terms are not sufficiently fair for the company’s stage.

How important is the alignment of values between the investor and the startup founder?

Venture investing is often thought of as a one-way street in terms of whether an investor finds a startup attractive. I argue that a mutual alignment of values between investors and startups is important for long terms success.

Also Read: It is important that founders see investors as their partners: Christina Teo of she1K

For instance, if the investor prioritises high topline growth and not strong fundamental unit economics, while the founder does, then it might not be the best investor-investee relationship over the medium to long term. This is especially challenging if such an investor is a major shareholder or board member with additional levers to compel the founder to their vision for the company.

Our advice to portfolio founders is to speak to other portfolio companies of potential investors to understand how the fund manages their portfolio companies, what they prioritise, how they have managed crises in their investees and the individual working style of Partners that will be board members.

How do you manage risk when investing in startups? Are there any specific metrics or indicators you look for?

To manage risk effectively when investing in startups, we first have to be able to identify the risks. As an angel network with over 400+ accredited angels across Southeast Asia, we tap into our extensive network to do industry and founder due diligence.

This helps us accelerate our internal education on new markets that we might be unfamiliar with and helps us get better clarity of the backgrounds of the founders we work with. Beyond the network, we also tap into our portfolio companies (over 60+) and funds that we are limited partners.

As a network that invests across the early stage and growth stages, we also have the flexibility of revisiting investments in the future that we do not feel the most comfortable with at the current stage because of certain product or market risks that we are unable to underwrite.

Finally, when we do make an investment, we leverage our angel network to derisk things related to commercialisation, hiring and further fundraising.

For individual angel investors, a key part of risk management is sizing your bets and dealing with fair terms. I previously discussed how to think about angel investing ticket sizes and deal terms with Jeremy Au on the BRAVE podcast, do check out the episode here if it’s something you might be thinking about.

Can you share any advice for startups looking to raise funds from angel investors?

The truth is, your fundraising journey started way before you decided to find a company. Angel investors will do extensive reference checks with people whom you have worked for previously and those that have worked with and for you.

Are you someone that the best talent will want to work with and for? Founders should actively think about cultivating strong relationships with their previous teammates and bosses and leveraging them when they want to start out on their fundraising journey with angel investors.

There is also a cliché: “When you ask for money, you get advice. When you ask for advice, you get money.” I have seen advisors of startups/founders become the first angel investor in companies and actively advocated for them to other investors based on their working experience with the team.

In this regard, actively seek advice at each point of your journey, and that can reap both direct benefits (better product and traction) and indirect benefits (greater trust and advocacy from advisors).

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