Engine Biosciences, a Singaporean company leveraging machine learning and high-throughput biology to discover and develop precision oncology medicines, has secured US$27 million in a Series A extension funding round led by Polaris Partners.

Existing backers ClavystBio, Invus, and EDBI, along with new investors Coronet Ventures and SEEDS Capital, also co-invested.

This round brings its total funds raised since its inception to US$86 million.

The biotech firm will use the funds to support the translation of R&D programmes derived from its proprietary NetMAPPR machine learning network biology platform and CombiGEM combinatorial genetics system into clinical settings.

Also Read: Singaporean biotech startup Automera secures US$16M Series A financing

Established in 2014, Engine Biosciences discovers and develops impactful precision medicines by deciphering complex biology with integrated computation and experimentation, with particular depth in oncology. The firm is advancing its pipeline of oncology therapeutics towards the clinic internally and with collaborators, and in other disease areas through partnerships.

Engine Biosciences has identified over 30 new precision medicine opportunities with validation data.

It has also reported the identification of new patient selection biomarkers for different targeted therapies, which have been validated to enhance tumour sensitivity to specific investigational drugs by 100 times. These biomarkers offer the potential for near-term improvements in clinical outcomes, commercial viability, and drug development economics.

“We have witnessed first-hand Engine Biosciences’s considerable progress since our initial investment, advancing its technologies towards compelling precision medicines positioned for translation,” said Amy Schulman, Managing Partner of Polaris Partners.

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In the latest edition of the e-Conomy SEA report, Google, Temasek and Bain & Company revealed that despite global macroeconomic headwinds, the region’s gross merchandise value (GMV) continues an upward trajectory and is set to reach US$218 billion, growing 11 per cent year-on-year (YoY).

The report also reveals that the Southeast Asia (SEA) region’s revenue from the digital economy is poised to hit US$100 billion this year, growing 1.7x as fast as the region’s GMV.

Seeing this potential, the report highlights the need for startups (“digital companies”) to have clear pathways to profitability and prove to investors that they have dependable exit pathways.

This is especially true because SEA private funding has declined to its lowest level in six years after record highs, in line with global shifts towards the high cost of capital and issues across the funding lifecycle.

“These issues include a broader correction in valuations compared to the highs of 2021, uncertainty surrounding the profitability pathways of some companies and a challenging capital market environment which makes potential exits more difficult to achieve,” the report stated.

Also Read: Ecosystem Roundup: Grab rolls out Web3 wallet; PhonePe challenges Google with zero-fee app store

“Funding declines cut across all investment stages, with late-stage deal flow slowing down the most. DFS continues to be the top investment sector due to its high monetisation potential. A growing portion of deal activity is funnelled into nascent sectors, signalling that investors are diversifying portfolios.”

The report also spotlighted the growth trajectory for various tech verticals in the region:

1. E-commerce
A continuing growth trajectory with a 22 per cent increase in revenue YoY, reaching US$28 billion. The sector’s GMV grew to US$139 billion in 2023 and is expected to reach US$186 billion in 2025, growing 16 per cent.

2. Online travel
Following the pandemic, the section is on track to recover by 2024 as flight passenger volume nears pre-pandemic levels. The sector’s revenue, as accelerated by inflation, will reach US$14 billion, increasing 57 per cent YoY. Its GMV grew 63 per cent YoY, reaching US$30 billion in 2023, and is tracking towards US$43 billion in 2025.

3. Transport
The sector is seeing a strong recovery boosted by successful monetisation efforts as its revenue reaches US$1.1 billion, growing 47 per cent YoY.

4. Food delivery
As its revenue hits US$0.8 billion in 2023, the sector grows 60 per cent YoY despite the return to in-person dining and a pullback in promotions. In the short term, the sector’s revenue growth is driven by increased take rate while user and order growth will drive it in the long run.

5. Online Media
As the sector’s GMV grows to US$26 billion, increasing 10 per cent YoY, advertising and video streaming are expected to remain its long-term revenue drivers as the sector heads toward US$34 billion GMV in 2025.

Also Read: AI, transparency, and the rising threat of ad fraud in Google’s Performance Max

For businesses to maximise these opportunities, there is a need to expand the depth of digital participation.

“While digital inclusion has made inroads in SEA over the past years, consumers outside of metro areas are at risk of facing a widening digital economic divide when it comes to digital participation – active involvement in the digital economy through consumption of products or services across sectors,” the report said.

“Areas beyond metros are particularly vulnerable due to the challenging unit economics. Addressing these gaps is the collective responsibility of all digital economy stakeholders. Removing barriers, such as supply and security issues, can improve the participation of non-HVUs and enable SEA’s digital economy to reach its growth ambitions.”

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Blockchain’s potential uses in government are generating widespread interest. Blockchain’s potential to enhance the public sector has prompted governments to begin testing the technology. The public sector’s implementation of the technology, however, is still in the testing phase.

There is a possibility that governments may transition away from centralised systems that are insecure and towards alternatives that are decentralised and based on blockchain technology. The implementation of public blockchains has the potential to bring about fundamental changes across the board in terms of the organisational structures that underpin governmental departments.

Key governmental processes may be sped up using blockchain technology. These services include things like checking people’s IDs and providing official stamps of approval on things like medical records and property deeds.

For what reasons should governments adopt blockchain?

Introducing blockchain technology into state government systems has several potential benefits. Governments have an essential function in the safekeeping and management of confidential data. Information regarding citizens, property, organisations, and government actions is kept by states.

Keeping private information secret while storing critical public data can be difficult and expensive. The governments of the first world are not immune to the problem of data leaks.

It’s possible that using blockchain technology may make it simpler for governments to manage sensitive data. The government is able to accomplish this goal while also protecting the integrity of the data and restricting unauthorised access.

Blockchain technology combats government corruption

In many online government services, blockchain could replace the need for middlemen. Because of this, it plays a special part in the fight against corruption in the government.

The mix of security and convenience that this technology offers in terms of record keeping is astounding. When warranted, blockchains can enable states to operate with a decentralised model. Such methods improve trust, auditability, and smart contract capabilities in real-time.

Also Read: Decentralisation, AI, and blockchain: Crafting the future of civilization

By utilising blockchain technology, the government has the potential to become more efficient while also increasing citizen participation. With the assistance of technology, the operation of the government can also be made more straightforward.

Blockchain technology improves openness in funding distribution

Every year, a number of national governments hand over millions of dollars to fund a wide range of charitable organisations. Humanitarian aid, social assistance, educational assistance, artistic endeavours, and other forms of assistance are among the most important of these.

The procedure of grant disbursements is notorious for being murky, confusing, and wasteful in the vast majority of cases. During this procedure, economic rents are at a high level, and a significant portion of the money is paid out in the form of third-party fees and banking expenses.

Blockchain technology could be implemented for use in e-voting

The security of people’s votes is becoming a source of concern for an increasing number of individuals. Concerns that never go away include those regarding the authenticity of voter registration, the level of voter engagement, and the convenience of access to polling places.

The use of voting systems that are founded on blockchain technology has the potential to improve these vital aspects of democratic proceedings. The characteristics of blockchain technology are immutability, security, transparency, and independence from a centralised authority. These characteristics have the ability to raise voter turnout while simultaneously lowering the number of cases of fraudulent voting.

Because of the significance of elections, using an electronic voting system that is based on blockchain technology would be able to reduce the likelihood of voter manipulation and keep the integrity of the voting process intact.

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Sustainable development firm Chemonics International has announced a US$5 million investment into Philippine venture builder Talino Venture Studios.

The core mission of this strategic partnership is to harness their combined expertise to tackle the challenges of financial inclusion in emerging economies. The partnership will focus on fintech solutions, including one to expand financial inclusion among the 50 million unbanked citizens of the Philippines, as well as in other low-income economies.

Also Read: Talino Venture Labs banks US$1.25M to grow its inclusive fintech venture studio

“We’re devoted to closing the financial inclusion gap for the underserved individuals and communities in emerging nations worldwide,” Talino Venture Studios CEO Winston Damarillo said.

Talino Venture Studios is a global venture studio for inclusive fintech. Born in the intersection of Silicon Valley and Southeast Asia, it aims to bridge financial inclusion for over 1.7 billion people worldwide. It uses the venture studio model to build repeatable, scalable, and profitable fintech firms that empower underserved, underrepresented groups with financial access and mobility.

Also Read: Philippine insurtech startup Saphron raises US$1M from Sage Venture, Talino Labs

Founded in 1975, Chemonics is a global sustainable development consulting firm with over 6,000 experts in more than 100 countries. With deep experience in applying new technology, including digital payments, in some of the most remote and under-developed areas in the world, Chemonics has used drone technology to deliver and pick up medical lab samples in hard-to-reach areas of Malawi and has developed a technology-based forest and biodiversity conservation system in the Philippines.

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Vircle, a Malaysian neobanking startup helping parents raise money-smart kids, has secured an undisclosed sum in seed funding co-led by state-owned VC fund Kumpulan Modal Perdana (KMP) and Gobi Partners.

Gobi made the investment through the Gobi Dana Impak Ventures (GDIV) fund.

Also Read: Gobi Partners leads pre-Series A round of Malaysian reseller digital ecosystem Ejen2u

With this funding, Vircle aims to expand its services to public schools nationwide.

Established in 2019 by Gokula Krishnan, Vircle instils lifelong money habits among young children through partnerships with major schools across Malaysia. Its parental control technology empowers parents to oversee and manage their children’s expenses in and out of school. Its child-safe Visa prepaid card offers parents a regulated financial tool to help guide their children in navigating the cashless and digital banking environment with careful oversight, instilling financial responsibility.

Presently, Vircle provides services to families representing 130 nationalities and operates in partnership with over 58 private and international educational institutions.

“Our mission is to bank one million Malaysian children and a total of three million children across Southeast Asia within the next five years. We’ll achieve this by constantly innovating in collaboration with parents and regulators backed by funding from our investors such as KMP and GDIV,” said Krishnan.

Also Read: ‘Neobanks can create a better digital CX by leveraging AI, blockchain’: banco CEO

Gobi Co-founder and Chairperson Thomas Tsao added: “In a region where 160 million children lack access to banking services, Vircle emerges as a beacon of hope, introducing a safe passage into the cashless world. With an emphasis on cultivating crucial money management skills, Vircle addresses a significant gap in both the educational system and households across Southeast Asia.”

Established in 2001, KMP is wholly owned by the Ministry of Finance and under the purview of the Ministry of Science, Technology & Innovation (MOSTI). Since its inception, KMP has invested in more than 40 companies across IoT, advanced materials, semiconductors, automation, green technology, and renewable energy.

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GoTo Group, the Indonesian tech conglomerate, has announced its seventh consecutive quarter of adjusted EBITDA improvements as it continues its journey towards profitability.

In Q3 2023, the group’s adjusted EBITDA loss decreased to 940 billion rupiah (US$59.3 million), marking a significant 74 per cent improvement. According to CFO Jacky Lo, this achievement was attributed to the company’s efforts to reduce operating expenses by eliminating redundancies and leveraging technology.

Also Read: Ecosystem Roundup: Investree raises US$231M; GoTo scores US$150M; 3AC co-founder arrested

Furthermore, the company revealed that it has decided to put on hold its plans for an international IPO.

In terms of financial results, GoTo Group posted a net revenue of US$228.2 million for Q3 2023, representing a 21 per cent decrease compared to the same period the previous year. This decrease was mainly due to a catch-up adjustment in the same quarter in 2022. Excluding these adjustments, the net revenue for Q3 reflects a robust 19 per cent year-over-year growth.

The company also managed to reduce its net loss by 65 per cent, bringing it down to US$150.6 million, primarily driven by a 36 per cent reduction in total incentives and product marketing spend year-on-year.

Group gross transaction value returned to positive growth on a quarter-on-quarter basis, with strong performances from its e-commerce and on-demand services.

Regarding its e-commerce arm, the adjusted EBITDA loss narrowed by 84 per cent year-on-year to US$14 million. The company strategically invested in this business unit during the quarter, slightly increasing incentives and promotions while reducing platform fees.

Although the growth rate was relatively slower for its fintech arm, GoTo launched several new products, including the GoPay App, cash loans on Tokopedia, cash loans on the GoPay App, and GoPay Tabungan (Savings) by Bank Jago.

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On Monday, Indonesia-based venture capital firm AC Ventures, in collaboration with the global consultancy PricewaterhouseCoopers (PwC) Indonesia, released a playbook on corporate governance tailored for tech startups.

According to a press statement, the playbook is anchored in the Indonesian General Guidelines for Corporate Governance. It offers actionable advice on accountability, transparency, sustainability, and ethical behaviour as essential pillars to ensure a company’s enduring resilience and success in an unpredictable business climate.

There are several key points that the playbook offered, but one that stands out for me is this part: There has been a decisive shift in the investment landscape in recent years, with 80 per cent of investors now cautious of “greenwashing” and 70 per cent of consumers showing a preference for sustainable products.

“Today’s investor landscape is rapidly shifting toward a keen focus on environmental, social, and governance (ESG) metrics,” the report wrote.

“Given PwC’s revealing data—one point in 2022 exposing that a staggering 80 per cent of investors are cautious of ‘greenwashing’ and another in 2023 highlighting that 70 per cent of consumers lean toward sustainable products, it has become evident that startups must attune themselves to these changing dynamics if they hope to raise capital and succeed in the market.”

But the thing that is at stake here is not just funding, though we will not deny its importance for startups.

Also Read: Sunway Group’s Matt Van Leeuwen shares insights on corporate innovation and partnership with startups in Malaysia

What this means for startups today

The startup ecosystem is entirely different from what it was years ago when I began my career by writing about the Indonesian startup ecosystem.

Back then, there seemed to be plenty of leeway, an almost permissive way of doing things. Cash burning was so common that once, someone I know tweeted a picture of billowing smoke on the horizon with the caption, “Oh, look, some startup is burning cash again.” Growth at all costs was the rule of the games; startups are competing to grow the fastest and soonest.

Ideas such as ESG metrics are merely ideas. It was not something that was realistic to implement. After all, they were all startups.

But as we face back-to-back global crises and are forced to get our things together, as we witness how our indulgences caused us several health problems, we are finally called to run our operations like a “proper” business. Several investors even put ESG impact as a factor in their decision-making process when considering a potential investment.

This means with the need to pay meticulous attention to profitability, we find ourselves playing a different game. We no longer can get away with the notion of “just a startup”. Suddenly, we are forced to consider our place in the world and the impact that we have created.

Also Read: Gen Z is saying no to climbing corporate ladders. Here’s what it means for Singapore’s startup ecosystem

Like any other business, the activities of production and distribution that we perform as startups have consequences to the environment. We are not exempted from responsibilities, though the scale of that responsibility may vary.

On the grander scale of things, it is all about making an impact and doing things responsibly.

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Image Credit: RunwayML

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