The solo business owner (SBO) is a solopreneur, a freelancer, a side hustler – an individual who wishes to start a business on his or her own. This has become a growing trend post the COVID-19 pandemic where gig culture is no longer seen as a last resort to gain work but rather a preferred choice for many who wish to have multiple sources of income, fuelled by the flexibility of remote working in this new digital landscape.

Typically, the SBO would want to see if the business takes off before investing more time, effort and money to set up a company to carry on the business. The cost of incorporation and upkeep of a company alone can be deterring for the SBO who has yet to see assuring returns on the business to justify such cost.

For some SBOs, operating through a company may not even be relevant at all if there is no intention to scale up, especially if the end goal is to have the freedom to hop between multiple side gigs or simply supplement existing income.

The alternatives for going solo without setting up a company in Singapore are relatively limited. The SBO could choose to carry on the business under his or her full name (if the SBO is a Singapore citizen or permanent resident (“Local Resident”)) or register a sole proprietorship in Singapore.

This article explores the suitability of these alternatives as well as other legal considerations for starting a small-scale business in Singapore on your own. The information in this article is provided for general reference only and should not be relied upon as legal advice.

Carrying on business in Singapore

ACRA registration

Pursuant to the Business Names Registration Act 2014 of Singapore (“BNRA”), a person carrying on business in Singapore must register with the Accounting and Corporate Regulatory Authority of Singapore (“ACRA”) unless the person is exempted under the BNRA.

Carrying on business in Singapore includes every form of trade, commerce and profession, and any other activity, that is carried on for the purposes of gain, even on a part-time or casual basis (but does not include any office, employment or occupation).

Also Read: How to navigate legal issues for startups

For example, an individual who makes money on the side from selling homemade goods (such as home-baked foods or handmade crafts) or freelance services (such as consulting as an independent contractor or creating online content for paid advertising as an influencer) may be treated as carrying on business in Singapore and hence subject to the above requirement under the BNRA.

Licences and regulatory compliance

The SBO may need to obtain relevant business licences if the business falls within any regulated industry in Singapore, such as the financial, accounting or trading sectors. The business may also be subject to industry-specific guidelines or practices.

For example, a home-based food business may need to comply with food safety and hygiene requirements under the Sale of Food Act 1973 of Singapore and the Environmental Public Health Act 1987 of Singapore, while an influencer who is paid for online advertising may need to comply with advertising guidelines published by the Advertising Standards Authority of Singapore.

Home-based business

The SBO can carry on business in Singapore from the ease of his or her home under the Home-Based Business Scheme of the Housing & Development Board of Singapore (“HDB”) (for public housing) or the Urban Redevelopment Authority of Singapore (“URA”) (for private housing) without HDB’s or URA’s approval, subject to meeting the conditions of such scheme.

For example, the business must be operated only by the property owner, registered occupant or tenant of the property (with consent from the property owner), the property must remain a residential dwelling with no advertisements, signages or posters displayed, and the business activities must not cause disamenities to the neighbours.

If the SBO wishes to operate a home office supported by non-residents of the property, the SBO would need to register with HDB or URA for a home office licence under HDB’s or URA’s Home Office Scheme (as the case may be), subject to meeting the conditions of such scheme.

For example, the type of business operated must fall within HDB’s or URA’s prescribed list of permitted businesses, the home office must be used for administrative functions only (and not for other business activities such as receiving customers), and only up to two non-residents of the property can be hired to support the home office.

Work approvals

If the SBO is a Local Resident who is an employee working for an employer, the SBO should check that the provisions of the employment contract between the SBO and the employer (particularly any non-compete, conflict of interest or exclusivity provisions) do not restrict the SBO in any way from carrying on the business, whether during or after such employment. Otherwise, the SBO should obtain a waiver of such restriction from the employer.

If the SBO is a Singapore Dependant’s Pass holder, the SBO will need to obtain a Letter of Consent (“LOC”) from the Ministry of Manpower of Singapore to operate the business in Singapore through an ACRA-registered business such as a sole proprietorship.

Singapore work pass holders (such as Singapore Employment Pass, S Pass or Work Permit holders) do not have the flexibility to be an SBO as they must only work for their designated employer and cannot concurrently start a side business or engage in other activities to earn additional income in Singapore.

Carrying on business under the full name

An SBO who is a Local Resident carrying on business in Singapore is exempted from registering with ACRA if the business is carried on under only the SBO’s full name as stated in his or her Singapore National Registration Identity Card (NRIC).

For example, if the SBO’s full name is “Jane J. Doe” under her NRIC, she can only enter into business contracts and have business marketing collaterals under the name “Jane J. Doe” and not any variation thereof (such as “Jane Doe”, “Goods by Jane J. Doe” or “Jane J. Doe Services”).

As the SBO will be using his or her own personal name, the SBO will be personally liable for all debts and losses incurred by the business. The SBO should consider whether he or she is willing to accept this risk in light of the potential liability which may flow from the business activities.

Carrying on business under sole proprietorship

If an SBO who is a Local Resident prefers to use a business name that is different from the SBO’s full name as stated in his or her NRIC (whether for branding purposes or otherwise) or if the SBO is not a Local Resident (such as a Singapore Dependant’s Pass holder), the SBO can consider setting up a sole proprietorship.

A sole proprietorship is a business with one owner (in this case, the SBO) which must be registered with ACRA. Such registration will be for one year or three years, renewable for either of these periods. The sole proprietorship will need to maintain a registered address with ACRA which can be the SBO’s home address under HDB’s or URA’s Home-Based Business Scheme or Home Office Scheme referred to above.

While registration with ACRA will result in the registered details of the sole proprietorship being accessible to members of the public (like in the case of a company), such transparency may serve to give the SBO’s business added legitimacy to facilitate transactions with customers.

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

Registration with ACRA may also be necessary for government-related applications available to ACRA-registered businesses only (such as applications for relevant business licences, LOCs and Singapore work passes).

As the sole proprietorship is not a separate legal entity from the SBO, the SBO will be personally liable for all debts and losses incurred by the sole proprietorship, as if the SBO was operating under his or her own personal name notwithstanding that the sole proprietorship goes by a different name. This drawback is usually an impetus for setting up a company which is a separate legal entity that can afford the SBO the protection of limited liability for the business.

As a sole proprietorship cannot be converted into a company, the SBO would need to first set up a company and then transfer the business of the sole proprietorship to the company before closing the sole proprietorship. In light of this, the SBO who is in the business for the long game may prefer to start the business through a company from the outset to avoid the hassle of dealing with an internal transfer of the business at a later stage.

Hiring staff for the business

An SBO who is a Local Resident carrying on business under the SBO’s full name as stated in his or her NRIC can hire only Local Residents as employees in Singapore, whereas an SBO carrying on business under a sole proprietorship can hire both Local Residents and foreigners as employees in Singapore, as only ACRA-registered businesses can apply for Singapore work passes for foreigners to work in Singapore.

This should be taken into account when hiring under HDB’s or URA’s Home Office Scheme referred to above.

For employees who are Local Residents earning a total salary of more than SG$50 per month, the SBO will need to pay employer contributions under the Central Provident Fund (CPF) Act 1953 of Singapore. Similarly, such employees will need to pay employee CPF contributions unless their total salary earned is not more than SG$500 per month.

Paying business income tax

IRAS declaration

If the SBO is carrying on business under his or her full name or a sole proprietorship and,

• the net trade income of the business (i.e. gross receipts minus all allowable business expenses, capital allowances and trade losses) (NTI) is more than SG$6,000 per year, or,
• The SBO’s total income including from the NTI and other sources of income (such as any salary earned by the SBO as an employee outside the business) is more than SG$22,000,

the SBO as a self-employed person must declare the NTI for each accounting period chosen by the SBO (typically a 12-month period ending every 31 December) to the Inland Revenue Authority of Singapore (IRAS) as part of the SBO’s personal income.

Tax rate

The NTI will be taxed at individual income tax rates, and not the corporate income tax rate of 17 per cent. If the SBO is a Singapore tax resident, the individual income tax rates will range between 0 per cent and 24 per cent for the year of assessment 2024 onwards, depending on the amount of personal income earned.

In deciding between carrying on business as a self-employed person or through a company, the SBO should work out whether the applicable individual income tax rates or the corporate income tax rate would be more favourable to the SBO based on the projected income of the business, taking into account any tax reliefs and exemptions applicable to personal or corporate income.

Record keeping

The SBO should keep full and accurate records and accounts of all business transactions so that the NTI can be readily determined in the event that IRAS requests supporting documents for verification, as well as to avoid errors in tax returns for which IRAS may impose penalties. Such supporting documents may include original invoices, receipts, vouchers, and logs of business engagements undertaken and business expenses incurred.

Also Read: How SeedLegals plans to win SEA market by helping founders sort out their legal documents

The SBO should also prepare a statement of accounts for the business (comprising the profit and loss accounts and balance sheet) for each accounting year, which must be submitted to IRAS if the business revenue is SG$500,000 or more.

MediSave CPF contributions

If the SBO is a Local Resident with an NTI of more than SG$6,000 per year, the SBO must pay mandatory MediSave CPF contributions as a self-employed person, notwithstanding that the SBO may also be paying employee CPF contributions as an employee outside the business. Such mandatory MediSave CPF contributions will generally be a percentage of the annual NTI, subject to a cap ranging from SG$5,760 to SG$7,560 depending on the SBO’s age.

The SBO may also make voluntary MediSave CPF contributions as a self-employed person in order to claim tax relief to lower the individual income tax payable by the SBO.

Partnerships

As the business expands, the SBO may consider partnering up with other individuals to operate the business. In such a case, it is worth noting that the SBO and his or her partners will similarly be exempted from registering with ACRA if all of them are Local Residents and the business is carried on under only their full names as stated in their NRICs.

Otherwise, they could consider registering a general partnership with ACRA which is a business owned by at least 2 partners, up to 20 partners. Like a sole proprietorship, while there are benefits that come with ACRA registration (such as added legitimacy and the ability to make government-related applications), a general partnership is not a separate legal entity from its partners and each partner will be personally liable for all debts and losses incurred by the business and will have to pay personal income tax on the NTI of the business.

That said, there are other partnership structures available for registration with ACRA, such as a limited partnership and a limited liability partnership, which may also be suitable as an alternative to setting up a company in Singapore, depending on the business arrangement of the partners.

–

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 Going solo: Legal considerations for starting a small business in Singapore appeared first on e27.

The goals of PR can vary depending on the specific needs and objectives of a business, but mainly include enhancing brand awareness, promoting a positive image, managing public perception and can help gain exposure to a wider audience in reputable media outlets and reaching a larger audience, potentially leading to increased website traffic and sales.

Compared to traditional advertising and marketing methods, PR can often be more cost-effective for small businesses and startups with limited budgets. PR efforts such as press releases and media pitches can generate publicity and increase brand visibility without the need for significant advertising spend.

It also helps builds credibility and trust with potential customers, investors, and partners. When a small business or startup receives positive media coverage, it can enhance its reputation and legitimacy in the eyes of the public, which can result in increased trust and confidence in the brand.

It’s also a great way for businesses to use storytelling, share their vision, and differentiate themselves from their competitors. By crafting compelling narratives and messages, PR can help startups stand out in a crowded market and connect with their target audience. PR is a long-term strategy though, you have to be patient and in it for the long game – consistency is key to fostering brand loyalty among customers and stakeholders.

If you want to become a superstar brand or household name, PR can be that magic you need to get you there.  Here are a few insider tips and a little secret sauce so you know what you need to do to get in the media:

Know your audience and research!

Before pitching to the media, it’s essential to understand who your target audience is and what they are reading. You then need to research and understand a publication’s target audience, so you can tailor your pitch to their needs and interests.

Craft a compelling story

Journalists are always looking for ‘stories’, so make sure your pitch is interesting, unique, and timely. What is your why story, your key messaging, and then focus on the “hook” or angle that will grab their attention?

Create a press kit

A press kit should include a company overview, product descriptions, logos, images, relevant press releases, fact sheets and other information that journalists can use to write about your business. Make it easy for them to write about your company.

Customise your pitch

Every journalist and publication is different, so it’s crucial to tailor your pitch to each individual outlet – avoid the spray-and-pray approach – i.e. sending a generic pitch to a large list of contacts is not going to get you anywhere. Point out which columns and sections you are pitching to and why it could be interesting for their readership.

Use data and statistics

Including data and statistics in your pitch can add credibility to your story and make it more newsworthy, a relevant and keeps it in context with what’s happening in today’s world. Keep a store of the latest facts to hand and ready to share for last-minute features and interviews.

Also Read: How Google is nurturing the next wave of startup founders to solve pressing challenges

Eat news for breakfast

Make sure you understand what your target media are writing about, and what’s happening in the economy and world, especially with regards to your industry and brand, so you can make your pitch even more relevant.

Keep it short and sweet

Journalists receive hundreds of pitches every day, so it’s essential to keep your pitch brief and to the point. Highlight the most important information in the first few sentences, and use bullet points and subheaders so it’s easy to read and understand.

Build relationships

Developing relationships with journalists is the name of the (PR) game to establish trust and credibility. Take the time to get to know the journalist before pitching them and follow up after the pitch. Looking at their social accounts, such as Linkedin, is a good place to start to understand what their interests are and past articles.

Be ready to respond

If a journalist expresses interest in your story, be available to answer their questions and provide additional information. Nine times out of ten, they are on deadlines, so have your press kit ready to go at a moment’s notice. Be a dream to work with, and they’ll start coming to you!

Follow up, but don’t be a pest

Do follow up on a pitch if you don’t hear back from the journalist, but don’t be too pushy. Try to get feedback on if your pitch is relevant but respect their time and space. Above all, don’t give up if your first-ever pitch isn’t successful — be in it for the long game.

–

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 Why PR can be effective for startups and how to do it appeared first on e27.

The COVID-19 pandemic and the vulnerability in the market have had a profound effect on the co-working space industry in Asia. The role and definition of co-working space have now changed.

“The places where we used to sit behind a computer at our desks most of the time have become a modern agora where people gather to learn from and collaborate with one another,” says Jaelle Ang, Co-Founder and CEO of The Great Room, a Singapore-based hospitality-led coworking space.

How does the industry cope with the fast-changing environments? How has the industry grown post-pandemic?

In this interview, Ang answers these questions and discusses the trends and changes in the co-working space sector.

Edited excerpts:

How has the demand for co-working spaces changed since the start of the pandemic? Have you seen an increase or decrease in occupancy levels? Has the demand gone up after the dangers of COVID-19 are gone?

As a whole, the demand for flexible workspaces, and by extension co-working spaces, has increased. The geopolitical uncertainty that the world faces today had a ripple effect on the many considerations of businesses, such as geography, headcount, and growth. This state of flux requires the support of real estate partners in terms of flexibility to accommodate these changes.

Pre-pandemic, the flexible workspace was projected to grow from 5 per cent to 30 per cent by 2030, and we’ve seen this trend pick up more than ever. We’ve seen an immense growth of demand from the enterprise segment of customers; businesses that are sophisticated and drive high margins.

Also Read: Singapore gets an NFT-gated Web3 co-working space Metacamp

One such example is our newest location, The Great Room, South Bridge. Slated to open on April 20, it currently has a pre-opening occupancy rate of 80 per cent, the highest opening occupancy within our portfolio.

What changes have you made to your co-working space design to adapt to the new normal? Have you implemented any health and safety measures for your members?

We’ve designed a space where people can come together to collaborate and learn. The role of the office has changed. The places where we used to sit behind a computer at our desks most of the time have become a modern agora where people gather to learn from and collaborate with one another.

The ultimate role of the office is to help companies win the ‘war for talent’, and the edge for any company is the ability for their talent to learn quickly. Instead of isolating individuals to the confines of their desks, we’ve created a culture container, a learning place that enables and encourages meaningful interactions.

In terms of health and safety, The Great Room puts an emphasis on cleanliness and hygiene within its spaces, with strict cleaning protocols such as increased cleaning frequency at high touch points throughout our coworking spaces, as well as a variety of wellness and health programmes for members who have become more conscious as a result of the global pandemic.

How is the current economic climate affecting the industry?

We are cautiously optimistic. On one hand, the outlook for co-working spaces is positive as a result of business uncertainty. However, we are well aware of macro trends such as high rates of inflation and increasingly volatile markets.

Industries that used to be seen as very safe such as large banks and tech companies have found themselves in rather vulnerable situations. This has had profound effects on our industry. There may be new opportunities presented, but there could also be many shifts and changes that we will have to accommodate as well.

Have you noticed any specific trends in the co-working space, particularly in Singapore?

Singapore is a market that is familiar with co-working. If companies want flexible workspaces, they will have varying needs and price points, and we expect to see the market become increasingly segmented to the point of fragmentation. This is when we can also expect to see a consolidation of the existing players.

Since the pandemic restrictions were put in place in 2020, The Great Room has seen a significant shift in its audience segment over the last three years. Before the pandemic, occupancy rates were split between SMEs and MNCs & enterprises at 75 per cent and 25 per cent, respectively.

Currently, in the post-pandemic era, SMEs now make up 35 per cent of the members while MNCs & enterprises make up a majority of the members at 65 per cent post-COVID-19.

With many companies now adopting a hybrid work strategy, how do you see this impacting the co-working industry in the future?

The co-working industry needs to rethink its role. Beyond providing just seats in front of computers, they need to provide activity-based working and meeting spaces, as well as spaces for training, collaboration and learning. We need to help our clients win the war for talent, whether it is through initiatives such as wellness programmes, helping talents learn beyond their immediate fields, or building their social capital and simply connecting with people.

We’ve seen an accelerated adoption of flexible work arrangements, as well as a demand for versatile workspaces during the pandemic. With our sixth and newest location, we’ve doubled down on offering dynamic spaces, efficient services and community-building events to offer a variety of options that meet the varied and ever-changing needs of our members.

In what ways has your approach to marketing and promoting your co-working space changed since the pandemic started?

In our early days, our efforts were geared towards brand building and telling the story of The Great Room. Now that we’ve expanded to ten locations, we are focusing on telling the stories of our members, communities, and the location of our workspaces.

How is the current economic crisis impacting the co-working space in SEA?

Asia has been lucky coming out of the pandemic. Rates of consumption, services, and the return of the workforce to the office have been high. However, people’s belts will continue to tighten, and they will become wiser about spending.

Co-working spaces are ultimately a business expense, and people will have expectations for them to provide more bang for their buck, whether it is in the form of services, hospitality, or learning.

Also Read: From co-working to co-living, these 8 brands in Southeast Asia have got you covered

The current economic crisis has resulted in an increased demand for flexible workspaces with the adoption of remote work arrangements. The high degree of flexibility and cost-prohibitive nature of co-working spaces can benefit companies weathering times of economic crises as they pose less of a liability.

For The Great Room, our multi-faceted range of workspace solutions is our greatest asset to our customers, whether it is a company looking to downsize their office space, or a small business owner looking for an arrangement suited to their needs.

—

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 The co-working industry needs to rethink its role: The Great Room CEO Jaelle Ang appeared first on e27.

Singapore-based early-stage VC firm Monk’s Hill Ventures has made the final close of its third fund at US$200 million.

The firm was originally seeking to raise US$150 million for this fund, according to SEC filings.

The names of the Limited Partners haven’t been disclosed. As per a statement, they are predominantly institutional investors including foundations and endowments, sovereign funds and several prominent family offices.

Singapore’s sovereign fund Temasek was an investor in its previous two funds.

“We are still focused on building tech-enabled regional champions in Southeast Asia by taking a first-principles approach to building a concentrated portfolio of Series A startups,” said Kuo-Yi Lim, Co-Founder and Managing Partner at Monk’s Hill Ventures.

Also Read: Be open about ways to grow and expand your skills: Cheryl Liew of Monk’s Hill Ventures

Fund III has already invested in several companies, including Rainforest and Upmesh (e-commerce); Hannah Life, Ordinary Folk, and Novi Health (digital health); Credibook, Starboard, and MinOS (business digitalisation); Tigerhall and Lumina (HR tech); Crowde (agritech).

The development comes at a time when startup investments are seeing a downward trend in the region. According to Tracxn, investments dropped 69 per cent to US$1.1 billion in Q1 2023 from US$3.5 billion in the same period last year. This is attributed to a steep decline in late-stage funding to US$415 million in Q1, which is 68 per cent and 73 per cent lower than the amounts raised in Q4 2022 and Q1 2022, respectively.

Seed-stage investments in Q1 also fell 27 per cent and 73 per cent when compared with Q4 of 2022 and Q1 of 2022, respectively. Early-stage funding also dropped 69 per cent; however, it saw a slight increase of 11 per cent over Q4 2022.

Founded in 2014 by Peng T. Ong and Kuo-Yi Lim, Monk’s Hill Ventures invests in early-stage tech companies, primarily pre-Series A and Series A, in Southeast Asia. The firm has invested in more than 35 startups spanning multiple business models and industry verticals. Its footprint spans Southeast Asia with on-the-ground teams in Singapore, Indonesia, Malaysia, Vietnam, and Thailand.

—

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 Monkʼs Hill Ventures hits final close of Fund III at US$200M appeared first on e27.

In March, Vietnam was named as one of the three Southeast Asian countries that continued to dominate the region’s equity funding landscape in a report by DealStreetAsia and Enterprise SG.

The rest of us might wonder: How does the country manage to do this? What are the factors that keep Vietnam attractive in this challenging time? What lessons can we learn from it?

In an interview with e27, Hieu Vo Tran Dinh–Deputy Director at Dragon Capital, CFO at Vietnam Innovative Startups Accelerator (VIISA), and Founder of the Vietnam Fintech Club–gives us his insight into what makes Vietnam a favourable destination for investors.

According to him, there are two factors: Attractive valuation and speedy recovery from the COVID-19 pandemic.

“Valuation of Vietnamese startups is often a bargain in absolute terms and it has strong metrics in relative terms. For instance, we have successfully applied a very consistent discipline in terms of valuation for startups that joined our acceleration stage. Those companies had to set valuations in the range from US$300,000 to US$1 million, and this entry level has helped both startups and investors,” Hieu says.

“For startups, this has helped in maintaining a healthy shareholder structure and a realistic approach to planning their fundraising. For investors, it’s easier to negotiate with them as it’s usually only need to look at operating metrics that support their investment taxes rather than hustling around valuation multiple. The outcome of this is that we see Series A round valuation from US$5 million to US$10 million in Vietnam, which is a bargain relative to other markets.”

Also Read: Society Pass unit NusaTrip acquires Vietnamese travel marketplace VLeisure

Regarding its speedy recovery from the pandemic, it is reflected in Vietnam’s growth rate.

“Prior to the pandemic, Vietnam’s economy has maintained a consistent GDP growth from a range of five per cent to seven per cent for over a decade. The growth rate has quickly recovered to 2.9 per cent last year which was a stunning sight for any economic observer. Vietnam’s economy has shown impressive resilience during the COVID-19 pandemic, evidenced by its positive GDP growth and rising export figures,” Hieu explains.

“This has created a favourable investment landscape, with a surge in entrepreneurial activity and increasing interest from investors.”

Hieu also adds that the government’s efforts to promote innovation and entrepreneurship, such as the National Innovation Center and incentives for high-tech startups, make Vietnam an attractive destination for investment.

“As an investment manager, I see great potential in Vietnam’s growing ecosystem of startups and its position as a key player in the global innovation economy,” he says.

The lessons we learned

So, what are the lessons that other countries can learn from Vietnam in building its startup ecosystem? According to Hieu, there are three main lessons that other startup ecosystems can learn from Vietnam.

The first two lessons are the government’s active role in creating a favourable business environment and having a disciplined approach to valuations, which have already been discussed in the previous paragraphs. The third lesson is local companies’ strong focus on solving local problems and meeting the needs of the domestic market, which has allowed them to grow and scale quickly.

Also Read: Vietnamese music games publisher Amanotes invests in Swedish startup Reactional Music

“Finally, Vietnam’s startup ecosystem has a strong sense of community, with founders and investors often collaborating and sharing resources to support each other’s success. I would suggest the Swiss EP programme as a raw model example for this ecosystem connector. These lessons highlight the importance of government support, a focus on solving local problems, disciplined valuations, and a supportive community in building a successful startup ecosystem,” Hieu says.

According to him, in this challenging time, local startups have also learned to adapt by changing their approach to running a business.

Previously, companies can raise funds by relying on factors such as growth, new users, and transaction volumes. But today, startups in Vietnam have switched to “more practical metrics” such as revenue and cash flow.

“Everyone would ask the question, ‘If you raise this round and then you cannot raise the next round, what will happen?’ So, I think it’s getting really realistic … the financial model must make sense in terms of runway movements and in terms of cash flow, that support all the scenarios that may happen. The base scenario should be a positive cash flow and self sustained; the best case scenario with the high growth is a market share dominance.”

Fintech remains key to Vietnam

Dragon Capital is a fund management firm that has been active in the Vietnam startup ecosystem. A fund management firm, it caters for a wide range of activities from public fund management to wealth management for family office sovereign funds in Europe, Japan, and the US. Hieu describes the firm’s involvement in venture capital as opportunistic and a principal investment mandate.

In Vietnam, Dragon Capital sees the fintech sector and related services as one of the most promising verticals, followed by SaaS for SMEs.

“Vietnam has around 300,000 SMEs up and running. They are open to new ideas, willing to accept new sort of services and business, as long as it makes sense,” Hieu says.

—

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: Tron Le on Unsplash

The post Attractive valuation, quick COVID-19 recovery keep Vietnam attractive for investors: Dragon Capital’s Hieu Vo Tran Dinh appeared first on e27.

Building a hyper-growth company is a challenging task that requires flexibility, constant questioning, and pivoting, as well as a large amount of confidence, capital, and energy. To assess the quality and health of such businesses quickly, the five-point health check for hyper-growth businesses is an efficient and proven tool.

It consists of five checks based on many decades of professional experience: a clear and understood vision and strategy; a focus on creating future value; a long-term asset focus; the establishment of a mega-culture; and an assessment of the true level of investor support.

Like regular health checks for athletes or mature people, business leaders and coaches can use the tests to check on a fast-growing business without slowing its growth down.

Check #1: A clear and understood vision and strategy

Tell me “who we are,”, “what we stand for,”, “how we differ from the competition,” and what makes us unique.” or how to assess the existence of a clear vision and company strategy.

A clear vision and strategy are essential for building a high-growth company. They provide direction, align everyone towards a common goal, prioritise activities, identify potential roadblocks, and create a focused and disciplined approach to business.

A well-defined and understood strategy aids in the effective allocation of resources and the development of contingency plans to overcome challenges, whereas a clear vision motivates employees and attracts investors. A clear vision and strategy, when combined, lay the groundwork for long-term success.

The Check

Ask a few random employees, managers, or the CEO to describe the company’s core values, the problem it addresses, its competitors or equivalent businesses, and why our business is superior. If the results are inconsistent, the design process needs to restart.

Check #2: Future value creation

How does the future look? “Or how do you assess a company’s ability to create value in the future?” High-growth companies must have a clear future focus in order to achieve long-term sustainability. Most businesses have a complex set of these data points, but they arrive too late and only reflect the past.

Forward-looking reports, such as total revenue for the period ahead signed up, upcoming customer signups or cancellations and the impact on financials and cash forecasts, are missing. The best analogy is being in a race car; the race car represents a fast-paced company.

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

A driver in such a race car requires a large windscreen (forward-looking information) to see what is ahead. If a driver only uses the rear mirror (financial reporting packages), obstacles are only discovered after the fact, which is too late. With vital, timely information, high-growth companies can build strong teams that can execute the company’s strategy and drive growth.

High-growth companies can continue to create value and drive growth in the long run by staying ahead of the curve and adapting to changing market conditions.

The Check

Examine and extend the daily, weekly, and monthly reporting packs and board reports for future-oriented financial and operational information.

Check #3: Long-term asset focus

“Do we have a long-term asset focus, or are we just chasing revenue or share price fluctuations?” or “Are we concentrating on assets and their protection and growth as a business?”

CEOs who only look at the share price and base all of their decisions on short-term share price movements are setting the business up for failure. The share price is determined by business results and the market’s belief in future success. Financial results are the result of a company’s investment in assets and moats, which ensure future financial success and drive share price growth.

A large and growing customer base, recurring revenues, a strong brand, a clear value proposition, a competitive technology platform, a world-class team, and other assets all contribute to future results.

The Check

Examine the daily, weekly, and monthly reporting packs, as well as board reports. Is the emphasis solely on delivering financial results against budgets or also on constructing assets and moats to protect the assets? Is the incentive structure geared towards asset creation or short-term financial results?

Check #4: Mega-culture

“Do we have a true mega-culture that fuels and protects our growth?” or “How do we fare in a BBQ or hotpot test?”

Creating a mega-culture is critical for building a successful and sustainable business. A mega-culture is a culture that is deeply embedded in a company’s values, beliefs, and behaviours and permeates all aspects of the organisation.

It necessitates a clear and understood company vision and direction that cascades down into individual focus and reward systems, the presence of a high-performance team (not a work group, but a team), leaders who serve rather than managers, clear company values, and company confidence. This type of culture inspires and motivates employees, fostering creativity and innovation and driving long-term success.

The Check

Pay attention to what employees and leaders say at company events, such as a company barbecue. Pay attention to how they describe their company, their peers, and their leadership in social settings outside of work, such as a barbecue dinner. Only in such circumstances are people truly candid about their feelings. If, after hearing the speech, you feel compelled to join, the company has passed the BBQ or hotpot test.

Employees who are excited to bring their loved ones to the event and discuss their work reflect the company’s strong and positive culture. If, on the other hand, employees are hesitant or dissatisfied with their jobs, it may be a sign that the company’s culture needs to be improved.

Check #5: Solid investor support

“Does the company have complete investor support?” or “What story does the share price or the investors tell?”

Also Read: Why Japan’s tech leaders are eyeing Thailand as a 2023 growth market

Investor support is critical for high-growth businesses. Investors can help you achieve your goals by providing capital, expertise, and industry connections. It is critical, however, to select investors who share your values and future vision. Investors who share your mission and values are more likely to support your long-term, sustainable growth.

A long-term, depressed share price indicates that there is an underlying issue. While managing the share price should not be the primary focus of a company’s leadership, strong asset creation and investor relations should result in an appreciation among investors or, where applicable, the capital market.

Investors dislike shifting sand and changing stories, so consistency is critical. Investor confidence requires evidence that the strategy works as well as clear progress reports with well-defined metrics.

The Check

Check the share price of publicly traded companies to see why it has reacted to certain news in the way that it has. Speak to key shareholders and try to understand how they see the business for all companies, listed or not. Have they grasped the direction and value creation? Is the investor relations messaging consistent, or are we changing direction, and message, on a regular basis?

Final thoughts

In summary, the five-point health check for hyper-growth businesses is an efficient and proven tool that can help business leaders and coaches assess the quality and health of a fast-growing company quickly. By using this tool, leaders can ensure that their business is on the right track towards long-term success.

Note: “Hypergrowth” means annual revenue growth of 40 per cent or more.

–

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 Scaling up? Here’s the 5-point health check for hyper-growth businesses appeared first on e27.

In Southeast Asia, the first half of April saw several equity investors joining investment deals across sectors. As expected, most of the companies that raised funding in the period have been seed-stage and early-stage startups.

We have compiled a list of the 13 Connect investors (those who have been verified by e27 and agreed to receive connection requests from startups) that have invested in Southeast Asian tech startups from April 1 to 15, 2023.

AppWorks

Based in Taiwan, AppWorks is a startup community and VC firm built by founders for founders. As a VC, AppWorks manages three VC funds, typically investing in seed to Series C companies. It funds 20 deals a year.

Its portfolio firms include Lalamove, Dapper Labs/Flow, Animoca Brands, 91APP, Figment, Carousell, ShopBack, Tiki, 17LIVE, and KKday.

It invested in Indonesian property rental startup Travelio last week.

SC Ventures

SC Ventures is a business unit in Standard Chartered to enable innovation, invest in disruptive financial technology and explore alternative business models. It primarily invests in fintech companies that enable forward-thinking capabilities and manages Standard Chartered’s minority stakes in its fintech partners. Its other focus verticals are AI, blockchain, finance, insurtech, and mobile.

Also Read: The week that was: A snapshot of the top news stories published in April 2nd week

Last week, it invested in Singapore-based fintech startup BetterTradeOff.

Wavemaker Partners

Wavemaker takes a portfolio-building approach to early-stage (seed to Series A) investing. It usually starts with a US$100,000 to US$200,000 cheque and follows on until US$1 million. It has 15 member funds across four continents.

Wavemaker Group is a multi-faceted cross-border venture capital firm founded in 2003. The firm is dual headquartered in Los Angeles and Singapore and has raised over US$580M across multiple funds. In Southeast Asia, Wavemaker focuses on enterprise and deep technology companies.

Its Singapore-based investments include Luxola (acquired by LVMH), ArtofClick (acquired by Xurpas), and Pie (acquired by Google).

The VC firm backed TablePointer, an energy-efficiency-as-a-service (EEaaS) startup in Singapore, last week.

Global Founders Capital

GFC is a stage-agnostic investor. It invests in seed and Series A, or participates in later rounds. Its focus verticals are agritech, AI, AR, VR, Big Data, consumer, e-commerce, education, finance, gaming, ICT, logistics/supply chain, mobile, productivity & CRM, real estate, SaaS, sports, and travel.

GFC co-invested in Indonesian tech-enabled fitness startup Fit Hub last week.

East Ventures

East Ventures is a seed to early-stage venture capital firm based in Singapore, Indonesia, and Tokyo. Founded in 2010 by the co-founder of Mixi.jp and other prominent investors/entrepreneurs in Asia, it has invested in over 150 companies, ranging from internet startups to commerce, social, game, and mobile services.

It invested in Legit Group and Fit Hub last week.

Trihill Capital

Trihill Capital is an innovation-focused fund investing in seed-to-growth industry disruptors in Southeast Asia and public equities globally. It targets solution-oriented companies and transformative founders across sectors and stages.  Its investment strategy combines bottom-up and top-down approaches, combining fundamental research with technical and macro overlays.

Trihill Capital is affiliated with one of the leading agriculture companies in the region and is based in Singapore with a satellite office in Jakarta.

It participated in Fit Hub’s raise last week.

AgFunder

Based in Silicon Valley, AgFunder is a new kind of VC firm built on proprietary technology and a global ecosystem of over 85,000 subscribers. It invests in exceptional and bold founders building the next generation of agrifood technology companies that will transform our food system.

It joined a funding round of TablePointer last week.

ENGIE New Ventures

ENGIE New Ventures was founded in 2014 as the corporate venture capital fund of global energy provider ENGIE. Its €180 (US$197) million fund is dedicated to making minority investments in technology startups that complement existing activities and resources to spur internal innovation within ENGIE.

MDI Ventures

MDI is a corporate venture capital initiative by Telkom Indonesia which is based in Jakarta with operations in Singapore and Silicon Valley. MDI combines a VC model with services in providing companies from Telkom Group with access to operational assistance and help in building startups’ growth engines after making a financial investment.

Also Read: The week that was: A sneak-peek into the top news stories published in April first week

The focus verticals are digital ads, payment solutions, and cloud computing, Big Data, media services, digital life, mobile apps, e-commerce, and IoT. It works closely with global accelerators and venture firms to bring proprietary technologies from other mature markets into various businesses of Telkom Indonesia.

It joined the round of TablePointer last week.

Winter Capital

Winter Capital is a global growth equity firm founded in 2015 by Goldman Sachs EM senior alumni. With US$1.4 billion under management across three funds, Winter Capital focuses on growth equity investments in consumer industries going through technology-enabled change. The funds invest globally in fast-growing tech companies in four select verticals: financial, healthcare, education, and consumer services.

It co-invested in a financing round of Legit Group last week.

ORZON Ventures

ORZON Ventures, powered by OR (#1 Oil and Retail company in Thailand) and 500 TukTuks, invests in promising Series A-B startups in Thailand and Southeast Asia under the theme of mobility, lifestyle, smart retail, health & wellness, and tourism. Startups in ORZON portfolio can accelerate their growth via OR ecosystem and at the same time, gain access to 500 Global’s network and expertise. In other words, the fund will invest in startups that meet the needs of future mobility solutions or those that respond to the new changing needs of the modern lifestyle, such as F&B startups, travel, health, wellness, and other digital lifestyle solutions.

It is an investor in Travelio’s latest round.

Leet Capital

Leet Capital is an equity crowdfunding platform that helps bridge high-potential companies to passionate investors. It also runs Leet Academy which focuses on providing startups access to knowledge of starting, running, and scaling a business in the digital age. It leverages both 1337 Ventures and Leet Academy to provide advisory and growth capital solutions to high-growth startups and SMEs via ECF and other relevant capital sources and channels through its MOOC programmes or monthly events.

It invested in Qmed’s round in the first week of April.

SBI Ven Capital

Founded in 2007 and based in Singapore, SBI Ven Capital is a private equity firm that invests in financial services and technology sectors across Asia. It works with financial services and technology companies that are looking to raise equity or equity-linked financing; have market-leading products, processes and/or technology; and backed by a strong team with whom SBI Ven Capital can partner.

As of December 31, 2021, SBI Ven Capital is managing US$549M.

It invested in Fresh Factor’s round in April’s first week.

—

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.

Copyright: dekdoyjaidee

The post Meet the e27 Connect investors that invested in SEA in April first half appeared first on e27.

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: Philippines.

We’ll see you at WeWork Menarco Tower, BGC Taguig City on Tuesday, 18 April. What to expect, you might ask?

The e27 MeetUp in the Philippines features a panel discussion with the topic “Southeast Growth Series: How can the Philippines’ tech ecosystem grow sustainably and where are future growth drivers”, with speakers Katrina Chan, Executive Director at IdeaSpace and QBO; Kristine Ongcangco, Founder and CEO of Parlon; Franco Varona, Managing Partner at Foxmont Capital Partners; and Mohan Belani, CEO and Co-Founder of e27; with moderator Christine Galolo, General Manager of e27.

Also read: Meet the e27 Connect investors that invested in SEA in April first half

This event is an excellent opportunity to connect with the local tech startup community at Manila, 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.

The post Why you should battle the traffic and Meetup with us in Manila appeared first on e27.

BetterPlace, SaaS-based frontline workforce management platform in India, has announced the acquisition of Malaysia-based Troopers, a provider of on-demand, pre-screened, part-time frontline workers to enterprises.

The transaction details remain undisclosed.

The deal will allow BetterPlace to accelerate its presence and establish a stronger foothold in Southeast Asia. It will integrate Troopers’s automated gig matching and rostering features into BetterPlace’s SaaS platform.

Founded in 2017 by Joshua Tan and Kelvin Lee, Troopers is a digital HR tech platform for flexible work. It works with a range of brands across Malaysia to meet the needs in terms of on-ground activations, offline marketing, merchandising, in-store promotion, logistics, warehousing, concerts and shared services.

Also Read: Meet the e27 Connect investors that invested in SEA in April first half

Since its app launch in 2021, Troopers claims it has garnered over 180,000 verified users.

It claims to have helped over 50,000 gig workers in Malaysia find employment since its inception.

BetterPlace has developed an AI-powered platform that provides matchmaking capabilities for companies seeking skilled candidates for gig and full-time positions.

In addition to hiring and applicant-tracking software solutions, the company also offers remote onboarding, rostering, and digital upskilling capabilities for enterprises.

The latest deal follows BetterPlace’s recent expansion in the region by acquiring Indonesia’s blue-collar workforce fulfilment platform MyRobin.

—

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 BetterPlace acquires Malaysian on-demand frontline workers firm Troopers appeared first on e27.

Singapore-based healthtech startup Mito Health has secured S$1.7 million (US$1.3 million) in seed funding.

Forge Ventures led the round, with participation from angels, including the founders and executives of ShopBack, Carousell, PatSnap, Glints, SingLife, Rainforest, ErgoTune and OhMyHome.

Mito Health was co-founded by Tee-Ming Chew, Kenneth Lou, Joel Kek, and Dr Ryan Ware. Chew and Kenneth previously co-founded and exited Seedly, while Joel Kek earlier led engineering teams at TraceTogether at GovTech. Ware is a former surgeon.

Also Read: How big data in healthcare influences better patient outcomes

The startup augments medical expertise with AI to create personalised health plans for customers based on their diagnostic results and wearable data. It guides users through rigorous optimisation cycles throughout their member experience using digital coaching in the areas of diet, exercise, supplements, and sleep.

Mito aims to serve the health-conscious demographic and individuals looking for strategies to maintain their health beyond annual checkups and supplements. The initial focus is Singapore, with plans to expand regionally into other developed markets.

CTO Joel Kek said: “Imagine having an always-accessible medical team that understands you well, helping you to improve health and performance. This currently exists for athletes and the ultrawealthy. Mito Health makes this accessible by combining deep medical expertise with advanced AI models.”

Also Read: Meet the e27 Connect investors that invested in SEA in April first half

“Personalised, preventative strategies are key to extending lifespan while preserving the physical and cognitive quality of life, and AI will pave the way to the widespread accessibility of bespoke care,” added Chief Medical Officer Ryan.

—

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 Forge Ventures leads US$1.3M pre-seed round of Mito Health appeared first on e27.