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Google, Temasek and Bain & Company: Despite growth, SEA needs to expand the depth of digital participation

Attendees at the recent SWiTCH 2023 event at Marina Bay Sands, Singapore

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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How the blockchain could change the way the government works

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.

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

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Talino Venture Studios lands US$5M to bridge financial inclusion in emerging markets

Talino Venture Studios CEO Winston Damarillo

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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Malaysia’s Vircle raises funding to help parents raise money-smart kids

(L-R) KMP’s  Yarham Yunus, Vircle Founder Gokula Krishnan, and Gobi Co-founder Thomas G. Tsao

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 narrows let loss by 65% in Q3, shelves international IPO plans

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.

Fundraising or preparing your startup for fundraising? Build your investor network, search from 400+ SEA investors on e27, and get connected or get insights regarding fundraising. Try e27 Pro for free today.

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For startups, embracing ESG focus is a sure-fire way to secure corporate success

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.

Image Credit: RunwayML

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Harness the power of Generative AI in marketing with the Inmagine CEO

Flux

Flux Series: Marketing Leaders is happening at the St. Regis in Jakarta, Indonesia, on 15 November 2023. Are you working in the field of marketing? Don’t miss out on this focused and curated event designed especially for marketing professionals!

Visit Flux Series: Marketing Leaders for more information! Read on to get discounted tickets.

In an era dominated by visual content, the ability to create compelling and engaging visuals is paramount for businesses and content creators. Whether it’s for marketing campaigns, social media posts, websites, or presentations, high-quality visuals play a crucial role in capturing the attention of the audience. With the rapid advancements in artificial intelligence, particularly in the field of Generative AI, the process of creating visual content has changed dramatically.

Generative AI refers to a class of artificial intelligence algorithms that generate new, original content based on patterns and examples in existing data. It has proven to be a game-changer in various industries, including visual content creation. But why is harnessing Generative AI for automated visual content creation a matter of paramount importance?

Advantages of Generative AI

One of the most significant advantages of using Generative AI for visual content creation is the efficiency it brings to the process. Traditionally, designing visuals could be a time-consuming and resource-intensive task, often requiring specialised skills and software. With Generative AI, much of this process can be automated. This allows designers and content creators to allocate their time and resources to more strategic and creative tasks.

Moreover, Generative AI systems can generate a vast number of visuals in a short period. It can also be trained on specific styles, themes, or brand guidelines, enabling the creation of highly customised visuals. This is particularly beneficial for businesses that aim to maintain a distinct visual identity across all their content. Automated visual content creation can produce tailored visuals that align with the brand’s message and resonate with the target audience. With preferences and trends in visual content constantly evolving, keeping up with these changes manually can be challenging. Generative AI, on the other hand, can adapt to new styles and trends quickly by analysing a wide range of visual data, generating content that aligns with current preferences and ensuring that businesses stay relevant in their visual marketing efforts.

Also read: Learn how to achieve automation in operational processes and workflow at Flux

Automation through Generative AI can also significantly reduce the costs associated with visual content creation. It eliminates the need for extensive design teams or expensive design software licenses. This democratisation of visual content creation means that even smaller businesses with limited resources can produce high-quality visuals that compete with larger enterprises.

At its core, Generative AI can act as a creative partner for designers and content creators. Handling repetitive tasks frees up creative professionals to focus on more innovative and high-level aspects of visual content creation. Additionally, it facilitates collaboration by providing a starting point for further refinement and customisation.

Ultimately, harnessing of Generative AI for automated visual content creation marks a significant leap forward in digital marketing and content creation. It empowers businesses to create visually compelling content efficiently, at scale, and with a level of customisation that was previously unattainable. As Generative AI continues to advance, its role in visual content creation is poised to become even more indispensable, shaping the future of how we communicate visually in the digital landscape.

Challenges in adopting Generative AI

One of the foremost challenges in adopting Generative AI for content creation lies in the knowledge gap. While the technology has made significant strides, implementing it effectively requires a deep understanding of both AI principles and the specific nuances of the content creation domain.

Content creators and marketers may find themselves grappling with the complexities of training models, fine-tuning parameters, and interpreting results. Bridging this knowledge gap demands a commitment to ongoing education and collaboration between experts and specialists, as well as industry leaders who understand what brands need. Without this foundational understanding, leveraging Generative AI for content creation can be a daunting and potentially unproductive endeavour.

Get discounted tickets today!

Furthermore, staying abreast of the rapid advancements in Generative AI technology poses an ongoing challenge. The field is in a state of constant evolution, with new techniques, models, and best practices emerging frequently. This necessitates a commitment to continuous learning and adaptation. For businesses and content creators, this means ensuring their teams are well-versed in the latest advancements, or in some cases, seeking external expertise to navigate the evolving landscape effectively. Keeping pace with the cutting edge of Generative AI is essential to maximising its potential for content creation, but it also demands a willingness to invest in training and development.

Flux Series: Marketing Leaders

Understanding this knowledge gap, Flux Series: Marketing Leaders aims to equip today’s marketing professionals with the practical know-how on how to optimise their teams in ways that could empower their brand. One of the key areas that marketing leaders must navigate is the world of content creation.

Also read: Braze: Top customer engagement platform will be at Flux!

Powered by Generative AI, marketing content can be calibrated in ways that could capture, nurture, and expand one’s market. As such, at Flux Series: Marketing Leaders, we are launching a series of workshops where participants can take part in interactive and practical application exercises where they can hone their marketing talents in real time.

Learning alongside regional industry leaders, Flux Series will be leading a workshop on “Harnessing Generative AI for Automated Visual Content Creation.”

InmagineThis workshop will be led by no other than Warren Leow, CEO of Inmagine Group which owns 123rf.com, pixlr.com and designs.ai. Warren has previously worked as a management consultant with Bain & Company, ran the largest accelerator in Southeast Asia, and was in commodities trading with an oil and gas major.

Inmagine is a creative ecosystem that spans content, community and creative tools with the mission to allow creatives to work SMARTER, FASTER, and EASIER using AI, technology and creativity.

With Warren’s extensive experience in the field, he will be discussing the potential of Generative AI for visual content creation and how this can be explored and leveraged by marketing professionals from across the region. Moreover, marketing leaders get to participate, test out, and experiment with different strategies on the spot.

Join Flux Series: Marketing Leaders

Join Warren Leow and other industry leaders at the Flux Series and be a driving force in the AI-powered marketing revolution. To learn more about the event, you may visit the official Flux Series: Marketing Leaders page.

Get ready to embark on a journey that will not only deepen your understanding of AI-driven marketing but also equip you with the actionable insights needed to thrive in the dynamic world of modern marketing.

Join Flux Series: Marketing Leaders with discounted tickets here.

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The art of balancing innovation and regulation: Nurturing the silent revolution

We are living in a world of rapid technological advancement. In a span of a couple of decades, we have moved from mobile phones to smartphones, from Web2 to Web3 and to an era of AI and clean energy.

But even as we embrace the benefits of innovation, some of the innovation might go awry if left unattended. Hence, the Government might want to come in to ensure the stability of society.

In the EU, there is a push for regulation of the Artificial Intelligence (AI) Act to ensure the ethical use of AI. However, some of the industry players are pushing back against the proposed regulations, stating the burden of compliance with the regulation will hamper the development of the industry.

Such a tussle between the need to promote innovation while having the right regulation to ensure responsible use of technology and safeguarding society is a delicate balance between the society, Government and industry players. Much like the delicate act of nurturing a bonsai plant, the challenge lies in striking the right balance.

The silent revolution of innovations

Historically, innovations often seemed to be running against the current of their times. When cars were first invented, or when the first iPhone was launched, many could not fathom the profound changes they would bring. In many ways, these innovations were like cryptic pieces of art; their true value wasn’t immediately understood. Yet, they had the potential to redefine the world.

The grace of non-intervention

A significant reason some innovations flourished is that they were left relatively untouched in their early stages. Without excessive intervention from the authorities, these innovations are allowed room to grow, adapt and navigate their purpose into the society. There’s inherent wisdom in allowing the market to play its role in determining the fate of these innovations. Some will naturally thrive, while others will wither away.

When is the right time for regulations to come in?

However, non-intervention doesn’t mean a handoff approach. Once an innovation begins to show signs of significant growth and potential impact, regulations should be considered. Introducing regulatory frameworks at this juncture can ensure the innovation grows sustainably and ethically, benefiting the larger community.

Also Read: Why fintech companies should learn about customer retention from e-commerce companies

Drawing parallels with bonsai cultivation, a plant needs to be allowed to grow to a certain size before the art of trimming and pruning begins. Immediate restrictions can stunt its growth, depriving it of reaching its true potential. Similarly, introducing regulations prematurely might rob an industry of unparalleled opportunities.

The irreversibility of regulation

However, one has to keep in mind that regulations, once set, cast a long shadow. They will have a great impact, and often lasting, impact on the growth and trajectory of the industry and its innovation. Given the long-term implications and costs, it becomes challenging for regulators to backtrack or make drastic changes. Such shifts come at a high price for both the regulating bodies and the industry.

Therefore, it is important for the authorities to carefully consider the impact of their regulations.

Monetary Authority of Singapore (MAS) and the regulatory sandbox

One can look at the approach Singapore is using to balance innovation and regulation. The MAS introduced a ‘regulatory sandbox’ where fintech startups can test their products in a controlled environment without immediately facing the regular regulatory requirements.

This approach acknowledges the fast-paced nature of fintech innovations and provides a safe space for experimentation. Once a product’s viability and potential risks become clear, appropriate regulations can be established. This forward-thinking approach by MAS ensures that Singapore remains a hub for fintech without compromising on regulatory safeguards.

One use case is how Kristal.AI, a digital wealth management platform, was enrolled into the sandbox to test out the business model and later graduated from the sandbox once both the industry and regulator had a better sense of how the new product impacted the industry.

A healthy environment – a fine art of balancing innovation and regulation

Balancing regulation and innovation isn’t a matter of cold calculus but a nuanced art. It’s about discerning the “right” moment for intervention, ensuring that innovations are given the chance to reach their potential. By adopting a patient, informed, and timely approach, we can harmonise the dance between regulation and innovation, ensuring a vibrant, sustainable, and ethical future for emerging industries.

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

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Korea Investment Partners closes US$60M Southeast Asia VC fund

Synclare Kim, Head of Korea Investment Partners Southeast Asia

Korea Investment Partners (KIP) has closed US$60 million for its first flagship Southeast Asia venture capital fund.

Korea Investment Partners Southeast Asia (KIPSEA) Venture Fund I has attracted institutional investors from South Korea, Hong Kong and Singapore, including Samsung Life Insurance, Korea Development Bank, Korea Growth Investment Corporation, D.camp, Woomi Global, Mirana Ventures and Korea Investment & Securities Asia.

Also Read: An amazing opportunity for startups to enter the South Korean market

The fund will be dedicated to investing in seed to Series B, high-growth technology startups in the region, with a small proportion reserved for South Korean companies looking to expand into the region. Key focus sectors are fintech, proptech, and enterprise software.

Incorporated in 1986, KIP is one of the largest venture capital firms in South Korea, having made over 900 investments. With more than US$3 billion in assets under management, some of its notable portfolio companies include Kakao, Naver, YG Entertainment (all South Korea), Halodoc (Indonesia), and Tiki.vn (Vietnam).

KIP is a subsidiary of publicly-listed Korea Investment Holdings, a financial conglomerate with multiple financial verticals, including securities, asset management, banking, credit finance, private equity, and real estate.

KIP first established its foothold in Southeast Asia by launching the GEC-KIP Technology and Innovation Fund in 2018, with Singapore as the headquarters. It has been actively deploying capital to promising startups within the region.

Also Read: East Ventures, SV Investment launch US$100M fund to bridge SEA, Korea startup ecosystems

“Underpinned by strong macroeconomic factors and the development of technological and digital capabilities within the region, Southeast Asia remains a key target market for KIP. We target to utilise KIP’s strategic networks and the strength of its ecosystem to identify and nurture early-stage, high potential and category-defining companies across the region,” said Synclare Kim, Head of KIPSEA.

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The secrets to startup success: GGV Managing Partner Jenny Lee unveils winning investment strategy

GGV Managing Partner Jenny Lee (left) with moderator She Loves Tech Chief Content Officer Sharon Lim

On the second day of She Loves Tech Global Conference, which fell on October 27 in Singapore, GGV Managing Partner Jenny Lee spoke about the unique characteristics of Greater Asia region which global investors need to pay attention to. This is especially related to where the region is in terms of digital transformation.

“I will say, for the Greater Asia region, the challenges that we have are a little different, meaning that we are actually a bit more functional,” she began.

The Managing Partner highlighted that to implement novel technologies such as AI, for example, the challenges that companies may face include the lack of sufficient data, as many countries are just in the early stage of digitalisation. When there is no sufficient structured data, there is just no capacity to begin the automation process.

“While there is definitely opportunity for some of the more advanced cities or countries in this region, there are other areas that may need work … but you cannot avoid the transition, because it is important. Digitalisation, for consumers, can present itself in terms of better education, tax, healthcare services,” she told moderator She Loves Tech Chief Content Officer Sharon Lim.

At the fireside chat, Lee also spoke about how technological disruption affected the workforce and how policies can impact the success of startups who are able to seize that opportunity. She pointed out that there are major trends in Asia that are policy-driven by the government which can be seen in countries such as China.

“I am not against government supporting industries, because I think that if you are in the startup business, you want to be lucky as well,” she said.

Investment beyond the borders

Lee is no stranger to the global startup investment community and has made significant achievements in the field. A trailblazer in Asia’s venture capital industry, she was the first woman to crack the Midas List top ten (2015), has remained on Forbes Global 100 VC Midas List since 2012.

As a passionate technologist, she pays attention to trends in various tech verticals, not just the ones that GGV is focusing on. This is includes niche verticals such as space tech.

“Even though it is not my area of investment, it is my personal interests,” she said.

She also shares her preference for companies that are building technologies that are “not easily copied.”

“Long-lasting companies have their own advantages … That unique advantage sometimes is operational excellence, sometimes is user interface.”

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