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

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

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

1. Global investors are eyeing SEA

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

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

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

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

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

3. Working in the deep tech and life sciences sector

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

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

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

4. A great variety of focus in terms of stages

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

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

Will this trend continue?

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

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

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

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

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

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

The significant progress of the post-pandemic Philippine landscape 

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

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

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

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

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

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

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

Funding opportunities signal ecosystem expansion

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

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

Talent is the heart of the startup community

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

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

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

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

Public-private support is the main catalyst for growth

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

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

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

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

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

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

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

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

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

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

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

So, what does it mean?

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

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

What exactly attracts investors?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

The rise of AI in the legal industry

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

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

Transforming case management

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

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

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

Improving access to justice

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

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

Addressing ethical considerations

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

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

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

Final thoughts

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

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

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

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

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

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

Edited excerpts:

How do you typically approach investing during a funding winter?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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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.

The post Startups need to inspire confidence in prospective investors: Adriel Yong of Ascend Angels appeared first on e27.

HK tycoon John Lau sues EmergeVest, demands US$45M back
He sued EmergeVest over the PE firm’s portfolio company EV Cargo’s alleged plan to operate in Greater China, where it would be rivalling Lau’s own Cargo Services Group.

Bitdefender to acquire Horangi Cyber Security
Horangi Warden offers a cloud-native solution that secures critical cloud infra for hundreds of organisations across all major public cloud platforms, including AWS, Azure, and Google Cloud.

Singaporean ex-Googler’s AI startup Reka raises US$58M
The lead investors are DST Global and Radical Ventures; Reka’s first commercial product Yasa is a multimodal AI ‘assistant’ trained to understand images, videos and tabular data in addition to words and phrases.

Singapore’s digital payment platform Sunrate raises funding
The investors include Prosperity7 Ventures and SoftBank Ventures Asia; Sunrate provides cross-border payment and treasury management solutions for businesses in emerging markets.

HK’s OneDegree raises US$27M to expand insurance reach in Asia
The investors include Gobi Partners, BitRock Capital, and Sun Hung Kai; OneDegree will use the funds to further expand in Asia and invest in its AI capabilities.

Carl Pei’s Nothing closes US$96M in funding ahead of Phone (2) launch
The startup’s first product – wireless earbuds Ear (1) – generated orders for 400,000 units when it launched in August 2021; This was followed by Nothing’s Phone (1) debut in July 2022 and Ear (2)’s rollout in March this year.

Korea’s Alwayz aims to make e-shopping fun with US$46M in funding
The investors include DST Global, KB Investment, and Korea Investment; Alwayz deviates from typical e-commerce platforms by incorporating social features like short videos and gamification into shopping to draw customers.

Preowned motorcycles marketplace iMotorbike scores US$2.6M
The investors include Gobi Partners, Ondine Capital, Penjana Kapital, and The Hive Southeast Asia; The funds will be used to strengthen its operations in Malaysia and Vietnam, besides investing in technology and talent.

Meet the 4 SEA startups of PepsiCo’s climate tech programme
They were the results of an open call PepsiCo did in March, when it sought solutions for sustainable packaging and climate reduction.

Indonesia’s Baskit raises US$3.3M in seed funding
The investors include Betatron Venture Group, Forge Ventures, Investible, and 1982 Ventures; Baskit focuses on digitalising and growing distribution businesses in supply chains.

Crypto.com to set up Singapore innovation lab
The lab will leverage Singapore’s strength as both a tech-driven city and a leading global financial hub to further accelerate the development of the nascent digital asset industry innovatively and responsibly.

Is there a sudden slowdown in the pace of digital transformation globally?
Matija Kapic of Infobip says if businesses refrain from adopting digitalisation, they will lose approximately US$145 billion of GDP growth.

Lessons from Echelon: Make cybersecurity a priority from day one of the business planning
Given the ever-evolving threat landscape, cybersecurity holds paramount importance for startups, demanding proactive measures from day one.

How layer-2 rollups boost Ethereum’s scalability for broader Web3 adoption
Two types of Rollups are currently very common: Optimistic and Zero-Knowledge (ZK); But while both methods contribute significantly to Ethereum’s scalability, they have considerable limitations.

Unleashing the power of specialised AI startups in the era of generative AI
To maximise the value of generative AI, startups should consider the optimal insertion point for their product within existing workflows.

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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.

The post Ecosystem Roundup: Bitdefender to acquire Horangi Cyber Security, HK tycoon John Lau sues EmergeVest appeared first on e27.

Artificial Intelligence is fast becoming the most wanted tech tool in the new era. The likes of ChatGPT have become the most widely used software solutions.

Below is a list of the investors that have invested in Southeast Asia’s AI startups in 2023 so far.

Darwin Ventures

Darwin Ventures is a fund of funds that provides individual and institutional investors (primarily educational endowments and foundations) access to investment opportunities generally unavailable to most investors. The firm was founded to provide selective investments in top-tier VC funds. These investments include a diverse group of VC partnerships focusing on US-based early-stage VC funds diversified across industry sectors, including technology, information technology, and healthcare.

Hive Ventures

Hive Ventures is a global VC firm that aims to accelerate technological advancements from Taiwan to build a smarter, hyperconnected world. Led by a team of entrepreneurs with deep expertise in AI and big data, the firm invests in early-stage companies developing the building blocks of AI, SaaS, blockchain and other future technologies.

Harbinger Ventures

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

Darwin, Hive, and Harbinger invested in Profet AI, a Taiwanese artificial intelligence startup in January this year.

RTP Global

RTP is an early-stage VC firm. It has made over 110 investments worldwide, with one in ten becoming multi-billion dollar companies, including Datadog, DeliveryHero and Cred. Its capital comes almost entirely from its founders, who reinvest proceeds from their past startups.

It has a presence in New York, Bangalore, Dubai, London, and Paris.

Lunar Ventures

Lunar Ventures is a deep-tech, seed-stage venture fund with a team of three deep-tech expert partners in Berlin. It invests pre-revenue to help turn your science fiction into reality.

It writes a cheque of €300,000 to €1 million (US$325,000 to US$1.8M) to technical teams with strong R&D backgrounds who build European products that will sell globally.

In February, RTP and Lunar joined the US$3.6 million seed funding round of Instill AI.

Biospring Partners

Biospring Partners was founded in 2020 by Michelle Dipp and Jennifer Lum to invest in companies with the potential to fundamentally shift how technology is utilised across the life sciences sector. Biospring invests in growth-stage B2B companies driving innovation across the life sciences industry and beyond.

Senator Investment Group

Based in New York, Senator Investment is a hedge fund providing services to pooled investment vehicles. It specialises in the fields of financial services and investment management. It was formed in 2008.

B Capital Group

B Capital Group is a global firm specialising in equity investments in venture and growth-stage companies that have achieved traction with customers. Through its extensive global network and exclusive partnership with The Boston Consulting Group, B Capital helps high-growth startups navigate business challenges, raise capital, and attract talented leadership at key points of their journeys to scale.

It has offices in San Francisco, New York, Los Angeles, and Singapore. The focus verticals are AI, biotech, consumer, cybersecurity, e-commerce, finance, healthtech, insurtech, SaaS, transportation, and travel.

The focus stages are seed, pre-Series A, Series A, Series B, Series C, and above. The ticket size is US$10 million to US$60 million.

Glasswing Ventures

Glasswing Ventures is an early-stage VC firm investing in the next generation of AI and frontier technology startups enabling the rise of the intelligent enterprise. It is laser-focused on funding exceptional entrepreneurs leading the AI revolution, capitalising on the intellectual might and talent from the premier academic institutions on the East Coast, and fostering growth for our ecosystem.

In March, Biospring, Senator Investment, B Capital, and Glasswing invested in Labviva, a Singapore- and US-based AI-driven life sciences digital marketplace.

FinSight Ventures

A global fintech and SaaS investor. Most of its investments are from the US, India and Europe. It invests in pre-seed and seed stages and writes US$50000 to US$100,000.

For Series A and Series B firms, it usually invests anywhere between US$500,000 to US$5 million. In Series С+, it can invest between US$10 million and US$20 million.

Rebel Fund

Rebel aims to invest in the best 0.1 per cent of the 40,000-plus tech startups that apply each year to Y Combinator. The fund’s due diligence and investing decisions are made by a team of accomplished Y Combinator alumni who have founded companies valued at over US$85 billion, invested in 200+ startups, and generated top-decile portfolio returns.

Rebel utilises a proprietary machine-learning algorithm called Rebel Theorem to help validate and screen potential investments.

Nurture Ventures

Nurture Venture provides venture assistance and strategic advice to entrepreneurs. The firm focuses on various areas, including healthtech, cyber security, applied artificial intelligence, and customer experience.

Leonis Investissement

Leonis Investissement is a private club that allows individuals and business angels to invest from €1,500 in hyper-growth startups in Silicon Valley.

FinSight, Rebel, Nurture, and Leonis were part of the US$8.5 million Series A funding round of Betterhalf, an AI-powered matchmaking platform targetting urban Indians.

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).

SEEDS Capital

As the investment arm of Enterprise Singapore, SEEDS Capital catalyses smart monies into Singapore-based early-stage technology startups. It co-invests with institutional investors in innovative startups with strong intellectual content and global market potential. It focuses on nascent and strategic industries such as advanced manufacturing and engineering, health & biomedical sciences, and urban solutions & sustainability.

It also looks at other emerging technologies such as agri-tech, AI, blockchain, Quantum Computing, and space technologies. Post-investment, it leverages Enterprise Singapore’s networks across industries and global overseas centres to support the growth of our portfolio companies.

Today, it has over 100 startups in its portfolio and works with more than 40 co-investment partners.

Wavemaker and SEEDS Capital participated in the US$1.8 million seed funding round of Groundup.ai, a Singaporean startup helping industrial companies prevent unplanned downtime of industrial assets and improve workplace safety.

Horizons Ventures

Horizons Ventures was co-founded by Solina Chau and Debbie Chang in 2005. It is known for backing era-defining companies making a lasting and positive impact worldwide. Its notable early-stage investments are Zoom, Impossible Foods, Perfect Day, Spotify, Siri, and DeepMind.

LifeX Ventures

LifeX is a capital growth company that de-risks early-stage life sciences companies in terms of time, resources, and investment. It focuses on the strategic pillars of commercialisation, capital, infrastructure, and resources to create alignment and achieve the highest probability of success for every company in our portfolio.

Blackbird Ventures

Blackbird is based in Australia and New Zealand. It invests in every type of technology, from software to space. It backs the best startup companies from idea to beyond IPO. Its portfolio is worth over US$7 billion and includes some of the most successful Aussie and Kiwi startups, including Canva, Zoox, SafetyCulture, Culture Amp, and Halter.

Radar Ventures

Radar Ventures is a private fund based in Australia and New Zealand, investing globally in companies developing technology solutions to problems affecting humans on a global scale. Investment sizes vary, with a preference to invest early and follow the company’s growth.

In April, Horizons, LifeX, Blackbird, and Radar joined the US$10 million financing round of Singapore- and Australia-based Cortical Labs.

Qatar Investment Authority (QIA)

QIA was established in 2005 to protect and grow Qatar’s financial assets and to help diversify the economy. QIA is a global investment organisation with investments spanning all major global markets, asset classes, sectors and geographies.

ICONIQ Capital

ICONIQ Capital is a privately-held investment firm. ICONIQ provides financial advisory and family office services and manages direct investments focusing on technology growth equity, venture capital, middle market buyout, and real estate.

Jungle Ventures

Jungle Ventures is a Singapore-based VC firm that invests in and helps build tech category leaders from Asia. It invests in early and growth-stage companies.

The focus verticals are consumer, enterprise solution, finance, and SaaS.
It invests across Singapore, Indonesia, India, Malaysia, Thailand, and Vietnam across pre-Series A/bridge, Series A, Series B, Series C, and above.

The investment range is US$1M to US$15M.

Its portfolio includes Livspace, Kredivo, Reddoorz, Sociolla, and Waresix.

Insight Partners

Founded in 1995, Insight Venture Partners specialises in growth-stage software and internet investing globally. Insight’s team of growth experts comprises technology investors and operating executives with significant experience scaling technology companies. Since its inception, Insight has raised over US$7.6 billion to invest in market-leading companies through minority and majority deals.

QIA, ICONIQ, Jungle, and Insight were part of the US$250 million Series D funding round of Builder.ai, an AI-powered composable software platform.

Warburg Pincus

Warburg Pincus is a global growth investor. The firm has more than $80 billion in assets under management. Its active portfolio of more than 250 companies is highly diversified by stage, sector, and geography.

Founded in 1966, Warburg Pincus has raised 21 private equity and two real estate funds, which have invested over US$109 billion in over 1,000 companies in more than 40 countries. The firm is headquartered in New York with offices in Amsterdam, Beijing, Berlin, Hong Kong, Houston, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai, and Singapore.

Northstar Group

Northstar Group is a Singapore-headquartered private equity and venture capital firm managing over US$2.6 billion in committed equity capital. It invests in fast-growing in Southeast Asia with a particular focus on Indonesia.

Since its founding in 2003, the group has invested in more than 50 companies across the financial services, consumer/retail, manufacturing, technology, telecom, and agribusiness sectors. In aggregate, it has invested over US$4 billion with its co-investors in Southeast Asia.

In May, Singapore-based AI company Advance Intelligence Group raised US$80 million from an investor consortium led by existing investors Warburg Pincus and Northstar Group.

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Bitdefender, a global cybersecurity company headquartered in Romania, has agreed to acquire Singapore-based Horangi Cyber Security.

The transaction is expected to close subject to the satisfaction of customary closing conditions. Terms of the transaction were not disclosed.

With this acquisition, Bitdefender will incorporate Horangi’s Cloud Infrastructure Entitlement Management (CIEM) and Cloud Security Posture Management (CSPM) capabilities into the Bitdefender GravityZone unified risk and security analytics platform. These will add critical compliance and governance capabilities to Bitdefender’s threat prevention, protection, detection and response capabilities.

Additionally, Horangi’s security services, including proactive risk assessment, red teaming, and penetration testing, will integrate with and complement Bitdefender Managed Detection & Response (MDR) services.

Also Read: Lessons from Echelon: Make cybersecurity a priority from day one of the business planning

Horangi Cyber Security was founded in 2016. Its flagship platform, Horangi Warden, is a cloud-native solution that secures critical cloud infrastructures for hundreds of enterprise organisations across all major public cloud platforms, including AWS, Azure, and Google Cloud.

“This acquisition represents a strategic partnership built on shared values, a commitment to innovation, and a vision for the future,” stated Paul Hadjy, Co-Founder and CEO of Horangi Cyber Security. “By leveraging Bitdefender’s broad cybersecurity portfolio, our customers can expect an even greater level of service, accelerated innovation pace, and exceptional cybersecurity outcomes in the cloud and beyond.”

Founded in 2001, Bitdefender is a cybersecurity company delivering threat prevention, detection, and response solutions. The firm has customers in 170-plus countries with offices worldwide.

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SG-based firms stepped up tech acquisitions in rest of SEA in 2022
According to DealStreetAsia, such tech acquisitions witnessed a 166% surge from 12 in 2021 to 32 in 2022; About 62.5% of the targets were Indonesian firms, mainly from fintech and financial services sectors.

Prenetics announces US$200M JV for early cancer detection
The joint venture Insighta with Dennis Lo, an expert in non-invasive prenatal testing and liquid biopsy, aims to develop and commercialise a breakthrough early detection screening test for several types of cancer.

Singapore-based Apeiron bags US$37M in debt funding
Apeiron collects various types of food and agricultural waste – including used cooking oil, tallow, and palm oil mill effluent – and converts them into biodiesel.

UTU raises US$33M to help travellers get more from tax-free shopping
It has also acquired CardsPal, a Singapore-based fintech that offers deals and promotions nearby to users; Utu’s goal is to create innovation in the tax-free shopping sector, which allows tourists to reclaim VAT on their purchases.

Byju’s assures investors of FY 2022 earnings audit by September
The Indian edutech unicorn previously filed its financial statements for FY 2021 in September 2022; Last week, Byju’s auditor Deloitte resigned due to long delays in completing its FY 2022 financials.

Amazon plans to invest another US$15B in India by 2030
The e-commerce group has invested about US$11B in India to date; The vast majority of the new capital is likely earmarked for AWS expansion in India.

Ant Group expands Alipay+ to all 7-Eleven stores in Malaysia
The integration, which was facilitated by Razer Merchant Services, allows the 2,400 7-Eleven stores in Malaysia to accept AlipayHK, GCash, Kakao Pay, and TrueMoney as payment options.

GoTo-backed Electrum to manufacture 250K e-bikes annually
It is constructing a factory in the West Java province to manufacture two-wheel EVs in Indonesia; These collaborations involve efforts in battery packaging and production, EV adoption, and battery swapping.

Alt-protein firm Green Rebel readies to serve the Philippines, Vietnam
The meat consumption in those markets has been relatively higher than in the rest of the region; People are willing to shift to plant-based meats if the quality is on par and affordable.

‘Starting with a clear culture in mind is a vital for companies’
Finhay CEO Huy Nghiem says short-term financial stability is as important as long-term goals; If we cannot meet the former, we can’t meet the long-term goal either.

How Salmon promotes financial inclusion with AI banking in PH
In its first year since launching, Salmon has achieved significant milestones, including launching its first point-of-sale lending product.

Solarad.ai can forecast accurate energy generation for solar plants
Solarad.ai’s software continuously updates the forecasts to account for real-time weather conditions and fine-tune the accuracy of the predictions.

The future of gamification: Connecting brands with consumers through games
Gamification solutions will bear greater resemblance to mobile games in which consumers can earn rewards through a curated process.

UK implements stricter rules: Crypto airdrops and dree NFTs banned
The UK concluded a consultation on new rules for the crypto sector and proposed an authorisation regime overseen by the FCA.

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Baskit, a startup that focuses on digitalising and growing distribution businesses in Indonesia’s supply chains, today announced that it had raised US$3.3 million in seed funding.

The funding round comes from Betatron Venture Group, Forge Ventures, Investible, 1982 Ventures, DS/X Orvel, Michael Sampoerna, and other prominent global and regional angels.

It followed a US$1.5 million pre-seed funding round that Baskit announced in March.

With the fresh funding, the company plans to accelerate expansion for proven revenue streams while doubling down on its technology stack and leveraging resources to strike numerous important contracts with brand principals and manufacturers.

“We aspire to build a platform that orchestrates all of the relevant players in the supply chain, generating economic gain and ultimately benefiting consumers. To do this, we have a razor-sharp focus on building superior tech that wins in functionality and usability for the SMEs we support,” Baskit CEO Yann Schuermans said in a press statement.

Also Read: Echelon: Breaking barriers in Southeast Asia’s supply chain

“With the raised funds, we will accelerate both our tech roadmap and city-by-city expansion, continuously embedding flexibility into our platform to cater to Indonesia’s vast and diverse landscape.”

How Baskit drives growth to a new height

Launched in November 2022, Baskit said that it had seen rapid growth since its inception, sustaining growth rates of more than 70 per cent month-on-month during the period.

In an email interview with e27, Schuermans explained the keys behind this achievement.

“Growth comes from a carefully executed go-to-market in regions that needed our solutions the most. We used local relationships and referrals to drive quick adoption and an efficient acquisition process, and have been able to effectively monetise our software, revenue-share initiatives (we take a cut if our customers grow), and signed lucrative contracts with lenders and manufacturers who want to access our wholesalers.”

He also shared the user acquisition strategy that Baskit is implementing: “Acquisition strategy is a very localised one; we play city by city and ensure that we build critical mass in each one of the areas we operate in. We’ve been very focused on West Java, particularly Greater Bandung Area, for now, and will be expanding to Greater Jakarta Area and Central Java in H2 2023.”

According to the company, the rapid expansion is reflective of a real need in the market for strengthening the operations of distributors and wholesalers.

These two players are now facing increasing competitive and fiscal pressures in the aftermath of COVID-19.

Also Read: Logistics platform for e-commerce merchants Jumppoint raises US$6.5M

This “new normal” involves high awareness but low access to tech, thinning margins and additional operational complexity from rampant inflation, and declining sales from softness in certain sectors. Baskit believes that the timing is conducive for them to support across these areas.

Schuermans said, “Collectively, trade and industry account for more than half of Indonesia’s GDP and are supported by more than 200,000 traditional distribution businesses that ensure that people can access a wide array of products, from biscuits to cement for construction.”

“While it is fashionable to disintermediate these businesses, it is not sustainable as they hold valuable infrastructure and relationships. We are deeply committed to supporting these intermediaries in their pursuits of powering their local communities and believe that doing so will yield tremendous economic benefits in the long run.”

This year, there are three things that Baskit wants to focus on: Expansion into the aforementioned areas; product improvements, particularly around its SaaS product and data product capabilities; and expansion of the number of lucrative contracts to build a solid foundation for profitability into 2024.

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Image Credit: Baskit

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