In our years of working closely with a diverse range of businesses, we’ve witnessed firsthand the ever-evolving landscape of startups and entrepreneurship. Over the years, we’ve seen many businesses embark on the quest for funding, believing that substantial venture capital or angel investments were the golden ticket to success. This notion has been deeply ingrained in startup culture for decades, and it’s a path that’s often chosen.

However, our journey alongside these businesses has revealed a fascinating shift in recent times. Entrepreneurs from various industries and backgrounds are now recognising the profound value of aligning their fundraising efforts with what we affectionately call the “bootstrapper’s mindset”.

This shift represents a pivotal change in perspective — one that champions profitability and the efficient allocation of resources. The end result? Businesses that are not only successful but also remarkably sustainable and resilient in today’s fast-paced and dynamic entrepreneurial landscape.

Now, let’s dive deeper into this transformative approach, often referred to as “fundraising with a purpose,” and discover why it’s making waves in the world of startups.

The bootstrapper’s mindset defined

Now, before we dive into the good stuff about fundraising with a bootstrapper’s mindset, let’s get on the same page about what this mindset is all about. Bootstrappers are the kind of entrepreneurs who put a premium on financial sustainability and self-reliance. They’re all about building businesses that can go the distance without leaning on external funding. Think of them as the resourceful, penny-pinching, profit-focused pioneers of the startup world.

The traditional fundraising approach

Traditionally, startups seeking external funding tend to prioritise growth at any cost. The mantra often is to secure as much capital as possible to scale rapidly, even if it means operating at a loss for an extended period. While this approach can work for some companies, it comes with inherent risks. Overemphasis on growth can lead to overspending, a lack of focus on profitability, and, in some cases, an eventual burnout of funds without achieving sustainable success.

The benefits of fundraising with a bootstrapper’s mindset

So, why should startups consider aligning their fundraising efforts with a bootstrapper’s mindset? 

Here are some compelling reasons:

Sustainable growth

In our journey, we’ve come to truly appreciate the beauty of sustainable growth, and it’s a lesson we believe every startup can benefit from. It all begins with adopting a bootstrapper’s mindset, a mindset that encourages startups to prioritise growth that stands the test of time.

We’ve learned that it’s not just about growth for growth’s sake. It’s about crafting strategies that have a fundamental goal — to generate revenue and profitability right from the outset.

When we embrace sustainable growth, we equip our businesses to withstand economic downturns and face unexpected challenges with resilience. It’s like building a strong foundation for a house; it ensures that the structure can weather the storm, stand tall, and continue to thrive, no matter what comes our way.

Also Read: The power of financial models for startups: A guide for founders and VCs

So, if there’s one piece of advice we’d like to share, it’s this: prioritise sustainable growth from day one. Focus on strategies that not only propel your business forward but also anchor it securely in the ever-changing tides of the business world. It’s a journey worth embarking on, and we’re here to reflect on it with you.

Resource efficiency

Bootstrappers, by nature, excel at the art of resource allocation. They don’t see expenses; they see investments. They understand the true value of every dollar spent and have a knack for discovering ingenious ways to maximise their resources. This efficiency isn’t just about saving a few bucks; it’s about extending the runway for startups, ensuring they have the stamina to keep soaring.

But it’s not only financial runway extension that resource efficiency brings to the table. It nurtures something much more profound — a culture of fiscal responsibility. This culture becomes an integral part of your startup’s DNA, guiding decisions and actions at every turn.

So, as you navigate the exhilarating journey of entrepreneurship, remember the wisdom of resource efficiency. See every dollar as a building block in your grand vision. Embrace the power of maximising resources, and let it be the cornerstone of fiscal responsibility within your startup. It’s a practice that’s not just good for your bottom line; it’s the key to long-lasting success.

Financial resilience

Financial resilience is like a sturdy ship in turbulent waters. When you’re prepared, you can navigate the storms with confidence, knowing that your business is built to endure. By embracing this mindset, startups become less vulnerable to the whims of external economic factors. Instead of being tossed about by market volatility, they stand firm, adaptable, and steadfast in their commitment to long-term success.

So, if we were to impart a piece of advice gained from our journey, it would be this: prioritise the cultivation of financial resilience within your startup. Consider it your safety net, your shield against the uncertainties of the business world. It’s not merely about weathering the storm; it’s about emerging from it stronger and more prepared for what lies ahead.

Investor confidence

Investors are drawn to the potential for long-term returns and sustainability that this approach signifies. It’s a powerful way to build trust and forge lasting relationships with those who believe in your vision.

Seek not just investors but partners who share your commitment to financial wisdom. Show them that you’re not just about raising funds; you’re about making those funds work efficiently and profitably for the long haul.

Customer focused

This customer-centric approach is like a compass, guiding startups towards the path of loyal and satisfied customers. It’s a journey that reduces the need for excessive spending on customer acquisition because satisfied customers often become your most effective brand advocates.

Also Read: How Asia Pacific startups propel the evolution of Generative AI

As you tread your own entrepreneurial path, take a moment to reflect on this. Prioritise understanding and serving your customers, for in them lies the lifeblood of your startup. It’s not merely about chasing numbers; it’s about nurturing relationships that will fuel your growth journey.

Case in point: The Bumble success story

One noteworthy example of fundraising with a bootstrapper’s mindset is Bumble, the popular dating and social networking app. Founded by Whitney Wolfe Herd, Bumble took a unique approach to marketing with a bootstrapper mindset. While the company did raise funds, it used ‘crazy hacks’ to drum up user interest without breaking the bank.

• Cookies and connection: Herd, with a twinkle of creativity, walked into a humble cookie shop, handing over a mere US$20 to skilled bakers. The task? Adorning yellow-frosted cookies with the iconic white Bumble logo. Armed with this delightful treat, she ventured to a nearby college sorority, forging connections and sparking interest in the app.
• Gifts that garnered attention: The savvy entrepreneur didn’t stop at cookies. She showered sorority girls with an array of captivating gifts, all in exchange for downloading and sharing the app with friends. Balloons, koozies, and vibrant yellow Hanky Panky undergarments all found their way into the hearts of potential users. These inventive incentives turned heads and ignited curiosity.
• Pizza and branding: College fraternities became another avenue for Herd’s creative marketing tactics. Armed with pizza boxes adorned with branded bumblebee stickers, she made her presence known. It was a simple yet effective strategy to capture the attention of potential users within these communities.

Herd‘s mantra was clear: “We did not have countless marketing dollars…we actually had to be really scrappy.” She understood that success often hinges on innovative thinking, resourcefulness, and a willingness to take unconventional routes. With her unique approach, several sorority women and fraternity men began to download the app, igniting a snowball effect of growth.

Herd’s journey with Bumble serves as a testament to the power of a bootstrapper mindset and the ingenious “crazy hacks” that can propel a startup to extraordinary heights.

Wrapping up: Navigating the startup terrain

The bootstrapper’s mindset has undeniably demonstrated its value, unveiling a roadmap that seamlessly integrates profitability, resource optimisation, and steadfast fiscal responsibility.  It’s a path that leads to the creation of businesses that are not just robust but also magnetic, drawing in investors and customers alike.

While it’s undeniable that external funding plays a crucial role in the growth of startups, what truly distinguishes exceptional businesses is the alignment with the idea that one doesn’t necessarily require substantial capital to generate profits. This alignment serves as the bedrock for enduring success and sustainability, shining brightly as a guiding light in the ever-shifting and unpredictable realm of entrepreneurship.

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Toki, a Philippine social commerce platform dedicated to collectibles in Southeast Asia, has secured US$1.8M in pre-seed funding from Kaya Founders and Foxmont Capital Partners.

Strategic investors, such as Anthony Oundjian (BGC Philippines), Brian Cu (SariSuki), and Ernest Cu (Globe), also participated. Bigboy Cheng, a renowned Southeast Asian sneaker, toy, and art collector, also joined.

Launched in November 2023 by former GCash executives, who are avid collectors, Toki aims to bring a seamless experience to collectors’ journey, from discovery to purchase, and address the challenge of unsecured transactions in the market that comprise payments, logistics, and after-sales.

Also Read: Rise of digital collectibles: The long-awaited “NFT” rebrand

Since its launch, the marketplace has featured over 70,000 products across its first four categories, onboarded 100 curated sellers who rank among the top 30 sellers/resellers in their respective categories, and conducted close to 50 livestream auctions.

Toki debuted with the first four categories of Sneakers, LEGO, NBA Cards, and Funko Pops, representing the most popular collectibles among Filipino collectors.

In the next few months, Toki will scale up to expand its inventory further and introduce more categories in the platform. As a platform offering livestream auctions, Toki plans to build on this feature and continually unveil more innovative capabilities to enhance collectors’ experience.

Nearly half of the population (46 per cent) identifies as collectors in Southeast Asia, Hong Kong, and Taiwan. Among these, a significant 91 per cent have engaged in recommerce, averaging an annual spend of US$200, demonstrating this market’s robust nature and potential.

Zoe Ocampo, Co-Founder and CPO of Toki, said: “In countries like Thailand, Indonesia, and Vietnam, there’s a real appetite for platforms that not only offer reliable, secure trading but also bring the excitement of live stream auctions. We’re thrilled about stepping into this space and making a difference.”

According to a joint study by Toki and GMO Research, the collectible market in Southeast Asia is currently valued at US$34 billion. It is projected to grow 7.2 per cent through 2026, reaching an expected market size of US$54 billion by 2030.

Also Read: Stanible lets celebrities, superfans embrace Web3 via digital collectibles

“Now that we are seeing traction, our primary goal is to establish ourselves as a reliable partner to Filipino collectors. We still need to keep on perfecting our solution to address the gaps that we have already identified in the market,” stated Frederic Levy, Co-Founder and CEO of Toki. “As we streamline, expand, and introduce more categories on our platform, we will also be assessing other markets to identify where collectors could benefit from our services. Most importantly, we are focused on understanding how to serve them in the most effective way.”

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Japanese startup Bioworks has secured undisclosed funding from Purpose Venture Capital (Singapore), Hill Capital (Hong Kong), 18 Salisbury Capital, textile trading company Yagi & Co, and other unnamed investors, bringing its cumulative capital raised to date to US$17.3 million.

The newly raised capital will be utilised to strengthen its R&D and human resources, expand its product portfolio, enter new markets, and expand its domestic and international business.

Also Read: Why these startups focus on informal plastic waste workers in the fight against climate crisis

Established in 2015, Bioworks is a new material creation company aiming to realise a sustainable, recycling-oriented society. It has developed PlaX, a new carbon-neutral material made from polylactic acid (PLA), a bioplastic made from sugarcane and other plant-based materials, with the addition of a plant-derived additive developed in-house by Bioworks.

PlaX presents a viable alternative to petroleum-derived synthetic fibres like polyester. It is biodegradable and compatible with chemical recycling, in which equivalent materials are reproduced from waste. It can reduce CO2 emissions by 35 per cent compared to polyester during yarn production. Emissions during incineration and disposal are also reduced.

Through the partnership with Yagi, a company with a long history of success in the textile industry, Bioworks will further expand the reach of PlaX, a new carbon-neutral material developed in-house, to a broader market.

Co-founded by Sharon Sim, Sertac Yeltekin, and Von Leong, Purpose Venture Capital is a Singapore-based international VC firm that supports early-stage sustainable tech companies. The firm invests globally with a focus on Asia-based startups.

Also Read: Understanding the role of fintech, blockchain in transitioning to net zero

Its portfolio companies include Zumvet (animal health service), Igloocompany (secure access management platform), HydraX (regulatory-compliant and sustainable financial infrastructure for capital markets of the future), and Archireef (a nature tech company dedicated to the restoration of degraded marine ecosystems).

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Singapore-based Accelerating Asia unveiled the eight startups graduating from its latest cohort (cohort 9), who will pitch to an audience of investors worldwide on demo day on January 31, 2024. 

Spread across 100 days, the programme includes master’s classes, mentoring with Accelerating Asia Ventures’s entrepreneur-in-residence, pitch nights, and other events that were capped off with an in-person retreat in Bali, Indonesia, for one week of intensive learning from mentors, facilitators, and program administrators. 

Also Read: Accelerating Asia on building a company culture that fosters innovation and inclusion

The eight graduates — coming from six markets across Southeast Asia (Singapore), South Asia (India, Sri Lanka, Pakistan, Bangladesh), and East Asia (Japan) — saw an increase in average monthly revenue from US$13.2,000 to US$51,000. They also received investments from Accelerating Asia Ventures Fund 2.

The cohort 9 of Accelerating Asia graduates are:

BrickandMortar.AI: it connects its AI system with existing CCTV infrastructure and churns out real-time actionable intelligence that solves business problems.

Auptimate: a platform which makes it easy to set up and operate special-purpose vehicles.

Interactive Cares: a virtual Edtech company that creates employability for millions of unemployed youths in emerging markets.

Mintpay: a shopping aggregator that simplifies shopping decisions and offers flexible payment options, cashback rewards and voucher discounts.

Also Read: Seedstars, Accelerating Asia back Bangladeshi e-pharmacy startup MedEasy

Noapp: an AI-driven platform that aims to empower businesses to market and launch their products built with the official WhatsApp API.

ORKO: a software provider for electric vehicle manufacturers & fleet operators and charging station/battery swapping station operators.

PEEL Lab: a B2B greentech manufacturer of plant-based leather made out of leftover pineapple leaves.

UXArmy: the startup enables organisations to understand customer needs and create delightful experiences backed by automated user research and AI.

Accelerating Asia Ventures will also begin recruiting for its next cohort of startups soon. Startups interested in joining the accelerator programme and becoming part of Cohort 10 can apply here.

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Singapore-based OKX Ventures has led an investment round in BeWater.

BeWater is a Web3 venture studio and global developer platform that facilitates the development of open-innovation campaigns and events, including hackathons, in what it claims to be 10 minutes.

With over 100 campaigns underway, BeWater claims to have a diverse range of coding languages, including Solidity, Rebase and Move, coupled with various Layer 1 chains and toolkits such as Starknet, Bitcoin and Polkadot. The company said its platform has attracted over 25,000 GitHub-certified developers from more than 50 countries.

Also Read: What metaverse trends should you keep an eye on in 2024?

Leveraging its incubation experience and expertise, BeWater’s Web3 venture studio focuses on supporting early-stage startups and nurturing a Web3 product ecosystem. According to a statement, BeWater recently achieved success with the ‘ABCDE BTC Hacker Camp’ held in November 2023. During this event, seven BTC ecosystem projects received oversubscribed funding within just ten days of immersive bootcamps and BTC workshops.

“BeWater’s vision aligns perfectly with ours, as it seeks to capture the progress achieved through the experience of building from scratch. Together, we aim to advance the widespread adoption of Web3 technology, enhance practical use cases, and deepen engagement in Web3 from Web2. As lead investors in BeWater, we are dedicated to enriching user awareness and amplifying the power of builders as we enter a new era in the crypto and Web3 space,” OKX Ventures Founder Dora Yue.

OKX Ventures is the investment arm of the global crypto exchange and Web3 technology company OKX, with an initial capital commitment of US$100 million. It focuses on exploring the best blockchain projects on a global scale, supporting cutting-edge blockchain technology innovation, promoting the healthy development of the global blockchain industry, and investing in long-term structural value.

Also Read: Whampoa Digital, Wemade partner to form US$100M Web3 fund

Recently, OKX Ventures joined the Series A funding round of Polyhedra Network, which builds the next generation of infrastructure for Web3, focusing on interoperability, scalability and privacy, using advanced ZK-proof technology.

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