Singapore-based health sciences VC firm SPRIM Global Investments has led the US$21 million funding round (equity and debt) of Australian biotech firm Prota Therapeutics.

The fresh funding will be used to advance the development of Prota’s peanut allergy remission oral therapy, PRT120, which is being prepared for the phase 3 clinical investigation.

The new investment will advance the chemistry, manufacturing, and controls (CMC), accelerate the path to an investigational new drug application (IND), and expand Prota’s executive management team to bring on board critical expertise in late-stage drug development and commercialisation.

“Our Phase 2b multicenter randomised controlled trial conducted by the Murdoch Children’s Research Institute (MCRI) showed that PRT120 is highly effective at inducing remission of allergy, and more importantly, leads to significant and clinically meaningful improvement in quality of life, compared with standard care (placebo treatment),” said Professor Mimi Tang, Founder of Prota.

Founded in 2016, Prota focuses on developing and commercialising oral immunotherapy treatments for food allergies. Headquartered in Melbourne, the company owns intellectual property that includes the food immunotherapy technology developed at the MCRI.

Also Read: Komunal lands US$5.5M in Series A+ round to digitalise rural banks in Indonesia

Prota is partially funded by OneVentures’s Healthcare Fund III, which received support from the Australian Commonwealth Government through the BioMedical Translation Fund initiative.

According to a report cited by Prota, the peanut allergy therapeutics market is projected to reach US$1 billion by 2030, growing at a compound annual rate of 10 per cent, partly due to the increasing incidence of peanut allergy globally. In the US, peanut allergy is the most prevalent food allergy in children, affecting 2.5 per cent of children.

SPRIM Global Investments in biotechnology, digital health and R&D service companies to commercialise the newest technologies and accelerate innovations that are the future of health around the world

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Sanjay Sehgal is a seasoned entrepreneur, venture and angel investor, and philanthropist who currently serves as the Chairman and CEO at MSys Technologies.

As countries like India contemplate regulatory reforms for AI, Sehgal provides valuable insights into the ever-evolving landscape of AI and its ethical considerations and shares his perspectives on prioritising key principles that strike a delicate balance between safeguarding end-users and fostering the continual progress of the technologies.

Edited excerpts from the interview:

As countries like India consider drafting regulatory reforms for AI, what key principles do you believe should be prioritised to ensure a balance between protecting end-users and fostering the progress of AI technologies?

India should have a light touch while framing these laws because the recently launched Telecommunications Bill already covers stringent steps towards user privacy and protection. The country can also appoint specific advisories to fight the problems of deep fakes and AI-manipulated content.

Also Read: Experts advocate thoughtful regulation for the rapid rise of Generative AI

However, creating very strict laws like in the EU, for instance, can seriously restrict the scope of AI in India. The focus should also be on the big picture, where the government can work closely with tech companies to upskill the nation to use AI as a tool rather than demonise it for its pitfalls.

The recent lawsuit between The New York Times and OpenAI brought attention to the potential use of original content to train generative AI models. What ethical considerations should AI companies consider when developing and training their models, particularly concerning using copyrighted material?

Data is the atom with which the proverbial body of AI is created. So when Generative AI uses large amounts of data to train its model to share accurate responses within seconds, we must also understand that gathering such a quantum of data ethically is a challenge.

More such cases will come to light as ethics plays catch-up with the leaps of innovation, a common occurrence when any new technology is implemented. We simply learn only from our mistakes.

The solution should come from the creators, where specific teams are created to understand the sources of data collection, the intervention required to obtain them ethically, and experts who can advise on ethical means to source data. Eventually, only AI companies can resolve this by holding themselves to the highest standards.

In the context of generative AI, who should be responsible for ensuring that AI models are trained on data that adheres to ethical standards? Should this responsibility lie with the developers, regulatory bodies, or a combination of both?

AI developers and the experts running the company should create standard practices to source data ethically and maintain transparency about it. Regulatory bodies will attempt to create laws that protect both users and the data, but the nuances of AI are ever so dynamic and vast in nature; more comprehensive laws may only be formed in hindsight of an incident. At best, the bills can emphasise transparency to avoid such circumstances.

Privacy concerns have been raised, especially in generative models. How can regulations effectively address these concerns while allowing AI technologies to innovate and develop?

Each nation is racing to create its own version of bills to curtail the privacy concerns of AI.

The EU Act has taken a risk-based approach that creates a certain level of flexibility for Generative AI companies that fall in the low-risk category.

The UK has a pro-innovation approach that creates very broad outlines of framework around AI.

China, however, one of the first countries to enact relevant legislation, has very specific rules around Generative AI.

Also Read: AI companies raised record US$50B in 2023 globally: data shows

In a nutshell, while the experts may mull over an ideal scenario to address concerns over AI technologies, globally, innovation will not be stifled by any regulatory bodies. It is a race for innovation, and regulation will only develop effectively once the winners are announced.

Ownership of content generated by AI models is a complex issue. How should this be legally addressed to ensure fair compensation and acknowledgement for human or machine creators?

The current Copyright Act of 1957 in India does not address AI-generated content or acknowledge AI as an author. An important factor determining the work’s authority is originality, which is a wrong yardstick to protect content creators/coders that aid in creating the responses. The current debate around the world is about the ethical implication of naming AI as a person to protect content rights, but the real argument should not be about protecting the tool but the creators of the tool.

Arguably, there may be some protection under the term ‘derivative works’ that qualify protection if it introduces significant alteration to the original material, with the copyright holder’s explicit permission or by using works in the public domain. Again, this is a very restrictive term for a technology with myriad use cases. A unique terminology and set of regulations is required to protect the creators and the technology enabling such intuitive solutions.

With your VC and angel investor background, how do you assess the impact of legal battles between publishers and AI companies on the investment landscape for AI startups? What considerations should investors take into account?

Historically, every innovation met with legal challenges and privacy breach incidents that created awareness about the pitfalls of it in hindsight.

As an investor, I recognise AI as a great innovation tool. Still, the VC industry outlook demands tangible growth, sound business models and, more than anything else, a promised fast track of the product’s potential to be acquired by tech giants.

The rest are minor obstacles usually resolved if the company’s potential is unfettered.

As a philanthropist, how do you envision the responsible and ethical use of AI technologies contributing to societal well-being, and what initiatives or projects should be prioritised?

AI could be a means of distribution for bringing back the age-old practices of heartfulness or compassionate mindfulness. The art of well-being was conceptualised by our ancestors thousands of years ago, and it is now a forgotten practice.

The term ‘well-being’ is misused as an elaborate scam in current times to woo the masses into buying products that claim to improve their lifestyle. Considering Generative AI is one of the biggest platforms for disseminating information to the masses, it should be used to create proper information channels about well-being and taking care of mental health.

Also Read: ‘Bringing world-class AI talent into Singapore can substantially enrich the industry’

Also, its advent was for the technology to perform mundane tasks that would free us up for more philanthropic and self-development activities. Moreover, as a philanthropist, I would also urge looking at balancing the use of AI with real human intelligence in the south side of the world where human resources would continue to be more available at cheaper rates than using AI.

Considering the global nature of AI development and deployment, do you see the need for international collaboration in establishing standards and regulations for generative AI, or do you think a more localised approach is appropriate?

International collaboration is a desired outcome but not a practical expectation in the current geopolitical scenario. High income and labour wage disparity render this technology costly compared to the cost of hiring manpower. Also, AI is at its nascent stages, and it will take years of development and hyperlocalised solutions that can replace the manpower for mundane tasks while being cost-effective.

A unified outlook and implementation will eventually emerge as the technology evolves and our understanding of it with it.

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A new survey has found that startup founders in the Philippines are pessimistic about the funding environment due to the sharp 40 per cent decline in local startup investments in 2023.

The average optimism outlook on funding opportunities scores 2.65 out of 5, according to the findings of the 2024 Philippine Startup Founders’ Outlook. The study was conducted by startup-focused communications firm Uniquecorn Strategies and market research firm The Fourth Wall.

Also Read: Book Excerpt: How chatbot threatens to upend an entire industry in the Philippines

The study paints a stark picture for Filipino startup founders heading into 2024 — a challenging funding environment and a strategic pivot towards profitability. This indicates a considerable shift in founder priorities driven by the current economic landscape.

The funding winter also influenced the lack of confidence of startup founders in their company valuations for 2024. Founders’ average valuation assessment score with their own startups stands at 2.65 out of 5, indicating expectations of lower valuations compared to 2023.

Given these conditions, 75 per cent of founders are now prioritising profitability over growth to reduce dependency on investor funding. For the next 12 months, 70 per cent have identified profitability as their top priority.

The necessity to ensure financial sustainability has forced founders to recalibrate their focus, underscoring profitability as a key objective. This is largely attributed to the dry funding climate and the short runway many startups face.

Meanwhile, improving customer experience and product development are also high on the agenda, garnering 55 per cent of responses each.

The survey, co-presented by The Fourth Wall, Bossjob, and Launchgarage, highlights that startup founders recognise two critical external factors impacting their funding prospects: the Philippines’s economic growth performance and government investment regulations.

Founders also weighed in on how helpful current government policies are for startups, rating them at 2.45 out of 5. Notably, 55 per cent say they could not identify any beneficial government policies, reflecting a negative perception of the government’s role in supporting the startup ecosystem.

Also Read: Driving financial inclusion in the Philippines: Why last-mile communities are key to winning the battle

When asked what the Philippine government could do to improve the funding environment, 70 per cent of the founders suggested an increase in investment in digital infrastructure.

Startup founders are moderately optimistic about the country’s economic prospects, with an average outlook score of 3.40 out of 5. Those who launched their startups during the COVID-19 pandemic (2019-2020) showed the least optimism. This group was particularly impacted by the economic downturns and uncertainties of the pandemic, which likely influenced their cautious outlook.

The survey also highlights the primary challenges facing founders in 2024. While profitability remains a significant concern for 55 per cent of them, raising funds is a close second at 50 per cent and 40 per cent struggle with talent acquisition. These challenges paint a picture of a startup community grappling with multiple fronts, from financial sustainability to operational growth.

Despite these challenges, there is a silver lining. A significant 55 per cent of founders expect their startups to become profitable within the next one to two years. Furthermore, 20 per cent of the respondents said they have already achieved it.

Looking towards long-term aspirations, most Filipino startup founders are setting their sights on international expansion, with 60 per cent of them particularly looking at neighbouring Southeast Asian countries as a new geographic market.

Dean Bernales, Founder and CEO of Uniquecorn Strategies, said: “While the immediate challenges in funding and valuation are evident, the founders’ focus on profitability and expansion indicates a proactive approach to navigating the complexities of the current economic climate.

The pandemic’s lingering economic impact continues to shape strategic decisions, with founders navigating a tightrope between growth aspirations and the harsh realities of funding. As 2024 unfolds, the Filipino startup ecosystem shows signs of balancing immediate pressures with long-term strategic goals,” he added.

The post Founders are pessimistic about Philippines’ funding climate in 2024: study appeared first on e27.

Dear reader,

VinFast is in top gear.

After announcing its expansion into India, the world’s second-largest electric vehicle market, the Vietnamese automotive major is all set to set its foot in Indonesia, another major EV market.

President Joko Widodo has greenlighted VinFast’s expansion into Indonesia, marking another significant milestone for VinFast.

VinFast, backed by Vingroup, plans to invest US$1.2 billion in Indonesia, allocating US$200 million for the EV manufacturing plant by 2026, targeting an annual production capacity of 30,000 to 50,000 units.

Jokowi’s commitment to facilitating investment procedures reflects a positive stance toward the EV industry’s growth in Indonesia. The collaboration between VinFast, Green and Smart Mobility, and Indonesia’s GoTo Group aims to promote four-wheel EV usage among Gojek drivers. This expansion aligns with VinFast’s global presence, including operations in the US, Canada, Germany, France, and the Netherlands, following its Nasdaq debut via a SPAC merger in August last year.

VinFast’s strategic move underscores the increasing importance of Southeast Asia in the electric vehicle market.

Sainul,
Editor.

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Grab injects US$109M more into digital banking subsidiary GXS Bank
GXS’ competitors include Sea Group’s MariBank as well as Trust Bank, which was formed through a partnership between Standard Chartered Bank and FairPrice Group; GXBank officially launched in Malaysia in November 2023.

VinFast gets greenlight from Indonesia’s Jokowi for expansion
VinFast aims to invest US$1.2B in Indonesia over the long term; This includes US$200M to build an EV manufacturing plant by 2026, with an anticipated production capacity of 30,000-50,000 units annually.

Japanese bioplastic startup Bioworks raises funding
Investors include Purpose VC, Hill Capital, 18 Salisbury Capital, and Yagi; Bioworks claims its carbon-neutral material PlaX can reduce CO2 emissions by 35% compared to polyester during yarn production.

Ex-GCash execs’ social commerce platform for collectibles Toki raises US$1.8M
Investors are Kaya Founders and Foxmont Capital Partners; Toki has featured over 70,000 products across its first four categories, onboarded 100 curated sellers and conducted 50 livestream auctions.

Mobile app spending reverses slowdown in 2023: report
According to Data.ai’s ‘State of Mobile’ report, consumer spending grew 3% to US$171B in 2023, while hours spent peaked at 5.1 trillion, a 6% year-on-year increase; In 2023, TikTok became the first non-game app to surpass US$10B in all-time consumer spending.

Google pulls Binance, other global crypto apps from India store
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Anthropic researchers find that AI models can be trained to deceive
The research team hypothesised that if they took an existing text-generating model and fine-tuned it on examples of desired behaviour and deception, then built “trigger” phrases into the model that encouraged the model to lean into its deceptive side, they could get the model to consistently behave badly.

Meet the startups graduating from Accelerating Asia’s cohort 9
The eight Accelerating Asia graduates come from six markets in Asia, including Singapore, India, Sri Lanka, Pakistan, Bangladesh, and Japan; They have received investments from Accelerating Asia Ventures Fund 2.

GameStop shuts down NFT marketplace amid crypto shift
The platform was designed to facilitate the trading and minting of non-fungible tokens, focusing on gaming-related themes; The decision follows a broader trend in the crypto industry, characterised by a substantial drop in trading volumes.

OKX Ventures leads investment in Web3 venture studio BeWater
BeWater’s Web3 venture studio focuses on supporting early-stage startups and nurturing a Web3 product ecosystem; The company said its platform has attracted over 25,000 GitHub-certified developers from more than 50 countries.

Exit Strategies: Ways to get your money back besides IPOs and M&A
The pickup in IPOs and M&A deals in the region bodes well for the possibility of high-value exits for investors.

Fundraising with a purpose: Why bootstrapper’s mindset matters
The bootstrapper’s mindset consistently proves its value, seamlessly integrating profitability, resource optimisation, and fiscal responsibility.

SEA tech founders playbook: A to Z of becoming a fundraising legend (Part 1)
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Banking’s next chapter: How DLT is taking transactions to the future
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How consumers prioritise sustainability beyond the single lens of eco-friendly products
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Women as focus of impact investment: Does it bring more harm than good?
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Understanding the role of fintech, blockchain in transitioning to net zero
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Why these startups focus on informal plastic waste workers in the fight against climate crisis
In many parts of Asia, plastic waste is commonly processed by informal workers who are part of the marginalised society.

To leverage Web3 technologies, Web2 companies may start by building the right culture
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The post Ecosystem Roundup: Grab invests US$109M into digital banking unit; VinFast to expand into Indonesia appeared first on e27.

In the rapidly evolving landscape of industrial technology, BR Tech emerges as a potential unicorn, poised to revolutionise the multi-hundred-billion-dollar industrial painting sector. Located in Ulsan, the automotive heartland of South Korea and home to Hyundai Motor, this company, led by CEO Kibaek Kam, exemplifies the transformative power of integrating traditional craftsmanship with advanced robotics and AI.

BR Tech’s journey, driven by Kam’s evolution from an automotive enthusiast to an entrepreneurial pioneer, mirrors the dynamic shift in the industry towards high-tech solutions. The company’s products, the Eco Painter — a state-of-the-art painting training simulator, and the Alpha painting robot, are at the forefront of this revolution.

The Eco Painter, utilising water instead of paint, provides a sustainable and cost-effective training solution. This innovation is particularly crucial in the current global context where there is a significant shortage of skilled painting professionals, positioning the Eco Painter as a game-changing solution to this widespread issue.

Meanwhile, the AI-powered Alpha robot is engineered to perform a variety of complex painting tasks that were traditionally only possible by highly skilled human artisans.

In this exclusive interview, we explore Kam’s entrepreneurial journey, the unique challenges and triumphs of merging traditional painting techniques with cutting-edge technology, and BR Tech’s ambitious vision.

This narrative is not just about technological innovation; it’s about seizing a major portion of a lucrative market ready for disruption and setting new benchmarks in an industry on the verge of a technological revolution.

Can you tell us a little bit about your journey to founding BR tech? What was your aha moment?

I have always been deeply passionate about automobiles, which can be traced back to my childhood. My interest was further highlighted during my university years when I won the gold prize at a domestic technical competition hosted by Hyundai and Kia Motors. This pivotal event not only showcased my affection for automobiles but also marked a significant milestone in my journey towards automotive innovation and expertise.

Now, after seven years in this entrepreneurial journey, BR Tech stands as a testament to my commitment to eco-friendly solutions. With our headquarters in Ulsan, the automotive mecca of South Korea, we specialise in battery packs and painting simulation equipment, highlighting our dedication to environmentally conscious practices. My leadership philosophy revolves around sustainable growth, increasing corporate value, and maintaining a strong focus on environmental stewardship.

What problems are you solving now?

Did you know that iconic luxury car brands like Mercedes-Benz, Rolls-Royce, and Ferrari still entrust the finishing touch of their vehicles to the skilled hands of artisans? In Korea, where the industrial coating market spans US$1.7 billion for automotive refinishing, US$4.2 billion for ship painting, and further billions in aerospace and corrosion protection, the contrast is stark. These figures, echoing the vibrancy of the Korean market, also highlight the challenges it faces: the scarcity of skilled painters and strict VOC emission regulations.

In response to these challenges, our endeavour is to bring the precision of robotics to the forefront of an industry steeped in tradition. As we pioneer this shift, we are not only addressing the immediate need for efficiency and environmental compliance but also preserving the essence of craftsmanship.

This is where technology meets tradition, ensuring that luxury vehicles — and indeed all coated surfaces — receive a finish that marries the best of both worlds. Our vision is to lead a transformative wave across Korea’s markets, proving that the future of industrial painting lies in the harmonious blend of the artisan’s touch with robotic innovation.

Are your revenue streams anchored in the sale of simulators and robots, and could you elaborate on your business model, particularly any future plans for scaling?

At BR Tech, we’re not just selling cutting-edge simulators and robots; we’re revolutionising the way small and medium-sized enterprises (SMEs) approach painting and finishing. Currently, our products are pioneering changes in educational institutions and are on the verge of transforming workflows in Hyundai Heavy Industries and global paint company training centres.

Looking ahead, our vision for scaling efficiently in the global market involves innovative models like leasing, rentals, or a rent-to-own scheme. These strategies are designed to lower entry barriers for SMEs, providing them with access to technology that was previously out of reach due to cost constraints. By 2024, with the launch of our advanced painting robots, we aim to begin pilot programs in Korean automotive refinishing shops.

Also Read: There is talent shortage in the e-motorcycle space in SEA: ION Mobility CEO

Imagine over 10,000 workshops in Korea, each with the potential to enhance their efficiency exponentially. Our robots, priced competitively against the cost of hiring even entry-level technicians, could accelerate business processes significantly. As we introduce leasing and rental options, we’re not just providing tools; we’re offering a lifeline for businesses to scale and thrive in an automated future.

With BR Tech’s bold strategies, the industry won’t just witness transformation; it will be a part of it. The future is not for sale — it’s for lease, rent, and ownership, all tailored to empower and expedite the growth of businesses big and small. Welcome to the new era of industrial innovation, where every company, regardless of size, can paint their success story with the broad strokes of automation and the fine lines of precision.

What sets Eco Painter, painting simulator and Alpha, painting robot apart from others?

In a field where precision and realism are paramount, our Eco Painter sets itself apart as a revolutionary painting simulator that operates in real space, providing a reality-based experience without the need for VR goggles. Unlike traditional simulators that create disconnection from reality, often causing discomfort and dizziness, Eco Painter utilises a proprietary 3D object display, making it the world’s first reality-based painting simulator. It enhances training realism by using water instead of actual paint and provides quantitative analysis of painting results, leveraging data on paint characteristics.

In the demonstration video of this product, water is used instead of actual paint to enhance the realism of the training. Additionally, it utilises data on paint characteristics to provide a quantitative analysis of the painting results.

Our Alpha painting robot, on the other hand, excels in its interface with technicians. It captures and processes the spray data developed by Eco Painter, efficiently transferring skilled painters’ expertise to robotic precision. Alpha addresses the automation challenges posed by the variety of paint jobs required across different substrates, which has been a barrier to technology adoption in the past.

It may not replace all painting technicians initially, but its intuitive interface allows for collaboration, gathering diverse data to refine Alpha’s AI system for optimal painting paths. Moreover, with specialised hardware optimised for painting environments, Alpha boasts cost-effectiveness unparalleled by traditional industrial painting arms. We’ve secured nine patents with ongoing applications to protect these innovations.

In summary, BR Tech is pioneering the art of painting with the precision of technology, turning the tides into a market ripe for innovation. We’re not just building machines; we’re crafting legacies of efficiency and excellence.

What is your vision for the future of BR Tech, including your key priorities?

At BR Tech, our vision centres on providing solutions through Eco Painter and Alpha in the automotive painting sector, with a broader commitment to benefiting humanity. Painting is essential across various industries, yet it poses health risks to workers and contributes to environmental pollution due to indiscriminate paint usage.

Our goal is to mitigate these issues, acknowledging that while computers and machines excel in data processing and precision, they cannot yet replicate the nuanced expertise and sensory perception of skilled human technicians.

Humans possess an incredibly sophisticated visual system, capable of seeing details as fine as 1 gigapixel, akin to the capabilities of NASA’s space observation cameras. This precision allows us to detect even minor paint flaws on new cars, sometimes leading to repair requests or vehicle rejection.

Skilled painters with even more acute vision apply their techniques in real-time, managing paint layers as thin as 10μm — finer than a strand of hair. They artfully control the angle of metallic particles in the paint to match colours perfectly, a process akin to an art form.

Also Read: Transforming tech performance: A brain-friendly growth approach

Thus, our mission is to offer solutions in areas that are challenging for both humans and robots. We aim to expand not just in the painting sector but across various industrial and everyday life domains. Our vision is a future where technology complements human skills, creating a synergy that overcomes current limitations and opens new possibilities for efficiency, safety, and environmental sustainability.

What do you see as the biggest challenges in scaling your business and taking it to the next level? Could it be skilled talents, funding, sales and marketing, or anything else you currently find lacking?

Our most significant challenge lies in bridging the technical gap between the engineers developing Eco Painter and Alpha and the painting technicians. However, we’re fortunate to have a team composed of professionals who are both passionate and skilled in both areas.

Before founding BR Tech, I worked as a BMS embedded development researcher in the ESS field, but my background is in automotive engineering, and I’ve worked as a car service engineer. I also gained experience in a car tuning shop. During my university days, my love for cars led me to paint my first car and engage in activities like engine swapping, which might seem odd to the average person.

This unique blend of experiences and skills within our team makes us uniquely positioned to address challenges in fields like painting robotics swiftly. We don’t just have the technical know-how; we have a deep understanding of the automotive world, which allows us to innovate and adapt quickly to meet market needs. So, while there are challenges in scaling any business, our team’s unique composition gives us a distinct advantage in overcoming these hurdles and propelling BR Tech to the next level.

How do you plan to transform BR Tech into an overwhelmingly dominant global leader?

Our strategy to establish BR Tech as a global leader hinges on two key aspects: rapid market penetration by solving problems faster than others and leveraging the vast data accumulated through these solutions as a significant asset. We’re focusing on quickly addressing issues that our team is uniquely equipped to solve, allowing us to gain a foothold in the market and build a robust data backbone.

A critical part of this strategy is swift global expansion. We’re exploring partnerships with global financial institutions to offer leasing, rental, or rent-to-own programs, making our solutions more accessible worldwide. This approach not only expands our market reach but also diversifies our revenue streams, strengthening our financial foundation.

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

Additionally, we’re in the process of securing our next round of investment. Our focus is not just on equity investors but also on collaborating with international financial institutions that can provide growth capital. This will bolster our capabilities to scale, innovate, and penetrate new markets, setting us on a path to become a dominant force in the global arena. Our goal is to harness our unique strengths and strategic alliances, transforming BR Tech into a name synonymous with innovation and leadership in our field.

Last September, BR Tech won the Minister of SMEs and Startups’ Award for Excellence, the top prize, at an Online Export Company IR Pitching Competition. Can you share a bit about your preparation for this event and what contributed to your success?

Yes, it was indeed an unexpected and fantastic achievement. Our participation in the event was motivated by the importance of the global market. For our team, comprised of domestic developers, pitching on a global stage was one of the most stressful challenges we’ve faced since the inception of our company.

However, a serendipitous encounter with David Kim, a global startup coaching expert from Open C, changed our course. His guidance and assistance in crafting our pitch deck played a pivotal role in our success.

This experience underlined a valuable lesson that life is a series of fortuitous events. Winning this prestigious award not only validated our hard work and innovative approach but also reinforced the belief that with the right guidance and preparation, even the most daunting challenges can be overcome. This recognition has fueled our drive to continue pushing boundaries and striving for excellence in the global arena.

Could you elaborate more on BR Tech’s vision and priorities? Also, what are the biggest challenges you currently face in expanding and elevating your business, and how are you addressing them?

As an engineer-turned-entrepreneur, my vision for BR Tech has always been rooted in the belief that the technologies we aspire to implement are not just necessary but crucial for the market. This belief sometimes led to quick, perhaps premature, decisions about the company’s direction. It’s a common scenario many startups face.

However, I’ve learned that introducing a necessary innovation to the market and establishing it as a universal part of the industry’s culture is an even more formidable task than developing the technology itself. It requires not just technical prowess but a more strategic approach backed by substantial capital and collaboration with diverse partners.

To address these challenges, we are focusing on building strong market awareness and educating potential users about the benefits and applications of our products. We are also strategically aligning with key industry players and seeking collaborations that can help integrate our technologies into the existing market framework.

Additionally, we are constantly refining our business model to ensure it is robust and adaptable to the changing market dynamics. This includes exploring innovative financing options like leasing and rentals, which can make our technology more accessible to a wider range of customers.

In summary, our journey is about marrying technological innovation with strategic market integration. We’re not just creating cutting-edge products; we’re shaping an ecosystem where these innovations become integral to the industry’s growth and sustainability.

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The post BR Tech: A next unicorn transforming the global industrial painting landscape appeared first on e27.

Singapore’s home-grown startup FlyORO, a provider of last-mile sustainable aviation fuels (SAF) blending technologies, recently completed its US$1.6 pre-Series A investment round with Audacy Ventures, Investible and several undisclosed investors.

The primary plan is to spread its wings to new international markets, such as Australia and the US.

In this Q&A, FlyORO’s Co-Founder and Head of Marketing and PR, Genevieve Toh, discusses how FlyORO is navigating regulatory landscapes, its upcoming Series A financing, Australian market collaboration plans, and the impact of FlyORO’s on-demand blending service on ESG targets.

Edited excerpts:

Can you elaborate on FlyORO’s strategy for international expansion, particularly in Australia and the US, and how the funding from the pre-Series A round will support these initiatives?

In our pursuit of international expansion, FlyORO has outlined a targeted strategy primarily focusing on Australia and the US in 2024. The objective is strategically identifying blending hubs or locations in these countries, ensuring convenient access for flyers to SAF blending capabilities. 

Also Read: FlyORO secures US$1.6M in pre-Series A round to reduce flight emissions

The pre-Series A capital will be allocated to critical business activities that form the backbone of our international presence. A significant portion will be invested in manufacturing our cutting-edge AlphaLite product, designed to meet the evolving needs of the aviation industry. 

AlphaLite empowers aircraft operators to make better-informed decisions regarding SAF adoption, considering factors from cost parity to feedstock quality.

A substantial portion of the funding will also be used for team expansion, which will empower us to support existing project developments and actively cultivate new partnerships.

How does FlyORO collaborate with its investors, particularly Audacy Ventures and Investible, to leverage their expertise and support for your growth plans and technological advancements?

FlyORO’s collaboration with Audacy Ventures and Investible is structured around corporate networking and building a sustainable aviation ecosystem.

1. Corporate network: Through collaborative efforts, we leverage their market expertise, tapping into their extensive industry networks, to work closely with the relevant advocates and critical decision-makers.

2. Building a sustainable aviation ecosystem: Together, we aim to build a comprehensive and interconnected sustainable aviation ecosystem. We foster collaborative innovation by harnessing their experience and leveraging their existing portfolio, including startups with cross-industry expertise. This enhances FlyORO’s technological advancements and contributes to developing holistic solutions for the aviation industry.

How has the collaboration with Jet Aviation, leading to the launch of AlphaLite in April 2023, impacted FlyORO’s positioning in the aviation industry, and what milestones have been achieved since then?

Jet Aviation, as a renowned business aviation provider, has showcased the capabilities of FlyORO’s solution to the industry. This partnership has positioned the SAF industry with new opportunities for SAF adoption.

Also Read: The Capture app enables you to track, reduce and offset carbon emissions from everyday life

Since the launch of AlphaLite in April 2023, FlyORO has worked closely with Jet Aviation in its sustainability developments and ventured into the commercial aviation sector. These include engagements with other industry players, furthering the adoption of sustainable practices and contributing to the broader mission of reducing the carbon footprint in aviation.

How does FlyORO navigate and leverage the regulatory landscape in Singapore and its target markets, especially in Australia and the US, to facilitate the adoption of SAF?

We leverage the insights and experiences gained during the Singapore launch and our team of trusted senior industry advisors, enabling our engineering team to be better equipped to handle similar challenges in other regions. Although regulatory frameworks may differ across organisations and countries, the procedural aspects share substantial similarities in ensuring the highest quality and safety standards.

FlyORO plans to commence the next financing round in H2 2024. How much do you intend to raise? What are the key objectives and milestones that you aim to achieve with the upcoming financing round?

FlyORO plans to scale both hardware and software refinements. This includes further development and enhancement of the AlphaLite product and advancements in the technology infrastructure supporting its sustainable aviation solutions.

Given the Australian market’s focus on developing a local SAF production facility, does FlyORO have plans to collaborate or establish partnerships with local entities to enhance the production and distribution of sustainable aviation fuels in the region?

While maintaining our focus on accelerating SAF adoption on a global scale, FlyORO recognises the significance of Australia’s vast natural resources. As part of our mission, we intend to establish partnerships with local entities involved in SAF production. This approach extends to working closely with producers utilising different feedstocks, operating in diverse locations, and employing various production pathways.

By forging alliances with local producers, we aim to maximise supply chain efficiencies and contribute to the Australian market’s growth and sustainability of the SAF industry. 

How does FlyORO’s on-demand blending service contribute to the aviation industry’s broader goals in terms of environmental, social, and governance (ESG) targets, and what impact does it have on individual flight emissions reduction?

FlyORO’s innovative on-demand blending technology has multifaceted impacts at the industry level and on individual flight emissions reduction.

In the commercial aviation sector, we support both the Book & Claim and Mass Balancing approaches, depending on the characteristics of the market. This empowers flyers to offset their carbon emissions using SAF voluntarily, and we consolidate these demands through our blending hubs. By facilitating this voluntary adoption of SAF, FlyORO contributes to reducing overall carbon footprints in the aviation industry.

FlyORO’s on-demand blending service offers a unique business and general aviation advantage. Flyers, both individuals and corporates can decide their SAF adoption ratio, allowing for a more individualised approach to emissions reduction. This flexibility empowers flyers to reduce their carbon footprint and meet their ESG targets proactively.

Can you share insights into any upcoming innovations or advancements in FlyORO’s technology roadmap, especially with regard to modular SAF blending services?

One of FlyORO’s key objectives is to enhance blending efficiencies as a technological enabler. The modularity of the technology allows our solution to fit at any point of the supply chain. This includes streamlining and optimising the SAF supply chain to make the blending process more efficient, cost-effective, and scalable. Improving efficiencies contributes to a more sustainable and economically viable SAF production model.

Also Read: FlyORO wants to decarbonise aviation with its last-mile sustainable fuel blending tech

FlyORO also aims to play a pivotal role in advancing the adoption of higher blends of SAF. This involves pushing the boundaries of SAF usage to achieve higher concentrations in synthetic blend components, contributing to more substantial reductions in carbon emissions.

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Image Credit: FlyORO

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HashKey Group, an end-to-end digital asset financial services group based in Hong Kong, has completed a Series A financing round of nearly US$100 million at a pre-money valuation of over US$1.2 billion.

The round attracted new and existing investors, including prominent institutional investors, leading Web3 institutions, and strategic partners.

Also Read: Exploring blockchain’s potential impact on the education sector

The group will use the money to accelerate the product diversification of its licensed business in Hong Kong and drive development globally.

Established in 2018 and with operations in Singapore and Tokyo, HashKey Group provides innovative investment opportunities and end-to-end solutions in digital assets and the Web3 ecosystem to retail investors, large institutions, family offices, funds, and professional and accredited investors.

Its core businesses also include a global asset manager investing exclusively in blockchain technology and digital assets, a blockchain node validation service, tokenisation services, Web3 PFP incubation, and community operation services.

Also Read: How the blockchain could change the way the government works

In 2023, HashKey Exchange launched a licensed virtual asset exchange app in Hong Kong. It now has over 155,000 registered users, with a daily average trading volume of US$630 million. HashKey Exchange has also established strategic partnerships with over ten brokerage firms and six publicly listed companies.

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In October 2023, venture capital firm 500 Global released a report on the global internet industry. It revealed notable information that included the prospect of the Southeast Asian (SEA) tech startup ecosystem in the near future.

According to the report, Singapore (31.82 per cent) is the only Rise Economy that has ranked higher than the US (12.79 per cent) in the total value of tech companies valued at US$1 billion and above by nominal GDP.

In fact, in 2022, Singapore (2.12 per cent) and Israel (1.95 per cent) were the only two Rise Economies with venture penetration higher than that in the US (0.99 per cent) by nominal GDP.

Responding to this information, 500 Global Partner Saemin Ahn revealed the potential challenges that the SEA startup ecosystem might face in the next years as it attempts to grow its startups further.

“On the startup side, you’ll need founders that can build more traditionally durable companies who understand how to lead their team to drive profitability and innovation,” Ahn said.

Also Read: Meet the startups graduating from Accelerating Asia’s cohort 9

“On the investor side, you’ll need more sophisticated investors, especially at the growth stage, that can guide companies that may have their internal mechanics worked out but require more pragmatic advice on successful business models.”

When asked about any unique opportunity in SEA, Ahn put emphasis on the rise of agritech. How can local and global investors tap into these opportunities?

“I think SEA has the great benefit of having industry-leading business models and management teams in the field of agritech. It is a vertical we are very bullish about, not only because of the macros but also from the business momentum our founders are gaining and observing.”

Business as usual for 500 Global

On the matter of funding winter that has “cast a shadow” in the global startup ecosystem for a while now, 500 Global believes that this is a time of opportunity that allows investors to identify undervalued startups with strong fundamentals.

As pressure for startups to build a sustainable business heightens, how will this funding winter change how the startup ecosystem operates?

Also Read: Singapore’s Purpose VC invests in Japanese bioplastic startup Bioworks

“It will make companies more resilient. The cycle is inevitable and leads to different vintages of startups growing and maturing with unique strengths and weaknesses,” Ahn said.

Another highlight of the report is the emphasis on the more globalised nature of startup ecosystems.

“While global startup activity is becoming more global, with more than 100 countries having active startup ecosystems, global unicorn activity is also becoming more global, with more than 50 countries having minted at least one unicorn,” the report stated.

“While the Rise 30 are nascent venture capital markets with an increasing venture funding gap, they are expected to surpass each of the US and China by GDP by 2027.”

As startup activity becomes more global, what policy can help support this development?

“I think policymakers can be more effective by looking regionally,” Ahn said.

Also Read: HashKey Group secures US$100M in Series A financing, turns unicorn

“For instance, improving the tax code in Indonesia for overseas and local talent while enabling more work passes across SEA will set the region at parity with great tech hubs around the world.”

For 500 Global itself, changes in global startup trends do not affect its strategy significantly, with Ahn stating that things will be “business as usual.”

“We will still continue to look for great founders and companies regardless of where they are based, then work tirelessly to support their growth.”

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Image Credit: RunwayML

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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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