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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Logistics and supply chains, overseen by supply chain management, involve numerous stakeholders and span international borders. Effective operational planning and coordination are crucial for timely product delivery, influencing quality, pricing, and customer satisfaction. The global trade value was estimated at a record $32 trillion in 2022, expected to grow by 0.8% in 2023, driven by the exponential rise in e-commerce post-COVID-19.

Local businesses contribute to this economic surge, empowering the local market and integrating into the global supply chain despite barriers that hinder SMEs from exploring business growth. To overcome these challenges and empower SMEs, efficient logistic solutions are crucial, facilitating seamless operations and connecting businesses with customers globally.

Empowering SMEs through efficient logistic solutions with Lalamove

Lalamove is an on-demand delivery platform which provides affordable and reliable delivery services to customers globally. Currently, Lalamove operates in 11 markets across Asia and Latin America. Through dedicated mobile and web apps, Lalamove seamlessly connects users and driver partners to move things that matter.

Lalamove’s unique selling points lie in its wide variety of fleets ranging from motorcycles to cars, to MPVs, and a variety of vans and lorries, which allow customers to choose the most suitable vehicles depending on their needs. Hence, customers can save costs without compromising service. Additionally, Lalamove offers value for money with no hidden costs through its pay-as-you-grow model where users only pay for what they need rather than for services that they may not use. The company offers a competitive fare matrix, charging fares as little as SG$26 for van deliveries, making it an affordable option when compared with other providers in the market.

Also read: StartupIN by Ingenico: A guide to in-store commerce success

Moreover, Lalamove can arrange deliveries instantly to accommodate customers’ urgent requirements. Users are also able to schedule orders in advance to accommodate the high volume of orders and align inventory levels with customer demand. This in turn would help optimise efficiency and productivity while saving costs. Users can then explore tracking updates conveniently with the mobile or web app, and businesses can integrate Lalamove’s API with their e-commerce platform to further accelerate the order placement and delivery process.

By taking advantage of Lalamove’s last-mile on-demand or scheduled deliveries, companies can adapt to evolving consumer needs and ultimately foster brand loyalty. Businesses can cut high operating costs and fixed overheads including vehicle purchases and human resource payment by working with Lalamove as a partner. This consequently makes it possible for forward-thinking e-commerce businesses aiming to operate throughout the region to build and scale their operations more quickly.

In addition, businesses that have very specific needs can tap into Lalamove’s customised delivery solutions to create tailor-made services that address their specific needs according to their unique business model. These customised solutions offer a slew of options and models that can be modified, giving merchants the added advantage of fixed contract pricing, a trained driver fleet, flexible delivery procedures, and dedicated operation and account management support.

Lalamove’s platform also boasts a seamless customer service support experience where its dedicated team of professionals and well-trained customer service specialists can provide support for all business delivery needs and inquiries, which gives them an advantage over businesses that use other third-party logistic partners that lack the same level of customer support service.

Success stories with Lalamove in Asia

Since its establishment in 2013, Lalamove has supported the expansion and internationalisation process of businesses in various industries including e-commerce, retail, wholesale, events, and F&B. For example, Lalamove has successfully cooperated with various partners including Elitez FMCG, a fast-growing activation and events company based in Singapore.

By switching to Lalamove, Elitez FMCG resolved its manpower challenges and now enjoys cost-effective delivery services, on-demand flexibility, and quick and reliable multi-stop services to manage its business better. In addition to this, Lalamove supports ad-hoc deliveries whereas other logistic companies fail to deliver on their end, resulting in month-on-month business growth for Elitez as illustrated by the fact that the company’s orders have grown 8 folds in just 5 months.

Also read: e27 launches Startup Ecosystem Roundups for 2023

Since 2013, Lalamove has facilitated business expansion across industries like e-commerce, retail, wholesale, events, and F&B across different parts of the region. For instance, in the Philippines, Lalamove successfully partnered with Le Sucré Lab Chocolates, boosting their daily orders from a dozen to 200-300 through Lalamove’s Purchase Service. This resulted in increased revenue and nationwide brand awareness for Le Sucré Lab Chocolates. The efficient logistics and customer service provided by Lalamove allowed the dessert business to concentrate on creating delicious treats, while customers enjoyed convenient on-demand delivery services. 

More awaiting opportunities for Lalamove this 2024

The Chinese New Year season imposes a significant strain on logistics networks due to heightened demand for the movement of goods and products. Companies need to plan meticulously to handle increased order volumes, ensuring that products are stocked and delivered promptly despite potential disruptions in the supply chain.

Lalamove continues to invest in technological innovation to introduce more advanced features to enhance user experience and help SMEs save even more. This includes providing various vehicles, route optimisation features, multi-stop delivery features, and purchase services. Lalamove is working hard to double down on its services to accommodate the increasing demand during the Chinese New Year season and all related festivities surrounding the holiday.

Also read: Qarbotech named winner of inaugural EQT Impact Challenge

More broadly, the logistics industry faces the challenge of maintaining seamless operations to meet the escalating demands of businesses and consumers alike, illustrating the crucial role it plays in facilitating the smooth flow of goods during this celebratory season.

To meet these demands, Lalamove has implemented several measures such as expanding its delivery fleet, introducing new solutions, and collaborating with local merchants for better coverage, effectively empowering SMEs and preempting opportunities to leverage and challenges to address in 2024.

In addition, Lalamove will be launching a special CNY promotion where users can sign up to get 30% off their deliveries by using the code LALAHUAT. This special promotion will provide discounts for new users that use Lalamove during the peak season or need last-minute deliveries throughout the Chinese New Year season. 

Empower your business today by partnering with Lalamove. For more information, please visit here. #ChiongWithLalamove

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This article is produced by the e27 team, sponsored by Lalamove

We can share your story at e27, too. Engage the Southeast Asian tech ecosystem by bringing your story to the world. Visit us at e27.co/advertise to get started.

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Starting an e-commerce brand has never been easier; anyone with a product to sell can have a Shopify or Woocommerce shop running within a few hours. Yet, it’s never been harder to actually grow and scale. You must find your customers on multiple channels and take orders from them on multiple platforms.

As an e-commerce owner, it’s no longer enough just to have your own website. On average, one brand needs 10-12 tools to run its business with thousands of data points to parse through. Add the backdrop of rising interest rates, inflation, and customer sophistication, which have increased customer acquisition costs (CAC); it becomes a vicious cycle where the odds may feel against you as an e-commerce owner. 

Enter AI. 

AI is an enabler that can help solve a number of pain points and help reduce resource and time constraints for young D2C brands. Here are a few successful use cases for implementing AI for your e-commerce brand. 

Using AI to parse and provide actionable insights

New e-commerce brands today are overloaded with data. It is a whole lot of noise. With CAC as high as in the US$100s per customer and customers spending less but expecting more, leveraging data to find the right customers and deliver targeted and effective marketing campaigns is even more important today.

You can connect your most-used data sources such as Shopify, WooCommerce, Meta Ads, Google Ads, Klaviyo, and Google Analytics so the AI can run different growth scenarios and analyses within seconds using your data but also comparing it against reasonable benchmarks for brands like yours.

This allows the AI to predict areas of focus where you are likelier to grow and succeed and customers better suited for you. It can then provide actionable insights in those areas, utilising a database of tactics prioritised on factors such as estimated uplift, effort required, and other factors based on your brand and industry. 

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

The other thing to note is that customer personas are no longer about demographics; for example, creating campaigns based on age and socio-demographics. We are now shifting to indexing more on the use case, e.g., what am I buying this product for? That can span different types of people or personas.

For example, one of the brands we work with is a skincare anti-ageing brand. This product may seem geared toward a slightly older demographic on paper. It would be very easy to come up with a traditional marketing segmentation (e.g., female, ages 35 to 54 years old, etc.) and launch an ad campaign based on that segmentation. 

With the predictive capabilities of AI, we found that younger age groups  (e.g., 25-30-year-olds) would likely be keen to use the skincare brand for preventative care, and the same group was also interested in pop culture and celebrities. The AI can then prescribe to target 25-30-year-olds and develop an ad campaign and creatives that touch on today’s pop culture trends. 

Using AI to find the right customers: Your ‘better’ customer

A common question brand owners ask is, “Where can I find more of my better customers or the right customers?” AI can help you build a profile of your ‘better’ customers, i.e., customers who will buy, stick around, and ultimately, be profitable.

AI can produce such a  customer profile. AI can tell you what they look like, what they are likelier to purchase now and in the future, and where they could potentially come from.  It can actively trawl and look at available channels to access customers, social media sites, affiliate marketing players, and other marketplaces. The result is that it will tell you that “your ‘better’ customer looks like this type of person, and you can find them in these places.”  

For example, for one of our organic food brand customers, the Needle AI figured out similar interests that the ‘better’ customers of this brand might favour, such as holistic health and home gardening. The AI recommended a prospecting campaign using interest targeting on Google Ad platforms, and they saw a return on ad spend of 8x instead of their usual 2x. 

Using AI to increase customer stickiness

Retention is a pain point for most brand owners. Assuming you have a good product, theoretically, getting the customer through the door is more expensive, though it should be cheaper the second or third time around, and that’s where your profits come in.

Also Read: How express delivery services can become a key differentiator for e-commerce businesses

But, the challenge lies in getting the better product in front of an existing customer at a better time while wading through all the noise that we’re all typically bombarded with from all angles. 

With the predictive abilities of AI, it can develop a view of what customers are currently primed for another purchase from your brand, what product they are likely to buy next, and what channel is best to reach them with. 

At Needle, one of our brands provides fashion accessories worldwide to women in urban areas. It predicted the likely products existing customers would return and purchase the second time and within how many days of their first purchase. It recommended they set up an automated campaign that sends an email to existing customers after their first purchase of specific products.

The email was among their highest converting ones (converting 70 per cent higher than their average email), generating thousands of dollars of monthly revenue in “set and forget” mode. 

AI can help you do more with less

Velocity matters when scaling a D2C e-commerce brand, and success is about the number of smart bets you can take quickly. As a brand owner, you are in the business of gambling whether you know it or not (note: we do not endorse actual gambling!). Your ultimate success ultimately correlates with how many smart bets you can take as quickly as possible. The AI technology being developed today allows you to take these kinds of bets. 

At the same time, young D2C brands are often resource-constrained — with the founder wearing multiple hats. Using AI, we’ve seen the output in terms of the execution of a team three or four times their size. All this allows you to take a higher volume of smarter bets, giving you a higher chance of success and defying the odds. 

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Asia Partners, a Singapore-based growth equity investment firm, has announced the final close of its second fund at US$474 million in commitments.

The Limited Partners in the fund include institutional Partners’s family offices and individual investors across six continents. Returning investors include the International Development Finance Corporation (IDFC) and Financial Investments Corporation (FIC) from the US, and the Deutsche Investitions — und Entwicklungsgesellschaft (DEG) from Germany and Generation Capital from Canada. More than 9 per cent of Fund II’s capital is from Asia Partners’s employees and Advisory Board members.

Also Read: Asia Partners’s maiden fund hits final close at US$384M

Asia Partners II typically invests between US$20 million and US$100 million. The fund is 23 per cent larger than the inaugural US$384 million, which completed its final close in March 2021.

With the final close of Fund II, Asia Partners has reached US$1 billion in assets under management.

Asia Partners is focused on the intersection of three key themes:

1) the long-term growth potential of Southeast Asia, a region with almost 10 per cent of the world’s population, and Southeast Asia’s increasing economic connectivity to the rest of Asia and the world,

2) the rapid growth of innovative technology and technology-enabled businesses in the region, many of which are platforms with pan-regional or global aspirations,

3) the scarcity of growth equity capital for these companies, particularly in the US$20 million to US$100 million investment size range, often described as the ‘Series C/D Gap’ between early-stage VC and the public capital markets.

Oliver M. Rippel, a Partner of the firm and a member of the Investment Committee, said: “We continue to believe this decade will be a golden age of entrepreneurship and innovation for Southeast Asia.”

Also Read: With just US$108M raised, December was the least funded month in 2023: Tracxn

The Asia Partners Advisory Board is chaired by Hsieh Fu Hua, the former CEO of the Singapore Exchange, the co-founder of the PrimePartners Group, and the Chairman of the National University of Singapore.

“Southeast Asia is highly strategic for international investors, given its importance in global trade, supply chain management, rising affluence and the increasing digitisation of daily life,” said Hsieh. “Opportunities abound for our regional economies to be transformed by the combination of entrepreneurial innovation and growth equity.”

In 2022, Asia Partners led the US$80 million Series F funding round of ShopBack and joined the US$38.8 million Series C round of Doctor Anywhere.

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Staying compliant and out of the legal line of fire is no easy task for HR teams these days. It seems like as soon as we get a handle on existing regulations, new rules and mandates come at us from all directions. It’s a full-time job, just keeping up!

But, staying agile and informed on compliance issues is mission-critical. When laws change overnight, we need to be ready to pivot our policies and practices to align. In this article, we’ll review three rapidly emerging compliance areas that every HR professional should have on their radar:

• The drive for pay equity and compensation transparency
• Evolving training regulations and requirements
• AI ethics and keeping personal data private
  

By getting up to speed on these topics, we can transform compliance from a necessary evil into an opportunity to improve our organisations. Knowledge and preparation are key to not just reacting to but proactively shaping the regulatory environment.

So, let’s dive in and arm ourselves with the information needed to keep our companies and colleagues safe. The compliance landscape may be ever-changing, but if we stick together and stay vigilant, we can build an HR function that’s ready for anything.

Pay equity and transparency

Pay transparency and equity have become front-and-centre compliance issues that companies can no longer afford to ignore. Inequitable compensation exposes organisations to substantial legal risks and reputation damage. But beyond just mitigating problems, addressing pay gaps represents an opportunity to build a more just, motivated and productive workplace.

The gender (and racial) wage gaps remain persistent problems despite growing societal focus. And employees have increasing access to pay data, whether through voluntary company disclosures or anonymous sharing on sites like Glassdoor. This transparency places growing pressure on organisations to take meaningful action if inequities exist.

Also Read: Thriving under pressure: Navigating tech teams through stress

As stewards of company culture, HR is well positioned to spearhead the charge on pay fairness. This starts with auditing and analysing current pay practices to uncover any biases or imbalances. Comparing roles, experience levels, and performance rather than relying on compensation history can surface gaps.

Once identified, develop an action plan to address deficiencies and communicate changes transparently. Work with executives and managers to align pay with equitable principles, not just market forces. Embracing transparency and leading with your values in this emerging climate is key. While complex, confronting pay inequity builds trust, engagement, and opportunity. Leaning into this issue positions HR to cultivate a truly fair workplace.

Training compliance concerns

Implementing effective training on critical topics like harassment and safety is so important, but we’ve also gotta be thoughtful to avoid compliance pitfalls that can accompany these programs.

Obviously, we need to ensure all training adheres to relevant state and federal regulations – no shortcuts there. Recording sessions can be risky, too; it’s key to get consent where required and have ironclad data security.

Active shooter preparation brings up sobering realities, but properly training staff to handle emergencies shows the duty of care and just makes sense legally if, heaven forbid, an incident did occur someday.

Detailed training records are crucial, too — auditors will want proof that every employee completed each mandatory program. But we can’t let vital training become a checkbox exercise either. Creative formats, ongoing refreshers, and engagement opportunities will help the lessons really sink in and shape workplace culture.

If we plan carefully and approach compliance requirements strategically, we can provide necessary training while avoiding disengaged learners or legal snags down the road. Let’s use these opportunities to educate, empower, and build workplace culture.

AI and emerging technologies

The rise of AI and automation tools certainly holds promise for advancing HR capabilities. Recruiting chatbots, predictive analytics, algorithmic bias detection — these innovations appeal to any HR professional focused on efficiency and insight. However, for all their potential benefits, these emerging technologies also introduce new ethical and legal complications that must be addressed responsibly.

Full transparency is needed on how AI systems are designed and deployed in order to safeguard against issues like unfair bias or over-automation. Extensive testing and validation should be required before the full launch of any AI technology. Additionally, clear human oversight and opt-out provisions may be prudent to maintain accountability.

Heightened data privacy considerations arise as well in our increasingly digitised HR landscape. Careful audits on what types of employee data are being collected, analysed and retained by AI systems are called for. Access should be tightly controlled on a need-to-know basis, with anonymisation used where suitable. Timely and secure data deletion is a must once useful life has expired.

With diligent cross-functional collaboration between HR, legal and IT, it is possible to navigate these challenges successfully. The tremendous potential of emerging technologies can be harnessed in an ethical manner by laying the proper foundations of transparency, testing and oversight first. Though risks exist, the possibilities for advancing human resources through AI remain bright.

Closing thoughts

The road ahead will probably throw some curveballs as regulations and technologies keep evolving quickly. But HR professionals have tons of power to guide companies in the right direction — not just checkbox compliance, but real justice and engagement.

Whenever some new law comes into effect, let’s look at it as an opportunity to align things with your best values. If you get creative and work together, you can turn rigid rules into launching pads for making positive changes. Compliance matters, no question. But it works best when it’s part of working towards a bigger goal that we believe in.

HR’s purpose is clear as day — champion workplaces where everyone can thrive and reach their potential. If we keep that in mind, it’s possible to navigate any twisty compliance turns down the road.

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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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In the dynamic landscape of startup ventures, the importance of financial models cannot be overstated. While it’s no surprise that VCs, especially early-stage ones, seek these models during fundraising discussions, what might be less apparent is that a robust financial model serves a greater purpose beyond attracting investment. It is, in essence, a dynamic roadmap that founders can use to navigate the intricate journey of building a successful business.

Why bother with financial models?

Path to a big opportunity

A well-constructed financial model provides VCs with insights into whether a startup’s plan leads to a substantial opportunity. It serves as a compass, guiding both founders and investors through the intricacies of the market and helping them evaluate the potential scale of the venture.

Right plan

Does the startup’s strategy align with the identified opportunity? A financial model allows VCs to scrutinise the chosen plan, assessing its viability and coherence with the overarching business objectives. It becomes a tool to ensure that the startup’s strategic decisions are aligned with its growth goals.

Likelihood of success

Beyond the conceptualisation of an opportunity and the formulation of a plan, VCs use financial models to gauge the probability of successful plan execution. This involves assessing the startup’s ability to meet key milestones, adhere to timelines, and navigate potential challenges. A well-constructed financial model offers a glimpse into the startup’s operational and execution capabilities.

Also Read: Navigating the regulatory landscape: Malaysia’s startup outlook in 2024

The form matters

A financial model is not just a collection of numbers; its presentation and structure matter. A clean, well-structured model reflects the organised thinking of the founders. Messy models, on the other hand, can detract from the professionalism of the startup. The form of the financial model is, in essence, a reflection of the startup and its leadership.

The substance reveals

Opportunity sizing

One of the key aspects VCs scrutinise is opportunity sizing. Are the revenue projections consistent with the startup’s vision? A robust financial model should articulate a clear and realistic path towards revenue generation, ensuring that the projected numbers align with the identified market opportunity.

Growth drivers

The financial model is a litmus test for the startup’s industry knowledge and understanding of its business. Does the model validate the chosen growth drivers? VCs assess whether the growth strategies proposed by the startup align with industry trends and market dynamics, ensuring that the founders have a solid grasp of what will drive success.

Plausible plan

Founders often walk a tightrope between ambition and realism. Does the financial model strike the right balance? It should demonstrate a plausible plan that is ambitious enough to attract investment but grounded in a realistic understanding of the challenges and opportunities in the market.

Execution details

The ‘how long’ and ‘how much’ are critical questions for any startup. VCs use financial models to understand the startup’s timeline for achieving milestones and the financial resources required to execute the plan. A well-constructed financial model provides clarity on the execution details, offering a roadmap for both founders and investors.

Building a great model

Format: No templates

While templates can be useful starting points, building a financial model from scratch allows founders to tailor it to the specific needs and nuances of their business. This customisation ensures that the model accurately reflects the intricacies of the startup’s operations and growth strategies.

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

Assumptions: Drivers

Clearly identifying the critical levers of the business is essential. What are the assumptions driving the financial projections? Founders should focus on the factors that truly matter and have a significant impact on the success of the venture. VCs appreciate clarity in understanding the assumptions underlying the financial model.

Logic: Growth expectations

A financial model should not just present numbers; it should tell a story of how the business grows based on its assumptions. Highlighting the relationship between growth and costs and showcasing the logic behind the numbers adds depth to the model. This transparency enables VCs to understand the rationale behind the projected financial outcomes.

Outputs: Cash is king

In the startup world, cash is king. While profitability is crucial, VCs are particularly interested in the startup’s ability to generate and manage cash. Therefore, the financial model should focus on essential cash flow metrics. Beyond EBITDA, the model should provide insights into the cash dynamics of the business. A three-year horizon is often considered ideal, offering a balance between short-term visibility and long-term strategic planning.

Key takeaway

Financial models are not mere tools for fundraising; they are powerful instruments that convey a startup’s vision, strategy, and deep understanding of its business. Whether in the context of fundraising discussions or internal strategic planning, investing the time to build a comprehensive and insightful financial model is a strategic imperative for founders.

It not only attracts potential investors but also serves as a dynamic roadmap, guiding the startup through the complexities of the market and towards sustainable growth. Ultimately, a well-constructed financial model is a testament to the startup’s commitment to excellence and its readiness to navigate the unpredictable journey of entrepreneurship.

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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

Join our e27 Telegram group, FB community, or like the e27 Facebook page

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OpenAI has been making waves across various industries for the last many years. However, since the announcement that the platform will no longer be constrained by the limitation of functioning on the data only prior to September 2021, the platform has opened up more use cases for search, enterprise solutions, advertising and brand marketing.

OpenAI can now leverage the current information available on the internet, including complete and direct links to the source. Thus expanding and powering its search capabilities even further. This announcement has had the adtech world pondering how this will propel feature enhancement, redefine search, and subsequently reverberate in the digital ad tech world. 

With direct, vast and extensive access to search data, OpenAI is opening the doors for the use of new and innovative technological solutions for advertisers and brand marketers across the world.

The introduction of browsing capabilities in ChatGPT is a significant evolution in how users interact with search engines universally. Unlike static keyword-based searching on traditional search engines, ChatGPT offers a more interactive, conversational approach to searching, which can potentially change user behaviour over time. Marketers are buzzing about this because it opens up new frontiers for advertising, and also challenges the existing paradigms of search advertising.

Also Read: Is ChatGPT taking over financial management?

From the very beginning, agencies and brand marketers have been looking at how they can use generative AI to handle everything from ad copywriting to chatbots. AI has had a major influence on out-of-home advertising, as well, with brands like McDonald’s and Burger King famously using the program to write content for billboards in South America in 2023.

Unlocking new avenues for advertisers

ChatGPT’s new search feature will extend those capabilities even further. However, it could also create headaches — at least initially — for brands and advertisers that are unwilling to adapt.

If ChatGPT’s browsing capability becomes popular and scales quickly, search-focused performance advertisers will face a crunch. Campaigns built for traditional search engines may lose traction as users shift towards more interactive, conversational search experiences. It’s a wake-up call for advertisers to adapt or risk obsolescence.

With this update, a new layer of competition and adaptation for search-focused advertisers is being introduced to the market. ChatGPT’s natural language processing capabilities enable it to understand user queries in a more conversational context, making search engines more intuitive and user-friendly.

Malek believes it’s likely that users who find conversational searches more engaging could migrate from traditional search engines to generative AI programs like ChatGPT or Google’s Bard, which would have an impact on the traffic and impressions that search campaigns see.

Advertisers will have a key role to play in any transition that takes place. 

Adapting strategies in the conversational search landscape

It will be best for the advertisers and brands to look at OpenAI’s announcement as an opportunity to innovate and diversify their strategies, first by understanding the conversational search landscape and possibly collaborating with platforms like ChatGPT to explore advertising opportunities and also by building strategies to create more interactive, conversational ad content that resonates with this new form of search.

Also Read: How ChatGPT and automation are revolutionising so-called ‘traditional’ industries

Advertisers  should also be willing to experiment, learn and iterate quickly to stay ahead in this evolving landscape. Continuous learning and adapting to how users are interacting with conversational platforms will be key to successful advertising campaigns in this new realm.

As companies continue to explore the potential, the ethical and societal implications of generative AI programs will undoubtedly become a critical point of discussion. However, it’s already become clear that ChatGPT and generative AI are here to stay, and they’re rapidly changing the way consumers across the globe search for content and interact with brands.

Observing the trajectory, it’s plausible that ChatGPT could further refine its browsing capability to provide even more precise, personalised search experiences. We might also see the integration of advertising solutions within the conversational search framework, creating new channels for brands and advertisers.

As AI and machine learning continue to evolve, the seamlessness and intelligence of conversational interactions will likely enhance, blurring the lines between human and machine interactions. This continuous evolution will only further entrench conversational search as a significant player in the digital landscape, urging advertisers to continually adapt to remain relevant and effective.

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In recent years, the financial landscape has undergone a profound transformation with the rise of digital banks. These innovative financial institutions have reshaped the way we manage our money, offering convenience, accessibility, and efficiency like never before.

However, with this technological evolution comes the imperative need for robust cybersecurity practices. As hackers become more sophisticated, the security of our digital finances becomes paramount. This article explores the burgeoning era of digital banking and emphasises the urgency for individuals and institutions to prioritise cybersecurity to protect against evolving cyber threats.

The digital banking revolution

Digital banks, also known as neobanks, have witnessed unprecedented growth, capitalising on the digital revolution to offer banking services without the need for traditional brick-and-mortar branches. These institutions leverage cutting-edge technology to provide seamless, user-friendly, and cost-effective financial solutions. From online account opening to instantaneous transactions and real-time budget tracking, digital banks have revolutionised the way we interact with our finances.

The advantages of digital banking

• Convenience: Digital banks enable users to perform various banking activities from the comfort of their homes or on the go, eliminating the need to visit physical branches.
• Cost-effectiveness: By eliminating the overhead costs associated with traditional banking infrastructure, digital banks can offer lower fees and higher interest rates on savings accounts.
• Innovation: These banks continually innovate by incorporating emerging technologies such as artificial intelligence and machine learning, providing users with personalised financial insights and services.
• Financial inclusion: Digital banks often target underserved populations, promoting financial inclusion by providing accessible banking services to individuals who may have been excluded from traditional banking systems.

Also Read: How cybersecurity teams can involve HR to optimise incident response

The cybersecurity imperative

While the benefits of digital banking are evident, the increasing prevalence of cyber threats poses a significant challenge. As hackers become more sophisticated and adept at exploiting vulnerabilities, the need for stringent cybersecurity practices cannot be overstated.

• Data protection: With digital banking, sensitive financial and personal information is stored and transmitted electronically. Implementing robust data protection measures, including encryption and secure authentication methods, is crucial to safeguard against data breaches.
• Multi-Factor Authentication (MFA): Digital banks should enforce MFA to add an extra layer of security. By requiring users to provide multiple forms of identification, the likelihood of unauthorised access is significantly reduced.
• Regular security audits: Conducting frequent security audits and vulnerability assessments is essential to identify and address potential weaknesses in the system. This proactive approach helps fortify the digital banking infrastructure against cyber threats.
• Customer education: Educating users about cybersecurity best practices is equally important. Digital bank customers should be aware of phishing attempts, the importance of strong passwords, and the potential risks associated with sharing sensitive information online.

Conclusion

The digital banking revolution presents an exciting opportunity for individuals and businesses to enhance financial efficiency and accessibility. However, this transformation also brings with it a heightened risk of cyber threats.

As we embrace the benefits of digital banking, it is crucial to prioritise cybersecurity practices to protect our financial well-being. By staying vigilant, implementing advanced security measures, and fostering a culture of cyber awareness, we can navigate the digital landscape securely and ensure a prosperous future for the world of digital finance.

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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

Join our e27 Telegram group, FB community, or like the e27 Facebook page

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