In recent years, the continent of Asia has experienced significant growth with regard to both digital and technological transformation. According to research published by McKinsey in 2020, Asia has accounted for a particularly large share of global growth in a number of key technology metrics over the last 10 years, enabling local investors to impact global markets.

Metrics of particular importance highlighted in this report include a 52 per cent share in the global growth of technology-company revenue, as well as a 43 per cent share in startup investment and a 36 per cent share in the growth of “unicorns”, reflecting the power of Asian investments worldwide.

With a growing population and an almost equally expanding middle class, both organisations and citizens across the continent have an increasing amount of spending power that may be starting to affect consumption across the globe. With China’s middle class alone rising from three to 50 per cent of the population in two decades, the potential impact of Asian investment is clear. 

However, for startups and small businesses from further afield to benefit from the growth of the Asian market, leaders must understand how to appeal to the desires of local financiers. With this in mind, here’s how cutting-edge software startups are attracting Asian investors. 

Appealing to growing commercial sectors

For startups to reliably attract Asian investors, business leaders must consider which sectors have experienced the most significant growth in the region during recent economic booms. 

For example, as of 2022, the Philippines, Singapore and Indonesia now represent the three fastest-growing e-commerce markets in the world, with respective digital sales growth levels of 25.9 per cent, 36 per cent and 34 per cent, figures far larger than the worldwide growth rate of just under 10 per cent.

Software startups either directly or tangentially related to e-commerce operations, including payment processing, cybersecurity and production scheduling software developers, can leverage their positions as facilitators of e-commerce optimisation to garner new investment.

Also Read: Operators turned investors: Navigating the shift to startup investing

Of course, the recent significant growth in Asia’s digital economy has not been limited only to e-commerce, with a wide range of technology-based sectors also seeing increasing amounts of attention from Asian investors. Two of which to note are the fintech and health-tech sectors.

Fintech and health tech investments 

With regards to the fintech sector, the digital assets market is expected to show a revenue growth of 16 per cent by 2025, with total Assets Under Management (AUM) values for the market expected to reach US$12.15 billion in 2024. For fintech startups to attract Asian investors, pivoting to the development of software associated with digital asset management may prove wise.

Analysing the health-tech sector suggests that the digital fitness and wellbeing market will likely experience the largest potential for investment in the coming years, with experts believing the market to achieve a total revenue value of just over US$2.75 billion in 2024 alone.

The recent success stories of startups involved in these industries, like Grab and Lazada, go some way to illustrating the investment potential for technology-based startups in the Asian market. Both are raising significant funds to expand existing operations in Southeast Asia.

Governmental policies and funding schemes 

The growth of the Asian economy and the increasing potential for lucrative investments in technology-based startups have not been overlooked by governments in the region. In fact, a large number of new policies and initiatives have been implemented in recent years to help startups and Asian investors better connect and establish mutually beneficial partnerships.

Of particular benefit to software startups looking to attract Asian investors are the numerous tax incentives offered by jurisdictions in the region. With many funding programs and related regulatory reforms aimed at supporting startups wishing to branch out into the Asian market. 

One such example is the Startup SG Equity scheme offered by the Singapore government. Under this program, Private Limited companies based in Singapore qualify for co-investment opportunities funded by both the Singaporean government and qualified third-party investors. 

In response to programs such as this, some software startups and IT-based companies are choosing to incorporate their businesses in countries like Singapore. So much so that data published by the Accounting and Corporate Regulatory Authority (ACRA) reveals between 3000-4000 new local and foreign companies were registered per month during 2022 alone.

In short, cutting-edge startups looking to attract Asian investors are beginning to consider the benefits of transferring core operations to Asian headquarters to secure reliable funding.

Ecosystems geared towards startup success

Another way that startups are positioning themselves to best benefit from Asian investment has to do with attracting talent in the Asia-Pacific region. In the last few years, multiple Asian countries have seen a significant increase in the number of venture capital firms operating in their jurisdictions, leading to a sharp rise in venture capital funding between 2020 and 2021.

While average funding levels may have dropped in recent years, experts believe fundraising activity will begin to increase in 2024. However, the levels of available funding at present are not necessarily the main draw for software startups seeking investment. Rather, the previous growth in Asian venture capital activity has laid a foundation for healthy startup ecosystems.

Outside of the traditionally powerful markets of North America and Europe, Asia now has the largest share of emerging startup ecosystems in the world, with figures published in 2022 suggesting that the continent holds a 16 per cent share. These emerging ecosystems have, in turn, led to a growing pool of talent in the Asian market, specifically in fields related to technology.

Also Read: How to revolutionise the banking and finance industry with Robotic Process Automation

With universities and business schools across the region investing heavily in the creation of high-level courses centred around entrepreneurship and expertise in technology-related fields, the number of driven technology professionals in the region is thought to have grown. This is good news for tech startups looking to branch out into Asia in pursuit of investments.

An increase in highly qualified and innovative professionals in the region enables foreign software startups to gain a better understanding of the Asian market, hiring on-the-ground tech leaders to spearhead expansion operations. When coupled with the aforementioned governmental schemes and incentives for basing startups in Asian countries, foreign-born companies can better attract Asian investors by transferring some operations to the region.

The future of startup investment in Asia

While some funding activity and startup growth on the Asian continent has slowed in recent years, enough groundwork has been laid to ensure the market remains attractive to software startups across the globe. With this in mind, cutting-edge entrepreneurs should continue to weigh up their options with regard to which markets represent the most value to investors.

In terms of startup scenes in particular, it currently seems jurisdictions in Southeast Asia hold the most promise for technology-based startups. Recently published figures reveal Indonesia saw an increase in its GDP by over five per cent during 2022, while Malaysia recorded growth of just under nine per cent over the same period, signalling fertile ground for investments in the coming years. 

In addition, Singapore continues to represent arguably the most promising area for startups to explore investment opportunities. In 2021, the country was said to be home to 20 startup unicorns active in the technology, e-commerce and communications industries, the most of any country in the Southeast Asian region. Furthermore, Singapore as a nation received the most venture funding per capita globally in 2023, signalling vast potential value for startups. 

Looking at the Southeast Asian region as a whole reveals a staggering wealth of investment opportunities potentially available to startups willing to explore operations in the area. While figures may have dropped slightly when compared to 2019 and 2020, startups in the region raised a total of US$17.79 billion in equity and debt funding during 2022, with fintech companies, in particular, receiving increasing levels of attention from Asian investors and financiers. 

All in all, cutting-edge software startups looking to attract Asian investors may benefit from exploring fintech, e-commerce and communications developments in the Southeast Asian region, specifically through liaison with newly established professionals in emerging markets.

In Conclusion

Healthy and attractive startup ecosystems have begun to emerge and grow across the Asian continent in recent years, coinciding with booming local economies and an increase in private spending power. These developments have led to higher levels of venture funding and an increase in government schemes aimed towards facilitating technological growth.

For both native and foreign software startups, the Southeast Asian market has quickly come to represent an attractive opportunity for growth, leading many companies to consider transferring operations to the region in search of reliable investments. In particular, fintech, e-commerce, health-tech and communications companies are geared towards Asian consumers.

For cutting-edge software startups to attract Asian investors, zeroing in on these sectors and pursuing professional relationships with native professionals may prove to be an invaluable pursuit. With venture funding expected to increase in the near future, now is the time to act.

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In the latest edition of its Southeast Asia Startup Talent Trends Report 2024, Glints and Monk’s Hill Ventures revealed that startup salaries in major Southeast Asian (SEA) tech startup ecosystems “cooled” in 2023, with junior engineering roles seeing the sharpest decline of -6 per cent.

“Despite layoffs and salaries cooling, demand for tech talent remains high across markets amid increased supply. Due to tech layoffs, the market has seen a notable increase in the availability of junior roles, particularly within engineering sectors, leading to a higher supply of candidates. This influx has resulted in a downward adjustment of salaries across various positions. However, senior talent, such as VPs of Engineering, remains competitive, highlighting the continued demand for highly skilled individuals,” the report detailed.

Most senior tech roles saw steady growth Y-o-Y, such as two to three per cent increases for senior engineer roles.

The report further revealed that business development and sales salaries spike with increases of up to 20 per cent, signifying that revenue-generating roles continue to take centre stage. The business development and sales function experienced high salary increases (+14 per cent on average for roles in Singapore), reflecting a heightened emphasis on achieving profitability in 2023.

It also spotlighted the increasing popularity of cross-border hiring, stating that 70 per cent of survey respondents plan to increase cross-border hires this year. This trend is expected to continue into 2024.

Skills diversification and cost-efficiency are some of the reasons cited for businesses to tap into hybrid work.

Also Read: Singapore Budget 2024: For startups, talents and funding remain key challenges this year

This report is the third edition that the organisations have released, taking a deep dive into hiring trends, salary and equity data for founders and C-suites, and startup talent from over 10,000 data points, 183 C-suites and founder data points, and 72 interviews with startup founders and operators across Singapore, Indonesia, Vietnam, and Taiwan.

Spotlight on AI

Previous reports on talent trends in the Asia Pacific job markets had highlighted the increasing focus on soft skills in hiring candidates. This is a trend that Glints and Monk’s Hill Ventures noted in their report.

With an increasing focus on efficiency, the founders’ immediate focus revolves around the automation of administrative tasks, content creation, and customer service, demonstrating a concerted effort to streamline overall operations.

This strategic move aligns with the regional trend where soft skills, such as critical and creative thinking, have gained prominence due to market competitiveness and the evolving AI-centric environment. Furthermore, a notable shift is observed in founders’ expectations, as proficiency in AI tools is increasingly becoming a fundamental requirement for technical and non-technical roles, akin to the ubiquity of skills such as email or Excel.

It is important to note that despite the palpable benefits of AI in boosting workplace productivity, job security remains intact, dispelling initial concerns about widespread job displacement. Founders acknowledge and understand employee apprehensions about adopting AI technologies, but the anticipated fears of significant job losses have not materialised.

Also Read: Innovation in HR: Hacking Talents’s journey in personalised professional development

According to the report, this recognition of ongoing job security reinforces the balanced approach SEA startups are adopting as they navigate the integration of AI into their operations.

“The past year’s challenges in a tightened market have highlighted a greater need for adaptability and resilience. Looking ahead, the increasing value placed on soft skills alongside technical expertise signifies a shift towards cultivating a workforce that is versatile and AI-fluent,” said Glints Co-Founder and CEO Oswald Yeo in a statement.

“When envisioning the future of work, it’s critical to seize AI opportunities while also adhering to fundamentals when it comes to hiring: attracting top talent and building cohesive, high-performing teams, regardless of how the workplace continues to evolve.”

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The first time Amazon showed me the perfect book for me via their recommendation engine, I was truly amazed. The idea that a retailer could not only recognise me as a return visitor, but also learn their interests and alter their experience accordingly, felt like magic. The secret behind this seemingly magical shopping experience? Dynamic content.

The big data revolution has transformed how marketers approach every aspect of their work, from how they design campaigns to how they measure success. At the heart of this revolution is the goal of creating genuinely personalised experiences for consumers and also measuring their results more precisely than ever before. Dynamic content is one of the primary ways companies tailor experiences for their consumers. Combined with machine learning, dynamic content enables companies of any size to create genuinely personalised experiences that are fresh, relevant, and cohesive.

What is dynamic content?

Dynamic content is a piece of content that changes based on a user’s interests, behaviour or demographic data. It is used in emails, websites, landing pages, ad units, and more. Dynamic content is a powerful way to engage with your audience meaningfully. As a business practice, it has quickly becoming table stakes.

Dynamic content can be as simple as inserting a consumer’s first name into an email subject line. For example, “Hi Jane, check out our latest products!” Even this small bit of personalisation has been shown to increase open and click-through rates.

Dynamic content through machine learning algorithms can change every part of a user’s experience. Each variation is automatically crafted for the individual consumer, and decisions are made based on the consumer’s unique tastes and interests. This type of dynamic content works best for brands with lots of customers and lots of products — E-commerce sites typically personalise this way.

All of these techniques are designed to tailor the consumer’s experience to that person’s specific interests and make it personally relevant to them, whether they’re existing customers, prospects, or first-time visitors.

Also read: Indonesian AI platform for natural language processing Bahasa.ai gets seed funding from East Ventures

The two elements of relevance

To ensure content is super-relevant for each consumer, you need two things: an understanding of (1) each consumer and (2) each product:

1. Understanding each consumer

In the Amazon era, it is essential to understand each consumer’s unique tastes and interests. How?  By creating an ‘interest graph’ for each consumer. An interest graph incorporates the full spectrum of the customer’s behaviour, including search queries, browsing activity, and purchases, instantly adjusting to the customer’s actions while incorporating prior history.

For example, someone may be searching for a party dress and a clutch handbag – an interest graph will automatically infer they may be going to a party and can recommend the perfect pair of evening shoes. The shoes may be quirky and unusual: shoes that most people wouldn’t appreciate – but they’re perfect for this specific person. An interest graph enables each customer to get personally relevant recommendations- the kind you’d get from a personal shopper who really knows your tastes, and the kind that drives real engagement.

Spotify, Pandora, and Netflix are best-of-breed examples of brands that use interest graphs.  Each builds an interest graph for every consumer, enabling them to serve a curated stream of personalised entertainment recommendations.

2. Understanding each product

The problem with existing product recommendation technologies is they don’t fully understand product attributes. They either rely on existing metatags, or there may be some simple machine learning involved, which can really miss the mark. The solution? Natural Language Processing. Natural Language Processing (NLP) is a technology that deconstructs product descriptions into tokens. In retailing, NLP deconstructs product descriptions into tokens like ‘Tommy Hilfiger’, ‘slim fitting’, ‘flare shape’, ‘shimmering’, or ‘work to evening’.

NLP is widely used across the web and powers the grammar checks used by Google Docs and Microsoft Office, as well as more sophisticated applications like Google Translate.

To show how it works, let’s use the sentence “The dog began to bark.” The word ‘bark’ can either refer to (a) the skin of a tree or (b) the sound of a dog. In that sentence, Natural Language Processing can see the word ‘bark’ is preceded by the word ‘to’ and is therefore probably a verb, and the word ‘dog’ is two words away. Based on these datapoints, NLP infers that ‘bark’ is the sound of a dog, rather than the skin of a tree.  The goal is to look beyond the words in the product description to see the actual meaning.

Why is NLP so Important to deliver dynamic content?

If you can understand the product’s attributes and the user behaviour at a deep level, this allows you to know what product attributes are valuable for each consumer, and therefore deliver a genuinely personal shopping experience. Read more about NLP here: ‘Creating Serendipity via Natural Language Processing’.

Creating dynamic content

Now that we’ve seen how dynamic content works, what does it look like in practice?

• Individualised communications. Whether as emails, ads, or some other channel the ability to communicate with each consumer on a 1:1 basis is a great way to boost revenues and engagement.
• Targeted recommendations. For retailers and e-commerce brands, this can mean offering recommendations based on a combination of personal tastes and observed behaviour.
• Customising landing pages. You can create curated landing pages based on the keywords and ads that brought the consumer to your site. Did someone reach your website by searching for “evening dress”? If you know them already, you can make sure the first thing they reach is a custom landing page that showcases dresses that matches their unique tastes and interests within the occasion wear genre. A system that offers 1:1personalisation can allow you to create billions of landing page permutations.

Already, 35% of what consumers buy on Amazon and 75% of what they watch on Netflix comes from product recommendations based on personalisation algorithms.

Also read: 4 ways artificial intelligence is innovating e-commerce

Conclusion

As retailers adapt to the ever-changing technology landscape the need to adopt new models has become really clear. To stay ahead of the curve – and perhaps to stay in business – retailers must not only pay attention to evolving consumer preferences but anticipate them and ‘surprise and delight’ with an infinite stream of fresh and relevant content.

The trends that will most affect the retail industry’s future are evident, and the requirements are clear. The time to act is now. Retailers that act now will be the winners when the next chapter of retailing history is written.

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This article was originally published on the Mercanto blog.

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This post was first published on January 29, 2019

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The year 2023 marked a stark reality check for Singapore, where scam victims collectively suffered staggering losses amounting to SG$651.8 (US$485.80) million. This figure not only represents a record high but also underscores the alarming frequency of cyberattacks plaguing both individuals and businesses alike.

With over 46,000 reported cases, the statistics paint a concerning picture, indicating that approximately one per cent of the Singaporean population fell victim to these malicious activities. Such pervasive threats extend beyond the realm of personal vulnerabilities to pose significant risks for businesses, especially those with a sizable workforce.

Consider this: if your company employs more than 100 individuals, the probability of having at least one vulnerable employee is virtually inevitable. This sobering reality compels business leaders to confront a harsh truth — it’s not a matter of if their company will experience a breach, but rather when it will occur.

The increasing prevalence of cyberattacks underscores the critical importance of robust cybersecurity measures for businesses of all sizes. In an era where technology permeates every aspect of modern commerce, the stakes have never been higher.

Cybercriminals employ sophisticated tactics, exploiting vulnerabilities in networks, systems, and human behaviour to gain unauthorised access to sensitive data and wreak havoc on organisations. From ransomware attacks that encrypt crucial files and demand exorbitant sums for their release to phishing schemes that trick unsuspecting employees into divulging confidential information, the methods employed by cyber adversaries are as diverse as they are nefarious.

The ramifications of a successful cyberattack can be catastrophic, extending far beyond immediate financial losses. The reputational damage inflicted on businesses can erode customer trust and confidence, leading to long-term consequences that are often irreparable.

Also Read: How an AI cybersecurity company harnesses the power of AI for optimal business performance

Moreover, regulatory bodies are increasingly imposing stringent compliance requirements, mandating organisations to adhere to rigorous data protection standards or face severe penalties for non-compliance. In this hyper-connected digital landscape, the ripple effects of a cybersecurity breach reverberate throughout the entire business ecosystem, impacting partners, suppliers, and customers alike.

Recognising the evolving nature of cyber threats, businesses must adopt a proactive approach to cybersecurity to mitigate risks effectively. This entails investing in robust technologies, implementing comprehensive security protocols, and fostering a culture of cybersecurity awareness among employees.

From deploying advanced intrusion detection systems and firewalls to conducting regular security audits and employee training sessions, organisations must take a multi-faceted approach to fortify their defences against cyber threats.

Moreover, collaboration and information sharing within the business community are paramount in the fight against cybercrime. By pooling resources, expertise, and threat intelligence, businesses can collectively enhance their cybersecurity posture and stay one step ahead of malicious actors.

In conclusion, the escalating risk of cyberattacks underscores the imperative for businesses to prioritise cybersecurity as a strategic imperative. As the digital landscape continues to evolve, organisations must remain vigilant, adaptive, and resilient in the face of emerging threats.

By investing in robust cybersecurity measures, fostering a culture of vigilance, and embracing collaborative partnerships, businesses can safeguard their assets, protect their reputation, and ensure long-term viability in an increasingly hostile cyber environment.

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“We do not learn from experience… we learn from reflecting on experience.”

– John Doerr, author Measure What Matters.

If you are a founder, CXO, HR leader, or a venture partner, you are sure to have come across Objectives and Key Results (OKRs) and highly unlikely that you would ignore it. You probably may be thinking about the benefits of this superbly powerful framework, that when implemented well, can supercharge your growth strategy. At the same time, you may be wondering how to get started.

The good news, OKRs can magically seep into accelerating your business growth, without having another on the ‘To Do’ list. However, what it does need is baselining understanding on OKRs, crafting it right, discipline, focus and cadence not only among leaders but also your teams.

And, a great way to move from knowing OKRs to actually doing or practicing OKRs, is through OKR pilots!

All about OKRs

OKRs is a strategy execution framework, which requires an ongoing cadence, to pick measures that matter most to propel the organisation forward. OKRs forces teams to think about how to drive change, growth or innovation. Something is a variation of what or how we are currently doing.

Objectives are qualitative statements that give clarity on ‘What would we like to achieve?’ They must have business value.

Key results define ‘how we are going to measure success?’. They’re outcome-driven, measurable and stand the ‘Stretch Test’.

Tasks are the to-do lists, priorities, and activities that will help us achieve our OKRs.

Also Read: Global pandemics, trade wars: why OKRs are more vital than ever before

OKRs shift thinking from measuring inputs or tasks to outcomes. OKRs are agile, set for 90 days, and builds a muscle of cadence around metrics that matter most.

Here’s an example of an OKR.

Objective: Implement a kick-ass sales strategy to accelerate revenues

KR 1: Increase conversion rates from 15 to 30 per cent

KR 2: Reduce lead received to call back time from one hour to 10 minutes

KR 3: Increase enterprise customer proposals from four to 10 per month

How to run craft an OKR

The Socratic question

As you mull over how to get started with OKRs, ask yourself the Socratic question ‘Is my company ready for OKRs and what outcomes would we want to drive?’ OKRs being a strategy execution framework, rest on your company’s mission, vision, and strategy.

No sailing without the captain of the ship:

OKRs start with sponsorship, and that’s best done by the CEO alongside the Strategy Office. With a strong war cry around OKRs, you need to rally your team around the North Star or the big ‘why’.

Champion the implementation, get a common understanding of what OKRs are or aren’t, and don’t shy away from calling an OKR expert to give you a 101 primer on OKRs.

It starts with company OKRs

In all OKR pilots, what emerges as a constant is to start from the top. Build the virility around the framework, by setting company OKRs anchoring them to the company’s mission, vision and strategy.

As a Founder or CEO who is driving OKRs, invite your next level leadership team to contribute to company OKR crafting. Use OKR language in every meeting – Get tired of saying so, until everyone gets activated on the driving OKRs as a muscle.

Choose your pilot team well

Organisations have different ways of choosing a pilot team. For enterprises, it could be CXOs and next-level leaders, or a group driving Innovation projects.

Also Read: We recently implemented OKRs at e27; This is why every startup should do the same

For hyper-growth startups, it could be teams that need to drive outcomes through intensive collaboration. The success of your pilot team can be a role model for other teams.

Get the right anchors

It takes two to tango. But for OKRs, it’s a whole lot more. You need the right anchors to make sure the teams are sailing through every difficult situation without crashing or just running away from the challenges. Have a well-defined checklist to make sure your key role holders can increase your chances of a successful implementation.

Consider using an OKR software

With team sizes are more than 20, an OKR Software is a must-have to keep the momentum on. An OKR Software would help teams view real-time insights, flag KRs at risk, help teams capture check-ins, collaborate on progress, and guide them on writing high-quality OKRs.

According to the experience of Fitbots OKR management, an effective Check-In meeting is a secret sauce to getting OKR implementation right.  This may seem like the same old tune, but the fact remains, no leadership enthusiasm, no OKR success. Check-In meetings happen weekly by teams and during Leadership reviews.

With a view on OKR progress dashboards against company goals, leadership teams review, reset & remove constraints to get OKRs back on track!

Gather the learnings from the pilot and reset your process. Before going company-wide, it is better to know what works well given your company culture and growth focus.  Happy OKRing!

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This article was first published on September 1, 2020

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