Dear reader,

The recent report by Tracxn highlights a significant downturn in startup funding across Southeast Asia in the first half of 2024.

With a staggering 65% decline, funding dropped to US$1.6 billion from US$4.5 billion in the same period last year. Late-stage funding experienced the most severe hit, plummeting by 86% compared to H1 2023. Early-stage investments and seed-stage financing also saw notable reductions.

Despite these challenges, there were some bright spots: acquisition activity increased, fintech remained a leading sector, and Singapore continued to dominate in total funds raised.

Noteworthy funding rounds included ANEXT Bank and GuildFi, each securing over US$100 million. While no new unicorns emerged, and IPO activity slowed, the commitment of key investors like East Ventures, 500 Global, and SEEDS Capital underscores a resilient, albeit cautious, investment landscape.

As the region navigates these funding challenges, the focus remains on strategic investments and sectors poised for growth, like fintech and high-tech industries.

Sainul,
Editor.

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NEWS

Funding in SEA sees 65% plunge in H1 2024; late-stage deals worst-hit
Late-stage funding fell 86% to US$421M in H1 2024 from US$3B in H1 2023 and US$1.3B raised in H2 2023; Only three IPOs took place, a decline from seven in H1 2023 and four in H2 2023.

Prosus writes off its 9.6% stake in India’s Byju’s
This makes the Dutch firm the first to fully write off its investment in the troubled Indian edutech startup; Prosus cites the write-off as “the significant decrease in value for equity investors”.

Paywatch scores US$30M in Series A to enhance its embedded finance offerings
The investors include Third Prime, Octagon Venture Partners and Wooshin Venture Investment; The EWA startup claims to have processed over US$58M in salaries to date and increased its disbursements to ~US$8M per month.

Meta makes its AI chatbot available to all users in India
Meta AI’s functionality is similar to other chatbots like OpenAI’s ChatGPT, Google’s Gemini, and Anthropic’s Claude. You can ask it to suggest recipes, plan workouts, help you write emails, or summarise a bunch of text.

EU to take further action against Apple over digital market rules, Breton says
“For too long @Apple has been squeezing out innovative companies — denying consumers new opportunities & choices,” said Commissioner Thierry Breton.

Radical Fund, Ninja Van co-founders invest in Malaysian solar financing startup Okapi
Okapi connects clean energy investors with solar dealers, installers and EPCs via an embedded financing and project management solution; It targets to fund the installation of 100 residential solar energy systems per month by Q1 2025.

HOMA2u raises US$625K to expand sustainable renovation marketplace
The investor is Asia Fund X; The company plans to use the funds to support its carbon reduction tracking initiatives and expand beyond Malaysia and Singapore into high-growth regions such as Taiwan and Japan.

Accendo signs MOU with Welliba for global expansion, AI innovation
They will co-develop AI-driven solutions and tools to refine and improve talent selection, development, and upskilling processes; This MoU also enables Accendo to “significantly” enhance its AI models with globally sourced, verified, and secure data.

Meet the 4 SEA startups of PepsiCo’s climate tech accelerator programme
They’ll receive US$20,000 in grants during the four-month business optimisation programme designed to accelerate their growth; They will also benefit from personalised mentorship from experts across different functional areas within PepsiCo.

Luckin Coffee to arrive on Malaysian shores with local partner — sources
Luckin Coffee will be roping in a Bursa Malaysia-listed firm as its local partner armed with an ambitious store expansion plan in the next five years; Luckin operates 18,590 stores worldwide, excluding vending machines, as of March 31 this year.

OpenAI buys a remote collaboration platform
Multi (previously Remotion) is a startup developing an enterprise-focused, video-first collaboration platform; The deal is technically an acqui-hire and that most of Multi’s team — around five people — will join OpenAI following the deal’s close.

‘Airwallex for Startups’ Accelerator Expands to Singapore
The Singapore programme seeks to assist over 55K startups with growth and scaling; Participants will benefit from six months of waived expense management fees, 3% cashback on Airwallex Borderless Cards, up to S$20,000 in fee-free payments, Google Cloud credits worth up to S$250,000, up to three months of Xero subscription, and discounted HubSpot subscriptions.

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‘Arbor envisions the rise of Generative Media as the 4th wave of media transformation’
Arbor’s expansion into Southeast Asia is motivated by the region’s rapid digital adoption and growing demand for reliable news.

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How Sipher won high-profile VCs’ hearts even before its blockchain games hit the market
Unlike most blockchain games, Sipher not only aims to onboard the crypto- and NFT-savvy crowd but also to introduce it to the traditional gaming community.

‘Vietnam can be an excellent launchpad for regional, global startups’: says Eddie Thai
Vietnam’s GDP is forecast to grow at least 5 per cent this year and 7 per cent next year, and within that growth, tech is going to be a significant component.

‘Attractive valuation, quick COVID-19 recovery keep Vietnam attractive for investors’ 
A strong sense of community is also another factor that helps startup ecosystem in Vietnam go through challenging times, says Dragon Capital’s Hieu Vo Tran Dinh.

Sustaining the work: How businesses can take a step forward in their move towards net zero
As tackling the impact of climate change becomes more urgent, the next critical decade must focus on pathways.

Unlocking success: These 3 startups reveal their product development strategies
These professionals from three different startups in Southeast Asia explain how they are doing product development in their respective companies.

How Pomelo tackles the problem of high product return with its O2O retail experience
In this Deep Dive series, e27 talks to David Jou of Pomelo Fashion, to understand the role of O2O e-commerce in reducing returns.

Gen AI in banking: How to ensure a successful transformation for an age-old industry
The integration of Gen AI introduces a complexity that disrupts the established balance between business and technology within financial institutions.

How Virtuos plans to win fast-paced SEA gaming market with its business model as an external developer
Singapore-headquartered Virtuos wants to become the largest game developer in Vietnam with 1,500 employees by the end of 2024.

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Global help desk software company Zendesk has launched a venture fund to back AI-first companies focused on enhancing customer and employee experiences.

Beyond capital, Zendesk Ventures offers access to CX and AI experts, strategic partnership opportunities to accelerate growth and innovation, and the chance to be featured on Zendesk Marketplace, home to over 1,300 apps.

Also Read: CX is crucial for your business. Here’s how Zoom can enhance it

Maureen Chong, regional vice president (Asia) at Zendesk, said, “AI will play a big part in the future of Singapore’s economy, as outlined in the city state’s latest update of its National AI Strategy. With the global nature of our fund, Zendesk Ventures opens up more avenues for AI startups in Singapore to further their vision for customer and employee experiences while complementing the government’s efforts to fuel the country’s AI capabilities.

Having acquired Singapore’s Zopim a few years ago, Zendesk has monitored the burgeoning tech startup scene in this region. We now have an avenue through which to support the growth of companies creating leading-edge AI-powered solutions,” she added.

Additionally, Zendesk Ventures has announced new investments in PolyAI and unitQ.

PolyAI, a voice-focused solution, allows Zendesk customers to handle complex interactions such as order tracking and delivery updates as naturally as a human conversation. This capability has increased revenue for customers across a variety of industries while also reducing human agent call volumes and time spent on inquiries.

Also Read: The critical role of AI in CX: How it can meet the ever-increasing customer service expectations

unitQ, an AI-powered product quality platform, enables businesses to efficiently collect and analyse customer interactions and feedback across 60+ sources in real-time to pinpoint the root cause of all user fiction and improve Net Promoter Scores (NPS).

Zendesk Ventures’s other portfolio companies are conversational intelligence platform Observe.AI and field service management software provider Zuper.

The post Zendesk launches venture fund to back AI-powered CX startups  appeared first on e27.

Use promo code e27READER for a limited 50% discount on your Premier Pass

Echelon’s goal is to support and empower the fastest-emerging tech market in the world. With the Philippines’s dynamic economy and vibrant startup scene making it a hub of innovation and growth, it’s the ideal place to explore new opportunities and connect with key industry players.

Echelon Philippines is happening on 26-27 September 2024 at the SMX Convention Center in Manila, Philippines. 

As the first Echelon conference in the Philippines, it aims to unite the collective expertise of the Philippines and Southeast Asia startup leaders, visionary entrepreneurs, and forward-thinking investors to drive the region’s next growth phase.

Collaboration and networking: Forge strategic partnerships and expand your network

At Echelon Philippines, you will have the unique opportunity to connect with like-minded individuals who share your passion for innovation and entrepreneurship. This event is a melting pot of ideas, bringing together startup leaders, visionary entrepreneurs, and forward-thinking investors.

Also read: D-Tech Community Hub: Fostering global expansion via local alliances

Whether you are looking to collaborate with established businesses, find new business partners, or simply expand your professional network, Echelon Philippines is the place to be. The connections you make here can lead to long-term collaborations, opening doors to new opportunities and resources that are crucial for growth.

Fundraising and investment opportunities: connect with local and regional investors

One of the most significant advantages of attending Echelon Philippines is the access to fundraising and investment opportunities. Startups will have the chance to engage directly with investors for the opportunity to present innovative ideas and begin discussions that could lead to funding.

For investors, Echelon Philippines offers a chance to discover innovative companies in the Philippines that are poised for growth, making it easier to identify potential investment opportunities. 

Cutting-edge insights: Learn from industry experts and experienced entrepreneurs

Echelon Philippines is committed to providing attendees with valuable knowledge and insights. The event will feature a series of keynote speeches, panel discussions, and interactive roundtable discussions led by industry experts and experienced entrepreneurs.

These sessions will cover a wide range of topics, from the latest technological advancements to effective business strategies and market trends. Be equipped with insights that can help you navigate the complexities of the startup ecosystem and stay ahead of the competition, learning from those who have successfully navigated similar challenges and who can provide you with practical advice and inspiration to drive your company forward.

Networking and community building: engage with the ecosystem

Building a strong network is essential for any startup’s success, and Echelon Philippines provides numerous opportunities for networking and community building. The event attracts a diverse group of participants, including startups, SMEs, investors, corporates, and ecosystem enablers.

Also read: How Telkomsel Ventures leverages insight, innovation, and collaboration

Engaging with this diverse mix of stakeholders can lead to fruitful collaborations, customer acquisitions, and new business opportunities. Whether you are looking to find new clients, partners, or mentors, the connections you make will be invaluable for your growth. The event fosters a supportive community where ideas can be exchanged, and mutual growth can be achieved.

Market access opportunities: Explore new markets in the Philippines and Southeast Asia

Echelon Philippines also focuses on providing market access opportunities. The event will offer insights into the market dynamics of the Philippines and the broader Southeast Asian region, making it particularly valuable for startups looking to expand their reach.

Gain a deeper understanding of the regional market landscape, identify potential entry points, and develop strategies for market expansion. For investors and corporates, this is an excellent opportunity to discover innovative solutions and startups that have the potential to disrupt and thrive in these markets. Echelon Philippines equips you with the knowledge and connections needed to explore and succeed in new markets.

Future-forward thinking: Envision and shape the future

It’s not just about the present; it’s about shaping the future of the startup ecosystem in the Philippines and Southeast Asia. Echelon Philippines brings together visionary entrepreneurs, industry experts, and thought leaders to share insights and discuss future trends.

Participate in forward-thinking discussions and workshops that explore the future of technology, business, and the startup ecosystem. This is your chance to stay ahead of the curve, anticipate future challenges and opportunities, and learn the ropes about trends and insights that will help shape the future. Being part of these discussions will enable you to envision and contribute to the future of innovation and entrepreneurship in the region.

Also read: Uncovering the secret behind Fonos’s unprecedented growth

Echelon Philippines is in partnership with Brainsparks, the first and only founder-focused Incubator+ in the Philippines that “turns Dreamers into Founders”. Powered by a team of mentors, founders, and investors who assist remarkable entrepreneurs in establishing the foundation, mindset, and principles for sustainable growth, Brainsparks promotes collaboration with different sectors, such as the academe, government, the corporate sector, and other stakeholders in the startup ecosystem to help companies at various stages grow.

Don’t miss out! Secure your ticket today and join us for an unforgettable experience that will inspire, educate, and empower you. Together, we can drive the next phase of growth and innovation in the Philippines and beyond.

Be part of the future at Echelon Philippines 2024!

Get your tickets here — Use promo code e27READER for a limited 50% discount on your Premier Pass

The post Echelon Philippines opens growth opportunities in the Philippines and beyond appeared first on e27.

Indonesia-based startups secured US$191 million in venture funding in the first half of 2024, a 64 per cent decline from US$526 million raised in the same period last year.

On a sequential basis, the drop is 79 per cent, as per the Geo Semi-Annual Report: Indonesia Tech H1 2024 released by data intelligence platform Tracxn.

The Southeast Asian country ranked 29th globally in funding as of H1 2024.

Also Read: SEA startups raised US$371M across 42 rounds in March: Tracxn report

Per this report, seed-stage investments in H1 2024 decreased by 27 per cent to US$26 million from US$32 million in H1 2023. Sequentially, the decrease is 42 per cent. Early-stage funding in H1 2024 marked a 42 per cent drop to US$113 million from US$148 million in the same period a year ago. Late-stage investments plunged to US$52.2 million from the US$681 million raised in H2 2023.

Fintech, insurtech and enterprise applications emerged as the top-performing sectors in H1 2024, indicating strategic growth areas within the industry. No new unicorns emerged in the period v/s one unicorn in H1 2023.

The report further found that fintech startups in Indonesia raised US$128 million in H1 2024, a 61 per cent plunge from US$329 million raised in H1 2023. The enterprise applications witnessed a 56 per cent decline in funding to US$45.1 million in H1 2024 from US$104 million in H1 2023.

On the other hand, insurtech saw a huge surge in funding, from US$7.5 million in H1 2023 to US$47 million in H1 2024.

H1 2024 saw a decline in acquisitions and IPO activity compared to the previous year. Three acquisitions recorded were DycodeX by eFishery, AyoPajak by PrivyID, and Lifepal by Roojai, down from six each in H1 2023 and H2 2023.

Topindoku was the only company to go public in H1 2024, showcasing a subdued IPO market during this period. This is lower than the four IPOs that took place in H1 2023.

Jakarta took the lead in terms of city-wise funding in H1 this year, followed by Yogyakarta and Bandung.

Also Read: Funding into SEA’s female-led startups falls 42% to US$480.8M in 2023: Tracxn

East Ventures, AC Ventures, and Alpha JWC Ventures maintained their status as the top investors, while East Ventures, Insignia Ventures Partners, and Beenext emerged as the top investors specifically for H1 2024.

In the early-stage investments, Peak XV Partners, Vertex Ventures, and Shunwei Capital led the funding activities, with MUFG Innovation Partners emerging as the top investor in late-stage startups.

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Imagine waking up one morning, ready to dive into your startup’s latest project, only to find that your computer screen is locked with a message demanding a ransom. This scenario, once the stuff of dystopian fiction, is an all-too-real threat in today’s digital landscape.

Ransomware attacks have become a pervasive menace, affecting businesses and individuals alike, with startups being particularly vulnerable.

Let’s explore how ransomware can disrupt the day-to-day workings of a startup and discuss some practical strategies for keeping your team and data safe.

The startup grind meets cyber threats

Startups thrive on innovation, agility, and the tireless efforts of their teams. However, this dynamic environment often involves a heavy reliance on technology, making startups prime targets for ransomware attacks. Here’s how such an attack can turn a bustling startup into a scene of chaos:

• Productivity paralysis: Picture this: your team is on the brink of launching a groundbreaking app, deadlines are tight, and everyone is pulling late nights. Suddenly, a ransomware attack locks you out of all critical files. Projects are halted, productivity plummets and the ripple effect can derail your entire timeline.
• Financial stress: The startup world is tough, and financial resources are often limited. The costs associated with a ransomware attack—including potential ransom payments, recovery expenses, and lost revenue—can be devastating. This unexpected financial burden can hinder growth, delay new hires, or even threaten the startup’s survival.
• Emotional toll: The startup environment is inherently high-pressure, with long hours and high stakes. A ransomware attack adds another layer of stress and anxiety, as employees worry about job security, data loss, and the company’s future. This emotional strain can affect morale and productivity, creating a tense and less productive workplace.
• Reputation risks: Trust is crucial for startups, especially those building their brand and customer base. A ransomware attack can damage your company’s reputation, eroding customer trust and confidence. Rebuilding this trust takes time and effort, diverting focus from core business activities.

Real-life ransomware stories

To understand the true impact of ransomware, let’s look at some real-life stories:

• Tech startups: A small tech startup specialising in app development was hit by a ransomware attack that encrypted all their project files. With no recent backups, they faced the grim choice of paying the ransom or starting from scratch. The incident delayed their product launch by several months, costing them potential investors and clients.

Also Read: Phishing remains top cybersecurity concern, but AI will drive it to next level: Zscaler CSO Deepen Desai

• E-commerce ventures: An emerging e-commerce startup experienced a ransomware attack that targeted its customer database. The breach compromised sensitive customer information, leading to legal ramifications and a significant loss of customer trust. The startup had to invest heavily in cybersecurity upgrades and public relations efforts to mitigate the fallout.

Simple strategies for cyber resilience

Given the potential impact of ransomware, adopting proactive strategies is essential. Here are some straightforward tips to enhance cyber resilience:

• Regular backups: Make regular data backups a part of your routine. Store backups securely offline to ensure you can recover data without paying a ransom. Consider setting calendar reminders or using automated backup solutions to keep this practice consistent.
• Stay informed: Keep yourself updated on the latest cybersecurity trends and threats. Follow reputable cybersecurity blogs, attend webinars, and participate in industry forums. Knowledge is power, and staying informed helps you anticipate and counter potential risks.
• Cyber hygiene habits: Cultivate good cyber hygiene habits. Use strong, unique passwords for different accounts and change them regularly. Enable two-factor authentication (2FA) wherever possible. Be cautious with email attachments and links, especially from unknown sources.
• Security culture: Foster a security-conscious culture within your startup. Encourage open discussions about cybersecurity, share best practices, and ensure everyone understands their role in protecting company data. Regular training sessions and simulated phishing exercises can help reinforce this culture.
• Incident response plan: Develop a clear incident response plan. Know who to contact, what steps to take, and how to communicate during a ransomware attack. Having a plan in place can reduce panic and streamline the response process.
• Work-life balance: Maintain a healthy work-life balance to manage stress and stay focused. Cybersecurity threats are stressful, but a well-rested and mentally healthy team is better equipped to handle crises. Encourage breaks, exercise, and time off to recharge.

Ransomware is a significant threat that can disrupt the startup environment, but with proactive measures, you can minimise the risk and impact. By integrating good cybersecurity practices into your daily routine and fostering a culture of awareness and preparedness, you can protect your startup and maintain the dynamic, innovative spirit that drives your success.

In the fast-paced world of startups, staying one step ahead of cyber threats is essential. Protect your data, safeguard your team’s well-being, and continue to pursue your entrepreneurial dreams with confidence. Remember, it’s all about being prepared and staying resilient in the face of digital adversity.

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The post Ransomware reality: Navigating cyber threats in the startup world appeared first on e27.