Farquhar VC (FVC) has joined the pre-A investment round of South Korean AI-powered edutech startup Catius, along with lead investors Smilegate Investments and STIC Ventures.

Also Read: Infobank, Farquhar to help Korean startups seeking global expansion

Separately, the Singaporean VC firm signed partnerships with The Goyang Investment Authority (to support the mutual advancement of startups between South Korea, Singapore, and Southeast Asia) and Twin Ventures (to enable and support cross-border startup collaborations between the two countries and geographical regions).

The VC firm expects these deals to deepen its presence in South Korea.

In addition, FVC is currently in talks with potential fund collaborations with various Korean government and industry stakeholders. At the same time, its innovation-advisory subsidiary will embark on a joint accelerator programme to enable startups in southern South Korea to explore global expansion opportunities.

Also Read: Farquhar, Korea’s S&S Lab collaborate to support biotech, foodtech startups

Established in 2020, FVC has invested in more than 40 global startups. Its latest investments include EMERGE Group and Aevice Health. In 2024 and 2025, Farquhar plans to invest in high-growth Korean startups via its Green Future Fund.

In February this year, S&S Lab, a shared research lab and the operator of IRIS Lab in South Korea, announced a strategic partnership with Farquhar VC to foster and deepen relations among Korean and global novel food and biotech startups.

Under this partnership, S&S Lab and Farquhar will collaborate on exchanging innovation ecosystem insights and mutually supporting each other’s biopharma/foodtech portfolio companies.

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Vietnam-based global climate tech VC firm Earth Venture Capital (Earth VC) has invested in US-based nuclear energy startup Aalo Atomics’s US$27 million Series A funding round.

Other investors in the round are 50Y and Valor Equity Partners (co-leads), Harpoon Ventures, Alumni Ventures, and Preston-Werner Ventures.

Aalo Atomics develops small reactors in gigafactories to deliver scalable, cost-effective, clean energy anywhere, anytime. It has made strategic agreements like a sitting MOU with the DOE and a pathway to deploy its Aalo-1 reactors at Idaho National Laboratory.

Also Read: Earth VC backs Sparxell that replicates vibrant colours in nature using fully plant-based cellulose

The energy startup will use the funds to scale its team, establish a new Factory HQ in Austin, and continue de-risking the licensing process. The company is also set to build a non-nuclear prototype to validate its technology and prepare for its Aalo Fuel to hit the market.

“We’re on a mission to make small nuclear reactors in gigafactories,” Aalo Atomics CEO Matt Loszak said. “The goal is predictable low costs and a short construction timeline, making clean energy a reality, any place, any time.”

“The path to net zero simply doesn’t exist without nuclear energy,” said Tien Nguyen, Founding Partner at Earth VC. “Aalo Atomics’s groundbreaking innovations—modular reactors, advanced liquid coolant systems, and UZrH fuel—are setting a new benchmark for safety and scalability in the industry.”

In June, Earth Venture Capital made a strategic investment in US-based cultivated meat startup Orbillion Bio. This investment round was co-led by The Venture Collective and At One Ventures and joined by Y Combinator and Metaplanet. This brings its total funding raised to date to US$15 million.

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Sarana AI, an AI-powered human resource services startup in Indonesia, has concluded an undisclosed amount in a pre-seed funding round led by Fortress Data Services (FDS), a tech-based services provider for the banking and financial services industry.

The fresh capital will be used to incept and bolster Sarana AI’s platform.

Also Read: Future-proofing businesses and talent through technology

Sarana AI was established to address the critical need for advanced workforce development in Indonesia, where only 27.6 per cent of the workforce is skilled in digital literacy, technical skills, and problem-solving (Badan Pusat Statistik, 2021).

With the rapid adoption of technology, it is projected that by 2025, 50 per cent of all employees globally will require reskilling to align with industry demands (World Economic Forum, 2020).

Sarana AI’s platform is designed to close this gap. It provides a real-time pulse on organizational talent health with measurable metrics to improve employee retention and facilitate the rapid regeneration of workforce capabilities.

Aktsa Efendy, co-founder and President of Sarana AI, said: “Our goal is to empower businesses to increase their revenue per employee without the need to expand headcount proportionately. We firmly believe that AI is here to augment, not replace, human talent.”

Also Read: Envisioning the future: The critical challenges and opportunities of AI investment

Pak Sutjahyo Budiman of FDS added, “Talent recruitment, retention, and regeneration are the core components that enable scale and growth for all institutions. An automated and independent recruitment, feedback, and upskilling system will undoubtedly play a pivotal role to enact people development functions efficiently. We believe Sarana AI’s solutions will reshape the future of talent and HR function across collar spectrums in our country.”

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BrightCHAMPS, a global company providing online, offline, and hybrid STEM-accredited life skills classes, has closed the acquisition of Vietnam-based English communications platform Schola for an undisclosed sum.

After the deal, Schola was renamed BrightCHAMPS Vietnam.

Also Read: ‘High cash-burn growth strategy is ultimately unsustainable’: BrightCHAMPS’s Ravi Bhushan

The deal was first announced in August 2022.

According to Schola co-founder Nhu Tran Le Thanh Schola has four centres for offline and hybrid learning in Ho Chi Minh City, along with thousands of students taking the online 1:1 classes in English communication. BrightCHAMPS Vietnam now aims to run 20 offline hubs by May 2026, 10 each in Hanoi and Ho Chi Minh City.

BrightCHAMPS Vietnam has earmarked a US$10 million corpus to set up these centres and hire and train local and international staff in global best practices.

Additionally, the company will invest heavily in working with local educational institutions and government bodies to integrate future-ready skills into existing educational frameworks.

The edutech firm will also provide scholarships to deserving students. Schola’s students and parents will now have access to BrightCHAMPS’s pool of global educators across 30+ geographies, including the US, the UK, Australia, and Canada.

The venture will also foster more high-quality collaborations, such as the global entity’s recent partnership with Harvard Business Publishing Education, to enable more students to access Harvard ManageMentor courses at no additional cost.

Also Read: BrightCHAMPS acquires SEA-focused edutech startup Schola for US$15M

Currently, Vietnam is BrightCHAMPS’s second-largest global market, and a crucial element of the company’s aim is to be the biggest co-curricular institution in the world by AY2027.

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The 2011 film Moneyball depicted the innovative challenge of the Oakland Athletics, an underdog team in Major League Baseball. General Manager Billy Beane, played by Brad Pitt, led the team to a 20-game winning streak using a data-driven approach despite operating on a shoestring budget. This isn’t just a cinematic tale; it exemplifies a core strategy in modern business.

The ‘Moneyball theory’ of achieving maximum impact with minimal resources offers valuable lessons for Korean startups looking to enter Southeast Asian markets.

Since 2006, I’ve been immersed in Singapore’s venture capital and startup ecosystem, advising numerous Korean companies on their Southeast Asian expansion strategies. Throughout this process, I’ve consistently emphasised the ‘Moneyball approach’. The Southeast Asian market is more receptive to a ‘small ball’ strategy—focused on precise tactics—rather than a ‘big ball’ approach that relies on massive capital investment. This is akin to a baseball strategy that prioritises improving overall on-base percentage over relying solely on home run hitters.

The rationale behind this approach is as follows:

Firstly, Southeast Asia is not a single, unified market. While grouped under the ASEAN banner, each country has distinct legal systems, economic structures, and cultures. For instance, Singapore and Cambodia, though both Southeast Asian nations, have vastly different levels of economic development and business environments. Therefore, the approach used for large, homogeneous markets like the United States or China is unsuitable here. Instead, a tailored strategy considering each country’s unique characteristics is necessary.

Secondly, the economic scale of the Southeast Asian market is often overestimated. In fact, the combined GDP of the six major countries is about US$3.5 trillion, merely twice that of South Korea’s US$1.7 trillion. A significant portion of this is concentrated in Indonesia, which accounts for one-third of the total. Vietnam, despite having twice South Korea’s population, has only a quarter of its GDP. This suggests that the market may be more limited than Korean companies anticipate. However, considering the region’s high economic growth rates and young demographic structure, its potential remains significant.

Lastly, the Southeast Asian startup ecosystem is still in its infancy. While the region boasts around 30 unicorns, the startup ecosystem has only been developing in earnest for about a decade. The overall infrastructure, human resources, and capital markets are still immature compared to not only the United States but also South Korea. For example, there are significant disparities in startup founder resources and the number and scale of domestic listed companies. Consequently, it’s challenging to directly apply the startup growth models we’re familiar with, such as rapid expansion through large-scale funding and quick exit strategies.

Also Read: Digital transformation & AI revolution: Shaping Singapore’s F&B industry with Korean restaurant tech

In this context, an effective expansion strategy is the ‘Point-Line-Plane Strategy’. This approach doesn’t view Southeast Asia as a single market but focuses on individual countries or major cities. For example, concentrating on metropolises like Singapore, Jakarta, and Ho Chi Minh City, and combining this focus with specific industry sectors to accumulate small successes. In other words, it involves concentrating small-scale investments on ‘points’ where specific cities and sectors intersect, thereby increasing ROI and success rates. The strategy then involves connecting these successful ‘points’ to form ‘lines,’ and ultimately expanding into ‘planes’.

This approach is well-suited to the Southeast Asian environment, where achieving economies of scale through large-scale investments at a regional level is challenging. Starting from small points and gradually expanding—this strategy embodies the true ‘Moneyball theory’ for entering Southeast Asia.

The film ends with the song lyrics, ‘I’ve got to let it go. And just enjoy the show. Just enjoy the show’. For startups stepping onto the stage of entrepreneurship and global expansion, I hope they embrace this journey without fear and enjoy it wholeheartedly. As the saying goes, ‘Genius cannot overcome a person who tries, and a person who tries cannot overcome a person who enjoys’.

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In the high-pressure world of startups, burnout and resilience are major concerns for founders striving to build sustainable businesses.

The Echelon X panel discussion titled “Sustainable Hustling and Resilience for Startup Entrepreneurs: Tactics Founders Have Implemented to Reduce Burnout and Play the Long Game When Building Their Startups” offered valuable insights into navigating these challenges.

For founders grappling with burnout or seeking ways to bolster resilience for themselves and their businesses, the panel provided effective tactics for reducing burnout and fostering a sustainable approach to entrepreneurship. The discussion covered practical tips on managing stress, staying motivated, and ensuring long-term success while avoiding common pitfalls.

Moderated by Terence Chia, Co-Founder of Folklory, the panel featured:

• Joan Low, Founder and CEO of ThoughtFull
• Jx Lye, Founder and CEO of Acme Technology
• Evan Heng, Founder and CEO of Zenith Learning Group
• Henry Motte de la Motte, Founder and CEO of EDGE Tutor

By sharing their personal experiences and strategies, the panelists provided a roadmap for maintaining mental, physical, and emotional well-being while navigating the challenges of startup life. Their insights underscored the importance of self-care, community support, and a balanced approach to work and life, equipping entrepreneurs with the tools they need to play the long game and achieve sustainable success.

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In the startup and VC world, Generative AI (Gen AI) is certainly creating a big wave. If you are an entrepreneur and would like to start a business leveraging the power of the Large Language Models (LLMs) — or the name of it — what is the battle plan? What are the areas you may want to bear in mind?

I’ve been speaking to leading experts in the field. One of them is Dr. Dan Roth, Ph. D., who is a Distinguished Professor of Computer and Information Science at the University of Pennsylvania. He has decades of experience in the technology, software and AI innovation space. With one foot in the technical world and the other in the entrepreneurial world, Dr. Roth has a bird’s eye view of the Gen AI wave — as well as its nuances.

Here are the learnings:

Utilise existing language models

Building your own model from scratch requires significant investment and expertise. Leveraging existing models can save time and resources, allowing you to focus on fine-tuning for specific applications.

Identify your differentiators

Determine what sets your approach apart. This could involve using better or unique data, or applying data in more innovative ways. Fine-tuning models with high-quality, application-specific data can significantly enhance performance.

Also Read: Beyond the hype: Taking Gen AI mainstream with next-level automation

Save costs

• Use smaller models and optimise inference: Large models like GPT-4 are powerful but costly. Smaller models, even as compact as 3B or 7B parameters, can be highly effective and more economical. Fine-tuning these smaller models on your own data can further reduce costs. Investing in efficient inference technologies, such as model quantisation, can also significantly cut expenses.
• Distill models for cost-effective inference: Employing methods to distill smaller models can enhance their efficiency, making them more cost-effective for production use. This approach is being adopted by several startups to improve inference efficiency.
• Consider simpler models when appropriate: Not all problems require large language models (LLMs). For specific tasks like information extraction, smaller, fine-tuned models can outperform even the largest LLMs. Understanding the tasks your application needs to perform will help you choose the most appropriate and cost-effective model.
• Develop a robust evaluation protocol: Establish a comprehensive evaluation protocol that includes both automatic metrics and human assessments. This builds trust with investors by demonstrating a thorough understanding of your technology’s capabilities and limitations.
• Address hallucinations: Implement systems to evaluate and mitigate hallucinations in your models, focusing on both factual inaccuracies and reasoning errors. Utilise metrics like accuracy and F1 score, and ensure human evaluation is part of your assessment process.
• Be mindful of misinformation: Consider the potential for your models to generate toxic information or misinformation. Implement safeguards to prevent misuse and minimise the risk of information pollution.

“You have to think about who will use your tools and whether they will be careful or not. […] It could be a PR disaster if someone generates toxic information or misinformation, which could find its way to [X]. You need to think about this, and it’s a function of who you’re giving the models to. […] Information pollution doesn’t get enough visibility. It’s really a scary space. […] You have to think about whether you care about your model generating toxic information.” —  Dr. Roth, Professor of Computer and Information Science at the University of Pennsylvania.

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The Third Evolution of the Creator Economy: A Glimpse into AnyMind’s AnyTag

The creator economy is flourishing in an era of digital innovation and technological advancements. The Echelon X fireside chat titled ‘The Third Evolution of the Creator Economy: A Glimpse into AnyMind’s AnyTag’ provided a deep dive into how AnyMind Group, a key player in the creative industry, is revolutionising influencer marketing through its innovative AnyTag platform.

Moderated by Casey Lau, Head of Asia at RISE Web Summit, the fireside chat featured Otohiko Kozutsumi, Co-Founder of AnyMind Group.

Kozutsumi shared insights into how AnyTag is transforming the landscape of influencer marketing by streamlining processes and enhancing the impact of creator-driven campaigns.

His insights provided valuable perspectives on the evolving landscape and the innovative solutions that are driving the third evolution of the creator economy. By leveraging AnyTag, creators and brands can unlock new opportunities and achieve greater success in the digital age.

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The Asia Pacific region is at a pivotal economic point due to the tightened monetary policies in response to global inflation. By extension, tighter capital liquidity is impacting tech companies far and wide in the first major global recession since 2008.

But the good news is that challenges and opportunities are often two sides of the same coin. The Asia Pacific cloud computing market is steadily accelerating at a compound annual growth rate of 15.6 per cent, despite the economic decline that has hit several industries in the region.

Venture capitalists, in particular, are seeking stable opportunities to mark their bets in the long run. Among the host of digital-centric businesses that have growth potential, the US$480 billion cloud computing market is capturing strong interest.

Why Big Data and AI are driving cloud computing demand

For years, cloud computing has been a core innovation factor for digital transformation. Fast forward, the tech is converging deeper with big data and artificial intelligence (AI) to power a host of business functions.

Although AI is largely known as a stand-alone technology that facilitates in-depth analysis of consumer behavioural patterns, its relationship with cloud computing has gained VC attention. This convergence is instrumental in enhancing productivity, as well as efficiency. For instance, businesses can now deploy applications in the cloud linked to machine learning resources. Firms such as FPT software, Vietnam’s largest ICT company, are investing in deep learning R&D centres to create AI-based solutions that can shield businesses from unknown attacks, such as zero-day malware.

Also Read: How to migrate your small business to the cloud

With this approach, businesses can extend their capacity in terms of data insights, team integration, and agile development to explore further business opportunities. A study by PwC predicts that “AI could contribute up to US$15.7 trillion to the global economy in 2030,” a figure that is drawing in more capital funding.

“Unparalleled opportunity” in digital assets mining

Cloud computing isn’t limited to big data calculations. Another emerging use case for cloud centres is Proof of Work (PoW) mining, which draws similar properties to traditional cloud computing in terms of energy usage and operational management. However, PoW mining facilities benefit more from how physically close they are to the power source, rather than the end customer.

Blockchain networks secured by PoW mining such as Bitcoin require substantial energy and specialised hardware. Having its unique set of requirements, “digital assets mining provides an unparalleled opportunity to Asia-based investors in terms of diversification and upside beta exposure to the cryptocurrency space,” comments Lin Cheung, CEO of JKL Group.

Bitcoin, the longest-running public blockchain to date, has garnered strong institutional interest due to its attractive propositions.

“On one hand, Bitcoin mining delivers a stable future cash flow dictated by the algorithm of Bitcoin blockchain, which provides a solid baseline for valuation. On the other hand, the ROI of digital assets mining mostly depends on four variable factors: price of equipment, electricity rates, digital asset output, and price of the mined digital asset. While these factors can be volatile, it is also up to the investor to determine at what profitability levels to switch the miner on and off to secure the upside beta exposure,” says Cheung.

Also Read: Cloud communications firm Toku nets US$5M Series A+ for APAC expansion

The cloud mining segment is projected to account for the largest revenue share in the estimated US$17 billion global digital assets mining market. Global miners utilise online cloud mining services to optimise cost while securing the Bitcoin blockchain as network miners. This allows miners to easily switch between different cloud services as the profitability rate can fluctuate based on variable energy costs and macro factors.

Maximising energy efficiency in win-win scenarios

Regions with low energy costs have attracted Bitcoin mining operators across the globe. Texas, US, is a prime example. The Electric Reliability Council (ERCOT) regulating the Texas grid rewards energy credit to customers who vary their energy usage in real-time. “It is a win-win scenario since the energy grid and miners respectively benefit from optimised load balancing and cheaper prices,” says Cheung.

More than 53 highly profitable businesses including Tesla and Hewlett Packard Enterprise have moved their headquarters to Texas. Large-scale Bitcoin mining firms such as Marathon Digital and Riot Blockchain have established operations in the region, with more players such as JKL Group ramping up new Bitcoin mining centres.

At a time when every resource counts, the cloud computing sector is positioning itself as a go-to market for venture capitalists. To stay afloat during the economic downturn, business profitability, stability and upside potential are important factors to consider. As once stated by Britain’s former Prime Minister Winston Churchill, “the optimist sees the opportunity in every difficulty.”

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This content was first published by The Human & Machine.

Image Credit: The Human & Machine

This article was first published on November 28, 2022

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The Southeast Asia region has emerged as a hotspot for fintech innovation and growth, with its large population, rapidly expanding middle class, and increasing digital adoption. While the potential rewards are significant, entering the Southeast Asia market as a fintech company comes with a unique set of challenges and complexities.

This article delves into the difficulties fintech companies encounter when venturing into the Southeast Asian landscape.

Regulatory hurdles

Navigating the complex regulatory environment in Southeast Asia can be a formidable challenge for fintech companies. Each country within the region has its own set of financial regulations, licensing requirements, and compliance standards. Achieving and maintaining regulatory compliance can be a time-consuming and costly process.

Compliance variability

Even within a single country, regulatory requirements can vary significantly, posing a compliance challenge. Companies need to stay abreast of changes in regulations, which may be influenced by political, economic, or social factors.

Customer trust and data privacy

Building trust among Southeast Asian consumers is paramount for fintech success. Concerns about data privacy and cybersecurity have grown, making it essential for companies to demonstrate their commitment to protecting user data.

Consumer education

Many consumers in the region may not be familiar with fintech services, necessitating extensive education and awareness-building efforts. Clear communication and user-friendly interfaces are vital to overcoming this challenge.

Currency and exchange rate risk

Dealing with multiple currencies in the region presents currency risk. Fintech companies must devise strategies to manage exchange rate fluctuations and offer multi-currency services.

Competition from established players

Local and international banks and financial institutions often have a strong foothold in the Southeast Asian market. Competing with these established players can be challenging, requiring fintech companies to offer compelling value propositions.

Payment preference variability

Southeast Asia exhibits a diverse range of payment preferences, including digital wallets, bank transfers, cash payments, and mobile money. Adapting to these preferences and integrating with local payment providers is essential.

Infrastructure and connectivity

While urban areas in Southeast Asia are typically well-connected, rural regions may lack reliable internet access and financial infrastructure. This digital divide can hinder the reach of fintech services.

Also Read: Essential tips for scaling in Southeast Asia: 4 key insights to consider

Political and economic instability

Some countries in the region have a history of political and economic instability. Fintech companies need to carefully monitor these developments and assess risks to their operations.

Partnerships and local relationships

Collaborating with local banks or financial institutions may be necessary for certain fintech services. Building these partnerships and navigating local relationships can be complex.

Language and cultural barriers

Language diversity and cultural differences across the region can pose communication and marketing challenges. Tailoring content and services to local customs and preferences is essential.

Access to rural markets

Expanding into rural and remote markets can be logistically challenging. Fintech companies must develop strategies to overcome these geographical barriers and reach underserved populations.

Financial inclusion

Promoting financial inclusion is a significant goal in Southeast Asia. Fintech companies must develop services and strategies to reach unbanked or underbanked populations.

Currency regulations

Some countries may impose strict currency controls or limitations on fund transfers, affecting the operations of fintech companies.

Customer support and localisation

Providing customer support in multiple languages and adapting services to local customs and preferences can be resource-intensive but is essential for customer satisfaction.

Conclusion

While Southeast Asia presents immense opportunities for fintech companies, the journey is riddled with challenges that require careful planning, adaptation, and resilience. Successful market entry and growth in this diverse and dynamic region hinge on a combination of factors, including regulatory compliance, consumer trust, innovation, and effective localisation.

Fintech companies that navigate these complexities wisely can unlock the vast potential of the Southeast Asian market and contribute to financial inclusion and digital transformation in the region.

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