A couple of weeks ago, I was chatting with the CEO of a VC firm who asked me what his portfolio companies should do differently when building their brand reputations. This question came up as we’ve both observed and agreed that most startups don’t do this very well.

There are various reasons why this may be the case — from underestimating the importance of building and nurturing brand reputation, thinking that this is important only when they are at a later stage, deprioritising this critical work due to the lack of funding, to simply not having the time to focus on this.

Here’s what I shared with this CEO:

Every startup, regardless of the stage it is at, needs an integrated and holistic communications strategy. This is particularly so for startups that are planning to raise funds or when they are expanding to new markets. Building a brand reputation takes time, resources, patience, investment and discipline.

Simply put, building a brand reputation that consistently resonates with diverse audiences and stakeholders is a full-time job. It is not something that can be hurried or done on the fly.

Also Read: Building trust through partnership: How collaboration enhances reputation

A strong communications strategy ensures consistent, clear, and compelling messaging that are needed to build and nurture reputations.

It can help with:

• Building and establish the startup as a credible and trustworthy entity in the eyes of investors. This involves clear and consistent messaging that aligns with the company’s vision, mission, and values. This also reminds them that what they claim should be translated into their actions.
• Ensuring that the startup’s message is tailored to different stakeholders (e.g., investors, customers, partners). This approach increases the relevance and impact of the communications, making it more likely to resonate with potential investors.
• Investors are not just interested in numbers; they want to know the story behind the startup. A communications strategy helps in crafting a compelling narrative that speaks about the startup’s reason for existence, its unique value proposition, market potential and growth strategy.
• Ensuring that the startup’s messaging is communicated consistently across all its audience touch points – eg website, social platforms, interviews and other media engagement, speeches, investor pitch docs, job portals, in-app / in-store, newsletters,  presentations, etc. This consistency reinforces the startup’s brand and message, reduces confusion and in the process, making it more memorable to their key audiences.
• Having a well-planned and ready-to-go crisis communications strategy, ensuring that the startup can effectively manage any negative publicity or challenges that arise, thereby protecting its reputation and investor confidence.

As Warren Buffett very succinctly reminded his top managers across Berkshire Hathaway’s 80+ subsidiaries in 2010, “We can afford to lose money – even a lot of money. We cannot afford to lose reputation — even a shred of reputation.” To him, reputation is, and always will be, the cornerstone of a successful business.

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Malaysia’s financial group Kenanga, through a fund managed by its asset and wealth management arm Kenanga Investors, has led an undisclosed investment in Singapore-based alternative lender Helicap as part of its Series B round in exchange for an 8 per cent stake.

Saison Capital also co-invested.

Subsequently, Kenanga will increase its stake to approximately 10 per cent, making the group the largest institutional investor in Helicap.

Also Read: Helicap joins hands with Bank Danamon to support Indonesia’s alternative lending industry

The collaboration will integrate Helicap’s strengths in private credit with Kenanga’s operational capabilities.

“Our enhanced partnership with Helicap will enable us to tap into its global network as a source of offshore capital as well as to facilitate deal co-origination and syndication efforts in both Singapore and Malaysia. Ultimately, we believe this will provide a strategic base for Kenanga Group to build further cross-border collaborative partnerships and capitalise on the dynamic growth in the region, as well as the rising income and affluence among Southeast Asian investors,” Kenanga Investors Executive Director and CEO Datuk Wira Ismitz Matthew De Alwis said.

Started in 2018, Helicap is a private investment platform specialising in alternative lending in Southeast Asia. It connects global investors to private debt opportunities in Southeast Asia.

Helicap has raised more than S$20 million in paid-up capital and deployed almost S$500 million worth of capital with its in-house data analytics expertise. It has indirectly served more than 5 million MSMEs and individuals.

The company’s other backers include Japanese Temasek-backed alternative investments firm Tikehau Capital, PhillipCapital, East Ventures, Access Ventures, Voveo Capital, and SoilbuildGroup Holdings.

Also Read: Malaysia’s Kenanga invests US$7M in CapBay’s P2P Islamic financing platform

This investment builds upon Kenanga’s digitalisation initiatives, following its investments in Rakuten, CapBay, Tokenize Malaysia, and Merchantrade. The deal follows the launch of Kenanga Investors’ latest product suite, the Kenanga Alternative Series, which was marked by the introduction of the Kenanga Alternative Series: Income Opportunities Fund in July 2024. It feeds into the Helicap Income Opportunities Fund, an open-ended Asian private credit fund.

Established over 50 years ago, Kenanga Group is a financial group in Malaysia with extensive experience in equity broking, investment banking, treasury, Islamic banking, listed derivatives, investment management, wealth management, structured lending and trade financing. Its products include Malaysia’s fully online digital stockbroking platform, Rakuten Trade, and a fully AI robo-advisor, Kenanga Digital Investing.

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Malaysia’s state-backed Cradle Fund and Indian government-owned Invest India has established a strategic partnership to boost startup ecosystems in both countries.

According to the Ministry of Science, Technology, and Innovation (MOSTI), the two organizations have signed a Letter of Cooperation (LOC) to create the India-Malaysia Startup Alliance (IMSA) through Invest India’s Startup India initiative.

This alliance seeks to strengthen the collaboration between tech startups in both nations, leveraging India’s flagship Startup India program to encourage innovation and entrepreneurship. Startup India promotes foreign investment and supports economic growth.

Also Read: Cradle Fund, VentureTECH to provide comprehensive support system for Malaysian startups

MOSTI Minister Chang Lih Kang emphasized that the partnership aligns with Malaysia’s 2030 goal of becoming a top 20 global startup ecosystem and opens opportunities for Malaysian startups in India’s large market, while Indian startups gain access to ASEAN markets through Malaysia.

Cradle’s Group CEO, Norman Matthieu Vanhaecke, highlighted that this first-ever alliance will foster a stronger tech startup connection between the two countries. Over the next year, IMSA will focus on knowledge sharing, capacity-building sessions, and startup matchmaking programs. Malaysian and Indian delegations will also participate in key events like Startup Mahakumbh 2025 and the ASEAN-India Startup Festival 2025 in Kuala Lumpur.

These efforts are expected to drive close to MYR 100 million (US$23.09 million) in investments and commercial contracts between ASEAN and India, connecting startups with venture capitalists and industry stakeholders.

Recently, Cradle Fund announced a strategic collaboration with state-owned impact investor VentureTECH to foster structured discussions between fund providers across government and private sectors.

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Zed, a credit-led neobank, recently introduced the Philippines’ first credit card without foreign transaction fees, interest charges, or annual fees. This marks a significant step in transforming the local credit landscape.

Along with this launch, Zed opened an early access programme via a waitlist, which has attracted over 20,000 sign-ups within two weeks. This initiative, led by Stanford engineers and Y Combinator alumni Danielle Cojuangco Abraham and Steve Abraham, is designed to make credit products more accessible to Filipinos, particularly Generation Z.

A recent TransUnion Philippines study highlights the urgency of this innovation. While 94 per cent of Gen Z respondents acknowledged the importance of credit for achieving financial goals, only 35 per cent reported having adequate access to such products. Zed seeks to close this gap by offering a next-generation credit card specifically tailored for young, high-income individuals with limited credit histories, addressing a key financial need within Southeast Asia.

“Almost 30,000 people have signed up organically for our waitlist since we announced it … We have not spent money on marketing or user acquisition to date. This is a testament to how hungry this market is for a financial services company obsessed with the customer experience,” co-founder Danielle Cojuangco Abraham told e27 in a past interview.

“We see a significant opportunity in credit cards and will be focused on our single product for the foreseeable future. But obviously, our approach of being obsessed with the customer experience and leveraging technology for young, prime equivalent customers can be extended to other products in financial services.”

Also Read: Will digital banks take off in the Philippines?

Digital banking in the Philippines

The digital banking landscape in the Philippines presents significant potential, driven by the country’s young, tech-savvy population and the government’s push for financial inclusion.

With over 70 million active internet users, digital banks have a vast, underbanked market to tap into, especially in rural areas where traditional banking infrastructure is lacking. The rise of fintech has already demonstrated the demand for convenient and accessible financial services in the country.

Key to the success of digital banks in the Philippines is their ability to bridge the gap between the unbanked and formal financial systems. By leveraging technology, they can offer lower fees, faster transactions, and a more user-friendly experience than traditional banks.

This shift could lead to greater financial inclusion, empowering individuals and SMEs to access credit, savings, and investment products previously out of reach. Furthermore, digital banks can harness data analytics and AI to provide personalised services, enhancing customer satisfaction and loyalty.

As the Bangko Sentral ng Pilipinas (BSP) continues to promote the growth of digital financial services, more players are entering the market, fostering competition and innovation. This creates an exciting prospect for the future of banking in the country, with digital banks positioned to lead the way in modernising financial services.

Also Read: UNOAsia secures US$32.1M to provide digital banking services in Philippines

So, how exactly does Zed plan to seize these opportunities? How do they plan to create a long-term impact in the Philippines?

To find the answer, join us at Echelon Philippines 2024 for an exclusive fireside chat on Leveraging Silicon Valley networks: Zed’s path to growth and the long-term impact on the Philippine ecosystem.

Do not miss this rare opportunity to hear from Danielle Cojuangco Abraham and Steve Abraham, Co-Founders of Zed, as they share their journey of scaling a startup through the power of Silicon Valley connections. Moderated by Thaddeus Koh, Co-Founder of e27, this session will offer invaluable insights for founders, investors, and tech enthusiasts on how global networks can accelerate growth and shape the future of the Philippine startup ecosystem.

Reserve your seat now and join the conversation shaping the future of tech in the Philippines! See you at SMX Convention Center Manila on September 26-27, 2024.

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Image Credit: Zed

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In the current business environment, startups are increasingly expected to incorporate Environmental, Social, and Governance (ESG) principles into their operations. The growing awareness around sustainability and social responsibility means that startups are not only evaluated by their financial performance but also by their impact on society and the environment.

As emerging companies with the potential to disrupt industries, startups have a unique opportunity—and responsibility—to set new standards for responsible business practices. This shift is not merely a trend but a necessary adaptation to a world facing significant environmental and social challenges.

The example of Quest Ventures, a venture capital firm that has integrated ESG principles into its operations, offers insights into how startups can effectively engage with these important issues and the importance of doing so.

The imperative of corporate purpose and social responsibility

At the heart of any successful startup is a well-defined and compelling corporate purpose. In today’s business landscape, startups must go beyond the pursuit of profit to define a purpose that encompasses social responsibility. This commitment to a broader mission can be a powerful catalyst for long-term success. While financial returns remain essential, startups that align their business models with societal goals often find themselves better positioned for sustainable growth.

For instance, Quest Ventures has placed a strong emphasis on initiatives that promote financial inclusion, gender equality, and access to healthcare and education. This focus on social impact extends beyond altruism—it reflects a broader understanding that businesses are part of the societies in which they operate. Startups that adopt a similar approach can reap significant benefits. First, they can attract socially conscious investors who value long-term impact over short-term gains.

Second, a strong commitment to social responsibility enhances brand reputation, making the startup more attractive to customers, employees, and partners. Finally, a well-defined social purpose can serve as a guiding principle, helping startups navigate challenges and capitalise on opportunities in a rapidly changing world.

Building a sustainable business model

Incorporating ESG principles into the business model from the outset can provide startups with a competitive advantage. Quest Ventures, for example, manages a diverse portfolio that includes companies operating in e-commerce, software/AI, and fintech. By integrating ESG considerations into their investment strategy, the firm has ensured that sustainability is a core aspect of the companies they support.

Also Read: Kuala Lumpur: The Silicon Valley of Malaysia

For startups, this implies that focusing on ESG can lead to better risk management and resilience. Through prioritising ESG from the outset, startups can build resilient business models that are better equipped to withstand market fluctuations and regulatory changes. In addition, startups that prioritise ESG are likely to attract investment from funds that value not just financial returns but also the broader impact of their investments. This can lead to a more stable and supportive investor base, which is crucial for long-term growth.

Responsible investment and long-term value creation

Startups can benefit from adopting responsible investment practices early on. Quest Ventures’ commitment to responsible investment, as demonstrated by their adherence to the United Nations-supported Principles for Responsible Investment (PRI), highlights the importance of considering ESG factors in decision-making processes. For startups, this approach can lead to more sustainable and long-term value creation.

Aside from avoiding harm, responsible investment is about actively seeking opportunities that contribute to positive societal and environmental outcomes. Startups that align with responsible investment principles are more likely to build businesses that are both profitable and resilient to future challenges.

Quest Ventures’ pragmatic approach to ESG—focusing on better risk-adjusted returns while integrating ESG factors into its operations—is a testament to how startups can achieve both financial success and positive impact. This approach can help startups build trust with investors, customers, and employees, which is essential for sustainable growth.

Environmental stewardship as a strategic priority

In an era where environmental concerns are increasingly at the forefront of public consciousness, startups must recognise the importance of environmental stewardship. Quest Ventures has developed robust criteria for evaluating the environmental impact of potential investments, ensuring that its portfolio companies align with its sustainability goals. This proactive approach to environmental stewardship is particularly relevant for startups, which often have the agility and innovation to pioneer new sustainable practices.

Adopting environmentally sustainable practices is a strategic advantage for startups. Companies that prioritise environmental sustainability are better positioned to meet evolving consumer demands, navigate regulatory changes, and mitigate risks associated with climate change.

Also Read: Investing without ESG data? Here’s why you’re missing the full picture

Quest Ventures’ ongoing engagement with its portfolio companies to encourage the adoption of sustainable practices highlights the importance of continuous improvement and adaptability in this area. Additionally, startups that prioritise environmental stewardship can contribute to the broader effort to combat climate change, which is increasingly becoming a factor in investment decisions.

Social responsibility as a cornerstone of success

Social responsibility is another critical component of a successful ESG strategy. This encompasses the commitment to uphold human rights, promote fair labor practices, and foster diversity, equity, and inclusion (DEI). Quest Ventures’ dedication to these areas reflects a broader trend in the business world where social responsibility is increasingly seen as essential to long-term success. These principles extend beyond ethical considerations—they are fundamental to building a strong, cohesive, and motivated team capable of propelling a startup forward.

For startups, this means that investing in social responsibility can lead to a more engaged and productive workforce, stronger relationships with customers, and a more supportive community. Startups that prioritise social responsibility also have an edge in attracting and retaining top talent, as employees increasingly seek out companies that align with their values. Furthermore, social responsibility can enhance a startup’s reputation, leading to stronger brand loyalty and customer trust. 

The role of strong governance in sustainable growth

Good governance is essential for startups, particularly as they grow and scale. Quest Ventures has established governance principles that promote accountability, transparency, and ethical behaviour across all levels of their organisation. Startups can learn from this approach by implementing strong governance practices early on, which can help them navigate the complexities of growth and scaling.

Apart from compliance, strong governance also entails creating a framework that supports sustainable business practices. Startups that prioritise governance are better equipped to build trust with investors, customers, and employees. Consequently, good governance can help startups avoid potential pitfalls and make more informed decisions, which is crucial for long-term success.

Journey forward: The role of startups in shaping the future

Startups have a pivotal role in shaping the future of business and society by integrating ESG principles into their operations. By embracing ESG, startups can achieve financial success while contributing meaningfully to a more sustainable and equitable future. As the business landscape continues to evolve, startups that prioritise ESG will be better prepared to navigate challenges, seize new opportunities, and create a lasting impact.

Quest Ventures’ commitment to driving positive change and fostering sustainable development serves as a beacon for startups aspiring to lead with purpose and responsibility. This approach sets the stage for the emergence of responsible and forward-thinking businesses that will define the future.

Read more about Quest Ventures’ ESG Progress in here.

Co-authored by Linh Ha (Senior Analyst), and Amanda Chan (Summer Analyst) and edited by Jazlynn Quek (Summer Analyst) at Quest Ventures.

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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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