Sourcefy, an AI-powered supplier discovery and management platform, is transforming the B2B sourcing landscape. By leveraging advanced AI agents, Sourcefy is streamlining supplier searches and ensuring safe and transparent transactions. The company’s innovative approach addresses critical challenges in the industry, setting a new standard for efficiency and reliability.

Pain points in traditional sourcing

1. Reliance on traditional B2B platforms:
   • Slow Process: Platforms like Alibaba can be flooded with low-quality suppliers, making the search process time-consuming.
   • Lack of Accountability: These platforms often lack robust quality assurance, leading to potential disputes and dissatisfaction.
2. Reliance on sourcing agents:
   • High Costs: Businesses frequently hire expensive sourcing agents due to mistrust in existing B2B platforms.
   • Inefficiency: Despite the high costs, sourcing agents often do not improve efficiency significantly.

Both methods are slow, not cost-effective, and lack supplier accountability, which can lead to disputes and frustration for business owners.

Also read: OceanBase INFINITY: Empowering Indonesia’s digital economy

The rise of AI in sourcing

AI technology has revolutionised various industries, including sourcing and procurement. Sourcefy’s AI agents automate the supplier search process, delivering significant benefits:

• Eliminating keyword searches: Traditional B2B platforms require users to manually search for products using keywords, a process that can be inefficient and time-consuming. Sourcefy completely removes the need for keyword searches.
• Streamlined communication: Users no longer need to communicate with multiple suppliers or relay instructions to traditional sourcing agents. This process is often cumbersome and repetitive.
• Efficient job posting: Sourcefy allows users to post their job requirements with detailed information such as project title, description, budget, MOQ, and country. Within 24 hours, users typically receive proposals from suppliers who understand their requirements, significantly reducing sourcing time and eliminating the headache of explaining requirements repeatedly.

Addressing industry challenges

The logistics sector, fundamental to global trade, faces several challenges, including high costs, fraudulent suppliers, and lack of transparency. Sourcefy addresses these pain points through its AI-powered platform, which provides:

• Secure transactions: Business transactions for procurement usually exceed $10,000, and it is in Sourcefy’s interest to protect buyers’ funds. Partnering with Escrow.com, Sourcefy ensures funds are only released upon buyer approval, mitigating risks associated with unfinished or unsatisfactory products. Traditional B2B platforms like Alibaba have numerous reviews from users who lost money on such transactions, highlighting the need for Sourcefy’s secure approach.
• Milestone tracking:  Ensuring accountability from start to finish when a deal is struck between a buyer and supplier, such as for thermal flask bottles, Sourcefy encourages users to use the milestone function to divide the project into smaller, manageable stages. For example, the first milestone might involve checking the quality of the bottle by requiring the supplier to send pictures or videos. The second milestone could be verifying the print quality of the bottle, followed by assessing the packaging quality as the third milestone. The final milestone would ensure the items arrive safely to the buyer. Buyers only approve each milestone and release the corresponding funds when they are satisfied, ensuring that suppliers remain accountable throughout the entire process.
• Smart logistics: Smart logistics collaborations with industry leaders like DHL and UPS enhance delivery efficiency and cost savings. Traditional logistics often present several pain points, such as inflated delivery prices imposed by suppliers and the cumbersome process of checking delivery statuses through external URLs. Sourcefy addresses these issues by integrating logistics directly into the platform. This integration allows users to access competitive rates, benefiting from negotiated rates with logistics partners and thereby reducing overall delivery costs. Additionally, users can seamlessly track delivery statuses within the Sourcefy platform, eliminating the need to navigate multiple external websites. These features ensure a more efficient and cost-effective logistics process, further enhancing the user experience on Sourcefy.

Also read: Unlock the secrets to IP success at IP Week @ SG 2024

Future outlook

Looking ahead, Sourcefy is poised for significant growth. The upcoming launch of Version 2 in October will see Sourcefy become a fully integrated all-in-one sourcing and procurement platform. This update will allow users to request samples directly from suppliers within the local inbox, track sample orders and deliveries, monitor supplier orders, and check logistics progress—all within the platform.

Additionally, in 2025, Sourcefy plans to move towards an enterprise SaaS model, aiming to help MNCs in the trading sector manage their buyer-seller relationships via Sourcefy’s AI. This feature will facilitate transactions on the Sourcefy platform for a very low fee, further enhancing efficiency and customer satisfaction.

Recent investment and growth

Sourcefy’s recent $250K pre-seed investment from Evergreen Wealth Management, a boutique family office based in Singapore, marks a significant milestone in the company’s journey. This funding will accelerate efforts to enhance the platform’s AI capabilities, expand market reach, and upgrade the overall user experience. Sourcefy remains committed to continuous innovation to meet the evolving needs of its users.

Also read: NIA’s SITE 2024 sets new records at MHESI’s SCI Power for Future Fair

For more information, visit Sourcefy’s website or contact the team at contact@sourcefy.co for partnerships. 

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

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TransTRACK, an Indonesian fleet-tracking startup, has announced the closure of its oversubscribed US$12 million Series A funding round.

Eurazeo and Cocoon Capital led the round, which also saw participation from IFP Securities, Bintang Delapan, and AppWorks.

Also Read: Driving change: Female Muslim entrepreneur accelerates success in Indonesia’s logistics-tech arena with TransTRACK.ID

The logistics tech venture will use the money to accelerate its expansion across Southeast Asia, particularly in Indonesia, Singapore, and Malaysia. The firm also plans to expand beyond the region, targeting global opportunities in markets like Australia and Taiwan.

Founded in 2019 by Anggia Meisesari and Aris Pujud Kurniawan, TransTrack offers an AI- and IoT-powered fleet management system, transportation management system, and truck appointment system for logistics companies that aim to optimise their operations.

It also provides visibility across the supply chain in a single platform, increasing customer engagement, new revenue streams, and margins, driving productivity, efficiency, and business growth. The startup also offers a carbon emission dashboard, carbon footprint analytics, and marine transport optimisation.

TransTRACK’s solutions are effective in Southeast Asia due to their ability to address common challenges, such as fragmented logistics networks, high operational costs, and inconsistent delivery performance. By digitalising fleet operations, TransTRACK enables businesses to increase productivity and fleet utilisation by 40 per cent while reducing overtime, fuel and labour costs, total miles, and idle time by 30 per cent.

With real-time visibility, predictive analytics, and streamlined processes, businesses can optimise operations, minimise delays, and improve service levels.

Today, TransTrack serves over 1,200 clients across 130 cities in Indonesia and 30 cities in Malaysia and Singapore, with over 150,000 subscriptions. Its solutions cater to various sectors, including logistics, public transport, retail, finance, mining, ports & marine, industrial services, and plantation & forestry.

Also Read: What entrepreneurs should know about delivery management in 2024

The venture claims to have achieved 20 per cent month-on-month growth over the past year.

In January 2023, TransTRACK secured US$2.1 million in a pre-Series A funding round from Ortus Star, Cocoon Capital, YCAB Ventures, Goldbell Investment, NP Consulting, Damson Capital, and unnamed angel investors.

Southeast Asia’s logistics sector is projected to be worth over US$55 billion by 2025. With the rapid rise of e-commerce, urbanisation, and the increasing demand for efficient supply chain solutions, TransTRACK aims to capture a substantial market share in key regional markets, including Malaysia, Singapore, Thailand, Cambodia, and Vietnam.

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Image Credit: TransTRACK.

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The Echelon X fireside chat titled ‘Chasing Unicorns: The Next Play in Indonesia’s Tech Investment and Ecosystem’ provided a glimpse into the dynamic landscape of Indonesia’s tech startup scene.

The session explored the conditions and environments needed to locate and nurture the next unicorn, highlighting the wealth of opportunities and challenges for investors, entrepreneurs, and ecosystem builders alike in one of Southeast Asia’s fastest-growing economies.

Moderated by Anisa Menur A. Maulani, Editor at e27, the fireside chat featured Nicko Widjaja, Chief Executive Officer of BRI Ventures.

The conversation delved into the critical factors shaping Indonesia’s tech investment landscape. Widjaja shared insights into the key elements that investors should consider when seeking to identify and nurture potential unicorns.

He emphasised the importance of understanding Indonesia’s unique market conditions, including its burgeoning middle class, increasing digital adoption, and the government’s supportive stance on tech innovation. Widjaja also discussed the role of ecosystem builders in fostering an environment conducive to startup success.

As the country continues to grow as a key player in Southeast Asia’s tech landscape, the insights shared in this discussion will be crucial for stakeholders looking to make informed decisions in this promising market.

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Fundraising or preparing your startup for fundraising? Build your investor network, search from 400+ SEA investors on e27, and get connected or get insights regarding fundraising. Try e27 Pro for free today.

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As a tech startup entrepreneur, funding is always on one’s mind in order to grow the startup and build traction. I usually do not recommend approaching institutional VC investors or any angel-staged startup (an idea with no MVP or traction).

VCs tend not to place bets on such risky ventures and would give you the standard goodbye salutation of “Come back when you have more traction / developed your MVP.” Even if you did convince a VC to put money in at so early a stage, it becomes the most cumbersome bureaucratic experience, and you find yourself spending more time being accountable to the VC rather than focusing on building your startup.

(Sorry dudes, the VC has a reporting structure to follow, so you have no choice but to follow it since you took the money.)

Entrepreneurs should seek out angel investors instead to fill in the initial funding gap. Angel investors are an interesting breed in Singapore and greater Asian region. Given that the startup ecosystems are fairly less mature than US or Europe, the angel investing community tend to be less sophisticated and comes in very interesting shapes and sizes.

Gathering from the many conversations from my 1-to-1 advisory sessions with startups, I consolidated a list of characters of angel investors that Asian startup founders shared with me.

Angel 1: The friendly old retiree uncle who wants to do good deeds

This angel is a man (or woman) who has retired and built up good finances. His children have left the nest and migrated overseas, and he spends most of his time playing golf to tide his time away.

He could be your friend’s father, or just introductions via mutual family members. You get the chance to meet him and he dotes on you like a newfound son whom he never had. As you share your pitch deck to him, he smiles warmly, even though he cannot understand you as you stammer through the pitch.

He then says, “How much do you need to start this?” You ask US$50,000 and he nods as he pulls out his ancient-way of issuing money: a cheque book. And he tears the proliferated part of the cheque and passes it to you.

As you feel so grateful to him for believing in you, you promise you will send him the agreement. He brushes it off and says, “I trust you.” No directorship? No preference shares? Just a five per cent stake in the company? You start to think what his ulterior motive is.

He shares that he doesn’t have much needs in retirement and wants to give back and nurture the next generation. Maybe this man is trying to build good karma for himself for helping you? Or maybe you just got lucky? You end the meeting with tears of gratitude, ever wondering if you will ever pay this nice angel back with good returns.

Also read: The Philippines needs to develop a good angel ecosystem; muru-D Singapore Head

Angel 2: Supportive family and friends

This is quite a common theme I get from startups which can be both heartwarming and treading a fine line in relationship dynamics.

Some entrepreneurs are just lucky. When they want to do a new startup, family and friends rally to their cause and they will each invest a small amount. Together it becomes the angel investors round where many just want the entrepreneur to succeed.

But the expectations and pressure become different. You don’t want to be seen posting pictures on Instagram for a holiday soon after receiving money. Or when you are facing some crisis in the startup, it becomes hard to share to your newfound angel investors, as they are more worried about their money than your emotions.

Nevertheless, if entrepreneurs are able to tap into this funding and having clear expectations on how the fund is used, family and friends will become great ambassadors and supporters for the startup.

Angel 3: The fu-er-dai former classmates

They studied in school or went partying together with you until the wee hours of the night. You could have also visited or stayed overnight at your buddy’s huge expensive house or went out with him in his flashy sports car. This is something that is rarely spoken in the startup world, but connections, money and power are important components to aid a startup to success, especially in Asia.

The term fu-er-dai was defined as children of the nouveau riche in China. And while the term is considered perjorative, it is now a general label of anyone with rich parents and privileged upbringing.

Chatting with private bankers who work with generational families, they have seen their clients’ children having disinterest in continuing on with the family’s traditional business. A good number also open to investing new risker challenges, given life’s needs are well taken care of.

These fu-er-dai are also interested more on vanity, where they like to humble brag among high-net worth friends that they have invested or got involved in the next rising startup unicorn (which is you).

While they may need to seek approval from their parents to release funds, it is generally easier for a millennial entrepreneur to obtain angel funding from them, given the prior relationships. They may also provide you necessary connections from their family business to get your startup running.

Also read: I met with some of the biggest angel investors in Southeast Asia, and here are some insights I learned

Angel 4: Wealthy busy successful PMEBs

Another interesting source of angel funds come from fairly successful PMEBs who are above 35. They are newly minted low-digit millionaires with established and stable investing portfolios that generate good returns. In order to excite their portfolios, they would look to investing a small amount into businesses.

They are very busy in their current line of work, whether they are bankers, lawyers or consultants. It is a common occurrence that these PMEBs would invest in more traditional businesses like restaurants, bars or education centres.

However, I have started to notice a rising trend of startups that I advise are now having angels which come from this category. The angels are usually more receptive to SAFE agreements, rather than traditional ordinary shares, and more sophisticated in understanding the business.

These angels will be useful in terms of supporting the business, like advising on business contracts or how to structure a company for investment. They are usually also tied up at work and usually leave the entrepreneur to build the business and get updates on a quarterly basis.

Angel 5: Strategic customers or suppliers

Lastly, a startup, which may have identified a gap in the industry, may also have champions and supporters via its future customers or suppliers. Suppliers have stepped in to offer a small amount of funding to take a strategic stake, believing that it will help in the future forward integration or as a new developed sales channel.

For would-be customers, they see the potential of how the startup will help them resolve their pain points. They would feel that it is prudent to invest into your startup to gain access and knowledge to your steps and eventually hope to acquire you to integrate into their group, should your startup prove strategic value.

Conclusion

While people may be amused at the types of angels available in this part of the world, entrepreneurs have taken the step of faith of working with these angels to obtain their funding. Who knows, after reading this article, it might just have triggered you to realise how close an angel is to you now.

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This is part of the “Startup Clinic Advisory” series.

e27 publishes relevant guest contributions from the community. Share your honest opinions and expert knowledge by submitting your content here.

Image Credit: stokkete / 123RF Stock Photo

This article was first published on May 23, 2018

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On May 8, 2018, AngelCentral organised a panel discussion with some of the most experienced angel investors in Southeast Asia. Between them, they have invested in more than 70 investments over the past 40 years. Among the panelists were Virginia Cha, who teaches and supporting startup entrepreneurs in INSEAD, NUS, SIM and Platform E, Michael Blakely, who was named named “UK Angel Investor of the Year 2015” by the UK Business Angel Association, and Craig Dixon, the Entrepreneur in Residence and Program Manager for Muru-D, who has experience in the ecosystem as a founder, institutional investor, and Angel Investor.

Dorothy Yu, co-founder and COO of EngageRocket, a SAAS platform that analyses employee feedback real time, was the moderator for the session. Here are some notes I have taken from this insightful session.

What do angel investors look out for in startups and founders?

Blakely mentioned that he looks at the potential relationship that would result from an investment. He does not support founders who are just looking for money, and are unreceptive to external advice and support.  Blakely also believes that founders should be upfront about their problems as investors might be able to help fix them as well. He also looks at the founders’ ability to sell, particularly to potential customers.

Blakely added that he does not do extensive due diligence on startups, but chooses to do reference checks on founders instead. He would use social media tools such as Linkedin to find others that the founder(s) has worked with, instead of those referred to by them. This way, he will be able to get a more accurate view, as no-one will choose to indicate references that would give a negative recommendation!

Cha shared that she looks for people who are mentally strong. She raises the example of the story in The Martian, where the main character did not panic when he was stranded on Mars. Instead, he focused on ensuring the greatest probability of his survival. Similarly, she wants to invest in founders that are mentally strong such that when they face problems, they will not panic and take the necessary steps to solve them instead.

Also Read: China’s top 6 angel investors

Cha also added that she invests in people who are bipolar; individuals who have a big vision and dreams of what they want to achieve, while being rational in problem solving and making decisions at the same time. Dixon shared a similar view where he likes to invest in founders with the trait of “rational optimism”.

Dixon shared how he has received multiple funding requests from ex-corporates looking to raise more than three million dollars just to create a MVP. However, he prefers teams that chooses to create a MVP quickly and uses feedback from its initial base of users to reiterate and improve their product instead.

Different investment philosophies

An interesting thing to note was how all the angels had different investment philosophies. For example, while Cha mentioned that she would not invest in startups with a solo founder or a couple, Blakely mentioned that he invested in startups with both profiles recently!

Dixon mentioned that typically, he will only work with startups with an existing product and traction in the market. He also added that he does not invest in startups that outsource their technology development. Dixon added that he does not want to waste time finding the perfect valuation and aims to shorten negotiation periods, using SAFE notes to do so.

Blakely does not focus on finding the perfect valuation when investing into startups. Instead, he believes that startups should look to raise enough money to last them for 18 months. Blakely believes that startup founders should prepare to have about 20-30 per cent of their company to be owned by external investors. If it is <20 per cent, the startup would typically be considered as overvalued, posing further issues down the road.  If it is >30 per cent, it would make the startup un-investable for future investors. Similarly, Craig recounted a story where he agreed to invest in the company only after a pre-existing investor agreed to reduce his ownership from 35 to 15 per cent.

Lastly, Cha noted that while being an angel is about building a relationship between the founders and themselves, they also exist among angels as well. She finds that angels invest in startups with lead investors that they have worked with in previous deals, and vice versa.

Blakely shared that following experienced angels in the initial stages would help ease one’s journey, given the high amount of work required when starting out. For example, angels can consider joining syndicates, or finding strong lead investors on deals to leverage on their advice and support.

How much to invest and how much can you expect to earn as angel investors?

Blakely mentioned that the average exit for a startup takes about eight years; one of his first startup investments took 17 years before its exit! Michael expects only 50 per cent of his startups to make money in the long run. He added that angels should not invest what they cannot afford to lose, and consider the value of all their investments which have not exited as 0. From his personal experience, he noted that startups that raise multiple rounds tend to have higher failure rates that those which do not.

If you are looking to earn fast money as an angel investor, you are in for a rude awakening.

Dixon reiterated on having the mindset to only invest money that you can afford to lose. He added that angles should be patient, not expect to make money in the middle to long term, and that it is ok to make mistakes when starting out.

Cha shared that she has two types of investments; real estate which is generally safe, and angel investments which are usually risky. She recommends for angels to “mentally block (the money) away” once he/she writes the cheque. She shared that she puts about eight per cent of her net worth into angel investments, and she reinvests proceeds from all her exits back into startups.

Also read: The 11 smart ways to vet an investor before you seal the deal

Cha also added that depending on the nature of the deal, she invests between S$10,000 and S$200,000 per startup. For example, she would invest a higher amount when she is the lead investor, and invest smaller sums when she is a follower.

Why be an angel investor then?

With such high risks and high probability of failure, why be an angel investor then?

The panelists all agreed that being an angel investor should not just be about the money; it should also be about enjoying the ride. Blakely mentioned that one should only be an angel investor if he/she enjoys roller coaster rides because there are bound to be ups and downs.

Cha also noted that as long as as an angel continues to stay engaged and provides support to startups, they will be paid with more than just money. They include being exposed to cutting edge technologies, getting to know brilliant individuals, and having the opportunity to provide mentorship and advice.

A big thank you to the panelists for taking the time their busy schedules, and being so candid and open with their sharing. Many of the angels and startup founders that I spoke to found the session useful for their current roles. Overall, it was a meaningful and fruitful session for everyone involved!

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e27 publishes relevant guest contributions from the community. Share your honest opinions and expert knowledge by submitting your content here.

This article was first published on May 18, 2024

 

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As sustainable investing gains traction worldwide, Singaporean investors are also beginning to take notice. However, despite growing interest, there are significant barriers that need to be addressed to foster greater uptake of sustainable investments in the region.

According to a recent survey conducted by Standard Chartered Bank, a notable 37 per cent of respondents anticipate allocating more than 15 per cent of their investment portfolios to sustainable assets within the next two to three years. This marks a significant increase from the current 24 per cent of investors who have already embraced sustainable investment practices.

However, many investors in Singapore have yet to fully explore the potential of directing their investment dollars towards sustainable opportunities. But, Chen Yong Xiong, founder of Yongjing Family Office (YFO), contributes a unique perspective to the discussion on sustainable investments.

Through YFO’s interest in tech startups, dementia causes, charity work, and commitment to sustainability, they aim to play a constructive role in Singapore’s investment landscape. Thus, this untapped potential represents a significant opportunity for both investors and the broader society to drive positive change while also potentially reaping financial rewards.

Understanding sustainable investment

Have you ever thought about where your money goes when you invest it? Sustainable investment is all about making choices with your money that not only aim to make a profit but also care about important things like the environment, society, and how companies are managed. Mr. Xiong stated, “Invest in businesses that do good things for the world, not just make money”.

Investing sustainably involves making choices with your money that go beyond mere financial gain. It’s about supporting companies and projects that prioritise important issues like protecting the environment, promoting social equality, and ensuring good governance practices.

Also Read: The synergy of AI and DeFi: Shaping the future of finance

When investors engage in sustainable investment, they look beyond short-term returns. They consider factors such as how a company treats its employees, whether it’s taking steps to reduce its carbon footprint, and how transparent and ethical its management practices are. These considerations are often referred to as environmental, social, and governance (ESG) criteria.

Why does sustainable investment matter

Sustainable investment holds significant importance for Singapore as it reflects our commitment to building a greener, fairer, and more resilient society. When we choose to invest sustainably, we’re not just seeking financial returns; we’re actively supporting businesses and projects that address Singapore’s unique challenges, such as climate change, social inequality, and urban sustainability.

By directing our investments towards companies that prioritise environmental conservation and ethical governance, the society is contributing to the city-state’s efforts to create a more sustainable future for all Singaporeans.

Benefits of sustainable investing

• Long-term returns: Sustainable investments have the potential to deliver competitive financial returns over the long run, as they often align with resilient business models and emerging market trends.

• Risk management: By integrating Environmental, Social, and Governance (ESG) factors into investment decisions, investors can better identify and manage risks associated with issues such as climate change, supply chain disruptions, and regulatory changes. In this situation, family offices can better assess and mitigate investment risks.

• Social and environmental impact: Sustainable investments can address significant societal issues while promoting environmental conservation and ethical governance. For instance, YFO may invest in companies developing healthcare solutions for dementia, contributing to both societal well-being and environmental sustainability. This dual impact underscores the potential of sustainable investing to create positive change.

• Innovation and opportunity: Given the boom in technology over the recent year, investing in the technology sector also reflects recognition of the innovation potential within sustainable practices. Sustainable technologies not only address environmental and social challenges but also present lucrative investment opportunities. By supporting promising tech startups in Singapore, such family offices also contribute to fostering innovation and addressing pressing global issues.

Conclusion

In conclusion, investing in a better future through sustainable investment practices is not just a trend but a crucial strategy for shaping a more equitable society. As highlighted by Mr. Xiong, sustainable investing goes beyond mere profit-making; it’s about making choices that align with our values and contribute to positive change.

By incorporating environmental, social, and governance (ESG) considerations into investment decisions, investors can potentially achieve competitive financial returns while also mitigating risks and driving positive societal and environmental impacts.

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