Eklipse, founded by Weihan Liew and Quan Bui, is tackling a significant pain point in the content creation industry—video editing.

According to Liew, creators spend up to 70 per cent of their time on editing, leaving less room for what truly matters: engaging with their audience. To address this, Eklipse has developed a generative AI tool that automates the editing process, drastically reducing the time spent on manual editing by up to 90 per cent.

The AI detects key moments from long-form videos—whether an exciting gaming highlight, a viral reaction, or a polished product demo—and turns them into shareable, professional-quality clips for social media platforms such as TikTok and YouTube within minutes.

“With our technology, creators can produce top-tier content effortlessly, empowering them to grow their audience without breaking the bank,” Liew explains in an email interview with e27.

Liew, a seasoned entrepreneur with a background in AI, media, and gaming, co-founded Eklipse with Quan Bui, who brings expertise in AI development and product engineering.

Also Read: Know thy customer: The only rule for startups looking to build trust on social media

Liew’s prior successes include founding BaBe, an Indonesian mobile news platform that utilised AI for news aggregation, and MainGames, one of Southeast Asia (SEA)’s largest gaming communities.

Together, they share a vision of democratising content creation, allowing creators of all sizes access to world-class editing tools without the hefty price or learning curve, as they continue to push the boundaries of AI-powered content solutions.

The following is an edited excerpt of our conversation with Liew.

What is your product development journey like?

Our journey has been all about empowering content creators to supercharge their growth. We began in the gaming industry, serving creators in Southeast Asia (SEA), but Eklipse quickly caught fire among game streaming communities in the US, with gamers playing titles as diverse as Fortnite, Dead by Daylight, Rocket League, and, more recently, Black Myth Wukong.

Recognising the universal challenges creators face, we expanded beyond gaming into other content verticals like vlogging, tutorials, and e-commerce demos. We evolved from offering just AI highlights to delivering an end-to-end solution where our AI is capable of not only finding the best moments but also editing them with flair, adding relatable memes, eye-catching visuals, captions, and complementary sound effects just like a top-tier video editor would.

Our mission is bold: to make Eklipse the ultimate, affordable alternative to augment the ability and output of human editors and content creators, democratising content creation like never before with the power of gen AI.

Also Read: AI in journalism: Thai media show a 95 per cent adaptation rate despite concerns about overreliance

What are the most important milestones that you made recently?

Surpassing 500,000 registered users in Q3 2024 was a monumental milestone for us, a powerful testament to the value we deliver to creators worldwide. But we did not stop there.

We have processed over 8.3 million hours of content, saving creators an estimated millions of hours of editing time! We have also launched innovative features like real-time AI editing and secured strategic partnerships with leading platforms and influencers, including collaborations with top Twitch streamers and YouTube content creators.

These achievements not only enhance the user experience but also solidify Eklipse’s position as a trailblazer in Generative AI in SEA and beyond.

What is your business model? Who are your users, and how do you acquire them?

We operate on a freemium model because we believe in making powerful AI tools accessible to everyone. Creators can access essential AI-powered video editing features for free, while our premium tiers unlock advanced functionalities like higher resolution outputs, priority processing, no watermarks, and exclusive templates that make their content stand out.

Our users are a vibrant mix of gaming streamers, YouTubers, educators, e-commerce entrepreneurs, and social media influencers across Twitch, YouTube, TikTok, Instagram, and Facebook. We have grown our user base through strategic partnerships, collaborations with top influencers, and targeted marketing campaigns that resonate with creators.

Also Read: 6 effortless ways to grow your small business through social media

Our strong community engagement—through webinars, tutorials, creator spotlights, and interactive forums—alongside word-of-mouth referrals has been a powerhouse for our rapid growth. We’re not just building a user base; we are fostering a global community of passionate creators who uplift and inspire each other.

How does being part of the AI First Singapore programme benefit you?

Being part of the Google for Startups Accelerator: AI First Singapore programme jointly launched by Google Cloud and Enterprise Singapore has been a game-changer for Eklipse.

The program did not just accelerate our development; it propelled us into the future. We gained early access to Google Cloud’s groundbreaking AI technologies, such as the multimodal capabilities of its Gemini 1.5 Flash model on the Vertex AI platform, making us one of the first startups globally to harness these tools.

This has allowed us to elevate our video highlighting and editing capabilities to unprecedented levels, delivering crisper, more dynamic content faster than ever.

Leveraging Google Cloud’s AI-optimised infrastructure, we have slashed our processing times by half, reduced operational costs, and scaled our services to meet growing global demand seamlessly. The mentorship, networking opportunities, and resources provided by the programme have not only accelerated our growth but have positioned Eklipse at the forefront of AI innovation in content creation, opening doors to future collaborations and partnerships.

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Image Credit: Eklipse

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Southeast Asia’s venture capital landscape is dynamic. The region’s diverse markets, young population, and digital adoption make it a fertile ground for innovation and investment.

However, with the ongoing funding winter, geopolitical headwinds, and global economic challenges impacting investment deals, domestic and international investors have been cautious in their approach in 2024. As a result, the overall venture funding raised by startups in the region in the first nine months of 2024 fell 59 per cent to US$2.3 billion. The effect was felt across all investment stages (seed, early, and late stages).

Amidst all these challenges, Southeast Asian-based investors (VCs, PEs, and corporate VCs) continued to invest in startups in the region and globally.

Also Read: SEA’s startup scene sees 59% drop in funding amid economic headwinds

Below is a comprehensive list of top investors based in Southeast Asia who have invested in startups worldwide.

Spartan Group

A blockchain advisory and asset management firm founded by former Goldman Sachs alumni.

Headquarters: Singapore
The number of investments made in 2024: 28
Overall portfolio count: 156
Key focus sectors: Blockchain, high-tech, fintech, gaming, enterprise applications, consumer, energy, financial services, media & entertainment, mobile, and retail.
Key target markets: The US, Singapore, Canada, China, Germany, Australia, Estonia, Guernsey, Indonesia, Japan, Liechtenstein, South Korea, Sweden, Taiwan, Thailand, and the UK.

HashKey Capital

A venture capital firm focused on pre-seed to Series B-stage blockchain projects.

Headquarters: Singapore
The number of investments made in 2024: 26
Overall portfolio count: 73
Key focus sectors: Blockchain, high-tech, fintech, consumer, enterprise applications, gaming, mobile, business services, edutech, enterprise infrastructure, media & entertainment, and semiconductors.
Key target markets: The United States, Singapore, China, the United Kingdom, Canada, the Cayman Islands, Indonesia, and Switzerland.

DWF Labs

A VC fund investing in Web3 technology startups.

Headquarters: Singapore
The number of investments made in 2024: 25
Overall portfolio count: 58
Key focus sectors: Blockchain, high-tech, fintech, enterprise applications, enterprise infrastructure, gaming, consumer, mobile.
Key target markets: The United States, Singapore, the United Kingdom, China, Finland, Germany, India, Switzerland, Canada, France, Sweden, and Thailand.

Temasek Holdings

A PE and VC firm focused on multiple sectors.

Headquarters: Singapore
The number of investments made in 2024: 21
Overall portfolio count: 494
Key focus sectors: High-tech, environment tech, consumer, energy tech, retail, enterprise applications, fintech, food and agriculture tech, life sciences, financial services, auto tech, chemicals and materials tech, enterprise infrastructure, transportation and logistics tech, healthtech, semiconductors, auto, business services, consumer goods, media & entertainment, real estate and construction tech, aerospace, maritime and defence tech, blockchain, edutech, environment, gig economy, healthcare, industrial goods and manufacturing, and insurtech
Key target markets: The United States, India, Singapore, China, the United Kingdom, Germany, Sweden, Australia, France, Indonesia, Israel, the Netherlands, Switzerland, and Taiwan.

Also Read: Singapore startup funding dips 26% in Q3 2024 amid global economic challenges

East Ventures

A venture capital fund focused on early-stage startups.

Headquarters: Singapore and Japan.
The number of investments made in 2024: 20
Overall portfolio count: 443
Key focus sectors: Enterprise applications, high tech, consumer, fintech, financial services, retail, food and agriculture tech, healthtech, consumer goods, edutech, environment tech, food and agriculture, life sciences, auto, auto tech, blockchain, energy, environment, healthcare, real estate and construction, semiconductors, and transportation and logistics tech.
Key target markets: Indonesia, Japan, Singapore, India, Switzerland, the United Kingdom, and Vietnam.

Blockchain Founders Fund

A VC-backed startup studio focused on blockchain startups.

Headquarters: Singapore
The number of investments made in 2024: 19
Overall portfolio count: 130
Key focus sectors: Blockchain, high tech, fintech, enterprise applications, consumer, enterprise infrastructure, media & entertainment, financial services, mobile, auto, business services, gaming, insurtech, and telecom.
Key target markets: The United States, the United Kingdom, Switzerland, Singapore, Australia, Canada, France, Germany, India, the Netherlands, and the United Arab Emirates.

Wavemaker Partners

A VC firm focused on early-stage tech companies.

Headquarters: Singapore and the US
The number of investments made in 2024: 18
Overall portfolio count: 438
Key focus sectors: High tech, consumer, enterprise applications, transportation and logistics tech, fintech, food and agriculture tech, retail, auto tech, energy tech, environment tech, business services, gig economy, travel and hospitality tech, aerospace, maritime and defence tech, enterprise infrastructure, industrial goods and manufacturing, and real estate and construction tech.
Key target markets: Singapore, the Philippines, the United States, New Zealand, Vietnam, India, Indonesia, Australia, Bangladesh, Malaysia, and Pakistan.

Selini Capital

A venture capital fund investment in early-stage startups.

Headquarters: Singapore
The number of investments made in 2024: 17
Overall portfolio count: 19
Key focus sectors: Blockchain, fintech, high tech, consumer, gaming, business services, financial services, and mobile.
Key target markets: The United States, Canada, Japan, Singapore, the United Kingdom, Australia, the British Virgin Islands, the Cayman Islands, China, and Taiwan.

Vertex Ventures

A VC fund focused on multiple sectors.

Headquarters: Singapore
The number of investments made in 2024: 17
Overall portfolio count: 108
Key focus sectors: Enterprise applications, high-tech, consumer, fintech, enterprise infrastructure, retail, financial services, life sciences, auto tech, blockchain, healthtech, transportation and logistics tech, auto, consumer goods, energy tech, environment tech, food and agriculture, food and agriculture tech, gaming, gig economy, industrial goods and manufacturing, media & entertainment, real estate and construction tech, and semiconductors.
Key target markets: India, the United States, Indonesia, Israel, Singapore, Japan, Malaysia, South Korea, and Vietnam.

Also Read: Empowering change: Singapore’s female-led startup success stories

Investible

A VC firm investing in technology companies.

Headquarters: Singapore
The number of investments made in 2024: 15
Overall portfolio count: 131
Key focus sectors: Enterprise Applications, high-tech, consumer, environment tech, chemicals and materials tech, environment, fintech, aerospace, maritime and defence tech, business services, energy, energy tech, food and agriculture tech, healthtech, insurtech, media & entertainment, real estate and construction tech, retail, transportation and logistics tech, and travel and hospitality tech.
Key target markets: Australia, Singapore, and the United States.

Signum Capital

A VC fund focused on blockchain startups.

Headquarters: Singapore
The number of investments made in 2024: 14
Overall portfolio count: 180
Key focus sectors: Blockchain, high tech, fintech, enterprise applications, enterprise infrastructure, consumer, gaming, and mobile.
Key target markets: The United States, Singapore, China, Canada, South Korea, Switzerland, and the United Kingdom.

Saison Capital

A venture capital firm focused on pre-seed to Series B-stage companies.

Headquarters: Singapore
The number of investments made in 2024: 13
Overall portfolio count: 95
Key focus sectors: Fintech, enterprise applications, food and agriculture tech, retail, blockchain technology, consumer, high tech, business services, financial services, transportation and logistics tech, edutech, and gaming.
Key target markets: India, Singapore, the United States, Indonesia, Japan, Vietnam, and the Philippines.

Jungle Ventures

Jungle Ventures is a Singapore-based VC investing in regional and global technology category leaders emerging from Asia.

Headquarters: Singapore
The number of investments made in 2024: 14
Overall portfolio count: Over 50
Key focus sectors: Consumer, B2B, and software
Key target markets: India and Southeast Asia.

SEEDS Capital

A government-backed fund investing in tech startups.

Headquarters: Singapore
The number of investments made in 2024: 12
Overall portfolio count: 124
Key focus sectors: High tech, enterprise applications, transportation and logistics tech, environment tech, food and agriculture tech, consumer, energy tech, aerospace, maritime and defence tech, auto-tech, healthcare, consumer goods, fintech, financial services, food and agriculture, healthtech, industrial goods and manufacturing, life sciences, and real estate and construction tech.
Key target markets: Singapore, Canada, and New Zealand.

ABCDE

A VC fund investing in web3 startups.

Headquarters: Singapore
The number of investments made in 2024: 11
Overall portfolio count: 22
Key focus sectors: Bockchain technology, fintech, high tech, enterprise applications, consumer, business services, gaming, media & entertainment, mobile, and semiconductors.
Key target markets: Singapore, the United States, Cayman Islands, Marshall Islands, Saint Kitts And Nevis, and Switzerland.

Beenext

A venture capital fund focused on early-stage technology startups.

Headquarters: Singapore
The number of investments made in 2024: 11
Overall portfolio count: 245
Key focus sectors: Consumer, enterprise applications, fintech, high tech, food and agriculture tech, retail, environment tech, financial services, transportation and logistics tech, auto tech, auto, business services, chemicals and materials, consumer goods, energy tech, enterprise infrastructure, food and agriculture, gig economy, healthtech, media & entertainment, mining, and travel and hospitality tech.
Key target markets: India, Indonesia, Japan, Singapore, the United States, Bangladesh, and the Philippines.

Comma3 Ventures

A venture capital firm focused on multiple sectors.

Headquarters: Singapore and Taiwan
The number of investments made in 2024: 12
Overall portfolio count: 49
Key focus sectors: Blockchain technology, high tech, fintech, gaming, enterprise applications, enterprise infrastructure, and media & entertainment.
Key target markets: Singapore, the United States, China, Japan, Pakistan, Taiwan, and the United Kingdom.

Play Ventures

A venture capital firm focused on gaming startups.

Headquarters: Singapore
The number of investments made in 2024: 8
Overall portfolio count: 115
Key focus sectors: Gaming, high tech, blockchain technology
enterprise applications, mobile, consumer, fintech, healthcare, retail.
Key target markets: The United States, Finland, Israel, Singapore, Thailand, Turkey, and Vietnam.

Gobi Partners

A VC firm investing in early-stage tech startups

Headquarters: Malaysia
The number of investments made in 2024: 10
Overall portfolio count: 310
Key focus sectors: High tech, enterprise applications, retail, consumer, fintech, auto, auto tech, enterprise infrastructure, financial services, business services, chemicals and materials, energy, gaming, insurtech, and life sciences.
Key target markets: China, Malaysia, Singapore, Philippines, Thailand, Brazil, Indonesia, Pakistan, South Korea, the United Arab Emirates, and the United Kingdom.

NGC

A VC fund focused on blockchain-based startups.

Headquarters: Singapore and China
The number of investments made in 2024: 10
Overall portfolio count: 303
Key focus sectors: Blockchain technology, high tech, fintech, enterprise applications, enterprise infrastructure, gaming, consumer, media & entertainment, and telecom.
Key target markets: The United States, Singapore, the United Kingdom, Australia, Canada, France, Germany, and the Netherlands.

Tenity

An early-stage investor, accelerator and incubator focused on the future of finance.

Headquarters: Singapore and Switzerland
The number of investments made in 2024: 10
Overall portfolio count: 318
Key focus sectors: Fintech, enterprise applications, high tech, environment tech, financial services, enterprise infrastructure, blockchain technology, consumer, mobile, and real estate and construction.
Key target markets: Singapore, the United States, Switzerland, Sweden, China, India, Indonesia, Israel, the Philippines, and Spain.

Genesia Ventures

A VC firm focused on early-stage investments.

The number of investments made in 2024: 10
Overall portfolio count: 145
Key focus sectors: Enterprise applications, high tech, fintech, consumer, aerospace, maritime and defence tech, food and agriculture tech, healthtech, business services, energy, energy tech, enterprise infrastructure, environment, environment tech, financial services, gaming, insurtech, and retail.
Key target markets: Japan, Indonesia, India, Vietnam.

Also Read: AI gold rush: How OpenAI’s Singapore expansion could reshape the startup ecosystem

UOB

A VC firm backed by the United Overseas Bank.

The number of investments made in 2024: 9
Overall portfolio count: 78
Key focus sectors: Blockchain, high tech, fintech, consumer, enterprise applications, financial services, gaming, and mobile.
Key target markets: The United States, China, Indonesia, Singapore, South Korea, and the United Kingdom.

Iterative

A VC fund and accelerator focused on early-stage tech startups.

The number of investments made in 2024: 9
Overall portfolio count: 168
Key focus sectors: Enterprise applications, high tech, consumer, fintech, retail, blockchain technology, transportation and logistics tech, financial services, and real estate and construction.
Key target markets: Singapore, Bangladesh, the United States, Vietnam, Canada, and Indonesia.

AC Ventures

A VC fund investing in tech sectors.

The number of investments made in 2024: 9
Overall portfolio count: 100
Key focus sectors: Consumer, auto tech, high tech, enterprise applications, food and agriculture tech, real estate and construction tech, retail, consumer goods, environment tech, transportation and logistics tech, auto, energy, energy tech, enterprise infrastructure, environment, food and agriculture, gig economy, healthcare, media & entertainment, and travel and hospitality tech.
Key target markets: India, Indonesia, Singapore, Thailand, Bangladesh, Malaysia, and Panama.

JAFCO

A PE and VC fund focused on multiple sectors.

The number of investments made in 2024: 8
Overall portfolio count: 87
Key focus sectors: Business services, enterprise applications, high tech, aerospace maritime and defence tech, fintech, real estate and construction tech, and travel and hospitality.
Key target market: Japan.

Insignia Ventures Partners

A VC firm investing in multiple sectors.

The number of investments made in 2024: 8
Overall portfolio count: 87
Key focus sectors: Fintech, financial services, consumer, enterprise applications, high tech, food and agriculture tech, retail, auto, auto tech, blockchain technology, business services, food and agriculture, healthcare, and real estate and construction tech.
Key target markets: Indonesia, Singapore, Japan, Malaysia, the Philippines, and Thailand.

Singtel Innov8

A venture capital fund backed by Singtel.

The number of investments made in 2024: 7
Overall portfolio count: 106
Key focus sectors: High tech, enterprise applications, enterprise infrastructure, blockchain technology, retail, aerospace maritime and defence tech, auto, auto tech, business services, consumer, fintech, financial services, and healthtech.
Key target markets: The United States, China, Singapore, Australia, Germany, Israel, and Switzerland.

K300 Ventures

A venture capital firm focused on the blockchain sector.

The number of investments made in 2024: 7
Overall portfolio count: 26
Key focus sectors: Blockchain, fintech, high tech, gaming, business services, consumer, and enterprise applications.
Key target markets: Singapore, Vietnam, New Zealand, and Sweden.

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Data credit: Tracxn.

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UK-based measurable.energy, which designs and manufactures AI-powered plug sockets that reduce electricity costs, has secured £4 million (US$5.2 million) in a new investment round.

Vertex Exploratory Fund, a fund under Vertex Holdings (a wholly-owned subsidiary of Temasek), co-led the round along with existing investor and UK-based cleantech VC firm Clean Growth Fund.

Other participants in the round include existing investors Bonheur ASA/Fred Olsen, The RO Group, Vectr7, and Roger Ferguson, a former economic adviser to President Barack Obama and a former Vice-Chair of the US Federal Reserve.

Also Read: On the precipice of energy transition

The investment will accelerate the company’s growth in the UK and international markets ahead of its anticipated Series B fundraising in 2025.

Vertex Exploratory Fund will help measurable.energy expand its presence overseas, particularly in Southeast Asia.

measurable.energy offers a smart plug socket equipped with proprietary hardware and AI-driven software to tackle the significant energy drain from small devices — those appliances that remain plugged in and running even when they’re not in use.

In offices, plug power accounts for up to 40 per cent of total electricity usage and around half of it gets wasted. The startup’s technology aims to tackle this.

Its smart sockets are equipped with sensors and communication technology that automatically identify and monitor the usage patterns of connected devices. They use machine learning to analyse when plug-power devices are idle or inactive. This analysis helps determine usage patterns and when power consumption can be safely turned off.

The smart socket automatically turns off power for devices not in use (and backs them on when they are). This eliminates unnecessary energy consumption without requiring user manual intervention.

By stopping the power flow to inactive devices, measurable. energy’s solution helps users save on their energy bills, reduce overall power consumption, and lower carbon emissions.

measurable.energy’s main business lies within the construction and commercial real estate sectors, with growing demand from the public sector, hospitality, university campuses and NHS hospitals.

Also Read: 5 reasons why energy management is key to individual and organisational success

Shang-Wei Chow, Managing Director (Investment) at Vertex Exploratory Fund said: “The Vertex Exploratory Fund actively seeks out disruptive frontier technologies with climate as one of the core themes in our investment strategy. measurable.energy stood out as one of the most promising startups in the UK in the climate space, offering a low-touch, intuitive, and compliance-ready solution that effectively reduces power waste. The company is at the forefront of providing the tools necessary to drive positive change and the Vertex Exploratory Fund is proud to partner with them on this journey.”

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In the ever-evolving landscape of finance, understanding asset classes is akin to mastering the fundamental building blocks of successful investing. As we navigate through an increasingly complex financial world, where traditional investment vehicles coexist with cutting-edge digital assets, the importance of grasping these core concepts cannot be overstated.

This article serves as your comprehensive guide to asset classes, offering invaluable insights that will empower you to make informed investment decisions and construct a robust, diversified portfolio.

From the steady income streams of bonds to the potential high returns of equities, from the tangible security of real estate to the digital frontier of cryptocurrencies, we’ll explore the multifaceted world of asset classes. We’ll delve into their defining characteristics, examine their roles in modern investment strategies, and uncover how they can work in harmony to help you achieve your financial goals.

Whether you’re a seasoned investor looking to refine your strategy or a newcomer seeking to build a strong foundation for your financial future, this exploration of asset classes will equip you with the knowledge to navigate the markets with confidence. So, let’s embark on this journey of financial discovery, unraveling the intricacies of asset classes and unlocking the secrets to effective diversification in the modern investment landscape.

Understanding asset classes: A guide to effective diversification and modern investment strategies

An asset class refers to a group of financial instruments that share similar characteristics and exhibit comparable behaviour in the marketplace. These instruments are categorised based on their risk-return profiles, regulatory frameworks, and underlying economic drivers. Understanding asset classes is crucial for effective portfolio diversification and risk management.

Defining characteristics of an asset class

• Risk and return profile: Financial instruments within an asset class tend to have similar risk and return characteristics. For instance, stocks are generally considered riskier but offer higher potential returns compared to bonds.
• Regulatory environment: Instruments in the same asset class are often subject to similar laws and regulations. For example, stocks are regulated by securities laws, while real estate investments are governed by property laws.
• Market behaviour: Assets within a class tend to respond similarly to economic and market conditions. This is due to their shared underlying drivers, such as interest rates, inflation, or commodity prices.
• Liquidity: Asset classes can be categorised based on their liquidity, which refers to the ease of buying and selling the instruments. Stocks and bonds are generally more liquid than real estate or alternative investments.

Also Read: Amidst the current crypto chaos, here’s one asset class that is worth your attention

Common asset classes

• Equities (stocks): Equities represent ownership in publicly traded companies. They offer the potential for capital appreciation but are generally considered riskier investments.
• Fixed income (bonds): Bonds are debt instruments issued by governments, corporations, or municipalities. They provide a fixed stream of income (interest payments) and the return of principal upon maturity.
• Cash and cash equivalents: This asset class includes highly liquid investments, such as money market funds, Treasury bills, and bank deposits. They offer low risk but also low returns.
• Real estate: This asset class includes residential, commercial, and industrial properties, as well as real estate investment trusts (REITs). Real estate investments can provide income through rental yields and potential capital appreciation.
• Commodities: Commodities are physical goods, such as precious metals, energy resources, and agricultural products. They can serve as a hedge against inflation and offer diversification benefits.
• Cryptocurrencies and blockchain assets: With the rise of blockchain technology, cryptocurrencies like Bitcoin and Ethereum have emerged as a new asset class. These digital assets operate on decentralised networks and offer potential for capital appreciation but with high volatility and regulatory uncertainty.
• Exchange-traded funds (ETFs): ETFs are offered on multiple asset classes from traditional investments to so-called alternative assets like commodities or currencies.

Diversification across asset classes

Effective portfolio diversification involves allocating investments across different asset classes. This strategy aims to reduce overall portfolio risk by combining assets with low or negative correlations. For example, stocks and bonds often have a negative correlation, meaning that when stock prices fall, bond prices tend to rise, and vice versa. By holding both asset classes, investors can potentially mitigate the impact of market fluctuations on their portfolios.

Asset allocation strategies

Asset allocation strategies involve determining the appropriate mix of asset classes based on an investor’s risk tolerance, investment horizon, and financial goals. Common strategies include:

• Strategic asset allocation: This involves setting a fixed target allocation for each asset class and periodically rebalancing the portfolio to maintain the desired weightings.
• Tactical asset allocation: This approach involves actively adjusting the asset class weightings based on market conditions and economic forecasts.
• Dynamic asset allocation: This strategy employs quantitative models and algorithms to dynamically adjust asset class exposures based on market signals and risk indicators.

By understanding asset classes and implementing effective asset allocation strategies, investors can construct well-diversified portfolios aligned with their investment objectives and risk profiles.

How does blockchain come into play?

Understanding asset classes is fundamental to effective portfolio diversification and risk management. By categorising financial instruments based on their risk-return profiles, regulatory environments, market behaviour, and liquidity, investors can make informed decisions about asset allocation. Traditional asset classes like equities, fixed income, cash and cash equivalents, real estate, and commodities each offer unique benefits and risks, allowing for a tailored investment approach.

Also Read: Institutional players set sights on crypto: What lies ahead?

The emergence of cryptocurrencies and blockchain assets has introduced a new dimension to asset classes. These digital assets, operating on decentralised networks, offer the potential for significant capital appreciation but come with high volatility and regulatory uncertainty. As blockchain technology evolves, it is likely to create new opportunities and challenges within the investment landscape.

Effective diversification across these asset classes can help mitigate risk and enhance returns. By combining assets with low or negative correlations, investors can reduce the impact of market fluctuations on their portfolios. Strategic, tactical, and dynamic asset allocation strategies provide frameworks for determining the appropriate mix of asset classes, aligning with an investor’s risk tolerance, investment horizon, and financial goals.

Redefining fundraising in the digital economy

In a groundbreaking move to redefine fundraising in the digital economy, I coined the terms Initial Asset Offering (IAO) ©, Initial Real World Offering (IRWO), Initial Real World Asset Offering (IRWAO), and Initial Tokenisation Offering (ITO).

These innovative concepts aim to bridge the gap between traditional assets and the blockchain landscape, providing a structured framework for tokenising real-world assets.

The IAO lays the foundation for asset-backed fundraising, while the IRWO emphasises the importance of integrating tangible assets into the digital realm.

The IRWAO expands this idea further by specifically focusing on real-world assets, ensuring they are accessible and tradeable in a decentralised environment.

Finally, the ITO encapsulates the broader vision of tokenisation, enabling a diverse array of assets to be represented on blockchain platforms, fostering transparency and liquidity in markets that were once limited by traditional barriers.

In conclusion

In the dynamic realm of finance, asset classes form the cornerstone of successful investing, offering a framework for diversification and risk management. This article provides a comprehensive guide to asset classes, from traditional vehicles like equities, bonds, and real estate to emerging digital assets such as cryptocurrencies. Each asset class is characterised by its risk-return profile, regulatory environment, market behaviour, and liquidity, which collectively inform investment strategies.

Understanding these asset classes is crucial for constructing a robust portfolio that aligns with financial goals and risk tolerance. Equities promise potential high returns but come with higher risk, while bonds offer steady income streams. Real estate provides tangible security and potential appreciation, whereas commodities act as a hedge against inflation. The rise of blockchain technology has introduced cryptocurrencies, offering new opportunities for capital appreciation despite their volatility and regulatory challenges.

Diversification across asset classes reduces portfolio risk by leveraging low or negative correlations, such as the inverse relationship between stocks and bonds. Asset allocation strategies—strategic, tactical, and dynamic—help investors determine the optimal mix of asset classes based on individual risk tolerance and market conditions.

As blockchain technology continues to evolve, it reshapes the investment landscape, creating both opportunities and challenges. By staying informed and adaptable, investors can effectively navigate this complex financial world, leveraging asset classes to achieve their investment objectives and build resilient portfolios.

Blockchains were originally designed as an alternative financial system to challenge traditional models. However, as time passed, digital assets began to resemble conventional finance, leading the traditional sector to recognise the benefits of this technology. As a result, blockchains are shifting from a competing framework to a crucial part of the existing financial ecosystem.

Traditional assets and blockchain-based digital assets are merging into a unified global financial landscape. This convergence is a natural outcome of ongoing digitisation, with blockchains and other forms of distributed ledger technology (DLT) providing enhanced infrastructure for storing, transacting, and developing financial services for digital assets.

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