In the fast-paced world of entrepreneurship, startups often stand out as bastions of innovation and disruption. However, one curious trend that emerges is that many of these budding companies offer lower salaries for high-level positions compared to their established counterparts.

This article delves into the underlying reasons for this phenomenon, supported by in-depth analyses and case studies.

Understanding startup salary dynamics

Budget constraints and funding cycles

Startups typically operate under stringent budget constraints, especially in their early stages. According to a 2021 report by Crunchbase, 70 per cent of startups fail due to a lack of capital. Founders must make careful financial decisions, often prioritising product development and customer acquisition over high salaries for executive positions.

Case Study: Buffer

Buffer, a social media management platform, began as a side project with minimal funding. In its formative days, the company offered salaries competitive within the startup realm, yet still below the industry average for established tech companies. Buffer’s co-founder, Joel Gascoigne, stated that their focus was on building a sustainable business without overextending financial resources. This disciplined financial approach allowed Buffer to secure additional funding, paving the way for growth and success down the line.

Analysis

The budgetary constraints faced by startups often lead them to adopt a “pay-for-performance” model. This structure incentivises employees to contribute to the company’s success and aligns their interests with those of the founders, fostering a sense of ownership and commitment.

Equity compensation: A double-edged sword

One of the significant draws of startup employment is the promise of equity compensation. While salaries may be lower, the potential for stock options can be an attractive incentive for many professionals. However, this model carries inherent risks, especially when considering the volatile nature of startups.

Case study: Instacart

Instacart, a grocery delivery startup, initially compensated employees with stock options instead of high salaries. The promise of ownership led to rapid growth in the company’s early years. However, when Instacart went public, many employees found their stock options underwater, leading to dissatisfaction. This example illustrates how the perceived value of equity can fluctuate dramatically, impacting employee morale and retention.

Analysis

A study by the National Bureau of Economic Research revealed that only 20 per cent of startups provide a return on investment to employees through stock options. This statistic underscores the importance of evaluating the long-term viability of a startup before accepting an equity-heavy compensation package. For many employees, the lure of equity can become a double-edged sword, offering potential rewards while also carrying the risk of non-viability.

Also Read: Uncovering the rise and challenges faced by deep tech startups in Singapore

Culture and flexibility as a trade-off

Startups often cultivate a unique company culture characterised by flexibility, innovation, and a flat hierarchy. Many employees choose to accept lower salaries for the opportunity to work in a more dynamic and collaborative environment, where their contributions can have a direct impact on the company’s trajectory.

Case study: Zocdoc

Zocdoc, a healthcare appointment booking platform, fostered a culture of transparency and autonomy. During recruitment, the company highlighted the benefits of working in a fast-paced environment where employees could make impactful decisions. Although their salaries were lower than those at established healthcare firms, many candidates were drawn to the mission and the opportunity to shape the future of healthcare delivery.

Analysis

This cultural dynamic can often attract talent that is more driven by purpose than by compensation. Many individuals are willing to trade off higher salaries for the chance to work on meaningful projects and contribute to a mission they believe in. As a result, startups can build a motivated team with a strong sense of ownership and commitment.

Challenges of global expansion for startups

While startups may possess the potential for rapid growth, many face significant challenges when attempting to expand globally, particularly in the current economic climate.

Economic uncertainty and market volatility

The global economy is currently marked by uncertainty, driven by factors such as inflation, geopolitical tensions, and supply chain disruptions. According to the International Monetary Fund (IMF), global growth is projected to slow down significantly, creating a less favorable environment for startups seeking international expansion.

Case Study: Shopify

When Shopify, a leading e-commerce platform, sought to expand its operations globally, it faced economic uncertainties in various markets. The company strategically focused on markets with lower entry barriers and stable economic conditions, allowing it to build a sustainable global presence without overextending itself. This cautious approach has helped Shopify maintain its growth trajectory while navigating a challenging economic environment.

Analysis

In this volatile economic landscape, startups often lack the financial buffer to withstand downturns, making global expansion a risky proposition. Economic instability can lead to fluctuating demand for products and services, complicating market entry strategies. Startups must carefully assess potential markets and weigh the risks against the potential rewards of entering new territories.

Regulatory hurdles and compliance

Navigating the regulatory landscape in foreign markets poses significant challenges for startups. Each country has its own set of rules governing business operations, taxation, and employment, which can be daunting for emerging companies. Failure to comply with local regulations can result in costly fines and operational disruptions.

Case Study: AirAsia

AirAsia, a low-cost airline, encountered numerous regulatory challenges when attempting to enter new markets across Asia. Each country’s complex aviation laws required substantial time and resources to navigate. While AirAsia ultimately succeeded in establishing a strong regional presence, the hurdles they faced highlight the difficulties startups encounter when scaling operations internationally.

Analysis

Regulatory compliance often requires startups to engage local legal expertise, further straining limited resources. The inability to navigate these complexities can deter startups from pursuing global expansion altogether.

Also Read: 3 ways AI technology can help startups save money

Resource limitations and talent acquisition

Expanding into new markets necessitates substantial resources and talent acquisition. Startups often operate with lean teams, making it challenging to allocate personnel for international expansion. Additionally, the competition for top talent in foreign markets can drive up costs and complicate recruitment efforts.

Case study: Uber

Uber faced significant challenges when trying to expand internationally, particularly in markets like China. The company struggled to compete with local ride-sharing platforms, which had a better understanding of consumer preferences and regulatory landscapes. Ultimately, Uber had to withdraw from the Chinese market, emphasising the importance of local knowledge and resources in successful global expansion.

Analysis

A report from the World Economic Forum indicates that startups frequently struggle to find local talent with the necessary skills to navigate new markets. The inability to hire effectively can hinder their capacity to execute successful strategies and establish a presence in competitive environments.

Technological barriers

The rapid pace of technological advancements can create challenges for startups seeking to expand globally. Differences in technology infrastructure and consumer behaviour can complicate the rollout of products or services in new markets.

Case Study: Revolut

Revolut, a fintech startup, has successfully expanded into multiple countries. However, the company faced challenges adapting to various regulatory environments and consumer preferences. The need for localised solutions required significant investment and adaptation, illustrating the hurdles startups encounter when attempting to scale internationally.

Analysis

For many startups, adapting their technology to meet local demands can be a daunting task. Discrepancies in internet speeds, mobile device usage, and consumer expectations can all impact the success of a product in a new market.

Navigating the startup landscape: Weighing opportunities against challenges

Startups often find themselves in a precarious balancing act when it comes to offering competitive salaries for high-level positions. Budget constraints, equity compensation, cultural dynamics, and growth opportunities all contribute to the lower salary trend. However, the allure of working in a dynamic environment can entice talented professionals to accept these trade-offs.

Moreover, as startups navigate the complexities of global expansion, they encounter numerous challenges, including economic uncertainty, regulatory hurdles, resource limitations, and technological barriers. Understanding these factors is crucial for aspiring entrepreneurs and professionals considering a career in startups.

In conclusion, while the startup landscape offers unique opportunities for growth and innovation, it is essential for individuals to weigh the potential rewards against the inherent risks involved in this dynamic sector. For many, the journey of contributing to a startup’s success can lead to invaluable experiences that pave the way for future achievements in their careers. By acknowledging the challenges and adopting strategic approaches, startups can position themselves for sustained success in an increasingly competitive global market.

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In a rapidly digitising landscape, Asia is facing an onslaught of cyber threats. But innovation and resilience is helping the region set new standards in cybersecurity.

Cybersecurity often lurks in the shadows—essential yet frequently overlooked. However, its significance cannot be understated. The recent CrowdStrike incident serves as a stark reminder: a single buggy update brought millions of systems worldwide to a halt. Had a malicious actor been involved, the fallout could have been catastrophic.

While its role is crucial, the public often misunderstands cybersecurity. At its core, it’s about four things: protection, detection, recovery, and compliance. And while it may not always grab headlines, it’s a booming industry, especially in Asia. Mordor Intelligence projects that the Asia Pacific’s cybersecurity market will hit US$124.05 billion by 2029, up from US$65.28 billion in 2024, driven by the rapid digitisation of businesses and the proliferation of connected devices​.

APAC was the most attacked region globally in 2022 and only ceded that top spot to Europe in 2023, according to the IBM X-Force Threat Intelligence Index. Still, it remains one of the most targeted areas, accounting for 23 per cent of global cyber incidents in 2023​. As digital transformation accelerates across Asia, the region’s networks and emerging technologies are prime targets for cybercriminals.

Protection: Strengthening digital defences

Protection is the frontline in cybersecurity, and businesses across Asia are getting creative with their strategies—they are embracing artificial intelligence, machine learning, and other advanced technologies to safeguard critical infrastructure. The key reason? A surge in IoT and machine-to-machine (M2M) connections, which has further driven the need and demand for robust cybersecurity solutions.

Singapore, a key player in Southeast Asia’s business ecosystem, has shown that a proactive approach can work. The Cybersecurity Agency of Singapore (CSA) reported a 3.6 per cent drop in ransomware cases in 2022, even as incidents climbed globally. The agency attributes this success to its focus on cyber hygiene and enhanced detection systems. Accordingly, Singapore’s example proves that investing in preventive measures and strong defence strategies can lower the risk of cyberattacks.

Detection: Timely identification of threats

As cyber threats grow increasingly complex, the urgency for real-time detection is growing by the day. Across Asia, companies are turning to advanced systems in a race to catch vulnerabilities before they’re exploited. But the sheer volume of threats is staggering. Vectra AI’s 2023 threat detection report reveals that nearly 71 per cent of security operations centre (SOC) analysts admit their organisations may already be compromised—and they just don’t know it yet. Worse still, over two-thirds of SOC alerts are likely being ignored each day, simply because teams are overwhelmed by the relentless flood of alerts.

Also Read: Uncovering the rise and challenges faced by deep tech startups in Singapore

The IBM X-Force 2024 report paints an even starker picture: the use of infostealers surged by 266 per cent, as attackers pivoted from phishing to identity theft and the exploitation of stolen credentials​. This shift means cybercriminals are increasingly targeting personal data to breach systems. While phishing remains prevalent—Singapore reported 8,500 phishing attempts in 2022​—the 44 per cent drop in phishing activity globally points to more sophisticated attack methods​. It’s a reminder that detection systems must evolve as tactics do.

Recovery: Reducing the impact of cyber breaches

Once a breach occurs, swift recovery is essential. According to an IBM report, the global average cost of a data breach has climbed by 10%, reaching USD 4.88 million in 2024. With businesses becoming increasingly reliant on digital infrastructure, their ability to recover swiftly from attacks will make or break them.

Countries like Vietnam, Indonesia, and Thailand have seen sharp rises in ransomware incidents, with Thailand reporting over 109,000 incidents in 2023, according to Kaspersky​. This escalation underscores the urgent need for recovery strategies that prioritize data encryption and rapid service restoration. For industries like manufacturing and finance, which are often in the crosshairs of cybercriminals, these efforts are vital to limit both financial and operational damage.

Compliance: Proactive with regulation and oversight

Compliance has become a cornerstone of cybersecurity in Asia—and for good reason: it works. Governments across the region are stepping up with tougher policies to ensure businesses meet the highest data protection standards. Singapore, again, stands out as a model for how proactive oversight can drive real results. The CSA reported a 13 per cent drop in infected systems in 2022, thanks to a mix of strong regulatory frameworks, a dedicated code of practice, and various programs that keep the nation’s digital defences sharp.

Meanwhile, China is following a similar path, tightening control over data flows and cybersecurity practices. New regulations are forcing companies to adopt stronger compliance measures, not just to avoid penalties but also to align with broader cybersecurity strategies. Across Asia, businesses must therefore be proactive about exploring compliance frameworks—doing so will help them remain resilient and secure in an increasingly complex digital landscape.

Cybersecurity in Asia has shifted from just being a protective measure to something much bigger—anticipating what’s next. The region’s cybersecurity market is set for rapid expansion, and with cybercrime damages predicted by research firm Cybersecurity Ventures to hit USD 10.5 trillion globally by 2025​, the stakes are higher than ever. Vigilance and innovation aren’t just needed—they are essential.

At GITEX Asia 2025, the brightest minds in cybersecurity will gather to showcase cutting-edge solutions and discuss strategies for navigating the future of digital defence. Join us from April 23–25, 2025, at Marina Bay Sands, Singapore, and be part of the conversation shaping the next wave of cybersecurity innovation.

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Khazanah Nasional’s Dana Impak to launch initiatives to advance the national venture capital ecosystem

Malaysia’s sovereign fund, Khazanah Nasional, will launch new programmes to advance its venture capital and innovation ecosystem.

Also Read: Antler partners with Khazanah, to invest in 30+ Malaysian startups over next three years

The initiatives are the Emerging Fund Managers’ Programme (EMP) and the Regional Fund Managers’ Initiative (RMI) under the National Fund of Funds(NFOF).

With the NFOF’s capital commitment, EMP aims to signal stronger confidence to prospective fund investors in investing in fund managers who have the potential to be regionally competitive. Thereafter, the startup ecosystem will benefit from crowding-in of private and other capital into these managers, which in turn will boost the presence of innovation-driven startups in Malaysia.

Scheduled to commence in November 2024, the EMP will be opened to all Malaysian General Partners, focusing on VC fund managers raising their first, second, or third fund—based in Malaysia or overseas.

The RMI, on the other hand, represents the NFOF’s initiative to attract international fund managers who are committed to enriching the ecosystem, including supporting the growth of Malaysian startups to be regional and global players, as well as facilitating the redomiciling of global companies in the country to expand local job capabilities, attract talent and deepen innovation.

Also Read: Khazanah, CGC Digital invest in Funding Societies

“With the launch of EMP, we aim to ensure the continued growth of our local VC fund managers, and we see the RMI as another critical step in our commitment to foster a dynamic VC ecosystem in Malaysia,” Khazanah MD Dato’ Amirul Feisal Wan Zahir said. “As innovation is borderless, the availability of capital, talent and technology will determine the future of Malaysia. This is why the NFOF will focus on the creation of local champions under the EMP while attracting international capital and partners. These efforts will enable the fusion of local and international expertise, perspectives and knowledge to spur a vibrant ecosystem that fuels progress and advancements.”

These initiatives follow Khazanah’s acquisition of Malaysia Venture Capital Management and Penjana Kapital in July this year.

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You’ve completed your detailed customer journey maps and utilised AI to automate and analyse user journeys for a newly launched service within your existing portfolio. But somehow, there is less traction than you had imagined. Customers are unhappy, and potential customers aren’t convinced.

“What might be missing?” you might ask.

In an age that’s super-charged with data, we have the ability to track almost every single movement, interaction and touchpoint of our customers. There is sometimes a desperation of wanting our customers to do what we want them to do <what’s good for our business> and eventually say yes to us<buy, purchase, subscribe>.

But are we really finding the signal in the noise?

Out of habit and convenience, are we increasingly categorising people like items on a shelf? With an increase in hyper-personalisation fuelled by AI capabilities, might we be adding more items and more shelves to replace the humans who are our customers?

“Our plan is to send a survey to 1,000 people instead of spending an hour each speaking to 10-15 real customers. That way we save time, resources and budget while still getting similar results! So why spend time speaking with customers? There’s no time for that.” 

These are some of the remarks or questions that I encounter while facilitating workshops on Design Thinking or Jobs To Be Done. According to McKinsey, “Customer surveys, which have long served a foundational role in data collection, are waning in effectiveness as response rates decline.” This trend highlights the growing need invest more time in uncovering the progress that individuals are trying to make in their lives.

There is a fine balance that needs to be struck between the magic of AI and the wonder of human centred innovation. According to Forbes, if the balance is tilted too far towards AI, organisations may end up losing customers. “As companies strive for efficiency in support, have they inadvertently made the customer experience worse? Spending on AI and automation would be justified if it actually solved issues more quickly and boosted customer satisfaction. Instead, the data suggests the move toward AI is actively repelling consumers.”

Also Read: 3 ways AI technology can help startups save money

What if the script was flipped and the control of AI was given to customers instead? In the case of IKEA, they are “unleashing the power of generative AI to give customers even more power when it comes to designing their ideal homes.” However, a purpose that lies at the heart of their innovation process is “the need to prioritise human values, asking if actions respect human agency and dignity and if a people-focused approach is central to all initiatives.” This is part of their digital ethics policy that was launched in 2023.

Investing time in honing the craft of unpacking qualitative insights overlaid with quantitative data would help us better understand what customers want to achieve and how they might go about achieving it.  This is when job maps and customer journey maps might help to bridge the divide between human needs and technology driven journeys. I have created a free template in Miro can help your team begin the journey of bridging the gap between the how and what.

Customer journey maps and job maps

A customer journey map is a fantastic way to show us what customers do. While it provides huge value to organisations, it leaves a blind spot on why customers do what they are doing. This is where job maps can take us further into the journey of finding the signal within the noise.

According to Jim Kalbach, a job map is not a customer journey map. “The aim is not to document how people come to your solution, decide to purchase and stay loyal.” That’s not their job to be done. Instead, a job map is a view into the behaviours and needs of individuals in the context of their daily lives. That may or may not include your solution.” (Kalbach, The Jobs To Be Done Playbook, 2020).

But why should one bother if it may not include my solution? This is where combining the what — a job map — with the how — a customer journey map — could help create a more comprehensive view of your customer’s entire journey within the context of their lives.

Job maps help us navigate from why to where to, giving us the ability to view the entire picture through the lens of a customer. Investing time in understanding their hopes, fears and what progress means in their lives, we will be able to unlock avenues of innovation at multiple levels.

Also Read: How should non-tech companies approach AI?

Steps to consider

• Recognise the lure and limitations of relying on or prioritising purely quantitative data analysis, such as surveys.
• Invest in spending time with your customers to uncover their motivations and underserved needs.
• Create job hierarchies to uncover pockets of innovation at each level.
• Develop job maps to keep your customer’s needs at the heart of your business.
• Use AI as a co-pilot, not just for prediction (highly risky) or completing tasks.

In the never-ending quest for being truly customer centric and trying not to “centricity-wash” an organisation, having a shared language around needs and motivations helps to guide businesses closer towards their North Star Metric.

Organisations that are able to balance the patient craft of uncovering undermet needs and prioritising based on where underserved opportunities lie, while simultaneously accelerating outcome-driven-innovation and adopting new ways of working with AI, may find themselves more relevant to evolving audiences.

As we navigate this brave new world, let us not forget the fundamental truth that has always underpinned successful business: at the heart of every transaction is a human need waiting to be met. In understanding and serving that need lies the true path to innovation and growth.

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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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Dear reader,

The global rise in electric vehicle (EV) sales in September highlights the growing dominance of the sector, driven largely by China and a recovering European market.

China’s remarkable 47.9% sales increase signals its commitment to solidifying a global leadership role, despite cooling global demand and rising EU import duties.

Meanwhile, Europe’s resurgence—boosted by strong growth in the UK, Germany, and other key markets—reflects the continent’s ongoing push for green mobility, even as countries like France and Germany adjust their subsidy policies.

While the US lags behind, with modest growth of just 4.3%, the upcoming election introduces uncertainty into the market’s trajectory. As policy shifts loom, the true test will be whether the country can match the pace set by global leaders in EV adoption.

Looking ahead, Rho Motion’s revised forecasts for European EV sales—down by nearly 20% for 2030—suggest a more cautious outlook, influenced by evolving market conditions and policy changes.

However, as intermediate emissions goals come into play, Europe remains a battleground for automakers competing for market share in the green transition, with Chinese manufacturers pressing forward despite trade barriers. The coming months will reveal whether growth can sustain the momentum in this pivotal sector.

Sainul,
Editor.

NEWS & VIEWS

Lazada eyes US$100B GMV by 2030 in SEA
To pursue this goal, the Singapore-based e-commerce platform has partnered with luxury brands, including Armani DG, to strengthen its position in Southeast Asia’s e-commerce market.

Global EV sales up 30.5% in Sept as China shines, Europe recuperates
EVs sold worldwide reached 1.69M in September; Sales in China jumped 47.9% in September and reached 1.12M vehicles, while in the United States and Canada, they were up 4.3% to 0.15.

TikTok’s research reportedly acknowledges negative effects on teens
The company’s own research shows that “compulsive usage correlates with a slew of negative mental health effects like loss of analytical skills, memory formation, contextual thinking, conversational depth, empathy, and increased anxiety.”

Singapore’s ticketing platform GlobalTix closes US$4.97M Series B round
The investors include Tin Men Capital, SEEDS Capital, and ORZON Ventures; GlobalTix is one of the largest ticket aggregators in Southeast Asia, hosting over 150,000 experiences and 12,000 travel agents and issuing over 12M tickets annually.

Filipino lending startup OneLot raises US$4M pre-seed funding
The investors include 468 Capital, Kaya Founders, Crestone Venture Capital, 21yield, and Founders Launchpad; OneLot specialises in offering working capital financing exclusively to used car dealers.

Singapore’s XA Network expands to Africa
XA Africa aims to connect exceptional African tech founders with seasoned investors and industry experts, primarily from global and regional technology companies, to provide not just capital but also the guidance and support needed to scale their ventures.

Malaysia’s Gamuda launches AI Academy
Gamuda Al Academy offers a comprehensive three-month curriculum focusing on full-stack Al development, including front-end, back-end, and Al technologies; The programme is open to students, graduates, industry professionals, and start-up founders.

Singapore’s Vouch raises US$2.5M for AI development
Vouch is a hotel operations management solutions provider; By analysing guest behaviour, Vouch AI anticipates what guests want and recommends high-performing room service pairings, upgrades, and add-ons.

Indian AI robotics startup Perceptyne secures US$3M seed funding
Endiya Partners and Yali Capital co-led the round; Perceptyne’s products have features including computer vision, advanced AI algorithms, and adaptive sensing tech designed for assembly and packaging applications in the automotive and electronics industries.

MYStartup launches pre-accelerator cohort 5 to support early-stage startups
The programme will run from October 2024 through February 2025, providing an intensive, hands-on learning experience designed to accelerate startup growth and development.

OneCFO bags US$500K to automate financial management for Philippine SMEs
The investment will be used to develop its suite of B2B financial management apps and hire people; OneCFO has integrated cloud accounting systems, ERPs, payroll software, business intelligence, and other software into one platform.

Apple might release a US$2K Vision headset next year
The headset combines the digital and real worlds; Apple will use cheaper materials and a less powerful processor, and it will not include the EyeSight feature that shows a user’s eyes outside the headset.

FEATURES & INTERVIEWS

Investing in climate tech: Why investors should focus on impactful, low-hanging fruits
According to SOSV Founder Sean O’Sullivan, when it comes to climate tech investment, investors should also realign their expectations.

From admin headache to AI-driven insights: How Earlybird AI empowers SME founders
Just out of stealth mode, Earlybird mainly caters to solopreneurs and founders of early-stage startups and e-commerce firms.

FROM THE ARCHIVES

The extraordinary tale of a Filipino geek who swam against the odds in life
Clark Urzo is one of the two geeks from Southeast Asia to make it to Pioneer, a programme run by Daniel Gross and funded by Marc Andreessen.

Book Excerpt: How I survived an elevator pitch session with Tim Draper
In this book, Zopim Founder Royston Tay shares his experience pitching his startup idea to legendary investor Tim Draper.

Mastering the art of fundraising: Winning strategies to engage investors
The VC financing landscape is constantly evolving so new businesses must know how to successfully approach investors while fundraising.

7 trends changing the reality of immersive gaming
Immersive gaming is now a profession for competitive e-sports organisations and players of all backgrounds.

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

Women in tech have leaned in enough. This is what we should do instead
Lack of equal opportunities has always been a key issue faced by women in tech. We can never solve this through motivational speeches.

How AI enhances content creation and sales strategies for live commerce in the Philippines
The rapid growth and profitability of live commerce have driven brands to seek innovative ways to maintain a competitive edge.

How is fintech different in Asia
The faster fintech develops in Asia, the richer the local digital landscape becomes, leading further spread of digital financial services.

Are traditional conglomerates in the Philippines finally embracing corporate investing?
What stops the big conglomerates in the Philippines from getting their skin into the startup game? This article will answer that.

Will digital banks take off in the Philippines?
Technology is now turning the Philippines’ unbanked population into a viable demographic with enormous potential for financial institutions.

Beyond the hospital: Challenges and opportunities in Indonesian healthtech scene
Healthtech in Indonesia may have been a niche sector at the moment, but there is plenty of room for startups to grow.

Finding the right co-founder involves having tough conversations–and a great sense of humour
On a personal level, a co-founder can provide invaluable emotional support and motivation during the highs and lows of building a company together, especially at the start when one has to do everything oneself.

Essential tips for scaling in Southeast Asia: 4 key insights to consider
Southeast Asia is not uniform but is a region with distinct user bases which imposes a challenge for tech companies who want to scale up.

Uncovering the rise and challenges faced by deep tech startups in Singapore
While considerable work has been done to grow the deep tech startup scene in Singapore, it remains far from the finished article.

Between data and gut feeling, which one do Singaporean customers trust to make decisions?
Qlik’s report also found that Generation Zs are more wary about the privacy concerns that surround technology.

How behavioural science is transforming corporate learning
In the context of corporate learning, behavioural science principles can be adapted to nudge people to accept change positively.

The art of letting go and how it makes you an even better entrepreneur
As an entrepreneur, are we agile enough to let go of our “grit” and change direction when the twists and turns call for it?

How to craft your startup’s financial projections
Creating a financial projection is not about accuracy; it is about understanding the founder’s thought process.

Unlikely mentors: What kids can teach you about entrepreneurship
I distilled some key habits and characteristics that business owners can develop to thrive in entrepreneurship.

THOUGHT LEADERSHIP

A decade of Japan’s mandatory stress checks: Why work-related mental health is still declining?
Japan’s decade of mandatory stress checks shows that improving workplace mental health demands ongoing innovation, cultural change, and empathy.

Storytelling in diverse markets: How you can effectively market as you expand
Creating brand storylines in SEA’s diverse markets can be challenging; here are tips on highlighting your company’s strengths for customers.

Strategic communication: A core element in building and leading a business
Strategic communication is not merely reactive but a forward-looking function that builds momentum and resilience.

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Image Credit: 123RF.

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OneLot, a Filipino lending company for used car dealers in the Philippines, has raised US$4 million in pre-seed funding led by 468 Capital.

Kaya Founders, Crestone Venture Capital, 21yield, Founders Launchpad, and unnamed angels also participated.

The company plans to use the funding to extend its services to more dealers as well as accelerate product and AI development.

OneLot was founded in 2023 by Harm-Julian Schumacher, Tommy Campos, and Subramaniam Srinivasan. The startup addresses the most pressing problem used car dealers face: the lack of access to credit.

Also Read: South Asia, SEA rank high in potential for fintech lending in Asia: Study shows

OneLot’s loan products are geared towards car dealers’ buy-and-sell cycles. It handles loan applications and disburses capital “in a matter of hours” by leveraging an AI-enabled underwriting algorithm.

“Our platform was designed with the dealer’s needs in mind, avoiding the lengthy and cumbersome procedures typical in financing. Thanks to our AI-driven processes, we offer higher credit limits, more competitive interest rates, and faster fund disbursement than any other provider in the market,” said OneLot CTO Srinivasan.

Since its launch earlier this year, OneLot claims it has disbursed over US$1.3 million in loans, financed over 200 cars, and has experienced 10x revenue growth through the second and third quarters of 2024.

“We saw the potential of OneLot to address significant problems in the rapidly growing used car market. The team combines in-depth knowledge about car dealerships and SME credit in the Philippines with decades of experience building digital products and AI,” said Guilherme Steinbruch, Partner at 468 Capital.

The Philippines is home to one of the fastest-growing used car markets in the world today. Strong growth in car sales is buoyed by rising income levels, greater demand from middle-income groups, and poor availability of public transportation.

Also Read: How Generative AI will advance embedded lending

This US$8 billion industry is dominated by small dealerships and family-run businesses, which account for more than 90 per cent of car transactions. Meanwhile, banks only play a limited role in used car and dealership financing, leading to three times lower finance rates than in Europe or the US.

The post OneLot secures US$4M to drive AI-powered lending for Philippine used car dealers appeared first on e27.

Singapore-headquartered GlobalTix, a leading ticket aggregator for the tourism industry in Asia Pacific, has concluded its SGD6.5 million (~US$5 million) Series B funding round led by Tin Men Capital.

SEEDS Capital, ORZON Ventures, and an undisclosed family office in the US also joined.

The fresh funding will fuel GlobalTix’s expansion plans. A key focus will be exploring and implementing AI-driven solutions to enhance its technology offerings further.

Also Read: Tin Men Capital injects US$9M more into Singapore’s travel-tech company GlobalTix

Chan Chee Chong, CEO of GlobalTix, stated, “This investment will enable us to strengthen our foothold in APAC and expand our market access. We will also deploy AI and predictive analytics to identify trends and optimise pricing for our partners in the tours and activities space, and enhance traveller interactions with attractions.”

Established in 2013, GlobalTix is a reservation and distribution platform in the Asia-Pacific region focused on providing end-to-end solutions for attractions, tours, and activities. It also enables the same partners to connect tourist activities to travel agents around the globe seamlessly

GlobalTix is used by renowned attractions like Mount Faber Leisure Group, Taman Safari Indonesia, Mandai Wildlife Group, and National Gallery Singapore, and partners with industry players such as Singapore Airlines and many global online travel agents.

The platform hosts over 150,000 experiences, 12,000 travel agents, and over 12 million tickets annually. It has ten offices across Asia, including China, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Thailand, and Vietnam.

Tin Men co-founder and Managing Partner Jeremy Tan said: “Since Tin Men Capital invested in 2018, GlobalTix has grown to become the largest tour aggregator in SEA while becoming cash flow positive. Their performance, capital efficiency and resilience has inspired investor confidence to return in this round of funding to scale further.”

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Singapore-based startups secured US$397 million in Q3 2024, a 26 per cent decline from US$536 million raised in the corresponding quarter last year and a 9 per cent uptick over the previous quarter, according to Tracxn’s Geo Quarterly Report.

In Q3 (July 01 to September 30) 2024, late-stage investment rose 48 per cent to US$80 million from US$53.9 million in Q2 2024. Early-stage funding fell 8 per cent to US$237 million.

Also Read: Healthtech, edutech dominated SEA’s funding scene in past 5 years: Tracxn

On the other hand, seed-stage financing grew 56.5 per cent to US$80.3 million, driven by small-ticket rounds.

No US$100 million+ rounds were recorded in Q3 2024 in Singapore. No new unicorns emerged during the period, similar to the scenario in Q3 2023.

Fintech, enterprise applications, and retail were the top-performing sectors in Q3 2024.

Fintech raised US$208 million in Q3 2024, a 10 per cent drop over Q3 2023. The enterprise application segment funding rose 55 per cent to US$157 million in Q3 2024 from US$101 million in Q3 2023.

At the same time, the retail sector witnessed a massive 229 per cent increase in funding in Q3 this year to US$97 million in Q3 2024 from US$29.5 million in the corresponding quarter last year.

The number of acquisitions in Q3 saw a slight drop to 13 from 14 in the corresponding quarter last year. However, this is an upward move from six acquisitions in Q2 2024.

Only two Singapore tech startups have gone public this year so far, one each in Q1 and Q2 of 2024. Q3 did not witness any IPOs.

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

Wavemaker Partners, Antler, and Entrepreneur First were the all-time top investors observed in Q3 2024. Antler, Orbit Startups, and East Ventures took the lead in seed-stage investments, while Peak XV Partners, SEEDS Capital, and Temasek were the top early-stage investors.

In Asia, Singapore’s tech startup ecosystem ranks fourth after China, India and Israel based on all-time funding to date. Singapore witnessed its peak startup funding in Q3 2021 (US$4.1 billion), after which a downward trend was observed. The decline can be attributed to a notable shift in investor interest due to global economic challenges, including macroeconomic conditions and geo-political issues.

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As someone who lived in East Asia for most of my life and learned about Bitcoin in 2015, I had the opportunity to observe the rise of the crypto industry in my region from the very beginning. First, these were pretty local projects with a small audience and trading volume, neglected by traditional institutions. Then, major centralised exchanges emerged, showing that crypto could become the next big thing. 

And here we are in 2024: Eastern Asia is the sixth largest crypto economy worldwide, accounting for nearly nine per cent of on-chain value received between July 2023 and June 2024. A multitude of factors — from concerns about TradFi to the struggling real estate market — have made crypto a popular asset class in the region, even in areas with the strictest regulations. 

There is now a discussion about whether East Asia will remain a strong player in the crypto niche. With China imposing strict restrictions on the sector and other regions strengthening their positions, the matter has taken on even more importance. 

As a patriot of Asia, I firmly believe in the potential of my region. As an independent observer, I clearly see the exact reasons why the crypto industry here will continue to thrive. As the CEO of a leading cryptocurrency exchange, I am convinced that CEXes will continue to drive the market forward, serving as an entry point for the next billion crypto users.

What’s behind Eastern Asia’s crypto market growth?

Eastern Asia has always boasted a strong IT sector: industry giants like Samsung, Sony, and Tencent have been born and thriving here for decades. A skilled workforce, strong manufacturing base, and high technology adoption have fuelled this growth, making the region one of the world leaders in internet and smartphone penetration rates. The same factors helped shape a vibrant crypto market in the region. 

Also Read: Does investing in Bitcoin still make sense?

Eastern Asia is home to some of the world leaders in crypto adoption, including Hong Kong, Japan, China, and South Korea. The latter tops the list: South Korea received US$130 billion of on-chain value between June 2023 and June 2024, and every tenth country resident is an active crypto exchange user. Both individuals and institutions have turned to digital coins in South Korea: as the population questioned traditional finance and embraced crypto as an alternative asset class, corporations followed suit. Giants like Samsung embarked on their blockchain journey, which increased trust in the industry and further boosted the crypto adoption rate.

High demand for crypto in South Korea goes with the relative isolation of the country’s market, creating phenomena like Kimchi Premium: Bitcoin on local exchanges often costs more than on the global market. As a result, Koreans flock to global exchanges — a trend that has intensified since local platforms listed USDT.

Strong interest in digital assets in Eastern Asia withstands regulatory challenges. In China, access to crypto exchanges was shut down in 2021, but it sparked a rapid rise in over-the-counter platforms and peer-to-peer services. Economic uncertainty and the post-COVID-19 downturn in the real estate market have driven people to seek alternative savings methods, and many have turned to crypto as a fast and low-cost way to transfer value.

The Hong Kong crypto industry also holds great potential for capital inflows. Recently, local authorities approved several Bitcoin and Ethereum ETFs and are now considering new stablecoin regulations, which promise to make them more accessible to investors. Institutional investors recognising the potential of crypto have entered the market. With an 85.6 per cent YoY surge, Hong Kong has become the fastest-growing crypto market in Asia.

Hong Kong is an emerging crypto hub within Greater China. Its well-thought-out policies have transformed it into a thriving environment for the digital asset industry. Hong Kong is open to innovation yet remains focused on strict licensing policies and consumer protection — its success may serve as a gateway to the main China market. 

Centralised exchanges: Driving growth, poised to onboard millions

Centralised exchanges are the most popular category of crypto services in Eastern Asia. They account for nearly 65 per cent of the total on-chain value received in the region, which roughly corresponds to the global level.

Also Read: Are CBDCs better than Bitcoins? Here’s why Asia should bank on them

Much of this volume comes from large transactions, most likely made by professional and institutional investors. In Asia, the share of professional-sized transfers is the highest among all world regions. This category of crypto enthusiasts represents the primary user type of most CEXes.

Here’s what lies behind dry figures: centralised exchanges have arguably been the leading global gateway into digital assets. The crypto economy is not isolated — recognition from the global community is what gives it value. Cryptocurrencies benefit from growing integration with it, and centralised exchanges help build these ties better than anything else.

No other type of product has been able to build such a solid bridge between TradFi and crypto as CEXes: fiat and crypto deposits and withdrawals, trading, token swaps, peer-to-peer exchange, custody solutions, and much more. For retail investors, centralised exchanges are convenient for day trading, long-term savings, and remittances.

For professional traders, exchanges provide a full arsenal of tools to multiply capital. For institutional investors, CEXes serve as a convenient entry point into the market, sparing them from the hassle of self-custody and ensuring compliance when investing in digital assets.

As economic instability worldwide persists, centralised exchanges will continue to act as one-stop platforms for anyone willing to protect and increase their capital. In Eastern Asia and globally, they have helped millions embrace the new digital economy. As CEXes adapt and evolve, they will pave the way for a future where digital assets weave into the fabric of daily financial life.

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In the electrifying modern tech world, semiconductors are central to powering everything from your sleek smartphone to futuristic electric cars. The hot commodity remains the subject of trade wars and is a key economic contributor for most major world economies. Malaysia is making waves in this high-stakes game, evolving from a humble manufacturing hub to a trailblazer in semiconductor innovation. We aren’t just playing catch-up; we are setting the pace.

Semiconductor industry in Malaysia – then and now

Our semiconductor story started in the 1970s with a focus on manufacturing and assembly. Back in the day, the country leveraged its cost-effective labour, sand and silica supply, and prime location to lure in multinational giants. Fast forward a few decades, and Malaysia has upped its game, diving headfirst into advanced integrated circuit (IC) design and research and development (R&D). Malaysia now commands nearly seven per cent of the global semiconductor market with exports hitting a whopping MYR593 billion (US$138 billion) in 2022 and expected to reach MYR1.2 trillion (US$280 billion) by 2030. This tech-savvy transformation, fuelled by hefty investments in infrastructure and technology, has kept Malaysia ahead of the curve.  States such as Penang have played a key role in driving innovation and attracting investment in the semiconductor ecosystem, contributing to Malaysia’s growing global presence in this industry.

One of Malaysia’s secret weapons is its location within the ASEAN region, offering seamless access to major markets across Asia and beyond. Add to that a top-notch infrastructure that ensures smooth production and distribution, and you have got a recipe for success. Just recently, Prime Minister Dato’ Seri Anwar Ibrahim announced a MYR25 billion (US$5.8 billion) allocation in fiscal support to operationalise the three-phase National Semiconductor Strategy (NSS) with targeted incentives.

Also Read: Hong Kong’s ConTech set to soar in Southeast Asia

At the same time, the New Industrial Masterplan (NIMP) 2030, unveiled in 2023, shows Malaysia’s commitment to bolstering the nation’s manufacturing sector by 6.5 per cent annually. It is expected to contribute a whopping MYR587.5 billion (US$137 billion) to Malayia’s GDP by 2023. That is some serious commitment to staying ahead in the tech race.

The Prime Minister further affirmed this during his speech at SEMICON SEA KL 2024: “Today, I offer our nation as the most neutral and non-aligned location for semiconductor production to help build a more secure and resilient global semiconductor supply chain.”

Thriving local semiconductor ecosystem

Malaysia’s supply chain is rock-solid, thanks to a strong pool of local equipment makers. Now, an emerging cluster of companies specialising in design, AI, and IC design is making waves with global ambitions. This dynamic ecosystem is not just boosting Malaysia’s competitiveness; it is positioning the country as a future leader in the semiconductor industry.

Via the various Malaysian ministries and agencies, including Malaysia Digital Economy Corporation (MDEC) and Malaysia Digital (MD) status companies such as Infinecs, D3 Innovation, MaiStorage and Oppstar, have been pivotal in this transformation, pushing the envelope and setting new standards.

Infinecs Systems

Infinecs Systems is a fast-rising player in Malaysia’s semiconductor industry, focusing on IC/SoC design, embedded system design, and prototyping. Since its inception in 2016, they have supported Fortune Global 500 companies in developing cutting-edge technologies, including sub-7 nm finFET technology, which powers applications across edge computing, automotive, cloud infrastructure, and communications. Infinecs invests heavily in R&D and provides high-income opportunities for local engineers. “We employ 100 employees, with 88 per cent being local Malaysians. Of these, 70 per cent earn more than MYR5,000 (US$1,167), and 90 per cent of our high-income employees are skilled local workers,” said Kalai Selvan, CEO of Infinecs Systems.

Also Read: Hong Kong I&T startups gear up in Thailand for global growth

D3 Innovation

D3 Innovation prides itself on being an original design and manufacturing (ODM) player, providing solutions for clients looking to create or upgrade their own Internet of Things (IoT)-enabled products in the industrial, medical, and consumer markets. Its IoT technology enhances smart manufacturing (Industry 4.0), optimises supply chain management through real-time tracking, and helps monitor power consumption for Environmental, Social, and Governance (ESG) compliance. KK Tan, Managing Director, supports this by stating, “We optimise supply chains by providing real-time tracking in the storage system, monitoring building power consumption to achieve ESG and more.”

MaiStorage

MaiStorage, a startup wholly owned by Phison Electronics Corporation, is focused on driving innovation in NAND storage technology. The company designs, manufactures, and delivers advanced NAND controller ICs and storage modules, addressing the high demands of data centres, AI, and the automotive industry. With a mission to lead in NAND innovation, MaiStorage has already set its sights on becoming a successful IPO, serving as a model for industry growth and R&D investment in Malaysia. They recognise that AI is the trend but is often misunderstood; hence, “We have introduced a low-cost on-premise AI solution, aiDAPTIV, to break the entry barrier for AI newcomers,” said KK Yap, GM of  MaiStorage.

Also Read: PriyoShop launches Bangladesh’s first MSME credit card with LankaBangla and Mastercard

Emerging innovators in the scene

Numerous other contributors who play equally vital roles also drive the ecosystem’s success. One standout example is Oppstar, a pioneer in the IC design industry. As the first publicly listed Malaysian IC design company, Oppstar benchmarks itself against global IC design service providers, showcasing Malaysia’s growing capabilities and ambitions in the semiconductor space.

Malaysia’s semiconductor industry’s growth is bolstered by the contributions of local and international firms, research institutions, higher education establishments, and government agencies working in tandem. Through various policies and incentives, government agencies, including the NIMP 2030, play a crucial role in fostering an environment conducive to growth and innovation.

A collaborative environment is essential for sustaining Malaysia’s competitiveness in the semiconductor industry. Penang, often called the Silicon Valley of the East, is home to several key players that drive this collaborative spirit.

Here are some key players in Penang’s semiconductor ecosystem:

• MITI (Ministry of International Trade and Industry): This key ministry promotes trade, industry, and investment in Malaysia. 
• MIDA (Malaysia Investment Development Authority): MIDA provides comprehensive support to investors, including project development, incentive applications, and regulatory compliance.
• Invest Penang: A one-stop investment promotion state agency that provides comprehensive information on Penang’s investment opportunities and facilitates business setup.
• Digital Penang: State agency accelerating digital transformation in Penang while supporting the Penang2030 vision of a family-focused, green, and smart state.
• CREST (Collaborative Research in Engineering, Science and Technology): Connects industry, academia, and government to boost collaborative R&D and talent development. 
• NCIA (Northern Corridor Implementation Authority): NCIA drives the socioeconomic development of the Northern Corridor Economic Region (NCER)
• PSDC (Penang Skills Development Centre): Talent development institution in Penang, providing industry-relevant training and upskilling programmes

The way forward

With regional competitors stepping up, Malaysia must stay sharp and agile. The key? Doubling down on R&D, supercharging talent development, and beefing up infrastructure. Forming stronger alliances with global R&D powerhouses and spotlighting emerging Malaysian tech stars will also be crucial.

Also Read: KINTO boosts brand engagement and ROI with Omnichat

Together with MD status companies like Infinecs Systems, D3 Innovation, MaiStorage, Oppstar, and the MD national strategic initiative, MDEC is transforming the country’s digital landscape by leveraging technology and innovation to drive sustainable economic growth.

As Malaysia continues to build on its strengths and expand its influence, it is set to shore up the global semiconductor arena with MDEC providing strategic intervention via MD status incentives & the various MD programmes, including market access programmes to broaden their international reach, grants such as Malaysia Digital Export Grant (MDXG) and the MD Founders Center of Excellence (FOX) programme. The FOX programme is dedicated to cultivating high-potential startups by providing interventions in six key pillars – policy, business expansion, investments, amplification, talent and mentoring.

MDEC offers various programmes for Malaysia Digital status companies. Apply for Malaysia Digital status here.

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This article is sponsored by Malaysia Digital Economy Corporation (MDEC).

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