In an ideal world, good begets good. Good deeds are lauded, and good behaviour is rewarded. Lending often works the same way. Borrowers with high credit scores are rewarded with low-interest rates, and conversely, those with low credit scores must pay higher interest on their loans.

This is a rather simplistic explanation of risk-based pricing, i.e. a process by which lenders offer different interest rates to different borrowers based on their creditworthiness. Aside from their credit scores, this may also involve assessing the borrower’s employment status, current debt, if any, assets, and so on. As a result, all borrowers for a single credit product will not be offered the same terms and rates.

The concept is by no means new – back in 2018, then deputy governor of the Reserve Bank of India, N S Vishwanathan, said, “Risk-based pricing of loans would need fair assessment and understanding of the risk involved, rather than merely relying on collateral and/or guarantees obtained from stakeholders including equity holders. Banks should charge interest rates that are commensurate with the risk involved in the projects that are being financed.”

What are the benefits of risk-based pricing of loans?

• First and foremost, risk-based pricing models offer an extra layer of protection for
  financial institutions lending to non-prime borrower cohorts.
• Flexible risk pricing models allow lenders to set interest rates that align with their
  financial goals. The financial security offered by risk pricing gives the lender more leeway
  for product and process innovation.

Also Read: How will generative AI advance embedded lending

• Research has shown that risk-based pricing can improve loan performance by bringing
  down delinquency rates.
• Risk-based pricing offers lenders the ability to tailor loan rates and terms so that they
  can lend to more borrowers, even if they don’t have the required credit scores and
  history. The higher risk level is offset by the higher interest rates, and subprime
  borrowers have a shot at accessing the credit they need.

Even as recently as 2016, risk-based pricing was almost an alien concept in India. Less than a decade on, most leading lenders are on their way to working with these pricing models.  It wouldn’t be a stretch to say that the rise of risk-based pricing has a lot to do with credit expansion to thin-file and new-to-credit (NTC) customers in recent years – 35 million borrowers opted for their first credit product in 2021, and well over 30 million did the same in the following year.

The rise of alternate data-driven underwriting is helping lenders fine-tune their scoring models by adding depth and texture to existing data sources. This adds further nuance to traditional indicators and, hence, enables progressive, risk-based bucketing of borrower cohorts and dynamic pricing.

As lending goes beyond typical borrowers with strong credit histories and high scores, lenders face the challenge of enabling access while protecting their business interests – and risk-based pricing comes in as a win-win in this situation. With the Reserve Bank of India’s recent move to increase risk weights for unsecured loans, lenders must focus heavily on pricing risk accurately while ensuring adequate risk capital in their books.

The growth of risk-based pricing has for long been a slow burn, but all signs point to it getting into its stride sooner rather than later.

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Tokyo-based e-commerce enabler AnyMind Group has appointed Tae Woo (Ted) Kim as Country Manager (Korea) and Mayi Baviera as Country Manager (the Philippines).

Baviera replaces Siwat Vilassakdanont, former Country Manager for the Philippines. Vilassakdanont is now Managing Director (Thailand and the Philippines).

In addition, the company announced the reappointment of Punsak Limvatanayingyong, former Country Manager of Thailand for AnyMind Group, as Managing Director (Creator Growth).

Also Read: AnyMind Group agrees to acquire Indonesian e-commerce enabler DDI

According to Co-Founder and CEO Kosuke Sogo, the appointments were made to enhance AnyMind Group’s collective experience and strengthen its focus across its leadership team as the company prepares for a new growth stage. “We are now at a key moment of opportunity where the e-commerce and marketing industries continue to develop, and new technologies promise to transform businesses of all sizes. We want to lead this generational transformation and continue to advance a borderless world where anyone can easily do business through the internet.”

As the Country Head, Kim will lead AnyMind Group’s business and operations in Korea. He was most recently Regional Director for Korean Clients at data, artificial intelligence and technology transformation company ADA. Before ADA, he held roles in Google, Microsoft and Twitter.

AnyMind Group, which entered the Korean market in November 2023, recently partnered with creator management company Treasure Hunter to provide marketers and businesses access to an immediate pool of influencers and content creators in the republic.

Baviera was most recently Country Director for the Philippines at ADA. Before ADA, she held leadership roles at Cheil and Digital FCB Manila. Similar to Kim, Baviera will be responsible for AnyMind Group’s business and operations in the Philippines.

Vilassakdanont will be responsible for AnyMind’s business and operations in Thailand and will continue to oversee the Philippines market. Vilassakdanont joined the group in March 2019 following the acquisition of Moindy, where he was Managing Partner. He has a background in investment and entrepreneurship, with Executive Director and Partner roles in Trinity Securities, ARK Investments and Merrill Lynch. He also co-founded various startups, including WXYX and Delicious.

Limvatanayingyong, who joined AnyMind Group in March 2019 through the acquisition of Moindy, started in 2004, marketing independent music labels and musicians’ music through digital platforms. Moindy became Thailand’s first YouTube multi-channel network in 2014 before its acquisition by TV Thunder Public Company Limited in 2017. After AnyMind’s acquisition in 2019, Moindy was merged into AnyMind’s Creator Growth business, which provides various offerings to creators, including brand collaborations, content monetisation and music distribution across different platforms, growth consultation and strategy, the creation of private-label brands and merchandise for creators.

Also Read: How AnyMind Group achieved profitability through its approach to human resource and leadership

Founded in 2016 in Singapore by Kosuke Sogo and Otohiko Kozutsumi, AnyMind Group offers software and solutions for end-to-end commerce enablement in the business supply chain. It operates across Southeast Asia, East Asia, India, and the Middle East.

Last month, the group announced its expansion into Saudi Arabia by opening an office in Riyadh.

Early last year, the firm made its public debut on the Tokyo Stock Exchange Growth market.

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Traditionally, waste-to-energy solutions were deemed viable only for cities with low populations. Australian startup Wildfire Energy is set to change this perception as well as the waste-to-energy landscape with its cutting-edge gasification technology. The vision is to eliminate landfills by turning residual wastes into renewable energy and hydrogen.

“Global solid waste generation is over 2 billion tonnes annually, and landfills are responsible for over 5 per cent of global greenhouse gas emissions. We offer a solution that converts waste into electricity and hydrogen with net negative carbon emissions,” according to Jamie Roodenrys, General Manager (Strategic Partnerships).

Also Read: Hydrexia enables users to store and transport hydrogen more economically with less space

Founded by Greg Perkins, Denis Doucet, and Grant Bollert, Wildfire Energy has developed modular plants which can be rapidly deployed and used to convert biomass and waste into renewable energy products at low cost. The solutions are suitable for industrial decarbonisation and improving waste management in outer urban, regional and remote communities, where landfill is currently the only option.

Wildfire Energy focuses on recycling a wide array of waste, from plastics and biomass to electronics. The startup aims to salvage materials that are challenging to recycle conventionally, offering a solution to waste-related environmental issues.

Wildfire Energy, a winner of last year’s Petronas FutureTech 3.0 programme, is currently on the cusp of realising its vision; it is gearing up to build its first full-scale project, processing approximately 45,000 tonnes of waste annually in Brisbane next year.

Also Read: How to navigate the investment opportunity in climate tech sector

The heart of Wildfire Energy’s technology lies in Moving Injection Horizontal Gasification (MIHG), a process that diverges from traditional incineration. Operating in a low-energy, low-oxygen state, the technology converts waste back into its constituent gases, producing synthetic gas (syngas) with about 40 per cent hydrogen content. This breakthrough enables the startup to harness energy from waste materials that would otherwise end up in landfills or incinerated.

The gasification process addresses waste management issues and provides a commercial model capable of cleaning the environment. The resulting energy products have the potential to decarbonise industries such as energy, waste, and transport. The main products generated by the process include synthesis gas, electricity, hydrogen, and heat. The synthesis gas, containing about 40 per cent hydrogen, can be utilised to generate electricity, power vehicles, and decarbonise various industries.

“We want to take the waste that otherwise gets dumped in the ground, and we’ll convert that into useful products,” adds Roodenrys.

Additionally, the byproducts, such as slag from inert materials like aluminium and steel, find valuable applications in construction, further adding to the environmentally friendly outcomes of the process.

While the technology seems revolutionary, the key question remains: is it cost-effective? “Our innovative gasification technology presents a scalable and economically viable solution. Unlike traditional waste-to-energy models that require large populations to be economically feasible, Wildfire Energy’s technology thrives in smaller cities and towns,” claims Roodenrys.

The startup is currently in the development stage, operating a pilot plant in Brisbane and collaborating with industry players to analyse outcomes. The upcoming full-scale plant in Brisbane, with a projected cost of US$50 million, is expected to secure 100 per cent funding by May next year.

Last September, Wildfire Energy partnered with Naturgy Innovahub to develop its MIHG technology to produce hydrogen from a range of residual wastes, such as municipal solid waste, and agricultural residues, such as wheat straw.

Also Read: On the precipice of energy transition

Wildfire Energy’s approach involves a build, own, and operate model for the initial project. However, future projects may adopt a build-and-operate transfer model, allowing clients to take ownership after a demonstration period. The ultimate goal is to deliver numerous projects worldwide under license agreements, contributing to a global shift towards sustainable waste management.

As the world grapples with environmental challenges, Wildfire Energy’s innovative technology offers a beacon of hope, transforming waste into a valuable resource and paving the way for a greener and more sustainable future.

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The business and marketing world has gone through quite the makeover, all thanks to how people make purchases these days. It used to be all about buying what you needed, but now, it’s about making purchases based on what resonates with your emotional demand.

In this new paradigm, profound experiences, genuine connections, and the additional value that businesses offer have become pivotal factors that shape a consumer’s decision to interact with a brand.

Despite these shifts, businesses have a savvy strategy within reach — immersing themselves in the age of content, where people and communities feel more compelled to participate in movements along with the mobile-first generation.

Today, the tables have turned, and people are no longer the ones looking for content; instead, with the power of technology, short and snappy content is the ones searching for a relevant consumer. This is where one can build brand trust and engage with meaningful connections through punchier, relevant content, which can serve as a powerful tool to convey a brand’s values, personality, and offerings while also catering to the needs of consumers.

It goes beyond just informing individuals about a brand’s identity and offerings; it also involves resonating with what matters to people today. For businesses ready to embark on this content journey, it is an opportune moment to reassess their strategies with a renewed emphasis on core components: creativity and content-driven commerce.

The next creative renaissance

To start things off, businesses should make sure that the content they create keeps consumers engaged, and that’s where creativity steps in. This means always looking for ways to refresh their creative assets to retain consumers’ attention and prevent creative fatigue in the long run.

Also Read: From a single brew to unicorn: Kopi Kenangan’s journey of coffee and creativity

Embracing tech-driven innovations, such as video-editing templates and tools like CapCut and one-stop-shop creative production platforms like TikTok Creative Exchange, can breathe life into content, making it more captivating and dynamic.

The more entertaining your content is, the more powerful a business becomes through word-of-mouth influence. This can propel a product to its viral state as passionate customers organically spread joy and excitement about the brand.

Within TikTok’s diverse ecosystem, there are many thriving subcultures like #BookTok and #FoodTok, with over 202.6 billion views and 77 billion views, respectively. This diversity enables a personalised approach, leading to stronger connections and greater success in our ever-evolving landscape.

Content-driven commerce

According to a TikTok-commissioned study by Boston Consulting Group in 2023, the BCG study, 81 per cent of APAC TikTok users say video content influenced their recent purchase. #TikTokMadeMeBuyIt, a powerful and well-documented cultural phenomenon which introduced users to new ways to discover new products on the platform, has generated over 80+ billion views, showcasing tremendous potential for consumers’ experiential needs that brands can tap into.

Instead of solely relying on traditional marketing methods, businesses are better off adopting a more personalised and interactive approach that seamlessly blends entertainment, content, and commerce. The BCG study has shed light on the emerging landscape of ‘Shoppertainment,’ which is forecasted to be worth US$1 trillion in the Asia Pacific by 2025.

This itself can be a game changer for businesses. Not only does it empower them to design an immersive and unforgettable customer journey that blends shopping seamlessly with entertainment and content, but it also positions them to captivate audiences and take their brand loyalty to new heights.

Learning from those around us

Several businesses and business owners have already embarked on their journey toward embracing the non-linear, infinite-loop purchase journey. This approach, centred around the convergence of content and commerce, has elevated shopping experiences to an entirely new level. Let’s take a page out of the books of some successful brands that we’ve worked with that exemplify this concept.

Also Read: Human creativity drives tech while AI accelerates it: Yee May Leong of Equinix

Mc JEANS, the Thai fashion brand, explored new marketing strategies by collaborating with creators on TikTok Creator Marketplace. They experimented with varying affiliate commission rates to maximise efficiency. The brand also optimised ad creatives on TikTok Ads Manager, utilising insights, trends and keywords identified from the Creative Center.

Additionally, they accelerated live streams and short video content to 10x the platform average and ran live shopping ads as always while doubling down on video shopping ads during key sales moments. They were able to tap into TikTok Shop Partners to manage content creation, live stream production and store operations, achieving >US$500K monthly GMV.

Similarly, the Skincare brand Garnier showcased the power of collaboration in Vietnam with content creators to launch their new serum product. The result? A 30 per cent uplift in sales on other platforms during a shopping festival, elevating their product to the top serum spot for the month.

Seizing your business opportunity

The successes of brands like Mc JEANS and Garnier serve as compelling evidence of the immense potential for businesses to fuel their growth through the power of content. Accessible tools and platforms that allow for live streaming, video editing, and seamless shopping offer an invigorating opening for brands to embark on the journey of the contemporary creative renaissance.

To initiate the process, businesses can begin by evaluating their existing assets and adapting them to fit various platforms with minimal friction. Exploring collaboration with creators to harness the power of creative storytelling can also further strengthen the engagement between the brand and its consumers, bringing creative ideas to life using the power of platforms and communities like ours.

The future is indeed brimming with opportunities for businesses, and the convergence of content and creativity is the ticket for those looking to cut through the noise for growth. By seizing the opportunities that come their way, businesses or founders can stay on top in the entrepreneurial world and navigate this dynamic landscape successfully, eventually attaining a portion of the US$1 trillion opportunity for growth.

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I’m admittedly a generalist — a jack-of-all-trades, a master of few.

Since graduating from the National University of Singapore (NUS) in 2009, my professional path has led me through diverse functions, spanning product management, marketing, financial analysis, investor relations, fundraising, and community management.

With each new venture, I experience a twinge of imposter syndrome and that fear of being ‘not good enough’. Yet there’s always this addictive rush of adrenaline and excitement as I learn the ropes, uncover hacks, question the incumbent practices and survive.

Around 2.5 years ago, I had the privilege of joining Vertex Ventures Southeast Asia & India (VVSEAI), where I led the corporate communications and community engagement for the fund. VVSEAI is a venture capital powerhouse investing in tech startups at pre-A, series A, or B stages across diverse sectors in the SEAI region and boasts US$1.5 billion in Assets under Management (AUM). As part of the global Vertex network, encompassing six funds with a collective US$6.5 billion AUM, VVSEAI plays a pivotal role in shaping the startup landscape.

On the side, I lead the Asia Startup Network (ASN), a community designed to empower early-stage entrepreneurs in Southeast Asia. ASN facilitates learning opportunities from industry experts and investors, fostering a collaborative environment for networking among budding entrepreneurs. We also give back by raising donations for charities, clocking over nearly US$180,000 in donations for charities like Beyond Social Services in the past three years.

Navigating digital marketing and communications in the dynamic Southeast Asian landscape, especially when targeting entrepreneurs gearing up for Series A funding, has been a fascinating journey at VVSEAI.

Here are some key takeaways from my two years here:

Digital marketing: There is no one-size-fits-all approach to content marketing

Southeast Asia is so often regarded as one region, but in fact, it is a very fragmented group of countries with very varied sets of cultures and habits. 

In Singapore and India, we often use LinkedIn, especially among working professionals. However, in Thailand and Vietnam, Meta/Facebook serves as a primary platform for both business and personal purposes. As for Indonesia, the land with the most social media users (over 190m according to Statista!), Instagram and TikTok are the main platforms to engage your target audiences.

Recognising the diverse linguistic landscape, we’ve realised the need for subtitles in video content targeting non-English native speakers to prevent our intended message from being lost. 

Also Read: Unlocking marketing success for startups and small businesses: Strategies for excellence

When I first started out in 2021, I initially believed that I could copy and paste the same content across different social media platforms — but I was wrong. Subsequently, my team and I adopted a more nuanced strategy.

We delve into the data, analysing posts with high impressions or engagements on each platform. Additionally, we engage in conversations with founders in specific markets, leading to insights that shape our tailored content approach.

Digital marketing: The 7-11-4 model works

Are multiple channels necessary? Well, the renowned 7-11-4 rule suggests that we should position ourselves where founders and entrepreneurs actively engage. For some context, research by Google suggests that if a buyer is exposed to content from the same brand for more than seven hours, across eleven moments and in four locations, he or she becomes more familiar with the brand and is more likely to recommend it.

Each platform demands a tailored approach. For instance, LinkedIn often requires a more formal tone compared to Facebook, Meta, or Instagram. I find posting on Twitter/ X the hardest, as you will need to condense the message, capture the attention of your target audience and add hashtags at the same time, all within 280 characters! 

Looking back, I find LinkedIn’s content creation and follower growth to be the fastest and ‘easiest’. For VVSEAI’s LinkedIn, our follower count grew the fastest, reaching 10,000 in just over two years.

Interestingly, ASN’s Meta/Facebook platform saw significant growth with minimal effort, reaching 700 followers despite little time and attention spent on it. Notably, strategic event planning played a crucial role in boosting engagement in 2020, contributing to the platform’s growth.

Communications: Distribution, distribution, distribution

In content creation, meticulous planning for distribution is paramount. In the offline world, the phrase used is “Location, Location, Location” because, for brick-and-mortar establishments, it’s all about being visible and accessible to the customers you are targeting. The same principle holds true in the online world.

How do you market your content to the channels that are already being followed by your target audience? 

In the startup vernacular, we often discuss Product Market Fit. Translating this to the marketing domain, we can think of it as Content Channel Fit (CCF). When we achieve CCF, our content ‘flies’, effortlessly reaching 100,000 impressions within a few days.

Bringing it full circle to the strategy of repurposing content for diverse social media platforms, we’ve discovered that distinct content channels require unique formatting approaches. For instance, we adapt our podcast content into short-form videos for IG reels, enhancing distribution and engagement.

Communications: Market the content and the author

Beyond having value-adding content and an effective distribution plan, I realise that a complementary strategy is to promote my colleagues as thought leaders so that they get to showcase their expertise, build credibility, and gain visibility within the startup community. 

Also Read: AI in influencer marketing: Transforming trends and shaping the future

I’m delighted to witness the recognition of my colleague and Venture Partner, Genping Liu, who was invited to write the Business Times column “Crypto Watch,” building his reputation as a fintech and blockchain expert. Similarly, my colleague and Partner, Puiyan Leung, is well-known for her expertise in the climate space. Her three-part series on climate tech investments in Southeast Asia was published on Deal Street Asia (Part 1, Part 2, Part 3). This not only enhances their individual profiles but also contributes to the collective expertise of our team.

Communications: Images and videos are king

In today’s fast-paced, digital-first landscape, content is abundant, and attention spans are fleeting. Whether skimming through articles or scrolling through social media, users seek visual appeal. Images and videos play a pivotal role in capturing attention and ensuring enjoyable content consumption. At VVSEAI, we meticulously repurpose written content into video format and vice versa to ensure that readership is maximised.

Our strategic use of Instagram, where we post reels from our podcast “Hard Truths by Vertex,” has seen a threefold increase in followers within six months, achieved organically.

Additionally, we have also observed that incorporating images into articles has proven to increase page reading time (Of course! We are, after all, visual creatures). We also make a deliberate effort to craft visually engaging titles and use captivating images in our article and video banners to attract a wider readership.

I feel grateful to have the opportunity to try out a marketing role, and it changes the way I look at creating and capturing the value of a piece of work. As with any job, the key question to ask every day is why we do this, who we are targeting and what we are trying to achieve. No matter what role it is, I learned that critical thinking will always take one further.

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Micoworks, a marketing company that optimises communication between companies and their customers, has raised JPY 3.5 billion (~US$24.5 million) in a Series B funding round.

Vertex Growth, a growth-stage VC fund anchored by Vertex Holdings, a subsidiary of Temasek, led the round. Participating investors include JAFCO Group, Mitsubishi UFJ Capital, SMBC Venture Capital, and Mizuho Capital. Existing investors, such as ALL STAR SAAS FUND and Eight Roads Ventures Japan, also contributed.

Also Read: Unlocking marketing success for startups and small businesses: Strategies for excellence

Micoworks will utilise funds to enhance its product features and strengthen organisational capabilities, with plans to expand into the Asian region. The company is setting up development teams in the Philippines and Taiwan, besides broadening its reach to Taiwan, Thailand, and other Asian countries where the LINE business platform has a significant presence. Beyond the LINE ecosystem, the company intends to integrate MicoCloud with various popular communication channels.

Headquartered in Kita-ku and led by CEO Osamu Yamada, Micoworks develops and provides marketing platforms MicoCloud and Micomii.

MicoCloud is a marketing platform that optimises communication between companies and their customers. In addition to offering highly extended functions for the official LINE account, it collects data across multiple channels. This data collection enables optimal communication tailored to customer needs. Furthermore, MicoCloud creates tangible business results for clients by providing a one-stop service that includes consulting and operational support.

Micomii is a LINE mini-application service for restaurants. It is designed to automatically attract repeat customers and assist in developing a regular customer base. This service lets membership cards quickly be issued through a customer’s smartphone. Additionally, it enables the automated sending of thank-you notes for visits, helping attract more customers while keeping operating costs low.

Also Read: AnyMind Group expands into Saudi Arabia, rolls out influencer and mobile marketing platforms

Micoworks says these platforms maximise brand value and expand business possibilities by facilitating optimal communication.

As of December 2023, over 1,000 brands, including consumer-facing companies like Tokio Marine & Nichido Fire Insurance, Pasona, and JR Tokai Tours, have utilised MicoCloud.

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Image Credit: Micoworks

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Khazanah and CGC Digital have announced a joint investment in Southeast Asian MSME digital finance platform Funding Societies (Modalku in Indonesia).

With this new investment, Funding Societies aims to expand its Malaysian coverage to areas beyond Kuala Lumpur, Selangor, Penang, and Johor. By the end of 2025, it targets to serve more than 25,000 MSMEs across Malaysia, thereby improving MSMEs’ access to financing, growth, and scalability while fostering job creation and income development for those employed by these businesses.

Also Read: Funding Societies raises US$7.5M debt financing from Norway’s state-owned Norfund

The investment follows the inking of CGC Digital’s partnership with Funding Societies earlier this year, where a new guarantee product was developed via a pilot programme. The product provides Credit Guarantee Corporation Malaysia’s guarantee at the transactional level of Funding Societies’s digital supply chain financing, thereby directly supporting the business activities of MSMEs and advancing financial inclusion.

Established in 2015, Funding Societies provides financing to micro, small and medium enterprises (MSMEs), especially micro and small businesses currently unserved by existing financial institutions. Since its inception, it claims to have disbursed over US$3.5 billion in business financing through five million transactions, positively impacting over 100,000 businesses across Malaysia, Singapore, Indonesia, Thailand, and Vietnam.

Also Read: Funding Societies hopes to move from alternative to mainstream financing one day

In Malaysia, Funding Societies aims to address the RM90 billion2 (US$19 billion) funding gap for MSMEs. Moreover, it intends to widen the reach of its Islamic financing solutions introduced earlier this year. Since its launch in May 2023, it has disbursed over RM100 (US$21) million in Shariah-compliant financing in Malaysia.

Khazanah’s investment in Funding Societies is made alongside CGC Digital, by which the government hopes to create a more significant impact on the Malaysian MSME ecosystem. CGC Digital aims to advance financial inclusion by developing innovative digital guarantee products and its own guarantee credit scoring model that can close the gap and address the pain points in micro and small businesses demand for financing.

It will continue to collaborate with CGC Digital to provide digital guarantee products on its platform, which will further aid Malaysian micro and small businesses in getting financing in the long term. A digital-first approach through its digital guarantee product leveraging alternative data will allow micro and small enterprises to have broader and more affordable access to financing.

Also Read: SME lender Funding Societies nets US$27M debt funding

In November 2023, the fintech lender secured US$7.5 million in debt funding from Norwegian government-owned development financial institution (DFI) Norfund.

While MSMEs represent 97 per cent of business establishments in Malaysia and contribute 38 per cent to the GDP, this group still faces significant challenges in obtaining credit, as evidenced by Malaysia’s RM90 billion financing gap.
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(This article was first published on February 27, 2023)

William Temple and Zhou Ziling researched wireless sensor networks, energy management, and industrial cybersecurity at Singapore’s Advanced Digital Sciences Center from 2012 to 2013.

They both had a commercial mindset and saw an opportunity to leverage their experience with emerging digital technologies to be an early mover in Asia’s smart building market, valued at US$20 billion in 2021 and projected to reach US$91 billion by 2031. 

That was the beginning of Ampotech in 2014.

The company was started by Temple (CEO) and Ziling (CTO) as a spin-off of A*STAR and the University of Illinois research institute.

Temple has a Bachelor’s degree in Mechanical Engineering from Tufts University and a Master’s degree in Mechanical Engineering from Cornell University. His business partner Ziling has a Master’s in Electrical Engineering from the National University of Singapore (NUS) and a Bachelor’s degree from Shanghai Jiao Tong University (SJTU). He was pursuing a PhD in Computer Science at NUS before joining Ampotech.

Based in Singapore, Ampotech uses the Internet of Things (IoT) and edge computing technology to help energy, operations, and facilities managers improve the performance of their buildings. 

Also Read: Building energy management startup Ampotech raises US$1.3M led by Earth VC

Its proprietary device AmpoHub becomes the brain of an electrical panel, logging usage data and detecting anomalies for specific equipment like air conditioners and motors. The data are transmitted securely to AmpoCloud over a WiFi network, where they can be analysed, downloaded, or shared via API. 

From solar inverters to HVAC, refrigeration and lighting systems, the AmpoHub and AmpoCloud can deliver real-time insight that is easy to integrate with third-party software like enterprise IoT data platforms or cloud-based building management systems. 

“We help businesses collect, analyse, and integrate building and machine electricity usage data for sustainability reporting, benchmarking automation, and facilities management,” Temple explained.

From a customer perspective, the startup helps smart building solution vendors reduce project delivery time and cost with its wireless devices and edge computing. 

For building owners, Ampotech breaks down data siloes to integrate their building or process energy consumption with carbon accounting software, facility management software, or other software tools and platforms they may be using.

“We have a full technology stack approach — from electronics design and firmware development to the cloud platform and AI applications for equipment identification and state detection. This helps us deliver better data quality and security than off-the-shelf systems while providing a single point of contact for support,” Temple claims.

Ampotech follows a B2B model, typically selling to energy services or energy solution companies, such as solar developers, utility companies, or system integrators that implement building management systems or industrial IoT projects. 

It also sells to industrial companies that are owners/operators. “Our products can be applied in any building, so we have worked with office buildings, shopping malls, factories, and residential developments.”

The firm has three revenue streams: selling connected devices, SaaS, and engineering services related to solution delivery.

“Globally, the built environment is responsible for around 37 per cent of carbon emissions. If you look only at the operation of buildings for things like air conditioning, lighting and plug loads, the figure is around 27 per cent. So this is a sizeable global problem, and our products can be applied worldwide,” Temple says.

The startup focuses on Southeast Asia, an underserved market with high growth potential.

Excluding the customers of its distributors and resellers, Ampotech works with over 60 organisations, including MNCs — all in Asia.

The startup plans to open an office in Vietnam, its first location outside its Singapore headquarters. It will also look to expand into Indonesia, where its existing investor Prasetia Dwidharma is based.

“Now that we have established ourselves in Singapore, our challenge is international growth. We will tap into the network of customers and partners we have established in Singapore and market our business more actively abroad,” Temple shares.

Early this month, the energy management company secured S$1.78 (US$1.3) million in pre-Series A funding led by Earth VC, with participation from KSL Maritime Ventures, the VC arm of The Kuok Maritime Group, and Silicon Solution Ventures and SEEDS Capital.

Ampotech plans to raise a larger Series A round in H2 this year. “We are looking for investors that can bring us into new markets or, in the case of a corporate VC, bring an existing customer base or complementary solution capabilities,” Temple says.

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Now that the metaverse has firmly established itself as a term worth noting, it is time to discover the future trends that will have an impact on many of our hybrid lives. From headsets to NFTs, the metaverse is blurring the lines of virtual and physical entertainment. What was once deemed only tangible in reality is transformed into a digital asset with real-world value using the most advanced technology. 

Let’s discover future trends that demonstrate the value in a convergence of realities. Immersive interactions in decentralised worlds have the potential to transform the internet as we know it.

Here are five metaverse trends to watch out for in 2024. 

Our social evolution 

In 2023, digital creatives embraced all things visual, from bite-sized snippets to in-depth vlogs. In 2024, will they move towards virtual? An ever-growing cohort of users is stepping beyond the two-dimensional screen to experience a virtual reality where social interactions transcend the constraints of pixels and text. 

Our connection to online social entertainment has shifted dramatically in the last ten years as we moved from text to video to virtual spaces. Social digital entertainment consumption is transitioning from 2D to 3D. Moving from Zoom calls to virtual meetings with avatars is no longer the seismic shift that it used to be.

Technology has brought us closer to newer forms of content consumption. Why read the paper when you can watch the news in real-time? YouTube Live has pushed the boundaries here. Do you watch live videos online? Moving into immersive landscapes of the metaverse is a natural progression and, certainly, a trend to keep a close eye on. 

Music festivals, fashion shows, and more will have digital twins and virtual expansions. Welcome to the age where the journey from text to video seamlessly evolves into an exploration of immersive digital environments.

Gaming entrepreneurs

Game within game economies is a novel concept in digital media. Although gaming is said to hold the key to the mass adoption of Web3 technologies, it is also difficult to create a game from scratch and attract the existing gaming market, which has sunk its teeth into their favourites.

Also Read: The XR revolution: A glimpse into the immersive Metaverse of education and beyond

With 214 million monthly active players in Roblox and 231 million monthly active players in Fortnite, they certainly stand out from the pack and have created attractive environments for wide cohorts of gamers. 

However, there are platforms creating easy-on ramps and tools that can add new economic value to existing games while also allowing gamers to create new assets to be shared amongst the gaming community. Upland, Illuvium and The Sandbox are pushing the boundaries with new business models, ownership of digital assets and creative ways to allow players to create revenue opportunities from the time they spend gaming.

Both Upland and the Sandbox are positioning their metaverse platforms for game creators. Allowing them to carve out space within their virtual worlds to bring gaming communities together. 

“We have seen a growing number of players create their own side hustles within Upland. These can be divided into three main categories: entrepreneurs, creators and developers. Through our entrepreneur hub, Metaventures, we encouraged the growth of niche economies within the platform, but we never imagined the pace of the uptake. We’ve seen over US$850,000 FIAT sales from metaventures in addition to over US$1.3 million in UPX transactions,” says Danny Brown Wolf, Chief of Staff at Upland. 

“Developers use Upland as a layer1 metaverse or GameFi Platform, where they connect to existing games, services and experiences to a Upland structure and enjoy access to its community, payments infrastructure and dev tools. Since the Upland Developer network was made publicly available in June, there have been over 20 different applications, and their economic activity surpassed US$400k. When you give players the space and tools, it is fascinating to see how imaginations catch fire and breathe life into new games on top of existing ones,” she continues. 

Industry-led platforms for experimentation 

Research and training have already proved themselves to be valuable use cases in the metaverse. From emergency scenario training to architecting future cities, virtual landscapes are inspiring industry leaders to discover new opportunities and ways of working. 

Also Read: Navigating the evolving landscape of blockchain regulation in the metaverse era

No longer confined to the realms of gaming and entertainment, the metaverse is evolving into a multifaceted space where industries harness virtual environments to innovate, collaborate, and push the boundaries of possibility. From architecture firms envisioning futuristic cityscapes to healthcare pioneers conducting groundbreaking simulations, these industry-led platforms serve as crucibles of innovation. 

As sectors come together to discover opportunities in the metaverse, a playground of innovation is created. One example of this is via the Neoki Metaverse platform. They are focusing on bringing the world of design into the metaverse, enabling them to experiment, create new revenue streams and adopt the technology that brings virtual realms to life. 

“Industry leaders must accept they’re not just playing around – they’re getting a front-row seat to what the next-gen crowd really wants. These digital natives are more than just users; they’re shaping their own worlds online. By taking a step into web3 and virtual environments, they’re doing more than just keeping up – they are getting an insider’s look at their world. It’s like learning a new language, one that’s all about what they value and dream about.

“So, they are not just building cool virtual experiences; they are tuning into the heartbeat of a generation that’s rewriting the rules of the game. The metaverse? It’s our way of staying connected, relevant, and totally in sync with what the future holds,” said Zara Zamani, Co-Founder of Neoki. 

The virtual self

What does my avatar look like? What does it wear? Where do I hang out? As we slowly immerse ourselves in virtual environments, we begin to create digital versions of ourselves. The metaverse is proving to be an innovative place for acquiring new skills.

A study by the University of Bath found that in virtual reality (VR) learning environments, the customisation of virtual instructors to resemble the learner enhances the learning experience significantly, even with minimal adjustments.

This finding aligns with the growing trend of leveraging immersive technologies across various industries for staff training, especially in situations where in-person training is impractical, such as in hazardous environments or health and safety scenarios.

In 2024, more skills will be tested in the metaverse, and traditional training processes will be adapted to include metaverse features. Perhaps the metaverse will house the classrooms of the future. 

Now for the boring bit, policy considerations for the future of the metaverse.

Metaverse policy and regulation

In a leak earlier this year, it was unveiled that Meta has successfully distributed nearly 20 million Quest headsets. With such an impressive adoption rate, it brings us closer than ever to the seamless integration of our virtual and physical lives. A heightened policy debate becomes inevitable as the metaverse becomes more intertwined with our daily lives.

As users navigate these new landscapes, new policies will be shaped to ensure safety, security and privacy are factored into all usage. As more people spend time in the metaverse, the discussion around policies governing these immersive devices is going to intensify.

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Startups have always been at the cutting edge of innovation, and in the age of Generative Artificial Intelligence (Generative AI), they are poised to harness the technology to transform customer experiences and the way we work like never before. Investors recognise their value and potential, and have poured US$21.4 billion into Generative AI startups since the start of this year through September 30, 2023, up from US$5.1 billion in 2022, according to PitchBook data.

Today, more than 5,000 Generative AI startups are building their solutions on AWS. These scrappy but nimble innovators are disrupting industries with new ideas, developing locally relevant solutions, and introducing new ways of using AI. The achievements of these startups are commendable given the challenge of navigating a rapidly evolving technological space.

Culturally aware AI

Generative AI technology has captured the world’s attention for its ability to learn and apply knowledge – powered by foundation models (FMs) that are pre-trained on vast volumes of data. However, models are only as good as the data they are trained on. For instance, when Large Language Models (LLMs) pre-trained in English are tasked with non-English queries, they can produce errors and misinterpretations.

This is particularly important to the Asia Pacific region, where the population speaks about 2,300 languages. To cater to the region’s diverse ways of working, cultures, and languages, there is an urgent need to train LLMs on culturally diverse data to build a more nuanced understanding of human experiences and complex societal challenges. The creation of more culturally aware and localised AI will increase the accessibility of AI technology, impacting countries, communities, and generations to come.

Also Read: How Transparently.AI uses Artificial Intelligence to detect accounting manipulation, fraud

Startups are leading the way in training models with data that represents local text, imagery, audio, video, and other datasets. One such example is Stockmark, a Japanese startup that leverages AWS’s infrastructure to train Stockmark-13B, an LLM using 13 billion parameters that was trained on over 220 billion tokens of Japanese text, one of the largest datasets of its kind.

To develop culturally aware AI, AWS has invested US$6 million in Japan and US$5 million in South Korea to help startups, enterprises, and developers build FMs and LLMs trained on local data.

Innovation across industries

Startups play an important role across the entire spectrum of Generative AI innovation, ranging from establishing the foundational frameworks with FMs to developing practical real-world applications. To date, startups using Generative AI have already transformed a wide variety of industries such as healthcare, financial services, media and entertainment, education, and gaming. By automating tasks, enhancing decision-making processes, and personalising user experiences, Generative AI continues to revolutionise how businesses and organisations of all sizes operate.

In the medical arena, AI-assisted training tools can create personalised and real-time training to medical professionals at scale to help address the current talent crunch. Australia-based startup SimConverse uses Generative AI for simulated roleplay training for over 300,000 healthcare professionals in over 150 organisations in Australia and New Zealand. The company has used Amazon compute services to train their AI models on over 1,000 scenarios, ranging from simple communication tasks like basic history-taking to linguistically complex de-escalation and the delivery of bad news.

Another industry evolving with AI is the media and entertainment sector, where companies are using Generative AI to automate content production, reduce costs, and increase output. South Korea-based startup Toonsquare is pioneering innovations in the webtoon industry with their novel AI-driven generative webtoon production tool Tooning, powered by AWS. With Tooning, tasks that previously took 60 hours in a week can now be finished in just six hours.

Also Read: Will China lead the Artificial Intelligence game by 2030?

Broadening access to AI

Startups have undeniably played a pioneering role in propelling the generative AI technology revolution from its inception to adoption across industries. As startups continue to drive innovation, they are also facing significant hurdles that encompass resource limitations, ethical and regulatory complexities, integration obstacles, and the absence of in-house expertise or technical proficiency.

To overcome these hurdles, startups need access to cloud resources that level the playing field. AWS recently unveiled technology enhancements at all layers of the Generative AI “stack” to make it even easier, cheaper, and faster for startups to build, train, and scale their Generative AI innovations.

At the infrastructure (bottom) layer, this includes pushing the envelope on price performance with the next generation in AWS-designed ML chips, such as Trainium2, and introducing new capabilities to accelerate model training and inference with Amazon SageMaker.

For startups looking to experiment with existing models at the tools (middle) layer, Amazon Bedrock offers expanded choice of leading models, customisation features, agent capabilities, and enterprise-grade security and privacy in a fully managed experience.

At the application (top) layer, startups can transform how they work through applications such as Amazon Q, a new type of Generative AI-powered assistant that is specifically for work and can be tailored to a customer’s business. Another application is Amazon CodeWhisperer, an AI-powered productivity tool for the integrated development environment (IDE) and command line. AWS is also helping to plug the AI skills gaps for startups by providing free AI training programmes all across the region.

Scaling innovation

While building is the first step to the Generative AI revolution, going global is equally critical in driving widespread adoption of startup-driven Generative AI adoption across industries. India-based startup Yellow. AI, a leading conversational AI solutions provider, has listed its generative AI customer service solution on AWS Marketplace, a curated digital catalog with over 330,000 active customer subscriptions. Today, India-based Yellow.AI handles over 12 billion conversations across more than 85 countries annually.

AWS has an established track record in supporting startups – over US$1 billion in AWS credits has been provided to startups over the past decade through the AWS Activate programme – to experiment in emerging fields and building the innovations of tomorrow. We are excited to support startups to build an AI-assisted future world with fresh perspectives and inventive solutions that will drive positive impact for all.

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