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This is a question the entire Storya founding team grappled as we look back on our journey at the startup. Raising from VCs is not guaranteed. Most statistics note that less than one per cent of startups receive VC funding.

That being said, we had already succeeded in raising from angels, had built a product that was loved by its audience, and perhaps most importantly, we had assembled an incredible, talented team to push the startup to its next level. We truly believed it would happen. But it did not.

Like many entrepreneurs, we grappled with questions of funding and sustainability. The allure of VC funding is undeniable – it promises rapid growth and the realisation of ambitious dreams. Yet, it’s a path lined with complexities and unintended consequences.

Reflecting on our experiences and those of others, we’ve come to see both seeking and getting VC funding as a double-edged sword. Patreon, a platform we admired for its creator-centric approach and for its ability to successfully raise funds was an important example.

Patreon was a big inspiration for what we were trying to do with Storya. Our app was meant to be something like Patreon but useful from end-to-end for the creation of content with powerful monetisation tools. But it turns out Patreon’s biggest mistake was taking US$400 million in VC funding, pushing the company valuation to an unrealistic US$4 billion.

While the company has grown to become a staple of the creator economy, many are now questioning whether it has a future at all. The need to squeeze out ever greater profits at higher speeds to repay those investors weighs heavy on its fate.

This case highlights a critical challenge: opening the door to VCs can inflate expectations, creating a chasm between achievable goals and investor demands.

But it’s not just about the numbers. The essence of what makes a startup innovative can get lost in this translation. The pressure to meet growth targets often leads to compromising the very ideals that sparked the venture. Patreon’s shift in business model, driven by VC pressures, is already eroding its foundational values.

Also Read: How do you raise VC funding as a student entrepreneur? Find out the answers here

Back to our own journey: after contacting through various channels hundreds of VC funds (still a drop in the bucket of the thousands and thousands that exist), one issue was that fundraising had become its own business line. The VC outreach, pitching, follow up, tracking, and other corollary activities, ended up taking 50 per cent or more of his working time for nearly a year.

As the CEO, it eventually became clear there was a toxic cycle at play. The more difficult it became to close the funding round from VCs, the more time we spent on it, at the expense of managing the rest of the team, the product and the customers, which over time made our traction numbers less appealing, although we were adding thousands of users to the app. Somewhere along the line, the balance between seeking funds to keep building, and actually running the business, was broken.

There were many rookie mistakes at play here. As a first-time founding team, striking the right balance between the many aspects involved in launching a successful tech startup was nowhere near guaranteed.

External conditions matter

Other massive factors played a role of which at least two are worth mentioning, the macro funding environment and the appalling diversity record in VC funding. On the first, we just had bad timing: our funding campaign kicked into gear in late 2022, by which time overall funding going to early stage startups was already tanking due to changing economic environment, rising interest rates, and more.

We heard from several friends in the startup ecosystem both in Singapore and Silicon Valley that while many VCs continued to take pitch meetings, very few had any actual plans to sign checks given the situation.

The second factor is the one that left that bitterest taste in us. We launched Storya to champion diversity in publishing, leveraging technology to achieve it. Our fundraising experience showed us that while most VCs like the put diversity somewhere in their “belief” statements or “about us” web pages, the reality is far, far more depressing. As we have documented during the process:

• VCs told us during actual pitch calls (facing our entire diverse team) that diversity did not matter in investment decisions.
• We were penalised for pitching under adverse conditions (e.g. blackouts) because of the geographies we operated from, like South Africa.
• A major California university startup program, which had a dozen people on its diversity committee, hang up on us when we raised the objection that their scheduling made it impossible for a diverse team from Africa and Asia to participate in their pitching sessions.

And that is just a taste of what we dealt with, despite the fact that Storya still had a white, male CEO. It made us empathise all the more with the insane challenges faced by startups that do not tick any of the VC’s preferred ‘boxes’.

Also Read: Singapore Budget 2024: For startups, talents and funding remain key challenges this year

As the fundraising winter continues, we read that funding going to women-only founded startups, for example, has contracted even further, reaching its lowest level since 2016, according to Morningstar statistics. The diversity challenge is real, and it is hurting innovation worldwide.

What are the lessons here?

We agree that whatever project comes next, self-sufficiency from a revenue perspective will be non-negotiable. While we do not exclude the possibility of fundraising in the future, we would take a “sustainable revenue first, external funding later” approach. It is partly a result of the tough experience we had.

But it also comes from the simple realisation that the era of easy startup funding has been dead since at least 2021, and is unlikely to come back.

Part of it is also about accepting that there we just do not easily fit the typical founder profiles VCs look for, in terms of background, university attended. We chose to be open about the struggle of diversity in VC funding, but it took a toll on us, as a team and individually. It caused stress and anxiety we would not choose to live through again soon.

So for now, we keep our heads down, continue with our research, brainstorming, experimenting, and building. Thanks again for being on this voyage with us!

This article originally appeared on the newsletter Praveen & Paolo on Tech.

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This article was first published on March 7, 2024

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The prospect of a second Trump presidency is creating ripples of uncertainty across the climate technology landscape. Known for motto like “Drill, baby, drill” or calling climate issues all part of a “hoax”, a Trump return to the White House could reshape clean energy funding worldwide, forcing investors, nations, and startups to adapt. The potential consequences extend well beyond US borders, impacting global geopolitics and climate innovation, particularly in Southeast Asia (SEA).

Here’s a closer look at what may lie ahead under Trump 2.0.

For SEA: One less partner and one less competitor

Southeast Asia’s clean energy initiatives could face major funding challenges if Trump follows through on promises to cut climate spending and focus on domestic industries. The US is currently a key partner in the Just Energy Transition Partnership (JETP) programs with Indonesia and Vietnam, designed to help these countries shift away from coal and adopt cleaner energy sources. However, a Trump presidency could see the US disengage from these efforts, part of what experts call a likely “repeat of rollbacks and repeals.”

Such a move could significantly reduce pledged funds. The US has committed US$2 billion of the US$20 billion pledged to Indonesia by wealthy nations and financiers, and US$1 billion of the US$15.5 billion allocated for Vietnam. A full withdrawal would leave these JETP programs struggling for resources—at a time when funds are already slow to materialise.

That said, an immediate shock is unlikely. The US government isn’t a major direct funder of Southeast Asia’s energy transition. According to Joshua Crabb, head of Asia-Pacific equities at Robeco, bilateral US funds for clean energy in the region totaled just US$41 million between 2018 and 2022—two per cent of total financing from wealthy nations during that period. By comparison, Germany provided US$1.4 billion, making it the top contributor. Much of the US contribution comes indirectly, through multilateral lenders.

Still, a second Trump presidency risks ceding US leadership in climate technology to China, a nation already expanding its influence in Southeast Asia’s energy sector. For Southeast Asian economies, which are grappling with both the impacts of climate change and shifting geopolitical dynamics, this presents a unique challenge and opportunity. Without strong US involvement, these countries will have fewer bidders for the best climate technologies. At the same time, it may push them to develop stronger regional momentum and attract investment from other global players to fill the gap.

On the demand side, it is clear that technologies that solve real and existing world issues, coupled with being cleaner for the planet will continue to grow strong. But whether Southeast Asia can seize this moment to advance its clean energy goals and thrive sustainably will depend on how effectively it navigates the shifting global landscape. Opportunity favours those who adapt.

Trump administration’s retreat may cede climate tech leadership to China

Trump’s first term included substantial efforts to undermine federal incentives for renewable energy. Paradoxically, the climate tech sector still advanced, driven largely by private investors stepping in where the government retreated.This time, however, the dynamics are more complex, as climate technology has increasingly become part of the geopolitical tech race between major powers. Key federal tax credits and grants that have nurtured innovations like carbon capture, green hydrogen, and electric vehicles (EVs) are at risk of severe cutbacks, compelling companies to recalibrate strategies.

Also Read: The intersection of tech and climate change: 5 key forces that will redefine the global market

In regards to clean technologies, since 2023, China has installed nearly 500 gigawatts of wind and solar capacity—equivalent to the combined capacity of France, Germany, and the UK. The country’s EV progress also has been nothing short of a miracle, EVs made up a remarkable 25 per cent of all passenger car sales in the country, far outpacing the one in seven (14 per cent) sold in the United States and the one in eight (12.5 per cent) in Europe. The sales momentum shows no signs of slowing. According to HSBC, EV adoption in the world’s second-largest economy is projected to soar to an impressive 90 per cent by 2030.

It’s not just consumers driving the EV surge—manufacturing is thriving as well. Chinese brands now account for nearly half of all EVs sold globally, solidifying their leadership in the industry. One of the nation’s EV “darling child” — BYD is rapidly expanding into Southeast Asia, planning to establish new assembly plants in Cambodia and Indonesia, adding to its existing facility in Rayong, Thailand. This expansion holds significant promise for the field of climate innovation for Southeast Asia, paving the way for advancements from novel battery materials to more efficient charging infrastructure.

Urgency of sustainable development in SEA

Southeast Asia must act urgently to ensure a sustainable future. The region faces significant energy security risks, relying on the Middle East for 60 per cent of its oil imports, which exposes it to geopolitical shocks like the war in Ukraine. In 2022, fossil fuel subsidies hit a record US$105 billion, and without change, annual oil import bills could soar to US$200 billion by 2050. Accelerating clean energy adoption could slash these costs to US$90 billion, making the shift essential.

The environmental stakes are high. In 2023, 85 per cent of the population endured air pollution levels above safe limits, leading to 300,000 premature deaths from outdoor pollution and 240,000 from indoor cooking fuels. Extreme weather, like record-breaking typhoons and flooding in 2024, is adding stress to communities and infrastructure.

Also Read: Will climate change force us to re-imagine travel in the future?

Despite these challenges, Southeast Asia has massive potential in clean energy. The sector has created 85,000 jobs since 2019 and is growing rapidly. The region leads in solar manufacturing, with Vietnam, Thailand, and Malaysia among the top producers outside China. Indonesia, a major player in EV batteries and global nickel supply, plans to expand its 16 GWh battery capacity to 40 GWh by 2030, fuelling the transition to electric vehicles.

Transportation emissions remain a challenge, but solutions are emerging. Biofuels meet 10 per cent of road energy demand, while EVs already make up 15 per cent of car sales in Vietnam and 10 per cent in Thailand. Expanding public transit and electrifying two/three-wheelers, which are common in the region, could make a huge difference.

Southeast Asia also needs cleaner industries to stay competitive. Technologies like bioenergy, hydrogen, and carbon capture offer solutions for sectors like nickel refining, while Singapore is leading efforts to decarbonise shipping. 

Put the technology where the problem is

In the end, the key for SEA is the application of technologies that tackle real-world problems. The solutions that truly make an impact are those that compete head-to-head with fossil-based options—offering cost parity, better unit economics, strong product-market fit, smart distribution strategies, or just being ahead of the curve.

It’s not enough for these technologies to simply “be green.” They need to deliver undeniable competitive advantages to existing solutions. Only then, they can be Trump-proofed, or even future-proofed for that matter.

This region has the tools and opportunities at its disposal. The moment to take action is now.

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fileAI, a startup specialising in horizontal file processing and AI workflow automation, has announced US$14 million in Series A funding.

This round, led by returning investors Illuminate Financial, Antler Elevate, Insignia, and Heinemann Group, brought the total funding to over US$20 million.

The newly acquired funds will boost product development and deepen the company’s expertise in AI file management.

fileAI positions itself as a crucial solution for enterprises aiming to significantly cut back-office expenses and enhance efficiency through the power of AI. Its technology addresses the challenge of managing unstructured data, which makes up 80-90 per cent of global content, with diverse formats like PDFs, spreadsheets, and emails, often in multiple languages.

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

The startup uses advanced predictive and generative AI, which allows for seamless text, image, and video processing, integrating with existing enterprise tools, which leads to reduced costs, greater productivity and improved data transparency.

In 2024, fileAI claims to have processed and automated workflows involving over 200 million pages and files, saving clients an estimated 420,000 hours and over US$7 million.

Its solutions are used across various industries, including financial services, insurance, accounting, and manufacturing. The platform can process files in over 200 languages, making it suitable for multinational companies.

The firm’s global client base includes MS&AD, Toshiba, KFC, DirectAsia, and Nippon.

fileAI is preparing to launch a new platform in Q1 designed for finance, operations, and legal teams. The platform uses proprietary file processing models to automate workflows for long-form documents, providing features such as document comparison, discrepancy detection, data validation, and compliance assurance.

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Singapore-based GOAT Gaming, a prominent platform for competitive and casual gaming on Telegram, has announced a strategic funding round of US$4 million.

The investment, with participation from TON Ventures, Karatage, Amber, and Bitscale, brings GOAT Gaming’s total funding to US$15 million.

This financial boost aims to accelerate the company’s vision of making Telegram the most accessible gateway to Web3, bringing a player-owned economy to the next billion users.

Also Read: Can free-to-play models ignite new player interest for Web3 gaming?

GOAT Gaming, born from the creators of Mighty Bear Games, is evolving interactive entertainment by adapting to new platforms such as Telegram. Since its launch on Telegram in August, the platform claims to have amassed 5 million active users, driven by the popularity of games such as Waifu Clash and Kitty Solitaire. Now, the focus is on unlocking AI-powered experiences within Telegram’s Mini Apps.

A key aspect of GOAT Gaming is its proprietary AI technology, refined since 2016, which enabled the company to launch 37 games in 2024. This technology is being shared with the community via AlphaGOATs, autonomous AI agents powered by a dataset of over 100 million gaming transactions. Starting on February 6th, AlphaGOATs will allow anyone to create, compete, and earn, paving the way for a new era of democratised gaming.

Simon Davis, CEO of GOAT Gaming, stated that Telegram is the most accessible gateway to Web3. The company intends to host hundreds of games and integrate numerous autonomous agents to deliver seamless, AI-driven gaming.

GOAT Gaming aims to launch over 50 games powered by AlphaAI by the end of 2025, alongside partnering with third-party studios.

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