A new report from Metacomp, a Singapore-headquartered digital assets provider, reveals that systemic inefficiencies in global fund flows are creating a staggering US$6.2 trillion opportunity gap, severely hindering the growth and survival of small and medium enterprises (SMEs) across Southeast Asia.

The firm, regulated by the Monetary Authority of Singapore (MAS) and focused on cross-border FX and digital assets infrastructure, published its whitepaper, Cross-Border Payments for SMEs: Voices in ASEAN and the Rise of Stablecoins, which diagnoses critical structural flaws in current settlement systems. Crucially, the study argues that stablecoins have moved beyond marginal status and must now be integrated as essential infrastructure to provide faster, fairer settlement.

Also Read: How stablecoins are quietly reinventing the global dollar system

The findings are set to reshape the dialogue around how tech solutions can address the disadvantages faced by SMEs. These companies play a central role in regional trade but remain excluded from efficient global infrastructure.

The US$6T problem: Costing ASEAN SMEs survival

The whitepaper identifies five key inefficiencies, pointing out that daily global FX trading volumes exceed US$7.5 trillion, yet blockchain-based settlements account for less than five per cent annually. This imbalance defines the US$6.2 trillion opportunity gap where SMEs are systematically excluded from fast settlement rails.

The financial toll on smaller businesses is acute, with delays proving more destructive than explicit fees. Key data points highlight the immediate threat to SME margins:

• Delay costs erase value: Each day of settlement delay costs SMEs between 0.6 per cent to 2.1 per cent of the transaction value.
• Revenue collapse: SMEs profiled reported lost contracts and devastating revenue drops of up to 50 per centwhen essential funds failed to arrive on time.
• Disproportionate fees: Smaller firms routinely pay 15 to 30 per cent in fees on cross-border transactions–a punitive cost when large corporates benefit from negotiated, preferential pricing.

“Every day of delay erodes SME value,” stressed Eddie Hui, Co-President and COO of MetaComp. “This is not about marginal cost savings, it is about survival and growth”.

Stablecoins transition from margin to mainstream finance

The report provides unique insight into how digital payment rails already carry systemic financial implications, noting that stablecoin flows are no longer marginal. These flows can now influence US Treasury yields by 2 to 8 basis points, underscoring their growing importance to global financial markets.

Dr Ben Charoenwong, Associate Professor of Finance at INSEAD, commented on the gravity of the structural disadvantages facing businesses: “SMEs face challenges that go beyond transaction fees. Settlement delays erode working capital, regulatory fragmentation creates uncertainty, and volume-based barriers exclude growing businesses from efficient infrastructure. These structural issues must be addressed if SMEs are to participate fully in global trade”.

The study frames the evolution of cross-border payments in three distinct phases:

• Stage I (traditional/SWIFT): A USD-centric model with significant settlement delays of two to seven days.
• Stage II (Web 2.5/today): The current transition phase marked by the emergence of stablecoins and the development of hybrid infrastructure that blends regulatory compliance with blockchain programmability. MetaComp operates within this stage.
• Stage III (Future/sovereign stablecoins): A future decentralised ecosystem where national stablecoins exchange directly via blockchain, ensuring point-to-point transfers in a multi-polar world while maintaining regulatory oversight.

Adding complexity, scale barriers and fragmented regulatory regimes–such as the varying travel rule thresholds (from €0 in the EU, SGD 1,500 in Singapore, to US$3,000 in the US)–further exclude SMEs from accessing necessary efficient infrastructure.

Closing the gap with hybrid infrastructure

MetaComp maintains that the immediate solution lies in developing a hybrid infrastructure capable of delivering “Stage II” settlement today, while building the foundations for “Stage III”.

Also Read: How stablecoins are disrupting traditional financial systems

To address these inefficiencies, MetaComp has launched StableX. StableX is an institutional-grade cross-border FX and liquidity routing platform designed to bridge digital and traditional finance. It leverages stablecoins and USD to optimise multi-currency conversions and settlements intelligently.

Crucially for SMEs operating in ASEAN, StableX delivers same-day (T+0) settlement across 30 currencies and six major stablecoins.

Tin Pei Ling, Co-President of MetaComp, concluded that reliable infrastructure is key for regional growth: “SMEs remain at the heart of ASEAN’s economies, yet too often they face barriers that slow growth and limit opportunity. What they need is confidence that payments will be fast, compliant, and reliable across borders. At MetaComp, our focus is on closing this gap with solutions such as StableX that combine innovation and regulation to deliver faster, fairer settlement.”

The post Stablecoins could unlock US$6.2T for ASEAN SMEs: Metacomp study appeared first on e27.

The artificial intelligence sector is experiencing an unprecedented surge, driven by what many observers describe as an arms race among tech giants and startups alike. Major players like Microsoft, Amazon, Nvidia, and Oracle are pouring billions into promising AI ventures such as OpenAI, Anthropic, and Scale AI, creating intricate funding ecosystems that blur the lines between investment and self-serving commerce.

These startups, in turn, funnel much of that capital back into the investors’ own products, including cloud computing services, specialised chips, and data infrastructure. This circular flow of money strengthens the positions of a handful of dominant companies while raising serious questions about competition and the efficient use of resources in a field still in its early stages.

Circular capital loops

This setup resembles a high-stakes poker game where the house always wins, potentially stifling innovation from smaller players and inflating valuations beyond sustainable levels. The industry appears to operate on the belief that AI could evolve into a winner-take-all market, justifying these closed loops as a necessary hedge against being outpaced.

Recent reports indicate OpenAI’s valuation has climbed to around 324 billion dollars, with Anthropic not far behind at 178 billion dollars, figures that underscore the rapid escalation in private market enthusiasm. Scale AI, meanwhile, maintains a valuation near 29 billion dollars, often tied more to projected spending on infrastructure than to immediate revenue streams.

Also Read: Singapore tops global AI hiring charts: One in six jobs now reference AI

Regulatory scrutiny mounts

Regulatory scrutiny is intensifying as these dynamics unfold, with authorities expressing growing alarm over market concentration and potential antitrust issues. Nvidia, commanding over 80 per cent of the AI chip market, faces investigations from the US Department of Justice regarding its acquisition of Run:ai, a move that could further entrench its dominance.

The Financial Stability Board has issued warnings about the systemic risks posed by AI’s heavy reliance on a limited number of infrastructure providers, highlighting vulnerabilities in areas like cybersecurity and model governance that could cascade through the financial system. In my view, these concerns are well-founded, as the concentration of power in a few hands echoes past tech bubbles where over-dependence on key suppliers led to widespread disruptions.

Capital allocation risks

The circular capital loops exacerbate this, as seen in deals where OpenAI commits to massive spending on Oracle’s cloud services following investments from similar tech behemoths. While analysts remain optimistic about AI’s transformative potential in the long term, they caution against short-term returns hampered by regulatory hurdles and inefficient capital allocation.

The risk of overvaluation looms large, with private AI firms’ worth often predicated on future infrastructure expenditures rather than proven profitability, a pattern that could precipitate corrections if growth expectations falter.

Macro market backdrop

Shifting to broader economic indicators, global risk sentiment stays subdued as markets await new developments amid worries ranging from labor market slowdowns to persistent inflation. Investors are closely monitoring upcoming US initial jobless claims data, with estimates around 233,000 following last week’s 231,000, a figure that could sway perceptions of the Federal Reserve’s policy direction.

The Swiss National Bank recently held its policy rate at 0.00 per cent, aligning with expectations and reflecting a cautious approach to monetary easing in the face of stable inflation. Wall Street closed lower on Wednesday, with the Dow Jones Industrial Average down 0.37 per cent at 46,121, the S&P 500 off 0.28 per cent at 6,638, and the Nasdaq declining 0.34 per cent to 22,498, driven by retreats in technology stocks amid valuation concerns.

Also Read: With AI comes huge reputational risks: How businesses can navigate the ChatGPT era

Wall Street and commodities

Treasury yields edged higher, with the 10-year note at 4.147 per cent and the 2-year at 3.604 per cent, signalling mixed expectations for interest rate paths. The US dollar index strengthened by 0.6 per cent to 97.873, while gold prices dipped 0.7 per cent to 3,736 dollars per ounce, pulling back from recent highs as the dollar gained ground. Brent crude rose 2.5 per cent to settle at 69.31 dollars per barrel, buoyed by supply concerns from ongoing geopolitical tensions in Ukraine impacting Russian oil facilities.

Asian equities showed mixed performance, with Chinese markets buoyed by AI and tech optimism, though early trading today indicated continued variability. US equity futures point to a higher open, suggesting some rebound potential. In my opinion, this muted sentiment reflects a market grappling with uncertainty, where AI hype provides sporadic lifts but broader economic signals like job data and yields temper enthusiasm, potentially setting the stage for volatility if inflation proves stickier than anticipated.

Crypto under pressure

Turning to cryptocurrencies, contrary to chatter among some circles that altcoins are outperforming Bitcoin, the data paints a different picture of weakening momentum for alternatives. The CoinMarketCap Altcoin Season Index stands at 68 out of 100, still in altcoin territory but down 4.23 per cent over the past 24 hours from last week’s 77, indicating a cooling trend.

Bitcoin’s dominance has risen to 57.97 per cent, up 0.25 points in the last day, as capital shifts toward the flagship cryptocurrency amid altcoin retreats. Ethereum, a bellwether for the sector, has fallen 11.6 per cent weekly, with Chainlink down 11.2 per cent and Cardano dropping 12.0 per cent, underscoring broader underperformance.

Derivatives markets reinforce this caution, with altcoin funding rates turning negative at -0.00035835 per cent and open interest declining 4.1 per cent in 24 hours, compared to Bitcoin’s more resilient metrics.

Investor takeaway

From my standpoint, this shift signals a risk-off environment in crypto, where Bitcoin’s perceived safety draws inflows during uncertainty, much like gold in traditional markets. Historically, Altcoin Season Index readings dipping below 70 often herald Bitcoin dominance rebounds, and current social discussions around Ethereum’s high fees and upcoming upgrades like Pectra in Q4 2025 add to the drag.

Traders unwinding leveraged positions faster in altcoins than in Bitcoin further erodes confidence in near-term rallies for alternatives, suggesting investors should prioritise Bitcoin amid this rotation.

Overall, the interplay between AI’s frenetic funding cycles, emerging regulatory pressures, subdued macro conditions, and crypto’s Bitcoin-centric tilt illustrates a financial landscape fraught with opportunity and peril.

I believe the AI arms race, while fuelling innovation, risks over-investment that could echo the dot-com era’s excesses if not tempered by competition and oversight. Investors would do well to diversify beyond concentrated bets, monitoring systemic risks and market signals closely to navigate what may prove a pivotal juncture for technology-driven growth.

—

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.

Enjoyed this read? Don’t miss out on the next insight. Join our WhatsApp channel for real-time drops.

Image courtesy: Canva Pro

The post Circular capital: Inside the closed-loop ecosystem propelling (and distorting) the AI boom appeared first on e27.

On April 10, 2025, IMI Venture Studio and e27 hosted an exclusive Venture Capital Roundtable lunch at LeVeL33 in Singapore. The session convened partners and investment leaders from some of the region’s most forward-thinking funds—spanning agnostic, deep-tech, climate-focused, B2B, and growth-stage strategies, all actively investing globally.

Why this collaboration mattered

The venture capital ecosystem in Asia continues to mature, with B2B startups facing unique challenges in fundraising, market entry, and scaling. IMI Venture Studio, committed to building ventures aligned with IMI plc’s long-term strategy in industrial and energy sectors, partnered with e27 to design a roundtable that enabled frank, peer-level discussions among active investors.

The session addressed pressing questions for both founders and investors: How can B2B startups grow capital-efficiently? What defines a strong founder-market fit? And what role do strategic partnerships play in scaling ventures sustainably?

Key themes that emerged

The closed-door exchange surfaced rich insights, including:

• The importance of capital-efficient growth models in navigating competitive funding environments.
• Identifying founder qualities that inspire investor confidence and resilience.
• Adapting to evolving market trends and aligning with industrial and energy innovation opportunities.
• Leveraging strategic partnerships to accelerate sustainable scale.

Together, these discussions highlighted not only what makes a B2B startup investable but also how VCs evaluate long-term growth potential.

The e27 x IMI approach

e27 and IMI Venture Studio worked hand-in-hand to design the agenda, secure a diverse mix of participants, and ensure the conversation reflected the realities of today’s VC landscape. The result was a seamless, high-impact roundtable that connected global investment perspectives with IMI’s venture-building vision.

As Michelle W. of IMI Venture Studio shared: “The e27 team quickly understood our goals, guided us from strategy to execution, and delivered a seamless, high-impact roundtable with top-tier VC leaders. Their professionalism, foresight, and ability to create meaningful dialogue made for a successful session. We’re grateful for the collaboration and look forward to working together again.”

A powerful gathering of investors

We were proud to welcome investment leaders from: Adaptive Capital Partners, BEENEXT, Cocoon Capital, Eurazeo, Gobi Partners, iGlobe Partners, Insignia Ventures Partners, Tembusu Partners, Purpose Venture Capital, Qualgro Partners, Rakuten Capital, The Radical Fund, Tin Men Capital, Vickers Venture Partners, and TRIREC.

This collaboration showcased how ecosystem partnerships spark meaningful exchange. By combining IMI Venture Studio’s focus on long-term venture building with e27’s ability to convene the region’s most respected investors, the roundtable created a platform for honest conversations that strengthen Southeast Asia’s innovation landscape.

Interested in creating impact with us? Contact Innovate here.

—

Enjoyed this read? Don’t miss out on the next insight. Join our WhatsApp channel for real-time drops.

The e27 team produced this article

We can share your story at e27 too! Engage the Southeast Asian tech ecosystem by bringing your story to the world. You can reach out to us here to get started.

Featured Image Credit: IMI Venture Studio and e27

The post Inside the e27 x IMI Venture Studio roundtable with Southeast Asia’s leading VCs appeared first on e27.

On January 16, 2025, TikTok for Business and e27 hosted the highly anticipated Ramadan Ready for SMBs: Elevate Your Brand’s Story on TikTok at Hotel Maya in Kuala Lumpur. More than 400 business owners, marketers, and advertisers came together for a day of insights, practical workshops, and networking, all designed to help small and medium-sized businesses make the most of one of the most important cultural moments in Southeast Asia.

Why this collaboration mattered

For SMBs, Ramadan is more than just a sales season—it’s a cultural and community moment that shapes consumer behavior. By understanding how audiences engage during Ramadan and Hari Raya, businesses can create more authentic connections that drive impact well beyond the festive period.

TikTok for Business, known for enabling creativity and community-driven marketing, partnered with e27 to create an immersive experience that combined data-driven insights with hands-on learning opportunities. Together, we designed an event where SMBs could discover how to tell stories that resonate, leverage TikTok’s ad solutions, and optimize campaigns across every phase of Ramadan.

Key themes that emerged

The day’s program featured TikTok SMB Account Managers Michelle Lau and Eric Chen, who shared strategies for using TikTok’s innovative ad formats to craft authentic, engaging campaigns. Real-world case studies demonstrated how brands boosted awareness, engagement, and sales during Ramadan through TikTok’s ecosystem.

A highlight of the event was the panel discussion with Nestlé and Applecrumby, where speakers emphasized how aligning brand messaging with values such as reflection, generosity, and community strengthens audience connection. Panelists also highlighted the growing importance of short-form, visually compelling content and the role of influencer collaborations in fostering trust and engagement.

Workshops further equipped attendees with practical knowledge on campaign optimization and success measurement, ensuring participants left with actionable tools to implement immediately.

The e27 x TikTok approach

e27 partnered with TikTok for Business to ensure the event achieved both scale and impact. From planning through execution, the focus was on creating a seamless attendee experience that maximized participation and engagement.

TikTok’s Daniel R. commended the collaboration, noting that the event was flawlessly organized and showcased exceptional project management. From meticulous planning to seamless execution, every detail was handled professionally and efficiently. He highlighted the e27 team’s role in ensuring high attendance through timely and effective reminders, which significantly contributed to the event’s success. The experience, he emphasized, reflected the professionalism, proactivity, and capability of the team throughout the partnership.

This collaboration demonstrated how thoughtful planning and community outreach can transform a corporate event into a vibrant platform for learning and connection.

Looking ahead

The success of Ramadan Ready for SMBs underscored TikTok for Business’s commitment to empowering SMBs with tools to thrive during high-impact seasons, and highlighted e27’s role in enabling knowledge exchange across Southeast Asia’s innovation ecosystem.

As brands prepare their 2025 Ramadan campaigns, the insights from this event will continue to guide them in creating authentic, resonant, and results-driven strategies on TikTok.

Interested in creating impact with us? Contact Innovate here.

—

Enjoyed this read? Don’t miss out on the next insight. Join our WhatsApp channel for real-time drops.

The e27 team produced this article

We can share your story at e27 too! Engage the Southeast Asian tech ecosystem by bringing your story to the world. You can reach out to us here to get started.

Featured Image Credit: Photo by Fotos on Unsplash

The post Ramadan Ready for SMBs: TikTok for Business partners with e27 in Kuala Lumpur appeared first on e27.

Today’s investors aren’t just cautious; they’re forensic. Where due diligence once took two months, it now routinely takes six. Limited partners (LPs) are pausing, opting for safe fixed-income returns over higher-risk bets. Add the geopolitical overlay—wars, tariffs, and strategic tech decoupling—and you get a global investment climate defined by hesitation.

At Salamander Advisory, we work closely with B2B tech startups trying to scale in this environment. What we’re seeing is both sobering and hopeful. The startups that survive, even thrive, are doing so because they’re adapting fast. They’re running lean. They’re managing their cash flow with rigour and building investor-ready documentation well in advance of need.

The new pitch room reality

The shift has also changed the pitch room dynamic. Investors are asking tougher questions earlier. “What problem are you solving?” is still the first ask, but they now expect a clear, urgent market need, not a hypothetical one. Repeat founders (those with prior exits or failures) are favoured.

Startups with vague GTM plans or flimsy financials? They don’t make it past slide three. Even early-stage investors now want to see realistic unit economics, proof of customer intent, and a credible path to revenue within 18 to 24 months. The era of funding on vision alone is over.

Also Read: Funding the future: Why purpose-driven investing is the only smart bet

Geopolitics as a gatekeeper

There’s also a new wrinkle: geopolitics now shapes investment strategy.

Founders are quietly learning that taking money from one region can lock them out of others. For example, Chinese capital might raise eyebrows for startups hoping to expand into the US. This is forcing founders to pick a lane far earlier than they used to. The savvier ones are seeking regional investors with cross-border networks, effectively using capital not just as cash but as a passport to new markets.

Innovation under pressure

Despite all this, innovation in the region isn’t slowing. If anything, it’s maturing. Today, we’re seeing true grassroots innovation in Southeast Asia, not just adaptations of Western models. Startups need to strike a balance between creativity and operational discipline, financial governance, and a narrative that they can effectively convey in 12 slides or less.

Ready from day one

Funding is still possible in 2025, but investors prioritise startups that show they’re ready to operate with the maturity of a scale-up from day one. Those who prepare early, stay disciplined, and align with the right partners will continue to find opportunities even in a cautious climate. In many ways, this moment is less about scarcity of capital and more about clarity of execution.

—

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.

Enjoyed this read? Don’t miss out on the next insight. Join our WhatsApp channel for real-time drops.

Image courtesy: Canva Pro

The post Funding challenges and strategies for B2B tech in 2025 appeared first on e27.