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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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In 2023, Singapore saw a significant increase in online scam cases, with 46,563 reported incidents, marking the highest number since tracking began in 2016. This figure represents a 46.8 per cent increase from the previous year. In total, scam victims in Singapore lost US$651.8 million in 2023, a slight dip from the US$660.7 million lost to scammers in 2022.

Notably, malware scams emerged as a new concern, with 1,899 cases reported and SG$34.1 (US$25.1) million lost, highlighting the evolving tactics used by scammers. These figures underscore the ongoing challenge of combating scams in Singapore, with over SG$2.3 (US$1.7) billion lost to scams since 2019.

Why do people believe scammers?

There are five reasons people fall victim to scams:

Financial desperation

Financial desperation often becomes a significant factor because individuals are facing economic hardship or seeking quick financial solutions. Scammers capitalise on this desperation by presenting schemes that seem like a lifeline out of financial difficulty.

In Singapore, job scams topped the list of scam types, with 9,914 reported cases and losses totalling at least SG$135.7 ( US$100.1) million. E-commerce scams followed closely, experiencing a more than twofold increase in 2023 with 9,783 cases and losses amounting to at least SG$13.9 (US$10.3) million. Investment scams also featured prominently, with 4,030 cases and losses totalling SG$204 (US$151.5) million.

Trust in technology

The other reason individuals fall for scams is an implicit trust in technology. As we become increasingly reliant on digital platforms for communication, transactions, and information, scammers exploit this trust to their advantage. The belief that technology is inherently secure can lead individuals to overlook warning signs and engage in risky online behaviours.

The ubiquity of social media and online platforms creates an environment where individuals may be more willing to click on links, download files, or share personal information, inadvertently opening the door for scammers to exploit their trust.

Psychological manipulation

Scammers are adept at psychological manipulation, preying on basic human emotions such as fear, greed, and urgency. Whether through enticing offers, alarming messages, or fabricated scenarios, scammers create a sense of urgency that clouds individuals’ judgement. The desire for financial gain or fear of missing out often overrides rational thinking, making individuals more susceptible to falling for scams.

Also Read: Securing tomorrow’s finances: Navigating the rise of digital banks with cybersecurity

In the digital world, social engineering tactics play a pivotal role as scammers exploit personal relationships and glean information from social media to establish a false sense of trust. This tactic makes it challenging for even the most vigilant individuals to discern between genuine and fraudulent communications.

Lack of digital literacy

A significant contributor to falling victim to scams is the lack of digital literacy among users. As technology evolves, scammers continually develop sophisticated methods to deceive individuals. Those who are not well-versed in recognising online threats may inadvertently expose themselves to scams.

Educational initiatives on digital literacy are crucial to empowering individuals with the knowledge to identify red flags, distinguish authentic communications from scams, and protect their personal information online.

Sophistication of scams

Scams have evolved from simple phishing emails to highly sophisticated operations, including malware attacks and social engineering techniques. The increasing complexity of scams makes it challenging for individuals to stay ahead of the threat landscape. Scammers exploit vulnerabilities in software, manipulate trusted platforms, and adapt their tactics to stay one step ahead of security measures.

Why are scams bad for business?

Scams are detrimental to businesses for several reasons: 

Reputation damage

Involvement in or victimisation by scams can tarnish a company’s reputation. Scams erode trust and confidence in the business, damaging its reputation and credibility. When customers fall victim to scams associated with a particular business, they are likely to lose trust in its integrity and may avoid engaging with the business altogether in the future. This loss of trust can lead to a significant decline in customer loyalty and ultimately impact the business’s bottom line.

Financial loss

Scams often result in direct financial losses for businesses. Additionally, dealing with the aftermath of scams, such as addressing customer complaints, providing refunds, and implementing security measures, incurs financial costs and consumes valuable time and resources that could otherwise be allocated to growth and innovation. 

Legal consequences

Scams expose businesses to legal consequences, particularly when customer data is compromised. In such instances, businesses may encounter legal actions, regulatory fines, or other penalties. The association with fraudulent activities can result in legal repercussions and regulatory scrutiny, further damaging the company’s image and potentially leading to fines or legal actions. Consequently, scams pose a serious threat to businesses by undermining their reputation, financial stability, and legal standing.

How to avoid being scammed online?

Insufficient cybersecurity invites identity theft and financial losses as scams target both money and personal information. Vigilance is key – understanding their tactics and knowing how to respond is crucial for individual consumers, not just large corporations. Take proactive steps to protect yourself.

Stay informed and educated

Keep yourself updated on the latest scams and tactics employed by fraudsters. Stay informed through news articles, official announcements, and cybersecurity resources.

Verify information

Be cautious of unsolicited emails, messages, or phone calls. Verify the legitimacy of the communication by contacting the organisation directly using official contact information rather than using the contact details provided in the suspicious message.

Also Read: Navigating cybersecurity: Antivirus vs endpoint protection

Use strong passwords

Create strong, unique passwords for your online accounts, and avoid using the same password across multiple platforms. Consider using a reputable password manager to generate and store complex passwords securely.

Enable two-factor authentication (2FA)

Implement 2FA whenever possible. This adds an extra layer of security by requiring a second form of verification, such as a code sent to your mobile device, in addition to your password.

Be sceptical of unsolicited requests

Be cautious when receiving unexpected requests for personal or financial information. Scammers often pose as reputable organisations seeking sensitive details. Verify the legitimacy of such requests independently.

Monitor bank and credit card statements

Regularly review your bank and credit card statements for any unauthorised transactions. Report any discrepancies to your financial institution promptly.

Use reputable antivirus software

Install and regularly update reputable antivirus and anti-malware software on your devices. This helps protect against malicious software that scammers may use to compromise your system.

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This article was first published on March 12, 2024

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The beginning of a new year brings a different of energy. There is hope, new resolutions, and the desire for things to be happier and better. There is a sense of willingness to change and improve – for the new year to be THE YEAR!

And for leaders, it’s also a crucial time to refocus and re-energise the team. Running FuturByte for the last few years has taught me that kicking off the year with the right mindset can make a big difference. Less conversations around what sucks and more around what is in the pipeline.

But, before setting new goals, take a moment to acknowledge what is already accomplished and it doesn’t have to be big wins. Too often, we race ahead without celebrating the milestones we have hit.

Pause to reflect on everything that went right, despite the challenges. All the stuff your people achieved even when things weren’t always Sunday-like. It is important to make people feel seen, which encourages them to continue their efforts.

And please set meaningful goals that add value to their personal and professional growth – not just to your business. Empty metrics or vague aspirations can leave people feeling uninspired. Instead, align your goals with a vision that excites your team.

Encourage your team to set their own professional goals too. When people understand how their contributions contribute to a larger vision, they feel more motivated and engaged.

Also Read: Will machines start taking over our lives? Here are digital technologies that will change our world by 2025

Create a culture of open and honest communication. Regular one-on-one meetings, team huddles, and informal catchups are essential for building trust and ensuring everyone feels heard.

Also, professional development is one of the best morale boosters out there. When people know that they are learning and growing, they are naturally more engaged. This year, we are thinking introducing new learning opportunities at FuturByte.

We want to help our team up-skill in areas they are passionate about. Growth is a two-way street, after all.

Burnout is a real challenge, especially as teams strive to meet ambitious goals. As leaders, it’s our job to ensure that well-being is never overlooked. Let’s encourage our teams to take breaks, unplug after work hours, and maintain a healthy work-life balance.

Work can get stressful. Find ways to inject fun into the workplace. Celebrate birthdays, project milestones, and even the end of a challenging week. These small moments of joy contribute significantly to a positive and supportive team culture.

As a leader, your energy is contagious. Approach the new year with optimism and enthusiasm. Be transparent about challenges but focus on the opportunities ahead.

Let’s make this year one to remember – a year filled with growth, collaboration, and countless reasons to celebrate!

Cheers to 2025!

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Lever VC, a global alternative protein venture capital fund based in Hong Kong, has announced the first close of its Fund II, securing an initial US$50 million.

Fund II will invest in early-stage companies within the global food and agritech sector.

This news comes with the announcement of the fund’s first five investments into innovative tech startups across North America, Europe, and Asia. The fund remains open to new investors until its final closing later in the year.

Building on the success of its US$80 million Fund I, Lever VC’s Fund II has attracted a diverse group of limited partners (LPs), including institutional investors, funds of funds, family offices, and leading food and agriculture companies from five continents.

Also Read: Lever VC makes first close of its Fund 1 at US$23M; targets final close at US$50M

Lever VC was founded by Nick Cooney and Lawrence Chu (Partner), who have been investing in the alternative protein sector since 2015. They were also investors in Beyond Meat, Impossible Foods, Memphis Meats, JUST, Aleph Farms, and Kite Hill.

Lever invests in early-stage plant-based and cell-cultivated meat and dairy companies. Its average ticket size for initial investments in portfolio companies is around US$500,000.

The firm is an investor in Singapore-based TurtleTree Labs and Hong Kong-based Avant.

“With their massive category sizes, compelling CAGR, and consistently strong exit environments, food and agritech represent areas of significant opportunity for those with the right expertise,” stated Cooney. “We look forward to working to continue driving outsized returns for our investors, as well as to bringing direct deals, insights, and business development opportunities to LPs with strategic goals in the sector.”

The Fund II has already made its first five investments, supporting companies like novel fats producer Gavan, novel sugar replacement developer Oobli, agritech software/digitisation players Flox AI and HerdDogg, and meat replacement ingredient producer Mush Foods.

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Reliable IT infrastructure is an indispensable part of a modern business. However, what’s sufficient today may not be tomorrow, and far too many startups fail to plan appropriately for that scenario. As you start to piece together your company, you must ensure your IT infrastructure is scalable.

Why your startup needs scalable IT

It’s important to foster scalability from the beginning because scaling up without prior planning is often harder than leaders expect. Tech quickly becomes outdated in today’s environment, but IT hardware and software licenses are expensive. As a result, 50 per cent of thought leaders in Southeast Asia say high infrastructure costs and legacy technology are a digital future’s most significant obstacles.

Your business must be able to capitalise on the latest technological solutions. Failing to keep up with fast-moving developments like artificial intelligence (AI) will limit your ability to remain competitive. Competition aside, you’ll need higher capacity as your company and its customer base grow.

Modernisation is essential, but replacing legacy systems every few years without extensive planning isn’t financially or operationally viable. The only way to manage these seemingly competing interests is to build a scalable solution from the start.

How to build a scalable IT infrastructure

Scalable IT can be challenging, but it’s easier when you implement some best practices while your business is still young. Here are five steps to follow to ensure long-term scalability.

• Embrace the cloud

The most crucial aspect of scalable IT infrastructure is moving to the cloud. On-premise hardware — especially servers and storage — is too expensive and time-consuming to install and maintain to be scalable. Cloud-native services, by contrast, naturally grow with you, and their costs typically reflect what you actually use.

Bear in mind that not all clouds are created equal. All vendors must have a strong record of upkeep and robust security. Look for the option to choose where your data centres are located, too, for regulatory purposes. Remember to use cloud-native software solutions once you switch to such environments.

Also Read: The future of education is AI: Here’s how it will look

Organisations with data of varying sensitivity or disparate use cases may consider a hybrid cloud. These setups offer a balance between on-premise privacy and cloud scalability, and data breach costs are significantly lower in hybrid clouds.

• Capitalise on modularity

The cloud provides the baseline for scalable IT, but your business must be able to take advantage of its flexible nature. Modularity is the key here. Breaking things down into smaller pieces you can work on independently without disrupting the whole will make it easier to expand as necessary in the future. 

Containerisation and micro-services architecture are helpful ways to make any in-house software modular. Splitting departments into smaller, focused groups — while maintaining communication between separate teams — will bring similar characteristics to your workflow itself. Across all IT considerations, look to remove dependencies so you can expand in one area without needing changes in another.

• Automate routine tasks

Scalable IT infrastructure requires quick reactions to necessary changes. While modular technology is part of this, your workforce must also be able to adapt. IT professionals will also need to take on additional work as your company grows, and new hires aren’t always an option. Automation is the solution.

Automating routine tasks increases uptime and reliability by minimising human error while freeing workers to focus on other work. Anything particularly monotonous or data-heavy is a good candidate for automation. Common use cases include data entry, reporting, backup management and network monitoring.

Modern AI can even streamline basic coding and manage load balancing to prevent service interruptions as you grow. You must keep an eye on such technologies to ensure they work properly and you can fix any errors, but ignoring them entirely will limit your scalability.

• Maximise visibility

As you adjust and expand your IT infrastructure, keep thorough records of everything. Future growth will be difficult if you don’t have the whole picture of your current IT environment. By contrast, vendor lock-in, incompatibility and similar challenges are less likely with full visibility.

Far too many IT setups lack transparency. A worrying 47 per cent of cloud adopters say poor visibility over where their data is presents a key management challenge. You can avoid similar situations by keeping a running inventory of all data locations, assets and devices. Use automated discovery and network mapping tools to maintain real-time transparency in your environment.

Also Read: 5 essential organisational steps for your startup’s tech infrastructure

• Ensure scalable security

Scalability must not come at the expense of cybersecurity, either. Cybercrime is rising, and fast-growing systems are prime targets. Consequently, 47 per cent of tech executives expect cloud-based pathways to pose their biggest risks, and 46 per cent say the same about web-based applications.

The key to a secure cloud is cloud-native security. When your cybersecurity solution is designed specifically for cloud environments, it will do a better job of scaling up as your IT infrastructure does.

Access restrictions and workflow considerations also demand attention. Implement the principle of least privilege and regularly re-train employees in best security practices as new threats emerge to keep your systems hardened against cybercrime.

Scalable IT enables better long-term growth

A scalable IT setup is indispensable in today’s business environment. You cannot grow and compete alongside the rest of the industry without rapid, safe and cost-effective expansion of your technology infrastructure.

While this need may seem challenging, it’s more than achievable if you begin now. Follow these steps today to ensure scalability and success tomorrow.

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