Sarana AI, an AI-powered human resource services startup in Indonesia, has concluded an undisclosed amount in a pre-seed funding round led by Fortress Data Services (FDS), a tech-based services provider for the banking and financial services industry.

The fresh capital will be used to incept and bolster Sarana AI’s platform.

Also Read: Future-proofing businesses and talent through technology

Sarana AI was established to address the critical need for advanced workforce development in Indonesia, where only 27.6 per cent of the workforce is skilled in digital literacy, technical skills, and problem-solving (Badan Pusat Statistik, 2021).

With the rapid adoption of technology, it is projected that by 2025, 50 per cent of all employees globally will require reskilling to align with industry demands (World Economic Forum, 2020).

Sarana AI’s platform is designed to close this gap. It provides a real-time pulse on organizational talent health with measurable metrics to improve employee retention and facilitate the rapid regeneration of workforce capabilities.

Aktsa Efendy, co-founder and President of Sarana AI, said: “Our goal is to empower businesses to increase their revenue per employee without the need to expand headcount proportionately. We firmly believe that AI is here to augment, not replace, human talent.”

Also Read: Envisioning the future: The critical challenges and opportunities of AI investment

Pak Sutjahyo Budiman of FDS added, “Talent recruitment, retention, and regeneration are the core components that enable scale and growth for all institutions. An automated and independent recruitment, feedback, and upskilling system will undoubtedly play a pivotal role to enact people development functions efficiently. We believe Sarana AI’s solutions will reshape the future of talent and HR function across collar spectrums in our country.”

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The 2011 film Moneyball depicted the innovative challenge of the Oakland Athletics, an underdog team in Major League Baseball. General Manager Billy Beane, played by Brad Pitt, led the team to a 20-game winning streak using a data-driven approach despite operating on a shoestring budget. This isn’t just a cinematic tale; it exemplifies a core strategy in modern business.

The ‘Moneyball theory’ of achieving maximum impact with minimal resources offers valuable lessons for Korean startups looking to enter Southeast Asian markets.

Since 2006, I’ve been immersed in Singapore’s venture capital and startup ecosystem, advising numerous Korean companies on their Southeast Asian expansion strategies. Throughout this process, I’ve consistently emphasised the ‘Moneyball approach’. The Southeast Asian market is more receptive to a ‘small ball’ strategy—focused on precise tactics—rather than a ‘big ball’ approach that relies on massive capital investment. This is akin to a baseball strategy that prioritises improving overall on-base percentage over relying solely on home run hitters.

The rationale behind this approach is as follows:

Firstly, Southeast Asia is not a single, unified market. While grouped under the ASEAN banner, each country has distinct legal systems, economic structures, and cultures. For instance, Singapore and Cambodia, though both Southeast Asian nations, have vastly different levels of economic development and business environments. Therefore, the approach used for large, homogeneous markets like the United States or China is unsuitable here. Instead, a tailored strategy considering each country’s unique characteristics is necessary.

Secondly, the economic scale of the Southeast Asian market is often overestimated. In fact, the combined GDP of the six major countries is about US$3.5 trillion, merely twice that of South Korea’s US$1.7 trillion. A significant portion of this is concentrated in Indonesia, which accounts for one-third of the total. Vietnam, despite having twice South Korea’s population, has only a quarter of its GDP. This suggests that the market may be more limited than Korean companies anticipate. However, considering the region’s high economic growth rates and young demographic structure, its potential remains significant.

Lastly, the Southeast Asian startup ecosystem is still in its infancy. While the region boasts around 30 unicorns, the startup ecosystem has only been developing in earnest for about a decade. The overall infrastructure, human resources, and capital markets are still immature compared to not only the United States but also South Korea. For example, there are significant disparities in startup founder resources and the number and scale of domestic listed companies. Consequently, it’s challenging to directly apply the startup growth models we’re familiar with, such as rapid expansion through large-scale funding and quick exit strategies.

Also Read: Digital transformation & AI revolution: Shaping Singapore’s F&B industry with Korean restaurant tech

In this context, an effective expansion strategy is the ‘Point-Line-Plane Strategy’. This approach doesn’t view Southeast Asia as a single market but focuses on individual countries or major cities. For example, concentrating on metropolises like Singapore, Jakarta, and Ho Chi Minh City, and combining this focus with specific industry sectors to accumulate small successes. In other words, it involves concentrating small-scale investments on ‘points’ where specific cities and sectors intersect, thereby increasing ROI and success rates. The strategy then involves connecting these successful ‘points’ to form ‘lines,’ and ultimately expanding into ‘planes’.

This approach is well-suited to the Southeast Asian environment, where achieving economies of scale through large-scale investments at a regional level is challenging. Starting from small points and gradually expanding—this strategy embodies the true ‘Moneyball theory’ for entering Southeast Asia.

The film ends with the song lyrics, ‘I’ve got to let it go. And just enjoy the show. Just enjoy the show’. For startups stepping onto the stage of entrepreneurship and global expansion, I hope they embrace this journey without fear and enjoy it wholeheartedly. As the saying goes, ‘Genius cannot overcome a person who tries, and a person who tries cannot overcome a person who enjoys’.

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In the high-pressure world of startups, burnout and resilience are major concerns for founders striving to build sustainable businesses.

The Echelon X panel discussion titled “Sustainable Hustling and Resilience for Startup Entrepreneurs: Tactics Founders Have Implemented to Reduce Burnout and Play the Long Game When Building Their Startups” offered valuable insights into navigating these challenges.

For founders grappling with burnout or seeking ways to bolster resilience for themselves and their businesses, the panel provided effective tactics for reducing burnout and fostering a sustainable approach to entrepreneurship. The discussion covered practical tips on managing stress, staying motivated, and ensuring long-term success while avoiding common pitfalls.

Moderated by Terence Chia, Co-Founder of Folklory, the panel featured:

• Joan Low, Founder and CEO of ThoughtFull
• Jx Lye, Founder and CEO of Acme Technology
• Evan Heng, Founder and CEO of Zenith Learning Group
• Henry Motte de la Motte, Founder and CEO of EDGE Tutor

By sharing their personal experiences and strategies, the panelists provided a roadmap for maintaining mental, physical, and emotional well-being while navigating the challenges of startup life. Their insights underscored the importance of self-care, community support, and a balanced approach to work and life, equipping entrepreneurs with the tools they need to play the long game and achieve sustainable success.

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Fundraising or preparing your startup for fundraising? Build your investor network, search from 400+ SEA investors on e27, and get connected or get insights regarding fundraising. Try e27 Pro for free today.

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In the startup and VC world, Generative AI (Gen AI) is certainly creating a big wave. If you are an entrepreneur and would like to start a business leveraging the power of the Large Language Models (LLMs) — or the name of it — what is the battle plan? What are the areas you may want to bear in mind?

I’ve been speaking to leading experts in the field. One of them is Dr. Dan Roth, Ph. D., who is a Distinguished Professor of Computer and Information Science at the University of Pennsylvania. He has decades of experience in the technology, software and AI innovation space. With one foot in the technical world and the other in the entrepreneurial world, Dr. Roth has a bird’s eye view of the Gen AI wave — as well as its nuances.

Here are the learnings:

Utilise existing language models

Building your own model from scratch requires significant investment and expertise. Leveraging existing models can save time and resources, allowing you to focus on fine-tuning for specific applications.

Identify your differentiators

Determine what sets your approach apart. This could involve using better or unique data, or applying data in more innovative ways. Fine-tuning models with high-quality, application-specific data can significantly enhance performance.

Also Read: Beyond the hype: Taking Gen AI mainstream with next-level automation

Save costs

• Use smaller models and optimise inference: Large models like GPT-4 are powerful but costly. Smaller models, even as compact as 3B or 7B parameters, can be highly effective and more economical. Fine-tuning these smaller models on your own data can further reduce costs. Investing in efficient inference technologies, such as model quantisation, can also significantly cut expenses.
• Distill models for cost-effective inference: Employing methods to distill smaller models can enhance their efficiency, making them more cost-effective for production use. This approach is being adopted by several startups to improve inference efficiency.
• Consider simpler models when appropriate: Not all problems require large language models (LLMs). For specific tasks like information extraction, smaller, fine-tuned models can outperform even the largest LLMs. Understanding the tasks your application needs to perform will help you choose the most appropriate and cost-effective model.
• Develop a robust evaluation protocol: Establish a comprehensive evaluation protocol that includes both automatic metrics and human assessments. This builds trust with investors by demonstrating a thorough understanding of your technology’s capabilities and limitations.
• Address hallucinations: Implement systems to evaluate and mitigate hallucinations in your models, focusing on both factual inaccuracies and reasoning errors. Utilise metrics like accuracy and F1 score, and ensure human evaluation is part of your assessment process.
• Be mindful of misinformation: Consider the potential for your models to generate toxic information or misinformation. Implement safeguards to prevent misuse and minimise the risk of information pollution.

“You have to think about who will use your tools and whether they will be careful or not. […] It could be a PR disaster if someone generates toxic information or misinformation, which could find its way to [X]. You need to think about this, and it’s a function of who you’re giving the models to. […] Information pollution doesn’t get enough visibility. It’s really a scary space. […] You have to think about whether you care about your model generating toxic information.” —  Dr. Roth, Professor of Computer and Information Science at the University of Pennsylvania.

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The Third Evolution of the Creator Economy: A Glimpse into AnyMind’s AnyTag

The creator economy is flourishing in an era of digital innovation and technological advancements. The Echelon X fireside chat titled ‘The Third Evolution of the Creator Economy: A Glimpse into AnyMind’s AnyTag’ provided a deep dive into how AnyMind Group, a key player in the creative industry, is revolutionising influencer marketing through its innovative AnyTag platform.

Moderated by Casey Lau, Head of Asia at RISE Web Summit, the fireside chat featured Otohiko Kozutsumi, Co-Founder of AnyMind Group.

Kozutsumi shared insights into how AnyTag is transforming the landscape of influencer marketing by streamlining processes and enhancing the impact of creator-driven campaigns.

His insights provided valuable perspectives on the evolving landscape and the innovative solutions that are driving the third evolution of the creator economy. By leveraging AnyTag, creators and brands can unlock new opportunities and achieve greater success in the digital age.

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Fundraising or preparing your startup for fundraising? Build your investor network, search from 400+ SEA investors on e27, and get connected or get insights regarding fundraising. Try e27 Pro for free today.

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The Asia Pacific region is at a pivotal economic point due to the tightened monetary policies in response to global inflation. By extension, tighter capital liquidity is impacting tech companies far and wide in the first major global recession since 2008.

But the good news is that challenges and opportunities are often two sides of the same coin. The Asia Pacific cloud computing market is steadily accelerating at a compound annual growth rate of 15.6 per cent, despite the economic decline that has hit several industries in the region.

Venture capitalists, in particular, are seeking stable opportunities to mark their bets in the long run. Among the host of digital-centric businesses that have growth potential, the US$480 billion cloud computing market is capturing strong interest.

Why Big Data and AI are driving cloud computing demand

For years, cloud computing has been a core innovation factor for digital transformation. Fast forward, the tech is converging deeper with big data and artificial intelligence (AI) to power a host of business functions.

Although AI is largely known as a stand-alone technology that facilitates in-depth analysis of consumer behavioural patterns, its relationship with cloud computing has gained VC attention. This convergence is instrumental in enhancing productivity, as well as efficiency. For instance, businesses can now deploy applications in the cloud linked to machine learning resources. Firms such as FPT software, Vietnam’s largest ICT company, are investing in deep learning R&D centres to create AI-based solutions that can shield businesses from unknown attacks, such as zero-day malware.

Also Read: How to migrate your small business to the cloud

With this approach, businesses can extend their capacity in terms of data insights, team integration, and agile development to explore further business opportunities. A study by PwC predicts that “AI could contribute up to US$15.7 trillion to the global economy in 2030,” a figure that is drawing in more capital funding.

“Unparalleled opportunity” in digital assets mining

Cloud computing isn’t limited to big data calculations. Another emerging use case for cloud centres is Proof of Work (PoW) mining, which draws similar properties to traditional cloud computing in terms of energy usage and operational management. However, PoW mining facilities benefit more from how physically close they are to the power source, rather than the end customer.

Blockchain networks secured by PoW mining such as Bitcoin require substantial energy and specialised hardware. Having its unique set of requirements, “digital assets mining provides an unparalleled opportunity to Asia-based investors in terms of diversification and upside beta exposure to the cryptocurrency space,” comments Lin Cheung, CEO of JKL Group.

Bitcoin, the longest-running public blockchain to date, has garnered strong institutional interest due to its attractive propositions.

“On one hand, Bitcoin mining delivers a stable future cash flow dictated by the algorithm of Bitcoin blockchain, which provides a solid baseline for valuation. On the other hand, the ROI of digital assets mining mostly depends on four variable factors: price of equipment, electricity rates, digital asset output, and price of the mined digital asset. While these factors can be volatile, it is also up to the investor to determine at what profitability levels to switch the miner on and off to secure the upside beta exposure,” says Cheung.

Also Read: Cloud communications firm Toku nets US$5M Series A+ for APAC expansion

The cloud mining segment is projected to account for the largest revenue share in the estimated US$17 billion global digital assets mining market. Global miners utilise online cloud mining services to optimise cost while securing the Bitcoin blockchain as network miners. This allows miners to easily switch between different cloud services as the profitability rate can fluctuate based on variable energy costs and macro factors.

Maximising energy efficiency in win-win scenarios

Regions with low energy costs have attracted Bitcoin mining operators across the globe. Texas, US, is a prime example. The Electric Reliability Council (ERCOT) regulating the Texas grid rewards energy credit to customers who vary their energy usage in real-time. “It is a win-win scenario since the energy grid and miners respectively benefit from optimised load balancing and cheaper prices,” says Cheung.

More than 53 highly profitable businesses including Tesla and Hewlett Packard Enterprise have moved their headquarters to Texas. Large-scale Bitcoin mining firms such as Marathon Digital and Riot Blockchain have established operations in the region, with more players such as JKL Group ramping up new Bitcoin mining centres.

At a time when every resource counts, the cloud computing sector is positioning itself as a go-to market for venture capitalists. To stay afloat during the economic downturn, business profitability, stability and upside potential are important factors to consider. As once stated by Britain’s former Prime Minister Winston Churchill, “the optimist sees the opportunity in every difficulty.”

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This content was first published by The Human & Machine.

Image Credit: The Human & Machine

This article was first published on November 28, 2022

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The Southeast Asia region has emerged as a hotspot for fintech innovation and growth, with its large population, rapidly expanding middle class, and increasing digital adoption. While the potential rewards are significant, entering the Southeast Asia market as a fintech company comes with a unique set of challenges and complexities.

This article delves into the difficulties fintech companies encounter when venturing into the Southeast Asian landscape.

Regulatory hurdles

Navigating the complex regulatory environment in Southeast Asia can be a formidable challenge for fintech companies. Each country within the region has its own set of financial regulations, licensing requirements, and compliance standards. Achieving and maintaining regulatory compliance can be a time-consuming and costly process.

Compliance variability

Even within a single country, regulatory requirements can vary significantly, posing a compliance challenge. Companies need to stay abreast of changes in regulations, which may be influenced by political, economic, or social factors.

Customer trust and data privacy

Building trust among Southeast Asian consumers is paramount for fintech success. Concerns about data privacy and cybersecurity have grown, making it essential for companies to demonstrate their commitment to protecting user data.

Consumer education

Many consumers in the region may not be familiar with fintech services, necessitating extensive education and awareness-building efforts. Clear communication and user-friendly interfaces are vital to overcoming this challenge.

Currency and exchange rate risk

Dealing with multiple currencies in the region presents currency risk. Fintech companies must devise strategies to manage exchange rate fluctuations and offer multi-currency services.

Competition from established players

Local and international banks and financial institutions often have a strong foothold in the Southeast Asian market. Competing with these established players can be challenging, requiring fintech companies to offer compelling value propositions.

Payment preference variability

Southeast Asia exhibits a diverse range of payment preferences, including digital wallets, bank transfers, cash payments, and mobile money. Adapting to these preferences and integrating with local payment providers is essential.

Infrastructure and connectivity

While urban areas in Southeast Asia are typically well-connected, rural regions may lack reliable internet access and financial infrastructure. This digital divide can hinder the reach of fintech services.

Also Read: Essential tips for scaling in Southeast Asia: 4 key insights to consider

Political and economic instability

Some countries in the region have a history of political and economic instability. Fintech companies need to carefully monitor these developments and assess risks to their operations.

Partnerships and local relationships

Collaborating with local banks or financial institutions may be necessary for certain fintech services. Building these partnerships and navigating local relationships can be complex.

Language and cultural barriers

Language diversity and cultural differences across the region can pose communication and marketing challenges. Tailoring content and services to local customs and preferences is essential.

Access to rural markets

Expanding into rural and remote markets can be logistically challenging. Fintech companies must develop strategies to overcome these geographical barriers and reach underserved populations.

Financial inclusion

Promoting financial inclusion is a significant goal in Southeast Asia. Fintech companies must develop services and strategies to reach unbanked or underbanked populations.

Currency regulations

Some countries may impose strict currency controls or limitations on fund transfers, affecting the operations of fintech companies.

Customer support and localisation

Providing customer support in multiple languages and adapting services to local customs and preferences can be resource-intensive but is essential for customer satisfaction.

Conclusion

While Southeast Asia presents immense opportunities for fintech companies, the journey is riddled with challenges that require careful planning, adaptation, and resilience. Successful market entry and growth in this diverse and dynamic region hinge on a combination of factors, including regulatory compliance, consumer trust, innovation, and effective localisation.

Fintech companies that navigate these complexities wisely can unlock the vast potential of the Southeast Asian market and contribute to financial inclusion and digital transformation in the region.

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Singapore-headquartered global early-stage VC firm Antler recently announced the final close of Antler SEA Fund II, worth US$72 million. Fund II targets investing US$27 million in 45 early-stage startups over the next six to nine months. The final close comes amidst the significant increase in early-stage investments worldwide.

On the sidelines of the fund’s final close, e27 spoke with Jussi Salovaara, co-founder and Managing Partner of Antler Asia. In this interview, he discusses the new fund, its goals, the regional startup ecosystem, and AI.

Excerpts:

With Antler SEA Fund II closing at US$72 million, what sectors or technologies excite you most about Southeast Asia?

Southeast Asia is incredibly diverse, with each country offering unique opportunities. By 2030, 60 per cent of the region’s population is expected to be classified as middle class, driving significant demand for consumer-focused technology products and a rapidly growing B2B sector.

Our investments are concentrated in Singapore, Indonesia, Vietnam, and Malaysia, where we see the most potential for growth and innovation. For instance, Indonesia’s large and young population creates a massive market for consumer tech. Vietnam is emerging as a hub for high-tech manufacturing and gaming, driven by its highly skilled and educated workforce.

While we are sector-agnostic, we see significant potential in fintech and healthtech across the region, as these sectors address critical needs in rapidly growing economies.

Also Read: Antler closes US$72M SEA Fund II, to invest US$27M in 45 startups in 6-9 months

We are particularly excited about investing in AI, specifically non-generic AI solutions that address real challenges in local markets. These technologies will be crucial in driving the next wave of innovation across Southeast Asia.

The fund plans to invest US$27 million in 45 startups over six to nine months. How do you identify and select startups for investment, particularly in such a fast-paced environment?

Our SEA Fund II is created to back the region’s most promising early-stage startups, particularly in the high-growth AI, fintech, and B2B SaaS sectors. With plans to invest US$27 million in 45 startups over the next six to nine months, we maintain a disciplined approach to identifying and selecting founders who not only possess deep local market knowledge but also a clear vision for scalable and innovative solutions.

To date, we’ve deployed across diverse sectors, from AI-driven solutions to fintech platforms that address hyperlocal needs with global scalability. In such a fast-paced environment, our focus remains on founders committed to long-term growth with solid business fundamentals and a clear path to profitability.

We emphasize building strong relationships with founders by working closely with them for ten weeks during the flagship Antler residency to help them go from 0 to 1 before setting them on a path to build billion-dollar startups. This ensures alignment on vision and strategy before committing to backing them with their first cheque and future rounds on a rolling basis.

In this climate, we prioritize companies with resilient business models, prudent cash management, and the potential for sustainable growth rather than those chasing quick exits. This approach aligns with our belief that downturns can be the best time to invest in ventures with the potential to become market leaders as the economic climate improves. By supporting businesses through longer growth cycles, we aim to foster the next generation of impactful startups in Southeast Asia.

Seed-stage funding dominated the overall funding space in SEA. How will this play out in the coming months? Do you expect this trend to continue in the coming months, if not years, as well?

Seed-stage funding has played a critical role in the overall funding landscape in Southeast Asia, and this trend is likely to continue in the coming months, if not years. The region is experiencing rapid digitalization and economic growth, creating a fertile environment for early-stage startups to emerge and scale.

Moreover, our innovative ARC (Agreement for Rolling Capital) initiative provides continuous funding to early-stage companies. ARC allows founders to secure up to US$600,000 in funding within the first six to nine months of their company’s lifecycle, including initial investment, pro-rata follow-on, and ARC funding.

This approach ensures that early-stage companies have the financial support they need to navigate the critical early stages of growth. Founders can focus more on building their business and less on the often time-consuming fundraising process.

Given the increasing investor appetite for early-stage investments, driven by the region’s strong economic prospects and the rising middle class, we expect seed-stage funding to remain a key focus area.

Antler’s residency programs in Singapore, Indonesia, Vietnam, and Malaysia have produced promising startups. What roles do these programs play in your investment strategy, and how do they contribute to the fund’s success?

These programs are pivotal to our investment strategy, serving as a critical pipeline for sourcing and nurturing high-potential founders and startups in Southeast Asia. These programs provide founders with the resources, mentorship, and networks they need to build and scale their ventures from day one.

Also Read: Antler invests in 19-year-old’s AI-powered research and writing platform Intellecs

By offering a structured environment that includes co-founder matching, business model validation, and initial customer acquisition, our residency programs lay a strong foundation for success. This approach not only ensures that the startups emerging from these programs are well-prepared to thrive.

Building on this foundation, our residency programs also serve as a unique vantage point from which to observe and understand emerging trends and opportunities across different markets in Southeast Asia. These insights allow Antler to make more informed investment decisions and provide tailored support to each of our portfolio companies.

Moreover, the success of these programs has helped establish Antler as a trusted partner in the region’s startup ecosystem, attracting co-investors like Peak XV, 500 Global, YC, East Ventures, and many more. This reputation enhances our deal flow and creates a virtuous cycle of attracting talent, capital, and opportunities, ultimately contributing to our fund’s overall success and performance.

Given Southeast Asia’s strong economic growth and digitalization, how do you see the startup ecosystem evolving over the next few years? What opportunities are most promising in this region?

The region’s startup ecosystem will grow significantly over the next few years. Its rapid economic expansion, fueled by a young and increasingly tech-savvy population and rising internet penetration, creates vast innovation opportunities across multiple sectors.

As technology evolves, we anticipate a second wave of AI startups in 2024, particularly verticalized AI. This will lead to a stronger focus on building durable businesses, especially in media, customer lifecycle management, and integrating large language models (LLMs).

Industry 4.0, initially driven by the manufacturing sector, is now poised to transform all industry verticals in Southeast Asia. Its core principles of interconnectedness, data-driven decision-making, and automation are increasingly being applied to traditionally non-digital sectors, including construction, transportation, and healthcare.

Additionally, a new wave of startups is emerging in Southeast Asia, focusing on hyperlocal solutions with the potential for global scalability. As the global digital economy is expected to reach US$17.5 trillion by 2025, we see significant opportunities in e-commerce, fintech, productivity, and travel.

These startups are capitalizing on the region’s diverse and rapidly growing market landscape by developing solutions that address specific local pain points while incorporating scalable technologies for a global audience.

How is Antler leveraging advancements in AI and other emerging technologies to identify and support the next wave of successful startups?

At Antler, we recognize the maturing AI landscape as a fertile ground for startups to build enduring businesses by customizing AI solutions for specific industries. This insight has been driving our focus on Verticalized AI investments.

Also Read: Malaysia’s pension fund KWAP invests in Antler, Lapasar, Vynn Capital, Bateriku

In a recent US$5.1 million pre-seed investment round in Southeast Asia, 34 per cent of our investments were in verticalized AI startups, targeting sectors such as media, customer lifecycle management, and LLM integration.

We’re also leveraging AI internally through our portfolio company Persona Studios. Its conversational AI platform has transformed the application screening process for our residency programs.

By deploying AI-powered Personas and generating comprehensive screening reports with sortable metrics on founder potential, we can efficiently engage with thousands of applicants. This innovation has dramatically reduced our team’s workload, saving hundreds of hours monthly while enabling us to have initial conversations with nearly every applicant.

While AI has significantly enhanced our data-centric approach and efficiency, it’s crucial to note that we maintain human oversight in decision-making processes. This balanced approach allows us to harness the power of AI while ensuring that critical investment decisions remain in the hands of our experienced Scouting and Investment teams.

What are the biggest challenges you foresee for VC firms in the current global economic climate, and how is Antler preparing to navigate these challenges?

In the current global economic climate, VC firms face significant challenges, including economic uncertainty, fluctuating market valuations, and increased competition for high-quality startups.

Antler is strategically prepared to navigate these challenges by focusing on long-term value creation rather than short-term gains. We are investing in resilient sectors such as AI, fintech, and Industry 4.0, which are expected to drive significant innovation and provide stability in uncertain times.

Additionally, Antler emphasizes strong business fundamentals, prioritizing startups with solid business models, clear paths to profitability, and prudent cash management to mitigate the risks associated with volatile market valuations. To stay competitive in an increasingly crowded investment landscape, Antler leverages its deep connections in local ecosystems through its residency programs across Southeast Asia, allowing us to identify and nurture promising startups early on.

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Image Credit: Antler.

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GAMEE, the mobile gaming platform behind the WatBird game and a subsidiary of Animoca Brands, has received an undisclosed investment from Pantera Capital (Pantera).

The company will use the funds to expand its presence on The Open Network (TON) via WatBird, which connects and onboards Telegram users to Web3 through fun, meme-inspired gameplay.

Also Read: Animoca Brands, Sky Mavis join Puffverse’s US$3M funding round

GAMEE was founded in 2015 and has been a subsidiary of Animoca Brands since 2020. It is a mobile gaming platform focused on onboarding a mass gaming audience to Web3.

It claims to have over 90 million registered users and has served over 10 billion gameplay sessions across multiple ecosystems.

GAMEE’s WatBird games and WatPoint mining have collectively onboarded 4 million user wallets into the TON ecosystem.

The company has partnered with over 40 major Web3 communities, including Mocaverse, TON, Notcoin, Decentraland, The Sandbox, and Cool Cats.

GAMEE recently raised funding from TON Ventures.

Also Read: Animoca Brands, Sky Mavis join Puffverse’s US$3M funding round

Pantera Capital is the first institutional investment firm focused exclusively on bitcoins, other digital currencies, and companies in the blockchain tech ecosystem. Pantera launched the first cryptocurrency fund in the US in 2013. The firm subsequently launched the first exclusively blockchain venture fund.

In 2017, Pantera was the first firm to offer an early-stage token fund. Pantera manages over US$5 billion.

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Image Credit: GAMEE.

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Singapore’s traditional businesses, deeply rooted in sectors like retail and manufacturing, are at a critical juncture. As the global economy shifts towards digitalisation, the need for transformation has never been more urgent.  

Despite the accelerated adoption of digital payments by businesses and consumers in recent years, a study reveals that nearly one in two businesses in Singapore express a strong need for more innovative fintech solutions to tackle their pressing business concerns. 

While payment infrastructure has improved dramatically with PayNow and SGQR widely adopted, there are still problems with reconciliation and integration with operational workflows. Many international businesses in Singapore continue to rely on expensive wire transfers and slow bank transfers for cross-border transactions, which significantly hinders their efficiency and competitiveness in the global market. 

Fintech is not merely about flashy apps or cutting-edge technology; it’s about leveraging these tools to solve real business challenges, enhance efficiency, and open new avenues for growth. For Singapore’s traditional businesses, adopting Fintech solutions could be the key to remaining competitive and relevant in a rapidly evolving market. 

The current state of traditional businesses in Singapore 

Traditional businesses in Singapore are at a crossroads. On one hand, they carry the weight of legacy systems and processes that have served them well for years. On the other hand, they face the challenges of a digital economy where speed, efficiency, and customer centricity are critical to success. Many of these businesses are finding it increasingly difficult to keep pace with the demands of modern consumers and the global market. 

According to a study, a significant portion of Singapore enterprises still lean on traditional wire and bank transfers for making and receiving payments. This reliance on long-standing banking practices is deeply rooted in established relationships with traditional financial institutions.

However, these outdated methods introduce delays that add complexities to business operations, impacting cash flow, supplier relationships, and overall business efficiency. The resulting inefficiencies underscore the critical need for more effective and reliable payment solutions to facilitate seamless cross-border transactions. 

Moreover, Singaporean businesses themselves are displaying a strong commitment to digitisation, particularly for expediting payment processes. Approximately 38 per cent of these businesses consider it a top priority, with an additional 29 per cent identifying it as one of their primary objectives. This approach aligns with local government initiatives, which have introduced numerous schemes to encourage businesses to digitise and integrate financial technology into their operations. 

Also Read: Antler’s Southeast Asia focus: Nurturing the next wave of AI, fintech startups

Resistance to change is often rooted in the comfort of familiarity, but the risks of falling behind are significant. Without adopting new technologies, traditional businesses risk losing their competitive edge, market share, and even their long-standing customer base. Yet, this challenge also presents a unique opportunity: the chance to embrace digital transformation and unlock new growth potential. 

Why fintech? 

Fintech, or financial technology, encompasses a wide range of digital solutions designed to improve and automate financial services. For traditional businesses, Fintech may sound scary and unapproachable, but today’s solutions can be easily implemented out of the box.  

Key fintech solutions for traditional businesses 

Customer payments 

One of the most critical areas where Fintech can make a significant impact is in customer payments. Traditional businesses often rely on outdated payment methods, which can be slow, cumbersome, and costly.

Fintech offers a range of solutions that can modernise the payment process and improve the overall customer experience:  

• Payment gateways: These digital platforms facilitate seamless online transactions, enabling businesses to accept payments from customers quickly and securely. By integrating a payment gateway, businesses can offer a wider range of payment options, including credit cards, digital wallets, and even cryptocurrencies, potentially payment methods favoured by younger and tech-savvy customers. This can be a potential new growth avenue for B2C merchants to adopt Buy-Now-Pay-Later solutions to improve sales. 
• International collection: For businesses that operate across borders, managing payments from international customers can be challenging. Fintech solutions simplify cross-border payments, making it easier to collect funds locally in several countries and reduce the costs associated with foreign exchange. 
• Subscription management: Many traditional businesses are exploring subscription-based models to generate recurring revenue. Subscription management tools automate billing, payment collection, and customer retention, allowing businesses to monitor and manage customer renewals to scale their subscription services efficiently. 

Spend management 

Managing business expenses, especially international operations spanning multiple entities, can be complex and time-consuming. Fintech solutions in spend management provide businesses with the tools they need to streamline and control their spending. 

• International remittance: Cross-border payments can be expensive and slow, but Fintech solutions offer faster, more cost-effective ways to transfer funds internationally. These platforms typically offer better exchange rates and lower fees than traditional banks, making them an attractive option for businesses with global operations. 
• Corporate cards: Fintech-powered corporate cards such as Grof allow businesses to manage and track employee expenses with ease. These cards often come with real-time tracking and budgeting limits providing greater control and visibility over business spending. By leveraging such tools, businesses can not only monitor and manage expenses more effectively but also reduce the risks of overspending and ensure expense claims are compliant with internal financial policies. 
• Procurement process: Workflows can be set up for screening and approving new vendors by appropriate stakeholders to ensure compliance with credit and financial policies. New procurement orders can also be routed for the necessary approvals before business expenses are incurred. Fintech tools allow these workflows to be automated and managed on the go with significantly lower administrative costs. 

Also Read: Overcoming fintech hurdles in Southeast Asia’s dynamic market

Treasury management 

Effective treasury management is important for businesses looking to optimise their financial resources. Fintech solutions offer innovative ways to manage foreign currency holdings and maximise the yield on idle cash. 

• Foreign currency holdings: For international businesses dealing with multiple currencies, foreign exchange fluctuations are a key concern. Fintech platforms provide tools to monitor and optimise foreign currency holdings, helping businesses to forecast their foreign exchange requirements and take advantage of favourable exchange rates. 
• Cash yield enhancement: Idle cash sitting in business accounts represents a missed opportunity. Fintech solutions enable businesses to maximise returns on their cash holdings by investing in low-risk, high-yield financial products. These platforms offer easy access to money market funds, fixed-term deposits, and other investment options, allowing businesses to put their idle cash to work. 

Benefits of implementing fintech improvements 

Adopting Fintech solutions offers a multitude of benefits for traditional businesses, beyond just modernising their operations. Here are some of the key advantages: 

Enhanced operational efficiency 

Fintech solutions automate routine tasks, reducing the need for manual intervention and minimising the risk of errors. This automation streamlines business processes, leading to faster turnaround times and freeing up resources for more strategic activities. 

Cost savings 

By reducing transaction costs, eliminating inefficiencies, and automating repetitive workflows, Fintech can lead to significant cost savings. Businesses can also reduce the expenses associated with compliance and regulatory reporting through automated record keeping. 

Improved customer experience 

Today’s consumers expect fast, convenient, and secure payment options. By offering a wider range of payment methods and improving the overall transaction process, businesses can enhance the customer experience, leading to higher satisfaction and loyalty. 

Better financial management 

Fintech provides businesses with real-time insights into their financial performance, enabling more informed decision-making. By optimising cash flow and improving the management of foreign currency and other financial assets, businesses can achieve greater financial stability and growth. 

Competitive advantage 

In an increasingly competitive market, adopting Fintech can give traditional businesses a crucial edge. By staying ahead of the curve and embracing innovation, businesses can differentiate themselves from competitors and expand their market reach through global payment capabilities. 

Conclusion 

Fintech offers traditional businesses in Singapore a powerful toolkit to modernise their operations, improve efficiency, and unlock new growth opportunities. By embracing these digital solutions, businesses can stay competitive in a rapidly changing market and continue to thrive in the years to come.

The journey to digital transformation may be challenging, but the rewards—enhanced operational efficiency, cost savings, improved customer experience, better financial management, and a competitive edge—are well worth the effort. 

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