As the CEO and founder of Tokenize Xchange, one of Southeast Asia’s largest cryptocurrency exchanges, I’ve seen firsthand the transformative potential of blockchain technology.

Our journey began with a vision: to make cryptocurrency accessible to everyone, foster innovation, and ensure the highest standards of security and trust.

Today, with nearly half a million users, teams in 4 countries, and our just completed US$23 million Series A, I can say with confidence that adhering to a regulatory framework has been crucial to our success.

The crypto market is a dynamic and often turbulent space. The recent debacle involving FTX is a stark reminder of the importance of proper checks and balances. While the decentralised nature of cryptocurrencies offers incredible opportunities, it also brings significant risks.

Without a robust regulatory framework, these risks can quickly become realities, leading to catastrophic consequences for both businesses and investors.

When we founded Tokenize, we made a conscious decision to prioritise regulatory compliance. This wasn’t always the easiest path.

Navigating the complex landscape of crypto regulations required significant resources and a deep commitment to transparency and integrity. However, I firmly believe that this approach has been fundamental to our longevity and growth. Today, we operate in Singapore under an exemption from the MAS, while in Malaysia, we operate with a full license from the Securities Commission Malaysia.

Building trust through transparency

One of the key lessons we’ve learned is that trust is the most valuable currency in the crypto world. In an industry where anonymity can sometimes lead to misuse, we have made it our mission to be as transparent as possible. Our relationship with Singapore’s Monetary Authority and Malaysia’s Securities Commission is a testament to our adherence to stringent regulatory standards. The exemption in Singapore and the license in Malaysia are not just badges of honour; they are symbols of our commitment to operating a secure and trustworthy platform.

Also Read: Lessons from a travel tech startup founder on navigating the pandemic-stricken business landscape

Transparency goes beyond regulatory compliance. It’s about being open with our users about how we operate, the security measures we have in place, and the steps we take to protect their investments. This openness builds confidence, attracts a broader user base, and fosters a loyal community.

Innovation within regulation

Some might argue that regulation stifles innovation. At Tokenize, we’ve found the opposite to be true. By working within a clear regulatory framework, we’ve been able to innovate with confidence. Our development of Titan Chain, a powerful new layer 1 blockchain, is a prime example.

Titan Chain offers enhanced security, scalability, and efficiency, addressing many of the issues that have plagued earlier blockchains. Knowing that we have a regulatory foundation to support our innovations has allowed us to push the boundaries of what’s possible in the crypto space.

Personal journey and lessons learned

My journey into the world of cryptocurrency began long before Tokenize was founded. I vividly remember the early days when blockchain technology was still a nascent concept, and the idea of a decentralised financial system was met with scepticism. It was a leap of faith, driven by a belief in the transformative power of this technology.

In the initial stages, there were countless sleepless nights, grappling with the complexities of developing a secure and user-friendly platform. The regulatory environment was still evolving, and we had to constantly adapt to new requirements.

There was a moment early on when we faced a significant regulatory hurdle in Singapore. It seemed like an insurmountable challenge at the time, but instead of seeing it as a roadblock, we viewed it as an opportunity to demonstrate our commitment to compliance and transparency.

Also Read: 3 things first-time founders should know about ESOP implementation

This experience reinforced the importance of resilience and adaptability in the face of adversity.

My rules to live by

For those looking to venture into the world of crypto or any other innovative field, here are a few lessons I’ve learned along the way:

• Embrace regulation, don’t fear it: Regulatory compliance may seem daunting, but it is essential for long-term success. Embrace it as a framework that ensures your business can grow sustainably and earn the trust of users and investors alike.
• Build on a foundation of trust: Trust is your most valuable asset. Be transparent in your operations and communicate openly with your users. This will foster loyalty and create a strong, supportive community around your business.
• Innovate responsibly: Innovation is at the heart of the crypto industry, but it must be pursued responsibly. Understand the risks and ensure that your innovations are secure and beneficial to your users.
• Stay resilient and adaptable: The path to success is rarely a straight line. Be prepared to face challenges and setbacks, and view them as opportunities to learn and grow. Resilience and adaptability are crucial traits for any entrepreneur.
• Engage with regulators proactively: Establish a positive relationship with regulatory bodies. Engage with them proactively, seek their guidance, and demonstrate your commitment to compliance. This will help you stay ahead of regulatory changes and build credibility in the industry.

Setting an example for the industry

Our commitment to regulatory compliance has not only benefited Tokenize but also serves as a model for the broader crypto industry. By demonstrating that it’s possible to innovate responsibly, we hope to inspire other crypto businesses to follow suit.

This is particularly important as the industry matures and gains greater mainstream acceptance. Investors, regulators, and users alike need to see that the crypto world can operate with integrity and transparency.

The path forward

As we look to the future, the importance of abiding by a regulatory framework will only grow. The crypto industry is still in its infancy, and the regulatory landscape is continually evolving. Staying ahead of these changes and proactively engaging with regulators will be crucial.

At Tokenize, we are committed to leading by example, showing that it is possible to thrive in this industry while adhering to the highest standards of compliance.

In conclusion, the journey of Tokenize has shown that proper checks and balances are not a hindrance but a foundation for sustainable growth. Our success in navigating the complex regulatory environment of Southeast Asia underscores the value of building a business on principles of trust, transparency, and innovation. By continuing to prioritise these values, we aim to not only sustain our growth but also contribute positively to the broader crypto ecosystem.

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Digital technologies are indispensable in the race to net zero, with projections from the World Economic Forum estimating that such technologies could reduce global emissions by up to 20 per cent by 2050. Everything from AI and advanced analytics, to smart grids and the Internet of Things (IoT) will be increasingly used as energy infrastructure seeks to improve efficiencies, circularity and reduce emissions.

In particular, the Asia Pacific region is expected to maintain a 50 per cent share of global primary energy demand until 2050, playing a pivotal role in the global energy future. The proliferation of interconnected devices and distributed energy resources, including energy storage systems and electric vehicles, are critical to the region’s energy transition but are also new points of vulnerability and risk, which history tells us bad actors will aim to exploit through cyberattack and disruption. Disruption will increase costs, reduce efficiency, consume energy, and delay net zero.

This means that building strong cyber defences and resilient digital energy infrastructure will be essential to protecting tomorrow’s energy infrastructure, helping to prevent attacks and, when there is an incident, ensuring we can recover quickly from it. We all have a role to play in protecting this new digital energy ecosystem, so cooperation should be a top priority.

This means governments, industry, and solution providers coming together to ensure critical national energy infrastructure, so vital to achieving net zero, will have the necessary resilience and protections built in.

Building resilience into our digitalised energy ecosystem

Energy infrastructure cyber disruptions will be a significant risk factor in the future, so we must be thinking about the solutions today. Energy infrastructure is the backbone of economies and societies, and regrettably, it is already the target of frequent cyberattacks.

Also Read: Demystify cybersecurity: EPP vs EDR vs MDR vs XDR

A research study by Rockwell Automation ‘Anatomy of 100+ Cybersecurity Incidents in Industrial Operations’ found that 39 per cent of critical infrastructure attacks are targeted at the energy sector, a rate that is three times higher than the next most frequently attacked verticals, critical manufacturing (11 per cent) and transportation (10 per cent).

This is why robust cybersecurity regulation and frameworks, continuous improvement to stay ahead of evolving risks, and adequate resource allocation towards cybersecurity infrastructure are all key steps to help safeguard the digital energy transition. As the digital energy transition accelerates, so will the risks, particularly in an increasingly distributed infrastructure and a more sophisticated threat landscape.

It is reassuring to see that countries across the Asia Pacific region are well aware of the cybersecurity risks facing critical energy infrastructure. Although the respective states have adopted different approaches to cybersecurity, there is a growing trend towards tackling the risks associated with mission-critical operational environments and systems.

In Singapore, for instance, the government recently passed a new law mandating owners of critical information infrastructure to report a wider range of incidents, including those occurring within their supply chain.

The development of international standards will be essential to navigating and protecting the decentralised and globally interconnected digital energy ecosystem of the future. In turn, industry must actively engage in bolstering cyber resilience by implementing robust cybersecurity defences ahead of evolving trends in the cyber threat landscape, and allocating adequate resources towards cybersecurity infrastructure.

A key line of defence against cyber threats lies within the digital solution’s built-in cybersecurity defences itself. This requires a multifaceted approach, encompassing both proactive and reactive measures. Central to this is the cybersecurity accreditations and certifications, which are key to ensuring that digital solutions are robust, resilient, and continuously updated to mitigate emerging threats and safeguard against potential cyberattacks.

Also Read: What if cybersecurity included everyone it protects?

For instance, the adoption of the Secure Lifecycle Development Process (SSDLC) for energy solutions means that product developers are able to ensure a high level of security and resilience throughout the entire product life cycle. The SOC 2 attestation, a valid third-party assessment of a company’s controls against the five Trust Service Criteria, as well as international cybersecurity standards such as ISO 27001 and IEC62443, are equally important to reinforce the integrity of digital solutions against cyber threats.

The path forward in the pursuit of a renewable energy future

In navigating the transition from traditional grids to digital ecosystems, cybersecurity has emerged as a critical cornerstone in ensuring the reliability, resilience, and sustainability of our energy infrastructure.
Achieving true cybersecurity resilience however will be contingent upon collaboration and cooperation.

With Asia Pacific poised to be a key player in the renewable energy transition, it is vital that all stakeholders in the ecosystem remains vigilant regarding cybersecurity threats and practices.

Government and industry must work hand in hand to ensure that we remain on course in our path towards a greener future by safeguarding critical energy infrastructure. Ultimately, good cyber security will deliver good progress on net zero.

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In the wake of the COVID-19 pandemic, many companies have remained in remote setups, operating under this assumption: Working from home enables employees to better manage work-life balance. Instead of having to separate work from life, they could integrate the two, so they could take care of children and other domestic matters in between meetings and deliverables. Employees would have better mental health — at least in theory.

That theory has long gone unquestioned until a recent Gallup survey put it to the test. Gallup found that employees who were engaged on-site became more stressed at home (29 per cent to 32 per cent), those who were not engaged also became more stressed (38 per cent to 46 per cent), and those who were actively disengaged experienced no change at all in their stress levels (remaining at 52 per cent in both conditions).

This survey undermines the assumption that work-from-home is universally better for our mental health. While most businesses would look at this data as a location issue and immediately set in motion a back-to-office change management plan, this view is misguided. This data does not reveal a geographical issue, but a cultural one. 

Companies must address the fundamental challenge that comes with each type of employee.

Empower your engaged employees

For purposes of organisation, the Gallup survey and other similar initiatives had to categorise employees into three distinct groups. This categorisation may promote the false idea that these groupings are fixed and that engaged employees will always be engaged.

Also Read: Examining remote work trends: What it takes for businesses to do this successfully

Such, of course, could not be further from the truth. While certain employees may be engaged now, they may slip toward not being engaged or even actively disengaged. Employees in these other categories may manifest as quiet quitters and other performance issues.

To continue engaging them, you must support their professional growth. Do so by keeping an open line of conversation about their experience. Ask them what they like most about your organisation, why they stay, and, just as importantly, how you can improve. You may even want to keep an open door policy or office hours for these types of conversations. These highly engaged employees are a gold mine: You will learn the most about your culture from them.

Part ways with actively disengaged employees

Keeping these employees is bad for both parties. Employees who are actively disengaged but remain with an organisation remain removed from finding a company that they are passionate about. 

On the employer side, actively disengaged employees waste resources. Many organisations tend to fall into a sunk cost fallacy with these employees: Since they already invested so much time in training, education, and other activities, it only makes sense to continue trying to engage them. This view is full of false hope: No amount of work will get them invested.

It is best to part ways with these employees as soon as possible. Although this choice may be difficult to do – and tempting to stall with a PIP and other procedures — swift action is empathetic: They will be one step closer to finding the role that is right for them.

Study your quiet quitters

You need to identify your quiet quitters – the people doing the bare minimum required of their job — and find out what makes them tick. In many cases, their lack of engagement is due to issues with recognition or competition: They feel there is a disconnect between how they perceive the company and how it rewards performance.

Also Read: Examining global hybrid and remote work trends beyond the West

Companies will have their own unique problems. The important part is that you surface these issues through dialogue with your quiet quitters. With enough engagement, some of these quiet quitters may trend in a positive direction and become engaged employees, rather than slide into active disengagement. 

If you give them a voice to speak up, quiet quitters will not sit on the sidelines. Every employee wants to be heard. 

First steps 

To address the challenges associated with each employee type, business leaders and entrepreneurs must reframe the overarching problem. They do not have a location problem on their hands — it’s not an issue so much of where to work, but how.

Business leaders must continue dialogue with engaged employees, study employees who are not engaged for areas of improvement, and part ways with the actively disengaged employees. You could view these actions as a sort of triage: You are focusing on what needs the most attention, so that your business can not only survive, but thrive.

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Startup Terrace Kaohsiung (STK), proudly supported by the Ministry of Economic Affairs and renowned as the premier international startup hub in southern Taiwan, is thrilled to unveil its 2024 Soft-Landing Program.

Building on their successful track record since 2021 where 137 startups have been nurtured and business and investor connections have been facilitated, STK has collaborated with over 10 global accelerators and over 50 business partners, including Google, AWS, and Microsoft to synergise innovation and entrepreneurship internationally.

These startups have benefited from extensive support, facilitating valuable business connections and attracting significant investor interest. This ongoing commitment to fostering innovation and growth has solidified its reputation as a key player in the startup ecosystem.

Explore the dynamic Southern Taiwan market

The 2024 Soft-Landing Program invites global startups to experience firsthand the dynamic Southern Taiwan market. Participants will immerse themselves in the vibrant Taiwan business environment, gain insights into the entrepreneurship ecosystem, explore potential sales opportunities, and engage in targeted matchmaking with Taiwanese companies and venture capitalists during the one-month visit. Accommodation subsidies, co-working space and facilities, business match-making and more perks will be provided in this complimentary program. 

Also read: SAFE STEPS: 8 disaster tech startups wow at Echelon X

Startup Terrace Kaohsiung is located at the largest 5G demonstration field in Taiwan, focusing on 5G and AIoT. STK’s 2024 Soft-landing Program aims to attract startups in these fields as well as smart manufacturing, smart harbour, and greentech development & transformation. The program offers a comprehensive training agenda designed to provide tailored support and opportunities for selected startups. 

Tailored support and opportunities for STK participants

Selected startups can expect the following experiences and benefits:

• Guidance to the Southern Taiwan market
• Real-site visits & business tours
• Targeted matchmaking, linking with VC, accelerators
• Participation in startup events

Additionally, participants will receive:

• Accommodation Subsidy (Kaohsiung only): USD50 per day (limit < 30 days)
• 1-month free use of co-working space and facilities
• Free participation in the Soft-Landing Program
• 1-on-1 business matchmaking service
• Participation in the 2024 Meet Greater South Expo and Pitch event
• Certificate upon completion of the Soft-Landing Program, becoming global startup ambassadors of Startup Terrace Kaohsiung

Also read: Check out these key highlights from Echelon X!

Application is open until June 28th.2024 

For more information, visit Startup Terrace Kaohsiung (yawan-startup.tw) or contact STK’s representative, Ms. Vanessa Lee, at: vanessalee@vnrc.tw

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This article was produced by ACE SG and published by e27.

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Last week, a diverse group of investment firms supported promising startups across Southeast Asia and India. From established giants like Temasek with billions under management to early-stage champions like 100Unicorns, these investors represent a range of focus areas, from fintech and healthcare to AI and sustainability.

Let’s delve into the investment landscape and discover the firms shaping the future of these dynamic regions.

B Capital Group

B Capital is a multi-stage global investment firm with US$6+ billion in assets under management across multiple funds. The VC firm focuses on seed to late-stage venture growth investments, primarily in the technology, healthcare and climate sectors.

Founded in 2015 by Facebook co-founder Eduardo Saverin, B Capital leverages an integrated team across nine locations in the US and Asia, as well as a strategic partnership with BCG, to provide the value-added support entrepreneurs need to scale fast and efficiently, expand into new markets and build exceptional companies.

British International Investment (BII)

Established in 1948, BII is the UK’s development finance institution and impact investor with a mission to help solve the biggest global development challenges by investing patient, flexible capital to support private sector growth and innovation.

It invests in creating more productive, sustainable and inclusive economies in Africa, Asia and the Caribbean, enabling people in those countries to build better lives for themselves and their communities. It invests every year in green infrastructure, technology and other sectors that need our capital the most.

BII currently partners with over 1,500 businesses in emerging economies and has a total assets of £8.1 billion.

Quona Capital

Quona Capital is a global venture firm focused on inclusive fintech. It invests in startups that expand consumers’ access to financial services and grow businesses in India, Southeast Asia, Latin America, Africa, and the Middle East.

It focuses on markets that are massively underserved by the legacy finance infrastructure, where it sees the biggest opportunity for transformation into more equitable financial systems.

Beyond pure-play fintech, Quona also invests in startups solving broader economic and social challenges, where embedded financial solutions can serve as a catalyst—from supply chain and agtech platforms to e-commerce, proptech and health.

Since 2015, it has invested in emerging markets while simultaneously measuring its impact on financial inclusion at the company and portfolio level.

Last week, B Capital, British International Investment, Quona Capital, and Stellaris Venture Partners invested in Turno, which offers financing solutions to SMEs, distributors, logistics firms, and e-commerce operators that plan to buy commercial three-wheeler electric vehicles.

Stellaris Venture Partners

Stellaris is an early-stage, technology-focused, sector-agnostic investment firm. It started its first fund in early 2017 and is currently investing from its second fund (US$225 million).

It prefers to partner at the ground floor level and is typically the first or the second institutional investor in companies that it partners with.

Stellaris has partnered with 30+ businesses across various sectors, including SaaS, financial services, B2B commerce, consumer brands, social commerce, education, electric vehicles, healthcare, and others.

9unicorns

9unicorns (now 100Unicorns) is an India-based accelerator VC. The fund operates uniquely as an accelerator and invests in very early-stage startups. It aims to disrupt idea-stage funding in India by backing founders with early access to capital with mentorship.

100Unicorns has funded 145 startups, including ShipRocket, VideoVerse, Zypp Electric, Renee Cosmetics, Assiduus, IGP – Join Ventures, Homeville, Alo Fruit, TruNativ, Rezolv.AI, OTO Capital, Klub, Wiom, BluSmart, DrinkPrime, LeverageEdu, Prescinto, and Rooter.

Indian Angel Network

Indian Angel Network is a leading network of angel investors keen to invest in early-stage businesses with the potential to create disproportionate value. The members of the network are leaders in the entrepreneurial ecosystem, having strong operational experience as CEOs or a background in creating new and successful ventures.

IAN is an angel investor network with over 500 investors across 10 countries. Over 80 per cent of its investors are actively investing, leading, etc.

IAN has invested in 200 companies spanning various sectors, including education, healthcare, QSR, e-commerce, gaming, semiconductors, robotics, and manufacturing.

Last week, 9unicorns, IAN, and Venture Catalysts invested in India-based Zypp Electric, which plans to expand into Southeast Asia.

Venture Catalysts

Established in 2016, Venture Catalysts++ is a multi-stage VC in India. It has a presence in 50+ cities in countries such as the UAE, the USA, the UK, Singapore, Luxembourg, Thailand, Canada, Eastern Africa, Zimbabwe, Hong Kong, and Southern Africa. It has US$700 million syndicated across 300+ portfolio startups. Besides making seed-stage and Series A investments for startups, Venture Catalysts is known for its startup-building capability, strategic guidance, generating business leads, leveraging its network across the globe through its partners and providing phenomenal returns to its investors.

Wavemaker Partners

Wavemaker Partners invests in a broad range of technology-driven companies in the US and Southeast Asia. The Singapore-based VC firm invests in angel, seed, pre-Series A, and Series A-stage startups across Hong Kong, Singapore, the Philippines, Thailand, the US, Indonesia, Vietnam, Malaysia, Brunei, Myanmar, Cambodia, and Laos. The average investment size is US$250,000 to US$5 million.

Last week, it invested in Beppo, which automates accounting and tax compliance for Filipino businesses and the self-employed.

Hitseries Capital

Hitseries Capital provides growth-as-a-service (GaaS) to its portfolio. The firm invests in artificial intelligence/machine learning, vertical SaaS applications, connected IoT, healthcare, mobility, fintech, and the marketplace across Asia Pacific.

Last week, the VC firm invested in WeSale, a proptech platform connecting partners, individuals and organisations to project owners and developers.

Temasek

Incorporated in 1974, Temasek is an investment company headquartered in Singapore. Supported by 13 offices internationally, Temasek had a net portfolio value of US$287 billion as of 31 March 2023. It aims to build a forward-looking and resilient portfolio that delivers sustainable returns over the long term.

Temasek deploys capital to catalyse solutions that can enable the transition to a low-carbon economy, tap into opportunities to build future growth sectors, and lead enterprises through our efforts in innovation.

Last week, Temasek invested in Marketnode, a digital market infrastructure operator aiming to develop a multi-asset ecosystem starting in Asia Pacific.

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Indonesia’s aquaculture company eFishery has received US$30 million in green and social loan from leading lender HSBC Indonesia.

The aquatech startup will use the money to accelerate the utilisation of its automatic feeding product for small-holder farmers, eFeeder, which speeds up the crop cycle by up to 74 days.

Also Read: eFishery banks US$200M, targets to engage 1M+ aquaculture ponds by 2025

According to founder and CEO Gibran Huzaifah, the eFeeder penetration will empower small-scale fish and shrimp farmers with the technology and resources needed to be more productive and sustainable.

As per the agreement, HSBC Indonesia will act as Sustainable Finance Coordinator for eFishery to support the implementation of ESG principles.

Founded in 2013, eFishery is one of Indonesia’s largest digital co-operatives for fish and shrimp farmers. It offers an integrated aquaculture ecosystem that provides access to technology, supporting over 70,000 fish and shrimp farmers in 280 cities across Indonesia.

Its solutions also include access to financial institutions worth more than US$40 million and a platform to sell fish and shrimp crops.

The company has three main objectives: to address food security through aquaculture, to overcome fundamental challenges in the aquaculture industry by providing affordable technology, and to reduce social and economic inequality through an inclusive digital economy.

The company looks to expand the eFishery farming community, targeting to engage over one million aquaculture ponds in Indonesia by 2025 and increasing the transactions of fish feed and fresh fish on the platform. The goal is to export fully traceable, chemical-free and antibiotic-free shrimp to international markets.

Also Read: eFishery will look to expand across Asia, Middle East: CEO Gibran Huzaifah

Three months ago, eFishery acquired AI-powered IoT startup DycodeX to its AI initiatives, including the launch of an upcoming brand, eFishery.ai.

Last July, the startup secured US$200 million in its Series D funding round led by Abu Dhabi-based global fund manager 42XFund. Malaysian public sector pension fund, Kumpulan Wang Persaraan (KWAP), Switzerland-based asset manager responsAbility, 500 Global, Northstar, Temasek, and SoftBank also co-invested.

According to a Tech In Asia report, eFishery secured a US$32 million loan from DBS Bank Indonesia in October 2022.

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There has been a significant slowdown in the early-stage funding ecosystem in Southeast Asia, with fewer startups getting funded and fewer funds being created. I’ve seen a few comments that have tried to explain why it is slowing down, so I thought that I’d add some colour to the discussion.

There’s no doubt that there’s been some frustration on the part of LPs with how slowly existing GPs have been returning capital from their funds. I would hazard a guess that this is because the TVPI (Total Value-to-Paid In capital) multiples aren’t what they are advertised to be and if they were realised, there would be a prodigious amount of shrinkage.

The funds don’t want this reality because to do so would likely expose the fact that their total returns are lower than the S&P500 with less liquidity, which would beg the question — why would anyone invest with them again?

TVPI reflects the current value of the portfolio as compared to the capital that has been given to it. As investments are realised, the Distributed-to-Paid in the capital will start to increase, and the Residual Value-to-Paid in the capital will decrease. Put another way TVPI = DPI + RVPI.

TVPI vs DPI

Currently, I would guess that there are a lot of funds that are holding their investments at an elevated valuation on their balance sheets. Let’s say that they are marking them at 5x TVPI. This would be great if they were able to realise their 5x TVPI and convert it into the DPI.

However, this valuation is based on the last round, which is problematic because venture rounds are typically priced according to the dilution that is appropriate for the level of funding as opposed to the financial value of the discounted cash flows.

Also Read: Funding frenzy in SEA: Fintech, proptech, EV startups secure millions

To realise the 5x TVPI, the fund manager would likely need to accept a discount unless they are able to achieve an IPO or some kind of exemplary trade sale — which are few and far between in Southeast Asia.

A worked example

What is more likely is that the 5x TVPI that they are carrying is sitting pretty far back in the cap stack, as liquidity preferences from later rounds have diluted the actual value. To give an example of this, if a company did a round of funding and raised US$1 million from Fund A at a US$10 million post-money valuation, the fund would own 10 per cent of the company. The company subsequently raised US$10 million at a US$50 million post-money valuation with preference shares that carried a 3x liquidity preference.

Arguably, Fund A would own eight per cent of the company (10 per cent less 20 per cent dilution, assuming the pro-rata wasn’t taken up). As mentioned above, the valuation that a private company can raise money at likely isn’t the same price that the same company would trade at in a secondary market.

Continuing from the above example, if the company was then sold for US$35 million a year later, what would Fund A’s position be worth? On their books, Fund A would have marked up their investment by 4-5x (50m/10m post-money valuations, the lower end taking into consideration dilution).

However, when they actually exit the business, the second funding round would first get paid their US$30 million (3x liquidity preference x $10m investment), leaving US$5 million for the remaining investors. Fund A’s 8 per cent position would now be worth US$400k (8 per cent of US$5 million), which is less than they had invested. It’s likely that they received preference shares, so they would get their investment back, but it’s still a far cry from the $5m that they said it was worth to their investors.

This is an extreme example but shows how there could be a significant difference between the TVPI and DPI when push comes to shove because of the positioning of the cap stacks. What looked like a 4-5x TVPI was something closer to a 1x DPI when realised (depending on whether it was a participating preferred).

The DPI dip

There are likely a lot of funds in this situation, where they might not have done the cap table calculations and instead relied on the movement of the share price to guide their internal valuations with no regard for their position in the preference stack.

Also Read: Southeast Asia startups secure funding for logistics, anime, sustainability and more!

When they look at exiting their positions, they realise that they need to win the lottery with an irrational buyer stepping in and paying above the odds for the business so they can realise the TVPI that they have been marketing. Faced with that conundrum, they would obviously prefer to let the investment ride in the hopes of some windfall in the future rather than accept the reality that their DPI will never get anywhere near their current TVPI.

Final thoughts

This results in funds holding onto positions longer and being unwilling to return capital to investors. If they were to return capital, their Internal Rates of Return (IRRs) would start to converge and potentially dip below those that an investor could have achieved by investing in the S&P500 but with a significant amount of additional liquidity.

Those investors are frustrated with the current situation, and they don’t have any capital to recycle back into new funds. This leaves us in the present predicament that we face with fewer investors deploying into funds, fewer funds being deployed, and fewer startups raising capital to grow and expand.

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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.

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Dear reader,

Elon Musk’s AI startup, xAI, has secured a monumental US$6 billion in Series B funding from Valor Equity Partners, Vy Capital, and Andreessen Horowitz, marking a significant milestone for the company founded in July 2023.

This capital infusion, following a report of a potential US$6.5 billion round, will enable xAI to advance its infrastructure and product lineup. xAI’s flagship product, Grok, a rival to ChatGPT, is now open-source, emphasising Musk’s commitment to “truth-seeking” AI technology.

This move sets xAI apart from competitors like Alphabet and Microsoft-backed OpenAI. Notably, Musk has also legally challenged OpenAI for straying from its original open-source mission.

The fresh funding position xAI among elite startups attracting substantial investment, mirroring recent significant raises like Alibaba’s US$1 billion investment in Moonshot AI and Alpha Intelligence Capital’s US$250 million fund.

xAI’s upcoming product announcements are highly anticipated, promising to further disrupt the AI landscape.

Sainul,
Editor.

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NEWS

Musk’s startup xAI nets US$6B to take on rivals like OpenAI
The investors include Valor Equity Partners, Vy Capital, and Andreessen Horowitz; xAI has developed Grok, a ChatGPT rival powered partly by data from X; The AI startup has now made the Grok-1 model open-source to spur further improvements.

aCommerce cut net loss by half, grew revenue 18% in 2023
The Thai e-commerce enabler posted a total revenue of US$200M for 2023; Meanwhile, its net loss narrowed by 54.9% to US$4.6M during the same period even though the company increased its total expenses by 14%.

Prominent ByteDance investor preps new US$300M AI-centered fund
Source Code Capital, founded by former Sequoia China investor Cao Yi, holds roughly US$5B across its yuan and dollar funds; Aside from ByteDance, it has also invested in the likes of food delivery platform Meituan and electric scooter manufacturer Niu.

Google to invest US$350M in India’s Flipkart, valuing co at US$37B
Flipkart has been a source of IPO speculation since Walmart took over the company, which competes with Amazon.com in India; Earlier this month, executives at Walmart said they are “looking and exploring” for the right time for Flipkart’s IPO.

AVPN, Google.org launch US$15M fund to equip workers in APAC with AI skills
The AI Opportunity Fund will identify and select non-profits and social enterprises that reach out to the workers impacted by the workforce transitions caused by AI.

India’s Zypp Electric nets US$15M to expand EV fleet
Japan’s Eneos led the Series C round; Zypp aims to make last-mile delivery sustainable and emission-free through its fleet of 21K electric scooters; The electric-vehicle-as-a-service provider aims to raise US$50M in total for the round.

Y Combinator’s Garry Tan supports some AI regulation but warns against AI monopolies
Tan said he was “overall supportive” of the National Institute of Standards and Technology (NIST) attempt to construct a GenAI risk mitigation framework.

Gate.io arm shelves HK crypto license application amid regulatory hurdles
It’s now the third firm tied to a global exchange to back out from the market’s rigorous regulations; Consequently, Gate.HK has paused new user registrations, deposits, and promotions in Hong Kong.

Vietnam’s proptech startup WeSale bags seed capital from Hitseries CapitalHitseries Capital
WeSale is proptech platform connecting partners, individuals and organisations to project owners and developers; The startup will use the money to develop and upgrade the platform, expand markets and develop new products and services.

FEATURES

Pixlr can transform classrooms into creative studios: CEO Warren Leow
The Pixlr platform’s suite of AI-driven tools allows creative exploration and experimentation, fostering an engaging learning environment.

Southeast Asia startups secure funding for logistics, anime, sustainability and more!
This funding spree highlights the diverse and promising startup ecosystem in Southeast Asia.

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Optimising collaboration with security: A guide to protecting your business data
Proactive measures can minimise cybersecurity risks, creating a safer environment for your team’s productivity and communication.

Asia’s role in climate change: Risks, rewards, and the road to net-zero
As a region that is rich in natural, human, and technological capital, Asia is well poised for a net-zero future.

Electrifying Southeast Asia: Unleashing the radical potential of electric vehicles
When investors express interest in the electric vehicle sector, it’s essential to understand precisely where they are directing their investments.

FROM THE ARCHIVES

These 7 tech titans are empowering your business with reliable cloud services
The popularity of cloud services stems from various factors, including cost-effectiveness, flexibility, and scalability.

The essentials of mapping a customer journey across digital assets
For a digital platform, optimising the customer journey is the key to extracting the maximum value out of them.

A paradigm shift on the Z axis: How Gen Z is shaping the new work culture
Gen Z, armed with digital prowess and a vision for a brighter future, is forging new paths by prioritising personal happiness over tradition.

Building trust through partnership: How collaboration enhances reputation
Building your client base directly is one of the primary ways in which a strategic collaboration may help your company expand.

If there is one thing investors are afraid of, it is lack of commitment from founders
Many startup founders treat their venture like an egg: if this one fails, they’ll go hatch another.

Women and AI: How startups can prevent gender bias and promote responsible use of the tech
Gender bias within AI is quite a complex topic in and of itself, but startups can play a more active role in preventing that.

Sustaining the work: How businesses can take a step forward in their move towards net zero
As tackling the impact of climate change becomes more urgent, the next critical decade must focus on pathways.

The post Ecosystem Roundup: Musk’s startup xAI raises US$6B | APAC gets new US$15M fund to equip workers with AI skills appeared first on e27.

Over the past three months, we’ve welcomed over 450,000 users from around the world. For many of you, the homepage is your first stop, and we want to make that first impression count. We’ve listened to your feedback and worked hard to enhance the platform.

Our goal is to provide a seamless and engaging experience, whether you’re diving into insightful articles, exploring innovative startups, connecting with potential investors, or browsing new job opportunities. We believe these updates will make your time on e27 even more enjoyable and productive.

As we continue to grow and support individual contributors, startups, investors, and other key players in the ecosystem, it’s essential to provide a platform that showcases their work effectively. With this latest update, we’ve focused on improving the visibility and accessibility of content, making it easier for our global audience to discover and engage with valuable information. From company profiles to job listings and events, we’ve streamlined the way you find what you’re looking for, ensuring you never miss out on important updates and opportunities.

Also Read: Introducing the new Contributor Dashboard: A streamlined approach to article management, monitoring, sharing, and writing

Let’s walk you through the new features and improvements:

Redesigned top contributor sidebar

Our contributors are essential to the e27 community, sharing their insights and expertise. To better showcase their work, we’ve revamped the top contributors sidebar. Now, you’ll see a clearer display of our most popular contributors and their latest articles.

Easy-to-read featured and latest posts

Finding great content is now simpler with our improved featured posts and the latest post sections. We’ve made headlines more readable with better fonts and provided concise, informative snippets so you can get a quick preview of each article.

Quick way to discover investors and startups

We’ve redesigned the investors and startups widgets to help you quickly find new and exciting profiles. With detailed information and quick filters, you can easily browse through investor and startup cards. Plus, you can connect directly from the cards themselves. For a deeper dive, our investor and startup databases are just a click away.

Convenient way to check the latest events and jobs

Our new jobs and events widgets make it easy to find what’s happening. We’ve added detailed info and quick filters to help you sort through the latest listings. You can register for events or apply for jobs directly from the cards. Companies can also easily add their own events and jobs through direct links.

New spotlight for e27 partner events and programs

To highlight our partner events and programs, we’ve created a new carousel widget. This easy-to-navigate feature lets you explore our latest partnerships and participate in exciting opportunities.

These updates are all about giving you a smoother, more intuitive user experience with a consistent and responsive design.

Check out our revamped homepage and see the improvements for yourself.

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Image credit: e27

The post Introducing e27’s revamped homepage: A fresh way to discover articles, startups, investors, jobs, and events appeared first on e27.

As the tech industry continues to expand, so does its environmental impact. From data centres consuming massive amounts of energy to the electronic waste generated by obsolete hardware, the carbon footprint of our digital lives is significant. However, the principles of DevSecOps — integrating security and operations into development processes — can be harnessed not just for efficiency and security but also for sustainability.

This article explores how DevSecOps can contribute to environmental sustainability, practical steps for implementing green practices in daily work, and case studies of companies that are leading the way in sustainable DevSecOps.

How DevSecOps can contribute to environmental sustainability

• Optimising resource usage
  • Infrastructure as Code (IaC): By using IaC, teams can automate the provisioning of resources, ensuring they only use what they need. This reduces the likelihood of over-provisioning, which often leads to unnecessary energy consumption.
  • Containerisation: Containers are more efficient than traditional virtual machines because they share the host system’s kernel. This means they require less overhead, leading to reduced energy usage.
• Efficient code practices
  • Code optimisation: Writing efficient code can reduce the processing power required to run applications. This not only speeds up performance but also decreases energy consumption.
  • Automated testing: Continuous Integration/Continuous Deployment (CI/CD) pipelines that include automated testing can ensure that only code meeting certain efficiency standards gets deployed, preventing resource wastage.
• Data management
  • Data minimisation: Reducing the amount of data stored and processed lowers the energy required for storage and computation. Implementing data lifecycle management helps in deleting unnecessary data.
  • Energy-efficient algorithms: Choosing algorithms that require less computational power can significantly cut down energy usage, especially in data-intensive applications.

Implementing green practices in your daily work

• Adopt cloud-native solutions
  • Serverless architectures: Use serverless computing to automatically scale resources based on demand. This ensures that you only use the resources needed at any given time.
  • Green cloud providers: Choose cloud providers that prioritise renewable energy sources and have strong sustainability commitments. Providers like Google Cloud and AWS have initiatives to reduce their carbon footprint.
• Optimise CI/CD pipelines
  • Pipeline efficiency: Streamline CI/CD pipelines to minimise the number of redundant processes and tests, reducing the overall computational load.
  • Scheduled builds: Instead of running builds continuously, schedule them during off-peak hours when energy consumption is lower or batch them to reduce frequency.

Also Read: ESG frameworks and standards: Cutting through the complexity for private markets

• Energy-efficient development environments
  • Virtualisation: Use lightweight virtual environments instead of resource-heavy local machines for development and testing.
  • Remote work policies: Encourage remote work to reduce commuting emissions and utilise energy-efficient home office setups.

Case studies of companies leading the way in sustainable DevSecOps

• Google Cloud
  • Carbon-neutral data centres: Google Cloud has achieved carbon neutrality and aims to run on 24/7 carbon-free energy by 2030. Their data centres use advanced cooling techniques and AI-driven optimisation to minimise energy use.
  • Sustainable software development: Google promotes practices such as optimising code for energy efficiency and reducing the computational cost of applications.
• Microsoft Azure
  • AI for Earth: Microsoft’s AI for Earth program supports projects that use AI to solve global environmental challenges. Azure also operates with a commitment to be carbon-negative by 2030.
  • Green software engineering: Microsoft encourages the use of principles from the Green Software Engineering community, which focuses on reducing carbon emissions through software design and deployment.
• Salesforce
  • Sustainable development goals: Salesforce has integrated sustainability into its core values, committing to net-zero emissions across its value chain and 100% renewable energy for its global operations.
  • Eco-friendly DevOps practices: They utilise efficient data centre operations, promote the use of energy-efficient coding practices, and engage in regular sustainability audits to ensure ongoing improvements.

Final thoughts

Incorporating sustainability into DevSecOps practices is not just beneficial for the environment but also for business efficiency and innovation. By optimising resource usage, adopting green development practices, and learning from companies that are leading in sustainability, DevSecOps teams can significantly reduce their digital footprint.

As we move towards a more eco-conscious future, the integration of sustainability into every aspect of technology, including DevSecOps, will be crucial in driving long-term environmental change.

By adopting these practices, not only do we contribute to a healthier planet, but we also pave the way for a more sustainable and efficient technological landscape.

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The post Sustainable practices in DevSecOps: Reducing your digital footprint appeared first on e27.