Circulate Capital, an environmental impact investor that aims to advance circular economy for plastics in high-growth markets, today announced the final close of its Circulate Capital Ocean Fund I-B (CCOF I-B), bringing the fund’s total AUM to US$73 million and the firm’s total AUM to US$255 million.

Circulate Capital also announced a US$7 million commitment from British International Investment (BII), the UK’s development finance institution (DFI) and impact investor.

According to a press statement, this marks the firm’s fourth investment from a DFI, including the International Finance Corporation (IFC), the European Investment Bank (EIB), and Proparco, a subsidiary of the French AFD Group, with total commitments from DFIs now reaching US$32 million. These commitments are expected to help catalyse institutional investment into enterprises that develop solutions to combat plastic waste in Asia.

CCOF I-B invests in two complementary strategies aimed at tackling the plastic pollution crisis and fighting climate change:

Circulate Capital Disrupt (CCD)
Described as climate-tech investments in breakthrough innovations that reduce the need for virgin plastics and limit greenhouse gas emissions across the sustainable fashion, biotech and AI, and smart materials sectors.

Circulate Capital Recycling Supply Chains
Described growth investments that transform recycling and waste management supply chains in South and Southeast Asia (SSEA), scaling the highest-potential solutions and replicating their success.

Also Read: Wavemaker Impact debut fund makes final close at US$60M

“We’re proud to welcome BII to our prestigious list of institutional investors so we can scale our investments more quickly to address the global plastic pollution crisis and advance the circular economy,” said Rob Kaplan, CEO and Founder of Circulate Capital.

“To close our climate tech fund with the support of prominent partners including global corporations, family offices, foundations, and now four of the biggest DFIs in the world signifies that the sector is ripe for the capital it needs to achieve circularity and mitigate the negative effects of climate change.”

Kaplan said, “Crossing the US$250 million AUM threshold is an exciting measure of our success, but even more a testament to the growing appetite amongst institutional and impact investors for investments in high growth companies that are delivering both deep impact and meaningful financial returns. Thus far, our climate tech strategy has invested in four impressive enterprises at the forefront of climate tech and circular innovation, and we will continue to identify and add innovators in this space to our portfolio as well as for our flagship strategy of investing in recycling infrastructure in the SSEA region.”

Circulate Capital additionally announced that CCOF I-B has qualified for the 2X Challenge, recognising its significant commitment to women’s economic empowerment. The Fund’s nomination was sponsored by BII.

With a presence in more than 10 countries, Circulate Capital partners with global brands and financial institutions to transform supply chains at scale by delivering economic, social, and environmental value.

Also Read: Qarbotech raises funding for its nanotech solution that boosts agri productivity

Launched in 2018 by supply chain experts and leading corporations including PepsiCo, Procter & Gamble, Dow, Danone, Chanel, Unilever, The Coca-Cola Company, Chevron Phillips Chemical Company LLC, and Mondelēz International, the firm is scaling solutions across the recycling and innovative materials value chains.

Circulate Capital was founded in and focused initially on South and Southeast Asia, but the firm today also targets “untapped opportunities in high-growth markets to spark further development in the emerging circular economy.”

—

Image Credit: RunwayML

The post Circulate Capital makes final close of US$73M fund to advance circular economy for plastics appeared first on e27.

Artificial Intelligence (AI) will have a way more critical impact on our future than blockchain, according to Dusan Stojanovic, Founder and Director at blockchain VC firm True Global Ventures. Therefore, regulating AI is more critical than regulating the blockchain industry.

“The success of ChatGPT and similar services has driven enormous user adoption,” he said in an interview with e27.

Also Read: True Global Ventures’s Web3-focused follow-on fund TGV4 Plus hits US$146M first close

ChatGPT now has 100 million weekly active users and nearly 1.5 billion monthly visitors. The US has the highest number (14.82 per cent) of ChatGPT users, followed by India (8.18 per cent). A quarter of companies, including SMEs, have saved roughly US$50,000 to US$70,000 using ChatGPT.

Right now, only a few players are developing and launching AI models for the masses — around 15 in the US, 11 in China, and 1-2 in other developed nations, limiting access to the mainstream.

“The AI industry needs to have a more open playfield. So, regulation is required as soon as possible, and it should be the top priority for any country, starting with the US, because AI will have a more critical impact on our future than blockchain,” he said.

In his opinion, the recent turmoil within Open AI (parent of ChatGPT), with Sam Altman being fired and reappointed, shows how difficult it is to marry research with product development. Altman’s firing/resignation looks like the strangest case since Steve Jobs was fired by the Apple board in 1985 after a power struggle with the board.

Also Read: Next blockchain unicorn will be from gaming: Dusan Stojanovic of True Global Ventures

According to True Global Ventures’s General Partner Beatrice Lion, the institutional consumer demand for exposure to Bitcoin is accelerating the need for regulation. Bitcoin will be one of the most robust use cases for blockchain technology since it is entirely decentralised, and there is nobody to make a legal claim against.

“We believe Bitcoin, the oldest use case of blockchain and decentralisation, will be among the biggest winners in 2023 and beyond. As the demand for Bitcoin increases with spot Bitcoin ETFs expected to be approved in early 2024 and the new supply of Bitcoin halves in April 2024 (Bitcoin halving occurs every four years and cuts the rate at which new Bitcoins are released in circulation by half), we are optimistic about Bitcoin price increases,” she said.

“In this respect, with all other legal battles between regulators and the industry, Bitcoin is and will be untouchable, so the limited downside risk is even more apparent now than it was at the beginning of the year. At the same time, traditional finance is taking over from pure players in terms of market share. The CME Group, which recently took the top spot on the list of the biggest bitcoin (BTC) futures exchanges of the world, replaced Binance for the first time in two years,” she elaborated.

Stojanovic believes that governments will play a crucial role in promoting investments in metaverse ecosystems to avoid being left behind. “One recent concrete example is in Saudi Arabia, where the Neom Investment Fund created a strategic partnership and signed a term sheet investing US$50 million in Animoca Brands, one of our portfolio companies. Neom will apply Metaverse and blockchain technologies to their vision of a US$500 billion mega smart city.”

Also Read: True Global Ventures injects US$10M into NFT metaverse game The Sandbox

Founded by an international group of angel investors, True Global Ventures is a distributed ledger technology (DLT) equity fund. It targets areas like legal AI, education AI, revenue AI, and code-related AI, where it sees that Generative AI has a material impact on productivity and new revenue streams. The fund covers 20 cities in North America, Europe and Asia.

True Global Ventures has invested in companies, including Animoca Brands, The Sandbox, Forge, Chromaway, Coinhouse, GCEX, Chronicled, and Dedoco.

—

The post AI will have more impact on our future than blockchain: Dusan Stojanovic appeared first on e27.

Southeast Asian startups raised US$226 million in investments across 26 rounds in November. The figure is about 69% less compared to October, a Tracxn report showed.

On a y-o-y basis, the drop is nearly 46%.

The investments comprise 17 seed-stage deals, eight early-stage deals, and one late-stage round.

See the infographic below for more details:

 

The post Startup investments in SEA see 69% monthly drop in November: Tracxn appeared first on e27.

I have been working for almost two decades and have been leading teams for a little over 10 years, but lately, I constantly find myself grappling with the repercussions of chronic unpunctuality from others. Tight deadlines loom ahead, and the collaborative efforts needed to propel our project forward are consistently hampered by late responses and missed deadlines.

At times, project management has somewhat become synonymous with a Hollywood blockbuster, complete with drama, missed cues, and unexpected plot twists. So, I decided to pause for a moment and share my thoughts on this ticking time bomb of unpunctuality.

The impact of punctuality on professionalism and personal integrity

In a world that thrives on efficiency and productivity, the importance of punctuality cannot be overstated. Whether it’s meeting project deadlines or attending appointments, being consistently late not only reflects poorly on an individual’s professionalism but also unveils deeper character flaws. To borrow a line by Gandalf the Grey, “All we have to decide is what to do with the time that is given to us.”

Punctuality is a tangible manifestation of respect, both for the time of others and for the commitments we make. When deadlines are treated with nonchalance, it sends a message that the person may not value the efforts and schedules of those involved. This lack of consideration can strain professional relationships and damage reputations, creating an atmosphere of frustration and mistrust.

It is even worse when the inability to meet deadlines or be punctual is hindered by empty promises that some might see as habitual lies. Just as habitual lies erode trust and credibility, consistently failing to commit to your promise punctually paints a picture of unreliability and disregard for commitments.

Also Read: The infinite game of leverage: A startup’s guide to time affluence and productivity

Furthermore, chronic tardiness reveals a significant flaw in time management skills. In a world where time is a finite and precious resource, individuals who habitually miss deadlines or appointments showcase an inability to prioritise and organise their responsibilities. This lack of organisational prowess not only jeopardises the success of projects but also suggests a potential for chaos in the workplace.

Beyond professional settings, habitual unpunctuality speaks volumes about an individual’s character. It suggests a disregard for commitments, a lack of discipline, and an overall indifference to the impact one’s actions may have on others.

The societal impact

Punctuality is a cornerstone of personal integrity, and consistently failing to meet deadlines or appointments erodes that foundation. To quote another cinematic gem, “Here’s looking at you, kid – consistently missing the mark can turn you into the antagonist of your own story.”

In a broader sense, society is built on the understanding that individuals will fulfil their promises and meet their obligations in a timely manner. When this expectation is consistently unmet, it erodes the very fabric of social interactions.

People who are habitually late may find themselves excluded from opportunities, both personally and professionally, as others may be hesitant to rely on someone who has proven to be unreliable.

The negative ramifications of habitual tardiness extend far beyond the inconvenience of a delayed meeting or missed deadline. Punctuality is a reflection of one’s respect for others, their commitment to professionalism, and their ability to manage time effectively.

Consistently failing to be punctual not only damages relationships but also exposes fundamental flaws in an individual’s character and organisational skills. It’s a small yet powerful aspect of life that speaks volumes about who we are and how we navigate the world around us.

—

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

Join our e27 Telegram group, FB community, or like the e27 Facebook page

Image credit: Canva

The post Tick-tock fallout: The punchline of poor punctuality and time management appeared first on e27.

Singapore-headquartered insurtech company Igloo has announced closing its US$36 million pre-Series C funding round led by global investment firm Eurazeo, with participation from Openspace Ventures and existing investor La Maison.

According to the company, the latest round was closed at a 50 per cent valuation increase from its Series B+ round in 2022, which was led by BlueOrchard-managed InsuResilience Investment Fund II.

Also Read: ‘Microinsurance will play a pivotal role in accelerating financial inclusion in SEA’: Raunak Mehta of Igloo

The insurtech company has raised US$100 million since its inception.

The new capital will be used for horizontal and vertical M&A opportunities. It will also increase its workforce by 20 per cent across engineering, commercial, strategy and insurance-focused verticals.

Additionally, Igloo looks to double down on motor, health, climate-related products, underwriting and claims digitisation and AI and blockchain technologies.

Incorporated in 2016 by Wei Zhu (ex-CTO of Grab), Igloo leverages big data, real-time risk assessment, and automated claims management to create B2B2C insurance solutions for platforms and insurance companies. It primarily targets the gig economy by providing “comprehensive and competitively-priced” insurance for delivery riders through its Foodpanda partnerships in Thailand, Singapore, and the Philippines, as well as Lozi and Ahamove in Vietnam.

Also Read: Igloo scores US$27M more to extend Series B financing round to US$46M

Igloo claims to have facilitated over 500 million policies and aims to double its Gross Written Premium (GWP). As of today, it has also established over 75 partnerships across six countries, expanding its product offerings to cover consumer finance, e-commerce, and logistics.

The firm is on track to double its 2022 GWP.

The company is set to be profitable in 2024, it said in a statement.

In 2022, it launched Ignite by Igloo, a digital platform that enhances the productivity of sales intermediaries in Vietnam and Indonesia. It works with 22,000 sales intermediaries and agent partners and aims to close 2023 with 50,000 agents as it expands into other markets.

The company has rolled out a blockchain-based parametric farmer insurance. The Weather Index Insurance has drawn interest from partners in Vietnam and across Southeast Asia. Thousands of farmers have adopted this product since its launch in November 2022. It covers 20,000 hectares of coffee and padi farms.

“The insurance market in Southeast Asia is still very underpenetrated, and we believe Igloo is in a strong position to help solve this by making insurance more easily accessible and understandable for consumers,” shared Albert Shyy, Managing Director, Eurazeo.

Eurazeo Managing Partner (Venture) Matthieu Baret said: “With our investments in China, Indonesia, India, and Singapore, we’re extending our footprint with the ambition to become a leading player in Asia.”

Also Read: Igloo closes US$19M Series B, promotes Raunak Mehta as Co-Founder and CEO

Asia’s insurance market is brimming with untapped potential, especially in emerging economies like Indonesia, Vietnam, and the Philippines.

—

The post Igloo nets US$36M in pre-Series C round, set to be profitable in 2024 appeared first on e27.

The Biodiversity Accelerator+, run by Singapore-based family office Silverstrand Capital, unveiled the five impact startups demonstrated in the Demo Day held at COP28 in Dubai on December 1.

The startups span various sectors, including commodity supply chains, infrastructure, the financial industry, and the carbon space.

The Demo Day marked the culmination of the five companies’ participation in a three-month capacity-building programme hosted by impact investor Silverstrand Capital.

Also Read: This family office has launched a startup accelerator with a mission to protect, restore biodiversity in SEA

The five startups are:

Bioverse: It uses technology to unlock the economic value of intact forests by generating forest inventories that locate non-timber forest products, predict their yields and deliver information that helps local communities coordinate with their supply chains.

Blue Sky Analytics: It provides extensive climate intelligence by refining and modelling satellite data and delivering real-time output to support a variety of use cases like risk assessment, MRV and carbon verification, amongst others.

Guardians of Earth: Harnessing the power of everyday citizens and consensus-based verification, the startup has built games-based systems to connect the public with nature while collecting asset-level biodiversity data.

Nika.eco: Its user-centric workspace utilizes AI and remote sensing to perform pre-feasibility studies for carbon financiers and project developers at a rate 4x faster than the industry average.

Xylo System: Its cloud-based data and AI platform provides simplified and actionable insights on nature gathered from an extensive network of verified data points for the property and energy sector.

At the end of the session, Silverstrand Capital announced US$250,000 investments each into Nika.eco and Xylo Systems.

Also Read: Meet the new Biodiversity Accelerator+ startups set to champion conservation and sustainability

The UBS Optimus Foundation will also award a cash prize to Biodiversity Accelerator+ cohort company EarthAcre for its innovative work, which focuses on measuring and monetizing biodiversity outcomes.

Silverstrand Capital is a Singapore-based investment firm with an impact investment mandate to catalyze biodiversity-positive impact. Its mission is to accelerate the widescale restoration and conservation of ecological health and biodiversity on land and sea. Its global portfolio of startups and funds spans various sectors, including regenerative agriculture, sustainable aquaculture, and nature-based solutions.

The Biodiversity Accelerator+ is a three-month hybrid programme designed to scale businesses, creating a biodiversity-positive impact. It is a philanthropic initiative of Silverstrand Capital.

—

The post Biodiversity Accelerator+ unveils 5 impact startups at COP28 in Dubai appeared first on e27.

Despite having been around for a while, the popularity of artificial intelligence (AI) took off significantly in 2023. We can even say that this is the year of the technology as tools such as ChatGPT becomes a big hit, allowing the general public to experiment with the technology and see it how can impact their life.

According to Bee Kheng Tay, President of Cisco ASEAN, this momentum will only continue to gather pace in the new year.

“Undoubtedly, advancements in AI have shaped 2023. The past decade saw the breadth of AI use cases growing by the day. They were real but largely unseen. However, the public availability of generative AI tools has brought greater attention to the new possibilities of AI, which will only continue to gather pace in the new year,” she writes in a commentary.

“In 2024, businesses in ASEAN will have to grapple with how they can weave AI into their organisations effectively, whilst taking advantage of other emerging trends impacting the business landscape.”

According to the preident, there are two points that stand out in 2024, starting with how AI will experience a shift from a “nice-to-have” to “must-have”. However, despite this urgency, there remains a “significant gap” across crucial business pillars from infrastructure to culture.

Also Read: How Transparently.AI uses Artificial Intelligence to detect accounting manipulation, fraud

“The AI industry is projected to grow exponentially, from US$95.06 billion to US$1.8 trillion by 2030, making it a cornerstone of the global economy in the coming decade. However, Cisco’s inaugural AI Readiness Index reveals a stark reality – only 18 per cent of organisations in ASEAN are fully prepared to deploy and leverage AI. Moreover, 68 per cent express severe concerns about the potential impact on their businesses if they fail to act within the next 12 months,” Tay says.

She further elaborates that while 97 per cent of organisations report having a robust AI strategy or are in the process of developing one, challenges remain in areas such as ensuring data is AI-ready and cultivating a talent pipeline equipped for the AI revolution.

“As the new year ushers in the next waves of AI, ASEAN companies must grapple with addressing AI comprehensively across their organisations, considering not only the technological aspects but also the human factor.”

On being responsible

To follow up on the idea that AI is becoming more integral part of business operations in SEA, Tay stresses that a movement towards responsible and ethical AI is gaining momentum.

“Governance, underpinned by trust and transparency, is at the forefront of this movement. While the transformative benefits of AI are evident, navigating its adoption comes with inherent risks. Organisations need a robust framework of policies and protocols to guide the ethical and responsible management of data and AI systems,” she says.

“In ASEAN, the need for enhanced AI governance is evident. Only 36 per cent of organisations claim to have highly comprehensive AI policies and protocols in place, and a concerning 21 per cent lack systematic mechanisms to detect data biases. Recognising the evolving regulatory landscape, companies must stay updated on local and international regulations. Implementing internal policies that address data privacy, security, and the ethical use of AI technology is imperative. This includes embedding security, privacy, and trust by design processes throughout the innovation lifecycle of AI applications.”

In conclusion, 2024 is poised to be a crucial year for SEA businesses as they navigate the evolving landscape of AI. The shift from AI being a “nice-to-have” to a “must-have” technology brings both challenges and opportunities. Organisations must bridge the gaps in their AI readiness and embrace responsible AI practices to thrive in the era of AI-driven innovation.

As the AI revolution continues, the synergy between technology and human readiness will be the key to unlocking the full potential of artificial intelligence in the ASEAN region.

—

Image Credit: RunwayML

The post Navigating the AI landscape in 2024: Why there is an urgency for enhanced governance appeared first on e27.

Malaysia-based sustainability and agritech startup Qarbotech has raised US$700,000 in seed funding and grants.

The round was led by 500 Global and includes innovation grants from the Temasek Foundation for winning the Climate Impact Innovations Challenge 2023 and Khazanah Nasional’s Dana Impak for winning the Khazanah Impact Innovation Challenge (KIIC) 2023.

Also Read: How Koina uplifts lives of Vietnamese farmers through its data-driven agritech platform

Qarbotech has developed QarboGrow, a photosynthesis enhancement technology. The patented nanotechnology is an on-plant or in-soil solution that boosts agricultural productivity, increasing crop yields by up to 60 per cent. Its unique formulation contains biocompatible organic compounds with properties similar to chlorophyll, thus expanding the photosynthesis rate of leafy plants.

Farmers and growers of all sizes can enhance crop yield by optimising photosynthetic efficiency and shortening growth cycles.

Headquartered in Kuala Lumpur, the firm serves customers in Malaysia, Indonesia, and other Southeast Asian countries.

Qarbotech will invest the capital in R&D and expand its manufacturing facility to produce up to 50x its current capacity to serve farmers and growers in new Southeast Asian markets.

“Agriculture is an industry that’s ripe for investments. When we have the privilege to meet a team that’s catalysing a step change for farmers, we back them. Qarbotech’s technology has exciting potential to solve the global food security challenge of the world’s growing population, of which about 30 per cent do not have food security. We believe that when Qarbotech wins, these 2.3 billion people win too,” shared Khailee Ng, Managing Partner, 500 Global.

Also Read: The opportunities and challenges Singapore’s agritech sector faces

The population in Southeast Asia is estimated to grow by 12 per cent, from 670 million in 2020 to 750 million by 2035. This population surge and climate volatility are expected to drive a 40 per cent increase in food demand by 2050.

Limited agricultural resources, widespread land degradation, and diminishing arable land caused by urbanisation and industrialisation in the region threaten food production. Qarbotech’s technology is essential for farmers to grow more with less arable land.

The post Qarbotech raises funding for its nanotech solution that boosts agri productivity appeared first on e27.

Remember the global Pokémon Go craze when smartphone users, young and old, wandered around catching Pokémon? That was one of the best examples of innovation driving companies to overcome challenges.

What made Pokémon Go a hit? Certainly, it was not just the popular manga or anime brand. The innovative use of technology spelt the big difference. The game took advantage of GPS, geospatial mapping, augmented reality, and multiple sensors to provide a new and unique experience for gamers.

Profitable innovation

Pokémon Go’s success was an excellent demonstration of how businesses can mindfully factor in market changes, new tech, and trends to come up with an innovative product. It taught business owners how powerful the combination of familiarity, interactivity, and an omnichannel strategy can be.

The team behind Pokémon Go saw the potential of going beyond the usual interaction with touchscreen displays. The game forced players to move around in real life instead of doing the usual sedentary gaming habits. It opened up opportunities to explore new places and meet people in real life.

As players enjoyed the considerably more engaging gaming experience, Pokémon Go presented different monetisation streams, including in-app purchases for Poke Balls and lure modules, sponsored locations and partnerships, and Pokémon Go events, among many others. With these, the game has become one of the world’s most profitable, earning US$5 billion over the course of five years.

Replicating Pokémon Go’s success

The technologies that made Pokémon Go wildly popular are no longer novel and innovative. For businesses to stand out and maximise viability now, there are new factors to work with, especially the advent of Web3.

Also Read: All hands on deck: How Iron Sail strengthens blockchain gaming ecosystem through collaboration

Web3 is the evolution of digital and internet technology characterised by the wider adoption of AI, blockchain, crypto, and decentralised systems. It also features better digital asset ownership and community-driven development. Businesses can harness the new technologies under Web3 to bolster success in the following ways.

Attracting more customers through better monetisation and digital asset ownership

Web3 gaming typically integrates digital assets and NFTs into gaming. They enable new ways for monetisation through NFT game item purchases. Reaching a peak market size of US$755 million in 2021, the play-to-earn industry demonstrated how game developers and players alike can monetise with digital assets.  

Digital assets, empowered by the unchangeable foundation of blockchain technology, grant gamers the autonomy to better manage their in-game possessions. These assets can be freely exchanged on NFT marketplaces, both within and beyond the game’s own environment. 

This marks a significant progression beyond the conventional game studio model, where game developers retain exclusive control over all digital in-game items. This can limit revenue streams that could otherwise be created by opening up the game’s monetisation channels to NFT marketplaces. With tokenisation, any game assets, characters and player achievements can be converted into digital assets. 

Citizen Conflict, a shooter game developed by QORPO Game Studio, is an example of how tokenisation enhances gaming. Its tokenised and distinctive approach to monetisation offers an alternative to conventional play-to-earn models. This tokenisation advantage comes on top of the game’s enticing gameplay, impressive graphics, and an overall intuitive gaming experience comparable to the quality of popular Web2 games such as Valorant, CS:GO, and Fortnite.

Reshaping game development with community governance

The democratisation movement has reached the gaming industry. Web3 empowers players to have a direct impact on game development by enabling them to vote on game development features, such as the addition of new maps or characters. It creates an inclusive environment for players and developers to collaboratively shape and align with gamer preferences.

Also Read: Indonesian gaming powerhouse Agate unveils strategy to conquer the global arena

In a significant departure from the conventional esports landscape, Citizen Conflict is introducing a novel approach to tournament organisation that puts the community in charge, minimising the role of intermediaries. This empowers players and fans alike to collaboratively design tournaments through participatory decision-making. By utilising a voting system, participants collectively influence aspects such as prize allocations, rule frameworks, and how rewards are distributed, fostering a heightened sense of involvement.

A pivotal factor underpinning this shift towards inclusivity is the integration of smart contracts. These automated protocols facilitate the equitable distribution of rewards among competing teams and passionate fans. This process ensures transparency and helps to eliminate the need for middlemen. Consequently, the esports realm becomes a realm of open interaction, erasing the lines between players and their audience.

Building forward-looking businesses with technology

At this point, the gaming industry is already getting saturated. The mobile gaming market is starting to reach saturation in the world’s biggest markets, namely the United States, China, Japan, and South Korea. For game developers and publishers to succeed, they need to find ways to stand out while making sure that they are profitable.

As such, businesses need to be more tech-savvy to connect to customers who are becoming increasingly reliant on more technologies. To this end, the gaming industry shows how the ingenious use of technology pays off.

—

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

Join our e27 Telegram group, FB community, or like the e27 Facebook page

Image credit: Canva

The post How gaming innovations in Web3 are rewriting entrepreneurial playbooks appeared first on e27.

Dear reader,

The exodus of American VC firms from China to Silicon Valley marks a significant shift in investment strategies as the once-lucrative Chinese tech market faces challenges. China’s stringent tech crackdown and escalating US-China tensions have left US funds grappling with uncertainties and dwindling opportunities, prompting a pivot to global markets. The year 2022 saw a drastic reduction in U.S. investment in Chinese companies, with only US$14.5 billion compared to US$45.4 billion the previous year.

The regulatory landscape and a slowing economy have forced American investors to reassess their engagement in China, fearing the fate of high-profile companies like Ant Group and Didi. The tightening grip on overseas IPOs and US restrictions on investments in critical sectors further add to the complexity. Even renowned investors like Sequoia Capital China face challenges, with its deal count dropping significantly.

Simultaneously, a new generation of Chinese-founded startups, dubbed “sea turtles,” is shifting focus from China to global markets. The challenges of navigating China’s regulatory hurdles lead entrepreneurs to establish dual-market strategies or, in some cases, leave China altogether.

This presents an opportunity for US fund managers to explore investments beyond China’s borders, particularly as VC activity in China is predicted to hit a nine-year low in 2023.

While the influx of Chinese VCs into Silicon Valley reflects a transient demand for international deals, the broader trend suggests re-evaluating the Chinese tech market’s viability. Whether US investors can find comparable growth and returns in alternative markets or if Chinese tech firms can adapt to the new regulatory landscape remains a looming question. The evolving dynamics signify a pivotal moment in the longstanding relationship between American venture capitalists and the Chinese tech ecosystem.

Sainul
Editor.

======

Fate of US venture capital in China teeters on uncertainty
Driven by a confluence of factors, from China’s crackdown on the tech industry to escalating US-China tensions, US VCs are now turning their gaze to opportunities abroad.

Indonesian agritech startup JALA closes US$13.1M Series A
The investors are Intudo Ventures, SMDV, and Mirova and Meloy Fund; JALA provides shrimp farmers with in-depth aquaculture analysis, farm assistance, financing, supplies and inputs and marketplace services.

Carro in talks to raise over US$100M in pre-IPO round
CFO Ernest Chew said the investors were global and regional bkue chips; The fundraising could value the automotive marketplace, which is a valuation of US$1B+, even higher; The proceeds will be used to support expansion.

Neuralink, Elon Musk’s brain implant startup, raises US$43M
32 investors participated; Peter Thiel’s Founders Fund is also an investor; Neuralink has devised a sewing machine-like device capable of implanting ultra-thin threads inside the brain.

Malaysia Debt Ventures (MDV) sees red due to ‘suspicious transactions’
The state-owned tech financier told the Malaysian Auditor-General last week that an unnamed portfolio company allegedly channelled the loan it received from MDV to another bank account instead of the project’s account per its contract.

Byju’s taps Jiny Thattil as CTO following departure of Anil Goel
The departure of Goel comes amid a broader restructuring at Byju’s as it looks to reach break-even next year; The startup has eliminated thousands of jobs in the recent quarters and clubbed some businesses together; Byju’s CFO also recently quit.

Startups should consider hiring fractional AI officers
Fractional leadership is a recent workforce trend: seasoned executives with subject matter expertise working across two or more clients simultaneously, lending their talents to rapidly growing companies that need their specific skill set but can’t afford it full-time.

Warren Buffett’s Berkshire Hathaway exits Paytm at a 40% loss
Berkshire Hathaway invested ~US$260M for a 3% stake in Paytm in 2018 at a valuation of about US$10B; The firm, which sold a stake worth US$36M in Paytm in 2021, at a profit, sold its remainder position on Friday for US$121.6M.

Ex-assistant refutes Jack Ma’s new venture will sell pre-packaged food
Ma’s Kitchen Food was incorporated last week in Hangzhou with an initial registered capital of US$1.4M; However, data shows the scope of the company’s business ranges from sales of pre-packaged food and import and export of goods to wholesale edible agricultural products.

ByteDance to exit gaming sector by closing down Nuverse
The company is expected to explore potential sales of existing gaming titles; This move signifies the end of ByteDance’s adventure into the gaming sector, with no plans to re-enter the global game market valued at US$185B.

Aethir takes on gaming and AI scalability challenges with its solutions
Aethir plans to launch its token in 2024, marking deeper integration into blockchain technology and solidifying the scalability of its infrastructure model.

Exploring the startup ecosystems of South Asia at SouthXChange
SouthXChange brought a diverse array of startups from Bangladesh, Pakistan, and Sri Lanka, showcasing the entrepreneurial landscape of South Asia.

Brinc: Accelerating startups, Web3 ventures, and inclusive mentorship
Brinc CEO Manav Gupta reveals plans to expand globally, launch Web3 accelerators, and support purpose-driven startups.

ClavystBio believes life science will be a key driver of Singapore’s economy
ClavystBio is set to invest in CoV Biotechnology, which is developing booster vaccines against variants of SARS-2 beta coronavirus.

What do you need to know about the eco-gender gap
The eco-gender gap is when solutions to tackle climate change seem to be geared only toward women. How should businesses deal with this?

Bridging Japan and SEA’s tech landscapes through the ME Innovation Fund
How transnational relationships between established enterprises from Japan and emerging startups from SEA foster innovation and growth.

Is the Southeast Asian market ripe for foreign startups?
The rise of startups will fuel the economy and create money-making opportunities for those with an entrepreneurial touch.

The business edge: Why prioritising employee cybersecurity is a smart investment
Prioritising employee cybersecurity is not just about securing digital assets; it’s a strategic move that makes financial sense.

How gaming innovations in Web3 are rewriting entrepreneurial playbooks
Web3 gaming seamlessly incorporates digital assets and NFTs, paving the way for innovative monetisation avenues.

Expanding the possibilities of metaverse with RAPUTA
How this leading metaverse platform provider is leading the charge for a high fidelity and decentralised metaverse experience.

The post Ecosystem Roundup: US VCs’ exodus from China; JALA completes US$13.1M funding round appeared first on e27.