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1337 Ventures, FWD Insurance partner to launch pre-accelerator programme for Malaysian fintech, insurtech startups

1337 Ventures Team

Malaysian early-stage VC firm 1337 Ventures and pan-Asian insurance firm FWD Insurance have joined hands to launch a bi-annual pre-accelerator programme.

Called Alpha Startups, the 4-week programme is specifically targeted at early-stage startups in the fintech and insurance industry based in Malaysia.

The programme will offer services such as entrepreneurship modules and access to mentors, tools and technology for founders to be able to bring their ideas to reality.

After the first round, the top 10 startups will undergo a further mentorship programme, where they will be able to further refine their business models in anticipation of the demo day.

During the demo day, the top two startups will receive an investment of US$36,443 from 1337 Ventures and FWD, in addition to US$29,513 worth of infrastructure credits for their cloud infrastructure, recruitment, marketing and payment gateway needs.

Investees also stand a chance to receive further funding for their seed to pre-series A round.

Also Read: 1337 Ventures partners with Malaysia’s central bank to launch fintech accelerator programme

Bikesh Lakhmichand, CEO of 1337 Ventures, said, “We always wanted to see the private sector step up and play a more long term role in building the fintech and insurtech scene in Malaysia compared to the touch-and-go approach we have seen other players take.”

“FWD Start-up Studio’s approach is a game-changer with not just its long-term commitment to early-stage funding across multiple intakes but also through Alpha Startup’s programmatic approach to provide start-ups with insights, paid POCs (proof of concept) and access to markets,” he added.

Applications for the programme are open and set to run until 25 startups are selected.

Founded in 2012, Kuala Lumpur-based 1337 Ventures also runs accelerator programmes for MNCs and GLCs, such as Bank Negara Malaysia, Khazanah Nasional, Telekom, Digi, MDEC, CIMB and Maybank, amongst others. Notable graduates include Funding Societies, Parkeasy, Senang and Coins.ph.

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STACS bags US$3.6M pre-Series A to expand its fintech blockchain platform

STACS

Ray Ferguson, Chairman of STACS

STACS, a Singapore-based fintech startup providing blockchain technologies for financial services, has raised US$3.6 million in pre-Series A funding.

This round brings its total funding raised to date to more than US$6 million.

Led by Wavemaker Partners, the latest funding is a ‘prelude’ to its Series A round, which STACS said will commence on a larger scale later this year.

Government-backed blockchain accelerator Tribe, besides Stellar Partners, also participated.

STACS was a graduate of Tribe’s third accelerator batch last year.

As per a press release, STACS will use the fresh fund to ‘expand its ecosystem of global financial institutions on its Environmental, Social and Governance (ESG)-enabling technology infrastructure.’

Founded in 2019, STAC’s Distributed Ledger Technology (DLT) platforms support the effective lifecycle management of securities and ESG financing dimensions, encompassing green and sustainability-linked bonds and loans.

STACS aims to digitalise assets, processes and documents using its patent-pending STACS Blockchain technology.

Its clients and partners include global banks, national stock exchanges,and asset managers.

Having implemented its real-time trade processing platform live with Eastspring Investments and BNP Paribas Securities Services in 2020, STACS claims it successfully reduced trade breaks for both institutions by more than 90 per cent.

The company has since leveraged its same core patent-pending blockchain technology to launch GreenSTACS, an industry-wide ESG financing technology infrastructure that supports effective green and sustainability-linked loans and bonds.

Also Read: How blockchain-powered fintech services can improve financial inclusion

“Since the 1970s, the capital markets have been fragmented, with institutions operating on different systems and ledgers, and going through a linearly-dependent process which has led to a situation whereby US$800 billion of capital is being locked up every single day in the international clearing system,” shared Ray Ferguson, Chairman at STACS, said:

“Due to multiple layers of processing, nearly US$300 billion is being spent on transaction costs in a model that one would be hard-pressed to argue is efficient. This is all wastage — wasted time, wasted money, wasted carbon footprints — that we at STACS are committed to addressing through our distributed ledger technology. Innovating our way out of these problems is vital if we are to deliver a green and sustainable future for financial services,” Ferguson added.

“There is an immense opportunity to help financial institutions process large volumes of trades more quickly, securely and accurately while reducing costs and illiquid capital. As an enterprise distributed ledger technology provider, STACS has productized a secure layer that can be deployed instantly above existing infrastructure,” said Gavin Lee, General Partner at Wavemaker Partners.

“Enterprise sales is never easy for young companies, but Benjamin (co-founder and Managing Director of STACS) is a convincing and seasoned serial entrepreneur who has secured numerous leading financial institutions as key clients. We are excited to be part of the future digitalization of capital markets,” Lee added.

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A sneak peek into 8 Singapore startups joining Big Idea Ventures’s New Protein programme

Global VC firm Big Idea Ventures (BIV) has unveiled the eight Singaporean startups selected for its New Protein accelerator programme.

This cohort comprises 15 early-stage ventures, of which seven are from New York.

The programme runs for five months and invests up to US$200,000 each in startups.

As per its website, a follow-on investment of US$3.5 million will also be made in the top 20 per cent companies that successfully complete the programme.

Non-financial support includes mentorship and connections with industry experts that can help scale the startup’s products.

“This group of startups has been incredible to work with in the New Protein Fund,” said Andrew D. Ive, founder of Big Idea Ventures. “All of these companies are addressing real-world challenges and represent some of the most promising innovations in the food and agriculture sectors.”

BIV’s New Protein Fund, a US$50-million fund, is dedicated to seed and early-stage investments in plant-based and cell-based food, ingredient and technology companies.

Also Read: Bühler invests in Big Idea Ventures’s New Protein Fund; to invest in up to 100 plant- and cell-based firms

Here is snapshot of the eight Singaporean startups:

Angie’s Tempeh: Tempeh fermentation technology to create protein-rich foods.

Animal Alternative Technologies: Cell-based meat services including bioreactors and software.

[Stealth Mode]: B2B ingredients company developing sustainable alternatives to tropical oils and animal fats.

GreenGourmet Foods: Plant-based dairy.

Haofood: Alternative chicken protein from peanut focused on the Asian market.

MAD Foods: Plant-based beverage.

Hybrid Accelerator (participants in both Singapore and New York)

Wellme: Plant-based yogurt.

Meat. The End: Production technique to replicate meat-like mouthfeel and taste.

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Image Credit: Big Idea Ventures

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AI-powered decision-making for the banks of the future

AI in banking McKinsey

The ongoing transition to digital channels creates an opportunity for banks to serve more customers, expand market share, and increase revenue at lower cost.

Crucially, banks that pursue this opportunity also can access the bigger, richer data sets required to fuel advanced-analytics (AA) and ML decision engines.

Deployed at scale, these decision-making capabilities powered by AI can give the bank a decisive competitive edge by generating significant incremental value for customers, partners, and the bank.

Banks that aim to compete in global and regional markets increasingly influenced by digital ecosystems will need a well-rounded AI-and-analytics capability stack comprising four main layers: reimagined engagement, AI-powered decision making, core technology and data infrastructure, and a leading-edge operating model.

The layers of the AI-bank capability stack are interdependent and must work in unison to deliver value, as discussed in the first article in our series on the AI bank of the future. In our second article, we examined how AI-first banks are reimagining customer engagement to provide superior experiences across diverse bank platforms and partner ecosystems.

Also Read: gojek’s Bank Jago unveils financial services app that centres around users’ daily life

In the current article, we focus on the primary AA/ML decision-making capabilities required to understand and respond to customers’ fast-evolving needs with precision, speed, and efficiency.

Banks that leverage machine-learning models to determine in (near) real-time the best way to engage with each customer have the potential to increase value in four ways:

  • Stronger customer acquisition. Banks gain an edge by creating superior customer experiences with end-to-end automation and using advanced analytics to craft highly personalised messages at each step of the customer acquisition journey.
  • Higher customer lifetime value. Banks can increase the lifetime value of customers by engaging with them continuously and intelligently to strengthen each relationship across diverse products and services.
  • Lower operating costs. Banks can lower costs by automating as fully as possible document processing, review, and decision making, particularly in acquisition and servicing.
  • Lower credit risk. To lower credit risks, banks can adopt a more sophisticated screening of prospective customers and early detection of behaviours that signal a higher risk of default and fraud.

As banks think about how to design and build a highly flexible and fully automated decision-making layer of the AI-bank capability stack, they can benefit from organising their efforts around four interdependent elements:

  • Leveraging AA/ML models for automated, personalised decisions across the customer life cycle
  • Building and deploying AA/ML models at scale
  • Augmenting AA/ML models with what we call “edge” capabilities to reduce costs, streamline customer journeys, and enhance the overall experience
  • Building an enterprise-wide digital-marketing engine to translate insights generated in the decision-making layer into a set of coordinated messages delivered through the bank’s engagement layer

In the full report, AI powered decision making for the bank of the future, we examine each of these interdependent elements and their applications in detail.

The rapid improvement of AI-powered technologies spurs competition on speed, cost, experience, and intelligent propositions. To remain competitive, banks must engage customers with highly personalised and timely content to build loyalty.

Also Read: How startups can aid Southeast Asia’s Open Banking landscape

Personalised offers with tailored communication delivered at the right time through the customer’s preferred channel can help banks maximise the lifetime value of each customer relationship and reinforce the organisation’s market leadership.

To achieve these benefits, banks must build AI-powered decision-making capabilities fuelled by a rich mixture of internal and external data and augmented by edge technologies.

The core technology and data infrastructure required to collect and curate increasingly diverse and voluminous data sets is the topic of the next article in our series on the AI-bank capability stack.

Special thanks to Akshat Agarwal, Bangalore-based McKinsey associate partner, and Charu Singhal Mumbai-based McKinsey consultant, for co-authoring this report, as well as Milan Mitra and Yihong Wu for their contributions to this article.

Editor’s note: e27 aims to foster thought leadership by publishing contributions from the community. This season we are seeking op-eds, analysis and articles on food tech and sustainability. Share your opinion and earn a byline by submitting a post.

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What I learned about entrepreneurship through my journey as Coinhako co-founder

crypto startup founder

The truth is I never planned on starting a crypto trading platform. I became inspired to do so about seven years ago after recognising that there was a gap —and significant opportunity— in Singapore’s financial services space.

At that time Gerry Eng, Coinhako’s co-founder and current CTO, and I wanted to buy and trade bitcoin but found no platforms in Singapore that were simple enough for non-technical users. And so we launched our brainchild, Coinhako, in 2014, with the aim of being the simplest way to purchase bitcoin in Asia.

Our early years and big break

When Coinhako was launched, cryptocurrencies were still largely an unfamiliar piece of technology in Asia. Surrounded by novelty and unfamiliarity, securing interest from investors in Singapore and Asia proved to be a really tough challenge. Eng and I realised that we had to look outside of Asia to build the momentum we needed to catapult our startup.

We made a bold move and headed to the Silicon Valley and became the first Asian Bitcoin startup to get accepted into Boost VC’s accelerator programme – a three-month programme helping early-stage startups with networking, mentorship and growth opportunities.

This was a massive opportunity for Coinhako as Boost VC’s programme was the only Bitcoin-focused accelerator back in the day, and indeed, it really paid off as we earned personal investments from venture capitalists Tim Draper and Josh Jones.

With that experience and financing, we returned to Singapore full of confidence and ready to work on our long-term vision of building Coinhako into the go-to platform for the masses in Asia to access cryptocurrencies.

Myself, Tim Draper and Gerry Eng (Cofounder & CTO)

The first few years were challenging as the crypto market faced very low interest from the general public. We had to rely on tight financing and management of resources to tide us through. The 2017 bull run, on the other hand, ushered in huge changes in crypto trading and proved to be a big break for us.

Also Read: Today’s top tech news, January 9: Coinhako to offer 100 fiat-crypto pairings, SoftBank will no longer take controlling stake in WeWork

As Bitcoin touched US$20,000 in 2017, Coinhako’s trading volume increased year-over-year (YOY) by 1,000 per cent. The boom was on!

Growing from strength to strength

We have come a long way from a team of just two in 2014.

Today, Coinhako employs over 70 people across the region, with plans to double our headcount in 2021. In addition to our headquarters in Singapore, we are also present in Vietnam which acts as our technological hub and employs some 40 members of our team.

Today, we have over 200,000 users trading crypto with us, just in Singapore, and thousands more in Vietnam, a strong affirmation that our infrastructure and technology enable them to access crypto easily.

We firmly believe that we can make greater leaps in 2021 as it is shaping up to be an exciting year for us. With the boom in the crypto market, we are seeing record high monthly account opening numbers and trading volumes on our platform.

Most notable about 2021’s bull run is the increased interest from institutional investors and also the presence of a live licensing framework for crypto businesses in Singapore.

I believe that these factors will continue to grow public confidence in blockchain technologies and this will help to further increase interest and demand for cryptocurrencies throughout the year.

What I’ve learned as a CEO of a crypto startup

I have closely observed the crypto space over the years, experiencing its ups and downs, particularly in Asia. I have seen crypto trading evolve from an unfamiliar and niche financial service to a legitimate disruptor in the financial industry disruptor. Today cryptocurrencies, especially bitcoin, are as solid as any other mainstream high-risk, high-value asset.

Also read: Ethereum Co-founder Joseph Lubin on why the crypto platform is headed for a grand future

While I have watched companies come out stronger from 2017’s crypto bull run, I have also witnessed businesses fold during the 2018 crypto winter. This taught me that any business in this space needs to achieve a good balance of conviction, perseverance, and agility to survive and thrive.

There are a few things I have also learnt from my entrepreneurial journey over the past seven years that budding entrepreneurs should keep in mind. I have condensed them into three main takeaways:

First, don’t be distracted by shiny objects —new, trendy ideas are easy distractions; remember to stay focused on your goals. Second, take risks and don’t be afraid of failure; but avoid making the same mistake twice. And third, hire people who are smarter than you. Let them handle tasks you aren’t an expert at, then focus on your strengths.

We prepare for and face adversity every day at startups. It is commonplace for any business to face disruptions and situations that do not go according to plan.

At Coinhako, we push hard as a team to overcome the challenges that come our way, and we also grow as a team. This is the fundamental formula for the success of Coinhako today.

With a strong team behind Eng and me, we are excited to scale the next new heights and spearhead growth in the regional crypto scene.

Editor’s note: e27 aims to foster thought leadership by publishing contributions from the community. This season we are seeking op-eds, analysis and articles on food tech and sustainability. Share your opinion and earn a byline by submitting a post.

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Vietnam’s mobile gaming company Funtap invests in 9PAY

Funtap

Funtap, a Vietnamese mobile gaming company, has invested in local digital payments platform 9PAY, DealStreetAsia has reported.

The seven-digital US-dollar investment is part of Funtap’s plan to expand its technology offerings, the report said quoting CEO Minh Bui.

We have reached out to 9Pay for more details on the deal. We will update this article as and when hear from them.

Founded in 2015, Funtap provides mobile game publishing and development. Its games are also available in Thailand, Malaysia, and Singapore. Last year, the company secured a seven-digit investment in a Series A round of financing, led by Makers Fund.

Meanwhile, 9PAY was established in 2018. Licensed by the State Bank of Vietnam, the fintech platform offers a suite of services including a payment gateway, a digital wallet, and cash services for individual and corporates.

Also Read: 2021: Predicting another bumper (un)predictable year for payments

According to Bain, digital payments in Southeast Asia is forecast to hit US$1 trillion in gross transaction value (GTV) by 2025. Riding on the positive outlook on the payments sector, Funtap’s foray into it follows the playbook of other gaming companies.

Local internet unicorn VNG Corporation and Garena, the gaming unit of US-listed Sea Group both have embedded digital payments services onto their platforms.

VNG owns local e-wallet provider ZaloPay, while Sea’s digital payments arm SeaMoney operates AirPay in Vietnam.

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Grosvenor invests into Taronga Ventures’s RealTech Fund supporting proptech startups

Grosvenor

Grosvenor Asia Pacific, the Asian arm of London-based international property company Grosvenor Group, has invested in Taronga Ventures’s RealTech Fund.

US-based PGIM Real Estate, CBRE, and others also joined the round.

“There is no doubt that our industry is being significantly impacted by technology. Partnering with Taronga, which has established itself as leaders in the space, gives us the opportunity to stay at the cusp of innovation and gain investment exposure to dynamic and growing companies carefully selected and supported by the Taronga team,” said Benjamin Cha, CEO of Grosvenor Asia Pacific.

Grosvenor Asia Pacific was launched in 1994 and is focused on both investment and development in residential, office and retail sectors in Hong Kong, Tokyo and Shanghai.

Taronga Ventures is a technology and innovation investor focused on the real estate sector and the wider built environment. The group consists of the RealTech Ventures Fund, the RealTechX Growth Program and Taronga Advisory and has offices in Singapore and Australia.

Also Read: Taronga Ventures expands its RealTechX programme to support Singapore’s proptech startups

The Fund invests in scalable technology and innovation that enhances or challenges the traditional real estate and infrastructure sectors. It is also focused on investing in strategic opportunities and providing its institutional partners with a first-mover advantage, whilst maintaining a focus on creating a better built environment, through sustainable and responsible investment practices.

“We have been working with Grosvenor Asia Pacific and their colleagues in the wider Grosvenor Group for many years and see a tremendous opportunity for emerging technology companies to scale within the Grosvenor portfolio globally,” opined Jonathan Hannam, Managing Partner of Taronga Ventures.

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Ruangguru raises US$55M to grow its learning management system in Indonesia, Vietnam, Thailand

ruangguru_grant_news-2

Ruangguru co-founder Iman Usman at an MIT SOLVE session

Indonesia-based edutech startup Ruangguru has received US$55 million in a funding round led by Tiger Global Management, with participation from GGV Capital.

With the new financing, Ruangguru plans to further accelerate its business expansion across Indonesia, Vietnam and Thailand.

The latest round comes just a year after the Jakarta-headquartered firm closed a US$150-million Series C round led by Global Atlantic and GGV Capital.

Co-founder Iman Usman said: “Ruangguru now has strong investors with education industry expertise. We plan to leverage their expertise and network to further improve our products and our team. This will help us to provide a world-class offering of education products leveraging technology to our students and workforce in the region to make them globally competitive. We will continue to fulfil our mission to enable better access to quality education to millions of learners in Southeast Asia.”

Also Read: Indonesian edutech startup Ruangguru raises Series B round led by UOB Venture Management

Launched in 2014 as an online marketplace for private tutors, the company has since branched out into providing a learning management system (LMS). Its online platform allows teachers to create content and assign school works for students to work on. It also offers an exam practice feature on its website, as well as a mobile app that Devara dubbed as the ‘Uber for tutoring service’.

In 2020, Ruangguru expanded to Thailand by launching StartDee in 2020, after rolling out KienGuru in Vietnam in 2019. It claims to have over 22 million users.

The company has also said that this is also the first financial year where it has achieved profitability. Not surprising as COVID-19 accelerated online learning globally.

“As Southeast Asia’s leading provider of quality online education, Ruangguru is poised to further transform and improve the landscape for K-12 and adult learning,” said Evan Feinberg, Partner at Tiger Global Management.

“Since the previous Series C round, we have witnessed first hand Ruangguru’s unwavering commitment to education, especially during the trying times of the COVID-19. We will continue to support companies that are bringing a lasting impact to our future through education technology,” added  Jixun Foo, Managing Partner at GGV Capital.

Image Credit: Ruangguru

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Ecosystem Roundup: Grab confirms US listing plan, SEA gets new venture debt fund

Grab confirms US listing plan with Altimeter partnership at US$39.6bn valuation; It will provide the SEA tech giant with approximately US$4.5bn in cash proceeds; The combined entity expects its securities will be traded on NASDAQ under the symbol GRAB in the coming months. More here

SEA’s startups beat pandemic blues to raise record US$6bn in Q1; As per DeaslStreetAsia’s report, companies in the region inked at least 211 deals in Q1 to raise close to 70% of the total capital secured in 2020; In terms of deal count, the Jan-Mar period saw a 48% increase relative to the previous quarter and 43% increase y-o-y. More here

Bukalapak bags US$234mn; Lead investors are Microsoft, GIC, and Emtek; Should the local listing materialise, Bukalapak will then look to merge with a SPAC in the US; Bukalapak is planning to list in Indonesia and has engaged Bank Mandiri’s securities arm to assist in the process; Bukalapak, which was last valued at US$2.5bn in 2019, claims it has 100mn+ users on its platform. More here

Genesis Alternative Ventures makes final close of US$80mn venture debt fund; Genesis claims it has to date deployed over US$30mn to a portfolio of 12 venture-backed companies across SEA; Genesis positions itself as a private lender to venture and growth-stage companies funded by tier-one VCs. More here

Shipper raises US$63mn Series B from DST Global, Sequoia India; The capital will enable Shipper to further invest in its tech and significantly expand its logistics network; Shipper provides fulfilment and delivery services through its digitally managed network of fulfilment centres, delivery partners, and retail points.

Fave acquired by Pine Labs for US$45mn, to expand its consumer payments app to India; Fave, which also offers a loyalty cashback platform to restaurants and retailers, operates in 35 cities across SEA; Fave has raised US$32mn to date from investors including Sequoia India, SIG Asia Investment and Venturra Capital. More here

Draper Startup House acquires HATCH! to expand its entrepreneurship network to Vietnam; The cash-cum-equity deal will result in a new Vietnamese entity, with investors including Pham Vinh, a UK-based property developer; It aims to attract the digitally nomadic fans of Draper Startup House such as remote workers and other travellers to Vietnam for its culture, geography and talent. More here

How KK Fund evaluates a early-stage startup for investment; ‘The management team is the most important factor because we cannot change the management team once we invest in a company’, he says. More here

Ex-VinaCapital Ventures exec’s US$50mn fund Touchstone Partners hits first close; Touchstone seeks to invest in Vietnamese startups in fintech, real estate, healthcare, edutech and technology that enhances efficiency in major value chains such as manufacturing and agriculture; Touchstone’s notable backers include Pavilion Capital and Vulcan Capital. More here

Tribe raises funding to expand its accelerator programme globally; Investors include Korea Investment Partners, Mandiri Investment, Greg Kidd (early investor in Twitter, Coinbase and Square); Tribe will use the funds to grow its accelerator and academy programmes into newer markets, including the US, Korea, Indonesia and HK. More here

Docosan raises US$1mn to provide online healthcare services in Vietnam; Investors are AppWorks, Huat Ventures and David Ma; The Docosan app enables patients to compare healthcare providers, book appointments, chat with primary care assistants, and manage health data for free; It claims to have helped 50K patients in Vietnam book appointments with physicians across 35 specialties so far. More here

Tembusu Partners’s e-sports fund invests US$1mn into Singapore’s RSG; FrontSight Capital Fund seeks to leverage the exponential growth potential of e-sports in the region, where online entertainment and play is driven by digital adoption and transformation; It plans to launch a second fund in the future to capitalise on the growing e-sports industry in SEA. More here

Dat Bike bags US$2.6mn pre-Series A to bring more e-motorbikes to Vietnam; Investors are Jungle Ventures, Wavemaker Partners, Hustle Fund, iSeed Ventures; The company claims its flagship Weaver model (which retails at US$1,700) can rival gas bikes in power and range and is powered with a 5,000W motor that helps the bike accelerate from 0 to 50kmph within three seconds. More here

Former MDEC CEO Yasmin Mahmood joins global AI firm Skymind as Chairperson; With a presence in 17 countries, Skymind develops innovative AI technologies that it claims are deployed in Fortune 500 companies including Nvidia, IBM, Huawei and NASA; Last year, its venture arm launched a US$800mn fund to support promising new AI companies and academic research globally. More here

Otsaw Digital launches home delivery robots in Singapore; Named Camello, the robots are currently undergoing a one-year trial with their services offered to 700 households; Users can book delivery slots for groceries including milk and eggs, and they will be notified through an app when the robot is near a pick-up point, such as the lobby of an apartment building. More here

How Xendit rose quickly in SEA’s crowded fintech space; Xendit, which began as P2P provider in 2015, was the first Indonesian company to be accepted into seed-stage accelerator YC; Midway into the 12-week programme, the startup pivoted into a payment gateway firm — a bet that has paid off. More here

Fund raising 101 for early-stage startups; Be doubly sure that you are raising for the right reasons; As an example, if your product market fit (PMF) is visible and sales are shooting up, then hiring for customer services is a good example of right fund usage; But if you are yet to hit the PMF, seeing poor retention and then you want to raise funds, hire more sales people to push revenue, that is bad usage and will probably not find investors. More here

Difference between seed funding and early-stage funding; Seed money is funding collected from investors and used to start a business; Early-stage financing comes in two parts — Series A generates more funding than seed funding, but the risks are higher; VCs are most likely to invest in your business at this stage, and the method of raising funds involves allotting preferred stock to investors. More here

How the work-from-home shift impacts SaaS security; In the remote-work world, SaaS apps have become an enticing vector-of-choice for bad actors; Just think of the typical employee, working off-site, untrained in security measures, and how their access or privileges increase the risk of sensitive data being stolen, exposed, or compromised. More here

3 AI-driven digital marketing strategies your startup needs right now; When it comes to online ads, AI is the superpower all SMEs should have up their sleeves for three key reasons: to optimise ad spend, create compelling content and drive innovative campaigns. More here

Image Credit: Grab

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Tembusu Partners’s e-sports fund invests US$1M in Singapore’s RSG

FrontSight Capital

William Cao, Managing Partner of FrontSight Capital Fund

Tembusu Partners, a Singapore-based boutique private equity investment firm, announced today its FrontSight Capital Fund has invested US$1 million in local e-sports organisation RSG.

The e-sports fund’s maiden investment will be used to support RSG’s strategy to strengthen capabilities, expand the regional talent pool, and extend its market reach to better engage the gaming community and improve fan experiences.

Tembusu Partners said in a press note RSG is the first in its ten planned investments of US$1 to US$2 million each in Southeast Asia’s e-sports teams and companies that are at the “frontier of growth and innovation in the region.”

The PE firm plans to launch a second fund in the future to capitalise on the growing e-sports industry in Southeast Asia.

Launched in 2020, the FrontSight Capital Fund invests seeks to leverage the exponential growth potential of e-sports in the region, where online entertainment and play is driven by digital adoption and transformation. The fund is jointly managed by Managing Partners William Cao and Dennis Liu, and managed by Tembusu Partners.

“We launched the fund as we recognised the immense potential in Southeast Asia’s e-sports sector, which is uniquely positioned for exponential growth. This fund, which is in line with our thesis-driven approach to invest in disruptive technology and trends that drive innovation in key focus sectors including consumer services, serves as a strategic platform for international investors to tap on the growth of e-sports in the region,” noted Andy Lim, Founder and Chairman of Tembusu Partners.

Also Read: Who’s driving e-sports and gaming in Southeast Asia: Gamers or fans?

“Tembusu will continue to explore similar strategic investments in the region’s e-sports sector through this fund, thereby paving the way for more to participate in this fast-growing industry,” he added.

Founded in 2017, RSG is a professional e-sports organisation operating across Southeast Asia to engage the gaming audience through e-sports teams and content creators. Its e-sports teams specialise in notable games such as Mobile Legends, PUBG, Call of Duty and Warcraft, and have participated in over 200 tournaments collectively.

Building on its presence in Singapore, Malaysia and Vietnam, RSG is in the midst of a regional expansion into emerging markets. The organisation also plans to compete in more games and reach 150 million gaming audience in Southeast Asia by 2021.

“While the US and China currently lead the global gaming industry, the growth journey for Southeast Asia’s e-sports sector has only just begun. Across Southeast Asia, we see many young and untapped e-sports organisations that are well-positioned to expand regionally and globally,” opined Cao.

Also Read: EVOS raises US$12M in Series B to accelerate the growth of its e-sports platform

“As we scale up and diversify our offerings to other aspects of the gaming market, RSG will take a sustainable growth approach to invest in new technologies, expand our operations regionally, and groom the talent pool,” said Jayf Soh, Founder and CEO of RSG.

Southeast Asia holds the largest revenue in the global gaming market, and almost two-thirds of the gaming population in Greater Southeast Asia are engaged in e-sports. According to market research firm Newzoo, revenue from e-sports in Southeast Asia is expected to grow at a CAGR of 24 per cent from 2018 to 2023, one of the highest globally.

In addition, the region’s gaming market size is also expected to register a CAGR of 8.5 per cent over the forecast period of 2021 to 2026.

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Image Credit: Tembusu Partners

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