BBTruck, a supply chain and logistics technology company headquartered in Taiwan, recently closed its pre-series A funding round led by Oasis Venture, H2U Corp., and StarWorks Entrepreneurial Venture Capital, to bring its total funding to US$6.5 million.

The firm plans to use the money to accelerate global market expansion, particularly in North America and Southeast Asia.

e27 spoke with Steven Chou, BBTruck’s co-founder and CEO, to learn more about the company’s offerings, USP, and expansion plans.

Excerpts:

How does BBTruck differentiate itself from other logistics technology platforms? What are your competitive advantages in the global market?

BBTruck is a light-asset model that allows us to manage the platform from a holistic supply chain perspective without owning a fleet. This model enables traditional trucking companies and innovative logistics providers to join as capacity partners, helping businesses reduce logistics and transportation costs.

Our one-stop supply chain and logistics technology platform offers a comprehensive 5PL solution, providing a more integrated view than traditional 3PL or 4PL providers. It allows B2B clients to monitor capacity data, track shipments, and oversee routes through an intuitive interface, enhancing transparency and efficiency.

What are the primary areas where the US$6.5 million pre-series A funding will be allocated?

• The funding will primarily be allocated to three key areas:
• Actively expanding into international markets.
• Enhancing technical capabilities in capacity data analysis and integration.
• Recruiting top talent.

We currently operate eight logistics warehouses in Los Angeles, Houston, Chicago, New Jersey, Vancouver, and Toronto, supported by a fleet of around 200 vehicles.

Our immediate goal is to enhance our North American operations by adapting our platform’s functionalities to better suit the local logistics industry. This includes expanding map coverage, supporting more local languages, and strengthening partnerships with local logistics partners and customers.

Also Read: How companies are using AI to prevent supply chain disruptions?

By 2025, we also plan to enter Southeast Asia, such as Vietnam, Malaysia, Singapore, Thailand, and Indonesia, where we have already secured logistics partners. We aim to provide businesses in these regions with transparent supply chain logistics management.

We are also advancing our data analysis and integration technologies to deliver enhanced capacity calculation and automated dispatching services to our customers worldwide. We will also optimise our carbon footprint verification data collection applications to support logistics providers’ digital carbon management needs.

With plans to expand into North America and Southeast Asia, how does BBTruck plan to navigate the different regulatory environments and logistical challenges in these regions?

In North America, we’ve identified that shipping costs often fluctuate based on factors like peak hours and demand – unlike the more stable pricing models used in Taiwan. To address this, we continuously refine the features of BBTruck’s one-stop supply chain and logistics technology platform, enabling businesses to manage these variable shipping costs efficiently.

Collaboration with local partners will be key for newer markets like North America and Southeast Asia. These partners’ deep understanding of the regional logistics landscape will help us quickly adapt to each market’s specific operational models and regulatory requirements.

Can you share more about the enhancements BBTruck plans to make in its technology offerings, particularly in capacity data analysis and integration?

BBTruck is focused on enhancing our technology offerings by optimising big data applications and algorithm design to improve logistics capacity calculations and data exchange across multiple carriers and fleets.

Also Read: What entrepreneurs should know about delivery management in 2024

As our network of partners and customers grows, we are accelerating upgrades to our API integration interface and data exchange framework, enabling us to handle larger volumes of information and ensure seamless integration with various systems. We are also actively exploring AI technologies to advance our platform, aiming to develop new capabilities to enhance our one-stop supply chain logistics solutions.

BBTruck’s platform leverages big data to maximise logistics efficiency. Could you elaborate on the specific data points and analytics that drive these improvements?

BBTruck’s platform harnesses big data to enhance logistics efficiency by integrating and analysing various critical data points. Our system collects and analyses data related to transportation capacity, including truck sizes, devices, real-time orders, load capacities, and addresses.

When a business places an order, our platform uses this data to automatically allocate the most suitable transport fleet by matching available trucks to the delivery requirements. This approach optimises logistics resources, resulting in a nearly 75% reduction in empty truck rates and a 40 per cent improvement in order placement and tracking efficiency. These advancements significantly lower logistics costs and enhance overall operational efficiency for our clients.

By integrating diverse data related to transportation capacity, BBTruck can efficiently allocate and flexibly combine different delivery resources. For instance, a truck can be repurposed as a small satellite warehouse and paired with a motorcycle fleet to deliver goods in a radial distribution model. This strategy minimises the number of delivery points the truck must visit and reduces fuel consumption, enhancing overall logistical efficiency.

How does BBTruck’s API integration work with multiple carriers and freight companies? What challenges did you face in developing this feature, and how have you addressed them?

BBTruck’s API integration ensures seamless connectivity between our platform and various carriers and freight companies through a robust data exchange framework. This integration allows for real-time synchronisation of order, load, and cargo information, enabling customers to manage their entire supply chain logistics efficiently in one place.

Despite thousands of freight companies in Taiwan, many still rely on traditional methods like manual scheduling and phone orders, complicating API integration due to their lack of digital systems.

To address this, we developed a lightweight, easily integrable, and cost-effective order management system that adapts to various operational methods. Our solution offers high flexibility, using big data analytics to customise services based on specific customer needs, further ensuring broader compatibility and enhancing logistics management across diverse environments.

In the North American market, we face similar challenges. Although large fleets often have open APIs, many smaller logistics providers still use traditional methods. This presents significant opportunities for technological integration, making it a promising market for BBTruck.

Our platform’s solutions to industry pain points and alignment with market needs have driven a 30 per cent annual growth in logistics providers using our platform.

Moving forward, BBTruck will continue to enhance our matchmaking services, delivering additional advantages to our clients.

BBTruck claims it is committed to reducing carbon footprints and achieving net-zero carbon emissions. How do you plan to achieve these goals?

We plan to achieve these goals by integrating sustainability into our core operations. We employ technology to precisely calculate and allocate logistics capacity, minimising waste and enhancing efficiency. Our approach includes planning the most efficient routes to reduce fuel consumption and consolidating loads to maximise truck capacity, thereby lowering the carbon footprint.

Also Read: APX wants to revolutionise logistics in SEA with ‘less-than-truckload’ innovation

In August 2024, we partnered with Standard Foods on a charity delivery project in Taiwan executed with a carbon-neutral approach. This initiative leveraged our automated data collection for precise carbon footprint verification, reflecting our strong commitment to ESG principles.

Looking ahead, we will continue to leverage advanced technology to improve delivery efficiency, reduce carbon emissions, and deepen our use of logistics data for carbon footprint management.

Could you provide more details on the logistics data carbon auditing feature? How do you see it impacting the broader supply chain industry?

BBTruck platform’s logistics data carbon auditing feature, supported by Taiwan’s ISO 14067 product carbon footprint certification, allows for real-time collection and processing of emissions data. It provides businesses with access to Scope 3 (indirect greenhouse gas) emissions data from external logistics providers, aligning with the Greenhouse Gas (GHG) protocol. This automated data collection and analysis simplify the often challenging task of calculating Scope 3 emissions, offering a valuable tool for developing carbon-neutral supply chains.

Effective supply chain carbon management has become increasingly critical as the global focus shifts towards achieving net-zero emissions by 2050. The logistics industry faces substantial challenges in implementing sustainable practices and adapting to technological changes. BBTruck’s platform addresses these challenges by providing transparent logistics management that enables businesses to monitor and manage their carbon footprint throughout delivery.

Our platform reduces inefficiencies such as low load factors and high empty vehicle rates by calculating transportation capacity and automating allocation. This lowers the carbon footprint of logistics operations and benefits logistics providers and businesses by enhancing sustainability.

—

Image Credit: BBTruck.

The post Beyond 3PL: BBTruck’s 5PL solution for a smarter, greener global supply chain appeared first on e27.

A startup’s success is often driven by its ability to solve real-world problems effectively. Startups that identify pressing issues and develop innovative, scalable solutions are more likely to gain traction in the market.

Whether addressing industry inefficiencies, enhancing customer experiences, or solving societal challenges, these businesses thrive by aligning their products or services with unmet needs. By focusing on problem-solving, startups not only attract customers and investors but also build sustainable growth models. The ability to adapt and evolve with changing problems is crucial to long-term success in the competitive startup ecosystem.

Identifying societal problems requires startups to have a deep understanding of the needs and pain points of specific communities or industries. In this context, Filipino society—the most exciting market in Southeast Asia today.

This can be achieved through active engagement with potential customers, conducting surveys, and observing market trends. Startups should immerse themselves in real-life situations, talk to individuals facing challenges, and use data to uncover inefficiencies, gaps, or unmet demands.

Paying close attention to common complaints, time-consuming processes, or areas where technology can make a difference often reveals valuable opportunities. Founders who remain curious, empathetic, and focused on problem-solving are more likely to identify pressing issues that need innovative solutions.

Once a problem is identified, the next step is to build a tech-driven solution.

Also Read: Essential insights: Crafting a comprehensive cap table for founders

Founders should collaborate with technical experts or developers to design a product that addresses the problem. They should start by creating a minimum viable product (MVP) that tests the solution’s core functionality with a small group of users.

Feedback from this initial phase can help refine the product and ensure it meets user needs. Additionally, the solution should be scalable, adaptable, and able to leverage emerging technologies such as AI, cloud computing, or mobile platforms. By focusing on solving real-world problems with practical, tech-driven solutions, startups can position themselves for success and long-term growth.

How startups can solve a problem

But what else should startups keep in mind? Is there any insight that can help them understand their audiences, identify problems to tackle, and build the right solutions for them?

To find the answers, don’t miss the opportunity to gain invaluable insights at Echelon Philippines 2024!

Join Julian Cua, Managing Director and Partner at Boston Consulting Group (BCG), as he delivers the keynote, “Through the Eyes of the Everyday Filipino: Understanding Daily Challenges Worth Solving” at Level 2, SMX Convention Center Manila.

Also Read: Mastering the funding maze: Unlocking financing pathways for founders in the Philippines

Discover the pressing issues Filipinos face daily and explore opportunities for businesses and startups to address these challenges through innovation. Be part of the conversation that shapes the future of the Philippines and SEA at Echelon Philippines 2024.

Mark your calendars on September 26-27, 2024.

The post Real-world challenges: How Filipino startups can drive success through innovation and empathy appeared first on e27.

The telecommunications industry stands at a pivotal crossroads as 2G and 3G networks make way for 4G and 5G. This transition presents a golden opportunity for telcos to reimagine their strategies, leverage cutting-edge technologies, and tap into previously unreached customer segments. Cloud technology is at the core of this transformation, poised to revolutionise telco operations and service delivery, especially in regions where 2G still dominates.

The next billion users: An untapped opportunity

For years, telcos have been entrenched in fierce competition, driving down prices and offering increasingly commoditised services. In this landscape, differentiation has become challenging, and growth in saturated markets has plateaued. However, the global shift from 2G to 4G represents a unique opportunity for telcos to break free from these constraints and connect with a vast pool of new users who have yet to experience the internet entirely.

According to GSMA Intelligence, there were still 3.2 billion 2G connections globally in 2020. In India alone, over 250–300 million people continue to use basic feature phones as an alternative to smartphones, which remain out of reach for many due to cost barriers. For telcos, these users represent an enormous, untapped market. As 2G networks sunset, telcos have a critical window to connect these users to the digital world and transform their businesses.

The shift from 2G to 4G is more than a network upgrade; it’s an opportunity for telcos to redefine themselves as digital service providers and key enablers of the next wave of internet adoption. It presents the potential to offer life-changing internet services to billions while securing long-term customer loyalty and driving growth.

Here are three critical areas to set a course for success:

Craft a forward-thinking strategy with tangible objectives

As the industry witnesses the transition from 2G to 4G, telcos must move beyond their traditional role as basic connectivity providers and embrace a broader, tech-driven vision. This shift requires a change in mindset—telcos must see themselves as enablers of digital experiences that transcend voice and data. By doing so, they can unlock new business opportunities and deliver value-added services that attract and retain customers.

Also Read: The next communications frontier: Uniting 5G and VoIP in Southeast Asia

A prime example of this transformation is Reliance Jio in India. It successfully evolved its business and positioning as a digital life provider by offering a comprehensive suite of apps and services alongside affordable devices. Telcos aiming to succeed in the post-2G era must adopt a similar approach, focusing on innovation and customer experience to differentiate themselves from the competition.

Harness cloud solutions to drive growth and build loyalty

Cloud technology is a game-changer for telcos looking to reach new users and enhance customer loyalty. One key advantage is its ability to lower the cost threshold for delivering app experiences and multimedia services. This is particularly crucial in regions where affordability is a major barrier to internet access.

Thanks to the cloud-enabled platform, recent advancements have made it possible for even low-cost feature phones to run popular apps like YouTube and TikTok. The cloud-enabled platform allows devices as cheap as $15 to deliver modern app experiences and video streaming, dramatically lowering the entry barrier for new internet users. This breakthrough can attract billions of new subscribers while enhancing customer satisfaction and loyalty through richer user experiences and seamless access to digital services.

Create innovation services and diversify revenue streams

While the transition from 2G to 4G poses challenges, it also presents telcos with an opportunity to explore new business models and revenue streams. Cloud-native networks enable telcos to collaborate with partners across various industries, such as entertainment, digital advertising, and enterprise solutions. These partnerships can help telcos create unique offerings that drive growth and maintain competitiveness in a rapidly evolving market.

For example, by partnering with content providers, telcos can offer bundled entertainment packages that include streaming services, gaming, and other digital experiences. These offerings generate additional revenue and help telcos differentiate themselves in a crowded market.

Navigating challenges and maximising returns

Implementing a cloud-first strategy is not without its challenges. Telcos must navigate complex regulatory environments, particularly regarding data privacy and network security. Additionally, they must balance the initial investment in cloud infrastructure with potential resistance from users accustomed to 2G services.

However, the potential returns are significant. By capturing even a small fraction of the billions of 2G users transitioning to 4G, telcos can drive substantial growth in Average Revenue Per User (ARPU). Cloud-based services also offer higher margins compared to traditional voice and data plans, positioning telcos for long-term success.

Also Read: Is Singapore 5G ready?

Embracing cloud technology allows telcos to maintain ownership of the customer relationship rather than being relegated to “dumb pipe” status by tech giants entering the connectivity space. By offering a comprehensive suite of services, telcos can remain relevant and competitive in an increasingly digital world.

Seizing the moment: The time to act is now

The sunsetting of 2G networks is pivotal for the telco industry. Those who seize the opportunity to undergo a fundamental shift in vision and strategy will be best positioned to connect the next billion users, provide transformative internet services, and cultivate lifetime customer loyalty. Industry leaders must embrace a cloud-first approach to keep pace with change and shape the future of connectivity.

—

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 us on Instagram, Facebook, X, and LinkedIn to stay connected.

Image credit: Canva Pro

The post A new dawn in the post-2G era: How cloud technology can propel the telco industry to new heights appeared first on e27.

It’s not a cybersecurity incident, but a glaring issue with cybersecurity today — dependency.

CrowdStrike is currently facing multiple lawsuits following the July 2024 outage. Angry customers are seeking compensation for extensive disruptions and financial consequences incurred due to the incident. Its widespread impact has also resulted in a class action lawsuit being filed against the company for negligence.

Although the issue was reversed within 79 minutes, the recovery process was complex and time-consuming. A quick fix was not possible here.

The incident begs the question: how reliable and stable are software security solutions in keeping us protected at all times? When the reason for acquiring software security is to enhance your operations and protect your organisation, organisations can ill-afford disruptions coming from the security provider.

As the dust settles, cybersecurity experts must advocate for a change in how organisations approach risk management and security solutions. While this event was not a cyberattack, it has underlined the vulnerabilities in software-dependent security measures and the need for a more holistic approach to cybersecurity.

The possibility of disruptions resulting from software defects or update problems becomes a major issue as companies depend more and more on software solutions to guard their digital assets. The CrowdStrike outage, which led to widespread crashes of specific Windows systems, is a stark reminder of the delicate balance between security and operational stability.

Limitations of software-based security

Blue Screens of Death (BSOD) and system crashes following software updates are not unique to this incident. In a separate incident that same month, Microsoft users reported that their computers were crashing every 30 minutes following a security update.

These incidents raise important questions about the architecture of security solutions and the potential benefits of diversifying cybersecurity strategies. While software-based security remains important for detecting known threats, the need for integration and complex layering of software systems creates a labyrinth of potential challenges. The interdependency that is characteristic of the software ecosystem means that countless entry points and vulnerabilities become interlinked, allowing multiple points of disruption and long recovery times.

Also Read: Embracing AI evolution: The crucial role of data management and cybersecurity in AI success

The promise of intelligent hardware-based security solutions

Running counter to such issues, hardware-based security solutions have unique benefits. From the silicon level, they operate independently from the software layer and can provide an additional line of defence without interfering with core system processes. This independence is particularly useful in instances where software vulnerabilities or update issues might compromise the integrity of the security system itself.

Just as an external auditor reviews a business’s processes without disrupting or complicating its operations, ideal security solutions should integrate seamlessly to maintain the functionality and workflow of existing systems while providing robust protection.

Moreover, integrating Artificial Intelligence (AI) into hardware-based security solutions presents exciting possibilities for addressing one of the most significant challenges in cybersecurity: zero-day attacks. Unlike traditional software solutions that rely on known threat databases, AI-powered hardware security operating at the hardware layer does its work in an engineered enclave environment. This gives it the potential to identify and respond to new and unknown threats in real-time without the need for constant human updates.

Encouragingly, the concept of non-disruptive security measures is gaining traction in the cybersecurity community which has long relied on software solutions as its main line of defence — but it needs to move faster.

Digital transformation and cybersecurity challenges

The need for robust and adaptable cybersecurity measures is particularly dire in regions experiencing rapid digital transformation, such as the Asia-Pacific (APAC). According to IDC, Asia-Pacific is leading the charge in digital transformation spending growth, with an expected 18.9 per cent increase in 2024, outpacing North America (15.7 per cent), Europe (13.6 per cent), and Latin America (11.3 per cent).

This accelerated pace of digital adoption in Asia-Pacific presents both opportunities and challenges. As organisations in the region embrace new technologies at a faster rate than their global counterparts, ensuring the security and stability of these systems becomes increasingly critical and complex.

Also Read: How Flexxon aims to solve AI’s cybersecurity problem through hardware-focused approach

The rapid digital transformation in Asia-Pacific also correlates with higher cybersecurity risks. In 2023, the World Economic Forum reported that the average number of cyber attacks per organisation in the APAC region is approximately 47.04 per cent higher than the global average. This higher incident rate shows the urgent need for more advanced cybersecurity measures in the region as it continues to lead in digital transformation.

This reality highlights the need for a more holistic approach that combines the strengths of both hardware-based and software solutions. As we move forward, it’s clear that the future of cybersecurity lies in this balanced hardware-software approach.

A call for a holistic approach

The CrowdStrike outage should be a wake-up call for organisations worldwide. It shows the urgent need for diverse security strategies and innovative solutions that can operate independently of core system processes. Organisations can build more resilient systems capable of withstanding future cybersecurity challenges by adopting a holistic approach that combines the strengths of software and hardware-based security measures. Integrating AI-powered hardware security into existing cybersecurity is how we get the robust, adaptive, and non-disruptive security that we all need.

—

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 us on Instagram, Facebook, X, and LinkedIn to stay connected.

Image credit: Canva Pro

The post How the CrowdStrike outage revealed software’s Achilles’ heel appeared first on e27.

Rei Murakami Frenzel, the second daughter of Yoshiaki Murakami, founder of Japan’s Murakami Family Foundation, has teamed up with Felix Frenzel (former Investment Manager at Antler) to launch Kadan Capital in Singapore.

Also Read: Healthtech, edutech dominated SEA’s funding scene in past 5 years: Tracxn

Kadan, which means ‘decisive, determined’ in Japanese, seeks to invest in early-stage companies in Asia with sufficient evidence of product-market fit and significant rapid growth potential.

The target verticals are fintech, SaaS, and Artificial Intelligence across Southeast Asia (mainly Singapore and Indonesia), Japan, and the Middle East (primarily the UAE and Saudi Arabia).

The ticket size is US$500,000 to US$1 million.

“We believe now is the right time to back a new wave of ventures in Asia and beyond,” Kadan Capital said in a statement. “As active investors, we are committed to supporting visionary entrepreneurs with the boldness and conviction to drive meaningful, positive change in the world.”

“We go beyond providing capital; we are long-term partners offering strategic insights, resources, and a powerful network to help transform high-potential ideas into industry-defining successes,” the company added.

Singapore’s early-stage VC space is vibrant and rapidly growing, driven by a strong startup ecosystem, government support, and strategic location in Southeast Asia. The city-state is home to numerous VC firms that focus on seed and Series A funding for startups in sectors like fintech, AI, e-commerce, and deep tech.

Also Read: Funding into SEA’s female-led startups falls 42% to US$480.8M in 2023: Tracxn

Government initiatives like Startup SG and tax incentives have bolstered investor interest, while incubators and accelerators provide additional support to entrepreneurs.

—

The post Yoshiaki Murakami’s daughter launches early-stage VC firm Kadan Capital in Singapore appeared first on e27.

Tokenize Xchange (Tokenize), a digital asset exchange headquartered in Singapore, has secured an undisclosed strategic investment for its mainnet, Titan Chain, from digital entertainment, blockchain, and gamification company Animoca Brands.

As part of the deal, Animoca will support Tokenize through market-making and node validation, assist in listing Tokenize’s TKX token, and explore partnership opportunities with Mocaverse and other projects.

Cryptocurrency market dynamics: Insights into supply, demand, and regulatory influences

This partnership will facilitate the development of new blockchain-integrated products, particularly in gaming and digital collectibles. At the same time, Animoca’s role as the lead validator for Titan Chain will bolster security and efficiency.

Hong Qi Yu, CEO and founder of Tokenize Xchange, commented: “This investment from Animoca Brands into Titan Chain marks a pivotal moment for the entire Tokenize ecosystem. This partnership will significantly enhance our ability to innovate across DeFi, GameFi, and NFTs, solidifying Tokenize’s position as a leader in the digital asset space.”

Tokenize Xchange offers a secure, user-friendly platform for trading various cryptocurrencies, serving individual and institutional investors. It operates under regulatory exemptions from the Monetary Authority of Singapore as well as a full Digital Asset Exchange license from the Securities Commission Malaysia (SC).

Titan Chain is built on the Cosmos SDK, offering full EVM compatibility and seamless Ethereum interoperability. It addresses high transaction fees, scalability issues, and limited interoperability in existing networks.

The rise of Web3 and crypto startups: Pioneering the decentralised future

The exchange recently raised a US$11.5 million Series A extension round.

The blockchain market is projected to reach US$1,431.54 billion by 2030, according to Grand View Research.

—

The post Animoca Brands backs Singapore’s digital asset exchange Tokenize appeared first on e27.

It’s starting to feel like every product has an ‘AI-powered’ badge slapped on it. However, the SEC put its foot down earlier this year, charging US$400,000 for the false claims made by two companies.

“AI washing” is not only misleading, but it also undermines the perception of AI-first products and leads to disappointment among customers and investors.

Understanding the difference between AI-enabled and AI-native solutions helps clarify competitive edge, scalability, and market positioning. While AI-enabled solutions focus on enhancing existing products and may appeal to a broader customer base with a more familiar offering, it’s essential to understand the constraints to scale regarding incompatible data sources and legacy limitations. 

Let’s decode the jargon, find out how to spot AI that delivers, and ensure you get what it says on the label.

AI-enabled solutions

Beginning as conventional technologies, AI-enabled solutions are those that later integrate AI to boost performance. 

For example, HubSpot integrates AI to automate tasks like email scheduling and lead score predictions, enhancing its CRM functions. While Netflix uses AI to personalise show and movie recommendations, transitioning from a standard digital platform to one that leverages AI to analyse viewing habits for better suggestions.

What these companies have in common is, although not AI-native, they are digital-native. Both companies have accumulated vast amounts of user data over decades, fueling their AI engines. Netflix has viewing history, ratings, and metadata, while HubSpot has customer interactions, marketing data, and sales information. They have also invested heavily in AI talent.

When looking for AI-enabled companies to invest in, it’s crucial to ensure they have clear goals for their AI initiatives and are prepared to keep developing. Netflix invests 10 per cent of its revenue into its technology and development budget.

Also Read: Embracing AI in Southeast Asia: The strategy for avoiding cost overruns

What specific problem has your prospect investment identified that AI can solve? Are they continuously investing in their AI journey, or do they see it as a one-time project? AI initiatives must constantly evolve and adapt with their user base, so you must ensure your AI-enabled ventures have an agile culture to allow for rapid iterations.

AI-native solutions

Since AI-native solutions are built from the ground up using AI, they inherently offer more sophisticated capabilities. This means they have the elasticity to scale, deliver high performance with minimal resource consumption, and are designed for continuous AI advancement — they are positioned at the forefront to reap the benefits of rapidly evolving technology.

However, since these market disruptors often pioneer new fields, redefining industry standards, they come with a price tag and notable uncertainty.

Look at OpenAI’s GPT models. Its products are fundamentally AI, constantly advancing their ability to understand and generate text. Altogether, VCs have put in just over US$300 million at a valuation of US$27 billion – US$29 billion.

Similarly, Waymo is designed to utiliSe AI for navigating and making decisions, functioning as a fully integrated AI system rather than just a car with AI features. The autonomous ride-hailing service raised US$2.5 billion in its second round of funding.

Some of the smaller players looking to compete in the market often use third-party technology, like OpenAI, to address a specific lucrative use case. Labeled thin wrapper startups, these AI founders take existing technology and add their own unique value proposition — like Salesforce did with Oracle database.

The important part is to ensure your prospective startups keep listening to their audience, iterating their products, and confirming they solve a painful enough problem so that, over time, they can become thick wrappers with strong defensibility instead.

Wrapping up

In essence, most startups can’t compete with ChatGPT. Ninety percent of AI startups fail, most commonly due to a lack of market awareness, funding, or expertise. Jasper AI is an example of this, as its revenue and valuation crumpled after the source, OpenAI, released ChatGPT, a model that did precisely the same thing. 

Also Read: One-third of Singaporeans never used AI tools in their workplaces: Survey finds

You must check whether your prospective AI-native startups solve a big enough problem, but more importantly, ask yourself: Do you believe in them? If you do, enquire about their business model. Is a focused strategy in place to meet achievable objectives? Have they got the right expertise? And what evidence do they have to show they can pivot if needed?

The fundamental nature of the space right now is that everyone is excited by AI, but we’re just coming to the tail of last year’s AI explosion, where many AI-enabled projects or AI-native startups that don’t have a strong enough use case or market won’t survive.

Only those that grow and meet revenue targets will retain their spot in the field. Startup ‘down rounds’ are often some of the first triggers that reduce investor confidence, and the loss of competitiveness or ability to meet growth targets is likely to impact employee and founder morale.

Choosing what companies to invest in requires careful consideration. But the results can be highly lucrative. Do you play safe and invest in renowned companies? Or is their market maturing? And what is their track record with implementing emerging technologies? Sometimes, after all your analysis, it’s about taking a leap of faith and trusting your gut.

—

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 us on Instagram, Facebook, X, and LinkedIn to stay connected.

Image credit: Canva Pro

The post How are the companies you invest in leveraging AI?  appeared first on e27.

In the dynamic world of construction, BuildHub stands out as a modern and innovative online marketplace. Our mission is to streamline connections between hardware stores and construction suppliers across the Philippines, making it easier for them to thrive and focus on their core strength — delivering high-quality materials and solutions for successful building projects. 

Transforming the construction industry

BuildHub PH aims to be the top choice for construction supplies in the Philippines. Through a wide variety of products within the online marketplace, we aim to empower professionals and revolutionise the industry with a broad selection of high-quality materials and innovative digital solutions. Our goal is to support our partners’ growth through access to financing and more delivery options. 

Decades of expertise and cutting-edge solutions

With over 67 years of combined experience in the construction industry, BuildHub offers unmatched expertise. Our platform is designed for a seamless shopping experience, providing contractors and hardware stores with essential materials at their fingertips. Specialising in wholesale and retail of construction goods—including cement, paint, steel, aggregates, and more—BuildHub PH equips professionals with the resources needed to build with confidence. 

Innovative solutions for growth

In June 2024, BuildHub PH introduced its enhanced platform, ‘BuildHub.ph,’ at the Philippine Construction (PhilCon) Visayas Expo in Cebu City. The launch featured ‘BuildCredit,’ a revolutionary financing service offering competitive interest rates of one per cent to three per cent for 30-60 day terms. 

Also Read: Adopting electric construction machinery for a sustainable future in Singapore

This new service aims to boost financial stability and foster growth for small and medium-sized businesses in the construction industry. Supported by our owned fleet of trucks and vessels under Buildmart Shipping, BuildHub provides more options for buyers to receive their products at the right time and price. 

Join us in shaping the future of construction

As BuildHub PH continues to grow, we seek partners who share our vision of transforming the construction industry. By collaborating with us, you’ll be part of a forward-thinking team committed to enhancing procurement processes and improving efficiency. Let’s work together to shape the future of construction. 

For more information about BuildHub PH and partnership opportunities, visit BuildHub.ph.

The post BuildHub PH: Pioneering the future of construction appeared first on e27.

The real estate sector faces increasing climate-related risks, with much focus traditionally placed on physical risks like extreme weather. However, transition risks — stemming from the shift to a low-carbon economy are equally critical. These risks include rising costs due to carbon pricing, market effects, technological changes, legal liabilities, energy efficiency regulations, and reputational risks, all of which can impact property values.

Understanding transition risks

Transition risks in real estate arise from regulatory changes, market dynamics, and evolving stakeholder expectations as the world moves toward sustainability.

Key risks include:

• Regulatory and policy shifts: New energy efficiency and carbon emissions regulations are being implemented globally. For example, the European Union’s Energy Performance of Buildings Directive requires significant retrofitting to meet energy standards. Non-compliance could lead to hefty fines and reduced net operating income.
• Market repricing and stranded assets: Properties not meeting sustainability standards risk depreciation or becoming ‘stranded’ assets. Investors are increasingly favouring low-emission properties, applying higher discount rates to those seen as high-risk due to potential regulatory changes. This trend affects liquidity and raises financing costs, prompting a reassessment of investment strategies.
• Technological advancements and obsolescence: While innovations in green technologies, like smart building systems and renewable energy integration, can enhance property value, they pose risks for older buildings. The challenge lies in balancing retrofit costs against potential increases in market value and operational savings.
• Reputation and stakeholder pressure: Real estate companies face growing pressure from investors, tenants, and the public to demonstrate sustainability commitments. Failing to meet these expectations can result in reputational damage, loss of investor confidence, and reduced access to capital.

Also Read: The climate change and gender equality connection: How to support underfunded women-owned business

Key factors influencing transition risk

Two key factors play a significant role in measuring transition risk in real estate: the costs associated with retrofitting buildings to lower energy consumption, greenhouse gas emissions and technological advancements. The expense of reducing greenhouse gas emissions tends to increase non-linearly; the greater the desired reduction in energy use, the higher the incremental cost.

Fortunately, technological advancements are expected to gradually lower these costs, with potential reductions in energy expenses ranging from 15 per cent to 95 per cent.

Both property owners and occupiers can contribute to reducing carbon emissions, though property owners generally have more direct influence. Depending on a building’s age and design, retrofitting can sometimes be more costly than demolishing and rebuilding from scratch. However, even minor modifications can yield significant benefits. It’s also important to consider that demolishing a building generates carbon emissions.

To illustrate, achieving a 75 per cent reduction in carbon emissions could cost a property owner roughly US$500 per square meter or US$46 per square foot. Some property owners, particularly those committed to environmental sustainability or with larger financial resources, might opt for retrofitting despite it often being more expensive than demolishing and rebuilding.

Strategic approaches to mitigate transition risks

To navigate these transition risks, real estate firms must adopt proactive strategies:

• Portfolio decarbonisation: Aligning with global climate targets requires setting clear emissions reduction goals, conducting energy audits, and implementing upgrades. Green certifications like LEED or BREEAM can enhance asset appeal to ESG-focused investors.
• Dynamic risk assessment and scenario planning: Incorporating climate risk scenarios into traditional risk assessments helps firms anticipate the financial impact of various transition pathways. This proactive approach allows better positioning against future regulatory changes and market shifts.
• Leveraging green financing instruments: Green bonds, sustainability-linked loans, and other green financing options provide capital for sustainability initiatives. These instruments often come with favourable terms tied to environmental performance, encouraging further investment in green practices.
• Enhancing data transparency and reporting: Digital tools like IoT and AI can be utilised for real-time energy monitoring and predictive maintenance, optimising building performance. Enhanced reporting aligned with frameworks like TCFD or GRESB improves compliance and investor confidence.

Also Read: What startups need to know about Claims Code, the new rulebook for making credible climate claims

• Tenant engagement and collaboration: Green leases, where tenants share energy responsibilities with property owners, foster collaboration on sustainability goals. Such agreements incentivise both parties to invest in energy efficiency and waste reduction initiatives.
• Geographic diversification and asset resilience: Geographically diversifying assets can reduce exposure to region-specific regulatory risks. Investing in climate-resilient infrastructure, such as flood defences and advanced cooling systems, helps maintain asset value amidst evolving climate conditions.

Conclusion

As the shift to a low-carbon economy accelerates, real estate firms must navigate the emerging transition risks by embracing sustainable practices. By focusing on proactive strategies such as portfolio decarbonisation, dynamic risk assessment, green financing, and tenant collaboration, firms can mitigate these risks and position themselves as sustainable real estate market leaders. Embracing sustainability is not just an ethical or regulatory obligation but a business imperative for long-term success in a future low-carbon economy.

Accacia’s climate risk assessment platform helps real estate stakeholders navigate challenges by providing advanced analytics, enabling investors and developers to meet regulatory standards and focus on resilient regions, shaping a sustainable future for Singapore’s built environment.

—

The post Transition climate risk: Navigating the future of sustainable real estate appeared first on e27.

In the retail business, only one thing really counts – sales. If you are not selling the products on offer in your store, you will not be in business for long.

Historically, retailers have tried various tactics to try to get consumers to spend more money, some of them successful, some of them not.

For a long time, using promotions was a tried and tested method of getting consumers to “buy-in” to a particular store or a particular brand.

This was especially true before the advent of online shopping when consumers had to physically go to the store, and spend time there exposed only to the brands and offers of the store manager’s choice.

That day is long gone.

Nowadays, omnichannel consumers are comparing products and prices online before ever entering a bricks-and-mortar store, and when they do, they have a device with them to compare and research on the fly.

So, the question is: how can online retailers cash in on uber-connected consumers and get them to spend money in their online store as opposed to someone else’s?

The answer: gamify.

Defining gamification

Gamification is nothing new. Modern educational organisations use numbers, letters, and ranking systems to motivate students; military institutions, on the other hand, have been using badges and rankings for much longer.

What is relatively new, however, is gamification in a digital retail context.

Opinions differ on the best definition of gamification in this digital context, but the following general definition works well: “Gamification is the use of game mechanics and game design techniques in non-game contexts.”

Non-game contexts like, for example, online shopping.

Also Read: 3 reasons why cryptocurrencies and gamification go hand-in-hand

But can inserting a game-like element into your online store really make a difference to your bottom line? Well, in a word, yes. It all comes down to motivation.

Motivation

To market any product to anyone, we need to understand customer motivation. “What drives our potential customers to behave in the way they do? Why would they spend their precious time and (hopefully) money on our products or services?”, says Kirsty Robinson, the business owner of Up8 Marketing, specializing in design and marketing.

A successful marketer, therefore, is one who understands what motivates consumer behaviour. But that’s not enough. The marketer must then go on to validate the motivation and present a suitable solution to the consumer.

Motivation, however, can be broadly divided into two subtypes: intrinsic and extrinsic.

Intrinsic motivation is what drives us to perform or complete a task simply for the enjoyment of performing or completing said task. It could be a sport that we play just for the fun of it or a puzzle that presents us with a stimulating challenge.

Extrinsic motivation, on the other hand, is what drives us to perform or complete a task so that we can earn an external reward or avoid a punishment. Closely related to the pursuit of money, achievement, social status and respect, extrinsic motivation is what drags most of us to work in the morning, the gym in the evening, and urges us to buy that new dress, piece of jewellery or sports car.

If we dig a little deeper into motivation, six perspectives can be differentiated, which can become relevant in gamification.The six perspectives of motivation:

1. Trait

Individual characteristics such as the need for achievement, power, and affiliation. Individuals with these traits can be motivated if the gamified element emphasizes success, competition, and membership.

2. Behaviourist learning

Performance-based immediate feedback influences the probability of future behaviour. Individuals are motivated by immediate feedback, either positive or negative, and by the offer of rewards.

3. Cognitive

Motivation is dependent on situation-specific goals, expectancies, and values of consequences. Individuals are motivated if the gamified element contains clear and achievable goals and highlights the consequences of those goals.

4. Self-determination

Especially relevant for fostering intrinsic motivation, as mentioned above. Individuals are motivated by experiencing feelings of competence, autonomy, and social relatedness.

5. Interest

A content-specific motivational variable that evolves in interaction with the environment. Individuals are motivated by their relation to the subject matter of a task or environment.

6. Emotion

Cognitive and motivational processes can be influenced by instructional strategies. Individuals can be motivated if gamification decreases negative feelings like fear, envy, and anger; and increases positive feelings like sympathy and pleasure.

These motivational elements apply to all of us at some point or another, but another major contributing factor is personality.

Personality Type

Just like opinions, we’ve all got one. And by the time we reach adulthood, our personality is pretty much fixed. (Just like viewpoints, we’ve all got one. And by the time we reach maturity, our personality gets pretty much fixed.)

In gamification, personality types, or player types as they are often referred to, are split into four types:

1. Achievers – They are all concerned about points and status.

2. Explorers – Not bothered much about badges, but they want to see new secrets.

3. Socializers – They are fond of experiencing fun through interaction with other gamers.

4. Killers – They hold a winning attitude. Extremely happy to see other gamers lose.

In eCommerce, we are not in the business of designing games per se, so we can leave socializers and killers out.

Achievers and explorers, however, make up a huge slice of your potential customers; and it is these two personality types you can really engage with by adding gamification elements to your online store.

Buyer personas

Aspects of our personalities are often used by companies to build buyer personas.

Market research and real customer data are combined with certain personality types to create hypothetical customers. Marketing and sales departments use these buyer personas to plan their activities based on the perceived motivational factors that influence the personas.

In short, we attempt to appeal to imaginary unchanging consumers. But the very concept of an unchanging customer is naive at best and has to be complemented with contextual information. Our personalities may not change, but our needs do, as well as our moods.

For example, there are times when consumers are looking for a specific product and will be very focused on their activities to find the product they want. Any other product that is not relevant to their needs will be quickly filtered out or ignored completely.

At other times, however, consumers might not have a clear idea of what they are looking for; they may well be simply using the internet to find inspiration. With no clear need to be fulfilled, their mood plays a bigger role, and they are therefore far more susceptible to products that appeal to their mood.

So although the consumer was the same person in our scenario, their behaviour was very different due to their circumstances (context).

This scenario occurs all the time in online retail. Sometimes a potential customer will enter your site with a very specific need. It is often the case that the person will have done some Google research first, and will enter your site on a specific product page, having been directed there from Google. This is clearly a non-game context, but by gamifying the product page, you can turn the visit into a profitable customer action.

At other times, a visitor may stumble upon your online store while browsing. Using a gamified element on your front page to motivate a casual browser can result in a conversion that would otherwise have been a simple bounce.

In layman terms – by offering your customers, casual or otherwise, some variety of reward for interacting with your store, you provide them with the motivation to proceed and significantly increase the chances of conversion.

With the sheer amount of information at hand via Google, if a consumer has found their way to your online store, they are almost certainly interested in something that you offer.

However, the ubiquity of choice will come into play if you cannot provide them with a reason to stay in your store and buy from you.

A big appreciation to Rob Brooks for providing deep insights on the applicability of Gamification for eCommerce sales.

–

Editor’s note: e27 publishes relevant guest contributions from the community. Share your honest opinions and expert knowledge by submitting your content here.

Join our e27 Telegram group here, or our e27 contributor Facebook page here.

Image Credit: Zany Jadraque

This article was first published on October 16, 2019

The post How to use the psychology of gamification to grow e-commerce sales appeared first on e27.