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

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

Here are the learnings:

Utilise existing language models

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

Identify your differentiators

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

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

Save costs

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

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

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

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

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

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

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

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

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

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

Why Big Data and AI are driving cloud computing demand

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

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

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

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

“Unparalleled opportunity” in digital assets mining

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

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

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

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

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

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

Maximising energy efficiency in win-win scenarios

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

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

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

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This content was first published by The Human & Machine.

Image Credit: The Human & Machine

This article was first published on November 28, 2022

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

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

Regulatory hurdles

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

Compliance variability

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

Customer trust and data privacy

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

Consumer education

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

Currency and exchange rate risk

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

Competition from established players

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

Payment preference variability

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

Infrastructure and connectivity

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

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

Political and economic instability

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

Partnerships and local relationships

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

Language and cultural barriers

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

Access to rural markets

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

Financial inclusion

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

Currency regulations

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

Customer support and localisation

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

Conclusion

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

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

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

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

Excerpts:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Image Credit: Antler.

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

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

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

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

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

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

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

GAMEE recently raised funding from TON Ventures.

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

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

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

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Image Credit: GAMEE.

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

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

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

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

The current state of traditional businesses in Singapore 

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

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

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

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

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

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

Why fintech? 

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

Key fintech solutions for traditional businesses 

Customer payments 

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

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

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

Spend management 

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

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

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

Treasury management 

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

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

Benefits of implementing fintech improvements 

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

Enhanced operational efficiency 

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

Cost savings 

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

Improved customer experience 

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

Better financial management 

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

Competitive advantage 

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

Conclusion 

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

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

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Legal tech has evolved in recent years, brought about by the development of more AI tools for automating and optimising various legal tasks, particularly contract analysis, document review, and, in some cases, case prediction.

But at the heart of every AI-driven solution lies the quality and accuracy of the data used to train machine learning models.  And here lies the rub: Legal tech companies often deal with unstructured documents, where the essential data points do not adhere to a predefined data model. As such, data parsing is a critical component of any legal tech’s earlier core operations.

Data parsing encompasses a range of sub-processes, including extraction, organisation, and structuring of legal data from diverse sources such as contracts, case law, and regulatory documents. By parsing data, legal tech companies can improve the efficiency and effectiveness of their machine-learning models, particularly when dealing with sparse, noisy, or variable-quality data. This enhances the signal-to-noise ratio, improving the overall quality of insights derived from the data points.

However, developing an automated data parsing system from scratch can be prohibitively expensive, time-consuming, and complex, especially for startups that have not yet achieved product-market fit. Investing in such a system prematurely can drain valuable resources and divert attention away from more critical areas of tech development.

Also Read: Legal tech platform INTELLLEX raises US$2.1M funding round led by Quest Ventures

Offshoring data parsing offers an attractive alternative that allows startups to progress towards their next milestones without heavy upfront investment in time and cost. Here’s how offshoring can benefit your startup:

• Domain knowledge incorporation: Unlike building an automated system, it is easy for your domain experts to incorporate their knowledge into the data parsing processes, building a model for more informed feature engineering decisions should you pursue automation later down the road. 
• Gradual scaling: Offshoring enables startups to start with a small piece of the data parsing process and gradually scale up as business needs and market demands evolve. This incremental approach allows for flexibility and adaptability, ensuring that resources are allocated efficiently.
• Lower to no setup cost: The initial setup costs for offshoring are typically minimal, often limited to security deposits that offshoring companies require before commencing services. These deposits are usually equivalent to one to two months of service fees, making offshoring a cost-effective option for startups with limited resources.
• Ease of protocol changes: Offshore labor offers greater flexibility in adapting to changing protocols compared to automated systems. Manual processes can be adjusted more easily to accommodate evolving requirements or new data sources, providing startups with agility in responding to market dynamics.
• Cost efficiency: Offshore labour tends to be significantly cheaper than hiring onshore resources, allowing startups to grow their teams cost-effectively. This cost efficiency enables startups to allocate resources judiciously and invest in areas that drive value and innovation.

Also Read: Pay transparency, training, AI: Understanding HR’s emerging legal risks

Overall, while machine learning models may have demonstrated early impressive capabilities in learning directly from unstructured data, data parsing in the legal tech industry remains essential in preparing the data for machine learning tasks. However, automating data parsing systems may make more financial sense in larger, more mature organisations; for early-stage startups grappling with the pressure of efficiently allocating working capital, this approach may not be as effective.

Offshoring your data parsing work can serve as your startup’s secret weapon, particularly in the early stages of your tech development. By partnering with offshoring companies such as FullSuite, you gain access to resources and benefit from their oversight of protocol and process development, alleviating the burden on your lean team and allowing you to focus on what matters most.

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This article was first published on March 5, 2024

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The Echelon X fireside chat titled ‘USD493M Raised, 35 Markets Conquered, 1 Growth Story: The Journey of bolttech’ offered an in-depth look into the remarkable growth journey of bolttech, a leading digital insurance and protection company.

With nearly half a billion USD raised and a presence in 35 markets, bolttech’s story is one of rapid expansion, unique innovation, and strategic foresight.

Moderated by Catherine Shu, Director of Media and Content at The PR Group, the fireside chat featured Rob Schimek, Group CEO of bolttech. Schimek shared insights into the company’s extraordinary growth trajectory, highlighting the key factors that have contributed to its success.

bolttech’s journey is defined by strategic moves and innovation in digital insurance. Schimek discussed their market expansion approach, emphasising the need to understand local dynamics and tailor products to customer needs. He highlighted their commitment to technology, enabling seamless, personalised insurance solutions.

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Every year, many startups fail for multiple reasons. The most significant reason is the need for a growth strategy. According to research, 42 per cent of startups fail because there is no market for their solutions, while 29 per cent run out of cash.

Both a lack of market and cash are caused by strategic flaws. Every B2B startup needs a growth strategy to address both issues by ensuring product-market fit and revenue streams.

So, what is a growth strategy?

A startup’s growth strategy encompasses everything from idea generation to project wire-framing, identifying revenue streams, and more.

Getting the growth strategy right can help your B2B startups generate more revenue and profits. This article focuses on some of the best growth strategies B2B startups can use for their business. 

First, let’s understand why you need a growth strategy.

B2B growth strategy: Why do you need it?

B2B is different from D2C in terms of customers. B2B customers expect omni-channel engagement with on-demand solutions from their vendors. 

According to McKinsey, 78 per cent of top-tier B2B customers want performance guarantees during the sale. Similarly, there are four other key attributes that every B2B customer seeks out,

• Product availability
• Omni-channel engagement features
• Real-time customer service
• Consistent customer experience

What’s changed over the years is how tech-savvy modern B2B customers are. As a startup, you must offer on-demand solutions across channels. Here are some key strategies to achieve this and improve your B2B startup growth. 

Top B2B startup growth strategies 

An essential aspect of B2B growth is undistracted effort. You need to narrow your focus on specific growth pillars and go all in. 

However, the question that most startups face is where to focus. Here are some of the best strategies you can focus on to ensure B2B startup growth.

Shift to outbound

Most startups focus on inbound leads, leaving behind a more extensive audience section. The real growth opportunity lies in capturing the audience outside your market.

Yes! This may seem odd, but 95 per cent of the buyers who aren’t looking to make a purchase right now are your most significant opportunity! Every business has a specific bottleneck, but CEOs and CTOs often are unaware of the problem.

As a B2B startup, you need to tap into this audience. Create campaigns highlighting specific problems in these businesses’ current offerings to create a long-term cycle of leads. When you target a specific audience looking for solutions, they know the competition.

Also Read: The power of reverse marketing: How a bad review can drive massive exposure

So they will compare your services and make decisions, which leads to less lead generation. However, if you can highlight existing issues in businesses that are not looking for your services in the first place, you’ve hit the jackpot!

Take, for example, Salesforce’s “No Software” campaign. The SaaS company boldly opposed CRMs with on-premise infrastructure. To amplify the campaign, Salesforce had employees protest the streets with signboards. 

Build resource banks

Conventional B2B demand generation strategies for startups have been to acquire a net new pipeline. This strategy focuses more on the net value of new sales opportunities rather than taking a holistic approach.

Break away from this conventional approach and leverage a modern B2B growth strategy for your startups. You can build a resource bank that caters to businesses’ needs across the funnel. This growth strategy does not focus solely on new sales opportunities.

Instead, it helps attract, nurture, and convert more leads through resources across interaction points. For example, you can create content on the bottlenecks and issues of specific businesses. 

Similarly, you can provide its solutions, pitch your services, and add critical comparisons. This wholesome resource makes you the go-to brand for anything niche-specific.

Have a real omni-channel presence

Being on all digital channels is now a norm for any B2B startup. The reason is simple: Your target audience is present on multiple channels, so you need to be there.

However, it’s not just about being present in a snooze mode. Yes, you need to prioritise real connections and customer engagement across channels.

Executing bots to communicate on your behalf on such platforms can be off-putting. Instead, have your team present on omni-channel, communicating, engaging, and nurturing leads.

Make your customers self-dependent

This B2B growth strategy can confuse many startups. Because entrepreneurs may argue that if you are making them independent why will they engage with the startup?

So, the answer is self-service portals. You don’t need to make them self-reliant on the service side but on the support side. This is also important on the sales side. If you can have resources that provide answers B2B customers are looking for without interacting with your sales team, “It’s a win-win.”

Also Read: AI, personalisation, and 5 marketing activities you should be doing

According to Gartner, 72 per cent of B2B buyers want to buy without sales team interactions. This shows how making the customers self-reliant early in your interaction journey can impact conversions.

Obsess over your customers 

Obsessing your audience correctly can be a startup’s best B2B growth strategy. This means spending time researching each aspect of your audience. From profiling, account-based research, communications, and one-on-one sessions, customer obsession has no limit.

Diversifying your efforts is key to B2B growth. Have a team of researchers, data analysts, and salespeople work continuously on understanding the audience.

Knowing the target business well helps you cater to custom solutions and become their go-to partner. 

Offer on-demand flexibility

As you know by now, a key demand by B2B businesses is for on-demand services and solutions.

Most businesses need help dealing with the changing customer demand. So, providing on-demand flexibility regarding tech, infrastructure, workforce, and other resources is crucial. It will help your startup create long-term partnerships and a customer base.

Hear what your customer says

Startups can narrowly focus on customers if they spend enough time listening rather than talking. One key B2B growth strategy is to capture the Voice of Customers (VoC).

It is a systematic approach in which you hear your customers on each aspect of the problem, from how they feel about your product or services to the improvements they need. 

To ensure trust, you must be open to criticism and make quick changes. This includes ensuring security and privacy in your systems. Maintaining user data privacy during sales communication and customer services also helps build trust.

All of your security efforts must be conveyed to customers across channels. You must also get feedback on security aspects from your customers and implement quick measures. This allows your startup to gain more trust and improve conversions. 

Get your whiteboard ready

The B2B space is getting extremely crowded. With many startups building solutions catering to customers’ varying needs, you need a strategic advantage. Using these B2B growth strategies, you can gain a competitive advantage in a saturated market.

Most importantly, these B2B growth strategies allow you to tap into a broader market. Plus, you will have a holistic approach to engaging with the target customers and ensuring better lead conversions. 

However, you must analyse your target audience, market, competitors, and product before implementing the above B2B growth strategies. You should also conduct a comprehensive audit of your campaigns to ensure result-oriented efforts.

A best practice for the above strategy is to conduct A/B testing. It will help you understand the impact and fine-tune strategic efforts. 

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