Working with partners is probably one of the most efficient ways to grow and scale your business, but it can also be a source of frustration for founders. Relationships work well when things are running smoothly, but as soon as one of the people in charge becomes very opinionated, they can turn into a management battle.

This is a common situation, if only because scaling a business is all about managing people. Nevertheless, it is a concern we have to deal with on a regular basis with the entrepreneurs, founders, and top managers we coach.

However, there are some tips that can be used to make things go much smoother. All it takes is a bit of intention and patience with the implementation.

Take a moment to find out how people think

One tip we use systematically is to get founders and their managers to take a moment to find out how they think. I’m talking about personal mindsets and behaviours because these very personal traits have a huge impact on how we work and make decisions.

Some founders are quiet and don’t say much until they’ve come to a logical conclusion that works for them. Others are extremely directive and rarely share how they arrived at a conclusion. And some need to speak out loud to filter ideas and make up their minds.

This can obviously make communication a bit tricky, so it’s important to take a moment to observe everyone’s decision-making patterns. Doing a team profiling exercise also works well.

Learn to listen first and react later

The second leverage tip is that you (as the leader) need to learn to listen first and respond later.

Listening is key because the people around you want to be heard. Even if you decide differently in the end, listening will make them feel that you care — which is the most important part from a team dynamics perspective.

Also Read: How to embrace diversity, equity, and inclusion in DeFi and Web3

Once you’ve heard what your partners have to say, don’t rush to a decision. Tell the team that you’ll consider all their points and that you’ll take a moment to think and decide. Then tell them what you have decided and move on.

Establish clear roles and responsibilities

To do this, you need to make sure that the roles and responsibilities of the partners are set and clear. There needs to be a captain on board, whose role it is to make the decisions that will keep the ball rolling.

So, accept to be the leader and make the decisions. That’s your job!

Similarly, the other partners must have their own roles, with their own scope and responsibilities. Once these are defined, a RACI matrix is a good way to formalise them. As long as everyone knows who is responsible for what and who makes decisions, team communication tends to run much smoother.

Move on

Last tip: move on.

Your job as captain on board is to steer the boat in a certain direction – which, by the way, should be shared and clear to everyone. This means that while it is your job to consult and decide, it is also your job to keep moving forward with your own agenda.

If people can’t keep up with your pace, discuss the situation with them and find out why they can’t. If they keep blocking, ask why, ask for alternative options, but keep going. If they want to get their ideas through, they need to adapt to your pace, not the other way around.

Communication is key

To cut a long story short, if partners become a little too difficult to manage and make your role a difficult one, remember that communication plays a big part.

Communication can be verbal, but it can also be a matter of behavioural patterns along the way and a matter of role definition in the first place. Make the most of it!

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The technology industry in Singapore has shown resilience following a period of layoffs. Companies have focused on reimagining their operations, streamlining processes, and leveraging emerging technologies to enhance productivity and competitiveness.

The job market has also witnessed a resurgence in certain areas, with new opportunities arising in artificial intelligence, data analytics, cybersecurity, and cloud computing. 

Every year, at Aspire, we launch a salary guide to share what the technology industry is doing in terms of remuneration. It helps us support the businesses and candidates we work with to supply real data on what the industry is paying people in various roles mixed with candidates’ expectations.

Aspire’s Salary Guide looks at roles in technology, sales, marketing and advertising and shares a sliding scale of what someone might earn for various positions here in Singapore. Comparisons are then made with previous years’ reports to give further context.

The technology industry is reassessing its talent needs following layoffs

While the technology sector seems to be at a standstill while they focus on restructuring and readying themselves for the future of the industry, the sector will likely rebound with strength once it sets itself up for the evolution of the industry.

Also Read: Singaporean VC firm Integra Partners backs German cleantech startup CleanHub

Many of the salary brackets remained the same compared to last year, with the least amount of movement in any sector focused on by our salary guide.

With this in mind, companies have been looking at how else they can cut costs so they can continue to invest in talent and the future of their businesses. Some say they are best placed to look at alternative ways of working to reduce spending — such as full-time remote working to remove the major cost of office spaces — as they are built on a culture of innovation.

It’s undeniable the demand for technology products and services will continue to grow as businesses and individuals increasingly rely on digital solutions. The COVID-19 pandemic has accelerated the adoption of technology, leading to increased investments in areas such as remote work tools, e-commerce platforms, and cybersecurity.

The pure nature of the technology industry also fosters innovation and agility, allowing companies to quickly adapt to changing market dynamics. With these elements in mind, we may see technology companies start to bounce back by next year’s salary guide.

A significant increase for certain roles in technology sales

A small number of roles, such as pre-sales engineer and solutions architect, are seeing a significant increase (up to 25 per cent) compared to last year, while many of the other positions we looked at within tech sales remain the same.

The reason for these increases is due to corrections in the marketplace – bringing the salaries up to the same level as other roles with similar experience.

A positive impact on the startup world, large and small

While these larger technology companies are focused on restructuring and resetting themselves for the future, smaller, more agile startup companies will be able to benefit from this pause. We are seeing people from large companies be attracted by smaller growing businesses with the promise of a different kind of culture, the ability to get involved in many more aspects of running a business and the potential to receive pre-IPO share options that could pay off in the future.

Also Read: How G-P aims to redefine the EOR market through its global growth technology

What does the future hold for the tech industry?

While the technology sector’s salaries may be remaining relatively stable for the time being, it is important to recognise the industry’s resilience and potential for a rebound. The demand for technological innovation continues to drive investments and create new opportunities for both large and small companies.

As the industry recovers from recent challenges, it will seek to attract and retain top talent in order to remain competitive in the market. This competition for skilled professionals can lead to salary increases in the future.

With new startups emerging daily, advancements in emerging technologies, such as artificial intelligence, machine learning, and blockchain, are poised to create new avenues for growth. The technology sector’s ability to innovate, coupled with its adaptability and continued investment in research and development, positions it well for a strong future.

If you’d like to read Aspire’s Salary Guide reports in more detail, please download them here.

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Amidst the challenges of a tough funding climate, e27 is launching an exciting new article series called Angel’s Advocate to provide fresh perspectives on angel funding. In this exclusive series, we sit with prominent angels to hear their stories and strategies and gain unique insights about early-stage financing.

Sanjay Shivkumar started his first company while serving in the army and got into the tech space through a grant from Spring Singapore in 2010, building mobile apps for MNCs. In 2016, he joined Carousell through an acquisition and has since been active in angel investing in startups to give back, as others have done for him during his entrepreneurial journey. 

In this edition, Shivkumar shares his take on angel funding.

Edited excerpts:

How do you typically approach investing during a funding winter?

First, I try to assess whether a startup has the potential to raise enough funding or generate enough gross profits to sustain its operations for a significant period, typically 18-24 months. This is important because during a funding winter, it becomes more challenging for startups to secure funding, and I want to ensure they have a sufficient runway.

I also evaluate the startup’s business model. Companies that heavily prioritise growth without demonstrating early signs of monetisation may struggle to attract investors during a funding winter. I try to look for startups that have a clear path to monetisation or those that have proven to have already the ability to generate revenue.

The good thing for us is that I also feel that a funding winter helps angel investors open up the opportunities into a more potential deal flow where companies are now willing to take on more angel investors as the professionals/VCs become more selective and at a more realistic valuation.

What are your typical investment criteria, such as industry, stage, and geographic location?

It has evolved.

Initially, I primarily invested in companies raising their first angel round, targeting very early-stage startups. However, I have since shifted my focus to companies in the seed or pre-Series A stages. My approach was to reduce some risk as these companies tend to have more data points. And as previously mentioned, the seed and pre-series A companies are now more willing to let smaller angel investors come on board.

When it comes to industry preference, I prioritise companies operating in industries where I possess either some sort of domain knowledge, a genuine interest or companies which I feel are giving back to society in one way or another. By investing in familiar verticals, I hope I can better understand the broad strategy the company is taking.

Regarding geographic location, I prefer looking at the Asian markets, but the deal flow remains an obstacle to small-time investors like us, and thus I find myself investing mainly in Singapore-based startups. I believe that the next phase of significant growth or consolidation will likely emerge from this region, and we have several SG-based startups who have proven that they can scale to the region successfully.

Also Read: Good angels patiently fold many hands to find the perfect venture: Amit Parekh of Eureka AI

Can you describe your investment process from initial contact to closing a deal?

As an angel investor not engaged in investing full-time, my investment process typically involves relying on my networks or contacts who provide deal flows. A deal from an experienced investor is always preferred, and I’ve gotten into a few good companies through such introductions.

I normally meet the founders for a casual coffee chat to pitch their business and, more importantly, get to know them as a person. I would also do simple due diligence checks online, leveraging publicly available data. For example, B2C companies usually share their traffic in their pitch. I take note of those and use tools like Similarweb just to validate the rough numbers to see if it’s way off.

As a small ticket investor from a founder background, I understand the challenges and constraints faced by startups, so I try not to burden founders with excessive demands for information or an extensive list of questions.

For angel investors, we mainly struggle with access to deal flows. Unless you have plenty of time, I highly recommend angels to invest in funds (I participated in Orvel), where it will be much easier to get access to better deals and have more support than when an individual is investing alone in his/her personal capacity.

How do you evaluate a startup’s potential for growth and success?

I tend to focus on the founding team. I prefer teams with previous experience in starting companies, even if their previous ventures were unsuccessful. The knowledge gained from building something from the ground up can significantly contribute to their ability to navigate challenges and make better decisions.

This experience adds depth and resilience to the team, increasing the likelihood of success in their current venture. The key characteristic I am looking for is grit because I firmly believe it is teaming with grit that can go the distance, and we all know that running a business is a lifetime endeavour.

Secondly, I try to assess the industry in which the startup operates. While a strong team is essential, being in the right industry can greatly influence a startup’s growth potential. Additionally, I look for industries where consolidation is likely to occur, as this presents opportunities for startups to position themselves for growth and exit opportunities.

How important is the Founder’s experience and background when making investment decisions?

The founder’s experience and background are crucial to my investment decisions. I consider their experience building a business from scratch the most important factor. Starting a venture is a challenging endeavour, and firsthand experience navigating the complexities of running a business is invaluable.

When assessing founders, I specifically look for indications of grit and resilience. I look at their track record to understand the duration of their previous roles or startups. This information provides insights into their ability to persevere and sustain their commitment over the long term. I try to find Founders who demonstrate the determination and endurance required to run an entrepreneurial marathon.

Can you share your successful investment and what made that investment successful?

The best investment I’ve made for myself and my team is choosing the path of being a founder, going through the ups and downs (usually more downs, but those few ups will keep you happy) of an entrepreneurial journey and meeting good people who turned out to be great friends in my life.

In terms of angel investing, the most important aspect for me that has made some of my investments successful would be the quality of deals/companies I can access. By the way, I also have lost or will lose money on some of the investments I’ve made so far, so it is not like every investment will generate a return, and this is an important point for people looking to angel invest.

What are some common mistakes that startups make when pitching to angel investors?

I obviously cannot speak for all angel investors, but one common mistake I often encounter is an excessive focus on the product or technology. While the product and technology are important, allocating too much of the pitch, say 80 per cent or more, solely to these technical details can be overwhelming. Unless the startup operates in deep tech/science and is pitching to a specialised audience like scientists, this approach might not resonate with layman investors like us.

Instead, what I personally look for in a pitch is a clear articulation of the problem the startup aims to solve. I want to understand the significance and size of the problem and how the startup intends to address it directionally.

Also Read: It is important that founders see investors as their partners: Christina Teo of she1K

Another thing I try to look at is the founder’s motivation in starting the business. Did he personally face the problem, or was it more of identifying a gap in the marketplace? From my experience, Founders building products to solve their problems tend to be more innovative.

What are some myths about angel investment?

Myth: We are in it for high-risk, high-reward investments.

Fact: While we do have to take on more risk, and the bottom line is to be comfortable with losing our money, we do try to reduce that risk, and at the end of the day, I believe the biggest risk is putting your cash idle in a bank. In Singapore, we love putting our money into the property market, but I hope to see more of us angel investing as an alternative.

Myth: Angel investing is exclusively for tech startups.

Fact: While technology startups often attract angel investment, it is not solely for technology startups. People can be angel investors in traditional SMEs as well. SMEs power the economy of any country, and to me, technology startups are simply SMEs with the Internet as a platform.

Myth: Only wealthy individuals can be angel investors.

Fact: While some angel investors are high-net-worth individuals, many individuals could be mid-level managers or retirees seeking to leverage their experience or just contribute back in their own way.

How important is the alignment of values between the investor and the startup Founder?

The alignment of values between the investor and the startup Founder really depends. Some investors, like myself, adopt a hands-off approach, while others prefer a more hands-on role. Although I would also say most angels should play a more hands-off role.

Personally, as a hands-off investor, I still consider the alignment of values to be significant. I hesitate to invest in founders whose general life perspectives differ greatly from mine, although I cannot always find that out.

How do you manage risk when investing in startups? Are there any specific metrics or indicators you look for?

When managing risk while investing in startups, I always try to consider whether the startup is already generating revenue.

Startups that have already achieved revenue generation demonstrate some market validation and their ability to monetise their products or services as a critical skill set. This reduces the risk associated with startups solely reliant on funding without a clear path to revenue generation or simply pushing the hard work of monetisation down the line. Their revenue growth rate also provides initial insights into the scalability and sustainability of the business model and team.

Also Read: Do not treat the pitching process as a transaction, angels are not ATMs: Yi Ming Kau of Krux Asia

Can you share any advice for startups looking to raise funds from angel investors?

Hustle and build relationships: Continuously work on building relationships and expanding your network. Building strong relationships with investors and other founders can open doors to funding opportunities. Other founders can also really become good friends because they can be strong emotional support pillars, having gone through the same struggles that others might not understand.

Be clear about your ask: Clearly articulate your funding requirements and how the investment will be utilised. Be specific about the amount you seek and the milestones it will help you achieve. We will appreciate transparency and a well-defined ask.

Set realistic valuations: Avoid setting excessively high valuations, especially if your startup is not already generating significant revenues with high growth rates. Be realistic and align your valuation with market standards and your current growth stage. Coming from a founder background, I feel it is better to undervalue yourself in the first two rounds before you start to catch up to the valuations. The pressures of having your business metrics catch up to high valuations might not be worth it.

Focus on building your business: This is the most important advice. While raising funds is important, remember to prioritise building and scaling your business. Investors are attracted to startups demonstrating progress, strong execution, and tangible results. Spend significant time and effort on product development, customer acquisition, and building a solid foundation for growth.

Some founders focus too much on fund-raising and listening to investors too much. While ironic for me as an angel investor, I always tell the Founders to look after themselves and their teams first and foremost, and not the investor first.

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Indonesia-based fleet-tracking startup TransTRACK has secured US$2.1 million in a pre-Series A funding round.

Ortus Star, Cocoon Capital, and YCAB Ventures led the funding round. Goldbell Investment, NP Consulting, Damson Capital, and unnamed angel investors participated.

TransTRACK plans to use the fresh funds to expand operations to 100 cities in Indonesia and other Southeast Asian countries, including Malaysia, Singapore, Thailand, Cambodia, and Vietnam, providing an end-to-end supply chain solution for the business players in the region.

Also Read: How a Muslim female founder is making waves in Indonesia’s male-dominated logistics-tech sector

Founded by Anggia Meisesari and Aris Pujud Kurniawan in 2019, TransTrack offers a fleet management system, transportation management system, and truck appointment system for logistics companies that aim to optimise their operations. It also offers complete visibility across the supply chain in a single platform to increase customer engagement, new revenue streams, and margins to drive productivity, efficiency, and business growth.

“The funding will allow us to create even more value in the industry and enable us to strengthen our footing in the transportation and logistics industry as an end-to-end supply chain solution. We look forward to serving our customers better by providing a more comprehensive solution in maximising their move by optimising their fleets,” said Meisesari.

TransTRACK claims it has achieved 20 per cent monthly growth since its last fundraise. The company now covers over 34 cities in Indonesia, serves more than 600 clients in its portfolio, and has over 50,000 subscriptions across various industries ranging from logistics and public transportation to agriculture, mining, manufacturing, and government public services.

TransTRACK has initiated its operations in Malaysia and entered the Singapore market this year, primarily focusing on the rental and leasing business.

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Dear Pro member,

Grab is at it again!

The Singaporean tech giant has announced its plans to lay off another 1,000 employees — its biggest since the COVID-19 pandemic. According to CEO Anthony Tan, the new round of layoffs are a “painful but necessary step”.

In an email communication to the staff, Tan said the job cuts are not a “shortcut to profitability” but will enable the firm to adapt to the business environment and rapid emergence of AI. The firm is anyway on track to hit breakeven this year on group-adjusted EBITDA, he added.

Globally, more and more companies are laying off employees en masse to cut expenses in a bid to achieve profitability, which has become the most important factor these days. The current slowdown in the global economy and the resultant funding winter are key reasons companies are taking extreme steps. When the economy returns to normal, companies may think twice before adding new employees, as they now have advanced AI tools to automate some of their work. Let’s hope this will help avoid massive layoffs in the future.

This is the lead story of today’s Ecosystem Roundup.

There are also news stories about the quitting of Byju’s auditor, the FY22 financial results of StashAway and ShopBack, and more.

Happy reading.

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Grab shares fall after announcing plans to lay off 1,000 employees
This is Grab’s largest set of layoffs since the pandemic, surpassing its first round in 2020 which saw the company reduce its headcount by 5%, affecting about 360 employees.

Byju’s auditor Deloitte quits over long-delayed financial statements
According to various reports, three of Byju’s board members have reportedly stepped down as well; The Indian edutech company has been struggling to grow its business in recent months, and its valuation has fallen sharply.

ShopBack triples revenue in 2022, operating losses widen 72%
It posted a 3x increase in revenue to US$130.6M in the financial year ending March 31, 2022; The operating losses widen by 72% to US$43.2M in the same period compared to US$25.1M in the previous year.

Go-Ventures rebrands into Argor as it closes US$240M Fund II
Argor has already invested in B2B marketplaces, tech-enabled consumer businesses, SME digitisation platforms, environment tech, and embedded finance.

StashAway logs US$6.8M in revenue for 2022, losses land at US$20M
The revenue rose 13.5% y-o-y in 2022 to US$6.8M; The increase was relatively low compared to the 150% revenue growth it recorded from 2020 to 2021.

MAS proposes protocol to set standard for digital money usage
The protocol allows senders to specify conditions when making transfers in digital money; This includes factors such as how long the money is considered valid and on which platforms it can be used on.

Unacademy unit Graphy acquires SG-based community platform Scenes
Scenes helps creators monetise their followers by enabling them to build their own online platforms; Graphy helps educators sell online courses and launch their own websites and app.

ONEVIEW raises US$2.9M to improve bill payment experience
The investors are ADERA Global, Beyon Connect, and Cumulo9; The Singaporean startup’s digital post-box app enables users to easily access their documents and communications from multiple billers and senders within a single app.

Indonesian fleet-tracking startup TransTRACK bags US$2.1M funding
The investors include Ortus Star, Cocoon Capital, YCAB Ventures, and Goldbell Investment; TransTRACK plans to use the fresh funds to expand operations to 100 cities in Indonesia and other Southeast Asian countries.

Cocoon Capital backs construction planning simulation platform Frontline
Frontline enables construction companies, operators and contractors to quickly identify best-in-class construction plans with optimal activity sequencing and resource allocation.

Animoca subsidiary Anichess closes US$1.5M seed round
The investors include GameFi Ventures, The Operating Group, Koda Capital, and Bing Ventures; Anichess modernises and tokenises the game to take advantage of opportunities presented by Web3 technologies and communities.

Filipino B2B e-commerce startup Shoppable Business raises US$1.15M
The investors are Foxmont Capital and Seedstars International Ventures; Shoppable offers thousands of products from trusted brands, such as computer equipment, furniture, appliances, construction supplies, and food.

Singapore’s Integra Partners backs German cleantech startup CleanHub
CleanHub will use the fresh funds to eliminate plastic waste entering oceans and drive systemic change in the waste management industry.

Pine Venture backs children’s clothing resale platform Retykle
Retykle will use the funds to develop new resale-as-a-service tech and expand into new markets; Retykle is an online consignment store for buying and selling designer baby, children’s and maternity fashion, gear and toys.

Samsung Ventures invests in sleeptech firm Earable Neuroscience
The startup’s FRENZ Brainband wearable incorporates cutting-edge neuroscience technology into a consumer wearable to enhance sleep quality, improve focus, and promote relaxation.

Intudo Ventures, Arise back Indonesian influencer marketing startup Slice Group
Slice Group is a creator management solution that helps agencies and brands manage creator relationships; The startup plans to build embedded finance features for brands/agencies and content creators within the platform.

Retailetics’s smart cart offers personalised in-store experience while generating real-time customer insights
The retail automation startup’s AI-powered smart cart ezyCart offers personalised promotions, rewards, and in-cart self-check-out payments.

Eyeing a Slice of the fast-growing influencer economy in Indonesia
Slice is betting big on the next generation of entrepreneurs who use the audience they built through their content to launch their own businesses.

How affable.ai aims to dive deeper into GenAI with its new magic search feature
affable.ai recently introduced its new product Skye, a GenAI companion in influencer marketing; Learn how it aims to make a difference.

Fore Coffee sharpens business strategy to achieve profitability
The coffee chain startup owns 134 outlets in Greater Jakarta Area, Java, Sumatra, and Borneo; It intends to add around 75 new outlets and expand to mid-sized cities, aiming to operate a total of 200 outlets by 2023-end.

We are now in an era of cultivating organisational culture: Flash Group CEO
Startups should build investor confidence by having a business plan that goes beyond relying solely on fundraising but also generates revenues, says Komsan Lee.

Tech industry offers talent opportunities as salaries remain cautious
While the sector’s salaries may remain relatively stable, it is important to recognise the industry’s resilience and potential for a rebound.

Managing your business partners: 4 tips to make things work
One tip is to systematically get founders and their managers to take a moment to find out how they think; The second leverage tip is that you (as the leader) need to learn to listen first and respond later.

How ChatGPT, automation revolutionises ‘traditional’ industries
For businesses, especially with the threat of a global recession looming and labour shortages continuing to bite, time is money; By automating time-consuming, non-revenue-generating tasks in seconds, hospitality businesses can work more effectively.

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Financial inclusion remains a major issue in Southeast Asia (SEA) today, and a number of startups have risen up to the challenge of opening greater access to financial services for society–including Salmon.

It is a fintech company that aims to bring modern banking to underbanked consumers in SEA, starting with consumer lending in the Philippines. The company’s mission is to bridge the financial inclusion gap in the country and empower Filipinos financially.

“Salmon aims to leverage favourable dynamics in the Philippines market and our team’s technical and financial know-how to bridge the financial inclusion gap and bring consumer credit and enjoyable daily banking to 114 million Filipinos, empowering them to reach their personal and financial goals,” explains Raffy Montemayor, Co-Founder and Business Head in the Philippines at Salmon, in an email interview with e27.

The Philippines is a vast market with huge potential for growth. The country recorded 7.6 per cent GDP growth in 2022, and its population is young and digitally savvy, with over 50 per cent aged 24 or younger. However, there are only about six million unique credit card users across a population of 114 million people, which highlights the significant opportunity for Salmon to make an impact.

Salmon’s revenue model is based on expanding financial inclusion by starting with consumer lending to build a robust revenue-generating engine and eventually adding additional products such as deposits, payments, and other types of lending to leverage cross-selling opportunities and become a full-scale neobank.

Also Read: Will digital banks take off in the Philippines?

“If you compare this approach with other fintech [companies], particularly those that are struggling in Western Europe at the moment, you can see that an over-reliance on cheap capital and a focus on uncontrolled growth has resulted in complacency over companies’ ability to achieve sustainable profits in the longer term. Our model ensures that Salmon operates differently,” Montemayor says.

The company’s focus on healthy unit economics ensures the sustainable growth of the business, and its team’s experience in launching and scaling multi-million dollar financial businesses in other emerging markets makes them confident they can execute on their ambitious strategy.

“We are making consumer loans more accessible to quality borrowers, who have historically been overlooked by legacy banks. As a starting point, we have been leveraging partnerships with major local retailers and a physical presence in retail stores to build out our initial customer base. Our sales representatives use facial recognition and other proprietary technology to establish a new customer’s identity and assess their risk profile so that we can approve new loan applications in under 10 minutes and subsequent applications even quicker,” Montemayor explains.

“We are proud to highlight that 92 per cent of Salmon customers would recommend the company’s services to friends and family, according to our recent surveys.”

But running this business is not without challenges. One of them is the lack of credit history for a lot of Filipino consumers. However, the company’s approach to pool data from different sources and using its know-how and tech expertise to create robust credit scoring models is essential in addressing this challenge and creating a more vibrant and better functioning financial services sector for all.

Also Read: Digital bank licences: Why does everyone want a slice of the unbanked?

“We are committed to investing in the local tech talent and partnering with other industry players to address this challenge together in order to create a more vibrant and better functioning financial services sector for all.”

Maintaining a strong momentum

Started by co-founders Pavel Fedorov, George Chesakov, and Montemayor, Salmon’s team consists of experienced tech and finance professionals who collectively bring decades of experience in launching and scaling startups and fintech companies across different emerging markets.

In its first year since launching, Salmon has achieved several significant milestones, including launching its first point-of-sale lending product, establishing partnerships with leading local retailers, and creating its own proprietary service app.

The company also raised US$16 million in a Series A funding round from a list of investors that includes DisruptAD, the venture platform of ADQ, one of Abu Dhabi’s leading sovereign wealth funds, as well as a prominent European venture fund and a group of Filipino investors.

Looking ahead, Salmon aims to maintain its strong momentum, expanding partnerships with local retailers to bring its products to more people, working together with regulators and other industry players to expand financial inclusion, and reinvesting PHP10 million (US$180,000) in the local tech ecosystem. In five years’ time, the company aims to be on track to becoming a leading credit-led bank in Southeast Asia.

Salmon’s commitment to developing local tech talent in the Philippines, providing transparent and easy-to-understand financial products, and improving financial literacy among the general population makes it an exciting company to watch as it continues to make an impact in the region.

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Image Credit: Salmon

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Finhay is a licensed digital native investment platform that helps users to diversify their investment assets efficiently and seamlessly at their fingertips.

Founded in 2017, Finhay has secured US$30 million via five funding rounds from Openspace Ventures, VIG, Insignia Ventures Partners, TVS, Headline, TNBAura, and IVC. This includes a US$25 million Series B round in June 2022.

In a conversation with e27, Finhay Founder Huy Nghiem talked about how the company addresses multiple market challenges, including the current slowdown in the market.

Excerpts:

How has been the past 2-3 years for Finhay from a business growth perspective? How did it tide over COVID-19 and the economic slowdown?

During the COVID-19 period, our traction increased favourably. It makes sense that during the pandemic, people stayed home and had time to focus on learning or picking up investing. The desire for our online service increased, so our traction improved.

In late 2022, the market had a downturn due to several factors, including macros, domestic bank incidents, run on the funds, and more. Our traction was negatively impacted.

However, the business has used this time effectively to acquire a brokerage company as it needed restructuring. Finhay also spent more time and effort restructuring the brokerage firm.

How does the current global economic slowdown affect the business, and what steps has it taken to mitigate any negative impacts? Has Finhay noticed any changes in customer behaviour or demand, and how has it responded?

Yes, it has negatively impacted our business. However, we have found ways to use the time by improving our product and completing the restructuring of the brokerage firm. Instead of rushing for high growth, we are sustainably investing in product, team, culture, and compliance.

Also Read: Is the current Vietnamese fintech market as attractive as rumored?

The customer’s behaviour has also changed, and we have observed that our users have become more conservative in their investment approach. Their total balance was weighted towards fixed-income products.

How has your financial strategy changed in light of the current market conditions, and what measures have you taken to ensure long-term sustainability?

Our financial strategy has been shaped around current realities. In 2020 and 2021, we spent to achieve growth and budgeted higher for marketing and retention. However, those costs were cut in 2023 in line with market conditions and business strategies.

We also reprojected our human resource needs so we don’t over-hire. Our focus instead is to hire smart, hire correctly.

Have you adjusted your growth projections or other key performance indicators in light of the current economic climate?

We have closely watched the economic climate and taken a more conservative approach to 2023 — where growth is deprioritised versus other key business improvements. We believe this will set us in the best shape to capture the rebound and shifting consumer investor sentiments as and when they come.

Can you speak of any market opportunities that have emerged due to the economic downturn and how your company is capitalising on those opportunities?

We observe that our user’s behaviour changed from risk-taking to risk aversion. The most reflective action was the shift of their balance from equity investments to fixed-income investments.

By constantly monitoring the data behind these behaviours, we were able to leverage it to introduce additional fixed-income products on our platform. That has enabled us to capture additional money inflow and retain existing users.

How do you balance the need for short-term financial stability with the long-term goals of your business?

Balance is the right word. Short-term financial stability is as important as long-term goals. If we cannot meet the short-term financial needs, we can’t meet the long-term goal either.

However, we always keep a long eye on the future and operate against our future vision to be the smart investment platform for new and existing Vietnamese investors. We take the necessary decisions today to maximise our chance of delivering that.

Can you discuss Finhay’s plans for diversifying your revenue streams or expanding into new markets in light of the current economic climate?

We have already implemented additional revenue streams on our platform. Given that we are in the investment space, we saw a need for Margin Trading services from our existing users. Given the uncertain market, we looked at 20:80 rules and recognised that our top clients still need leverage. Margin Trading has recently launched on our platform, and the revenue has positively impacted our overall performance.

How has Finhay maintained a strong company culture and motivated your team during these challenging times?

Culture plays an important role in our organisation. We have been building our culture from day one and continue to do so. Our key values are ‘passion, innovation, and trustworthiness’. These values play out in everyone’s day-to-day roles. We recognise that if our employees do not live our brand, our efforts will be undermined. That’s why members are fully oriented with our values from the first day they join our team and are encouraged to consider how they fit into their function. Employees continue to emphasise them daily with their team members.

For example, because we are in financial services, we believe that consistency in everything we do will eventually lead to trustworthiness – which has to be earned.

Do we see an end to the raise-cash-burn-cash growth model and the emergence of the “make profits, sustain & grow” model?

We do see the “make profits, sustain and grow model” prevailing. This will continue to be our strategy from 2022.

What challenges does a late-stage startup face compared to an early-growth-stage startup? What learnings can early or growth-stage companies make from late-stage companies?

The bigger the company, the more compliance, procedures, and processes are in place. We see this as both an advantage and disadvantage for late-stage companies.

The advantages are that the company becomes solid and robust in the eyes of the market due to having procedures and compliance checks. However, our goal has been to implement these from the outset.

Also Read: ‘Develop a wartime mindset during global crisis like this’: Xendit CEO Moses Lo

The disadvantages are that things will get slower if not implemented effectively. We work hard to ensure they are in place to enable consistency and not create clogs.

We believe that starting a business with a clear culture in mind is a vital learning point for early or growth-stage companies.

How many rounds of funding has Finhay raised so far? Can you share the details of each round? How has fundraising and business matching changed for you in the last 2-3 years?

We have undergone five funding rounds, but unfortunately, the details can’t be shared. However, we have raised US$30 million in terms of investment size.

In the last two to three years, we have seen a shift in the focus of our investors from high growth to revenue. I see this as crucial, too, given that the market will remain uncertain in the next few quarters.

How is the mindset and cultural shift happening internally since we are in a high-interest rate environment and funding isn’t going to be as easy as before?

Fortunately, the high-interest rate plays a favourable role internally due to our fixed income investment on our balance sheet. The revenue has also improved. This helps to shift our focus and story internally from growth to revenue. Our team members are aware of the importance of a revenue intelligence mindset.

Also, due to the high-interest rate environment, the team is made aware, with total transparency, that cost-cutting is in place, spending reductions will be required, and there is an expectation of revenue increase. It’s not always easy at first, but it is for long-term betterment and accepted as the means to achieve our shared vision of investments in Vietnam.

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Jesse Bouman and Nesha Aurea Hanzdima, both creators and entrepreneurs, believe the future of entrepreneurship starts with content creation. Globally, more and more creators are using the audience they built through content to launch their own businesses.

“However, in Indonesia, it’s far more difficult for most content creators to achieve this dream of starting own businesses,” says Bouman. “We felt that if we could automate this process, we’d unlock money for more creators to go full-time and build the businesses of their dreams.”

This led the duo to start Slice Group.

Slice was launched in January 2022 by Bouman (CEO) and Hanzdima (COO). Bouman was previously Head of Technology and Innovation at Mindshare, a global media agency, while Hanzdima is a serial entrepreneur and has built more than six companies since graduation.

A creator management solution, Slice helps agencies and brands manage creator relationships. Its integrated creator relationship management (CRM) platform simplifies reporting, payments, and relationships for sponsored brand content.

Also Read: Intudo Ventures, Arise back Indonesian influencer marketing startup Slice Group

“In layman’s terms, we help brands and agencies aggregate influencer performance data for campaign reporting and crunch the data so they can determine which creators to work with in the long term,” he elaborates. “We’re able to do this because our content creators sign up to Slice and connect their social media accounts so they can share their reporting data directly with us. All our data is verified, and we eliminate the manual screenshots and PowerPoints that plague the industry.”

In turn, Slice offers creators different tools to help them grow. It currently provides dynamic media kits for creators to share their rate cards, analytics, and audience demographics with brands and agencies without constantly updating a PDF like they typically do now.

A SaaS tool, Slice charges a monthly subscription. As the company expands its product line, it will include transactional revenue with its financial products.

The startup has worked with various agencies, brands, and startups, including Shopee, Nivea, Koinworks, Populix, Erha, and OMD/PHD.

While Slice plans to expand to new countries in Southeast Asia in the future, the current focus remains Indonesia.

“Indonesia is the largest market in the region, and we are firm believers in the economic growth opportunities the country presents over the next few decades,” he adds. “Secondly, Indonesians are uniquely positioned for success in the growing creator economy. The country has one of the world’s highest social media usage rates. They love creating and consuming content. Additionally, it’s a very entrepreneurial country.”

There are about 62 million SMEs, and in his opinion, the next generation of Indonesian entrepreneurs will start by simply creating content on their mobile phones.

Bouman also informs that Slice is now working on embedded finance features. “While Indonesia and SEA are quickly digitising their financial services, everything is still a one-size fits all model. The content creators and agencies that we work with have specific financial needs. Integrated financing and payments in our platform are areas where we feel we can expedite the flow of money and boost the businesses of both our agencies and content creators. ”

Also Read: How can influencer marketing help the travel industry in a post-pandemic world

On Wednesday, the startup announced the completion of a US$645,000 seed round of financing led by Intudo Ventures and Arise. “I’m a firm believer in product-led growth. We’re investing heavily in our engineering and design teams. We’ve brought all our development and design in-house. We focus on building an intuitive and impactful product while iterating quickly based on customer feedback,” he explains.

Globally, social media users touched 4.6 billion, shaping a US$100-billion creator economy. This growing number, coupled with the novel ways of starting a business globally, presents a massive opportunity for Slice to build a billion-dollar business. And Bouman and Hanzdima have only made baby steps, and they have a long way to go.

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Singapore-based construction planning simulation and optimisation startup Frontline Industrial Software has raised US$700,000 in a seed funding round led by Cocoon Capital.

Frontline, founded by Luis Martinez and Ruiqi Ding, enables construction companies, operators and contractors to quickly identify best-in-class construction plans with optimal activity sequencing and resource allocation. The software uses Artificial Intelligence to identify the most efficient and cost-effective construction plans for complex infrastructure, civil, energy, industrial and residential projects.

With Frontline, construction teams can simulate thousands of options and find the most cost and time-effective solutions. According to the founders, this is a significant improvement compared to existing construction planning tools that offer limited options for optimisation.

“Frontline’s ‘plug-and-play’ solution seamlessly integrates into the existing work processes of construction companies and uses existing data to deliver insights that were simply not available before,” said Martinez.

Also Read: Sirclo banks US$10.5M to expand in Indonesia

Frontline’s software is already used by international construction companies in the infrastructure, energy and residential sectors. Customers have seen project timeline savings of up to three months and a six per cent cost reduction, which is significant in a slim-margin business.

“With the estimated US$26 billion global construction technology market by 2027 and the widespread adoption of digital productivity solutions by over 80 per cent of construction companies, a substantial market gap awaits smart software that optimises project execution”, said Will Klippgen, Managing Partner of Cocoon Capital.

A survey by KPMG found that 91 per cent of construction industry executives believe digital transformation is important for their business, while only 19 per cent have a digital strategy in place. Frontline’s technology addresses the productivity challenges faced by the industry, making it a timely and extremely cost-efficient solution.

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Hong Kong-based children’s clothing resale platform Retykle has closed a new round of pre-Series A funding, bringing its total funding to US$2.2 million.

The latest round was led by Singapore’s early to-growth stage VC firm Pine Venture Partners, with participation from undisclosed angels.

The company plans to utilise the new funds to build a senior leadership team, develop new resale-as-a-service technology, and expand into new markets.  

Founded in 2016 by Sarah Garner, Retykle is an online consignment store for buying and selling designer baby, children’s and maternity fashion, gear and toys. Its mission is to make trading high-quality pre-loved items as easy and convenient as buying new ones.

Also Read: Why we need to stop calling them ‘mumpreneurs’

The US$400-billion global childrenswear market presents a substantial opportunity for resale. In 2022 the global resale market grew by 28 per cent and is expected to double in size by 2027, reaching US$350 billion. Resale outpaces traditional retail threefold and will account for 10 per cent of the global fashion market by 2024. Resale is revolutionising traditional retail and fundamentally changing consumer purchasing habits as they seek greater value and less environmental impact.

“The fashion industry is ripe for disruption, and advancing circular consumption is a clear win for sustainability and for all players in the fashion industry. Retykle provides a much-needed service for mothers of children while reducing our carbon footprint, and that is something fully aligned with Pine Venture Partners’ investment philosophy,” says Hyuk-tae Kwon, Co-Founder and CEO at Pine Venture Partners.

Retykle allows buyers to browse thousands of used and new past-season items from over 2,000 leading children’s designer clothing brands, saving 50-90 per cent off original retail prices.

Since its launch, Retykle has recirculated over 150,000 items, with tens of thousands of parents joining the platform to build a sharing economy online, saving temporary-use clothing from being sent to landfill.

“With only two per cent of VC capital directed to female-led companies, we are grateful to have the backing of Pine Ventures, who see the blue ocean of opportunity in circular consumption”, says Garner.

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Image credit: Retykle

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