Singapore-based social music creation platform BandLab has raised US$25 million in a Series B1 financing round at US$425 million post-money valuation.

Existing investor Cercano Management (formerly Vulcan Capital, founded by Microsoft Co-Founder Paul Allen) led the round that also saw participation from Prosus Ventures.

BandLab will use this new funding to grow its workforce and double down on emerging creator campaigns. It will also channel additional resources towards supporting services, such as its music education platform BandLab for Education and other similar initiatives.

The new round comes more than a year after the platform announced the closing of its Series B financing round of US$65 million.

Also Read: Vulcan Capital leads social music platform BandLab’s US$53M Series B round

Founded in 2015, BandLab empowers aspiring music creators worldwide to create, collaborate, and share their music online with an emphasis on emerging artist discovery, community, and fandom. Its features include a cross-platform digital audio workstation Studio, royalty-free sample and loops service Sounds, and AI music generator tool SongStarter. The company’s ecosystem includes leading professional-level digital audio workstation Cakewalk, artist services platform ReverbNation, and recently acquired beat marketplace Airbit.

The platform has 60 million registered users.

BandLab CEO and Co-Founder Meng Ru Kuok said: “Not only are we democratising music creation on a global scale, we are fostering a community where everyone can express themselves through music, irrespective of their resources or technical prowess. With this investment, we step forward into a future where every smartphone owner has the potential to be a unique music artist who is protected, empowered, and heard.”

In February this year, BandLab announced the acquisition of beat marketplace Airbit for an undisclosed sum. In 2017, it bought London-based music live-streaming service Chew.tv.

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Echelon Asia Summit 2023 brings together APAC’s leading startups, corporates, policymakers, industry leaders, and investors to Singapore this June 14-15. Learn more and get tickets here. Echelon also features the TOP100 stage, where startups can pitch to 5000+ delegates, among other benefits like connecting with investors, visibility through the platform, and other prizes. Join TOP100 here.

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The story of KKday is one of grit and determination. The travel experiences platform, launched in 2014, navigated many challenges- the most significant being the COVID-19 pandemic- to become a key player not only in Taiwan but also Asia. The company stood out when most travel-tech companies either shut down or underwent a massive scale-down.

Today, KKday — backed by Cool Japan Fund, National Development Fund, and Monk’s Hill Ventures — has millions of users and provides over 300,000 unique experiences in 550+ cities and 92 countries.

The firm is now going through some new challenges, but with the solid foundation it has laid over the years and the experiences it has gained by tiding over the bottlenecks thrown by the pandemic, the company is now confident of taking its next big leap.

In this interview, KKday Founder and CEO Ming Chen shares his experiences traversing the tumultuous period and how the firm addresses the new challenges brought by the global economic slowdown.

Excerpts

How has been the past two to three years for the company from a business growth perspective?

KKday grew fast before COVID-19 as we focused on further digitalising the local experience supply chain, user acquisition, product innovation, expanding to new markets, and M&A opportunities.

Our biggest challenge before the pandemic was delivering stable yet fast growth while taking advantage of market conditions in a competitive market. The business was also anchored on international outbound travel.

The pandemic essentially wiped out any cross-border travel — business or leisure. We were significantly impacted as the travel industry faced unprecedented headwinds from travel controls globally. Our revenues plunged.

By March 2020, many of our numbers were negative as customers cancelled bookings. At the same time, there was a lot of uncertainty and fluctuations in domestic and international travel, with some of our key markets, like Hong Kong and South Korea, experiencing multiple waves of infections.

Lastly, our suppliers, mainly small and independent travel operators and activity providers, got hit hard. For most suppliers, total revenues were significantly down compared to pre-COVID-19.

In a time when real-time inventory was critical, given increased safety measures and crowd limitations during COVID-19, suppliers were still using outdated tools and Excel sheets. Suppliers were struggling to keep up.

At the onset of COVID-19, we cut our marketing expenses by 90 per cent. Senior management either forewent salaries or took significant pay cuts to weather COVID-19. For our suppliers, we quickly offered and renegotiated better payment terms. While we expected short-term loss, it was more important for long-term relationships with the suppliers.

On the business side, we swiftly redesigned our organisational structure — a key change was combining our marketing and merchant business development teams to answer a key question: What is the right product for our customers now?

The team came together with a plan of attack 1) Rezio product development for our suppliers to reduce operational costs and inefficiencies, 2) pivot to domestic travel as markets like Taiwan and Hong Kong began reopening towards the middle of last year, and 3) souvenirs and virtual travel experiences to recreate an international travel experience as much as possible.

As a result, we saw our business in markets that have managed COVID-19 better achieve near pre-COVID levels solely on domestic travel products alone. As domestic travel bounced back, we closed our Series C+ round in July 2022.

Also Read: How KKday saved for a rainy day when many travel startups called it a day during COVID-19

Post-pandemic, our burn rate has reduced by over 50 per cent (actually lower than pre-COVID-19), and we are almost recovered to pre-COVID levels during peak seasons in 2020. Unit economics per new user materially improved due to lower user acquisition costs. Our revenue growth increased 10x during the pandemic from the staycation and souvenir segments.

Rezio — a booking, payment, and customer management platform for suppliers in the experience sector — reduced the revenue haemorrhaging many of our suppliers were experiencing. In just six months from the release, over 500 providers adopted the platform from our initial rollout in March 2020.

We pivoted all products from cross-border to domestic customers, focusing on high-margin products. This included staycation packages, local island hopping tours, workshops, and glamping experiences. We quickly saw an uptick in local users buying our tours and experiences as certain markets opened up.

At the start of this year, we saw record high 2022 revenues globally as borders reopened. Our revenues grew by 100 per cent y-o-y, bolstered by doubling down on domestic and international travel and investing in innovation and digital transformation of the APAC tourism industry. GMV in 2022 surpassed pre-COVID-19 levels driven by increased bookings and domestic and international travel recovery.

Hong Kong, Singapore, and Korean markets have fully recovered and have exceeded their pre-COVID-19 revenues. Our international business has fully recovered and exceeds pre-COVID-19 levels. We continue to see steady growth in the domestic industry.

In the future, we continue to focus on sustainable and profitable growth and positive unit economics. We also remain disciplined and monitor metrics, including reducing customer acquisition cost (CAC) spending.

How is the mindset and cultural shift happening internally since we are in a high-interest-rate environment and funding will take more work than before?

The cost of capital has risen significantly in the current environment, underscoring the importance of developing a sustainable and profitable business model.

Unlike succumbing to a growth-at-all-costs mindset driven by readily available capital, we have prioritised sustainable growth and exercised discipline in our sales and marketing strategies. This includes how we look at user acquisition, our strategy for discount subsidies, and targeting the suitable user base.

KKday’s previous fundraising rounds have brought substantial business improvements, and we are well-positioned for continued growth. This ranges from attracting industry talents to strategic acquisitions such as the prominent Japanese local travel experience OTA, Activity Japan.

Additionally, we have dedicated resources to developing our in-house proprietary SaaS booking system Rezio. This has helped us strengthen our resilience amid the challenges posed by the pandemic. We have increased operational efficiency, deepened our footprint, and increased supplier loyalty.

Investor expectations have evolved beyond a singular focus on topline scale and growth. Sustainable growth that can lead to profitable growth has taken centre stage. So today, we must drive growth, scale, and profits.

Have you noticed any changes in customer behaviour or demand, and how have you responded?

International and cross-border travel is back in full force as borders reopen. We saw approximately a 25 per cent increase in searches on the website q-o-q and over 100 per cent in bookings on our platform y-o-y for domestic and international experiences. The platform’s travel experiences have grown by 100 per cent to 300,000. We also increased the number of merchants to 14,000 (30 per cent increase y-o-y) to support the demand.

The rise of digital-first travellers is driving the growth of digitalisation across the APAC tourism industry. As a result, we have seen a more than 110 per cent increase in merchant adoption of Rezio. We also focus on onboarding more suppliers to Rezio to meet the demand.

More travellers are seeking hyperlocal experiences. Hyperlocal travel experiences are in demand as travellers seek unique experiences as borders reopen. We have created KKday’s owned signature tours and are rolling them out to our markets. We’ve seen an uptick in bookings for KKday’s owned signature tours in markets such as Japan, Taiwan, and Korea.

New technology will focus on providing travellers with seamless experiences. We’ve seen 100 per cent more bookings on our platform y-o-y as more travellers shift to booking experiences online. We are also working with our merchants to integrate tech-enabled solutions for travellers, including utilising QR codes and mobile check-ins. For example, KKday partnered with Nami Island, a popular attraction in South Korea with millions of annual visitors, to integrate its software Rezio with the attraction’s hardware (e.g., e-gate, kiosk, POS system).

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

At KKday, operational efficiency and sustainability have been fundamental principles. We prioritise unit economics and regularly ask ourselves important questions to ensure we are on the right track. We often ask ourselves: what is the value we provide users? Are we targeting the right users? How long does it take to start generating profits from each user? Are we retaining these users? Can we increase the contribution margins on each order for each user? And we’ll review this market by market.

As an internet-based business, how we acquire users and sales & marketing efficiency is super important.

We understand the importance of finding ways to operate more efficiently and sustainably while still delivering high-quality experiences to our customers. We continuously seek ways to innovate and optimise our operations, leveraging our strengths in technology, data analytics, and customer insights to drive improvements across our business. By staying true to our values and focusing on long-term sustainability, we are confident that we can continue to deliver value to our customers and partners for years to come.

Can you discuss any cost-cutting measures you’ve implemented and how those measures have impacted your business operations?

During COVID-19, we implemented a few cost-cutting measures. Today, our primary focus is finding more cost-efficient ways of doing business in support of our dedicated business development and internal analysis teams; we have successfully reduced our advertising expenses by over 50 per cent, all while maintaining and even improving our level of exposure.

This strategic approach has enabled us to retain our existing user base and increase our gross merchandise volume (GMV).

Have you adjusted your growth projections or other key performance indicators?

We are currently exceeding our growth projections. Our year-to-date performance is higher than previously projected. We will continue to look for potential strategic partnerships that may support the business, such as our recent acquisition of Activity Japan to increase our Japan inventory. We will continue to work with suppliers and expand our supplier base to deepen our footprint in our respective markets.

Also Read: Travel experiences, activities platform KKday extends Series C round to US$95M for domestic expansion

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

KKday understands the importance of balancing short-term financial stability with the business’s long-term goals. We believe that short-term financial stability is necessary for the company’s survival, but it should not come at the expense of long-term goals.

To achieve this balance, KKday has implemented several strategies. Firstly, we have diversified our product offerings and expanded our geographical reach across 90+ countries. This allows us to tap into multiple revenue streams and hedge against market volatility.

Secondly, we have shifted to a more cost-efficient way of doing business, especially in terms of marketing efficiency, proven by consecutive months of high returns on ad spend (ROAS) and positive unit economics.

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

There is significant untapped potential in the travel experience industry’s total addressable market. The in-destination travel spends addressable market is over US$100 billion in Asia Pacific alone. Yet, only 20 per cent of tourism in Asia is digitalised.

At KKday, we recognise our strengths in operating in the travel experience sector throughout the APAC region. With a team of industry experts and deep market knowledge, we are well-equipped to operate efficiently and effectively in this industry.

We remain focused on our core competencies and aim to expand our market share in areas with a competitive advantage. By dedicating our resources to the field that we excel in, we can continue to provide our customers with the highest quality travel experiences and services, ultimately driving growth and profitability for our business.

How have you maintained a strong company culture and motivated your team during these challenging times?

We remain committed to maintaining an open, transparent culture with entrepreneurial DNA. In a post-pandemic era, we have also embraced hybrid work arrangements, fostering a flexible work environment.

At the same time, we have regular town halls and all-hands meetings to keep our team engaged and foster a sense of belonging and community. Our flat organisational structure supports open communication and dialogue among teams, enabling us to drive innovation.

What challenges does a late-stage startup face compared to an early-growth-stage startup?

As KKday expands, a key challenge is managing a rapidly growing workforce. This challenge becomes even more complex as we operate in a multi-market international business with 12 markets across APAC and nearly 1,000 people. Given we take a localised approach to our markets, how to find and to retain the right talent requires a balance that requires intention, concerted effort, and overcommunication. We understand the importance of striking this balance while preserving our entrepreneurial culture.

Another challenge is understanding and exceeding investor expectations in our growth stage and this climate. There are more dimensions, and expectations have evolved beyond mere top-line growth. Sustainable growth that can lead to profitable growth has taken centre stage. So today, we must drive growth, scale, and profits. We’ve been operating with a sustainable growth mindset since day one. This mindset has enabled us to raise two funding rounds amid the pandemic successfully.

What learnings can early or growth-stage companies make from late-stage companies?

Prioritise innovation: We have placed innovation at the forefront since its inception. We recognised the potential in the nascent travel experience market. This commitment to innovation has driven our expansion into over 90 countries and the development of Rezio, our SaaS business. At every turn, an innovation mindset fuels everything we do.

Forge enduring partnerships: We owe part of our success to building solid partnerships – from travellers to suppliers to investors. They have been critical to our success in reaching 12 markets and offering over 300,000 experiences. These partnerships are an invaluable asset to the company, and we continuously allocate resources to nurturing and maintaining them.

Cultivate a robust company culture: Aligning our culture with our mission and values is essential. At KKday, we have invested in creating a solid company culture that fosters innovation, collaboration, and customer-centricity.

Also Read: Experts on how SEA companies can survive and thrive in a high interest-rate environment

We understand the significance of exceptional customer service and support, so we have also dedicated substantial resources to our customer relations and quality control teams.

How are startups tackling talent issues? Is that an issue in this market?

Despite the challenges posed by the pandemic, we are grateful that our talent acquisition plan remained largely unaffected. KKday boasts a diverse team of nearly 1,000 employees across 12 offices in Asia, including Taiwan, Hong Kong, Singapore, Korea, Japan, Malaysia, Thailand, the Philippines, Indonesia, Vietnam, Shanghai, and Australia.

For startups aiming to thrive in the global marketplace, embracing international talents and fostering a multicultural environment is paramount. At KKday, we prioritise this by adopting a strategic approach to international market expansion. Our initial step involves hiring dedicated, full-time local HR professionals in each target market. These HR experts know countries’ laws, regulations, and recruitment norms in-depth. With a solid understanding of the unique attributes of each market and aligning them with our business goals and mission, the HR team takes charge of talent recruitment efforts.

By leveraging the expertise of our local HR teams and promoting multiculturalism, KKday is able to build a diverse workforce that brings together different perspectives, experiences, and talents. This approach strengthens our ability to operate effectively in various markets and cater to our global customer base’s diverse needs and preferences.

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Echelon Asia Summit 2023 brings together APAC’s leading startups, corporates, policymakers, industry leaders, and investors to Singapore this June 14-15. Learn more and get tickets here. Echelon also features the TOP100 stage, where startups can pitch to 5000+ delegates, among other benefits like connecting with investors, visibility through the platform, and other prizes. Join TOP100 here.

The post Investor expectations have evolved beyond a singular focus on topline scale, growth: KKday CEO appeared first on e27.

SkorLife, a fintech company allowing users to access their credit scores and reports instantly from Indonesia’s credit bureaus, has secured US$4 million in a seed funding round led by global tech investor Hummingbird Ventures with participation from QED Investors.

Existing investors AC Ventures and Saison Capital also joined.

SkorLife will use the fresh funds to develop products, build brand awareness, expand the team, and accelerate growth. “With the funds we’ve raised, SkorLife is poised to accelerate its mission of promoting responsible borrowing and fair credit practices in Indonesia. We are dedicated to driving financial literacy amongst individuals and communities,” said Karan Khetan, Co-Founder and President.

Also Read: Qatar sovereign fund joins the US$250M Series D round of Builder.ai

Indonesians’ lack of access to fair credit can be attributed to the mass market’s limited knowledge of how credit works and how to become responsible borrowers. SkorLife believes that when locals understand their credit profiles, they will try to obtain the knowledge and skills needed to improve their creditworthiness and financial reputation. This, in turn, grants them access to fairer credit opportunities, benefiting society in the long run.

This is what SkorLife does. It is a credit builder that allows users to access their credit scores and reports instantly. It also provides personalised advice and tips for users to get exceptional scores and access better credit.

In September 2022, the startup raised US$2.2 million in pre-seed funding and claims to have amassed 100,000 downloads since its public launch around the same time.

Since its launch, Skorlife has been accepted into Indonesia’s Financial Services Authority’s (OJK) regulatory sandbox and has obtained ISO 27001 and ISO 27701 certifications.

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Echelon Asia Summit 2023 brings together APAC’s leading startups, corporates, policymakers, industry leaders, and investors to Singapore this June 14-15. Learn more and get tickets here. Echelon also features the TOP100 stage, where startups can pitch to 5000+ delegates, among other benefits like connecting with investors, visibility through the platform, and other prizes. Join TOP100 here.

The post SkorLife secures US$4M to allow Indonesians access their credit scores, reports instantly appeared first on e27.

Singapore-based avatar communications company GoodGang Labs announced today that it has successfully raised US$2 million in seed funding from Kakao Investment, a subsidiary of the prominent South Korean tech giant.

The funding will be strategically allocated towards the growth and development of GoodGang Labs’ flagship product KiKiTown.

KiKiTown is a global platform for avatar-based communication that provides individuals with a virtual environment where they can freely express themselves and connect with others regardless of appearance or physical location.

It sets itself apart by exclusively transmitting voice and avatar motion data, resulting in a significantly lighter and more efficient platform. Additionally, unlike 2D-based interfaces, KiKiTown offers a 3D environment that aims to empower users with dynamic viewing angles through multiple virtual cameras.

“We’re on a mission to revolutionise the way individuals connect and communicate in the digital age. We envision a world where technology is a catalyst for deeper human connections, where individuals can freely express themselves, connect with diverse communities, and engage in enriching conversations without the limitations of appearance or physical location,” said CEO
and Co-Founder of GoodGang Labs, Dookyung AHN.

Also Read: Sony & UMG join forces with Snowcrash to revive NFTs: Here’s why the digital trend is far from dead

“Our vision is to create a virtual environment where people can explore their true selves and interact with others in a way that’s
never been possible before.”

In the next three to six months, GoodGang Labs plans to launch KiKiTown for Web2 with the goal of revolutionising how individuals connect and interact in virtual environments. The company is also tapping into the B2B market by offering its human-to-avatar technology in the form of a SaaS API.

Additionally, the company is preparing for the release of GangHouse for Web3 which will further enhance the capabilities of avatar communication in the metaverse.

GoodGang Labs stated that its BeerGang NFT collection was sold out on the LINE DOSI NFT marketplace during the challenging crypto winter, which serves as a testament to its growing market appeal. The collection consisted of 3,333 unique items.

GoodGang Labs was co-founded by Dookyung Ahn, who previously worked as a Strategic Partner Manager for Stories at Facebook and also served as the Head of Developer Partnerships at LINE as a Product Manager. The co-founding team also include Jaecheol Kim, who was a co-founder of Seerslab, and Seoyoung Kim, who previously held the position of Art Team Lead at Facebook.

Before this round, GoodGang Labs also secured undisclosed funding from investors such as Naver, NaverZ, Planetarium, and Kimgisa Lab.

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Echelon Asia Summit 2023 is bringing together APAC’s leading startups, corporates, policymakers, industry leaders, and investors to Singapore this June 14-15. Learn more and get tickets here.

Echelon also features the TOP100 stage, where startups get the chance to pitch to 5000+ delegates, among other benefits like a chance to connect with investors, visibility through e27 platform, and other prizes. Join TOP100 here.

Image Credit: GoodGang Labs

The post GoodGang Labs gets US$2M in seed funding to further grow its KiKiTown product appeared first on e27.

Long-stay rental solutions company LiveIn acquires KT Management in Malaysia
The merger aims to provide LiveIn’s community living solutions and a better O2O experience for KT Management’s thousands of tenants; LiveIn is backed by Jungle Ventures, Wavemaker Partners, Aucfan Co, and KK Fund.

Malaysia orders Huobi to stop operations due to compliance concerns
Huobi must also stop “circulating, publishing, or sending any advertisements, whether in email or on social media platforms, to Malaysian investors.”

MAS launches programme to nurture AI talent in finance
The initiative aims to increase “the supply of artificial intelligence and data analytics talent to build deep AI capabilities” in finance.

SG logistics service provider Janio secures US$8M Series B
The investors are Vertex Growth Fund and Vertex Ventures SEA & India; Janio is a 4PL partner for e-commerce brands, logistics service providers, and marketplaces; It leverages supply chain expertise, advanced analytics, and automation.

India’s Chalo raises US$45M in Series D to digitise bus commutes
The investors are Avataar Ventures, Lightrock India, and WaterBridge Ventures; Chalo’s business revolves around empowering bus operators to transition to digital payments and facilitate commute tracking.

Indian industrial IoT startup Infinite Uptime bags US$18.8M
The investors include Tiger Global, Mayfield, GSR Ventures, VenturEast, and THK; The startup helps improve manufacturing plant reliability and offers failure predictability for manufacturing facilities.

Vonage brings WhatsApp payments to Singapore
Powered by Singapore-based firm Jumper.ai, the tool allows businesses and consumers to complete shopping transactions within WhatsApp, from browsing products to making payments.

Jokowi names interim tech minister amid incumbent’s detention
Mahfud MD will temporarily lead the country’s communication and IT ministry; This decision comes after the incumbent minister, Johnny Gerard Plate, was detained on Wednesday as a corruption suspect linked to a 4G wireless base station project.

German firm invests in Singapore SaaS fintech firm Ivitech
The investor is GPS Ventures GmbH; After analysing a company profile with alternative scoring mechanics, Ivitech provides access to capital for SMEs.

Following iVS acquisition, this is how ShowHeroes plans to win APAC market
This acquisition is part of the organisation’s plan to expand into the Asia Pacific (APAC) market, including Singapore, Malaysia, the Philippines, Indonesia, Thailand and Japan.

Sony & UMG join forces with Snowcrash to revive NFTs: Here’s why the digital trend is far from dead
Exploring the future of NFTs, Web3 strategies, and the changing landscape of art and collectibles with the Co-Founder of Snowcrash, Walter De Brouwer.

The e27 Connect VCs that invested in Southeast Asian startups last week.
Eight e27 Connect investors participated in the investment rounds of just two startups — Jenfi and ORA — in the week that has just passed.

How employee rewards and recognition is adapting in post-pandemic era
A balanced hard-soft approach matters when it comes to employee rewards and recognition, which facilitates the creation of everyday moments of joy.

How to stay creative in the age of Generative AI and Web3
In the midst of an avalanche of technology news in creative industries, we navigate an unprecedented era of creativity and fear of being left behind.

15 exciting startups make it to the 2023 TOP100
Witness as 15 more startups will be battling it out at 2023 TOP100, showcasing their unique and exciting innovations!

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Echelon Asia Summit 2023 brings together APAC’s leading startups, corporates, policymakers, industry leaders, and investors to Singapore this June 14-15. Learn more and get tickets here. Echelon also features the TOP100 stage, where startups can pitch to 5000+ delegates, among other benefits like connecting with investors, visibility through the platform, and other prizes. Join TOP100 here.

The post Ecosystem Roundup: Huobi ordered to stop operations in Malaysia, LiveIn acquires KT Management appeared first on e27.

The global economic environment continues to be volatile, significantly impacting the startup ecosystem. Companies struggle to stay afloat, and different companies, including startups and VCs, take different approaches to navigate this situation.

Although the impact has been relatively low in Southeast Asia, many startups still resorted to cost-cutting and workforce reduction to survive.

“How are the founder mindset and the overall cultural shift happening internally — given the high interest-rate environment and funding isn’t as easy as before?”

We asked some startup founders, venture capitalists, accelerators and PR agencies in Southeast Asia this question.

This is how they responded:

Amerson Lin, Co-Founder & CEO of Gigacover

The challenges posed by changes in the funding landscape are real. At Gigacover, we have always fostered a culture of agility and prudent financial efficiency. We actively explore new revenue streams and seek to increase our margins over time. That is how we have turned profitable and stay committed to powering digital affinity protection programmes.

Anu Gupta, Director of APRW

The current market conditions have been challenging for startups. However, we firmly believe that a robust founder mindset, good product fit, and an able team are vital in ensuring the survival and success of startups during these trying times. To face the challenges ahead, startups must cultivate resilience and foster an innovative mindset rather than succumbing to discouragement amid a turbulent market. More than that, workplace culture also has a large influence. Thus, companies fostering teamwork, creativity, and transparent communication will likely tide through storms and emerge victorious.

Binh Tran, Co-Founder, Ascend Vietnam Ventures

The high interest-rate environment is reshaping the founder’s mindset and internal cultures. It’s a shock to the system but also a wake-up call, like that first sip of strong Vietnamese coffee in the morning.

The era of pitching grand ideas and receiving immediate funding is fading. Now, the conversation is about tangible results, provable business models, and profitability. The focus is shifting from extravagant moonshots to reliable and sustainable business models.

This high interest-rate environment is forcing founders to rethink their strategies. It necessitates innovation, resilience, and a razor-sharp focus on delivering value. Despite the increased difficulty in fundraising, founders are developing more efficient, calculated, and value-driven solutions. This shift, while challenging, is beneficial because it underscores the importance of solid foundations in addition to a big vision.

Carman Chan, Founder and Managing Partner at Click Ventures

The current high interest-rate environment and funding challenges have forced founders to adopt a more conservative approach to business strategies, focusing on profitability and sustainability rather than rapid growth. To navigate this environment, startups are prioritising efficiency and cost savings, exploring alternative sources of financing such as venture debt or revenue-based financing and exploring partnerships.

Also Read: ‘The era of easy money is over’: VCs speak of funding winter and exit landscape in Southeast Asia

The cultural shift within organisations involves:

• Prioritising a more disciplined approach to resource allocation and decision-making, such as fewer perks or perks with lower cost.
• Fostering a culture of resilience.
• Communicating transparently with team members, especially when downsizing.
• Some founders are turning to AI to increase productivity and reduce costs, using it to automate repetitive tasks, personalise marketing content, and generate graphic designs.

Cha-Ly Koh, Founder and CEO of Urbanmetry

Bottom line, profit and unit economics have always been a priority for Urbanmetry as it reflects the value of the product we build for our clients. We also invest heavily in R&D and new products, which has driven our growth in the last few years. In the current funding landscape, founders are rebalancing focus on operational profits and R&D while confronting cultural debt.

During rapid growth, some startups aggressively hired top individual contributors, leading to isolated deliverables. However, these outstanding contributions often fell short when combined.

In this environment, founders must strengthen team bonds, enabling the company to exceed the sum of individual efforts. It’s challenging but vital for a startup to forge a healthy, sustainable bottom line.

Dave Ng, General Partner at Altara Ventures

Great founders are reemphasising the basics of building businesses. They adopt a survival mindset because funding doesn’t come by easily. That means taking a hard look at the model and ensuring it is profitable or shutting it down.

Servicing venture debt or business loans in a high-interest-rate environment could be painful and untenable.

Very quickly, many realise what used to allow them to kick the cans down the road — in a low interest-rate and easy money era – is no longer available. Many founders will become wiser, stronger and more mature after this episode of macro challenges.

Dorothea Koh, Founder & CEO of Bot MD

Honestly, I don’t think our mindset has changed much. We have always been focused on building products that delight our Doctors and figuring out how to scale Bot MD towards profitability.

I suppose the current funding climate has only served to amplify this sentiment. It has also made us more thoughtful about where we put our resources and the need to focus the company towards sustainable growth at scale.

Edward Tay, Associate Professor and Chairman of Infracrowd Capital

Founders are increasingly anxious over the bleak economic outlook and the scarcity of venture capital worldwide.

The better ones are reducing unnecessary expenditure and delaying talent recruitment as far as possible without sacrificing their growth trajectory; the rest are struggling to keep afloat and bootstrapping as much as possible without losing valuable talent.

Franco Varona, Managing Partner, Foxmont Capital

I think the Filipino founder mindset was never really “set” toward any specific direction since funding was quite hard to come by before this explosion of entrepreneurship and subsequent investor interest in the country.

It’s interesting to note that as the region begins to settle into the idea that funding will be more difficult than before, it’s specifically now that the Philippines is seeing more funding come to the country. In the last three years, the Philippines’ startup ecosystem has brought in 2 per cent, 5 per cent and 9 per cent of regional funding, respectively, and we don’t see that slowing down in 2023.

So we have founders working hard to get to profitability faster (since funding was so hard to come by) that are starting to attract regional investors looking for profitability metrics vs growth metrics. It’s a good balance currently.

Harmender Singh, VP (SUPER Project Management Office, Corporate Affairs & Special Projects) at Cradle

In today’s rapidly changing economic climate, founders must be resilient and adaptable. Successful businesses can often pivot and evolve their ideas or business models based on market feedback, changing consumer needs, and emerging trends.

This requires a willingness to listen, learn, and make necessary changes to the business strategy. Identifying new opportunities and acting on them quickly helps a business stay ahead of the competition.

Innovation is a constant process that should be integrated into a company’s culture. It involves developing new products or services, finding ways to improve existing ones, optimising business processes, and creating new business models.

Also Read: Startups that can reflect and pivot in time will thrive during funding winter: Ivan Ong of AFG Partners

Founders should strategise on their spending, be more effective in marketing their products, leverage a network of peers and experts and listen to customers’ needs.

Herston Powers, Founding Managing Partner, 1982 Ventures

The founders that will win shifted to war-time mode a long time ago. We’ve seen grit and resilience from the best founders growing revenue, managing costs and securing new funds. The fundraising environment appears to be improving for the Series A stage, as a few of our portfolio companies are closing larger rounds at higher valuations from new investors.

Southeast Asia fintech remains the bright spot, and the broader APAC region defied the global fintech funding decline.

Jeremy Au, VC and Chief of Staff at Monk’s Hill Ventures

The topline-growth-at-all-costs approach is now recognised to be over. Founders generally already understand the suddenly-popular advice to focus on contribution margins, prioritise lean operations and stay within the vision of a break-even contingency plan if future fundraising falls through.

Many founders are rightfully concerned about how long these tight funding conditions will continue. US interest rates are forecast to stop increasing but remain high for the next year. Observers believe that funding will thus be conservative for at least another year, maybe two.

I recommend that founders recognise this capital environment as the new base scenario and act accordingly to raise bridge capital proactively, cut costs and stack-rank high-ROI sales & product improvements.

By reorganising for fiscal resilience, brave founders can thus preserve the breathing room to run time-bound experiments on efficient growth and profitability levers. The team culture will also organically evolve towards maximising learnings (and returns) for every dollar spent.

In time to come, the market will adjust to the new normal and eventually reward the startup teams that have continued to grow, upgraded their economic engines and outlasted their competitors.

All that is gold does not glitter,
Not all those who wander are lost;
The old that is strong does not wither
Deep roots are not reached by the frost: J.R.R. Tolkien.

JJ Chai, Co-Founder and CEO of Rainforest

Given the market conditions, we’ve focused on bottom-line growth rather than topline growth at Rainforest. There’s definitely been more of a ‘batten-down-the-hatches’ mindset and a strong emphasis on margin expansion and cost controls.

As founders, we’ve openly communicated the overall situation with the team since early last year. I’m glad the team has rallied hard and worked with the resource constraints to deliver our first quarter of total profitability the previous quarter while still growing the topline significantly.

John Tan, Founder and CEO of Doyobi

At Doyobi, our mindset has shifted to the path to profitability. We are more metrics-driven. For example, internally, we are asking how many paying users we need to acquire to reach profitability. We are also taking a hard look at customer acquisition strategy, including CAC and retention, and LTV.

Kamarul A Muhamed, Founder and Group CEO, Aerodyne Group

Being prudent in spending should be at the heart of every management conversation. This environment is not an outlier but rather a revision to mean. The low-interest-rate environment, which many startups/growth stages have been comfortable with in recent years, was not meant to last. That being said, be it a low-interest-rate environment or otherwise, operational efficiency or having frameworks to continuously innovate to expand revenue lines and achieve better operational efficiency should be of utmost importance.

At Aerodyne, we consciously traded the profitability we achieved in the first five years of operations to fuel growth during the pandemic, coinciding with the commencement of rate cuts. Since then, the focus has been to turbocharge products and geographical expansion, which has borne fruit.

Kristine Claire Ongcangco, Founder & CEO at Parlon

This new environment just emphasised that founders should focus on building scalable businesses right from the beginning. There is less room for mistakes and trial and error. We should not be complacent and should always be laser-focused on our path to profitability.

While external funding can offer a significant firepower boost, founders must always consider the importance of optimising revenue streams and being prudent in managing costs. Founders should maintain a balanced perspective and avoid relying solely on external funding. Especially for early-stage startups, we must be creative and open to diverse financing options, like even investing our own capital.

Ming Chen, Founder and CEO of KKDay

The cost of capital has risen significantly in the current environment, underscoring the importance of developing a sustainable and profitable business model. At KKday, we take great pride in our commitment to the “make profits, sustain & grow” approach, which has been a fundamental principle since our inception.

Unlike succumbing to a growth-at-all-costs mindset driven by readily available capital, we have prioritised sustainable growth and exercised discipline in our sales and marketing strategies. This includes how we look at user acquisition, our strategy for discount subsidies, and targeting the suitable user base.

KKday’s previous fundraising rounds have brought substantial business improvements and well-positioned us for continued growth. This ranges from attracting industry talents to strategic acquisitions such as the prominent Japanese local travel experience OTA, Activity Japan.

Additionally, we have dedicated resources to developing our in-house proprietary SaaS booking system Rezio. This has helped us strengthen our resilience amid the challenges posed by the pandemic. We have increased our operational efficiency, deepened our footprint, and increased supplier loyalty.

Investor expectations have evolved beyond a singular focus on topline scale and growth. Sustainable growth that can lead to profitable growth has taken centre stage. So today, we must drive growth, scale, and profits.

Oswald Yeo, Co-Founder and CEO of Glints

Not unique to any startup, we’ve had to make hard decisions that impacted every team member. While we have always believed in persevering through challenges and being resourceful in the face of adversity, we are not immune to the current environment. We must find ways to adapt our business. In this process, we remained steadfast and understood the need to be as transparent and communicative to all of our Glintstars as possible on where the business stands, where we are going, and why we need to make certain decisions.

Sanjay Uppal, Founder and CEO of finbots.ai

Having held multiple CFO roles throughout my career, I am prioritising building business value over valuation through prudent spending and strategic investments in our products and capabilities. At finbots.ai, we remain steadfast on this path, ensuring our marketing, personnel, and R&D investment align with our ambition.

Recent changes in the macroeconomic environment and increased awareness of the potential of artificial intelligence (AI) have resulted in the rapid growth of our sales pipeline.

As a result, we have recently launched our next funding round to accelerate our go-to-market activities. The changes in the macro environment are also seeing enhanced rigour in investment decisions, which, in the long term, will benefit both startups and venture capital.

Sergei Filippov, Strategic Partner of MGG Solutions Group and formerly with Morphosis Capital Partners

I have several pieces of advice for founders:

Focus on unit economics: Founders and their teams must now pay more attention to their unit economics. This means ensuring that the revenue generated from a customer over their lifetime (LTV) is significantly higher than the cost of acquiring that customer (CAC). Profitability on a per-customer basis becomes vital, and it can be postponed only if there’s a need for a quick growth rate to outpace the competition.

Efficiency and lean operations: A high interest-rate environment encourages founders to adopt leaner operations — being more strategic with hiring and leveraging automation and technology to reduce costs.

Revenue generation vs profitability: When securing additional funding is challenging, startups are forced to focus less on booming revenue growth and more on a clear path towards profitability. This might involve exploring different revenue streams, increasing prices, or focusing more on upselling and cross-selling to existing customers.

Financial discipline: Founders are more carefully managing their cash flow. They scrutinise expenses, focus on achievable profitability and seek alternative funding options such as strategic partnerships and joint ventures or revenue-based financing.

Long-term vision and strategy become vital: Founders increasingly focus on their long-term vision, even if it means sacrificing short-term growth. They understand that building a sustainable, profitable business with a clear competitive advantage is more attractive to investors in a high-interest-rate environment. That, of course, requires patience, strategic vision and a better understanding of long-term goals.

Enhanced two-way due diligence: Founders are now more mindful of the investors they partner with, understanding that the right investor can provide not only capital but also valuable strategic guidance, industry connections, and support during challenging times.

Cultural resilience and flexibility: Culturally, there’s a shift towards resilience and adaptability. Startups must be prepared to pivot and adapt their business models to changing market conditions. Thus, a culture that’s open to change and values flexibility is required.

Vince Yamat, Managing Director, 917Ventures

At 917Ventures, the continuous macroeconomic headwinds have prompted a shift towards a more resilient and adaptive mindset. Our founders, CEOs, and teams actively embrace the need for strategic financial planning, conducting in-depth analyses of bottom lines and pursuing sustainable growth strategies to successfully navigate and thrive in the evolving funding landscape.

Vinnie Lauria, Managing Partner of Golden Gate Ventures

The challenges of the current high interest-rate environment have been well expounded upon. But founders thrive on adversity, and the smart ones will take the opportunity to rise to the challenge and surpass their competition.

Early-stage investors such as Golden Gate Ventures continue making investments through the current macroeconomic climate. The high interest-rate environment pressures founders to be more cautious around growth-stage fundraising and puts greater scrutiny on their business fundamentals and unit economics. This is an opportunity for smart founders to demonstrate how skilful their team is in these pressures to gain outsized confidence from investors.

Also Read: Funding winter? Indonesia marches on … and why it will survive the gloom

This environment allows founders to use a constraint to unlock creativity. And founders who build up a rock-solid culture have a better shot at ensuring their operational discipline has longevity.

Strong business operations and culture go hand-in-hand, and the smart money will be on founders who demonstrate they can build an organisation that lasts—for example, the founders who strategically leverage their footprint across the startup golden triangle of Singapore-Indonesia-Vietnam. Founders who are creative in making each market’s unique opportunities work together will survive and thrive in this environment.

Warren Leow, CEO of Inmagine

Being economical, adaptable and resourceful would be very important amidst resource constraints. Disciplined focus, clarity of thinking and the ability to execute are the hallmarks of high-performing teams with strong leadership. Founders and senior management need to have a can-do and ‘all in’ attitude even when the going gets tough.

Xander van der Heijden, CEO of UNL

Great founders are hyper-focussed on building businesses that are not only profitable but also highly resilient.

In the past few years, venture capital was given to non-entrepreneurs without proper due diligence in place. Now, we see a shift in investor mindset that brings the fundraising landscape to a healthier state, one that will create the next generation of real entrepreneurs and builders.

Yat Siu, Co-Founder and Executive Chairman of Animoca Brands

Founders who build with purpose and for a mission bigger than themselves are always more likely to fare better than others with less conviction. In fact, an environment where it is harder to raise funding, although always challenging, can also be advantageous in some ways, because it allows truly dedicated founders to stand out from the crowd — the noise ratio is lower and true conviction becomes more visible.

Passion and purpose are all-important. Adversity is part of economic cycles and can provide a powerful character and perseverance building experience. Founders who are building in a bear market need to really believe in what they do and need to want to be doing what they do. Sometimes things won’t be easy but founders adapt and carry on in the pursuit of their vision.

Valuations today are generally lower as a result of less available capital in the market. However, I believe that the founder mindset will prevail as it has done so many times before.
—

Echelon Asia Summit 2023 brings together APAC’s leading startups, corporates, policymakers, industry leaders, and investors to Singapore this June 14-15. Learn more and get tickets here. Echelon also features the TOP100 stage, where startups can pitch to 5000+ delegates, among other benefits like connecting with investors, visibility through the platform, and other prizes. Join TOP100 here.

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The efficiency of business-to-user messaging for any brand determines retention rates and growth numbers, and the ever-widening channels of communications have increased the number of customer touchpoints.

Using a single communication channel is insufficient; using every channel available will result in spamming and be counterproductive. Businesses need an omnichannel communications strategy that delivers a consistent experience across customer touchpoints.

In an age when automation of operations is being adopted to fulfil functions more efficiently, there’s no reason why the process of businesses’ communication with their user should lag behind. Notifications and In-App Chat APIs provide an opportunity for seamless handling of customer satisfaction and experience and should be leveraged as such in the omnichannel communication strategies.

Technologically advanced communications support the mantra of “doing more with less”, which adds value in targeting the ever-growing complexities of the end consumers.

Things to consider and keep in mind when drawing an omnichannel communications strategy:

Evaluate target audience and identify first-choice channels for automation

Depending on the type of business, the communication channels will change and need to be customised accordingly. Identifying the platforms most used by the target audience, followed by a thorough analysis of their benefits and limitations, is necessary. Customer preference for in-app user experience, push notifications, social media interactions, etc., have to be considered.

Also Read: How business leaders can utilise generative AI in employee communications

While external communication points may convince customers to engage with your brand, the in-app experience makes or breaks the deal. Fintechs have seen a 300 per cent higher average spend per user with chat, while ride-hailing businesses clocked a 75 per cent reduction in booking cancellation rates. This shows that efficient chatbots, easy-to-navigate UI, and updated info about products, services and the brand are crucial factors.

Methodically separate types of messaging between the channels identified

Every channel carries its own set of features which serve different purposes. For example, SMS for verification, emails for long format messages, in-app messaging for faster turnarounds, personalised notifications for prompting, etc.

Simultaneously, it is necessary to keep up with the changing trends. Clicks on emails have gradually declined over the years, and visual forms of messaging have taken over wordy texts. Live chats, push notifications, and other in-app communication features have taken the spotlight in recent times, and it is important to leverage the same.

Prioritising personalisation and customisation

Despite following through the steps of identifying the most suitable channels for the target audience and dividing types of messages, there is still wide scope for better targeting. While customers can be divided into demographics, they differ from individual to individual. Messages and notifications create more impact when they are customised to fit the receiver, and using platforms that allow the same should be a priority.

In-built CTA (Call to action) within in-app notifications drives customer action. Push Notifications can also be strengthened through personalisation, prompting users specifically based on their carts and buying habits and also be used to alert them of promotional offers.

Providing two-way communication at relevant touchpoints

Communication is successful when in addition to the company’s successful messaging process, the users can revert with their questions, inputs, and feedback. The aim of an omnichannel communication strategy is not to send out its messaging once but to establish a long-term route of conversations with their past, current and future customers.

Chatbots have emerged as an excellent and cost-effective two-way communication method, providing customer support in-app or at the website’s interface. The future is clearing a seamless segway into live chat from chatbots for higher customer satisfaction. Intelligent integration of chat platforms with carts, payments, product catalogues, etc., ensures faster conversion from interest to buy.

Also Read: How efficient communication drives positive relationships in product development

Reeling in a customer is not enough; you have to keep them

Business professionals are accustomed to ticking the omnichannel box, but their approach is often for a narrow time frame. Meeting and acquiring customers where they are is important, but long-term retention of these users on your website and app determines success.

Multiple studies, including Harvard Business Review research, state that depending on the sector and industry, the cost of customer acquisition is 5x to 25x higher than customer retention. The in-app channel is the best for using this gap, going beyond acquisition to drive adoption, usage, engagement, retention, and referral (upsells) — to manage all touchpoints of the user journey.

Omnichannel communications bring consistent consumer data and improve CSAT (customer satisfaction) metrics.

Instead of vague data divided based on large demographics, it allows brands to understand their users on a deeper and more individual level. Instead of blindly sending our mass messages and hoping some stick, strategising across channels helps increase the return on investment.

Communications strategies are not one-channel-fits-all, and brands must step up and leverage every productive channel to grow their brand’s voice.

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Multiple news outlets have reported that the US Department of Justice (DOJ) is increasing its efforts to combat illicit activities and criminal behaviour, such as money laundering, within cryptocurrency exchanges and platforms. To this end, the DOJ’s national cryptocurrency enforcement team (NCET) is focusing its attention not only on exchanges but also on crypto mixers and decentralised finance (DeFi) platforms that engage in unlawful acts.

NCET’s focus

The NCET’s focus on cryptocurrency-related crimes highlights the United States government’s efforts to regulate the cryptocurrency market. The NCET aims to prevent criminals from using digital assets to carry out illegal activities and to ensure the safety and fairness of the cryptocurrency market for investors. The increased efforts of the NCET and other regulatory bodies to combat cryptocurrency fraud and criminal activity indicate the growing importance of regulation in the cryptocurrency market.

They have a broad mandate, blurring lines between traditional white-collar and other federal crime and the emerging technologies associated with cryptocurrency and cyber-instrumentalities, neither of which are governed by clear, subject matter-specific statutes. The team aims to assist in tracing and recovering assets lost to fraud and other illegal activities.

Eun Young Choi, the newly appointed director of the cryptocurrency enforcement team, has vowed to crack down on illicit behaviour and to hold companies accountable for allowing or facilitating criminal activity on their platforms. In recent months, the US government has shut down nine exchanges suspected of money laundering.

Also Read: The regulatory war on cryptocurrency

For example, in May 2023, the US government, in collaboration with Ukrainian authorities, shut down nine cryptocurrency exchanges suspected of money laundering activities in recent months. The authorities shut down all servers of crypto exchanges 24xbtc.com and 100btc.pro, pridechange.com, 101crypta.com, uxbtc.com, trust-exchange.org, bitcoin24.exchange, paybtc.pro, and owl.gold.

Each platform offered users anonymous crypto transactions through voluntary registration programs violating several US laws. The exchanges were considered important hubs in the cybercrime ecosystem and were accused of violating US laws and having lax know-your-customer (KYC) controls.

It was also mentioned that the NCET Team wants to crack down on illicit investment scams such as the “pig butchering” scheme on crypto exchanges. This scam involves scammers playing the long game, “fattening up” potential victims to extract as much money as possible before the “slaughter”. The goal is not to extract money quickly, unlike other common scams. The term originated from a Chinese phrase with the same meaning.

They have also emphasized its partnerships with other federal agencies, such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), in monitoring the cryptocurrency industry.

The government’s goal is to coordinate efforts and respect primacy among subject matter experts while unleashing US regulators to dig deeper into emerging markets and the technologies that support them. With the creation of the NCET, a rise in enforcement actions, and the end of the cryptocurrency “grace period,” stakeholders active in the cryptocurrency markets need to ensure their regulatory compliance.

A two-phase strategy for cryptocurrency regulation

Some experts believe that the US government’s actions signal a coordinated regulatory campaign to stymie the growth of the cryptocurrency industry. Personally, I do not think so. The regulation of cryptocurrencies requires a meticulously planned strategy that adapts to the ever-changing landscape of this digital realm.

Also Read: IMF calls for cryptocurrency regulation to ensure financial stability

To ensure its effectiveness, a two-phase approach should be followed. In the initial phase, the primary objective is to disrupt the flow of cryptocurrencies to illicit actors. This can be achieved by maintaining updated lists of sanctioned intermediaries and providing clear guidelines to individuals and businesses in the United States, helping them identify and avoid engaging with foreign companies under sanctions.

Furthermore, a comprehensive analysis should be conducted concurrently to evaluate the efficacy of these measures in combatting illicit financial activities associated with cryptocurrencies. This in-depth assessment would give regulators a deeper understanding of the outcomes of their actions.

By closely monitoring cryptocurrency intermediaries and rigorously evaluating the results, regulators can gather invaluable insights into the potential of cryptocurrencies as a legitimate instrument for promoting financial inclusion.

The findings and evaluations obtained in the initial phase will form the basis for the subsequent stage. If the analysis demonstrates a significant reduction in illegal cryptocurrency transactions due to effective law enforcement, it would create strong momentum for the government to proceed with the implementation of a Central Bank Digital Currency (CBDC).

This would indicate that the risks tied to illicit cryptocurrency activities can be adequately managed. However, if the measurements from the first phase reveal limited progress in addressing the criminal use of virtual currencies, it would underscore the government’s need to enhance enforcement mechanisms before considering the introduction of a CBDC.

It becomes crucial to prioritise efforts to target foreign exchanges and influential intermediaries through stringent sanctions, effectively combating theft, fraud, and extortion. Prudence dictates that new currencies should not be introduced hastily, and a comprehensive understanding of cryptocurrency dynamics must be achieved before any further steps are taken.

I think a well-executed phased approach to cryptocurrency regulation, supported by vigilant monitoring, thorough evaluation, and targeted enforcement measures, promises to provide valuable insights into the viability of cryptocurrencies for legitimate financial activities.

By diligently assessing the impact of regulatory efforts, policymakers can make informed decisions regarding the potential implementation of a CBDC, thereby ensuring effective control over illicit activities within the cryptocurrency ecosystem. Continual adaptation and improvement in response to the evolving challenges of this digital landscape are essential for fostering a safe and inclusive environment for cryptocurrency transactions.

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In an era where data drives decisions across industries, it’s no surprise that the realm of mental health is embracing this powerful tool. The revolution of adolescent mental well-being is underway, fueled by data-driven insights transforming how we approach prevention, early intervention, and support systems.

By leveraging the potential of technology and analytics, professionals can uncover valuable patterns and tailor support to individual needs. In this article, we explore how data-driven insights are reshaping the landscape of adolescent mental health, ultimately leading to personalised support and improved outcomes for the younger generation.

According to a survey on mental health and wellness conducted by Rakuten Insight in Singapore in May 2022, 45 per cent of the respondents indicated that they have used digital technology, such as fitness trackers, to manage their mental wellness. On the other hand, 39 per cent of the respondents stated that they used sleep-tracking apps or devices to manage their mental wellness.

The power of data to revolutionise how we understand and address the mental well-being of young minds is close. By analysing large datasets and employing advanced analytics, professionals uncover invaluable insights shaping the future of mental health support for adolescents.

Personalised support for every adolescent

There is no one-size-fits-all approach to mental health but thanks to accurate data-driven insights, mental health professionals can now provide personalised support tailored to each adolescent’s unique needs.

Professionals can customise treatment plans suitable for the individual by analysing individual data, such as preferences, behaviours, and intervention responses. This level of personalisation enhances the effectiveness of interventions and increases the likelihood of positive outcomes.

Early detection and intervention

One of the most significant advantages of leveraging data for insight into adolescent mental well-being is the early detection and intervention capabilities.

In a new chapter in mental health, we do not need an expert to help identify early warning signs of mental health issues. Adolescents can manage their mental well-being by observing their wellness patterns, trends, and risk factors.

Also Read: How mental health startup Intellect’s founder catalysed his personal battle with anxiety

They could use digital platforms, electronic health records, and online assessments to provide invaluable data that they could utilise to identify what is at risk and intervene proactively. This early self-help detection can prevent the escalation of mental health challenges and enable timely support.

Holistic approaches to mental well-being

The future of mental health for adolescents revolves around a holistic approach that encompasses their physical, emotional, and social well-being. It recognises the interconnectedness of these aspects, and by examining large datasets overall, adolescents can nurture a balanced lifestyle.

Professionals can use innovative programs and platforms to integrate physical activity, mindfulness practices, healthy nutrition, and social connections to promote overall mental well-being.

School-based mental health programs

The future will see a paradigm shift in how schools address mental health. Comprehensive mental health programs will be integrated into the school curriculum, promoting emotional well-being alongside academic success.

Technology serves as a gateway to accessible mental health support for adolescents. By incorporating digital platforms into school-based mental health programs, students gain convenient access to resources, tools, and interventions that can be accessed anytime, anywhere.

These digital platforms enhance engagement and empower students to actively manage their mental well-being, from self-help apps and online counselling services to interactive educational modules.

Looking ahead

In conclusion, as more resources from data continue to shape the future of adolescent mental well-being, the possibilities for personalised support, early intervention, and improved outcomes are expanding.

By harnessing the power of data, we can unlock the full potential of our younger generation, empowering them to thrive emotionally and mentally. The revolution of data-driven insights in adolescent mental well-being is here, and it’s bringing hope, innovation, and a brighter future for the mental health of our adolescents.

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NFTs stormed the art world with sales and headlines, but they’re now facing a major correction. The ongoing economic downturn caused a significant loss of market value, with 75 per cent of the market value disappearing at one point.

However, experts believe the NFT market will persist and play a crucial role in shaping a decentralised, equitable, and creative economy.

Snowcrash, an NFT trading platform formed in partnership with Sony Music Entertainment and Universal Music Group, is one such effort that aims to empower artists and collectors to create and trade unique digital assets on the blockchain. The firm was founded in 2022 by Walter De Brouwer, Chief Scientific Officer at Sharecare and an adjunct professor at Stanford University School; Jesse Dylan, Founder and CEO of Wondros; and Jeff Rosen, President of the Bob Dylan Music Company. 

By using cutting-edge technology, Snowcrash seeks to push the boundaries of the NFT world while also fostering a vibrant community of creators and supporters. Its infrastructure is based on a secure, environmentally responsible Solana blockchain with easy, consumer-friendly, green methods for acquiring and interacting with NFT art.

Recently, Snowcrash announced the launch of National Geographic’s Genesis NFT Collection, GM: Daybreak Around the World in a blind drop. This is expected to attract collectors and investors alike, eager to own a piece of National Geographic’s stunning visuals in the form of NFTs.

In this interview, De Brouwer speaks about the current state of the rapidly-evolving NFT space, his dynamic leadership approach at Snowcrash, and the cutting-edge digital innovations that are on the horizon.

Edited excerpts:

How do you see NFTs changing the art and collectibles markets?

I believe that NFTs have already brought about significant changes. However, as we are currently in a bear market, we may see some people attempting to manipulate the system until regulations are put in place, and the real market emerges.

NFTs are not only about collectibles and art; they represent a larger movement towards tokenisation. This involves placing physical and digital assets on the blockchain, including pictures, movies, money, and even houses. By tokenising these assets, we are creating an Internet-native payment realm that transcends the legacy structures of traditional finance and payment rails.

As the world becomes increasingly digital and virtual, we require a new infrastructure to enable frictionless transactions of currencies, properties, and even identities. Some refer to this as the metaverse, but I believe it is more accurately described as a new infrastructure that facilitates seamless transactions across various asset classes.

How does Snowcrash ensure the authenticity and uniqueness of NFTs, and what measures do you take to prevent fraud or plagiarism?

Our investors, Sony and Universal, have the expertise to help us with copyright management. They have established copyright systems, and we work with their intellectual property. We are already utilising zero-knowledge proofs in our systems, which is poised to revolutionise the entire on-chain movement.

Can you walk us through the process of creating and selling an NFT on your platform, and how do you regulate pricing, royalties, and ownership rights?

Our approach depends on our clients’ needs. They tell us their requirements, such as KYC/AML compliance and the use of specific currencies. We then create a white-label solution tailored to their specifications, allowing them to conduct their business seamlessly. 

We cater to a diverse range of clients, from those who require complete freedom to those who prefer walled gardens. Our clients are primarily large corporations in the media industry.

How do you balance the desire for decentralisation and democratisation of NFTs with the need for regulation in the industry?

I believe that everyone desires regulation, but it’s important to strike a balance between centralisation and decentralisation. Both extremes are not ideal, and we need to move towards the middle of that spectrum. 

In the evolution of technology, we cannot simply adopt a one-size-fits-all approach of either centralisation or decentralisation. It takes time to strike the right balance.

If I could create an ideal world, it would be decentralised, open-source, and peaceful. Unfortunately, we have to work with the reality we have.

If Snowcrash is an invite-only platform, doesn’t it make it exclusive and not democratic?

I don’t think our platform is invite-only. Some clients may prefer to make their NFTs invite-only, and we accommodate their requests.

The media and entertainment industry is vast and complex, with Hollywood, Bollywood, and many others. Our company is just a small part of that industry, serving our clients. We’ve noticed that most of our clients are moving in the same direction, which is exciting. I believe that 2024 and 2025 will be good years for our industry. 

Currently, we’re focusing on building our platform, and as someone with a background in AI, I’m thrilled to see that we can integrate AI into the blockchain and use cutting-edge technologies like zero-knowledge proofs.

There’s no lack of innovation in our industry. Like many things, there was a hype cycle in the beginning, and now we’re at a point where the tourists are leaving, and things are settling down. However, the underlying potential is still there.

Your profile says Snowcrash is working on the Web3 strategies of Sony Music and UMG. Could you please tell me more about it?

Sony and Universal are our investors, and we work closely with them to navigate the ever-changing landscape of the entertainment industry. Hollywood is a bit like a cowboy trail, where someone may shoot in the air to signal a change, but it takes time before someone takes out their gun and shoots. These are large corporations that move slowly but surely they are adapting to new technologies and trends. 

The nice thing about Hollywood is that when they do take action, they do so quickly and decisively.

I came across an article that says your company will release NFTs for Bob Dylan and Miles Davis as its initial offerings in 2022. What’s the status of that?

We’re still waiting! Working for large corporations means going through a lot of meetings with innovation groups, product groups, artist managers, artists, and legal teams. It takes patience to navigate these processes. 

As I’ve gotten older, I’ve learned to be more patient, even with my students who all have their own journeys. Sometimes it takes two or three years of work before something finally comes to fruition. Success is not just luck — it’s a result of hard work and persistence.

This year is not a good time to launch new products; not much is selling in the market. Others are waiting for next year to focus on building more dynamic NFTs, streaming NFTs, community identity, and soul power tokens. Everyone is just working hard to build for the future.

The industry seems to be in a period of building and innovation, with many large corporations moving slowly but surely towards new developments such as dynamic NFTs, streaming NFTs, community identity, and soul power tokens. 

While it may not be a good year for launching, there is a sense of anticipation for what the future holds and many are focused on building for the year to come.

What happens when an artist releases an NFT of their song? Could you explain this using an example of a Bob Dylan song or album? Does a user on your platform get to own the publishing rights to Blowin’ In The Wind?

Well, Dylan has already done that. He made a special version of Blowing In The Wind and sold it for US$1.77 million as a collectible. While everyone can listen to it, only one person can own it. 

As someone from a time when we owned physical music, I think there will be a market for owning music as an alternative asset category. People used to discover new music in stores and take ownership of that discovery, and I think something like that could happen again. There may be a market for owning music beyond top hits. 

There will be changes in the music industry, such as dynamic NFTs and streaming NFTs, and community identity. After Soul Power tokens, everyone is working to build for the future. There will be new forms of music, such as generative music created by AI, and derivative songs will become even easier to make.

When The Matrix movie was being made, the directors asked every actor to read a French book called ‘Simulacra and Simulation.’ The book introduces the concept of simulacra, which refers to a copy with no original. In contrast, a simulation represents something else, like a photograph of a book. 

The idea of simulacra is relevant to our world today, as we increasingly rely on models and simulations to create reality. Instead of basing our understanding of the world on an original, we first create a model and then use it as a reference for reality. This way, we are moving towards a simulacra first world. I have seen several pictures of people during my journey at Midjourney, and they seem to look at me as if they want to live. However, they don’t exist as originals, only as simulacra. This highlights the growing importance of simulacra in our modern world.

The film industry will also be affected. We’re moving towards a world of simulacra, where we first make the models and then create the reality. Software like Midjourney and Runway allows people to make their own video productions from scratch. 

Hollywood’s production sets and bureaucracy will disappear, and all the locations, sets, and clothes will become digital repositories. Actors might act against a screen, and faces can even be deeply faked onto them. These changes will revolutionise the industry, and it’s exciting to witness it all.

I can understand people wanting to buy a Bob Dylan song, but why would someone be interested in buying the NFTs of a debut album or a single from an artist who’s just getting started?

It’s true that there are many music lovers out there who enjoy discovering new music and discussing it with others. While you may not be an expert in music, you still have an appreciation for it and understand that others may use different techniques and tools to create their music.

In terms of investing, people are always searching for alternative assets that can potentially provide a return on their investment. Wine and sneakers are examples of alternative asset categories that have become popular among investors. It’s important to take risks, but it’s crucial to combine them with something that you are truly passionate about and enjoy. Otherwise, the risk can become tedious and unfulfilling, and you may end up losing in the end.

What is your approach to community building and user engagement?

This is a difficult one! Some clients come to us without an existing community and ask us to create one for them. However, we cannot pretend to be the artists themselves who are responsible for creating their own community. It’s important for artists to continuously engage with their fans and be in conversation with them. 

This is where Web3 comes in. It offers a more fluid conversation with fans and allows for a deeper investment in getting to know the artist. For example, fans can buy an artist’s book, songs, and even tickets to their next event all in one place. Ultimately, we all invest in things we like and share those stories with others, which makes us feel special in our own way.

About your partnership with Nat Geo, NFTs have been receiving a lot of flak from purists. In the end, isn’t a buyer only paying for bragging rights to signify ownership?

It’s bragging power! It’s understandable that owning rare or valuable items can provide a sense of pride and status. Additionally, discussing and sharing opinions on art and collectibles can be a social activity and a way to connect with others who share similar interests. As for investing in art, art can indeed be a valuable asset category, with prices often increasing over time. And owning NFTs, including digital art such as Apes, is becoming increasingly popular in the art world.

There are many reports that crypto is dead in America. What does the crypto winter mean for the NFT space? When do you think the market will kick off again?

We have been in a bear market since 2010, experiencing one winter after another. We’ve weathered many seasons, and even though my focus is on AI now, I’ve made a joke about it, saying that when I was in the summer of my life, I lived in the winter of AI, and now that I’m in the winter of my life, I live in the summer of AI. 

But the truth is, everything is cyclical, and people will eventually start focusing on something else. As AI becomes more centralised, people will need decentralisation, provenance, and more. Crypto is not dead, but not every coin will survive. 

As a shameless Bitcoin maximalist, I believe that Bitcoin is the future, and I think that the upcoming Bitcoin halving next year will make it even scarcer. In addition, there will be presidential elections in 2025, which will be a great year for Bitcoin.

How is Snowcrash positioning itself to navigate the current bearish trend in the NFT market and emerge stronger in the long run?

We have a great team, a low burn rate, and fantastic investors, so I believe we can weather a few winters while building and developing our platform.

It’s true that the younger generations will inherit the world that we leave behind for them. And it’s exciting to think about what innovations and advancements they will bring to the table. The convergence of AI, blockchain, and the Metaverse could indeed create some fascinating new possibilities.

However, it’s important to remember that these technologies also have their potential risks and challenges, and it’s up to all of us to ensure that they are developed and used responsibly. As for the ageing of previous generations, it’s a natural part of life and hopefully, we can leave behind a world that is better for future generations than the one we inherited.

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Echelon Asia Summit 2023 brings together APAC’s leading startups, corporates, policymakers, industry leaders, and investors to Singapore this June 14-15. Learn more and get tickets here. Echelon also features the TOP100 stage, where startups can pitch to 5000+ delegates, among other benefits like connecting with investors, visibility through the platform, and other prizes. Join TOP100 here.

Image credit: © TEDx Brussels/Scorpix

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