Singapore is home to various tech startups, many of which have become highly successful. A Statista study shows that out of the 4,000 registered startups in the country, 20 achieved unicorn status — six of which operate within the communication and technology sector.

These statistics indicate that Singapore is enabling a robust environment for new business and is nurturing a startup culture. Nonetheless, enterprises will inevitably face significant challenges in their early stages. This is where the provision of mentoring can have an immensely positive impact.

Taking advantage of mentoring opportunities

Based on my personal experience working with The Abu Dhabi Early Childhood Authority (ECA), it is clear that taking advantage of mentoring opportunities enables startups to stay competitive and gain crucial industry and local knowledge that allows them to inspire true and lasting social change.

A capable and seasoned mentor can offer entrepreneurs crucial advice, support, and expertise, acting as a sounding board based on their own experiences. Such intimate and insightful conversations will enable entrepreneurs to sharpen their ideas, improve their decisions and streamline their operations, maximising the likelihood of success. Recognising these benefits, many successful companies are utilising mentorship to achieve the best possible results.

Furthermore, from a government perspective, providing mentoring programs and promoting participation in them can significantly boost a country’s business environment leading to improved levels of innovation and decreased unemployment.

Also Read: Velocity Ventures launches programme to connect corporates with startups for co-investment opportunities

Startups in the technology industry are motivated by the desire to solve issues in novel ways. Such technologies can fundamentally transform how businesses and perhaps entire nations approach problems and find long-term solutions. Because I can see the benefits it brings to both parties, I am passionate about fostering government partnerships with entrepreneurs through mentoring programs.

Local and federal governments now realise the importance of collaborating with startups early on and supporting them in several ways. This includes the provision of mentorship programs. By working together with mentors, governments and startups can both benefit — the startups succeed by providing solutions to societal challenges that governments are looking to tackle.

Furthermore, improving the access and users of mentorship will help to encourage the next generation of entrepreneurial talent, resulting in a better entrepreneurial culture both globally and within Singapore. The World Economic Forum, for instance, found that government initiatives promoting networking and cooperation through incubator programs encourage more entrepreneurship.

Mentorship initiatives have aided startups

My experience in Abu Dhabi has shown that numerous government organisations have and still offer mentorship opportunities to the tech sector in various fields. We take this action because we understand the importance of the solutions that these businesses are creating and how using these technologies will help the government to be better informed and equipped to address social problems.

Programs can be created that enable entrepreneurs to develop the skills necessary to not only learn from business leaders and build a supportive community but to excel in their endeavours. Startups can benefit immensely from these mentorship possibilities.

According to my personal experience, mentorship initiatives have aided startups in their efforts to comprehend the local culture in which they operate and the larger ecosystem of which they are a part. Additionally, coaching is offered by experienced individuals on various crucial issues, such as locating product markets, developing marketing plans and managing finances.

To create meaningful social change, we need such programs to help innovative startups grow and develop more swiftly and successfully. Through successful partnerships in the form of mentorship, governments and startups can join efforts to influence social change and address some of the most obvious problems confronting society.

Within the early childhood development sector, for example, the growing amount of time young children are spending in front of screens is a significant and pervasive topic of concern for parents, educators and medical professionals.

Also Read: Embracing global entrepreneurship: Redefining startup success beyond Silicon Valley

In conjunction with New York University Abu Dhabi (NYUAD), the ECA analysed how COVID-19 was affecting children and families throughout the pandemic. This study clearly shows that children between the ages of zero and three have been using screens significantly more often. Many parents worldwide are worried about the impact of screens on their children.

A 2023 National University of Singapore report highlighted that 80 per cent of respondents were concerned about their child’s screen addiction, poor sleep and access to inappropriate content. While 70 per cent were worried about the lack of interaction with their child, 60 per cent were concerned about eyesight and a lack of physical activity. This is one area where collaboration between governmental agencies and tech entrepreneurs can result in advancement.

Governments have the chance to mentor entrepreneurs to assist them in creating technologies that can alleviate such concerns, as there is a lot of potentials to use technology to promote a child’s growth and well-being.

Progress can be made much more quickly and successfully by collaborating with well-known business figures, medical experts, and specialists in early childhood development and by giving them roles within startups developing the technology needed to address these problems. The driving force behind this entire relationship is effective mentoring.

AI-powered tutoring and mentoring

The rise of AI-powered Large Language Model (LLM) tools like ChatGPT also presents new mentorship possibilities. Mentorees can ask questions, request advice and receive feedback clearly, instantaneously, and at no cost.

Also Read: Is ChatGPT a great invention or is it being ‘hyped’

ChatGPT is revolutionising the way AI-powered tutoring and mentoring are done by using natural language processing and machine learning to provide a more personalised and interactive experience for mentees and mentors.

ChatGPT is designed to help them connect and engage in a more meaningful way as it uses a conversational interface to facilitate real-time conversations between the two parties. This helps to create a more natural and interactive experience, allowing for a more effective exchange of information. Additionally, governments are using AI-based matchmaking platforms to connect startups with the right mentors to seek advice and support for scaling their businesses, of course with precaution.

A supportive ecosystem that develops and grows companies enabling them to attain their full potential, can be created by effective mentorship that offers industry expertise and integrates extensive personal experience.

Although the journey won’t be without its challenges, entrepreneurs can get through them if they have an experienced shoulder to depend on. The value of direction and advice from a company’s start onwards will motivate success.

Today’s rising entrepreneurs will soon transform into the successful mentors of tomorrow, thanks to the cyclical nature of this accomplishment.

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This article was first published on June 12, 2023

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Education is one of the world’s most competitive sectors, with institutions investing up to billions of dollars in attracting students. Faced with rigorous growth targets and a shrinking pool of potential students, education marketers are spending a staggering US$2000 per student in customer acquisition cost (CAC) – one of the highest in the world. And now, unsurprisingly, the sector’s digital advertising investments have become a huge target for advertising fraudsters.

Since the very beginnings of digital ad buying, brands have been beset by scores of bots and fake traffic that syphon marketing dollars from online campaigns. As one of the industry’s endemic – and costly problems, advertising fraud is expected to cost around US$100 billion in 2023.

Today, it’s estimated that 20 per cent of ad transactions come from fraudulent sources. As such, education marketers find themselves in an increasingly Sisyphean position. Generating growth requires investment; but the more advertisers invest in digital campaigns, the more fraudsters strike.

Lifetime value

Today, universities operate as multimillion-pound businesses with huge international footprints, complex operations and rigorous growth targets. 

Also Read: How Noodle Factory addresses educator burnout with its AI-powered teaching assistants

Unfortunately, however, student enrollment numbers are dwindling, both in the Northern Hemisphere and across Asia. Added to declining enrollment numbers is heightened competition between institutions for a shrinking pool of candidates.

Thus, for student acquisition teams to meet their significant enrollment targets, a hefty paid media budget is required, which needs to work overtime.

In education and ed-tech marketing, common keywords such as ‘MBA programs’, ‘Business Schools’ and ‘Online MFA’ flood the search engines, costing an average of US$50 per click. Such a high cost-per-click (CPC) is understandable given that the lifetime value of a single student can be in the tens of thousands.

University marketers and recruiters naturally expect their investment to be well-recouped over the course of a student’s attendance. However, that return is increasingly under threat due to ad fraud. 

No real value

Keywords related to education have a significant attraction to returning users or students who are searching for specific educational tools or portals using the institution’s name. These clicks can eat up a considerable portion of the ad budget, leaving limited resources to reach out to new prospective students.

This situation can be challenging in the highly competitive higher education sector, where success metrics can become skewed due to the false sense of engagement caused by a flood of clicks from returning users or students. Such invalid traffic offers no real value to the advertiser, limiting their reach to potential new candidates.

Education marketing is a long-term game and one in which fraudsters have learned to cheat. Students spend up to years researching and choosing an education option, meaning marketers need to work with a long sales cycle and multiple digital touchpoints.

To stay level, marketers will often turn to pay-per-click retargeting campaigns that enable their institutions to reconnect with learners who revisit their websites to research and inquire. However, unfortunately, fraudulent activity can quickly deplete retargeting budgets, meaning up to 30 per cent of an ad budget may end up retargeting bots instead of actual students.

Education institutions are not the only brands at risk. From content delivery to remote tuition platforms and exam software, there are thousands of apps in the education sector vying for downloads from students and teachers. Marketers for these apps are also throwing money at driving application downloads, which in turn are targets for ad fraud. 

Also Read: How hybrid learning is revolutionising the landscape of education

Large volumes of invalid traffic can lure marketers into directing their spending towards traffic sources that may seem promising but are in fact non-opportunities. Ultimately, this can result in wasted time, effort, and budget on sources that will yield no ROI. Fraudsters not only drain education establishments and app developers of their advertising dollars but also their high-pressured resources. 

Tools, trust and transparency

Marketers have so far been slow to react to ad fraud threats. In part, this stems from poor awareness, but it is also due to Google and Apple’s impending changes to cross-site tracking. As these tracking tools face obsoletion, marketers may see little point in investing in the current tech available. 

As such, many are still to adopt third-party tools or are monitoring campaigns and metrics, plus implementing correct internal procedures. However, these measures can make a significant difference. Indeed, advanced artificial intelligence tools saved as much as US$10 billion from being diverted to fraudsters last year. 

However, technology and tools alone cannot completely solve the problem of ad fraud. Instead, education marketers need to be fully aware of the digital advertising supply chain – and that requires more trust and transparency.

Ignoring ad fraud and hoping it simply goes away is also not an option. If left undetected, marketers stand to lose millions of dollars without even realising it. To succeed in a competitive industry like education, marketers must take immediate action and implement effective measures against ad fraud. Otherwise, it will be a hard lesson for them to learn.

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This article was first published on May 8, 2023

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As the fintech industry continues its rapid evolution, South Africa is emerging as a hub for innovation and a promising investment destination for Southeast Asian markets. This burgeoning partnership between regions, poised at the forefront of a new era in fintech, opens the door to groundbreaking cross-continental collaboration, uniting Southeast Asia’s fintech expertise with South Africa’s potential for digital transformation.

A growing market with untapped potential

South Africa’s fintech landscape is a rich ground for innovation, with an estimated 19 million unbanked individuals and a significant portion of the population underutilising financial services. While over 80 per cent of adults have access to banking, only 30 per cent engage in regular transactions. This gap represents an immense opportunity for disruption through digital payment solutions.

Various companies are addressing these challenges by providing a secure, user-friendly platform that bridges traditional banking and emerging technologies like blockchain and cryptocurrency. This approach aims to empower underserved communities and facilitate digital transactions, setting a new standard for financial inclusion.

A conducive environment for growth

South Africa’s regulatory framework is uniquely positioned to support fintech innovation. The South African Reserve Bank (SARB) and initiatives like the Intergovernmental fintech Working Group (IFWG) foster an environment that balances innovation with consumer protection.

Fintech companies in South Africa have adopted a collaborative approach, working alongside traditional banks and tech giants to expand accessibility. For instance, Capitec Bank’s CapitecPay has seen remarkable adoption, demonstrating how innovation and collaboration can drive financial inclusion.

As South Africa’s coolest bank, according to the Sunday Times NextGen awards, Capitec Bank saw an increase in digital innovations that make banking simpler and more intuitive as the key driver, with a 27 per cent increase to 791 million in digital transaction volumes from Mar 2022 to Aug 2022.

This year Capitec Bank started integrating with Copilot for Power BI, exploring Copilot Studio, and graduating with Azure OpenAI. It streamlined several processes across various departments in the bank. With Copilot and Azure OpenAI Service, Capitec’s employees save one hour per week, enhancing efficiency and driving innovation across departments.

Also Read: 2024 fintech highlights: The startups dominating Southeast Asia’s financial landscape

Unlocking Southeast Asia’s potential

Southeast Asia, with its fintech powerhouses like Singapore, Indonesia, and Malaysia, has much to offer South Africa. Specifically, Singapore’s advanced digital payment systems and regulatory frameworks, can offer South Africa invaluable lessons in promoting secure and efficient transaction methods. Indonesia’s success in mobile financial services and inclusive banking practices can serve as a blueprint for enhancing financial access in South Africa.

Malaysia’s regulatory innovations in fintech, particularly in areas such as peer-to-peer lending and crowdfunding, can inspire South Africa to streamline its regulatory processes and foster a conducive environment for fintech startups. By investing in South Africa’s digital transformation, Southeast Asian investors can tap into a market primed for growth while sharing valuable expertise in financial inclusion.

The rise of Buy Now, Pay Later (BNPL) services in South Africa highlights the growing demand for flexible payment options. Services like BOS.Pay integrates such innovations, ensuring businesses stay competitive while meeting the evolving needs of consumers. This enhanced consumer experience not only aligns with current market trends but also positions businesses at a competitive advantage, offering tailored payment options to customers.

Moreover, the adoption of BNPL services plays a crucial role in fostering financial inclusion by providing individuals with limited access to traditional credit avenues the opportunity to make purchases and manage their finances in a more inclusive and user-friendly manner.

Overcoming challenges together

While opportunities abound, challenges remain. Regulatory complexities, technological disparities, and cultural differences require a nuanced approach to collaboration. Many fintech firms are well-positioned to navigate these obstacles, offering adaptable solutions that resonate with diverse markets.

A vision for global financial inclusion

The partnership between Southeast Asia’s investment acumen and South Africa’s fintech ingenuity holds immense promise. Together, these regions can unlock new levels of financial accessibility, driving digital transformation and fostering inclusive growth.

Through collaborative efforts, shared challenges can be transformed into opportunities, reshaping the landscape of fintech innovation and advancing the vision of global financial inclusion.

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The rapid evolution of artificial intelligence (AI) is transforming industries, and product management is no exception. AI has shifted from being a mere tool to becoming a strategic partner, fundamentally reshaping how products are designed, built, and delivered. With advancements in quantum computing, reasoning capabilities, and the potential advent of Artificial General Intelligence (AGI), the role of product managers is undergoing a profound transformation.

Advancements in AI technology

The AI landscape has evolved dramatically, progressing from basic algorithms to sophisticated systems capable of learning, adapting, and reasoning. Machine learning (ML) and natural language processing (NLP) are enabling AI to analyse massive datasets, extract insights, and make predictions with unprecedented accuracy. For product managers, this means access to real-time user behaviour analysis, market trends, and performance metrics that drive informed decision-making.

For example, AI-powered tools can now predict customer churn, optimise pricing strategies, and even suggest features that align with user needs. Platforms like OpenAI’s GPT models have also made it possible for product managers to generate ideas, create content, and refine product strategies faster and more effectively than ever before.

Quantum computing and AI in product management

Quantum computing is set to accelerate AI’s capabilities by solving complex problems at speeds unattainable by classical computers. While still in its nascent stages, quantum computing has significant implications for product management. For instance, quantum-enhanced AI could revolutionise optimisation tasks, such as supply chain logistics, resource allocation, or feature prioritisation in product development.

Imagine a scenario where a quantum-enabled AI system helps a product manager simulate multiple product roadmaps simultaneously, taking into account a myriad of variables such as user behaviour, competitor actions, and resource constraints. This level of computational power could reduce decision-making cycles from weeks to minutes, empowering product teams to stay ahead in hyper-competitive markets.

Also Read: The economic potential of neo-retail: The next productivity frontier

AI’s ability to reason

One of the most groundbreaking advancements in AI is its evolving ability to reason. Traditional AI systems operate based on predefined rules or patterns learned from data, but modern AI models are beginning to exhibit reasoning capabilities. These systems can simulate human-like decision-making processes, assess the context, and adapt their outputs accordingly.

For product managers, reasoning AI opens up new possibilities. It allows for more nuanced and dynamic interactions with customers and stakeholders. For instance, an AI system embedded within a product can understand the intent behind user actions and offer personalised solutions in real-time. This capability not only enhances user experience but also provides product managers with valuable insights into user preferences and pain points.

Additionally, reasoning AI can act as a co-pilot for product managers during strategic planning. It can identify potential pitfalls in product strategies, suggest alternative approaches, and even simulate the outcomes of various decisions, reducing risks and improving success rates.

The future with AGI capabilities

Artificial General Intelligence (AGI) represents the next frontier of AI, where machines possess human-like intelligence and the ability to perform a wide range of tasks across different domains. While AGI is still hypothetical, its implications for product management are profound.

AGI-powered systems could autonomously handle complex aspects of product development, from ideation to deployment. Imagine an AGI that can:

• Conduct comprehensive market research in hours rather than weeks.
• Design and prototype products autonomously based on user feedback and industry trends.
• Monitor product performance and implement iterative improvements without human intervention.

AGI could also enable hyper-personalisation, where products evolve dynamically based on individual user needs and behaviours. For product managers, this means a shift from micromanaging tasks to overseeing high-level strategy and innovation. The role may evolve to focus more on ethics, governance, and ensuring that AGI aligns with organisational and societal values.

Transforming product management processes

AI’s integration into product management is streamlining processes across the board:

• Ideation and market research: AI-driven tools like chatbots and analytics platforms can gather user insights, identify gaps in the market, and even suggest product ideas. These tools reduce the time spent on manual research and ensure data-driven decision-making.
• Roadmap planning: AI can analyse historical data, user feedback, and market trends to help product managers prioritize features and plan product roadmaps. Tools like Jira and Aha! are already incorporating AI to enhance these processes.
• Design and development: Generative AI models, such as DALL-E and Codex, enable rapid prototyping and even assist in writing code. This accelerates the development cycle, allowing teams to test and iterate faster.
• User experience and feedback: AI systems can analyse user interactions to provide real-time feedback. For example, heatmaps generated by AI can reveal which parts of an interface users find most engaging or confusing, helping designers make informed improvements.
• Performance monitoring: AI-powered analytics platforms can track product performance metrics continuously, providing actionable insights to product managers. These platforms can also predict potential issues before they escalate, enabling proactive management.

Also Read: Balancing innovation and regulation: The rise of AI in APAC’s fintech sector

Challenges and ethical considerations

While AI offers immense potential, it also presents challenges, especially as we approach Artificial General Intelligence (AGI). Ethical concerns around data privacy, bias, and decision transparency must be addressed. Product managers will need to ensure that AI systems are designed and deployed responsibly, balancing innovation with ethical considerations.

Moreover, as AI takes over routine tasks, the human aspect of product management—empathy, creativity, and leadership—will become even more critical. Product managers will play a key role in ensuring that AI technologies are not only efficient but also aligned with user needs and societal values.

The road ahead

AI is not just a tool for product managers; it’s a transformative force reshaping the domain. With advancements in quantum computing, reasoning AI, and the potential of AGI, the future of product management looks both exciting and challenging. As AI continues to evolve, product managers will need to adapt, embracing new technologies while upholding the human-centred principles that drive innovation.

In this AI-driven era, the role of a product manager will transcend traditional boundaries. It will require a blend of technical expertise, strategic thinking, and ethical stewardship to harness the full potential of AI. By doing so, product managers won’t just create better products—they’ll shape the future of technology and its impact on society.

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FazWaz, a proptech company based in Thailand, has picked a controlling stake in Lifull Connect, a leading real estate aggregation network headquartered in Japan.

This strategic move comes after Lifull Connect’s acquisition of FazWaz in 2023.

With Lifull retaining a key shareholder position, this transition marks a significant step for both organisations.

Michael Kenner, Managing Director of Lifull Connect, stated, “Capitalising on Lifull Connect’s global infrastructure and our entrepreneurial spirit, we are strategically focused on M&A and raising new capital to drive unprecedented growth. This transition is the perfect platform for achieving our vision of becoming the world’s leading PropTech company.”

Lifull Connect was established in 2019 through the merger of Trovit and Mitula, previously listed on the ASX, and has since grown into the largest aggregation network in real estate. Over the years, the company has evolved from offering aggregation services to direct engagement with property markets, serving hundreds of millions of users globally.

Also Read: FazWaz raises funding to globalise real estate e-transactions

Lifull Connect’s operations are structured across three key regions: Southeast Asia, Europe, and Latin America. In Southeast Asia, the focus is on growth through transactional platforms and property portals. Europe will continue to benefit from Lifull Connect’s established leadership in real estate aggregation. And in Latin America, the company will expand portal-driven solutions in high-growth markets.

Lifull, one of Japan’s leading proptech companies, will remain a key shareholder supporting Lifull Connect’s global mission. The transition was celebrated at Lifull’s headquarters in Japan, with both companies’ leaders reflecting on Lifull Connect’s journey.

The company is now set to accelerate its expansion through strategic mergers and acquisitions and new capital investments.

FazWaz is a real estate platform that provides brokerage services to make buying, selling, or renting a property easy. The company’s vision is to make buying a property as simple as booking a holiday.

In 2020, FazWaz raised an undisclosed amount of investment in an acceleration funding round led by CAV Investment Group, an investment company for Simon Baker, ex-CEO REA Australia and ex-Chairman of Mitula.

Both FazWaz and Lifull Connect are committed to using technology, including Artificial Intelligence, to enhance the real estate experience globally.

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Indonesia’s tech startup ecosystem experienced a significant downturn in funding during 2024, according to the ‘Indonesia Tech Annual Report 2024’ released by the startup data intelligence platform Tracxn.

The total amount raised was US$323 million, a 75 per cent drop from the US$1.3 billion raised in 2023 and a staggering 90.05 per cent decrease from the US$3.24 billion raised in 2022.

This decline indicates a challenging year for the Indonesian tech sector, with funding drying up across all stages of investment.

VC funding trends

The report highlights a consistent decline in funding across all stages:

• Late-stage funding saw the most dramatic drop, with only US$71.2 million raised in 2024. This is a 91.95 per cent decrease compared to US$884 million in 2023 and a 95.84 per cent decrease compared to US$1.71 billion in 2022.
• Seed-stage funding also experienced a sharp fall, with a total of US$30.3 million in 2024. This represents a 61.54 per cent decrease compared to US$78.8 million in 2023 and an 85.57 per cent drop compared to US$210 million in 2022.
• Early-stage funding fared slightly better but still declined to US$221 million in 2024. This is a 32.18 per cent decrease from US$326 million in 2023 and an 83.24 per cent drop compared to US$1.32 billion in 2022.

Looking at the funding trends in the second half of 2024 (H2 2024), the total of US$107 million was 50.39 per cent lower than the US$215.7 million raised in the first half of 2024 (H1). This also represents an 86.07 per cent drop from US$768.3 million raised in H2 2023.

Also Read: SEA fintech sector faces 23% funding drop in 2024; payments and crypto shine

The fourth quarter of 2024 (Q4) saw a slight increase of 1.89 per cent with US$54 million compared to US$53 million in Q3 2024 but is still 81.36 per cent lower compared to the US$289.8 million raised in Q4 2023. These figures highlight a continuous downward trend in funding for the Indonesian tech sector throughout 2024.

Sector-wise performance

Despite the overall downturn, some sectors performed better than others in attracting investment in Indonesia:

Fintech, enterprise applications, and insurtech were the top-performing sectors in 2024.

• Fintech received US$189.5 million in funding, which is still a significant decrease of 68.45 per cent compared to US$600.5 million in 2023 and a drop of 89.27 per cent compared to US$1.8 billion in 2022.
• Enterprise applications secured US$94.6 million in 2024, a 32.65 per cent decrease compared to US$140.5 million in 2023 and a 90.83 per cent drop compared to US$1 billion in 2022.
• Insurtech stood out with a 431.58 per cent increase in funding to US$50.5 million in 2024, compared to US$9.5 million in 2023, although this was still a 28.39 per cent drop compared to US$70.5 million in 2022.

IPOs and exits

The report reveals a decline in exit activity as well:

Only one company, Topindoku, went public in 2024, raising US$34.9 million.

There were no new unicorns created in 2024 compared to one in 2023.

Tech companies in Indonesia saw nine acquisitions in 2024, a 25 per cent decrease from 12 in 2023 and a 55 per cent decrease from 20 in 2022.

Key acquisitions include IDEAL, RajaOngkir, and Gredu.

The average funding raised before the IPO was only US$6 million, a significant drop from US$514 million in 2023.

Year-on-year funding trends

The overall funding trend shows a sharp decline:

The compound annual growth rate (CAGR) for funding over the past three years is -54 per cent and over the past five years is -32 per cent. The number of funding rounds also decreased, from 58 in 2024 to 97 in 2023, a 40 per cent drop.

First-time funded companies also declined to 24 in 2024 from 34 in 2023, representing a 29 per cent decrease.

Series A+ rounds dropped from 48 in 2023 to 29 in 2024, a decline of 39 per cent.

City-wise funding trends

Also Read: 2024 fintech highlights: The startups dominating Southeast Asia’s financial landscape

Funding is heavily concentrated in Jakarta, which accounts for 85.36 per cent of all funding in Indonesia:

• Jakarta received the lion’s share of funding with US$275 million in 2024.
• Klaten was a distant second with US$20 million, followed by Cilandak with US$17.5 million.
• Other cities, such as Yogyakarta (US$3.5 million) and Bandung (US$2.5 million) received significantly less funding.
• Jakarta also dominates in cumulative funding with US$22.9 billion, with Tangerang at a distant second with US$1 billion in all-time funding.

Top investors

The report identifies key investors in the Indonesian tech ecosystem:

• East Ventures, AC Ventures, and Alpha JWC Ventures were the overall top investors.
• Antler, 500 Global, and East Ventures were the top seed-stage investors.
• Argor Capital Management, Openspace Ventures, and MUFG Innovation Partners were the top early-stage investors.

Among VCs, East Ventures led the most number of investments with five rounds, while 500 Global added 24 new companies to its portfolio.

Conclusion

The Indonesian tech startup ecosystem faced considerable challenges in 2024, with a significant decrease in funding across all stages and a decline in exits. While some sectors, like insurtech, showed positive growth, the overall trend indicates a period of adjustment for the market. The concentration of funding in Jakarta remains prominent, highlighting the need for broader regional development in the tech sector. The lack of new unicorns and a decrease in acquisition activities reflect the difficult conditions Indonesian tech companies face.

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To successfully navigate the ‘Valley of Death,’ it is crucial to comprehend its intricacies and understand why this journey is an unavoidable part of the growth trajectory for most climate tech startups.

Hardware: The heart of climate solutions

It is unsurprising that the most promising climate tech startups are concentrated on hardware. Climate change is a tangible, real-world challenge that necessitates physical solutions. While software can facilitate optimisation in human interaction with the physical environment, it cannot fundamentally address issues if the underlying hardware infrastructure remains dependent on fossil fuels.

As a prominent climate-focused investor notes, “Climate cannot be solved with SaaS alone.” Startups focused on hardware require substantial resources and extensive timeframes, rendering them high-risk ventures for investors.

A report by Congruent Ventures and Silicon Valley Bank surveyed over 50 experts to identify key players in North American climate tech. Nearly all startups focused on hardware, defying the typical VC preference for software. Most of the top 50 companies were in manufacturing, materials, and energy, with agriculture and food underrepresented despite their significant carbon footprint.

According to TechCrunch, early-stage climate tech startups often succeed in proving their technology at a small scale but face substantial obstacles in commercialisation, primarily due to the prohibitive costs of constructing a first-of-its-kind facility. In the Congruent/SVB report, 28 per cent of companies raised less than US$50 million, while an equivalent percentage secured over US$500 million—indicating that successfully crossing the Valley of Death can yield significant rewards.

Nonetheless, the commercialisation journey is prolonged; climate tech startups often require a decade or more to mature, especially when hardware development and refinement are involved.

Hardware is hard: Why the fallen… fell?

The commercial Valley of Death has claimed numerous climate tech startups, with Running Tide, Arrival, and Ambri being among the recent casualties.

Running Tide, an ocean carbon removal company, faced a dramatic decline in the demand for carbon credits. Despite partnerships with major corporations such as Microsoft and Shopify, and the successful removal of 25,000 tons of CO₂, the declining voluntary carbon market undermined the company’s capacity to sustain its operations.

Electric vehicle manufacturer Arrival encountered challenges of its own. Burdened by development delays, macroeconomic pressures, and unsuccessful financing attempts, the company grappled with overwhelming liquidity issues. Despite aggressive cost reductions and workforce layoffs, Arrival was ultimately unable to secure sufficient capital to surmount these obstacles.

Battery innovator Ambri, known for its liquid-metal battery technology, also succumbed to the Valley of Death. Ambri’s attempt to raise US$300 million for manufacturing faltered after losing its lead investor, and a last-resort US$50 million bridge loan failed to materialise. Though this particular case has made a comeback after filing for Chapter 11 bankruptcy, successfully reviving its operations in August.

Also Read: Funding the green transition: Southeast Asia’s climate tech leaders of 2024

Each of these cases illustrates the difficulties inherent in scaling hardware-centric operations without stable financial backing. High costs, fluctuating demand, and missed funding opportunities were significant contributors to their respective failures.

Why must the valley be bridged?

European venture capital firms Speedinvest, Planet A, and Norrsken VC have created the Climate Hardware Playbook—a guide to address common issues in fundraising, management, and product development for climate hardware startups. The playbook is based on interviews, surveys with 118 investors and 142 founder participants, covering 3600 climate hardware funding announcements in Europe between 2015 and 2023. It presents three main arguments for why bridging the Valley is critical.

First, inaction would subject the future generations to a more challenging existence. Second, there has never been a more opportune time to bridge the gap. We are at an inflection point where tighter regulation, declining cost curves, and corporate climate targets are creating a level playing field for climate hardware. With half of global GDP and a quarter of carbon emissions under net zero targets, companies—particularly those in hard-to-abate sectors—are under immense pressure to innovate and reduce emissions.

Third, despite limited data, current trends suggest promising returns for climate hardware solutions, as evidenced by recent exits of hardware-focused climate tech companies. Tesla’s growth, from a 2010 IPO valuation of US$1.7 billion to a major market player, and Ginkgo Bioworks’ US$1.1 billion acquisition by Occidental in 2023, are notable examples.

Additionally, Energy Impact Partners’ Climate Index, which tracks both software and hardware companies focused on sustainability, has outperformed the NASDAQ by approximately 2.8 times, underscoring the potential of investments in this sector.

From a portfolio perspective, incorporating hardware investments can mitigate risks inherent in a software-centric approach and balance investment timelines. Groundbreaking hardware innovations, often protected by patents, provide stability that retains value during market fluctuations—particularly attractive in today’s volatile economic climate.

Moreover, hardware may present unique entry points compared to more saturated software markets. Fewer venture capital funds invest in hardware, leading to less competition for deals. While SaaS valuations soared over the past five years, increasing 6.5 times from 2015 to 2021, hardware investments have remained underexplored, presenting a more favourable risk-return profile.

Consequently, the funding ecosystem is evolving, with new stakeholders addressing gaps in the climate tech funding stack. This includes infrastructure and growth-stage climate funds like General Atlantic’s Beyond Net Zero, KKR’s Global Climate Fund, and specialised real asset funds such as Generation’s Just Climate.

Climate tech venture capital firm Earth Venture Capital is also doubling down on climate tech, raising its second fund just two years after debuting Fund I. Defying expectations, Earth Venture’s first fund is among the rare 10% of VC funds launched in 2022 to generate positive returns, according to data from Carta.

Also Read: How to navigate the investment opportunity in climate tech sector

“Earth VC is building bridges across the abyss—connecting outlier deep-tech startups with the untapped potential of Emerging Asia, a region projected to contribute over 50 per cent of global growth by 2030. By targeting the dual frontiers of deep-tech and climate innovation, we are addressing a US$3.5 trillion market opportunity in sustainable technologies. In this race against time, our role extends beyond funding; we actively guide startups through the Valley of Death, bridging financial and market gaps to accelerate adoption,” stated Tien Nguyen, Founding Partner at Earth VC.

Atoms or bits: The future lays in equilibrium

Have we been overly focused on the digital realm at the expense of tangible innovations? Peter Thiel, one of the founders of PayPal, certainly believes so. He recalls that, in the 1960s, technology encompassed advancements across multiple domains—computers, rockets, supersonic planes, and the Green Revolution, among others. Today, “technology” is often synonymous with information technology, resulting in a narrow focus on software while neglecting the physical innovations that create substantive real-world impact.

Thiel emphasises the stagnation observed in many physical domains—from outdated subway systems to slower modes of transportation—and believes we need to reignite our ambition for progress in the material world. Genuine technological advancement necessitates more than writing code; it requires breakthroughs in energy, biotechnology, and manufacturing to address pressing real-world challenges.

The future of climate tech hinges on striking a balance between “atoms” and “bits”—leveraging the potential of digital tools alongside the tangible progress achievable only through physical technologies. For climate tech to cross the Valley of Death and lead us toward a sustainable and prosperous future, it will take visionary investors, determined founders, and a renewed focus on building the hardware our world so urgently requires.

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Kearney’s Global Business Policy Council has released its 10th annual report, World in Flux: Global Wildcards 2025–2030, offering insights into five transformative forces that are poised to redefine the global operating environment for businesses and governments over the next five years.

The report explores key disruptions and opportunities, emphasising the growing influence of the Global South, shifting trade dynamics, tech advancements, and the rising impact of powerful individuals in shaping global agendas.

One of the primary themes is the rise of the Global South. Middle powers such as India, Indonesia, and Brazil, along with nations in Africa such as Egypt, Ethiopia, and South Africa, are gaining greater influence as their economies expand. This trend presents businesses with both challenges and rewards, including access to younger, more productive workforces and emerging production hubs.

The report also predicts heightened tariff wars in international trade policy, with tit-for-tat measures likely to intensify. While these could restructure the global economy, the associated risks—slower growth, inflationary pressures, supply chain disruptions, and increased costs—pose significant concerns for businesses and consumers alike.

Technological shifts feature prominently, with the report examining their dual role in the fight against corruption. Emerging technologies offer tools to combat corruption but can also exacerbate it by creating new vulnerabilities in the information environment.

Also Read: Will climate change force us to re-imagine travel in the future?

This year’s report also revisits themes from its 2024 edition, including biodiversity loss, industrial policy, rapid transit, e-waste value recovery, and digital twin adoption. Produced by Kearney’s Global Business Policy Council, the report aims to help leaders anticipate emerging trends and navigate the uncertainties of an increasingly complex world.

As these forces unfold, the report underscores the importance of innovation and foresight in adapting to a rapidly changing global environment.

Why emerging tech is a double-edged sword

Emerging tech are shaping the future by acting as both drivers of change and potential solutions to some of the world’s most pressing challenges, according to the report. The dual nature of these tech highlights their disruptive impact and transformative potential across key sectors.

One prominent area of focus is the rising global electricity demand, fuelled by rapid adoption of technologies such as AI and EVs. The report identifies AI-driven data centres and EVs as significant contributors to this surge, necessitating urgent investment in power grid modernisation. By 2030, electricity demand from EVs alone is projected to increase by an astonishing 630 per cent, while the energy consumption of AI data centres is expected to grow substantially.

However, emerging tech are not just creating challenges; they also offer innovative solutions. Advanced transmission technologies (ATTs) can boost the capacity of existing power grids, enabling better integration of renewable energy.

Also Read: Need of the hour: How agritech platforms can protect farmers from climate change

Small modular reactors (SMRs), a new generation of nuclear reactors, are being explored by companies such as Google and Amazon to power data centres sustainably. Other promising tech include geothermal energy and digital twins—virtual models that enhance grid management and operational efficiency.

Beyond infrastructure, these tech are making strides in governance and societal impact. While tools such as generative AI can perpetuate disinformation, they are also being employed to counter corruption. AI applications are already helping to identify risks in public procurement, flag potentially corrupt contracts, and estimate behavioural risks among civil servants.

Emerging tech are also empowering individuals in unprecedented ways. The rise of “super-empowered individuals” has been accelerated by social media platforms such as X (formerly Twitter), enabling figures such as Elon Musk and Greta Thunberg to influence industries and drive global movements. These platforms amplify voices and create opportunities for individuals to shape economic and environmental landscapes.

As emerging technologies continue to evolve, their role as both disruptors and enablers becomes increasingly clear. Governments and businesses must navigate this complexity, leveraging technological advancements to address challenges while mitigating associated risks. Balancing these dimensions will be critical to harnessing the transformative power of innovation for the benefit of society.

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Image Credit: Wes Hicks on Unsplash

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On January 21, Straits Times published a list of Singapore’s fastest-growing companies of 2025 as a result of its collaboration with Statista. Coliving company Casa Mia came in fourth place with a growth rate of 2,675.37 per cent.

“Many coliving brands have been acquired or disappeared from Singapore with the exception of Casa Mia. We managed to stay healthy and strong,” says Casa Mia CEO and Founder Eugenio Ferrante in a call with e27.

“We focus on making sure that we are sustainable from a financial perspective from the beginning; we did not really rely on a lot of external capital for growth.”

Singapore’s appeal as a vibrant hub for young professionals and students from across the globe has catalysed the success of Casa Mia, which was founded in 2019. Spearheaded by Ferrante, the company weathered the challenges of the pandemic, used the period to refine its operational framework, and has since emerged as a significant player in Singapore’s accommodation market.

From its inception, Casa Mia recognised and catered to a growing need: affordable, flexible, and community-focused living solutions for individuals early in their careers or academic pursuits. Ferrante highlighted Singapore’s allure to people from neighbouring Malaysia and Indonesia, as well as further afield from Europe and other regions. Yet, for those arriving on limited budgets, the city’s notoriously high living costs make shared accommodation a necessity.

Also Read: Lewis Ng replaces Hari V. Krishnan as PropertyGuru CEO

Casa Mia’s solution offers more than just affordability. “We make it easier with a more consistent experience,” Ferrante explained, contrasting their model with traditional room rentals.

With curated homes situated in vibrant neighbourhoods such as River Valley, Casa Mia appeals to its demographic by ensuring proximity to amenities such as cafés, restaurants, and transport. Additionally, the company fosters a sense of community through initiatives encouraging interactions among its residents, who typically share homes with four—to six-bedrooms.

Casa Mia’s growth trajectory has been notable which resulted in its place in the Straits Times ranking. Doubling its business year-on-year during its early years, the company said that it achieved a 30 per cent revenue increase in 2024, culminating in an annualised revenue of US$8 million.

This expansion aligns with Singapore’s post-pandemic recovery and the rise of hybrid work models, which Ferrante identified as a key trend.

“We have ensured our homes accommodate this shift,” he says, referring to rooms designed with work-from-home needs in mind. High-speed internet, ample natural light, and designated desk spaces are now standard features in their properties. Sustainability has also become a focus, with eco-friendly practices embedded across their operations.

A meticulous screening and matching process underpins Casa Mia’s service. “We’ve always been focused on 20- to 30-year-old young professionals and students,” Ferrante shares.

Also Read: EQT completes PropertyGuru acquisition, seeks to strengthen its position in SEA proptech sector

Prospective tenants undergo a questionnaire, with only around 25 per cent progressing to the next stage. The goal is to create harmonious living arrangements, leading to longer stays—an average of 14 months, which Ferrante says is twice the industry norm in Singapore.

Cautious expansion strategy

Despite its success, Casa Mia has opted for a conservative approach to regional expansion. While markets across Southeast Asia are being evaluated, Ferrante stresses that their current model is uniquely suited to Singapore’s environment.

“We have been very cautious,” he notes, adding that the company is focusing on growing its local portfolio.

The recent launch of two new homes in River Valley marks a return to its roots while reinforcing its presence in a sought-after area. Discussions on broader expansion remain in exploratory phases, with Ferrante promising updates as opportunities solidify.

This strategic restraint reflects an understanding of the nuances that shape the coliving market. Factors such as regulatory frameworks, cultural preferences, and economic conditions vary significantly across countries, making a one-size-fits-all model unfeasible.

Ferrante also shares the company’s user acquisition strategy. Ninety per cent of its tenants discover the company online, either through search engine optimisation, digital advertising, or organic traffic. The remaining 10 per cent arrive via referrals from past or current members, underscoring the strength of the community and the satisfaction of its residents.

Also Read: The intersection of tech and climate change: 5 key forces that will redefine the global market

Notably, Casa Mia eschews traditional real estate agents, relying instead on its in-house processes and technology. This streamlined model has enabled the company to maintain control over the customer experience and reduce overheads, ultimately benefiting its tenants.

As Singapore continues to draw global talent, Casa Mia is well-positioned to capitalise on this influx. The company’s emphasis on community, sustainability, and adaptability reflects broader trends shaping the modern housing market.

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Image Credit: Casa Mia

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In a country where financial constraints often tether aspirations, a new fintech startup has emerged to offer a lifeline.

Fly0, founded by serial entrepreneur Mehedi Hasan with his co-founders Shah Arafat Hossain and Dr Rahman, is reimagining travel financing in Bangladesh, particularly for those excluded from traditional banking systems.

A social enterprise with a mission

Fly0 is a social enterprise driven by the goal of dismantling financial barriers that prevent millions of Bangladeshis from accessing affordable and ethical travel solutions. From migrant workers and Hajj pilgrims to individuals seeking medical treatment abroad, Fly0 aims to empower communities to achieve life-changing goals.

Also Read: Singapore neobank IN Financial Technology acquires 500 Global-backed MyCash

“With 85 million non-credit card holders in Bangladesh, traditional ‘buy now, pay later’ (BNPL) services simply don’t work. I wanted to create a system that uses alternative financial data to extend credit responsibly and ethically,” explains Hasan, whose previous startup, MyCash Online, was acquired by Singapore-based neobank IN Financial Technology (INFT).

Fly0 was conceived to bridge the gap between financial limitations and essential travel needs. The platform, launching next month, promises a transformative approach to travel financing.

Shariah-compliant and transparent financing

Fly0 is built on Islamic finance principles, ensuring its services are ethical, inclusive, and free of interest (riba). Instead of charging interest, the platform earns revenue through pre-arranged commissions with travel providers, such as airline ticket wholesalers and hotels.

Customers can finance essential travel—such as Umrah pilgrimages, medical trips, and migrant work journeys—through fixed monthly instalments with no hidden fees or penalties.

“Our model prioritises affordability, transparency, and Shariah compliance,” says co-founder and country head Arafat Hossain. “We provide interest-free financing for essential travel needs, enabling customers to focus on their journeys without the financial burden of upfront costs.”

A cornerstone of Fly0’s operations is its proprietary AI-powered credit engine, which evaluates alternative financial data such as mobile financial service (MFS) transactions, utility bill payments, and remittance receipts. This approach enables it to assess creditworthiness without relying on traditional credit scores, empowering millions of Bangladeshis without access to credit cards.

Also Read: Singapore neobank IN Financial Technology acquires 500 Global-backed MyCash

By using predictive modelling and dynamically adapting to ongoing data collection, the system reduces human bias in credit assessments. The platform also ensures transparency by clearly communicating the criteria used for credit evaluations, helping customers build a digital financial footprint.

Meeting essential travel needs

Fly0 focuses on financing essential travel categories:

• Migrant workers: Addressing high upfront travel costs with its ‘FlyNow, PayLater’ model.
• Hajj and Umrah pilgrimages: Offering interest-free plans to help pilgrims fulfil their spiritual obligations.
• Medical travel: Facilitating fast credit approvals for urgent trips and alleviating financial strain through flexible payment plans.

Fly0 has partnered with over 100 airlines and 6,000 hotels to provide users with extensive travel options, easy instalment plans, and special discounts. The company also plans to expand its services to include group travel packages and medical assistance in the near future.

Navigating challenges in a complex market

Implementing AI-driven financial solutions in Bangladesh hasn’t been without hurdles. Issues such as low digital literacy, limited standardisation of mobile financial data, and regulatory challenges required innovative solutions. Fly0 has overcome these obstacles through careful planning, strategic partnerships, and a commitment to ethical practices.

“By focusing on transparency, ethical lending, and Shariah compliance, we’ve earned the trust of our customers and partners,” says Arafat Hossain.

A vision for regional expansion

Looking ahead, Fly0 plans to expand to Pakistan and Malaysia in 2025, with further ambitions to enter the Middle East. The company aims to facilitate cross-border payments for families and essential travel while promoting financial inclusion on a larger scale.

Also Read: 20 game-changing startups driving Bangladesh’s innovation wave

Its broader mission is clear: to drive social impact by empowering marginalised communities, fostering financial mobility, and providing opportunities for individuals to realise their potential.

Fly0’s journey is a testament to how innovation, ethics, and a deep understanding of local needs can converge to create meaningful change. By enabling ethical and affordable travel financing, Fly0 is not just transforming how Bangladeshis travel—it’s empowering them to explore new horizons and achieve their dreams.

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