Vietnam is one of Southeast Asia’s most exciting and dynamic markets.

With its fast-growing economy, youthful population, and rapid digital adoption, Vietnam offers fertile ground for innovation. The country’s tech-savvy workforce and thriving entrepreneurial ecosystem make it an attractive destination for startups to explore new markets and forge strategic partnerships.

Why Vietnam?

Vietnam’s startup ecosystem has been gaining significant traction in recent years. The country has climbed the global startup rankings from 58th to 56th in 2024 (Hoa, 2024), and its economy continues to grow at an impressive rate. In 2022, Vietnam experienced the highest growth in Southeast Asia’s digital economy, with a remarkable 28 per cent increase in the Gross Merchandise Value from US$18 billion in 2021 to US$23 billion in 2022 (Dharmaraj, 2022).

Corporate innovation in Vietnam

One of the key challenges facing Vietnam’s innovation ecosystem is the limited funding from large corporations, which hinders the growth of startups and the overall development of the ecosystem. 

Startups often begin by addressing niche markets or innovating in areas that larger players overlook. However, as they grow, they inevitably find themselves up against established, well-resourced corporations.

Rather than viewing these corporations solely as competitors, startups can adopt a collaborative approach to accelerate growth. Partnering with corporations provides access to broader networks, distribution channels, and resources. These collaborations allow startups to tap into corporations’ extensive resources, including their established customer base, distribution networks, and operational expertise, which can significantly reduce the time and effort required to scale.

For corporations, the benefits of such alliances extend beyond access to innovation; they gain fresh perspectives that can help challenge the status quo and encourage out-of-the-box thinking, which is often difficult to foster internally. Startups, being agile and resourceful, bring cutting-edge solutions to traditional industries, enabling corporations to stay competitive in an ever-evolving market. In turn, startups can leverage a corporation’s credibility and market influence to increase their visibility, acquire larger contracts, and attract more investments.

Furthermore, these partnerships can create synergies where corporations provide capital and operational infrastructure, while startups contribute innovation and flexibility. This co-creation model can lead to the development of new products, services, and business models that neither party could have achieved independently. By focusing on collaborative growth, rather than competition, startups can enhance their chances of long-term success, with corporations playing a pivotal role in their accelerated trajectory toward profitability and market leadership.

Also Read: All you need to know about the fintech boom in Vietnam

The Open Innovation & Technopreneur Institute (OITI) promotes technological entrepreneurship by encouraging collaboration between startups, industries, and research institutions through open innovation. It offers educational programs, mentorship, and incubation to help entrepreneurs scale tech-driven businesses across sectors such as fintech, healthtech, and greentech. Ultimately, strategic partnerships create a win-win scenario: startups gain the scale and market access they need to grow, while corporations stay relevant and innovative in an increasingly disruptive landscape.

Case study

An example is Society Pass’ acquisition of Gorilla Networks marks a strategic move that benefited both companies by combining their strengths and resources to thrive in the rapidly evolving tech ecosystem. Society Pass, a Vietnamese tech company, has established itself as a key player in the Southeast Asian market by focusing on building a strong network of technology-driven businesses. 

By acquiring Gorilla Networks, a Web3 Mobile Virtual Network Operator (MVNO), it not only diversified its portfolio but also gained access to the disruptive innovations and technologies that Gorilla Networks brought to the table.

For Society Pass, the acquisition allowed them to break into the Web3 and blockchain-enabled telecom space, which is a growing area of interest for tech-forward companies. The Web3 component of Gorilla Networks’ offerings introduced decentralised and user-centric telecom services, creating new revenue streams for Society Pass and enabling them to capture a niche market segment. This move also expanded Society Pass’ technological capabilities, providing them with a unique edge over competitors and positioning them as a leader in integrating next-gen technologies with traditional services.

On the other hand, Gorilla Networks greatly benefited from the acquisition as it gained access to the broader resources, operational infrastructure, and market reach of Society Pass. With a larger company backing its operations, Gorilla Networks could scale its innovative offerings—such as token-based mobile services—much faster than it could independently. 

The infusion of capital, human resources, and strategic guidance from Society Pass enabled Gorilla Networks to accelerate product development, enhance customer acquisition efforts, and expand its market footprint beyond Singapore into the larger Southeast Asian region. In fact, Gorilla Networks initiated their Vietnam entry through the Global Innovation Alliance (GIA) Ho Chi Minh City Acceleration Programme supported by EnterpriseSG and Singapore Economic Development Board. The GIA is one of the many types of support that Singapore-based startups can tap into.

Also Read: How early-stage deep-tech startups can attract and retain the right talent

The acquisition of Gorilla Networks by Society Pass created a more robust and diversified entity that could better withstand market fluctuations, embrace technological disruptions, and capture emerging opportunities in the region’s fast-growing digital economy. It served as a growth catalyst for both Society Pass and Gorilla Networks, allowing each to leverage the other’s strengths to achieve long-term success and cement their positions within the competitive tech ecosystem.

What’s next?

OITI will be organising Open Innovation Day on 25-26 October, 2024, in Ho Chi Minh City, where Quest Ventures is a co-organiser among others. Startups that are interested in working in corporations in Green Agriculture, Smart Industry, and Green Urban Living sectors are highly encouraged to attend. Who knows? This could be the seed of the next success story after Gorilla Networks.

This article is co-authored by Avryl Tan,Venture Capital Analyst at Quest Ventures

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Japanese proptech startup estie has closed a JPY 2.8 billion (approximately US$20 million) Series B round of investment led by Vertex Growth, a growth-stage VC fund anchored by Vertex Holdings, a subsidiary of Temasek, and Development Bank of Japan (DBJ).

Existing investors Globis Capital Partners, University of Tokyo Edge Capital Partners, and Global Brain also participated.

Also Read: Real estate sales development: Unlock the power of partnership and collaboration

estie will use the money to accelerate its multi-product strategy, facilitate strategic M&As, and recruit top talents. The proptech venture also plans to expand its presence in Southeast Asia, starting with Singapore.

Japan boasts one of the world’s largest real estate markets, anchored by Tokyo (the city with the largest real estate asset value). Japan ranks third in the international commercial real estate market after the US and China.

Despite the large asset pool, Japan’s access to global capital is limited by data availability that foreign investors are accustomed to elsewhere.

According to JLL’s Global Real Estate Transparency Index 2024, Japan ranks thirty-first when it comes to market fundamentals data availability, quality, depth and transparency.

Founded in 2018, estie provides real estate developers, institutional investors, and others with services that facilitate industry transactions. By solving the data distribution challenges faced by the commercial through digitalisation, the real-estate industry solves a series of business issues by providing multiple interoperable services simultaneously.

Also Read: Former top Vertex exec Jiang Honghui joins 17LIVE Group as CEO

Tam Hock Chuan, General Partner at Vertex Growth, said: “What Bloomberg has achieved for the financial industry, we believe estie is doing for the Japanese real estate sector.”

“Despite the volatility in the SaaS industry, estie, has consistently delivered high growth rates, best-in-class efficiency metrics, and outstanding customer satisfaction scores. Given its success in Japan, we are confident this business model can be adapted to various markets across Southeast Asia.”

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ChatGPT’s parent, OpenAI, has established a presence in Singapore and plans to open an office later this year to capitalise on the growing demand for advanced artificial intelligence tools in the Asia Pacific.

Singaporeans are some of the highest per capita users of ChatGPT worldwide, with the number of weekly active users doubling since the beginning of the year.

Also Read: With AI comes huge reputational risks: How businesses can navigate the ChatGPT era

The tech giant has already started building a team in the city-state to support customers and partners throughout the region and strengthen relationships with local and regional governments, businesses, and institutions. As part of the plans, it has appointed Oliver Jay as Managing Director for International. Based in Singapore, Jay will oversee OpenAI’s international operations and global expansion.

OpenAI will work closely with Singapore government partners, such as the Economic Development Board (EDB), to support the country’s local AI ecosystem and help shape an AI-powered future that benefits everyone.

As a first step in that commitment, OpenAI has partnered with AI Singapore to make advanced AI more widely accessible across Southeast Asia.

Through the partnership, OpenAI will provide up to US$1 million to help develop resources, including open datasets, to ensure AI models are better suited to Southeast Asia’s diverse languages and cultures.

“Singapore, with its rich history of technology leadership, has emerged as a leader in AI, recognising its potential to solve some of society’s hardest problems and advance economic prosperity. We’re excited to partner with the government and the country’s thriving AI ecosystem as we expand into the APAC region,” CEO Sam Altman said.

“OpenAI’s decision to establish a presence in Singapore, its hub in APAC, underscores the strength of our growing AI ecosystem, fuelled by the government’s investments in AI talent, AI compute and AI demand by enterprises. As part of Singapore’s National AI Strategy 2.0, Digital Industry Singapore (EDB, ESG and IMDA) fosters collaboration between AI innovators and Singapore-based enterprises so that they can harness innovation for productivity and growth. We look forward to the multiplier effects of this move, sparking new collaborations and bringing more leading-edge AI companies to our region,” said Jacqueline Poh, MD of the EDB.

Also Read: AI assistant or replacement? A PR pro’s take on using ChatGPT

On November 21 this year, OpenAI will host its first Developer Day in Singapore, bringing together the region’s flourishing community of developers and startups building AI’s future.

Last week, OpenAI raised US$6.6 billion from investors, including Thrive Capital, Khosla Ventures, Microsoft, Nvidia, and SoftBank, at a US$157 billion valuation.

The New York Times recently reported that OpenAI is planning to raise the price of individual ChatGPT subscriptions from US$20 per month to US$22 by the end of the year. A steeper increase will come over the next five years; by 2029, OpenAI expects it’ll charge $44 per month for ChatGPT Plus.

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Indonesian e-commerce giant Bukalapak has responded to a report by local media about a potential acquisition by Chinese e-commerce company TEMU, which circulated earlier this week.

In a letter to the Indonesia Stock Exchange (IDX) reviewed by e27, the company stated that it was “not aware of any information regarding its acquisition plans by TEMU (a China-based company).”

“In relation to the aforementioned response, the company will disclose information in accordance with applicable laws and regulations once it receives verified details regarding the acquisition plan,” wrote Bukalapak Corporate Secretary Cut Fika Lutfi.

It also commented on Monday’s share price increase, which coincided with the release of the report.

“The increase in share price on October 7 reflects the market’s reaction to unverified information regarding the company’s acquisition plans, which has not been confirmed by the company’s management. Market speculation is beyond the company’s control,” she said.

Also Read: Vertex Growth invests in Japanese proptech startup estie’s US$20M round

“Therefore, the company advises public shareholders and investors to observe official disclosure of information by the company before making any investment decisions on the company.”

In July, Bukalapak reported that its revenue for the second quarter grew six per cent quarter-over-quarter to IDR1.2 billion (US$76.45 million).

The company stated that its adjusted EBITDA for the second quarter was IDR41 billion, which improved by IDR84 billion year over year.

In the same month, DealstreetAsia wrote that Singapore’s sovereign wealth fund GIC considered selling its minority stake in Bukalapak.

According to the report, the discussions are in the preliminary stages. GIC has not yet decided whether to hire bankers for the sale or handle it internally.

GIC and Bukalapak declined to comment on the potential divestment when contacted by DealstreetAsia.

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Image Credit: Bukalapak

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In Western markets like the US and Europe, startups often prioritise fast scaling because customers are ready to pay for innovative products. But in Southeast Asia, things work differently. Founders can’t simply assume that their market will pay, even when there’s interest in the product. We’ve seen many startups in these countries present enormous market sizes, only to realise later that a large portion of the market isn’t ready to convert into paying customers.

For example, in Indonesia, startups need to carefully assess how much their target customers are actually willing to spend. It’s a diverse market with both high-income urban populations and lower-income rural areas, meaning the ability to pay varies greatly. In Vietnam, the story is similar, where consumer behaviours and preferences can differ widely between regions, making it critical for startups to understand local nuances before scaling too quickly.

Why profitability comes first in Southeast Asia’s largest markets

While growth is always the goal, startups in Vietnam and Indonesia must focus on profitability from the start. In Indonesia, particularly, many founders discover that while users are willing to try out a product or service, converting them into paying customers is a different challenge.

A great example is e-commerce, where the competition is fierce, and profitability margins can be razor-thin. The challenge isn’t just attracting customers but converting them into paying users who return frequently. Startups must invest in building trust with their customers, which often takes time and localised approaches.

Also Read: Challenges of AI development in Vietnam: Funding, talent and ethics

Similarly, in Vietnam, where many startups are targeting sectors like fintech and edutech, we’ve seen incredible enthusiasm from founders, but many still struggle to present a clear path to profitability. We’ve spoken with some companies with impressive growth stories, but when asked about long-term monetisation, the answers were vague. It wasn’t enough to have thousands of users—they needed to prove they could convert free users into paying subscribers by offering something valuable that couldn’t be found elsewhere.

Gen AI: Expanding opportunities

Generative AI (Gen AI) is opening up new possibilities in Southeast Asia, offering startups a chance to innovate in previously unimaginable ways. In Vietnam’s agricultural sector, for instance, where traditional farming methods are still widely used, AI-driven tools are being employed to help farmers optimise crop yields and reduce waste. This not only boosts productivity but also makes farming more profitable, enabling agritech startups to tap into previously underserved markets.

In Indonesia’s healthcare sector, Gen AI is helping bridge the gap in underserved regions. With limited access to medical professionals, AI-powered diagnostic tools are now assisting doctors in providing remote consultations. Healthtech startups are using AI to expand their reach into rural areas, offering affordable services that were previously inaccessible. But while AI opens doors to larger markets, startups still need to focus on building sustainable business models. AI can help lower costs and drive efficiency, but it won’t automatically turn potential customers into paying ones.

While these innovations are exciting, founders in both Vietnam and Indonesia should remain cautious. Even though Gen AI has the potential to expand the Serviceable Available Market (SAM) by reaching underserved populations, it doesn’t guarantee profitability. Founders still need to keep a close eye on costs and ensure that their products or services provide real, tangible value to paying customers.

Also Read: Report: 46% of Indonesian businesses unprepared for AI-generated fraud despite risk knowledge

The path forward for startups in Vietnam and Indonesia

The key takeaway for founders is that growth and profitability must go hand-in-hand. While the opportunity to scale is immense—especially with the help of technologies like Gen AI—startups need to stay focused on proving their value early on. Building a strong foundation of paying customers, understanding local market dynamics, and using AI to drive efficiency are crucial steps toward sustainable success.

Investors are watching closely, and the startups that thrive in these markets will be the ones that can balance innovation with sound financial strategies. Whether you’re operating in Vietnam’s booming tech sector or navigating the dynamic Indonesian market, a clear path to profitability will always be the cornerstone of long-term success.

This article is co-authored by Karina Sulistyo, Senior Associate, Investments at Capria Ventures.

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Dear reader,

The Southeast Asian startup ecosystem has faced significant headwinds in 2024, with total funding dropping by 59% in the first nine months, according to Tracxn’s latest report. This sharp decline reflects global economic uncertainty, geopolitical tensions, and the ongoing funding winter, which has dampened investor confidence.

Early-stage investments have been more resilient, declining by 30%, while late-stage and seed-stage funding experienced steeper drops of 79% and 39%, respectively. Despite this, fintech and enterprise applications remain top-performing sectors, though both saw double-digit declines compared to 2023.

A notable shift is the scarcity of large funding rounds, with only two $100M+ deals recorded this year, compared to nine last year. This indicates a more cautious approach from investors, prioritizing early-stage ventures over larger bets.

However, Singapore continues to be a stronghold, attracting US$1.4 billion in funding, followed by Jakarta and Bangkok. Meanwhile, acquisitions and IPOs have slowed, further reflecting a challenging landscape for exits.

While the drop in overall funding is concerning, Southeast Asia’s startup ecosystem remains robust, with over US$85 billion raised to date and a growing number of unicorns. Investors and founders will need to navigate these challenges strategically to weather the storm and drive future growth.

Sainul,
Editor.

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NEWS & VIEWS

Southeast Asia’s startup scene sees 59% drop in funding amid economic headwinds
Eearly-stage investments dropped 30%, late-stage funding dropped 79%, and seed-stage financing fell 39% in the 2024 year to date; Fintech and enterprise applications were the top-performing sectors in 2024 so far.

Philippine fintech firm Salmon secures US$30M
The investors are IFC and Abu Dhabi’s Lunate; The funds raised will be used to expand Salmon’s lending operations and develop new financial products addressing the needs of over 50M Filipino consumers underserved by traditional banks.

Funding Societies grows losses, top line in ‘toughest year’ yet
The digital lending company is “behind” on its Q4 2024 operational profitability target; Still, it grew its revenue to US$48.7M in 2023 – 33% higher compared to the previous year; However, the bump wasn’t a result of a rise in loans.

Ola Electric stock tumbles as complaints add up and market share erodes
The company’s shares fell by as much as 9.1% on Monday to ₹89.14, sending its market cap below US$4.75B for the first time since its IPO in August; The startup reportedly receives over 80,000 customer complaints monthly.

Meta launches AI Accelerator program for APAC
The program will empower innovative companies and developers to integrate Llama, Meta’s open-source AI model, into their products; The firm also plans to launch an incubator program to support 100 enterprises in deepening their understanding of GenAI and Llama.

Swiss startup BE WTR raises US$45.45M for expansion into Singapore, Asia
This new round of funding will accelerate BE WTR’s mission to provide eco-friendly, premium water solutions, ensuring access to high-quality drinking water while reducing reliance on single-use packaging and plastics.

Ouch! nets US$1.2M to expand market share, drive insurance innovation
PPB Ventures is the investor; Ouch! is now working to secure a DITO licence from the central bank BNM, which would enable it to close critical protection gaps for Malaysians.

JAZRO gets Gobi’s backing to expand robotics learning in Malaysia
JAZRO develops digital talents in STEM fields for students from 7 to 17 years old to learn, discover and explore robotics and coding via fun learning methods.

Southeast Asian startups secure US$202M across 12 rounds in September
This marks a 28.66 per cent rise in funding over August 2024 and a 27.86 per cent decline from September 2023; The region witnessed seven seed-stage, six early-stage, and three late-stage funding rounds last month.

FEATURES & INTERVIEWS

In promoting AI adoption, SoftServe believes in implementing a hackathon-like approach
In this interview, Dipen Mehta of SoftServe explains the common barriers that businesses face in adopting AI and what they can do about it.

FROM THE ARCHIVES

Sparkline CEO on exit strategy: Valuation is what someone is willing to pay for your startup
Analysing trends to determine exit strategies and approaches is a complex process. It involves considering numerous factors, such as market growth rates and potential technological advancements that could disrupt your business.

Infrastructure and talent are challenges finance industry faces in adopting AI: Provenir
Despite increasing use cases, Provenir sees that there are challenges that the finance industry has to tackle to successfully adopt AI.

Using AI on e-commerce analytics: Data quality, availability remain critical obstacles
Data accuracy, cleanliness, and consistency are essential for building reliable AI models for e-commerce analytics.

What you should –and should not– say when fundraising for a crowdfunding project
Research revealed that claiming your product to be both “novel and useful” may actually ruin your chance to reach the crowdfunding goal.

How to attract the first thousand users to your marketplace
Given that an online marketplace is a platform service, owners need to acquire users from both supply and demand sides.

AI in journalism: Thai media show 95% adaptation rate despite concerns
A contrasting attitude was expressed by journalists in the Philippines with only 52 per cent have integrated AI into their work.

How Bangkok Bank worked with Pand.ai to develop a conversational AI engine to better service customers
Digitalisation has become a must-have, as it drives competencies for banks in this digital age. This is how Bangkok Bank aims to get there.

Accelerating Asia on building a company culture that fosters innovation and inclusion
To achieve its mission, Accelerating Asia needs to implement an organisational culture that supports and promotes the values they live by.

How Warung Pintar builds tech solutions to help warung owners embrace the future
Warung Pintar tries to get their users involved in product development process as much as possible. This is how they do it.

The evolution and regulation of social commerce in Indonesia: The TikTok Shop ban
Orderfaz Founder & CEO Reynaldi Gandawidjaja shares his thoughts about the recent TikTok Shop ban in Indonesia and how it will impact us all.

Key to success: Digitising customer communication and investing in a multi-channel approach
The new mantra for 2020 is that customer communication should always involve heavy tech use. This is how you can excel in it.

Is Singapore the “Delaware” of Southeast Asia?
The city-state has also made it relatively easy and quick to incorporate your business in the country—if you are a local.

How a great back-end tech helped GrabFood capture half of SEA’s food delivery pie despite being a latecomer
Launched only in 2018, a Momentum Works report found that GrabFood already amassed an estimated GMV of US$5.9B in 2020.

Ex-Gojek CMO reveals the 3 things that marketers should stop doing today
In this article, Piotr Jakubowski also shares examples of his favourite marketing initiatives by top global companies.

Want to work at a leading tech company? Here’s how
As the lead recruiter at social media giant Twitter, this is what I can tell you about making a CV that is fit for a leading tech company.

THOUGHT LEADERSHIP

5 ways leaders can use the power of allowing to manage stress and enhance focus
When leaders master the art of allowing, they shift their energy away from stress-inducing distractions and towards what truly matters.

BorderDollar: Adapting and innovating in a high interest rate environment
BorderDollar reflects on how high interest rates impacted their startup and their pivot to blockchain for future growth.

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Image Credit: 123RF.

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Singapore-based travel eSIM provider Truely recently completed a US$3.5 million financing round led by 1982 Ventures. Founded in July 2023, the startup provides access to mobile data across over 200 destinations and regions, with services in multiple languages. Unlike its competitors, such as Airalo, Truely offers Switchless eSIM technology, which the company claims will revolutionise the eSIM space.

Also Read: eSIM startup Truely raises US$3.5M to give Airalo a run for its money

We spoke with Truely founder and CEO Simon Landsheer to learn more about the company, its eSIM technology, and the sector.

How do you plan to allocate the US$3.5 million, and what are your top priorities in terms of product development and market expansion?

Our primary focus is team expansion and accelerating marketing efforts to fuel global growth. We’re committed to building the ultimate travel companion for frequent travellers, offering unparalleled convenience, connectivity, and peace of mind.

Airalo is probably the largest player in this segment. What differentiates your approach from Airalo’s, and how do you see yourself competing in the global eSIM market?

While Airalo has paved the way in this space, we’re focused on elevating the eSIM experience to a new level. Truly is a Gen2 eSIM platform designed for frequent travellers who value convenience and reliability.

Unlike traditional eSIMs, Truely’s Switchless technology allows users to install it once and forget about the hassle of reconfiguring it each time they travel.

It’s one eSIM, which can be controlled by our mobile or web app, which gives access to mobile internet services at local rates in over 200 destinations without having to install a new eSIM each time you travel. You get to stay connected everywhere you go with Truely Switchless travel eSIM. Install once — no roaming fees, no hassle.

Your plan to release B2B2C services for travel operators, airlines, and OTAs is interesting. Can you share more details about these services and how they will benefit businesses and travellers?

Our B2B2C model allows businesses to seamlessly integrate Truely’s services into their platforms, offering travellers the convenience of booking their trips while securing reliable local internet connections in over 200 destinations.

For our partners, this generates lifetime additional revenue while enhancing the customer journey. For travellers, it removes the hassle of staying connected, allowing them to focus on enjoying their trip without worrying about connectivity.

Truely claims it offers mobile data across over 200 destinations. What challenges did you face in achieving this level of global coverage, and how do you plan to expand further?

We work with many telecom networks around the globe. In my previous business, Silverstreet, we operated a network that processed billions of SMS messages for application to persons (A2P), such as 2FA and O2P messages.

Also Read: Use Airalo eSIM and stay connected wherever you go in the world

Developing those relationships over 20 years has been beneficial as we are now dealing with the same telcos around the globe to purchase petabytes of data.

The real challenge was creating our Switchless eSIM tech, which had to include support for so many telcos in just one eSIM for our users. In contrast, our competitors mostly use ‘burner’ eSIMs, which you can temporarily use to connect to another network. However, this comes with the hassle of setting it up each time and with different settings each time. In my view, this is confusing for first-time users and, at best, annoying for frequent users.

Do you also provide voice call services in all these countries? Companies like Airalo only offer voice call facilities in some countries where they operate. What are the challenges in terms of introducing voice call services?

Voice services and mobile numbers are part of our roadmap and will be offered on our mobile app. We believe there is a demand to make occasional calls to book a restaurant or receive 2FA messages.

I can’t comment on other companies’ difficulties in introducing different services. In our case, it’s about ensuring we understand customer needs, getting the right infrastructure in place and then rolling that out once we are confident it addresses the problem we’re trying to solve.

With the eSIM market expected to grow nearly 50 per cent annually, how do you plan to stay ahead of this trend and capitalise on the rapid growth of eSIM retail sales?

We plan to stay ahead of the eSIM growth curve by making Truely available across multiple channels and platforms at every touchpoint where travellers plan their journeys.

Our approach to localisation ensures that we meet the unique demands of each market, tailoring our offerings to resonate with local preferences. With our focus on constant innovation, user experience, and strategic partnerships, we’re well-positioned to lead the charge in the growing eSIM market.

Many travellers are concerned about seamless connectivity while abroad. How does Truely’s flexible data plan offering address the specific needs of different types of travellers?

We are not tied to specific networks in the countries we cover. In most countries, our eSIM can connect to at least two of the best-known networks, which gives it great resilience and a low chance of being in a ‘black spot’ of 4G or 5G coverage areas.

Users can buy our data plans for a country or region they are travelling to (for example, we have plans that cover all of Europe and the UK or all Southeast Asia countries).

A plan can be purchased and is always valid for a minimum of 30 days. We will soon provide an option for unlimited days validity, meaning you don’t get your data to expire and can use it on your next trip(s).

Also Read: Etisalat’s VC arm, Singtel Innov8 join Airalo’s US$60M Series B round

We will soon launch our ‘always on’ feature, meaning you can still buy a data plan or top-up even when you are not connected to WiFi, when you run out of balance, or when you arrive in a new country. As long as the Truely app is on your phone, you can always use it to purchase a data plan.

The eSIM space is evolving rapidly with new players and innovations. How do you see the market changing in the next few years, and what role do you envision Truely playing in that future?

This is accurate, and it’s fantastic for users and for us to stay sharp. Many resellers, aggregators, price fighters, and innovators are popping up with offers, including mobile operators who have ripped off customers with their roaming charges for decades. We aim to keep innovating with the best possible teams around the globe, the best possible tech, solutions, and customer experience for our users. Ultimately, the customer in each segment will judge who offers the best experience and will stick with that.

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Image Credit: Truely.

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Global accelerator Startupbootcamp has partnered with Enterprise Singapore (EnterpriseSG) to launch TradeSpark, a programme designed to catalyse advancements in the island nation’s supply chain innovation ecosystem.

This initiative aims to bring together multinational corporations, local corporations, and global startups/scale-ups to collaborate on cutting-edge supply chain solutions.

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

Under the TradeSpark programme, participating corporates will work with Startupbootcamp to identify industry challenges and jointly source solution providers, including startups and scale-ups offering best-in-class technologies to address these challenges across areas, including supply
chain forecasting, mobility and transport solutions, warehouse optimisation, and trade financing.

The programme will feature intensive workshops on methodologies and processes for collaborating with startups, knowledge-sharing sessions, and networking opportunities for participating corporate partners. These sessions will help organisations expand their innovation capacity while enhancing their supply chain operations’ efficiency, sustainability, and resilience.

Participating companies will also gain early access to new solutions that could address their unique organisational needs, transform their businesses and drive competitive advantage in the evolving global market.

Victor Sim, Director of Supply Chain and Logistics Resilience at EnterpriseSG, added: “The supply chain landscape has been greatly impacted by geopolitical events, rising costs, and emerging technologies. It is now more pressing for the transport and logistics industry to innovate and transform to remain relevant and competitive. The partnership with Startupbootcamp allows us to develop supply chain tech startups that are anchored on actual use cases from industry corporates such as supply chain visibility, predictive analytics, digital twins, robotics and automation. Such collaborations will strengthen the supply chain ecosystem and result in more business and trade flows.”

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

Launched in 2010, Startupbootcamp has helped startups scale internationally through mentorship, funding, and direct access to corporate partners. It has so far supported 100-plus Fortune 500 companies and 1600-plus portfolio companies across the Netherlands, Japan, Australia, Singapore, the UK, and several other countries.

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Industrial Transformation ASIA-PACIFIC (ITAP), an event of Constellar with international partner Deutsche Messe, is the must-attend event for businesses and governments across the Asia Pacific region eager to embrace Industry 4.0 (I4.0) technologies.

As a flagship HANNOVER MESSE event, ITAP is a dynamic platform where innovation meets collaboration, providing unparalleled opportunities for companies to kick-start, scale, and sustain their I4.0 adoption. With its rich learning content and interactive themed zones, ITAP empowers organisations at every stage of their digital transformation to explore cutting-edge solutions, co-create the future, and stay ahead in an ever-evolving industrial landscape.

ITAP 2024 will feature the AI Discovery Journey, a self-guided experience offering attendees an in-depth look at AI’s transformative impact on manufacturing. This insightful guide will help visitors explore the latest AI innovations, real-world applications, and engaging showcases throughout the event. By facilitating thought-provoking discussions and practical insights, ITAP 2024 will demonstrate how AI can drive secure, resilient, and sustainable industrial practices.

Key exhibitors specialising in AI will make a notable impact at ITAP 2024. Companies such as AWS and Red Hat will showcase AI tools that optimise productivity through cloud-based solutions. Delta Electronics and SAP will spotlight innovations aimed at improving operational efficiency and optimising supply chains.

A dynamic mix of startups and industry leaders in automation, robotics, and data analytics will contribute to an immersive experience that showcases AI’s transformative role in shaping the future of manufacturing.

AWS
Amazon Web Services (AWS) leads in cloud technology, empowering organisations to innovate across industries. At the ITF Conference, Vikram Rao, Managing Director for ASEAN Enterprise, AWS, will deliver a keynote on unlocking the potential to empower smart manufacturing.

Also Read: Startupbootcamp, EnterpriseSG launch TradeSpark programme to drive supply chain innovation in Singapore

At AWS booth 3E11, demonstrations will showcase generative AI applications using Amazon Bedrock and SageMaker Canvas. Highlights include AI-driven predictive maintenance to reduce costs and large language models (LLMs) for streamlined documentation. Attendees can also explore innovations such as Amazon Q and IoT SiteWise, designed to enhance efficiency, scalability, and security for manufacturers.

Red Hat
Red Hat, the world’s leading provider of enterprise open-source solutions, offers innovative technologies such as Linux, cloud, container, and Kubernetes. Their solutions simplify cross-platform operations, from core data centres to the network edge, empowering businesses to accelerate growth and achieve operational excellence in the digital age.

At the ITAP HatVille booth 3C11, Red Hat will showcase how their solutions optimise factory operations, reduce downtime, and lower costs. Attendees can also join the Red Hat Tech Summit on October 15, featuring workshops for manufacturers. David Rapini, Industrial Technology Strategist at Red Hat, will join a panel discussion at the Industrial Transformation Forum to discuss IT-OT integration with AI.

Deloitte
Deloitte, a global leader in audit, assurance, tax, legal, and consulting services, is pivotal in shaping industries worldwide.

At the upcoming Industrial Transformation Forum, Britta Mittlefehldt, Director, Germany Manufacturing Lead, Deloitte Germany, will moderate a panel on the “Factory of the Future: A Leaders’ Perspective on Software-Defined Manufacturing and AI-Driven Innovation,” exploring software-defined manufacturing and AI-driven innovation. Joining her will be Stephen Laaper from Deloitte and Denis Tan from Mitsubishi Electric Asia. Together, they will offer insights on how advanced technologies transform manufacturing.

Also Read: Ecosystem Roundup: Startup funding in SEA sees 59% drop in 2024 YTD | Funding Societies’s losses grow in 2023 | Salmon secures US$30M

Serving nearly 90 per cent of the Fortune Global 500® and thousands of private companies, Deloitte delivers results that reinforce public trust, drive client transformation, and contribute to a stronger, more equitable global economy.

Delta
Delta, a global leader in switching power supplies and thermal management since 1971, will showcase its cutting-edge technologies at ITAP 2024. At the Delta Intelligent Sustainable Connecting Hub (3G11), the company will present solutions driving smart manufacturing and sustainable urban development, including its Smart Manufacturing Solutions for the semiconductor industry, integrating OT, Edge, and IT layers for greater efficiency.

Delta will also unveil its AX-5 Series, a PLC-based motion control solution, and its DIATwin digital twin solution, which optimises production through 3D modelling and AI. The company will also demonstrate its scalable LFP battery energy storage system, underscoring its commitment to smart, energy-efficient technologies.

SAP
SAP, a global leader in enterprise software, will showcase its innovative solutions at ITAP 2024, booth 3C15. Designed to support digital transformation, SAP’s technologies include AI-driven tools, real-time analytics, and intelligent supply chain solutions, helping businesses streamline operations, enhance customer experiences, and build operational resilience.

With a focus on sustainability and industry-specific solutions, SAP remains committed to helping organisations adapt to evolving market conditions. At the Industrial Transformation Forum, Peter Moore, Chief Revenue Officer, SAP Enterprise Cloud, SAP Asia Pacific & Japan, will deliver a keynote on AI, Leadership and Innovation from the SAP perspective.

SIEMENS
Siemens is a technology company that focuses on industry, infrastructure, transport, and healthcare, with a strong emphasis on sustainability. The company aims to drive digital transformation across various sectors and plays a significant role in developing and implementing AI and IoT solutions for industrial applications.

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Image Credit: ITAP 2024

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These non-standard terms can be detrimental to founders, especially first-time founders who encounter such terms often without realising their long-term implications.

This article explores several non-standard terms we’ve encountered in our past experience and explains why they should be approached with caution.

Excessive liquidation preference

Liquidation preferences are usually anticipated in a term sheet, designed to protect investors holding preference shares in the event of a startup’s sale or liquidation.  

The usual practice is to have a 1x liquidation preference (i.e. the investor gets back the 1x amount they originally invested) before any proceeds are distributed to other shareholders. 

Be wary of non-standard term sheets that allow for liquidation preferences of higher multiples 2x or 3x, which entitles investors to two or three times their initial investment before the rest of the shareholders will receive any return of capital.

Additionally, a liquidation preference may also be a non-participating or participating liquidation preference. Participating liquidation preference provides more protection for investors since they can get both their original investment back as well as a portion of any remaining proceeds from the sale or dissolution pro rata with the remaining shareholders. 

Why it’s non-standard

Excessive liquidation preferences  are particularly problematic because they can leave present shareholders including founders and employees with little to no payout, even in a successful exit. 

For example, if a startup is sold for US$10 million but a VC has a 3x liquidation preference on a US$3 million investment, the VC will receive US$9 million, leaving just US$1 million for distributing pro rata between all shareholders (including the investors if there is participating liquidation preference). 

Full ratchet anti-dilution protection

An anti-dilution clause serves to protect investors in the event of a “down round” (i.e. a future funding round where your startup’s valuation is lower than in the previous round). 

A full ratchet anti-dilution protection allows investors to reset the price of their shares as if they had invested at the new, lower valuation. 

This form of anti-dilution clause can lead to severe dilution for founders and early shareholders. 

For example, if an investor originally invested at US$5 per share, but the startup later raises money at US$2 per share, full ratchet anti-dilution would allow the investor to convert their shares as if they had invested at US$2 per share. This dramatically increases their ownership stake at the expense of the founders.

Also Read: From mean to lean – how to build a great startup brand

Why it’s non-standard

Full ratchet anti-dilution is considered an aggressive protection for investors. As a founder, you may wish to propose a more common and balanced approach which is to use a “weighted average” anti-dilution, which adjusts the share price based on the overall effect of the new round but does not reset it entirely. 

Excessive investor control over daily operations

The founders and the management team are responsible for the daily operations of the startup, while investors usually serve more of an advisory role. Non-standard term sheets may include provisions that give investors disproportionate control over daily operations. This could include the ability to veto hiring decisions, control budgeting, or even approve product launches.

Why it’s non-standard

Investors generally reserve veto rights for significant matters like acquisitions, raising new rounds of funding, or changing the startup’s business model, but not routine business decisions. As a founder, granting excessive levels of controls can slow down decision-making in a startup.

Excessively long “no-shop” or exclusivity clause

A “no-shop” or exclusivity clause, limits your startup from negotiating with other potential investors for a specific period, usually 30 to 60 days. 

However, excessively long no-shop periods for 60 days or more, should be resisted as this may stop you from seeking alternative funding if the deal falls through.

Why it’s non-standard

While exclusivity may be expected, anything beyond 60 days may be considered as non-standard. You should negotiate for a shorter no-shop period as a long no-shop period may leave your startup vulnerable and may even lead to missed opportunities (particularly if the round fails).

Mandatory redemption rights

In simple terms, redemption rights allow investors to demand that your startup “buys back” their shares after a certain period (usually between five to seven years depending on the VC fund’s life). 

While redemption rights should be anticipated, non-standard term sheets may include mandatory redemption clauses that force the startup to repurchase shares at a high price, regardless of you startup’s financial condition. Standard redemption rights are typically discretionary, meaning investors can request redemption but are not guaranteed it. 

Why it’s non-standard

Compulsory redemption can create significant financial strain on your startup, especially if your startup does not have the necessary liquidity i.e. profitability to complete the buy back upon issuance of the redemption notice. In extreme cases, mandatory redemption rights can drive your startup into insolvency as the condition can lead to extreme financial burden on your startup.

Unrestricted Right of First Refusal (ROFR)

A right of first refusal (ROFR) clause allows a shareholder in a startup the right but not the obligation to purchase shares from the other existing shareholders before the shares may be sold to any third party. 

While this is a common term, non-standard term sheets may involve unrestricted ROFRs, allowing an investor to block any sale of shares, even nominal or small transactions between other shareholders i.e. angels or employees, limiting liquidity among the present shareholders.

Also Read: Tried-and-tested marketing strategies for startups across all stages in Singapore

Why it’s non-standard

Most term sheets may anticipate a ROFR with reasonable limits, such as the ability to buy shares only above a certain threshold or for strategic reasons. An unrestricted ROFR may be considered restrictive and should be resisted as it may be uncommon in a VC funding.

Cumulative dividend

A dividend is usually a cash distribution of a startup’s profit to its shareholders. 

As a preference shareholder, dividends may be cumulative or non-cumulative at a certain rate (eg, six per cent to eight per cent annual dividend preference of the original invested sum). 

If the dividend is cumulative, if your startup is unable to pay the dividends in a given year, they will accrue and must be paid before any dividends are paid to ordinary shareholders. If dividends are non-cumulative, unpaid dividends do not accrue, and there is no obligation to pay them in the future.

The rate will be a fixed return the VC expects to receive, but it can accumulate over time until a liquidity event i.e. an acquisition or IPO, triggering the payout.

Why it’s non standard

Startups rarely pay dividends because they generally prefer to reinvest their profits into expanding the business. 

Agreeing on cumulative dividend terms can be detrimental, although it may be generally more common in later-stage financing rounds, where the startup is more mature and may likely be already profitable. Even in these cases, dividends are still relatively rare compared to the primary focus on capital appreciation.

Investor rights to force an IPO or a trade sale

Non-standard term sheets may give investors the right to force the startup into an initial public offering (IPO) or sale within a certain timeframe, regardless of whether the startup is ready or not. This can be harmful if your startup is not financially ready or even the market conditions are not unfavourable. This may force a premature exit.

Why it’s non-standard

Forcing an IPO or sale within a specific time frame may not be typical in early stage venture deals. Founders should be wary of this term, as it can push your startup into a premature exit (usually at a lower valuation than you may likely with more time to grow).

Final thoughts

Signing a bad term sheet can be detrimental down the line when you plan to raise further rounds from other investors. As a first time founder, it may be hard to distinguish between a standard or a non-standard term. Engaging a startup lawyer before signing a term sheet can help you pinpoint the red flags in a term sheet to avoid friction or even likely dispute in the future. 

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