The dating app industry, despite criticism from psychologists, generates billions of US dollars a year. This ‘love economy’ has changed our lives beyond recognition.

However, almost half of consumers say they feel frustrated when using such apps, and members of the so-called ‘Generation Z’ are increasingly turning to live communication in search of their other half.

What does the future hold for the dating app industry?

The internet has changed the way we date, and psychologists believe it is not for the better. The abundance of choice in terms of partners and spending time corresponding with people without any idea of who they really pose mental health risks. The ease of choice, or the illusion of choice offered by dating apps, reduces the chances of meeting someone who you really click with in real life.

This is confirmed by a Pew Research Center study in 2020, which found that 45 per cent of people were disappointed when using apps, and 60 per cent of young girls and women said they had received intrusive messages even after expressing disinterest in a candidate. In addition, more than half of people received unwanted photos of a sexual nature, and the same proportion said they thought apps were an unsafe way to meet.

While the use of apps was not declining before COVID-19, recent studies show that interest is waning. So-called millennials, those born between 1996 and 1981, have grown extremely tired of online dating, even though for this generation finding a mate used to be a natural process.

Younger Generation Z (27 years and younger) are even less likely to use Tinder, Hinge, Bumble, and other apps, preferring to meet their other half through mutual acquaintances.

Surprisingly, it is this generation of young people, who spend over 8 hours in front of their phone screens, that miss live interaction the most. We might consider that the younger generation is more aware, having matured in a time of climate activists and quarantines that have forced them to turn inwards, but they are not the only ones who are choosing alternatives.

Also Read: To bumble or not to bumble: Does Asia need its own dating apps?

The 2024 D.A.T.E. (Data, Advice, Trends, and Expertise) report shows that many members of Generation Z rank fear of rejection and feeling uncomfortable among their top concerns when using instant dating apps. Millennial daters may have more experience of rejection, but this does not mean that they are comfortable with this scenario.

In search of a genuine connection

Dating apps are losing their appeal among all age groups. The majority of users of the recently launched Joiner App, a matchmaking and leisure app, are millennials, three-quarters of them women aged 25-40. They are happy to stop feeling the tension of a targeted search for a mate and rather find their circle of people based on their interests.

Millennial women don’t have the time to waste corresponding with 30 different people and then being disappointed every time they meet in person. The sociability, the ability to share positive emotions with people with whom you have a lot in common, is something else.

When we talk to the Joiner App community, we hear although people are often looking for their other half, they prefer to be friends first. They are fed up with the brutal push by apps to build a relationship faster without a foundation because it’s just not real.

Every relationship psychologist will agree that to have a successful commitment, one needs to go out there, not spend time on apps, create a false image of oneself, and also see potential partners.

According to statistics, the majority of ‘Generation Z’ women delete dating apps within the first month of use. Old-fashioned? I don’t think so.

I believe that our future will be different because people’s minds are changing. We are finally recognising that each of us wants the natural, real connection that many of us have lost. The millennial generation has had enough of virtual communication and is seeing the consequences.

The market is changing, their desire to communicate in person is replacing virtual illusions. This is why the world is witnessing a boom in socialisation projects and community building. It is impossible to ignore these trends because people’s needs are very clear. What is old-fashioned to whom today? The answer is obvious.

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The post The economy of love: Are dating apps doomed? appeared first on e27.

Vietnam boasts a vibrant startup ecosystem and is among the top 3 most attractive investment destinations in Southeast Asia. Fonos, a Vietnamese audio content startup, is one of the prominent players in this exciting landscape, enjoying an accelerated growth momentum since 2020. With subscription services covering 1500 pieces of original content, 200+ podcast channels, and 1200+ copyrighted audiobooks, it is the number one audiobook app on both Apple AppStore and Google Play Store in Vietnam.

The challenge of streamlined marketing and ongoing personalisation to engage busy users

Vietnamese users have high expectations from their audio apps — from supporting their upskilling, personal and spiritual growth, and to catching up on the news in various spheres and reading to their children.

Fonos offers all of this but found that more than two-thirds of its users are busy people. While the users come on to the app because they recognise it can meet their needs, Nguyen Hong Nhung, Head of Growth Marketing at Fonos and her team, saw that the users could stay longer and return more often. Fonos had the potential to become the go-to learning and content companion for customers round the clock. To achieve this, the Fonos team decided to use a powerful all-in-one solution that would help tailor personalised retention strategies and create new user behaviours.

Also read: Leveraging technology to create uniquely human experiences

Because of its real-time Recency, Frequency, and Monetary segmentation features that underpin omnichannel, lifecycle marketing, and automated and personalised communication, Fonos sought CleverTap’s services.

“Fonos, right from its early days, understood the importance of focussing on user lifetime value as a way to achieve its goal of being a ‘daily companion’ to its users. CleverTap serves as a robust, unified engagement platform, empowering us to engage users contextually in real time and use automation for enhanced efficiency,” shared Nhung.

A foundation for tailored, end-to-end lifecycle engagement

With CleverTap as the cornerstone, Nhung and her team set out to build a data-driven strategy to maximise customer lifetime value (CLTV). This would be done in two ways: Driving subscription sales throughout the customer lifecycle (install, trial, renewal), while simultaneously boosting customer retention.

Nhung’s team kicked things off by segmenting their user base. They used CleverTap’s live unified customer views updated with real-time user interaction data, as the ideal starting point to segment users based on user type (Free/Subscription/Churn) and the category of the product (Audiobook/Ebook/Podcast). For enabling lifecycle-based engagement, CleverTap’s sophisticated Recency, Frequency, and Monetary (RFM) behavioural segmentation algorithm was applied. This creates segments of users based on how recently and how often they were active, as well as the value of their transactions.

Also read: Fostering inclusion: AI’s role in SEA’s education sector

RFM segmentation offers multiple advantages. RFM takes the entire audience and maps them onto a recency and frequency grid, breaking them down into 10 distinct groups. It is fully automated and takes care of complex mathematical modelling with complete accuracy. Thus, the Fonos team saves hours of effort which would be spent on computing which users belong where. They also have access to the probability of a user transitioning from one segment to another, which can happen at any time during the lifecycle.

Equipped with this new, multidimensional, real-time overview of their users’ lifecycle stages, the Fonos team leveraged more of CleverTap to create laser-focused engagement.

Leveraging RFM-backed journeys and insights to personalise user experiences and maximise CLTV

From the moment the customers find and download the Fonos app, they engage with it in varied ways. Against this backdrop, Fonos’ main goal is to make personalised content suggestions in real-time, so customers can quickly discover what they need and maximise their usage of the app’s large library. Let us look at how the team used CleverTap to achieve this.

In the case of users who download the app and sign up, conversion-focused journeys auto-trigger campaigns to engage those who remain inactive post-sign-up with welcome onboarding emails. Similarly, tailored journeys win back users about to cancel their subscriptions by reminding them how much they will miss their most-used features. Users who forget or overlook spending their abundant credits are alerted with personalised messages on their preferred channels before the credits expire.

In this way, RFM segmentation ensures that along any tailored journey, the offers, and customised messaging reach the right user on the right channel, consistently improving the experience. CleverTap also enables the team to identify the ‘golden time’ of the day to engage users, further boosting effectiveness. The Fonos team is also able to streamline their efforts by tapping into deeper insights mined by CleverTap, such as by not focusing on users who use the app for less than 10 minutes a day in the first week as they are unlikely to turn into loyal customers.

With this integrated execution of tailored journeys and lifecycle messaging right from the onboarding stage to provide seamless personalisation, Fonos is seeing concrete gains. There is a significant conversion uplift between 5%-10% and an appreciable revenue boost of 10% for user groups where CleverTap segmentation and tools were applied.

“RFM segmentation has helped shape a far more effective strategy, supercharging our return on investment by boosting retention rates and maximising user lifetime value,” explained Nhung.

Nurturing customer loyalty through RFM-powered personalisation

The Fonos team also leverages RFM segmentation and valuable insights from CleverTap to engage loyal customers and persuade them to make referrals. Loyal users, for instance, are offered personalised content so they feel valued. Another approach that is currently working well is two-way conversations. Customers in the more loyal segments are asked for feedback, assured it will be implemented, and then engaged again to see if they are satisfied. High-value, at-risk customers are convinced to stay by offering them gainful, customised loyalty programs, while loyal customers are incentivised to provide referrals.

Also read: OceanBase INFINITY 2024: Pioneering Indonesia’s digital economy

“By leveraging RFM segmentation and stellar user database management, Fonos has transformed user engagement, increasing both app usage time and monthly active users. In today’s distracting digital landscape, user loyalty is the heartbeat of a thriving subscription business, fueling continuous growth and unwavering engagement,” added Nhung.

A data-driven success story

There is clear evidence that everything Fonos has done so far to increase user engagement is working. The email open rate of 20% is significantly higher than the industry benchmark. At 10%, the In-app message open rate is also at a great level. Crucially, since CleverTap, monthly active users month-on-month growth has seen a 25% jump with the absolute number increasing 6-fold over six months. Fonos accomplished this by intelligently harnessing data to engage the busy user in the right way at the right time.

“CleverTap’s CRM system, by providing personalised customer experiences, marketing performance optimisation, and measurable metrics to gauge the success of our efforts in real-time, has greatly aided our growth,” Nhung shared.

To learn more about how CleverTap can help your business create a tailored strategy for engaging users, visit them at https://clevertap.com/live-product-demo/.

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Photo by Christina Morillo via Pexels

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This article is produced by the e27 team, sponsored by CleverTap

We can share your story at e27, too. Engage the Southeast Asian tech ecosystem by bringing your story to the world. Visit us at e27.co/advertise to get started.

The post Uncovering the secret behind Fonos’s unprecedented growth appeared first on e27.

When asked about the top cybersecurity concern that companies of all sizes and sectors face today, Zscaler Chief Security Officer Deepen Desai named phishing as one of them. We can even expect the number and level of threat to escalate as cybercriminals use Artificial Intelligence (AI) in their attacks, starting from the use of deep fakes to the use of “cleverly crafted” phishing kits that can evade multi-factor authentication (MFA) steps.

Speaking to e27 at the sidelines of Zenith Live 2024 on June 13 in Las Vegas, he also warned against using phishing-as-a-service frameworks that make crimes easier.

“Two notable ones have been mentioned in the last few years. The first one was the Scattered Spider group … they make phone calls to your IT helpdesk, pretending to be the employee and convincing the IT helpdesk to reset the password, reset MFA, and get inside the environment,” he explained.

“The other variation that we have seen in the last six months is … they pretend to be the security team of that same company, telling the IT helpdesk that we have found some security issue with your computer, and we are calling to help fix it.”

To deal with this issue, as a principle, Desai recommended companies focus on two things: Training employees and performing inline TLS inspection.

“In the case of Scattered Spider, as soon as we started seeing that happening mid to late last year, we sent out an advisory to all our customers to follow this process in order to safeguard against these types of TTP. So, the basic process changes. If some employee called your IT helpdesk to reset MFA or credentials because they lost their phone, contact their manager and get approval from them … With the basic process changing, training the employees become very, very important,” he said.

Also Read: The ever-present threat: Why businesses need robust cybersecurity

“The technology piece is where you need to do inline TLS inspection. Because a lot of these phishing pages are hosted on Azure or AWS GCP. They are using these cloud storage service providers’ wildcard certificates.”

Focusing more on how AI is taking cyber attacks to the next level, Desai highlighted that cybercriminals today aim at a company’s enterprise AI application.

“Every organisation is adopting generative AI LLM; they are all trying to take advantage of the efficiency, the efficacy gains that the LLM is providing. But this [enterprise AI is now] a crown jewel for your organisation. Because you have all your data there that you are using to train these algorithms, you can now poison the application, steal the data, and do lots of different attacks against that LLM infrastructure.”

So, how can companies use AI to fight against AI? Desai first highlighted that AI will not work as a panacea; users have to “tactically” integrate the technology in places where it will excel.

“What we have done is that we implement AI-powered segmentation, where we are using these AI modules to look at your last three months of data. Then, it is able to tell you that ‘This group of users are accessing this group of applications; you should apply this segmentation policy’,” he began.

Another example is the use of AI co-pilots. “How can you make it easier for a relatively new guy on the customer side, who may not be very familiar with your platform, to use it to defend against attacks? So, again, AI is being used across different layers in the product to fight attacks that will be more sophisticated, automated, and dynamic in nature.”

Also Read: Demystify cybersecurity: EPP vs EDR vs MDR vs XDR

As a cybersecurity firm, Zscaler provides businesses with an in-line cloud security platform. Its Zscaler Zero Trust Exchange platform protects thousands of customers from cyberattacks and data loss by securely connecting users, devices, and applications anywhere.

At the same event, e27 spoke to Kavitha Mariappan, EVP of Customer Experience & Transformation, on how the company works with businesses to help them grow, especially in their cybersecurity aspect.

“We help customers grow is by reducing IT and security overhead,” she said.

When asked about recent changes in the global market, Mariappan said that COVID-19 was an inflexion point for businesses as it created a new kind of workforce—one that had never been in a physical office before.

“I was with a customer yesterday who said, ‘I have 300,000 offices. Why? Because I have 300,000 employees, many of whom work from home for a percentage of the week.’ So, how do I build a workforce? How do I ensure the crown jewels of the organisation are protected?”

“The other thing that has happened is how AI has taken off … We are seeing the bad actors use AI to do very sophisticated nefarious acts. So, I think we have seen many things shift since the pandemic.”

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Image Credit: Zscaler

The post Phishing remains top cybersecurity concern, but AI will drive it to next level: Zscaler CSO Deepen Desai appeared first on e27.

Dear reader,

We saw a great variety of news happening this week.

From the funding side, we had companies such as Amartha announcing a US$17.5 million funding round, Buyandship securing US$16 million, and Homa2u getting US$1.5 million. These companies work in various verticals, from fintech to logistics to interior design. Even major names such as Carro secured a US$55 million loan from HSBC to support its fintech arm.

We also witnessed movements in human resources. Philippe Auberger, a former Lazada Logistics Indonesia CEO, joins SiCepat, while SoftBank’s Masayoshi Son is setting up his “next big move.”

For features, we published a special interview with Zscaler from our recent participation at Zenith Live 2024 and a profile of BuyMed and Transcelestial.

Anisa,
Editor.

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NEWS

MSD launches IDEA Studios to fund healthcare innovation in Asia, Europe
MSD, through its Global Health Innovation Fund, plans to invest US$38 million across both regions over the next three years

Amartha secures US$17.5M from Accion to empower women-led MSMEs
Amartha uses tech and partnerships to support women-led micro and SMEs, merchants, institutional banking, retail investors, and startups in the grassroots economy

Hong Kong based Buyandship secures US$16M funding led by Altara Ventures
Buyandship plans to enhance the user journey, expand into Southeast Asian markets, and further automate operations

SEA’s tech M&A boom cools off, more corrections on the horizon
According to DealStreetAsia, following peak activity in 2022, SEA witnessed a notable decline in M&As of tech companies in 2023

Malaysian interior design marketplace builds Pre-Series A round up to US$1.5M
Homa2u has repurposed US$4.2 million worth of excess inventories in over 8,000 homes, Tech In Asia writes

Vietnamese unicorn VNG eyes listing on local exchange HoSE
This information was secured by DealStreetAsia from the company’s annual shareholders on Friday

US VC General Catalyst acquires Indian peer Venture Highway
This acquisition confirms a report that DealStreetAsia made in January

Former Lazada Logistics Indonesia CEO joins SiCepat
Philippe Auberger joins the Indonesian logistics firm as its COO, according to Tech In Asia.

Carro secures US$55M loan from HSBC to fund fintech arm
The loan was meant to support the company’s fintech arm Genie Financial Services, DealStreetAsia writes

SoftBank’s Masayoshi Son set for ‘next big move’: report
Amid a deeper focus on AI, SoftBank is aiming to boost its renewable energy ventures to power its AI initiatives, especially in the US, Son said.

Lightspeed leads US$10M round in South Korean fintech startup Travel Wallet
Travel Wallet’s flagship product is Travel Pay, a prepaid card that lets users exchange funds and make payments in 46 different currencies.

Lazada squashes rumors of Thailand exit
The comments come following a Bangkok Post report on Alibaba’s alleged talks with Charoen Pokphand and Central Group.

FEATURES & INTERVIEWS

Phishing remains top cybersecurity concern, but AI will drive it to next level: Zscaler CSO Deepen Desai
To tackle this problem, Zscaler CSO Deepen Desai spoke about how to use AI to fight against AI

How these trio grew BuyMed into a B2B healthtech brand with a reach in 12K+ townships in Vietnam
BuyMed, which recently raised US$51.5M in Series B funding, says it processes over 5K orders daily and reaches 12K+ townships across Vietnam

Amidst funding slowdown, these 5 Vietnamese tech startups inspire hope for the rest of the year
Categories such as e-commerce, fintech, and related services remain the most popular verticals for investors in Vietnam

‘To beam high-speed internet from Space’: Transcelestial CEO on Axiom Space collaboration
Transcelestial and Axiom Space team up to use lasers to beam high-speed internet from space, creating orbiting data centers

FROM THE CONTRIBUTORS

The economy of love: Are dating apps doomed?
The ease of choice offered by dating apps, reduces the chances of meeting someone who you really click with in real life

Navigating the climate tech landscape in Germany: Opportunities and pathways
Germany’s climate tech landscape offers opportunities for innovation and growth, backed by strong government support and a thriving ecosystem

Skills for the gig age: Empowering workers in Malaysia for the future of work
The gig economy can prove to be the solution to reduce the stagnant unemployment rate that Malaysia has been plagued by

The unsung hero: Why every CEO needs a strong second-in-command
The second-in-command role is a strategic imperative for modern organisations in a complex, competitive business environment

Leveraging technology to create uniquely human experiences
Communication and marketing in the age of automation: Strategies for a seamless people-machine partnership

Can Singapore unlock Gen Z’s spending power with unified commerce?
Singapore’s retail sector can revitalise by adopting unified commerce, capitalising on Gen Z’s significant global spending power

AI, personalisation, and 5 marketing activities you should be doing
Here are five key marketing activities that businesses should be doing and the AI tools to get the most mileage

The metaverse in Asia: Opportunities for new entrepreneurs
The metaverse is set to redefine how we interact, work, and engage with digital content, and Asia is poised to lead this transformation

PR 101 for tech startups: Tips for guaranteed media coverage
Struggling to get the word out about your tech startup? Learn how to do your own PR and create buzz for your business on a budget

FROM THE ARCHIVES

‘Young, tech-savvy population contributes to cryptocurrency growth in Vietnam’
Cryptocurrencies have found more takers in Vietnam because nearly 70% of adults lack access to formal financial services, says Nicegram CPO

All hands on deck: How Iron Sail strengthens blockchain gaming ecosystem through collaboration
Launched in October 2021, Iron Sail results from a partnership between blockchain-based game hub Whydah and seven local gaming studios

Why is The Parentinc aggressively venturing into offline spaces?
The Parentinc doesn’t rule out an IPO within the next three years, but at this point, it brings the retail tech footprint into other markets in SEA

The journey of Alternō: A tale of innovation, sustainability, and friendship
Alternō envisions a world where sustainable energy is accessible and affordable for all, heralding a new era of eco-conscious living

How Vietnam’s e-commerce firm Tiki manages to keep employee churn rate healthy
Chief People Officer Sakshi Jawa discusses the various HR challenges faced by Tiki, which employs nearly 3,000 people across Vietnam

From Amazon to AI: How GenAI Fund fuels innovation in SEA through a unique model
GenAI Fund is a US$10M AI-focused fund based in Vietnam that aims to invest between US$50,000 and US$1M per startup

‘We want to treat our customers like educated LPs of a fund’: Michael Do of wealthtech startup 1Long
‘We frequently update their portfolio holdings and our investment decisions while sharing resources that an investor relations department typically offers’, says 1Long CEO

Starting with a clear culture in mind is vital for companies: Huy Nghiem of Finhay
‘Short-term financial stability is as important as long-term goals; If we cannot meet the former, we can’t meet the long-term goal either’, says the Finhay CEO

—

Image Credit: © rawpixel, 123RF Free Images

The post Ecosystem Roundup: MSD launches IDEA Studios | Amartha nabs US$17.5M | SEA’s tech M&A boom cools off appeared first on e27.

HOMA2u, a Malaysian startup specialising in renovation and interior design materials, has secured an additional US$625,000 in its pre-series A funding round from Asia Fund X, backed by MSW Ventures and Pavilion Capital.

The company plans to use the funds to support its carbon reduction tracking initiatives and expand beyond Malaysia and Singapore into high-growth regions such as Taiwan and Japan.

Founded in 2017, HOMA is a retail platform leading the initiative to reduce, reuse, and repurpose for home improvement. It offers building materials and home finishing products at bargain prices, focusing on sustainability.

HOMA2u collaborates with environmental consultants to measure the carbon footprint of repurposing overstock materials. Each sale of overstock tiles saves about 16.42 kg of CO2 per m², reducing waste and the need for new production. Using industry standards, HOMA2u ensures transparent carbon accounting, sets new benchmarks, and issues green certificates to partners.

Also Read: MSD launches IDEA Studios to fund healthcare innovation in Asia, Europe

The company has developed the Pro+ ecosystem, which includes over 1,000 industry stakeholders such as interior designers, architects, suppliers, and contractors. Pro+ provides a platform for the community to access curated perks and value-added services, enhancing the overall marketplace experience.

At the start of 2024, HOMA set a target to save 7.5 million kg of carbon by the end of the year. To date, HOMA2u claims to have repurposed over RM20 million (US$4.76 million) worth of overstock inventories for more than 8,000 homes.

Pennie Lim, Co-Founder and CEO of HOMA2u stated, “Our vision remains to redefine the business landscape for the built environment, but we are also cognizant of the sustainable impact we bring to the table. We are committed to expanding HOMA2u’s offerings outside of Malaysia and Singapore, specifically into high-growth regions such as Taiwan and Japan where attitudes towards ESG construction move in strikingly similar ways.”

This latest investment brings HOMA2u’s total pre-Series A funding to US$1.5 million. Existing investors include Quest Ventures Asia Fund II, Worldwide Management Solutions, and Qhazanah Sabah Berhad, the investment arm of the Sabah state government.

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Fundraising or preparing your startup for fundraising? Build your investor network, search from 400+ SEA investors on e27, and get connected or get insights regarding fundraising. Try e27 Pro for free today.

Image credit: HOMA2u

The post HOMA2u raises US$625K to expand sustainable renovation marketplace appeared first on e27.

The digital age continues to evolve, pushing the boundaries of what is possible and redefining how we interact with technology and each other. At the forefront of this evolution is the metaverse — a concept that blends augmented reality (AR), virtual reality (VR), and the internet to create immersive virtual worlds. These virtual spaces offer unprecedented opportunities for interaction, commerce, entertainment, and education, and Asia is rapidly emerging as a leader in this innovative landscape.

With its strong technological infrastructure, vibrant digital economies, and a population that is both tech-savvy and eager to adopt new technologies, Asia is uniquely positioned to harness the potential of the metaverse. Additionally, Asia’s immense population, rich tapestry of languages, and diverse cultures present unique challenges that the metaverse is ideally suited to address.

By creating virtual spaces that transcend physical and cultural barriers, the metaverse can facilitate interactions and collaborations that cut across these diversity gaps, fostering a more interconnected and inclusive digital community.

For new entrepreneurs, this burgeoning digital frontier presents a wealth of opportunities to innovate, create, and thrive. This article explores the rise of the metaverse in Asia, its potential for entrepreneurs, and the trends, players, and innovations driving this transformative ecosystem.

Exploring the rise of the metaverse in Asia

The concept of the metaverse has been around for some time, but it has recently gained significant traction, particularly in Asia. This surge is driven by several factors, including advancements in technology, increased internet penetration, and a cultural inclination towards digital innovation.

Technological advancements

Asia is home to some of the world’s leading technology companies and innovators. Countries like China, South Korea, Japan, and Singapore are making substantial investments in the necessary infrastructure to support the metaverse. These investments include the development of high-speed 5G networks, which are essential for providing the low latency and high bandwidth required for seamless VR and AR experiences.

Internet penetration and digital culture

With one of the highest internet penetration rates globally, Asia’s digital culture is thriving. The region’s population is highly engaged with digital platforms, social media, online gaming, and e-commerce. This digital-first mindset makes the transition to more immersive metaverse experiences a natural progression.

Government support and investment

Governments across Asia recognise the potential of the metaverse and provide support through policies and investments. For instance, the Chinese government has included the metaverse in its five-year plan, highlighting its importance in the future digital economy.

Innovative ecosystem

The innovative spirit prevalent in Asia is fostering a robust ecosystem of startups and tech companies eager to explore and expand the possibilities of the metaverse. This includes developments in virtual real estate, digital fashion, educational tools, and social networking platforms.

Also Read: Understanding the difference between Web3 and metaverse

Understanding the potential of the metaverse for entrepreneurs

The metaverse represents a transformative opportunity for entrepreneurs, offering a new frontier for innovation across various sectors.

Here are some key areas where entrepreneurs can capitalise on the potential of the metaverse:

Virtual real estate

In the metaverse, virtual real estate is becoming a highly sought-after commodity. Entrepreneurs can purchase virtual land and develop it into commercial hubs, entertainment zones, or social spaces. Platforms like Decentraland and The Sandbox are pioneering this space, allowing users to buy, sell, and develop virtual properties.

Digital fashion and avatars

As users spend more time in virtual worlds, the demand for digital fashion and avatar customisation is on the rise. Entrepreneurs can create virtual clothing lines, accessories, and even entire fashion shows. This sector offers a unique blend of creativity and commerce, appealing to fashion enthusiasts and tech-savvy consumers alike.

Gaming and entertainment

The gaming industry is a natural fit for the metaverse, providing immersive experiences that attract millions of users worldwide. Entrepreneurs can develop new games, create virtual events, and design interactive entertainment experiences. The integration of blockchain technology and NFTs adds another layer of opportunity, allowing creators to monetise their digital assets.

Education and training

The metaverse has the potential to revolutionise education and training by providing immersive, interactive learning environments. Entrepreneurs can develop virtual classrooms, training simulations, and educational games that offer engaging and effective learning experiences. This is particularly relevant in fields like medicine, engineering, and vocational training, where hands-on practice is crucial.

Social networking and community building

The metaverse offers new ways to connect and build communities. Entrepreneurs can create virtual social networks, online communities, and interactive experiences that bring people together. These platforms can cater to various interests and demographics, providing unique spaces for social interaction, collaboration, and entertainment.

E-commerce and virtual marketplaces

E-commerce in the metaverse extends beyond traditional online shopping. Virtual marketplaces can offer unique, immersive shopping experiences where users can browse and purchase digital and physical goods. Entrepreneurs can create virtual stores, develop innovative shopping platforms, and leverage VR and AR technologies to enhance the customer experience.

Also Read: What metaverse trends should you keep an eye on in 2024?

Navigating the tech landscape: Metaverse trends in Asia

Asia is witnessing several key trends that are shaping the metaverse landscape:

VR and AR advancements

Continuous improvements in VR and AR technologies are making virtual experiences more immersive and accessible. Countries like Japan and South Korea are leading in VR hardware and software innovations.

5G deployment

The rollout of 5G networks across Asia is enhancing the speed and reliability of internet connections, which is crucial for seamless metaverse experiences. China, in particular, is at the forefront of 5G deployment.

Blockchain integration

Blockchain technology is being integrated into metaverse platforms to ensure secure and transparent transactions. This is particularly important for virtual real estate, digital assets, and NFTs.

Cultural adoption

There is a strong cultural embrace of digital experiences in Asia, driven by the popularity of online gaming, e-sports, and virtual events. This cultural trend supports the rapid adoption and growth of metaverse platforms.

Key players shaping the metaverse industry in Asia

Several major companies and startups in Asia are driving the development of the metaverse:

• Tencent: A Chinese tech giant, Tencent is heavily investing in metaverse-related technologies, particularly in gaming and social networking.
• Alibaba: Known for its e-commerce dominance, Alibaba is exploring the integration of virtual reality into online shopping, creating immersive e-commerce experiences.
• Samsung: The South Korean conglomerate is a leader in VR technology, providing hardware and software solutions that are fundamental to metaverse applications.
• Sony: Japan’s Sony is making significant strides in VR gaming, with its PlayStation VR system paving the way for immersive gaming experiences.
• Grab: The Singapore-based company is venturing into the metaverse by developing virtual platforms that enhance urban mobility and e-commerce.
• ByteDance: The parent company of TikTok, ByteDance, is expanding its reach into the metaverse through investments in VR and gaming. ByteDance acquired Pico, a VR headset maker, signalling its intention to become a significant player in the VR space.

Monetising opportunities in the Asian metaverse market

Entrepreneurs can explore various monetisation strategies within the metaverse:

• Virtual real estate: Buying, developing, and selling virtual land is becoming a lucrative business. Entrepreneurs can create virtual malls, event spaces, and social hubs.
• Digital fashion: Designing and selling virtual clothing for avatars opens a new revenue stream. Collaborations with fashion brands can further enhance this opportunity.
• Gaming: Developing immersive games and integrating in-game purchases can attract a large user base. Blockchain-based games with NFTs offer additional revenue potential.
• Education and training: Virtual classrooms and training simulations provide innovative educational solutions. Entrepreneurs can create subscription-based models for continuous learning.
• Social platforms: Building social networks and community spaces within the metaverse can attract advertising and sponsorship deals.

Challenges and solutions for entrepreneurs in the metaverse space

While the metaverse offers vast opportunities, it also presents challenges:

• Technical barriers: Developing high-quality VR and AR experiences requires significant technical expertise and investment. Partnering with established tech firms can help mitigate this challenge.
• Regulatory issues: Navigating the regulatory landscape is complex, especially with varying laws across different countries. Entrepreneurs should stay informed and seek legal advice to ensure compliance.
• User adoption: Gaining user traction can be difficult in the early stages. Offering unique, value-driven experiences and leveraging marketing strategies can enhance adoption.
• Security concerns: Ensuring data privacy and security is crucial. Implementing robust security measures and transparent policies can build user trust.

Also Read: Metaverse companies must beware the poisoned chalice of web

Innovations driving growth in Asia’s metaverse ecosystem

Several innovations are propelling the growth of the metaverse in Asia:

• AI integration: AI is enhancing user experiences by providing personalised interactions and automating complex tasks within the metaverse.
• NFTs: Non-fungible tokens are revolutionising digital ownership, allowing users to buy, sell, and trade unique digital assets securely.
• IoT connectivity: The Internet of Things is connecting physical devices to the metaverse, enabling real-time data exchange and interaction between the virtual and physical worlds.
• Cross-platform interoperability: Developing platforms that can interact seamlessly with each other is crucial for a cohesive metaverse. Entrepreneurs are focusing on creating interoperable systems to enhance user experiences.

Future outlook: The evolution of entrepreneurship in the Asian metaverse

The future of entrepreneurship in the Asian metaverse looks promising. As technological advancements continue to accelerate, the metaverse will become more accessible and integrated into everyday life. Entrepreneurs who are able to innovate and adapt to this evolving landscape will find numerous opportunities to create impactful businesses.

The metaverse is set to redefine how we interact, work, and engage with digital content, and Asia is poised to lead this transformation. By embracing the metaverse, new entrepreneurs can not only achieve business success but also contribute to the broader digital economy, shaping the future of technology and human interaction.

In conclusion, the metaverse in Asia presents a dynamic and exciting frontier for new entrepreneurs. With a strategic approach, an understanding of the evolving tech landscape, and a commitment to innovation, entrepreneurs can capitalise on the vast opportunities the metaverse offers, driving growth and shaping the future of the digital world.

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AI is quickly becoming prevalent in many business processes. For professionals in the field of marketing and outreach, 76 per cent are using AI tools for content and copy generation, and 71 per cent have used AI as part of their creative thinking process. This rise on the side of creators has been met with positive reactions from consumers.

A report by Capgemini Research Institute shows that 73 per cent of consumers trust AI-generated content and are comfortable relying on AI to help with financial planning, medical advice, and relationship tips.

However, AI isn’t the solution for every aspect of marketing. Despite the advancements in chatbots, up to 46 per cent of consumers still prefer speaking to a human agent. Finding the right balance between personalisation and automation is a key factor in the level of success that businesses can have with these tools.

Here are five key marketing activities that businesses should be doing and the AI tools to get the most mileage.

Market research

Market research is the start. Knowing the trends in your industry, target market, and buyer insights set the parameters for your marketing efforts. 

Traditionally, teams will go through secondary research and online data, a laborious process that can be made easier by the following tools:

Gong tracks all the interactions with your customers to identify sales opportunities and pain points and outlines common objections and questions to get your team better prepared.

TL;DV is an AI-powered meeting recorder that stores and analyses customer interviews in one place. The keyword function enables your team to find every mention of a specific word or topic without going through entire recordings.

At this stage, AI is a lifesaver, but it’s a tool for analysing primary data and doesn’t conduct the research for you. You still need to understand your customers well to formulate effective communication and know how to approach them to get real insights.

Target audience segmentation

After knowing your market, it is time to segment your audience based on their specific needs and goals, factoring in company size, location, industry, budget, and business objectives.

Also Read: Embracing AI’s promise: Navigating the future of marketing

Peak.ai processes your business data and identifies relevant audience segments that match your ideal customer profiles. Segments can be further sorted by industries where specific solutions are needed, or by their funnel stage (awareness, consideration, decision) to deliver targeted messages that increase your closing chances.

While AI excels at data analysis and predictions, it can’t replace the human touch. You need personalised communication from your team to create a strong first impression that builds genuine connections with potential customers.

Brand building and content marketing

After mapping your market landscape and customer profiles, you can begin creating your content strategy to raise awareness and turn prospects into clients! 

For this part, using a series of tools, you can create an intuitive workflow:

• ChatGPT or Google Gemini to generate ideas and content pieces
• Grammarly to sharpen the grammar quality
• Notion to organise your content roadmap and team responsibilities 

With our prompts, providing enough details and context, clear desired outcomes, incorporating synonyms, and using causative language will give us options for a cleaner starting point. We recommend looking through this guide for a clearer picture.

From here, it is important to take over. Always proofread the results of your prompts for grammar and fact-checking in case of AI hallucinations. Also, this is a good chance to make edits so it sounds the way it should – written by you and your brand.

Outbound marketing

Now you’re ready to approach your clients. With these tools, they’ll notice you faster, and be encouraged to take the next steps:

Instantly.ai is a cold email software that helps with B2B lead generation. Features like the automated email warmup that warms up your sending email address to avoid being flagged as spam, and their lead finding and management feature help find and organise potential customer information streamline the process.

Apollo.io is designed to be a one-stop solution for B2B outreach. Access to decision-maker databases, email outreach automation, and sales engagement management tools that provide insight across the entire process with analytics letting you know what works.

However, automation at scale doesn’t work with personalisation. Customers want genuine connections with industry experts who understand their specific needs.

Also Read: These 5 companies showcase the power of martech in driving efficient, personalised marketing strategies

A case study we did for one of our clients in the health tech space revealed that our initial approach with a call to action for a discovery call didn’t convert get the results we wanted, sometimes a direct call to action can work, but in this case prospective buyers were not ready to discuss with a business they didn’t know.

Then we shifted our approach to invite prospects for a quick interview to share their insights and challenges they faced with health product design and impact measurement with our client. This adjustment led to a higher hit rate, and through the conversations, the prospects became warm leads, all built from genuine connections that automation couldn’t achieve.

Performance analysis and optimisation

For the final step, reviews and analyses of your marketing activities to chart your progress need to be done regularly.

Customfit.ai offers A/B testing functionalities to compare different versions of your websites and landing pages, with tools to segment dynamic content blocks for different visitors, and in-depth analytics. Their no-code interface makes it easy for your marketing team to dive right in.

Marketing audit

We’ve gone through five marketing activities businesses should engage in, and the AI tools to do so more efficiently. With so many levers and dials at your fingertips, it can be daunting to know where to start.

A marketing audit can put everything in perspective and help check your blind spots. For some businesses, spending money on new channels might seem like a great idea, when in reality, tweaks to existing channels would get results faster and cheaper.

An effective marketing audit will give you a workable blueprint that combines personalisation and automation in an ideal configuration for your business.

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In today’s fast-paced corporate landscape, the role of the second-in-command (2IC) or Chief Operating Officer (COO) is increasingly recognised as pivotal for organisational success. This article delves into the nuanced dynamics of this role, exploring its significance, diverse responsibilities, critical attributes, challenges, and strategies for empowerment.

Significance of the second-in-command

More than 40 per cent of leading global companies hire a COO, highlighting the widespread acknowledgement of the value this role brings to organisations. While some second-in-commands may not hold the official title of COO, their responsibilities often mirror those of traditional COOs, making them indispensable partners to CEOs in steering the company towards its objectives.

Whether it’s managing day-to-day operations, spearheading strategic projects, or aligning various departments, the second-in-command plays a crucial role in translating vision into action.

Variety in roles and responsibilities

The job of a COO is highly adaptable and multifaceted, tailored to meet the specific needs and circumstances of the organisation. Second-in-commands take on a variety of responsibilities, highlighting their versatility and impact within companies. From serving as executors who drive operational efficiency to acting as change agents who lead transformative initiatives, second-in-commands bring a range of skills and perspectives to the table.

Also Read: Confessions of a founder: There’s no fun in fundraising in 2024

In addition, mentors play a vital role in aiding future leaders, while partners collaborate closely with CEOs to enhance organisational effectiveness. Heirs apparent stand ready to succeed CEOs, ensuring smooth transitions and continuity in leadership, while MVPs contribute specialised expertise that is deemed invaluable to the company’s success.

Attributes of success

Successful second-in-commands possess a unique blend of qualities that enable them to thrive in their roles. Acuity, or the ability to quickly grasp complex concepts and juggle multiple tasks effectively, allows them to navigate through ambiguity and make informed decisions in fast-paced environments.

Organisation skills are essential for setting clear priorities, allocating resources efficiently, and maintaining focus amidst competing demands. Moreover, focus on process and structure enables second-in-commands to streamline operations, foster accountability, and drive continuous improvement initiatives. By embodying these attributes, they create a framework for success that underpins the organisation’s long-term viability and competitiveness.

Scarcity and resurgence

Despite their critical role, genuine second-in-commands remain relatively scarce in comparison to CEOs. However, there has been a noticeable resurgence in the prevalence of COOs in recent years, reflecting a growing recognition of their value in driving organisational performance and resilience.

Challenges faced

Modern second-in-commands confront a host of challenges, both internal and external, that test their leadership capabilities and resilience. External challenges such as talent shortages, digital disruption, and supply chain disruptions require agile responses and strategic foresight.

Internally, navigating through role ambiguity, fostering alignment amidst changing priorities, and fostering a culture of innovation pose significant hurdles. Additionally, the pressure to deliver results while managing operational complexities can strain even the most seasoned second-in-command.

Empowerment through upskilling and development

Investing in the development and upskilling of second-in-commands is important for unlocking their full potential and driving organisational growth. Providing opportunities for continuous learning, leadership development programs, and access to coaching and mentorship can enhance their effectiveness and confidence in tackling complex challenges.

Also Read: How startups can overcome the AI talent death

Also, leveraging innovative tools and technologies can empower second-in-commands to drive process improvements, enhance decision-making, and accelerate the achievement of strategic objectives.

Strategies for empowerment and growth

Empowering second-in-commands requires a strategic approach that encompasses both individual development and organisational support. Providing targeted COO coaching and mentorship tailored to their unique needs and challenges can foster personal and professional growth, while also strengthening their alignment with the CEO’s vision and priorities.

In addition, investing in tools and systems that streamline operations, enhance communication, and facilitate data-driven decision-making can amplify the impact of second-in-commands and drive organisational performance.

Fostering peer support and collaboration

Participation in second-in-command peer groups offers a valuable platform for networking, knowledge sharing, and collaboration. These forums provide opportunities for second-in-commands to exchange insights, best practices, and lessons learned, thereby enriching their leadership capabilities and expanding their perspectives.

Moreover, peer support networks can serve as a source of encouragement, accountability, and inspiration, particularly during challenging times.

The role of the second-in-command is far more than a supporting act; it is a strategic imperative for modern organisations seeking to thrive in an increasingly complex and competitive business environment.

By recognising the significance of this role, investing in the development and empowerment of second-in-commands, and fostering a culture of collaboration and innovation, organisations can unlock their full potential and achieve sustainable growth and success.

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Singapore-headquartered last-mile internet connectivity startup Transcelestial Technologies recently inked a collaboration with commercial space station Axiom Space. The move aims to redefine space communications for government and commercial customers in Southeast Asia.

Together, both parties aim to revolutionise space-based cloud infrastructure interoperability using optical inter-satellite links.

e27 spoke with Transcelestial founder and CEO Rohit Jha to learn more about this collaboration.

Below are the edited excerpts:

How did the collaboration between Transcelestial and Axiom Space come about? Can you provide more details on the specific objectives and goals of the collaboration?

Transcelestial was introduced to Axiom Space by our investor EDBI. The Axiom Space team was quite impressed by our ongoing capabilities both technically and operationally in using lasercomms for delivering ubiquitous internet coverage together with our telco partners. We continued exploring this and saw a distinct opportunity to leverage each other’s strengths.

Our objectives include developing laser communication technologies for space applications, enhancing the capabilities of orbital data centres, both large-scale and edge data centres in orbit and achieving significant milestones related to delivering a secure fabric in space in the coming years. This will include some in-orbit testing next few years followed by operational testing and deployments with our customers.

Could you elaborate on the technical challenges that need to be addressed to achieve interoperability between laser comms networks and orbital data centres?

We want to further the goal of creating an interplanetary network.

Step one is establishing a network that can effectively handle Data in Rest and Data in Motion.

Also Read: Transcelestial gets US$10M funding boost to expand its lasercomms tech into US, ramp up in Asia

Data in Motion will be delivered by our Lower Earth Orbit (LEO) Satellite “Ring” network of relays in orbit using our proprietary Laser Communication terminals embedded in LEO satellites. These terminals are relayed to other LEO satellites, space stations, and later, other Middle Earth Orbit (MEO) and Geostationary Equatorial Orbit (GEO) installations in deep space. A network of optical ground stations distributed around key cities will keep our terrestrial internet infrastructure always connected to our ring wrapping the Earth.

Data in Rest is enabled by full Cloud capabilities lifted into Orbit. This includes the independent ability to compute, store, cache, and provide accelerated insights (via GPUs and FPGAs). This capability needs ultra-high bandwidth provided by laser comms (eg datacenters today require stable power and high-speed fibre optics connectivity).

To make this happen, the current high-density commercially available storage and compute solutions need to be rapidly tested, protected and qualified in space, especially in LEO.

What specific technologies will be shared and developed during the technical exchange with Axiom Space?

From Transcelestial’s side, we will be sharing an optical terminal capable of autonomously and independently connecting to and receiving signals from both in-orbit (other LEO vehicles) and on-ground infrastructure. This is technology being built in Transcelestial’s Singapore headquarters.

Along with it, there will be a network management system which will intelligently be able to schedule connections between a test vehicle (either Transcelestial’s or client’s) in orbit with Axiom’s test vehicle.

As a secondary objective, we will also be testing connections down to our mass-manufacturable prototype Optical Ground Station which is currently being tested and developed at our Singapore headquarters.

How do optical inter-satellite links improve space communications compared to traditional methods?

Laser inter-satellite links offer significantly higher data transfer rates compared to traditional radio frequency (RF) methods (technical note below).

For example, traditional RF technologies on earth and space typically only do up to 1Gbps and in some cases 10Gbps as state of the art. We started our first product with 10Gbps data rate capabilities, testing 40Gbps now and on a path to do 100Gbps-1Tbps shortly, even beyond.

Also Read: ‘Internet penetration won’t be enough to bring everyone online’: Rohit Jha of Transcelestial

Greater bandwidth availability allows for the transmission of larger volumes of data, supporting more complex and data-intensive applications. Laser links also provide a higher level of security due to the difficulty of intercepting laser signals compared to RF signals, making it an ideal choice for primary connectivity for any sensitive, national security-related use cases. This is nothing different from the concept of “lasers in pipes” aka the fibre cables we use today, which already power the connectivity for the world’s undersea and data centres.

How does this collaboration fit into Transcelestial’s long-term strategic vision for space communications? What potential industries and applications do you foresee benefiting the most from space-based cloud infrastructure and optical communication networks?

Transcelestial’s mission is to build capabilities (technology and services) that are needed for humanity’s communication needs. We first identified what we now call the Global Internet Distribution problem — a systematic series of complex failures at the urban level, inter-city level and inter-country to continent level that results in most people in the world being “under-connected” (i.e. poor access to bandwidth, bad latency to the nearest multi-cloud gateway and very high price to pay).

We need to solve these challenges both at an urban level distribution alongside a national and international level distribution to address all of the problems. While this provides a new era of a secure internet fabric, away from the crumbling unreliable and insecure Internet distribution we are used to, it is also simultaneously poised to uplift billions into a secure, affordable internet here on Earth and scale to support our efforts in deep space.

How do you anticipate this collaboration will impact the commercial, civil, and defence markets in Southeast Asia? What kind of new products and services do you expect to emerge from the successful deployment of orbital data centres and space optical communications?

We hope to test a variety of services such as faster internet exchanges in Southeast Asia, more efficient and low cost per bit Content Delivery Network capabilities and very immediately, provide a platform to serve emerging small to medium AI models to sit nearer to the people who will be interacting with it.

We look forward to working with more space station and orbital structure providers in using this upcoming capability to generate early revenue by converting them to internet exchanges or neutral host cloud exchanges, with better network access to the worldwide population than the data centres of today. With a global lower latency and edge data centre capabilities in LEO, we also encourage many young minds and enterprises to think of ways new apps, technologies and services can be brought to commercial, civil and defence markets.

Also Read: Transcelestial aims to help telcos roll out 5G rapidly and cost effectively in SEA

Closer to home, when you consider the likes of Indonesia, Malaysia and the Philippines, Southeast Asia collectively has more than 30,000 islands. For now, every network requires an undersea cable which is complex to build and maintain. We have used lasercomms on terrestrial areas to deliver connectivity to Sabah, Sarawak, and Penang in Malaysia (recently commended by Malaysia’s Communications Minister). We expect our space capabilities to allow us to expand these capabilities to islands further away in these archipelagoes.

How does Transcelestial plan to leverage this partnership to grow its commercial networks and diversify its supply chains? What role does Singapore’s Office for Space Technology & Industry (OSTIn) play in supporting this collaboration?

We are focused on vertically integrating as much as possible to allow for engineering and cost efficiencies. Our goal, with the help of Austin and other local partners, would be to establish a local manufacturing and supply chain which can vertically facilitate build-up. We also have very trusted partners providing various subsystem components for our CENTAURI terrestrial platform today. They have worked with us to achieve scale and cost that we desire and we are proceeding to work with or build a similar mindset in the ecosystem when it comes to scale.

There are various ways, financially and qualitatively, the team at OSTIn has worked with us to get here – working on the feedback from the ecosystem to change and adapt to the needs of many young nimble but promising startups here building rockets, engines, satellite bus and other technologies. We look forward to continue working with the team.

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Germany has ambitious climate goals. Under the Federal Climate Protection Act, for example, it aims to become greenhouse gas neutral by 2045. In the shorter term, it is looking to cut emissions by at least 65 per cent by 2030 and 88 per cent by 2040, compared to 1990 levels. This regulatory roadmap underscores Germany’s dedication to climate protection, propelling growth in renewable energy, energy efficiency technologies, and sustainable transportation.

In fact, in recent years, climate tech has contributed significantly, making up 15 per cent of Germany’s GDP, with a noteworthy €5 million (US$5.4 million) investment for green tech products launched in 2023. Today, one in three German startups is involved in the green economy, proving the sector’s potential and supply of opportunities.

Germany has cemented its position as a leader in the production of climate technologies in Europe, particularly in wind power, solar energy, heat pumps, batteries and electrolysers. According to a report by DealRoom, Europe is one of the fastest-growing regions for climate tech, with investments growing seven times since 2016, compared to the already booming 1.7 times in Asia.

These aggressive climate targets and robust infrastructure, combined with the rapidly growing support network from the government, make it increasingly easier for startups to enter the market and thrive in it.

For instance, Germany has taken significant strides in climate and environmental-related policies and regulations, as well as funding and support initiatives, which have created new business opportunities for companies.

Regulations and policies

EU Emissions Trading Scheme (EU ETS) and National ETS

This scheme covers the power sector, heavy industry, and aviation, setting a cap on greenhouse gases that can be emitted, and encouraging companies to reduce emissions or purchase allowances.

Energiekonzept 2050

The policy outlines a comprehensive strategy for a transition to a more efficient and renewable energy supply, focusing on making electrical devices, buildings, and transportation more efficient. It not only underscores the shift towards renewable energy but also presents opportunities in energy efficiency technologies, renewable energy production, and smart grid solutions.

Also Read: Balancing act: Carbon Balance’s quest to tackle climate crises with tech-driven sustainability

Corporate sustainability and due diligence

At the EU level, the Corporate Sustainable Due Diligence Directive proposes strict requirements for companies regarding ESG due diligence. This includes preparing climate protection plans aligned with the shift to a sustainable economy. Once implemented, the directive will ensure that companies align their business models with limiting global warming to 1.5°C, impacting executive remuneration based on target achievement.

The European green deal

This initiative aims for the EU to become a modern, resource-efficient, and competitive economy, with no net emissions of greenhouse gases by 2050 and economic growth decoupled from resource use. It includes actions such as modernising the management of industrial emissions, accelerating the roll-out of electricity grids, proposing a new forest monitoring law, and presenting a European Wind Power Action Plan.

Carbon Contracts for Difference for heavy industry emissions

To support heavy industries like steel, cement, and chemicals towards climate neutrality, Germany introduced a subsidy program with Carbon Contracts for Difference (CCfDs). These contracts compensate companies for the extra costs incurred from adopting climate-friendly production methods.

The program is designed to secure the future competitiveness of German industries by encouraging investments in carbon-neutral technologies, offering a significant opportunity for companies to invest in and develop carbon-neutral technologies.

Funding support and initiatives

Deep Tech and Climate Fund (DTCF)

Established by the Federal Ministry for Economic Affairs and Climate Action and the Federal Ministry of Finance, this initiative aims to invest in companies developing forward-looking technologies, with support of up to €1 billion (US$1.08 billion) in the coming years.

The fund invests in deep tech areas such as Industry 4.0, robotics, artificial intelligence, quantum computing, process automation and companies with a technology-based business model such as digital health, new energy, smart city, new materials and selected biotech areas.

European Investment Bank (EIB) funding

The EIB Group has also been actively supporting the green transition in Germany, increasing its financing signed for green and innovative projects in Germany to €8.6 billion (US$9.374 billion) last year

Grants for startups

Organisations in Germany have also started to recognise the importance of supporting startups in helping the country pursue a cleaner future. High-Tech Gründerfonds, for example, has invested in many startups across various different areas of sustainability since 2005. Deutsche Bundesstiftung Umwelt also has a funding support initiative in place for startups, for up to €125,000 (US$136,250) per project over a term of 24 months.

There’s also Planet-A Ventures, which seeks to, as it puts it, “support founders tackling the world’s environmental problems”. The company focuses on pitches involving climate mitigation, waste prevention, resource efficiency and biodiversity protection, and typically invests from €0.5 million (US$545,000) to 4 million (US$4.36 million).

Seven focus sectors and solutions in demand

In Germany, climate tech offers a vast array of opportunities across numerous sectors, providing an enticing and promising landscape for startups eager to drive meaningful change. Entrepreneurs aiming to venture into Germany’s climate tech sector can explore a diverse range of related industries and sub-industries, such as:

Green mobility

Advancements in battery optimisation and electric vehicle infrastructure are promoting sustainable transportation solutions across Germany.

Also Read: Why these startups focus on informal plastic waste workers in the fight against climate crisis

Solutions in demand: Battery optimisation, electric vehicles and EV batteries, sustainable urban transportation.

Renewable energy

Germany is harnessing solar, wind, and hydrogen technologies to help accelerate its renewable energy goals.

Solutions in demand: Alternative sources of energy such as solar, wind, hydrogen, efficient energy storage and distribution.

Circular economy

Initiatives promoting circular business models aim to minimise waste and maximise resource efficiency in Germany. N&E Innovations is one such company that specialises in circular economy solutions. With its unique technology, Vikang99, it transforms food waste into 100% natural, non-toxic antimicrobial compounds.

Solutions in demand: Circular business models.

Climate fintech

Driving carbon accountability and facilitating emissions trading to support Germany’s transition to a low-carbon economy.

Solutions in demand: Carbon accounting, carbon credits exchange.

Industry decarbonisation

The implementation of innovative technologies aims to reduce greenhouse gas emissions and enhance sustainability within German manufacturing processes. Companies like Evercomm, a startup participating in Scaler8’s Market Access program, are at the forefront, developing solutions that optimise energy usage, monitor emissions, and promote sustainable practices within manufacturing facilities.

Solutions in demand: GHG/carbon capture and utilisation, sustainable manufacturing.

Built environment

Efforts are underway to spearhead smart city infrastructure and develop sustainable construction materials for eco-friendly urban development in Germany.

Solutions in demand: Smart city infrastructure, energy efficiency and decarbonisation, green building materials.

Agriculture and food

Integration of smart agriculture and biotechnology is fostering sustainable farming practices and alternative protein sources in Germany.

Solutions in demand: Smart agriculture, precision farming, sustainable agrochemicals, biotechnology, alternative proteins.

Leveraging the booming German climate tech landscape

Germany’s climate tech landscape beckons with opportunities for innovation and growth across diverse sectors. With strong government backing and a thriving ecosystem, the country provides an ideal environment for startups aiming to drive positive environmental impact while fostering innovation and sustainability.

If you are a startup looking to enter and thrive in Germany’s climate tech sector, Scaler8 stands ready to empower your journey with the support and resources you need to go further – expert mentorship, market insights, an expansive network, and more. Find out more here.

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The above article was first published on Scaler8.

Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic.

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