In today’s interconnected world, technical skills alone are not enough. Whether in business, education, or community building, our success hinges on our ability to understand, navigate, and bridge cultural differences. Cultural intelligence (CQ) is the cornerstone of this ability, helping us lead, connect, and collaborate with people who bring diverse perspectives to our teams.

CQ is an essential skill for any leader or professional, as is adaptability or communication. Diversity brings richness to our workspaces, and it introduces challenges that require intentional action if we are to address them appropriately. This is where CQ comes into play. By prioritising CQ and potentially leveraging AI-driven insights to enhance CQ in our daily interactions, we foster inclusion and build environments in which everyone feels valued, enabling our teams to perform at their best.

Let’s explore eight key practices for building CQ so that we can maximise efficiency, innovation, and unity in our global workplace.

Recognise and respect cultural norms

As a fundamental building block of establishing trust, respecting cultural norms goes beyond polite gestures. Each culture comes with its own set of practices and values, including communication styles, approaches to time, and respect for and expectations of hierarchy. By taking the time to understand these nuances, we signal respect, which in turn creates an atmosphere where mutual understanding can thrive.

Put it into action: Before starting a project with a diverse team, research each member’s cultural background to understand their values. Even small gestures like greeting colleagues in their native language show that you value their perspective.

Adapt communication styles for inclusivity

In cross-cultural settings, communication is as much about how we say things as it is about what we say. Effective communicators adapt their style to meet the needs of a culturally diverse audience, choosing language that is clear, respectful, and free from jargon. A single message can resonate differently across cultures, so tailoring our approach helps prevent misunderstandings and ensures that everyone is on the same page.

Also Read: Human resources hacks for the bootstrapped startup

Put it into action: Consider how cultural differences may influence communication preferences. For example, some cultures prioritise direct communication, while others might see it as too abrupt. Adjusting your style to suit these preferences fosters inclusivity and clarity.

Tailor leadership approaches to fit cultural needs

There is no one-size-fits-all approach to leadership. In a global workspace, effective leaders are those who adapt their methods to align with the expectations of different cultural backgrounds. By doing so, they empower their team members and foster a sense of belonging, which can lead to increased engagement and productivity.

Put it into action: Reflect on your leadership style and assess how it may align or clash with the cultural preferences of your team. For example, some cultures value a hierarchical structure, while others prefer a more collaborative approach. Adapting your leadership to accommodate these preferences shows respect and builds trust.

Listen actively to diverse perspectives

True CQ requires us to listen actively, not just to words but to the perspectives and values behind them. In a diverse team, each member brings a unique view shaped by their cultural experiences. When we listen with empathy and curiosity, we can better understand these viewpoints and build stronger, more cohesive relationships.

Put it into action: Practice active listening by asking follow-up questions to clarify and validate a speaker’s perspective. This helps you go beyond the surface, fostering a deeper understanding of diverse experiences and creating a safe space for open dialogue.

Encourage open dialogue about cultural experiences

Creating a workplace culture that values open dialogue around diversity and inclusion is essential for team cohesion. When team members feel comfortable discussing their cultural experiences, it helps break down barriers and promotes mutual respect. Leaders who actively encourage these conversations help bridge cultural gaps, making the workspace more inclusive and dynamic.

Put it into action: Establish regular opportunities for team members to share their experiences. This could take the form of casual team discussions, cultural awareness workshops, or even informal cultural exchange sessions. Encouraging open dialogue builds trust and creates a supportive team environment.

Foster inclusivity and belonging

Inclusivity is not just about inviting diverse voices to the table, but about making sure those voices are heard, valued, and empowered to contribute. Fostering inclusivity means going beyond symbolic gestures to create a culture where every team member feels a sense of belonging. This not only enhances collaboration, but also fuels innovation, as diverse perspectives bring fresh ideas to the table.

Put it into action: Implement team practices that emphasise inclusion, such as collaborative decision-making or rotating leadership roles. Additionally, ensure that each team member has an equal opportunity to contribute and feels comfortable sharing their insights.

Focus on common goals to unite diverse teams

When we bring together people from different cultures, the possibility for friction is real – but so is the potential for synergy. By focusing on common goals, we give diverse teams a shared purpose, a focal point that enables us to look past cultural divides and concentrate on what unites us. When we align on shared objectives, we create an environment where each individual’s contributions are valued, regardless of cultural background.

Put it into action: Start each project by clarifying the team’s shared objectives and how each member’s role contributes to the larger vision. This helps keep everyone aligned and minimises the potential for cultural misunderstandings that could otherwise arise.

Leverage AI for enhanced cultural fluency

Artificial Intelligence is rapidly emerging as a powerful tool for fostering CQ. By analysing data on cultural preferences, language usage, and team dynamics, AI can help us better understand how to communicate and lead across cultures. Whether through AI-driven language translation tools, sentiment analysis, or team collaboration insights, AI can be our ally in driving more culturally intelligent interactions.

Also Read: Human-driven interaction in an AI driven world

AI doesn’t replace human effort in building CQ, but it can support our understanding and reduce the chance of misunderstandings. By integrating AI tools into daily practices, we gain data-driven insights that help us adapt to cultural needs more effectively and inclusively.

Put it into action: Use AI tools to analyse communication patterns or assess cultural preferences. For example, some platforms offer real-time translation or sentiment analysis that reveal how team members might be feeling about certain interactions. AI tools can provide a layer of awareness that enhances cultural fluency, allowing us to bridge gaps more smoothly and respectfully.

Why CQ matters

The benefits of CQ are far-reaching, including improved communication, increased productivity, and greater innovation. When leaders and team members actively work to bridge cultural gaps, they create an environment where everyone feels valued and empowered. Cultural intelligence, complemented by the strategic use of AI tools, transforms diverse teams from simply coexisting to thriving together.

In a world where borders are increasingly blurred, CQ is no longer an optional skill. Embracing these practices isn’t just about improving team dynamics, but about equipping ourselves for the future. As we develop our CQ, we gain the tools to foster inclusivity, drive productivity, and build a more compassionate, interconnected world.

Our workplaces – and indeed our world – are richer when we engage with each other’s cultures with curiosity, respect, and empathy. As we build our CQ, we’re not only enhancing our professional capabilities, but also creating a legacy of understanding and inclusivity that will carry us forward.

—

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.

Join us on Instagram, Facebook, X, and LinkedIn to stay connected.

Image credit: Canva Pro

The post Cultural intelligence (CQ): The key to unlocking success in global workspaces appeared first on e27.

Earth Venture Capital (Earth VC), a global climate-focused VC firm, has made an undisclosed investment in German biotech startup Cambrium’s seed extension round.

Gradient Ventures anchored this round.

Also Read: Earth VC backs US nuclear energy startup Aalo Atomics

Cambrium develops sustainable biomaterials by fusing AI with biotechnology.  It creates protein-based materials, the building blocks for sustainable alternatives to petrochemical products. Leveraging biotechnology and AI, the startup aims to produce biodegradable materials that replace conventional resources.

Its current focus includes NovaColl, a precision-fermented, skin-identical collagen for personal care, launching in 2024, and plastic-free leather alternatives for fashion, launching in 2025. These innovations cater to rising consumer demand for sustainable products.

The latest funding will expand Cambrium’s production capabilities and accelerate product development in personal care, fashion, and nutraceuticals. By 2025, Cambrium plans to introduce plastic-free leather alternatives and textile coatings.

Also Read: Earth VC joins US-based cultivated meat startup Orbillion Bio’s funding round

Since its founding in 2020, Cambrium has raised EUR 11 million in funding.

“Investing in Cambrium is a direct bet on the future of sustainable materials, which is expected to reach US$138 billion by 2030. Protein-based innovations like Cambrium’s are the game-changers we need to decarbonise industries,” said Tien Nguyen, Founding Partner at Earth VC.

The post Earth VC invests in Germany’s sustainable biomaterials startup Cambrium appeared first on e27.

Malaysia is catching up as a “sexy” place to set up a VC shop in the past year with a series of back to back funding commitments via the fund of funds by the government.  To recap, the Malaysian government announced the “fund of funds” programme in April, which will focus on VC fund managers investing in local startups, with a funding commitment of at least RM5 million (approximately US$1,149,393.88) per VC fund.

Fast forward to October, Khazanah Nasional Bhd, Malaysia’s sovereign wealth fund announced that the “fund of funds” programme will be open to all local Malaysian VC fund managers, focusing on VC fund managers who are raising their first, second, or third fund based in Malaysia or overseas, as well as regional or international VC fund managers seeking to leverage their portfolio companies to add value by expanding into Malaysia.

Regulatory framework for VC fund management in Malaysia

A person seeking to raise and manage a VC fund in Malaysia needs to be registered as a VC fund manager by the Securities Commission Malaysia (SC). 

Key regulations to be aware of include the Capital Markets and Services Act 2007 (CMSA), the  Securities Commission Guidelines on Venture Capital and Private Equity (Guidelines) together with other applicable guidelines that may apply to a VC fund operations. The Frequently Asked Questions should also address common questions based on SC’s past queries. 

Additionally, this year the Practical Guide on Venture Capital and Private Equity in Malaysia was published by the SC with contributions by the Central Bank of Malaysia, Ernst & Young, and the members of Malaysian Venture Capital and Private Equity Association (MVCA) (I co-contributed to the publication under my role at Izwan & Partners). The guide covers common topics from regulatory framework, fund structuring, to fund management and operations. 

Note that existing global VCs with strong track records and at least US$100 million in assets under management may apply to the SC for an expedited approval process via the “VC Golden Pass” programme.

At least one “responsible person”

As an applicant applying to become a VC fund manager, you need to have at least one full-time person designated as a “responsible person.” A “responsible person” must be “fit and proper” (i.e., no past conviction involving any financial crime) and have the necessary relevant work experience (e.g., fund management, corporate finance, management consulting, corporate law) for at least the past five years. The SC may also assess a startup founder as a potential applicant.

Paid up capital requirements

As an applicant, you need to maintain at least RM100,000.00 (approximately US$23,250.00) of net assets at all times. 

Choosing a fund structure

A VC fund may be formed in Malaysia either as an onshore fund by forming a private company or as an offshore private fund as a limited partnership under the Labuan private fund structure.

If a VC fund is formed onshore as a company, the investors will subscribe to new shares on a “capital call” basis based on the total capital commitments. 

Also Read: The state of digitalisation in Malaysia 2024: How other Southeast Asian countries can learn from them

Alternatively, a VC fund may be formed as a Labuan private fund under the limited partnership structure, which is consistent with international practices by having the legal distinctions of limited partners and the general partner. Note that additional rules apply under the Labuan Financial Services Authority (LFSA), as it is considered an offshore domicile.

In our experience, a VC fund may also be formed offshore in other jurisdictions under a “master-feeder” structure or a “fund of funds” structure.

Raising capital from “sophisticated investors”

Like other VC funds overseas, the fund’s information memorandum may only be circulated to “sophisticated investors”. A “sophisticated investor” in Malaysia is defined as a person with a total net assets of RM3 million (approximately US$689,642.68) or a gross annual income of RM300,000.00 (approximately US$68,964.00) or an entity with at least RM10 million (approximately US$2,298,808.94) in assets and other accredited investors (eg, other approved entities like institutional funds). 

Earlier this year, the scope of a “sophisticated investor” was expanded to include professionals in the capital market or in the financial services industry (eg, chartered accountants, licensed financial planners). This includes accredited angel investors (i.e. members of the Malaysian Business Angels Network). 

Tax consideration

As a VC fund manager, you may be eligible for tax exemption on the carry interest and the management fee so long as the fund has been certified by the SC, while LPs that invest in a VC fund  may also be eligible for tax deduction subject to SC’s prior certification. 

Engaging service providers and professionals

When deciding on the fund structure, you may also wish to consult a tax adviser, legal counsel, fund accountant, and corporate secretarial firm to assist with fund structuring matters, from fund documents to agreements (e.g., information memorandum to subscription agreement).

Final thoughts

The new funding programmes will hopefully benefit the local VC landscape and contribute to the growth of both the VC sector and the startup ecosystem in Malaysia.

As a venture lawyer, we have advised VCs in the past on both onshore and offshore funds. In our experience, VCs may need to consider carefully the appropriate fund structure and adhere to compliance obligations. For instance, a VC fund formed outside Malaysia may have different considerations, and other bodies of law may apply to it and its fundraising efforts. Working closely with a venture lawyer helps ensure that your VC fund is set up smoothly.

—

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.

Join us on Instagram, Facebook, X, and LinkedIn to stay connected.

Image credit: Canva Pro

The post Launching a VC fund in Malaysia: A venture lawyer’s guide appeared first on e27.

As startups disrupt Southeast Asia’s legacy business models, the region’s legal profession undergoes its soul-searching mission over how its service is delivered and how to attract and retain top talent. 

Last year, Southeast Asia’s startup ecosystem saw a record US$25 billion investment. Today, the region’s digital companies alone are worth around US$340 billion, a number that is expected to grow to US$1 trillion by 2025.

With companies and startups around the region riding on the digital wave, almost every industry has experienced some form of digital disruption and upheaval of traditional commercial models.

Yet, until recent years, one sector has remained absent from this revolution: law.

However, thanks to the flourishing startup ecosystem and the demands of startups and their founders, that is starting to change.

For the uninitiated, legal technology, known as legaltech, is the convergence of legal services and technology designed to improve legal services (typically centring around making lawyers’ costly manual processes cheaper and more efficient).

Legaltech emerged to provide technology solutions and innovations to law firms, and while the first case management tools emerged as far back as the 1980s, the industry has been slow to adopt them.  

Despite the plethora of very interesting use cases for the legal profession, including automating the creation of legal documents, special tools to help in discovery (the process of sifting through large volumes of evidence during litigation), due diligence and many more, the adoption of such tools within the legal industry has been slow-moving.

Also Read: Legaltech on blockchain is the next hot investment sector. Here’s why

However, the legal profession might not be able to drag its heels as the explosion of startups seeking legal services with more cost transparency, flexibility and efficiency have seen legaltech pivot towards the end-users needs.

Startups, especially those in the early stages, tend to be cautious in resourcing. Everything from getting their business up and running to securing investment costs money they would have traditionally spent with law firms but often can not spare. 

This problem is at the heart of legaltech solutions that aim to service startups and small businesses by removing the need to engage lawyers. Many new and cutting edge startups, especially high-growth technology companies, will also be looking for digitally-enabled solutions to power their backend, including their legal.

In the last few years, legaltech companies have emerged that aim to serve the end-users rather than law firms (sometimes referred to as lawtech). Leveraging technology, these companies can aid early-to-mid stage startups by automating paperwork, speeding up research and drawing up smart contracts. 

Early-stage startups benefit from having access to automated legal docs to help them start, raise and grow. Platforms like SeedLegals allow startups and investors to generate employment agreements, and NDAs raise traditional funding rounds or agile fundraising between rounds and even incentivise teams through option schemes. 

The idea is not to put lawyers out of work but rather to give startups an alternative option when they’re at the earliest stages so they don’t have to spend money they don’t have on bloated legal services.

Startups these days are also nimble, agile and global, so having a fully digital solution such as SeedLegals means they can continue to move just as quickly and efficiently when it comes to their legal.    

Also Read: How to protect your early stage startup from unnecessary legal hassles

In 2021, the legaltech industry drew in more than US$1 billion in funding through 85 funding rounds. Regionally, Singapore and Hong Kong are showing high demand for legaltech, while industry innovation continues to sweep the wider Asia Pacific market. Amid this rise in customer and investor demand, the eyes of talented legal professionals are quickly taking notice.

A new alternative

Last year, 538 burnt-out, disillusioned lawyers in Singapore left the profession for good, citing overwork and toxic behaviour. Despite being one of the most coveted professions, the legal industry suffers from a talent churn.

Every year, Southeast Asia’s law firms and in-house legal teams draw a healthy supply of new entrants, but they need to retain talent has become ever-pressing.

The startup ecosystem presents an increasingly appealing route for lawyers rethinking their traditional career journeys. Of all traditional sectors, the law has been one of the slowest to transform and adapt itself.

The result is smart, educated, well-trained lawyers are leaving the profession entirely in search of more “commercial” roles that offer different types of opportunities. Many have opted to move into product management, business development, strategy and pure technology roles that allow them to leverage the skills they built through traditional legal practice. 

Although moving towards commercial roles isn’t a new phenomenon, nine per cent of global CEOs have a legal background; there are signs the golden handcuffs that law firms once commanded over their lawyers are not quite so golden in the new world we operate in.

For lawyers seeking to bridge the gap between their pedigree and technology, legaltech offers a new world of possibilities powered by digital disruption. Digitally-savvy law students, in particular, are most primed to seek career paths outside traditional legal practice and reshape the industry for years to come.

Armed with legal training and technological understanding, this new wave of lawyers is positioned to drive the growth of the Southeast Asian ecosystem. They are the ones to offer founders and entrepreneurs a seamless way to understand the legal obligations required for their fundraising goals. 

Once relegated to back-office support services, legaltech is now entwined with Southeast Asia’s digital revolution. The rise of legaltech is a win-win for both startups and law firms. As legaltech continues to accelerate, both the ecosystem and the legal industry can transform, thrive, and benefit each other.

–

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.

Join our e27 Telegram group, FB community, or like the e27 Facebook page

Image Credit: Canva Pro

This article was first published on April 6, 2022

The post Why SEA’s startup ecosystem is making a strong case for legaltech appeared first on e27.

Exchange-traded funds (ETFs) have revolutionised the investment landscape, offering a versatile and cost-effective way for individuals and institutions to gain exposure to a wide range of assets. As financial markets evolve, the emergence of crypto ETFs has introduced a new dimension to this investment vehicle, providing regulated access to the volatile and rapidly growing world of cryptocurrencies.

This article outlines the key features of ETFs and crypto ETFs, their advantages, and the potential risks investors should consider.

What is an ETF?

An ETF is an investment fund that holds a collection of assets such as stocks, bonds, commodities, or other securities. Like individual stocks, ETFs are traded on stock exchanges, allowing investors to buy or sell shares throughout the trading day at market prices. ETFs offer several advantages, including diversification, liquidity, lower fees, and tax efficiency, making them an attractive option for both retail and institutional investors.

Key features of ETFs

• Diversification: ETFs typically hold a broad basket of assets, allowing investors to spread risk across various sectors or asset classes. This reduces exposure to the volatility of any single investment.
• Liquidity: Traded on exchanges, ETFs provide greater liquidity compared to mutual funds, which can only be traded at the end of the day. This makes it easy for investors to enter or exit positions during market hours.
• Low fees: Most ETFs have lower expense ratios than mutual funds due to their passive management, often tracking a specific index (e.g., S&P 500).
• Tax efficiency: ETFs offer greater tax efficiency compared to mutual funds by deferring capital gains taxes due to their unique structure.
• Transparency: Many ETFs disclose their holdings daily, giving investors full visibility into what they own.
• Variety: Investors can choose from a wide range of ETFs, including those that track indexes (like the S&P 500), sectors (technology, healthcare), commodities (gold, oil), bonds, international markets, and even specific themes such as ESG (Environmental, Social, and Governance).

Types of ETFs

• Stock ETFs: Track a basket of stocks or specific indexes.
• Bond ETFs: Invest in various types of bonds, such as government or corporate bonds.
• Commodity ETFs: Hold physical commodities like gold or oil.
• Sector/Industry ETFs: Focus on specific industries such as technology or healthcare.
• International ETFs: Provide exposure to foreign markets.
• Thematic ETFs: Invest in companies based on themes such as clean energy or blockchain.

Introduction to crypto ETFs

As the cryptocurrency market continues to gain prominence, crypto ETFs have emerged as a way for investors to gain exposure to digital assets like Bitcoin and Ethereum without directly owning or managing these volatile and complex instruments. Crypto ETFs blend the structure of traditional ETFs with the unique characteristics of cryptocurrencies, providing a regulated and accessible way to invest in the crypto space.

Also Read: Asset classes demystified: Building a strong, diversified portfolio in today’s financial markets

Key features of crypto ETFs

• Diversification: Crypto ETFs can offer exposure to a single cryptocurrency, such as Bitcoin, or a diversified portfolio of multiple digital assets. This diversification helps spread the risk associated with the volatile nature of cryptocurrencies.
• Liquidity: Like traditional ETFs, crypto ETFs are traded on stock exchanges, providing liquidity throughout the trading day. Investors can easily buy or sell shares, similar to trading traditional stocks or ETFs.
• Accessibility: Investors can gain exposure to cryptocurrencies using their existing brokerage accounts, eliminating the need for digital wallets or direct interaction with cryptocurrency exchanges.
• Regulation and security: Crypto ETFs operate under regulatory oversight, providing an added layer of security and transparency compared to direct cryptocurrency investments.
• Professional management: These ETFs are typically managed by financial professionals, who handle the complexities and risks associated with the cryptocurrency market.

Types of crypto ETFs

• Spot crypto ETFs: These ETFs directly hold the underlying cryptocurrency. For example, a Bitcoin Spot ETF holds actual Bitcoin in its portfolio.
• Futures-based crypto ETFs: These ETFs invest in cryptocurrency futures contracts rather than holding the underlying digital asset. Futures-based ETFs introduce additional complexities, including potential discrepancies in performance.
• Thematic crypto ETFs: These ETFs focus on specific themes within the cryptocurrency space, such as decentralised finance (DeFi), blockchain technology, or NFTs (Non-Fungible Tokens).
• Index-based crypto ETFs: Track a cryptocurrency index, which may include multiple digital assets based on criteria like market capitalisation.

Advantages of crypto ETFs

• Ease of access: Investors can gain exposure to the cryptocurrency market without the need for digital wallets or navigating crypto exchanges.
• Regulatory oversight: As regulated financial products, crypto ETFs offer a sense of security and legitimacy compared to unregulated crypto investments.
• Tax efficiency: In some jurisdictions, crypto ETFs may provide more favorable tax treatment compared to directly holding cryptocurrencies.
• Liquidity: Crypto ETFs can be traded like any other stock or ETF, providing flexibility for investors.

Also Read:  How to scale voluntary carbon markets with DeFi and Web3

Risks and considerations

• Volatility: Cryptocurrencies are known for their extreme price swings, which can lead to significant fluctuations in the value of crypto ETFs.
• Regulatory risks: The evolving regulatory landscape surrounding cryptocurrencies poses risks for crypto ETFs, as changes in laws and regulations can impact their operation.
• Management fees: While typically lower than mutual funds, crypto ETFs may carry higher fees due to the complexities of managing crypto assets.
• Tracking errors: Futures-based crypto ETFs, in particular, may experience discrepancies between the ETF’s performance and the actual performance of the underlying cryptocurrency.
• Security risks: Although ETFs mitigate some security risks by managing custody of the digital assets, cryptocurrencies remain susceptible to hacks and cyber-attacks.

Current status and notable crypto ETFs

As of late 2023, crypto ETFs have gained traction in regions with favourable regulatory environments, such as Canada and Europe. In the United States, the approval of Bitcoin and Ethereum ETFs remains a topic of ongoing regulatory discussion.

Notable examples

• Purpose Bitcoin ETF (BTCC): Launched in Canada, this ETF directly holds Bitcoin and is traded on the Toronto Stock Exchange.
• Grayscale Bitcoin Trust (GBTC): While not an ETF, GBTC functions similarly by offering Bitcoin exposure and is traded over-the-counter (OTC).
• VanEck Bitcoin Strategy ETF (XBTF): A futures-based Bitcoin ETF available in the U.S., focusing on Bitcoin futures contracts rather than holding Bitcoin directly.

How to invest in crypto ETFs

• Open a brokerage account: Investors need a brokerage account that offers access to crypto ETFs.
• Conduct research: Evaluate the specific crypto ETF, including its structure, fees, and underlying assets.
• Assess investment goals and risk: Given the volatility of cryptocurrencies, investors should consider how crypto ETFs fit into their overall investment strategy.
• Monitor regulatory developments: Stay informed on regulatory changes, as they can impact the performance and availability of crypto ETFs.

In closing

Crypto ETFs represent a bridge between traditional finance and the evolving cryptocurrency market, offering investors a regulated and convenient way to gain exposure to digital assets. While they provide benefits such as accessibility, liquidity, and diversification, they also come with risks related to volatility and regulatory uncertainties.

As the cryptocurrency market continues to mature, crypto ETFs are likely to play a growing role in the portfolios of investors seeking exposure to digital assets.

—

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.

Join us on Instagram, Facebook, X, and LinkedIn to stay connected.

Image credit: Canva Pro

The post The rise of crypto ETFs: A new dimension in investing appeared first on e27.

Agility is one of the key factors to a startup’s success. In the current climate, with interest rates rising and a recession looming on the horizon, startup valuations have seen a decline as startups adopt a “take what you can get” mentality, feeling the pressure to extend their runways and raise their next rounds. 

This year alone has seen Klarna’s valuation slashed down to just US$6 billion and mass layoffs at Southeast Asian startups such as Sea and StashAway.

Lower valuations and lengthy funding cycles give startup founders less money and flexibility to spend on product launches, customer acquisition and growth. Lower valuations also put founders under more pressure to give away more equity to secure the investment they need in their next funding round.

But accepting a low valuation isn’t the only option available to startups today.

A small and agile solution to a big problem

Rather than facing a 12-18 month cycle to do a full funding round, early-stage startups can shift to agile fundraising, raising small amounts frequently and taking investments opportunistically.

Savvy startup founders already use agile fundraising to grow their businesses, meaning they spend less time holding back business growth as they need to line up the investors and do a full funding round.  

With agile fundraising founders take investment before or between funding rounds. Two of the most popular methods to do that is:

• Advanced subscription agreement (ASA)
• Convertible loan note (CLN)

ASAs allow investors to instantly invest money which will convert into shares at the next funding round at a valuation determined at that future funding round. Familiar usages of this include the ‘Simple Agreement for Future Equity’ (SAFE), which remains popular in the US.

Early investors using an ASA may also benefit from a discount on the price per share paid by investors in the next funding round or by setting a cap on the maximum valuation amount at which the ASA will convert at the next round.

Meanwhile, founders benefit from an immediate funding injection that can be used to extend their runway or to invest in growth. Using an ASA, home set-up service Just Move raised US$7864445.49 (SG$11 M) from over 100 investors, tapping each one as and when the opportunity arose.

Also Read: Fundraising 101: How to approach investors

CLNs are short-term debt instruments that give investors debt into a company that can convert into equity either in the next funding round or at a specified deadline known as a longstop date.

For investors, CLNs are an attractive option as they provide an interest rate and more protection in the event of insolvency, liquidations and if the debt ranks higher than equity. In addition, investors are more likely to back their money if the company fails to raise a qualifying funding round.

Who is agile fundraising right for?

While early-stage founders may be the most obvious beneficiaries of agile funding, that’s not to say those who have already raised multiple funding rounds cannot benefit from it too.

One such scenario is when the founder has found their first investor who is willing to invest, they may use ASAs to commit the investor and access funds sooner while they search for other investors. This process can be repeated for each investor.

Through ASAs, founders obtain their investment immediately and can use the funds to invest in the startup’s growth or extend their runway.

It is generally easier for prospective investors to view a founder’s business positively when an investor is already committed and has already transferred funds.

ASAs are also useful if founders and investors cannot agree on a valuation or need more time to choose one. In these situations, ASAs give founders sufficient funding to provide them with more time to work on their startup’s valuation.

Agile fundraising works for founders who are eyeing involvement from particular investors. In cases when the founder has landed their dream investor and has a significant amount of their target raise committed, it may be wise to close the round and continue raising via mechanisms that allow for a top-up.

Other incoming investors would sign up to the same terms as the existing round. This allows founders to receive funds and put them to work immediately while continuing to fill and complete their rounds using top-ups.

Agile fundraising is an essential method for founders needing easy-access funding to stay afloat. With funding from either ASA or instant investments in their pockets, founders then can better utilise the time to focus on their business. They can also navigate delays to larger funding rounds while focusing on their startups’ growth.

In times of economic upheaval, agile fundraising could be the most feasible and durable solution for founders to raise funds. Investors, meanwhile, can stay in the game without committing huge sums amid uncertainty. It’s a win-win for both parties.

–

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

Join our e27 Telegram group, FB community, or like the e27 Facebook page

Image credit: Canva Pro

This article was first published on September 12, 2022

The post How to inject agility into your fundraising appeared first on e27.

Fintech Frontiers: Uncovering Deeper Opportunities for Investment and Venture Creation

At Echelon Philippines 2024, the panel ‘Fintech Frontiers: Uncovering Deeper Opportunities for Investment and Venture Creation’ brought together industry experts to explore emerging trends, niche markets, and potential disruptions in Southeast Asia’s financial technology landscape and delved into the opportunities and challenges facing the fintech sector in the region.

Moderated by Naveen Asrani, Head of Strategic Growth at AWS for ASEAN, the panel featured Jeremy Young, Associate at Gentree Fund; Juancho Jimenez, Vice President at Openspace VC; Sevastian Romberg, Co-Founder and Managing Director at Premise; Luis Buenaventura, Assistant Vice President at GCash.

The panel explored fintech’s transformative impact on banking, payments, and insurance, highlighting the potential of AI-driven financial services, blockchain, and digital banking to reshape these sectors. Key areas of opportunity emerged in untapped markets where fintech innovations could address pressing needs in the region, such as enhancing financial literacy and developing tailored lending solutions for SMEs.

Also Read: Echelon Philippines 2024: The power of collaboration – corporates and startups join forces

Regulatory hurdles and the challenges fintech startups face as they scale were also a focal point, particularly in Southeast Asia, where navigating complex regulatory landscapes is essential for sustainable growth. Additional insights covered the region’s credit gap, rising opportunities in insurtech, and the growing demand for cloud-based payment infrastructures.

The session concluded with insights on how innovative financial technologies, like AI-driven services and blockchain, can transform Southeast Asia’s economy.

Watch the session video above to learn more about these insights and the strategies shaping the future of entrepreneurship.

—

The post Echelon Philippines 2024: Uncovering deeper opportunities in Southeast Asia’s fintech landscape appeared first on e27.

Dear reader,

Southeast Asia’s venture capital landscape in 2024 showcases the region’s resilience and its strategic potential. Amid global economic uncertainties, startups across diverse sectors—particularly fintech, AI, cloud services, and sustainability—continue to attract substantial funding.

This sustained interest underscores Southeast Asia’s role as a burgeoning innovation hub, supported by a young, tech-savvy population, and a growing digital economy. Countries like Singapore, Indonesia, Thailand, and the Philippines are home to some of the year’s largest funding rounds, as seen in companies like Ascend Money, Supabase, and NIUM, which are actively leveraging technology to address evolving consumer and business needs.

VCs are drawn to the region’s opportunities in areas such as financial inclusion, cloud infrastructure, and digital transformation, boosted by supportive government policies.

This trend is not only fostering economic growth but also driving a competitive environment where startups with disruptive solutions are thriving. As funding momentum continues, Southeast Asia could see a steady emergence of unicorns and “soonicorns,” especially as more investors look to capture the growth in these underserved markets.

The region’s entrepreneurial spirit and digital transformation initiatives highlight a promising trajectory, establishing Southeast Asia as a powerful player on the global startup stage.

Sainul,
Editor.

—

NEWS & VIEWS

NTU, Walden International launch US$38M fund to support deeptech startups
Nanyang Frontier Fund will support deeptech spin-offs from Singapore’s Nanyang Technological University (NTU); It is the city-state’s first venture capital fund dedicated to a university.

Funding Societies expands financial reach with new HSBC credit facility
This transaction forms part of HSBC’s cumulative commitment of over US$100M since its partnership with Funding Societies that began in 2022.

SEA digital economy jumps from US$4B in 2022 to US$11B in 2024
Although the exit environment still poses difficulties, early-stage companies in SEA demonstrated impressive strides towards profitability, according to the e-Conomy SEA report.

SEA startup funding rebounds month-on-month but faces yearly decline
Startups in the region raised US$197 million in funding across 29 rounds in October 2024, down 74 per cent from the same period last year.

The Z Label raises US$11.4M to fuel Gen Z-inspired tech innovations in HK
Beyond Ventures is the lead investor; The Z Label is a tech-centric venture-building group focusing on the intersection of emerging technologies and GenZ consumer trends.

Capital C bags investment to build financial inclusion super app for SEA
The investors include Phillip Private Equity and Azure Capital; Capital C provides personal payday loans, business loans, partnerships, and acquisitions advisory through digital micro-financing and strategic planning.

CARDS raises funding to revolutionise school management in Indonesia’s smaller cities
The investors are Katha VC, DS/X Venture, and EduSpaze; CARDS is designed to digitise various operational functions of schools, ranging from administration and finance to digital payments.

Wavemaker Impact launches Numat to transform bamboo into sustainable products
Numat runs mobile bamboo processing units that convert bamboo poles at the harvest site into various pre-processed formats for processors worldwide.

Crypto CEO kidnapped in Toronto, released after paying US$1M ransom
WonderFi CEO Dean Skurka was reportedly shoved into a vehicle in downtown Toronto during rush hour, only to be released uninjured after electronically sending $1 million (presumably CAD) to his captors.

India raids Amazon, Flipkart over investment law breaches
The raids at 19 locations in New Delhi, Mumbai, and Bengaluru followed a report alleging violations of foreign investment rules by these e-commerce firms.

Dash Electric secures seed funding to scale EV-as-a-service across Indonesia
Radical Fund and Bali Investment Club are the lead investors; Dash Electric aims to accelerate the adoption of electric vehicles in Indonesia by providing green supply infrastructure to businesses.

Malaysia’s digital bank GXBank introduces new products & tech startup accelerator programme
The accelerator programme will provide personalised mentorship from industry leaders, alongside expert-led workshops on innovation, market entry, and securing investment.

Earth VC invests in Germany’s sustainable biomaterials startup Cambrium
Cambrium’s current focus includes precision-fermented, skin-identical collagen for personal care and plastic-free leather alternatives.

FEATURES & INTERVIEWS

From fintech to IoT: Southeast Asia’s standout startups with the largest funding rounds in 2024
Southeast Asia’s startups, particularly in fintech, cloud services, sustainability, and AI, have maintained strong investor interest.

DRVR-Sentiance combination plans to transform motorcycle safety in SEA with AI
DRVR and Sentiance will enhance on-device processing for faster, advanced motorcycle safety solutions tailored to the on-demand economy.

A closer look into the digital economies of Indonesia, Philippines in 2024
When it comes to the digital economy, both countries saw notable growth in e-commerce, with video commerce making shopping more interactive.

Path to profitability: How SEA startups are thriving in 2024’s digital economy
The emphasis on effective monetisation, operational efficiency, and adapting to consumer behaviour further supports the digital economy.

FROM THE ARCHIVES

All you need to know about debt and equity financing
This article examines the common forms of debt and equity financing adopted by private companies incorporated in Singapore to raise funds.

Governing your startup: What founders can learn from politics and vice versa
It would benefit the startup community to look at itself not only as a niche business ecosystem but as one woven into the fabric of society.

Breaking down geography-based salary for your global teams
Geography-based pay comprises many complex factors, which is why it is crucial to acknowledge various approaches to implement these policies.

What business owners should know before setting up foreign entities
If you are considering expanding your team overseas in the long run, it is more beneficial to establish a foreign entity.

Why SEA’s startup ecosystem is making a strong case for legaltech
Startups are seeking legal services which are more cost transparent, flexible and efficient, and legaltech is here to provide that and more.

Digital bank licences: Why does everyone want a slice of the unbanked?
Digital banks seek to improve digital literacy and to lessen financial inequality amongst the underbanked population.

Digital banking in Indonesia: Growing importance and future trends
Ivitech.Drive is spearheading advancements in Indonesia’s digital banking sector, paving the way for a robust financial future.

Do cards have the opportunity to flourish in Southeast Asia’s digital payment services landscape?
The advent of the pandemic has catalysed significant transformations within the payments landscape across Southeast Asia.

Ransomware wake-up call: Why Indonesian businesses need more than just antivirus
In today’s digital age, an antivirus alone is no longer sufficient; it’s time to bolster our defences and make cybersecurity a top priority.

Cracking the code: Decoding 4 myths in Indonesia’s startup realm
This article highlights four common misconceptions that founders might have that can either make or break a startup.

How to meet your customer expectations fluently with the power of business messaging
The conversational future is here, and businesses need to start exploring how to incorporate business messaging into their marketing strategy.

How does marketing agility fuel disruptive innovation?
Marketing agility enables the organisation to become more proactive, even in this era of fast-changing customer needs and wants.

Why content strategy is vital for your B2B startup’s long-term growth
Content is vital in generating leads, especially for B2B startups, and should be considered a long-term investment.

From automation to hyper-personalisation: Leveraging AI for smarter marketing
With AI increasingly being embedded into marketing technology and platforms, it is important to keep in mind that marketing still hinges on humanity.

THOUGHT LEADERSHIP

Launching a VC fund in Malaysia: A venture lawyer’s guide
Malaysia’s VC scene is booming as the government’s “fund of funds” program draws local and international VCs, spurring new fund launches.

5 AI strategies for Singapore retailers to sleigh holiday sales and beyond
While peak sales seasons may challenge large-scale expansion, AI can help retailers enter new markets more smoothly.

Institutional interoperability will usher in the next iteration of Web3
Decentralised finance looks set for its take-off season on a global level, but has blockchain interoperability matured enough?

The post Ecosystem Roundup: SEA’s largest funding rounds of 2024 | NTU, Walden launch US$38M deeptech fund appeared first on e27.

Dash Electric, an Indonesian electric vehicle (EV)-as-a-service startup, has closed an oversubscribed seed funding round.

The round, the details of which remain undisclosed, was led by The Radical Fund, with Bali Investment Club (BIC) as co-lead.

Gojek co-founder Kevin Aluwi, Schneider Electric Energy Access Asia (SEEAA), Aksara Ventures, and existing investor Antler also co-invested.

Dash Electric will use the funds for expansion, enabling it to increase driver onboarding, grow its EV fleet, and develop in-house software to enhance fleet management.

Also Read: Revolutionising urban commutes: Southeast Asia’s prominent electric two-wheeler startups

“Our mission is to make EV adoption effortless for both businesses and drivers,” said CEO and co-founder Aditya Brahmana. “With Dash, companies can focus on their core business while we handle the logistics.”

Launched in 2023 by Aditya Brahmana and Robert Mulianto, Dash Electric is a B2B platform building an EV fleet of on-demand delivery drivers. It helps businesses book, track, and manage deliveries at scale.

The company plans to build seamless API integrations with clients, optimising its service for greater operational efficiency.

Alina Truhina, CEO of The Radical Fund, praised Dash’s disruptive potential in Indonesia’s logistics sector. BIC’s Managing Partner, Nicolo Castiglione, highlighted Dash’s alignment with Indonesia’s EV goals and its commitment to sustainable growth. Founded in 2023 by Aditya Brahmana and Robert Mulianto, Dash Electric supports Indonesia’s 2040 target for 100% EV adoption, partnering with clients in logistics, e-commerce, retail, and food delivery to enable sustainable, seamless deliveries.

The post Indonesia’s Dash Electric closes seed financing round to grow its EV fleet appeared first on e27.

In today’s data-driven landscape, businesses face an overwhelming influx of information from every direction. This flood of data can obscure what truly matters for strategic decision-making, especially as companies navigate shifting consumer behaviours and heightened expectations for rapid, data-backed decisions. The pressure is on leaders to remain agile and informed, but limited time and resources often make it difficult to process data effectively and spot actionable insights quickly.

But this challenge can be tackled using AI as proposed by Singapore-based EVOV AI.

With its ability to process vast datasets quickly, AI can identify trends, offer predictive insights, and generate decision-ready recommendations. For marketers, this means moving from a reactive stance to one that is anticipatory and strategic.

“Our focus is on helping marketers and business owners get the most out of video content, which is becoming essential for brands across all industries. Many marketers struggle to understand what works, adapt to the rapid pace of trends, and accurately measure their campaigns’ impact,” says Dr Yi Chenyu, CEO at EVOV AI.

“Our platform is designed to address these issues by giving marketers real-time, cross-platform insights and recommendations they can act on. What makes EVOV AI unique is its multimodal AI engine, predictive modelling, and explainable recommendations.”

Also Read: How does marketing agility fuel disruptive innovation?

The team works with a diverse range of users, including marketing teams from established brands and smaller, emerging brands aiming to grow their online presence. To reach these audiences, they use a freemium model that allows users to try the platform with essential features before upgrading if they find value.

They also collaborate with marketing agencies and influencers to promote and showcase the benefits of EVOV AI. Digital marketing is another key part of their strategy, utilising SEO, SEM, and social media marketing to reach a wider customer base.

Executing their growth plan

The founding team of EVOV AI brings together expertise in AI, data science, and business. As the lead AI researcher, Dr Yi holds a PhD in deep learning and video analytics, while Chance Fu, the company’s tech lead and former tech lead at Thales, is a skilled full-stack developer with a strong background in big data.

Software architect Danny Zhang contributed to developing the TikTok Live Data Platform, and business manager Isaac Wu is a serial entrepreneur with experience in scaling tech companies.

Additionally, Prof. Li Haoliang, an AI expert, serves as an advisor. Currently, the team comprises eight passionate members across AI, engineering, and business.

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

The startup is currently self-funded by the founding team and supported by university and government grants. It is actively looking for a seed funding round to accelerate growth through product development, talent acquisition, and marketing.

EVOV AI is one of the startups that participated in the L’Oréal Big Bang Beauty Tech Innovation Program; Dr. Yi believes that the experience has been “incredibly beneficial” for the company.

“It has given us the chance to showcase EVOV AI’s capabilities to a broader audience in the beauty sector, which is a key market for us. We have also had the chance to connect with industry leaders and get direct feedback on our platform,” he says.

“Participating in this programme is a huge validation of what we are doing, and it is helping us build the credibility we need to approach the big brands. Our goal is to establish partnerships with more beauty brands and continue refining our solutions to fit industry-specific needs.”

When asked about their plans for 2025, Dr. Yi said that it would be “an ambitious” year.

“First, we are working on an AI-powered video marketing agent that will guide marketers from the idea stage all the way to execution, making the entire process easier and more efficient. We are also planning to expand into new industries such as F&B and e-commerce, which are a natural fit for our platform,” he explains.

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

“Geographically, we want to extend our reach into other parts of Asia, such as Hong Kong. We also plan to reach other markets in Oceania and North America. And, of course, as we grow, we will add to our team to ensure we can support our expanding client base. It’s going to be an exciting year!”

—

Image Credit: EVOV AI

The post EVOV AI helps companies leverage AI to turn data overload into strategic insight appeared first on e27.