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These 5 fintech startups cater to the bottom of the income pyramid in Southeast Asia

These five ventures have the potential to bring hundreds of millions of people into the mainstream

The kind of social impact that startups around the world have created is massive. They not only make people’s lives easier and better, but also generate millions of employments in their respective markets and contribute to the economic growth. Some build companies with the single goal of profit, while some others have twin objectives of profit making and impact making.

Of all the industries, fintech is probably a vertical that has brought in massive changes to the lives of millions of people around the globe. The industry has played a vital role in democratising the banking industry and level the playing field. Fintech has forced banks to be innovative and competitive.

Since the beginning of the fintech revolution, hundred of products and solutions have been developed and deployed by different startups, targeting the underbanked, or those living on the bottom of the income pyramid.

Here we introduce to you five such startups, which are striving to create an impact through their innovative products in their respective markets in Southeast Asia.

Kredivo (Indonesia)

Getting a loan from a bank is no mean task. If you approach a bank for a loan of any kind, the bank will ask you a lot of questions, check your creditworthiness and ask you to pledge a collateral. Getting a loan sanctioned by the bank may take weeks and even months.

Kredivo, a product of Indonesian startup FinAccel, aims to address this with its a digital payment solution. It provides different options of payment methods and terms to help customers break large payments into monthly, affordable, and safer payments. The startup gives users the convenience to buy now and pay later in 30 days with no interest or with 3-month, 6-month, or 12-month installments. Users need to put in basic details and their social networking account details to avail the loans provided by Kredivo.

The company uses data science in credit-scoring algorithms, combined with more traditional measures such as credit history and income, to determine creditworthiness, unlocking access to credit to a whole new set of consumers.

To date, Kredivo has raised more than US$30 million in funding, from investors including Telkomsel Mitra Inovasi (TMI), MDI Ventures, Jungle Ventures, Openspace Ventures, GMO Venture Partners, Alpha JWC Ventures, and 500 Startups.

MyCash Online (Singapore, Malaysia)

Being migrants themselves, Mehedi Hasan Sumon and Nurol Haq know the major challenges faced by the massive 40 million migrant population in Malaysia — one being the inability to access various financial services, as most of them are unbanked. The duo’s urge to solve this problem drove them to start MyCash Online, an online financial marketplace for the underbanked migrant population in Southeast Asia.

In 2014, the two met while working for a Value Added Service (VAS) company in Kuala Lumpur. Whenever they met, they would talk about the problems of migrant population in Malaysia, particularly those coming from Bangladesh, India, Nepal and Pakistan. They wanted to develop a simple and cheaper financial alternative for them. This led them to start MyCash Online.

Incorporated in 2015 and headquartered in Singapore, MyCash provides a tailor-made platform for the unbanked migrant population, where they can purchase products and services online without using any bank account, credit cards, or prepaid cards. Users can reload phone credit, pay bills, and buy bus tickets through MyCash.

It offers many services, including local and international mobile recharge, utility bill payments, cross- border money transfer, wallet transfer, bus and air ticket, e-commerce voucher, dry foods and other products, PA insurance and many more. Migrant worker can fulfil all most all their needs through our platform.

In June last year, MyCash raised RM500,000 (US$120,000) through equity crowd-funding platform pitchIN. A significant part of this investment came from Hong Kong-based JC Management.

HelloGold (Malaysia)

Traditionally, gold savings has been classified as a financial product for the upper class, but here is an app to give everyone access to gold savings and to serve as a secondary platform for savings.

HelloGold is a mobile app that allows you to buy and sell gold on a single platform for as little as RM1. You can manage your account and enjoy competitive buying and selling prices in the market. Your physical gold is fully insured and stored in a secure vault.

Founded in 2015 by Malaysian co-founders Robin Lee and Ridwan Abdullah, it claims be the world’s first Shariah- compliant gold mobile application that “changes the way you buy, sell, send and redeem physical gold”. The company also runs a digital token called GOLDX, a ERC-20 token the startup has pegged to gold. What this does is allow people to make transactions outside of the platform. Without the crypto tokens, the app is a self-contained wallet.

Last year, the startup raised an undisclosed sum in Series A funding from 500 Startups.

Julo (Indonesia)

Julo is a P2P lending startup that has developed a digital data-driven credit underwriting and risk assessment platform to process consumer loan applications and determine their creditworthiness through its mobile app. The app uses Machine Learning technology to provide tailor-made, low-interest instalment credit products to the unbanked population, most of whom are tech-savvy young people and micro-entrepreneurs currently locked out of the formal financial system.

With low overhead costs thanks to a purely digital architecture, Julo offers competitive interest rates to no-file or thin-file borrowers at 4 per cent per month.

Last year, Julo raised US$5 million in a Series A funding round, led by Skystar Capital and East Ventures. Gobi Partners, Convergence Ventures, Provident Capital, Central Capital Ventura, Heyokha Brothers, and other investors also participated in the round.

soCash (Singapore)

Headquartered in Singapore, soCash is a classic example of out-of-the-box thinking.

In developing countries in Asia, millions of people still deal with cash, in spite the massive growth of digital banking services. These people often rely on money-dispensing machines a.k.a ATMs to withdraw cash for their daily needs. In some countries in this part of the world, people often have to walk or drive kilometres in search of the nearest ATMs, which add inconvenience to their lives.

Now, from the banks’ point of view, setting up and maintaining ATMs is a money-draining affair. This often runs into  millions of dollars and also affects their bottom-line. Three entrepreneurs have decided to address this challenge and came up with an innovative concept called soCash. Headquartered in Singapore, soCash is a fintech startup that allows bank customers to perform banking services like cash withdrawal and loan applications at retails shops via a mobile app.

A few days ago, it has raised US$6 million in its Series B round of funding led by Japan’s cash automation tech company Glory Ltd.

Photo by Peter Hershey on Unsplash

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4 hottest HR trends to watch out in 2019

As employers find it challenging to hire individuals,  here are the upcoming trends in HR

Today, HR professionals are not just looking for employers that offer fat paychecks.

They’re more concerned about engagement and promoting wellness.

Technology is making strides in the current competitive market; people who are adapting to newer technologies remain to be the hottest trend.

Here are the top four HR tech trends you need to watch out for:

 

Natural Language Processing (NLP)

Also Read: Health and wellness startup The FIT Company acquires three local startups

Natural language processing, a subset of artificial intelligence provides software with the ability to comprehend the human language in either spoken or written form.

For instance, a recruitment chatbot can pick up a conversation with the applicants for the initial stage like asking them for their resume, contact information, knowledge, skills, and even inquiring regarding the candidate’s experience to scheduling interviews with the recruiter.

As technology keeps growing, NLP will be applied in several areas of human resources.

The rise of natural language processing has transformed the way workers perform tasks.

Automated chatbots are now used frequently by many businesses. Such practices will enhance HR in becoming responsive.

Talent analytics

The HR tech is on the verge of taking people analytics to a different overall horizon. From predictive analytics to the generation of talent analytics.

Several HR functions today are engaged in producing analytics. However, the usage is on the lower side. Reason being an organisation gets laid back in selling one or more product.

Working with data has laid down a great foundation to the HRs, allowing them to understand talent insight and the way businesses function.

Augmented analytics

Also Read: Success through planning — a wakeup call for “startup snobs”

Augmented analytics is a whole new class of smart software offering HR professionals as well as people leaders a better way to analyse their data and draw a conclusion out of it.

You can easily automate insight using machine learning and NLP using augmented analytics.

According to Belong, augmented analytics projects itself to be the next wave of disruption in the field of data and analytics job market.

This will help HR technology build and scale up their team in pretext to present insights to customers or stakeholders take a better decision.

Practical AI

With the hype and the buzz around AI in 2018, 2019 now is said to be the year for realistic AI.

HR leaders will now have to focus more on the technology and how this will solve the problems that leaders and professionals in the HR domain are facing.

Though the hype is here, it will still take time to cause an impact.

The fact that we know what is and what will come to be tomorrow, organisations should focus on fulfilling the needs of tomorrow.

Also Read: Bill & Melinda Gates Foundation invests in Indonesian healthtech startup Halodoc

 

Editor’s note: e27 publishes relevant guest contributions from the community. Share your honest opinions and expert knowledge by submitting your content here.

Join our e27 Telegram group here, or our e27 contributor Facebook page here.

Image Credit: Hunters Race

 

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Ex-Zalora CEO’s robo-advisor startup StashAway raises US$12M for APAC expansion

StashAway is a digital wealth management platform that delivers automated, personalised portfolio management to each client’s individual portfolios

StashAway founders

StashAway, a robo-advisor for both retail and accredited investors, has completed a US$12 million Series B round of funding led by Eight Roads Ventures, the proprietary investment arm of Fidelity International.

Existing investor Asia Capital & Advisors, the PE firm led by Francis Rozario and Aaron Rozario, also participated in the round, which brings the Singapore startup’s total funds raised to date to US$20.4 million.

As per an agreement, Raj Dugar, Managing Partner Asia at Eight Roads Ventures, will join the Board of Directors.

StashAway Co-founder and CEO Michele Ferrario said: “The financial backing from Eight Roads Ventures, one of the earliest investors in Alibaba, alongside the continued support of Asia Capital & Advisors, will accelerate our investment product development for our clients in Singapore and Malaysia, while also supporting market expansion throughout the APAC region and doubling down on financial education content development and distribution.”

Also Read: A peek inside the culture at Stashaway

StashAway was founded in 2016 by Ferrario, former chief of Zalora Group; Freddy Lim (CIO), former MD and Global Head of Derivatives Strategy at Nomura; and serial tech entrepreneur Nino Ulsamer (CTO).

It is a digital wealth management platform that delivers automated, personalised portfolio management to each client’s individual portfolios. Its risk-management investment strategy ERAA is designed to maximise clients’ long-term returns while keeping each individual customer’s specific risk exposure constant through changing economic cycles.

StashAway has a Capital Market Services License for Retail Fund Management from the Monetary Authority of Singapore, and a Capital Market Services License for Digital Investment Management from Securities Commission Malaysia.

StashAway currently employs 40 people across its two offices in Malaysia and Singapore.

In March 2018, StashAway closed US$5.3 million Series A funding round from a group of family offices and individual investors.

“Since launch, StashAway has proven not only to be at the forefront of advancing the investment experience, but has also shown, especially over the past year of significant market volatility, the resilience of the investment strategy and the team in dealing with market ups and downs,” said Francis Rozario, who was previously the CEO and Executive Director of Fullerton Financial Holdings, a subsidiary of Temasek Holdings.

“StashAway has emerged as a market leader for low-cost, sophisticated, institutional-level investing for retail and accredited investors alike. This has only served to further increase my confidence that the business can continue this trend in additional underserved markets in the region,” added Rozario.

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Nutrition Technologies seals Series A to set up insect protein production facility in Southeast Asia

The company raises funding from Openspace Ventures and SEEDS Capital of Enterprise Singapore

Singapore-based agtech company Nutrition Technologies announced today it has raised an undisclosed sum in Series A round from a host of investors, led by Openspace Ventures and Enterprise Singapore’s investment arm SEEDS Capital.

The proceedings from this round will go into establishing an insect protein production facility in Southeast Asia, which aims to produce over 18,000 tonnes of insect-based feed ingredients and organic fertilisers every year.  The new facility will incorporate Nutrition’s insect-rearing production system to manufacture Hi.Protein insectmeal, its flagship product. The goal is to market it as an economical and scalable alternative to competing for fishmeal products on the market.

A significant portion of the funding will also be used to continue its black soldier fly genetics and biology research.

Founded in 2014 by Nick Piggott & Tom Berry, Nutrition manufactures sustainable animal feed ingredients and organic compost, using a combination of special selected bacteria and black soldier fly larvae to recycle nutrients from agricultural and food processing by-products.

The whole project is supported under Startup SG Equity’s scheme for private-sector investment for startups through government equity co-investment.

Also Read: The Singapore-based startup that wants to cut bad sugar secures US$5M funding

“The key to be successful in this sector is being able to produce a consistently high quality product at an affordable price for feed manufacturers without charging a sustainability premium,” said Nick Piggott, Co-founder and CEO of Nutrition. “We have achieved this by developing a unique combination of bio-processing steps, which enables us to optimise the nutrient uptake in our insect larvae.”

There’s been an increase in demand for livestock and seafood in recent years. However, the demand is not met by the global fishmeal supply for livestock feeding, causing a deficit in high-grade proteins. This has triggered Nutrition to turn to black soldier fly larvae as a sustainable protein alternative to fishmeal, a commonly used ingredient in animal feed.

Also Read: Online food company Grain secures US$10M Series B funding

Hian Goh, Partner at Openspace Ventures, shared that the investment the VC made into Nutrition Technologies is also a part of its “OPENHAND” initiative to follow United Nations-supported Principles for Responsible Investment leveraging environmental, social, and governance factors in the agri-food tech space to feed the world.

Moving forward, SEEDS Capital and Enterprise Singapore are to continue to work with Nutrition Technologies to connect with industry partners in aquaculture and alternative protein innovation.

Photo by Antonio Grosz on Unsplash

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Today’s top tech news, July 29: SoftBank to increase investment in Tokopedia

In addition to SoftBank and Tokopedia, we also have updates from ONE Championship, StashAway, and Nutrition Technologies

tokopedia_funding_news

The company’s HQ in South Jakarta

SoftBank to increase investment in Grab, Tokopedia – Bloomberg

In addition to investing US$2 billion in Indonesian market through Southeast Asian ride-hailing giant Grab, SoftBank Group founder Masayoshi Son also announced that the group will increase its investment into e-commerce giant Tokopedia, Bloomberg reported.

Speaking to the press following a meeting with President Joko Widodo today at Merdeka Palace, Son stated the investment into Tokopedia is aimed to push for the company’s further growth.

The group also has plans to explore investment opportunities in the electric battery and renewable energy sectors in Indonesia.

The meeting with President Joko Widodo was attended by Grab CEO Anthony Tan, Grab Indonesia President Ridzki Kramadibrata, Tokopedia CEO William Tanuwidjaya, Coordinating Minister of Maritime Luhut Binsar Pandjaitan, and Head of Investment Coordinating Board Thomas Lembong.

ONE Championship, Dentsu team up to launch e-sports championship – Official Statement

In a LinkedIn post, ONE Championship Chairman and CEO Chatri Sityodtong announced that the company has formed a partnership with Japanese media agency Dentsu to launch ONE Esports, an e-sports championship series.

The event will be held in October in Tokyo and in December in Singapore, featuring games such as Dota 2, Street Fighter, and Tekken. It is held in partnership with leading e-sports producer PGL.

Sityodtong also named media and e-sports veteran Carlos Alimurung as CEO of ONE Esports.

Also Read: Sources: Tokopedia is involved in a funding round for Sayurbox

Singapore-based agritech startup Nutrition Technologies raises Series A – e27

Singapore-based agritech company Nutrition Technologies today announced an undisclosed Series A funding round from a host of investors, led by Openspace Ventures and Enterprise Singapore’s investment arm SEEDS Capital.

The startup plans to use the funding to establish an insect protein production facility in Southeast Asia, which aims to produce over 18,000 tonnes of insect-based feed ingredients and organic fertilisers every year.

The new facility will incorporate Nutrition’s insect-rearing production system to manufacture Hi.Protein insectmeal, its flagship product.

A “significant” portion of the funding will also be used to continue its black soldier fly genetics and biology research.

StashAway raises US$12M for APAC expansion – e27

StashAway, a robo-advisor for both retail and accredited investors, has completed a US$12 million Series B funding round led by Eight Roads Ventures, the proprietary investment arm of Fidelity International.

Existing investor Asia Capital & Advisors also participated in the funding round.

The startup plans to use the new funding to support product development for its clients in Singapore and Malaysia as well as to support market expansion throughout Asia Pacific.

Image Credit: Tokopedia

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A structured approach to finding the next big thing

The best ideas come from something you noticed that really sucks and you stop and think “why is the world this way? Could it be different?” then set out to validate the idea

It’s funny and annoying. There is a tonne of super capable people who simply can’t find a great idea for a startup. There are also a lot of incapable people with ostensibly great ideas!

I get asked by really awesome people all the time ‘how do I find an idea for my startup!?’ And do you know what, I don’t really have a great answer. It’s just really fricking hard if you are not thinking the right way, and looking for insights in the wrong places.

The best ideas come from something you noticed that really sucks and you stop and think ‘why is the world this way? Could it be different?’ then set out to validate the idea.

By the way, if you are wondering how to validate an idea, check out this monster blog on validating startup ideas.

Fundamentally great ideas come from two insights:

  • Behavioural. The way people do things is either inefficient or a better solution doesn’t exist so they are hacking it
  • Technical. Tech changes and you come up with a way to digitalise it or say the move to the ‘cloud’ and you see that trend coming. Blockchain, whatever, sure.

Business founders are more likely to see the former, and techies the later. Ideally, you have both, which requires great timing (A really key factor!).

So, I’m going to mind vomit some ideas to think about on this topic. Sorry, there is no perfect silver bullet here, but it will save you some time if you are stuck in this quandary.

Founder/market fit

The notion of ‘founder/market fit’ is important, so start here.

What are you actually really good at? What do you like? Where do you have a huge network for sales or hiring? Are you from a certain industry?

The goal here is to figure out what you shouldn’t do and what you might do. Removing options helps you focus and serves to kill certain ideas you might have (which saves time in validation).

If you don’t know enterprise, then you prob don’t want to do that. Figure out what kind of model you actually want to do and can be good at (+ ideally have network) then you know what pool you are fishing in. You can kill whole sectors like fashion etc and focus on specific areas. So figure out what you don’t want to do first to aid in better idea triage.

So, for example, do you want to do:

  • Enterprise
  • SME
  • Consumer

You probably will be drawn to one. That’s fab. Go with that.

Next, what sector:

  • Infrastructure
  • Direct to consumer
  • Fintech
  • Adtech
  • etc..

Maybe you are open to just one, maybe 5, but list them. Focus on ideas in those spaces.

Also read: From validation to profitability, here are 5 tips for launching a saleable product

Rocket style copy

Copying ideas is really a viable option. It does not guarantee success, though. Often, you copy most of the business model, BUT you have to then innovate in the execution, depending on where you transfer the idea to. This really is important especially in Asia, Africa and LATAM where executing is simply harder for so many reasons.

The process is as follows:

  • Read Tech Crunch about companies they write about
  • Subscribe to StrictlyVC etc and look at all the companies funded. This is wildly more effective than reading TC as you see what is working on that basis of VCs funding the ideas. You probably want to stick to series-A and maybe B. Seed doesn’t get covered much though, which is both good and bad
  • Then check them out on Crunchbase, etc., and triage. Then do startup business model validation, until you get something that makes sense.

One opportunity in my head, which I haven’t really analysed, is copying proven models in 2nd rate countries like Eastern Europe. So a bit of a Rocket job. Obviously, you don’t do it Rocket style, but the same principals apply. The benefit is you actually can take an analytical approach. List cool models then analyse if there are the op and market size for it through local execution and marketing. If you are an operator, this might work for you… If you don’t know how to scale companies already, maybe less so.

Old industry

I’ve been talking to some people and they have been creating solutions for old industries like cement! Those industries don’t know what a push notification is (no joke). One corporate thought the fact you could use IP to know what country customers were in with live chat was revolutionary … That really is opportunity for disruption.

You could pick some large, old industries and talk to people at the right level. You can find out what sucks. One regional CMO at an insurer told me they would love a sales support tool to help 50k agents to sell more and different products in China. They all sell the same RMB product as they know it. He also was aware that ‘face saving’ was really important. There you go — I talked to someone and he told me a problem.

I think this is a genuine goldmine for ideation. The downside is that you need to have enough connections, or the ability to get meeting with people to figure out what their issues are. It is easier for some and it will be impossible for others (basically, young people).

One tip is to do some homework before you meet them. They will take you more seriously and open up if you have some ‘good chat’ and can engage them, and maybe share interesting insights so they get engaged in the conversation. This is why I mean it will probably be harder for younger founders who don’t have as much experience.

Also read: Is the unbanked sector a real problem, or just a bubble created by fintechs?

Issue is insight

You make big money often by solving something someone hasn’t solved yet, and that’s because no one has had the insight. You can’t get insights from Google, you have to talk to people that have the problem. People who have problems don’t post them on Medium. Do you know what, they may only grumble about things and not realise that there is in fact an opportunity in the first place!

In order to get the insights, you have to have access to those that have the insights. It’s insight by proxy. You are an agent of change, and your audience is an agent of the status quo. If might take a few conversations to really get to the crux of issues. But I can tell you, I’ve talked to people in business operations at major banks and man, if you get them a few pints they’ll chat your fricking ear off with opportunities (read things that stress them out). They just need to like you enough to start sharing.

The only real structured approach would be to pick an industry and start to talk to enough people to glean an insight and think ‘hm, why is it done that way?’ So following on from ‘old industry,’ go fishing there and ask ‘why?’

Business model analysis

Every time you have an idea you need to run an analysis to figure out pricing, margins, market size, execution difficulty, capital intensity, competition, etc.

Competition is the first thing to check. I spent a night digging into marketing automation ops for SMEs with my housemate last week, only to call his mum and she said ‘um, doesn’t Sage do that?’ We just started brainstorming without checking the landscape. This isn’t to say there isn’t an op. I just haven’t figured out the value prop yet (aka put in the time). But I can … if I put in the time.

I have found the more I dig into a sector the more I am able to get my own insights and identify opportunities. But it’s a LOOOOT of work! I mean reading everything on the internet and being sick of it, till you finally internalise everything and suddenly gain mastery. Then the dots connect and you see the matrix.

When I wrote the ESOP training course and the ESOP model, I literally read every single article on the internet. I’m not even joking. I got so sick of the topic, but at the end, I started being able to invent new concepts I thought were missing, it was a feeling of flow. The same has happened with my work in virality and cap tables.

Man … I was so sick of reading the same crap, but only when I got really sick of it, did I see the matrix.

So if you are not going to glean insights from experts, you need to put in the work. And trust me, this level of commitment isn’t for everyone.

Also read: How do you size employee ownership of your startup? This is your comprehensive guide to ESOPs

Get pissed off more

Every time you get annoyed by something. Stop.

Question ‘why do I feel this way and is that an opportunity?’

Run a quick analysis and decide if it’s worth checking out the competitive landscape. Then figure out the high-level numbers.

Scratching your own itch is a great place to start.

Honestly, I get pissed off by pretty much everything. I have this weird OCD for lack of logic, that if I see, for example, people not walking in straight lines on the street optimally, it gnircks me. I used to resent being annoyed all the time by everything, then I thought about this ‘weakness’ and thought ‘how can I turn it into a strength?’

So now I have trained myself to turn ‘annoyance’ into a trigger for ‘what is the implication for the way I am feeling? Is there an opportunity?’

Ok, I know that is a little weird 😉 But Alice told me all the best people are.

I’ll do this at some point, but I hate how hard it is to manage my network well. I personally need a better personal CRM. It has annoyed me for years, so it’s a problem I have and feel others have. I want to solve that. But I’m aware my network management could be better … if there was only a solution.

Talk to strangers

There are so many smart people around if you are looking for them. If you talk to enough you’ll be overcome with potential ideas. You just need to be in the right place.

When I talk to devs, it’s funny. They complain it’s hard to find a business co-founder. How often do you hear business people complain they need a techy 😉.

You are only going to meet PLU (people like us) if you talk to PLU.

If you are a business founder and looking for a CTO, you don’t find them at startup events. You only find business founders (extroverts). If you want to find the techies you try Haskell forums on Reddit, Python MeetUps etc. If you are a techy, just throw a rock at a startup drinks and you’ll hit a business founder. LOL.

There are people with ideas already, you just need to find them. But you have to look in different ponds than you probably fish in.

Get out of your comfort zone. Go to random ass, niche events you would never thing of attending. Hell, I don’t know, knitting mothers of London. You never know …

Also read: Meet the first batch of epic speakers who will be coaching and mentoring the next generation of Founders at e27 Academy

Apply a cool business model to something else

In this blog I talk about the fact any successful business model is a combination of a business model and strategy for a new industry/problem. The business models have all been pretty much invented, it’s a matter of combination to the industry niche you have identified.

I was in Home House with another ex-Rocket MD who works for a huge PE firm now, and we were talking about Auto1. It’s just so smart (if you know the details). He said ‘I spend time figuring out what industry I could apply the same idea to.

So you can pick a business model and work methodically through industries and see if that could work. Then you pick the strategy. No, we haven’t figured out something yet.

Tim Draper said to me at the first Web Summit (like 30 people) years ago regarding ideas ‘you can pick a business model like Uber and combine it with something totally unrelated like carrots. Would uber for carrots work?

It wasn’t Uber but you get the point (I forget what company he randomly picked). But the principal is you can combine very random things together and you might find a needle in a haystack that way. I just think that’s ineffectual.

Start and fail forward

The last thing I want to say is that the startup landscape is not just a graveyard, but a Sand Hill dream. There is a tonne of companies that ‘just started,’ built shit and accidentally saw an opportunity. I kid you not. I wrote a 8,000 word blog on the topic last weekend on just this topic. 15 startup pivots to fame.

Let me just give you one … Slack!

Yeah, the fastest growing company of all time. They started as a video game, built on top of ICQ and realised after shutting down that other startups might like the tool too, as they would never do another game without it. Yeah, so that was the idea for Slack.

I think smart people, like really smart people, can be the worst founders. They know too much and think their time is too valuable to work on anything other than the next biggest thing. Dumber people with less to lose, just do as they don’t have an option. So if you are really smart, I’m talking to you! Do less than you think you are worthy of, you may fail initially, but the act of doing something might help you find that big thing as you become and industry expert and world class operator.

Also read: You do not need to choose a methodology to innovate

Conclusion

That’s a few ideas. But generally getting a good, viable model is fricking hard!

Sometimes you just need to pick a vague problem and start and fail forward. Once you really focus on a problem you will start to get to the truth, or learn a way not to build a lightbulb.

P.S. Don’t forget that passion is overrated! Startup is all about making a better mousetrap. There’s a blog on that topic.

—-

This article was first published on e27 on November 5, 2018.

This article was originally published on alexanderjarvis.com.

e27 publishes relevant guest contributions from the community. Share your honest opinions and expert knowledge by submitting your content here.

Photo: Unsplash

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Coworking space: why it’s the most startup thing ever

Advantages of being in a coworking space for your startup

I happened to have a conversation with a friend yesterday. We were talking about startups and freelancing life. Out of nowhere, he asked me, “What’s the most startup thing ever?”

I thought of a few answers. Clichés like “The Social Network is the best movie”, “Elon Musk is God”, etc. But, nothing tops the answer I gave him.

I told him, “The most startup thing ever is a coworking space.”

Coworking space, while not a startup cliché, is a fact of most freelancers and (tech) startups. And there are a few reasons behind it.

1. Low cost

Money matters. 

Also Read:Standing vs. sitting desks: the ongoing debate on best company practices

Not every startup is a unicorn business that gets millions in funding. In fact, that’s a rarity. In the real world, some bootstrap; some get little capital; some wait for their brand to get noticed. 

There can be a thousand such possibilities to not rent/buy a commercial space and build everything ground up. In such cases, coworking space is a low-cost option.

2. Value for money

Coworking spaces, despite being low-cost, are a super-value deal.

Coworking spaces have hot desks for individuals to dedicated offices for an enthusiastic business team. Facilities like stationery, printers, pantry/cafes, parking spaces, high-speed internet,  meeting rooms, and many such essential amenities come with the package.

Value for money deal, indeed!

3. Environment

A startup is like a baby. It takes the right environment to grow. And coworking spaces provide that.

Most of the coworking spaces are filled with like-minded people, may it be startup founders or freelancers.

Jim Rohn said it best: “You are the average of the five people you spend the most time with.”

In coworking spaces, people from different professions help each other, adds a new perspective, motivates and inspires, and do everything in their power to support your goal. You do the same too, of course.

Overall, it’s a bonding — a mutual push — that the surrounding of a coworking space provides.

Also Read: The benefits of coworking based on business size

4. Opportunities

One of the popular sayings in any business is, “Your network is your net worth”.

Meaning, to improve your net worth, you must grow your network.

And coworking spaces provide that opportunity. 

You can compare a coworking space with a community. You get to meet new people every single day.

Moreover, many networking events get organized for coworking space people, which can add up more opportunities for your startup.

5. Others

There are several additional advantages, as well.

Minor things such as no distractions or temptation, a physical business address, etc. also add up in making “Coworking space” the most startup thing ever.

Wrap up

Though there are several startup clichés, coworking space is the most startup thing ever, according to me.

What is the most startup thing, in your opinion? Let me know in the comments below.

Editor’s note: e27 publishes relevant guest contributions from the community. Share your honest opinions and expert knowledge by submitting your content here.

Join our e27 Telegram group here, or our e27 contributor Facebook page here.

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Top 5 skills needed to carve a niche in big data

Here are some of the top skills needed to become a big data professional

The IT sector just cannot stop talking about the marvellous branch of science that Big Data has become today. Data is everywhere we look. In simpler terms, there isn’t any shortage of data around us.

In present times, the world is producing more than 2.5 quintillion bytes of data daily.

Organisations are occupied in finding ways to receive the most significant return of investment over the facts and figures extracted out of data.

There is a deep requirement for people who can help businesses flourish in this data-driven world by drawing out meaningful insights out of puzzling data sets.

But wistfully, there is a shortage in the supply of Big Data Professionals in the job market.

Also Read:The big data balance: a man-plus-machine approach to hiring

This is an indication that the market is hot for any and everyone with big data skills.

On that account, employers are ready to pay almost US$150k per annum to competent big data white-collars holding pertinent big data certifications.

Ways to Earn a Big Data Job

Though, the big data space is wide open for people to enter, attaining a job in this area is still no cakewalk.

Since, there is a broad array of skills that employers want big data employees to possess and in the absence of those skills, the goal of becoming a big data expert seems far-fetched.

Without taking too much of your time, here are five skills that are critical for a big data professional –

1. Learn SQL

There is a list of things that you must have in your huge bag of skills and SQL has to be on the top if you want to enter the big data zone swiftly.

Structured Query Language is a popular language that enables you to get handy over your organisation’s database technology. It shall help you attain expertise in Big data technologies like Hadoop Scala & NoSQL.

2.Attain the art of mining data and solving problems

Corporations have large pools of data that you will be expected to take insights out of once you begin to work in this area of work.

So, it is advisable to obtain prowess in data mining technologies like KNIME and Mahout.

Also Read: How big data is impacting the legal world

Fortunately, there is a large bunch of Big Data Certifications in the market that will help you do so.

3.Gain knowledge of apache hadoop and apache spark

If you ask employers what they look for in big data professionals. Knowing how to use Apache Hadoop will be on the top of their heads since it is a helpful skill in resolving computing issue and assisting networking.

The Hadoop components that will make your job easier are Hive, HBase, Pig, MapReduce, and so on.

You can pursue a relevant Big Data Hadoop Certification program to become an expert in this dominion.

4. Be well-versed with data visualisation and quantitative analysis

These are the interwoven skills you must get your hand on.

If you talk about quantitative analysis, it is a technique that can help you get a grip over statistical tools. This can be critical in finding your place in the big data domain.

Also Read:5 impacts of big data in your personal life

In a nutshell, owning profound knowledge in statistics is considered to be a substantial factor that can shape your big data career.

5.Become an efficient coder

Assessing a data pool can be carried out through readymade tools in the markets. However, these tools cannot help you with finding solutions to every kind of issue in big data analysis.

Gathering knowledge in programming languages, such as Python, Scala, Java, R will enable you to evaluate big data problems and boost your career.

Editor’s note: e27 publishes relevant guest contributions from the community. Share your honest opinions and expert knowledge by submitting your content here.

Join our e27 Telegram group here, or our e27 contributor Facebook page here.

Image Credit: Campaign Creators

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How do I create a memorable promotional brand or product video?

It’s all about storytelling and creating a gripping narrative

product

(Editor’s note: Here is an article from our archives which we think is still relevant)

What you will learn:

  •   The basic structure of a decent advertisement
  •   How to use “mise en scène” to convey different sets of reality
  •   The basic rules of decent lighting
  •   How to distribute the final product

That actress who played Wonder Woman journeys through a fantasy landscape and takes the occasional photo with a smartphone.

This is probably what most viewers will take away from Huawei‘s P20 commercial. As a consumer, the commercial tells me nothing about the phone; its technical specifications are not mentioned and it doesn’t feature a real photo taken from its camera. And Gal Gadot isn’t going to take me on a guided tour of her dreamscape, either.

Nevertheless, Huawei’s commercial is slick and well-produced; the fact that it features Hollywood-quality CGI effects and the lead actress of a blockbuster superhero film significantly boosts its brand awareness. This gives it a sort of shine that makes you feel that the company is playing in the big league — regardless of whether there have been any reviews of the advertised product.

This is the beauty — and the paradoxical nature — of advertising, of a well-crafted promotional product video. Many top consumer brands like Nike and Tag Heuer seem to buy into the belief that the less of their product they show, the more likely they will attract buyers — at least, on first glance.

But that’s not really so simple, is it? Such projects — especially ones that run in the millions of dollars — takes weeks and months to plan and shoot.

So let’s break it down into the elements that make a quality promotional product video.

Crafting the narrative, building the characters

Not all advertisements are going to look the same as the Huawei P20 commercial. Some may show even less of the product while others may attempt to win you over with seemingly impressive technical specifications. There are a thousand-and-one ways of working it.

The best advertisements are the ones that leave the deepest impressions in your mind. And it could be a positive or negative impression. Maybe it’s a video with a really cringy jingle and acting worthy of a Razzie award, or maybe one that stirs up deep empathy or triggers a visceral response.

Either way, they elicit a sharp emotional response from the viewer that sticks in their mind (as they say there is no such thing as bad publicity)

Let’s zoom out and look at what makes a good narrative for a film or a TV show. On a very basic level, you get the protagonist and he or she has embarked on a quest. Along the way, they meet obstacles and tests and maybe they experience a crisis of faith, and finally, something compels them to fulfill their journey, to defeat whatever or whoever is in their way — usually a villain — and claim their victory.

This is, in a nutshell, is the essence of the classic mythic structure as theorised by the American Professor of Literature Joseph Campbell, in his classic book “The Hero with a Thousand Faces”. But is it possible to cram this set of tropes into a short 1 minute or 30 seconds video?

Perhaps we can take Apple’s iconic Super bowl commercial in 1984 as an example and see if we can apply Campbell’s theory.

In the video, we see a mass of identical-looking people watching what appears to be a propaganda broadcast. The presenter the screen is urging them to march to the beat of a “single ideology” and rally against an unseen enemy.

The audience is dressed in grey overalls and they carry a blank expression on their faces. This whole scenario is obviously a direct reference to George Orwell’s dystopian novel Nineteen Eighty-Four, which is about the perils of an authoritarian state.

In the midst of this, a woman wearing orange-coloured shorts and singlet is carrying a hammer and is seen running from heavily-armed guards. She yells and swings the hammer into the screen, disrupting the broadcast and breaking the trance it had over the audience, who respond in wide-eyed shock.

Also Read: Key challenges and opportunities in Malaysia’s e-commerce scene

Then a text crawls up announcing Apple’s plans to introduce a new “Macintosh” computer, boldly promising that because of them, the year 1984 would not turn out to be Orwellian.

It’s a short 1-minute clip. but there are some elements from Campbell’s theory that can be extracted from it. First, it has a protagonist — the heroine, who, with her bright clothing, is dressed to stand out from the rest of the characters. Then, there’s the obstacle — the armed guards.

Finally, at the end, we find out her motive — her quest — she wants to the shatter the spell the presenter has over the audience, whose indistinguishable appearances are designed to make them look like minions (not those annoying yellow creatures from Despicable Me); she accomplishes this by bringing down the villain — the Big Brother-esque figure.

The message of the commercial is very clear: Apple is appealing to the viewer to stand out from the crowd, to walk away from the all-seeing authority; to be a distinct and independent individual, free to express their thoughts.

The commercial paints Apple as this cool- kid-on-the-block, but its development was far from plain sailing. Steve Jobs clashed with the board of directors on the concept.

Ultimately, Jobs managed to get it aired, and, as history showed, Jobs’ intuition proved right; Apple has had made plenty of amazing TV advertisements since then but this 1984 commercial still stands as its most groundbreaking piece.

The perplexing thing about it is, Apple only mentions Macintosh once. Not once does it say why Macintosh is supposed to be this earth-shattering piece of tech that will supposedly change the world.

No technical details are mentioned, there isn’t even an image of the computer. Oh, and Jobs obviously put a lot of faith in American audiences knowing the context of “1984”. You can understand why it was a big risk to take.

The technique

Apple’s 1984 commercial was directed by British film director Ridley Scott, who had then directed two would-be classic Sci-fi films: Alien and Blade Runner (which was probably why he was picked for the job). To really dissect his cinematography technique would take an entire 1-hour lecture, but there are some quick pointers to extract from the video.

First, contrast. With only seconds of screen time, the audience needs to identify the protagonist very quickly, they need to know who they should be rooting for.

Scott did this by having the heroine dressed in bright athletic clothes, which stands in stark contrast from the guards’ full body armour and the minions’ dreary uniform overalls. It also helped that she had a head full of blonde orange hair.

Against the backdrop of the drab industrial interiors, she also clearly stands out. Scott is very careful in crafting in what is known as the “mise en scène”, which in French means “putting into the scene”.

According to David Bordwell and Kristin Thompson’s book, Film Art: An introduction 8th edition), mise en scène is the staging of several elements to create a representation of reality. These include: “the settings, lighting, costume and the behaviour of figures.”

Directors can use mise en scène to convey different sets of reality. In Scott’s 1984 commercial, it was to convey a claustrophobic, fascist future. Let’s examine the video again.

Much of the video is shot using low-key lighting. Its tight corridors or halls are dimly lit, and the minions are cast in heavy shadows — this is to accentuate the bleakness of the setting. The heroine is, however, cast in vivid light, so we can clearly register the fiery passion on her face when she swings her hammer into the screen.

Unshackle those chains!!

Take a look at the performance of the characters as well. The minions walk in slow, shuffling motions, their eyes expressing neither pleasure nor pain; in contrast, the heroine lets loose an unadulterated yell.

When it comes to positioning the camera, Scott is also careful to frame the heroine at the centre of the shot as she runs down the hall. When she hurls the hammer at the end, he frames her at a low angle to make her look powerful.

Editing plays a strong role, too. We see shots of the heroine running intercut with the minions watching the presenter drone on. Once again, this emphasizes the contrast between her and the minions. All these elements, and the buildup towards it that makes the scene all the more impactful.

There are some basic rules of good lighting to take note — and this can be applied for a simple product shoot as well — and that is the classic three-point lighting. Basically, you want to have a backlight, which lights the subject from behind; the fill light, which is positioned at the side near the camera; and the key light to illuminate the front part of the subject.

Also Read: So far yet so close: How to successfully manage a dispersed team

You can position the three lights however you see fit, but in general, these all you need to create good lighting (of course, the colour and the intensity of the lights play a big factor as well). Check out Rembrandt lighting techniques too if you want to understand how to light your characters as if they come from a painting.

For more conventional product shoots that focus heavily on the product itself, it helps to have high-key lighting because it coats the object with an even layer of soft, glowing light, making it pleasing to the eye. Especially important if you want to show off every part of the product.

Not that the opposite, low-key illumination, is less desirable, though. Low-key lighting with its emphasis on sharp contrasts between dark and light regions can make the object look more “mysterious”. Sometimes, it’s nice to tease the audience a little.

Equipment

Scott probably rented out high-end Hollywood-grade film cameras that cost in the high range of seven figures to shoot the Apple commercial. But it doesn’t mean you have to break the bank and take out a mortgage on your house to create a great product commercial! Good filmmaking is all about creative thinking.

Many consumer range cameras are perfectly suited for the job. A digital single-lens reflex camera (DSLR) can go for as low as US$400 (or maybe even cheaper if you try the second-hand market) and they are all capable of shooting in at least 720p high definition.

Don’t have a few grand to buy these lighting kits? Check out the IKEA store or even DIY one using unused bulbs you have in storage.

Don’t have a tripod head and slider or a dolly to do one of these tracking shots? See if you can find an abandoned shopping cart lying around and strap your camera onto it. Otherwise, once again, head down to a DIY shop and purchase some wheels and other parts and MacGyver yourself a similar piece of equipment on the cheap. The possibilities are endless.

Awesome looking videos can even be shot on a smartphone; check out this one shot on an iPhone 8 Plus, for example. It’s pretty wild how far phone cameras have evolved! (note: this article is no way sponsored by Apple. Personally, I use an Android-powered smartphone).

Optimising for web and mobile

A great product video might earn you a place at the Cannes Lions, but it’s not really of much use if no one but a bunch of industry critics view it. Ultimately, you want people to watch your video so they would remember their product and hopefully buy them.

First, think about the channels of distribution. Will you be showing it at a cinema or for the web and mobile?

If it’s for the big screen, I guess you can make it as long as you want (within reasonable length) since audiences have no choice but to watch it anyway. But if you are optimising it for online platforms, then it’s a different ball game altogether.

According to HubSpot, videos that attracted the most engagement on YouTube were on average two minutes long; on Facebook, it was a minute; while those on Instagram ran for just 25 seconds. With the web being a gargantuan clutter of information, it’s easy to see why viewers would have an attention span of a goldfish, there are just too many distractions.

But before you go on taking HubSpot’s statistics as gospel, keep in mind HubSpot did not specify whether they were sampling just video advertisements or what industry these ads fell under.

Also Read: What you need to know about building a freemium game

A finding last year by marketing analytics company Nanigans was more specific. It discovered that “for e-commerce advertisers, the 16- to 20-second length boasted the best conversion rate, but longer video ads weren’t far behind”.

Additionally, according to HubSpot findings, viewers who watched more than three seconds of the video were more likely to finish it, so that’s another important metric to note.

The best way to work out the optimal length for your video to do plenty of A/B testing and evaluate your own findings. It might also be useful to conduct small focus groups to figure out what parts of the videos worked and what parts didn’t.

Beyond that you might want to encode the video in a format that is friendly for mobile viewing, considering they outnumber desktop web users. According to video content company Clipchamp, “small file size trumps resolution, bit rate and visible quality to a certain extent.

In other words, you don’t want to have the viewer wait for your video to buffer. There is a more pertinent problem in emerging markets where a sizeable number of consumers may not have access to reliable 4G networks.

Conclusion

While a great story and a well-produced video certainly bring prestige to a brand, in the era of web and viral videos, there is no clear playbook. Two videos might follow the same filming technique and narrative but one may be more successful than the other.

Why? It could be a wide range of factors, maybe their search engine optimization (SEO) was better, maybe the presenter in the video had a more calming voice. Maybe one has a lot of wit and swagger, like this Dollar Shave Club video.

Or perhaps, like the recent Nike advertisement narrated by Colin Kaepernick, it was able to tap into the zeitgeist of the times. There are a million and one factors to consider.

Heck, you may not even have to create a video yourself, look at this video of a mother wearing a Chewbecca mask, sometimes, it’s the consumers themselves who can best advertise your product.

Ultimately, you choose how you want to tell your brand or product’s story; you decide what narrative best encapsulates your company’s core vision. If you are earnest about and walk the talk (and by that time it may mean your product does what your company claims) consumers will take the leap of faith.

Image Credit by Jakob Owens on Unsplash

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How to work with the right technology to tackle organisation problems for your business

Tools and platforms that can help you build your brand, run campaigns, analyse data, and enhance user experience

Business owners constantly face new challenges, from fighting competition to maintaining productivity.

To grow your business against all the odds, you need to streamline your core processes, be organised along with being ready to adapt to new trends and challenges.

Successful businesses are already leveraging technology to automate processes, minimise costs, and reduce human errors. 

Let’s take a look at ways in which technology can help take your business to the next level.

Also Read: How to improve your startup management

Save on IT costs

Cloud-based technologies offer a variety of computing and storage services, which is why most savvy businesses are adapting to them quickly.

Switching to cloud solutions can help you save on your IT costs. That’s because the solution providers provide IT support and backups as a part of their services.

With cloud computing and storage services, you can:

  • Easily host, store, and share unlimited amounts of data online.
  • Access your data from anywhere in the world at any time.
  • Enjoy more flexibility and ease of use.
  • Collaborate on a single document in real-time.
  • Enhance security.

Switching to the cloud can help you speed up your business processes and fight the competition better.

Increase productivity

As a business owner, you want to get things done more quickly and with less effort, right?

The right productivity apps and software can help you improve project management, streamline tasks, increase transparency, and enhance communication.

The adoption of new technologies can help you improve the overall work efficiency of your team so that you can achieve your strategic goals.

Here are some of the most popular apps businesses use to stay productive:

  • Slack
  • Trello
  • Basecamp
  • Hootsuite/Buffer
  • Toggl

These productivity apps make it easier for you to manage various projects and tasks, set due dates, and add status tags.

You can keep all project/task communications and files in one place and collaborate with other team members to get things done fast.

With so many features, these tools can save you time on managing productivity so that you can stay productive.

You can speed up your day-to-day tasks and experience seamless communication among peers, regardless of their locations and time zones.

Streamline procurement process

For businesses, it is critical to build and maintain an efficient procurement management system.

You need to streamline purchases to achieve speed, accuracy, and efficiency.

This is to ensure that you pay the best price for all of the goods and/or services that you purchase.

It can also help you reduce order delays and mistakes and save time. You can choose the best vendors for your goods and services to minimise costs.

While it can be challenging to streamline the procure-to-pay process of your business manually, there are solutions like PurchaseControl that can help.

Also Read: Project management foresees revolutionary changes with AI

Such purchase control and procurement software can help you keep tabs on goods and supplies and forecast needs based on data. 

They can help you streamline your business operations effectively :

  • Inventory management
  • Requisition management
  • Purchase order management
  • Invoice processing
  • Reordering
  • Contract management
  • Supplier management
  • Spend management

Investing in the right automation software can help you increase the efficiency of your entire procurement process.

It can help you increase your margins, minimise losses, and lower operational costs. This will eventually help your business grow fast.

Discover strengths and weaknesses

If you want to grow your business, you need to understand what’s working well for your business and what isn’t. But how can you discover that?

Technology comes to your rescue here too.

There are numerous monitoring and analytics tools that can help you identify the strengths and weaknesses of your business. Not only this, but you can also track how your competitors are performing.

Some of the popular monitoring and analytics tools that businesses use include:

  • Google Analytics
  • SEMrush
  • Kissmetrics
  • Moz
  • Mention
  • MailChimp
  • SpyFu

The right social and web monitoring and analytics tools can bring you real-time data you need to formulate effective marketing strategies.

They can help you track website visits, see where your visitors coming from, monitor brand mentions and reviews, and more.

This data can help you make informed marketing and sales decisions for your business.

Also Read: Boosting the patient management process, one AI step at a time

It also enables you to keep track of your campaign performance and optimise your campaigns for better results.

You can generate higher ROI from your marketing campaigns, increase revenue, and grow your business faster.

Improve customer experience

Delivering excellent customer experience is necessary if you want to retain existing customers and acquire new ones. People might like your products, but a complicated sales process or poor experience can drive them away.

You need to effectively monitor and improve customer experience across all stages of their buying journey. Customer relationship management (CRM) systems can help you with it.

Technology has raised the performance bar when it comes to what consumers expect from brands.

Most consumers expect immediate responses, personalisation, and superior buying experiences when they interact with a brand.

CRMs can help you:

  • Identify and capitalise on sales and marketing opportunities.
  • Get quick access to customer data to learn more about them.
  • Keep in touch with customers using various marketing automation tools.
  • Personalise communications to meet their demands and requirements.
  • Create a consistent experience.
  • Analyse customer feedback.
  • Provide relevant information and attentive support.
  • Quickly respond to requests.

The right tools and platforms can help you better manage customer experiences using automation and analytics. You can make the most out of your CRM software to attract new customers and build customer loyalty.

Conclusion

Technology can help you improve your business in multiple ways.

With improved efficiency, you can attract, acquire, and retain more customers. This will help you drive more sales and revenue for your business.

Do you know any other ways technology can help a business grow fast? Please share them with the community!

Editor’s note: e27 publishes relevant guest contributions from the community. Share your honest opinions and expert knowledge by submitting your content here.

Join our e27 Telegram group here, or our e27 contributor Facebook page here.

Image Credit: Matthew Guay

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