The startup life is mostly about adapting, improvising and overcoming the obstacles

I am the co-founder of Outside, a community tasking app that makes it easier for people to help each other with their daily inconveniences.

Our team is made up of students and fresh graduates who are passionate about tech and the sharing economy. We have previously attempted several business ideas together and ultimately got back together to build Outside.

This is how we failed, and then realised it gave us what we needed to succeed.

The beginning

I met my co-founder and friend, Dion, back at a social entrepreneurship program in secondary school. After graduation, we decided to try starting up businesses together.

Within a few years, we attempted six different ideas, ranging from tech-enabled crowdsourcing, sustainability, gaming, to even contract jobs and events.

After testing out multiple concepts, we finally arrived at the idea of creating a platform that would make it easier for people to help each other. And thus, Outside was born.

Like most people who lack the ability to build an app themselves, we resorted to outsourcing. However, the experience was not the best.

The constant check-ins with the outsourced developers were very time consuming and the development process took three months longer than what was planned.

Worst of all, the app did not perform as expected.

The six months of designing and gathering feedback led to more functions, and a much bigger price tag. The constant unexpected delays and changes were slowly diminishing our savings.

Also Read: Exclusive: Sea Group gaming arm eyes future in live streaming

Soon, we realised that we had to raise more money or drop the app.

As 20 year-olds, this was the toughest decision that we had to make. We considered borrowing money and even tried to apply for bank loans (the banks obviously rejected).

Ultimately, with rising tensions and tighter finances, we had no choice but to let go of the app.

Levelling up

However, soon after, Dion and I felt that it was possible to pick up programming by ourselves to save the app.

The journey was not at all smooth.

While learning and building the app, we hit roadblocks such as learning a framework that couldn’t support the required functions and had difficulty seeking help. We failed to hit our targets and the release for the private beta was pushed back for nearly three whole months.

While rushing for the private beta release, we were constantly in the office till the last public commute. This routine of pushing ourselves only resulted in burning out and increased tensions within the team.

After realising the detrimental effects of our working style, we agreed on building a proper work schedule and system to better manage our work process. Then, with everything in place, we managed to launch our private beta in December 2018.

While we also initially intended for our public beta to launch in December, we received several crucial feedback and noted problems from our private beta testers. This led to us making the decision of doing a controlled scale test instead.

Doing so allowed us to focus on understanding our current testers and helped us in better-adding value to the app.

After fixing up issues and restructuring the app we successfully (and proudly) launched the public beta of Outside in February 2019.

At this point, we were very lucky and thankful that we were given the opportunity to both open our first booth and pitch for the finals at Unicon Arena 2019. We came in as the runner up within 48 hours of our launch too so yay!

The lessons learnt

1. Skills can be picked up
Don’t look at outsourcing as your only option to build the business, there is a huge existing pool of free resources to pick up the basics; Codecademy for programming and Google Digital Garage for digital marketing and many others as long as you try to search for it.

As always, Google and Youtube are your best friends. There are also countless of tutorial videos and guides available for app development and most things startup related.

I was actually able to attend all the Blitzscaling classes in Standford thanks to Greylock’s Youtube channel.

2. Set KPIs as a team
In order to make things move faster, I ended up setting strict deadlines for the team which only led to ineffectiveness and burnouts instead.

Try to understand the difficulties and make changes to the plans where necessary, allowing the team to suggest their own deliverables will make also help them feel more responsible for their work (Its good to read up on OKRs).

3. Less planning, more “Adapt. Improvise. Overcome”-ing
You’ve probably seen this in the context of a Bear Grylls meme but it’s true, the startup life is mostly about adapting, improvising and (hopefully) overcoming the obstacle as it comes.

There should be a limit on the “In the future/next time” talks and more focus on the “now”. You could be really excited about the future and lose sight of what needs to be done for you to get there.

It’s always good to give some future talk to boost the team morale, but make sure to stay in the present and don’t plan ahead if you are not done deciding on the next few actionable steps.

4. Don’t be afraid
Lastly, do NOT be afraid to reach out and ask for help.

When I was starting out, I was really reluctant to ask for help because I was afraid of them doubting my ability as a startup founder. Although it took me quite some time to get out of my comfort zone, I’ve learnt so much from getting people’s input and sharing of experience.

Also Read: Digital partnerships: When is agency experience an asset or a liability?

You should still research and read up on whatever you can before you ask for help. It’s wasteful to take up people’s time to explain things you can read about online when you can learn much more from their practical experiences.

What’s next

Although we have already launched our public beta, we are still very much at the start of our journey. We recently onboarded new members and are currently preparing for our demo day in mid-April.

We are also currently getting more beta testers so that we can collect more feedback to improve on the product. There are also several pretty interesting functions coming down the pipeline that we are very excited to share.

We hope everything works out for the best, and even then, to stay grounded, appreciate failure and never give up! All the best to all the startups out there.

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Outside is currently in Cohort 1 of The Start, a pre-accelerator program by StartupX and Temasek and Cohort 2 of Found8’s Elevate.SG. Keep an eye out for them here.

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

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In this conversation, the Warung Pintar CEO reveals how the company plans to revolutionise the supply chain of FMCG products

Get insights from Agung Bezharie Hadinegoro and more at Echelon Asia Summit 2019. Happening on May 23-24 at the Singapore Expo. Tickets are now available at US$10 each!

In the past one year, Indonesian new retail startup Warung Pintar has made several exciting milestones.

But for CEO and Co-Founder Agung Bezharie Hadinegoro, there are two most important milestones that they have achieved: The number of mom-and- pop shops or warung that they have managed to help (which has reached beyond 1,300 shops) and the significant increase of their monthly income (which has gone beyond 41 per cent with 22 per cent of them experiencing at least 10 per cent growth each month).

“[Through these milestones] we were able to validate that offline transactions are in dire need of ‘online touch’, especially seeing how much efficiency has been brought by the Warung Pintar platform. Plugging into our software turns out out to be really helpful for their business process,” he says in an interview with e27.

Launched in January 2018, Warung Pintar aims to help warungs –an essential part of the daily lives of Indonesians– embrace the digital era by enabling them to perform online transactions and digitising their bookkeeping, warehousing, distribution, and cash register process.

However, the company’s five-year vision goes beyond enabling cashless payments on warung. In addition to help these small businesses becoming more efficient, they also aim to help the FMCG industry generate and track data.

Hadinegoro explains how the FMCG industry has a “very big market” in Indonesia with almost 70 billion items moving in the supply chain.

Also Read: Warung Pintar acquires a platform that connects farmers with direct sellers

However, 70 per cent of distribution of these goods are still being done through traditional marketplaces or sellers. This has made it impossible for businesses to track its data, as well as measure inefficiencies and losses.

“We always talk about how to use Big Data, but the main problem here is how to generate the data first. There is very little data generated at the supply chain and retailers; you can never bring in efficiency with that as the data is neither big nor clean enough to know what is happening,” he elaborates.

“There are still many people who trade in the same way as 50 years ago. This is what we try to revolutionise. We might change the way we do things through disruption, but through a revolution, we aim to come up with something entirely new,” the CEO adds.

Getting them to stay

 

When asked about the challenges that the company faced in acquiring its users, Hadinegoro said that instead of acquiring users, the greatest challenges actually lie in maintaining them.

“You can ask all tech companies, their problem would be the same. You can get 100 merchants on board each month, but how many of them are actively using the platform?” he says.

“So the question is how you can make them stay … [User] acquisition is all about spending money but keeping them is all about how good your product is,” he continues.

Hadinegoro points out that Warung Pintar’s target audiences are not the usual early adopters of tech companies’ services. The problem is not that they are unwilling to do it; the problem is that the products are not designed for them.

Also Read: Grab partners with micro retail tech startup Warung Pintar to champion digital inclusion

“Smartphones may not be made for ojek drivers, but Go-Jek and Grab are made for them. So it’s all about building a human-centered design,” he concludes.

In addition to that, the company also puts emphasis on hiring quality talents for their product team.

Staying inspired

 

Hadinegoro is one of those startup founders who actually began his entrepreneurship journey by working in a venture capital firm.

Warung Pintar started out as a side project at East Ventures, but external investors then began to convey their interest in the project.

Hadinegoro’s involvement in the project was fueled by his passion in helping small- and medium-sized enterprises (SMEs). In his work, he claims to be inspired by the achievements that his grandmother has made.

A paediatrician and an academic, his grandmother works in developing vaccines and has advised the government in public health-related matters.

“She could have made a lot of money but her country needs her money more … I learned that infant mortality rate, from the time she began working as a doctor, has decreased dramatically, thanks to the hard work of her and her colleagues,” Hadinegoro says.

“In measuring the value of what we do, we need to go beyond using ‘happiness’ as a reason. Ironically, many tech blogs on Medium seem to focus on that. What we need isn’t happiness; what we need is usefulness,” he continues.

“Because you can be happy and useless at the same time. But when you’re useful, you will feel happy,” he closes.

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Image Credit: Warung Pintar

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From cosplay to pyrotechnics, Garena World 2019 really had it all

Over the weekend, the publicly-listed Sea Group hosted its annual Garena World event in Bangkok. For people relatively new to the eSports industry (I count myself in this group), it was an eye-opening experience.

With nearly 300,000 people in attendance, the scale was unlike anything in the tech space and the enthusiasm of the audience was palpable. Furthermore, because of who it attracted, it was fairly common to see people playing games on their phones while they were watching the professionals.

A core takeaway from the event was the undeniable importance of mobile phones as the most important channel for games. New games are clearly designed to be played on mobile first, and then other “consoles” are the secondary consideration.

“The trend is heavily on the mobile phone. It’s everything. We think, if you develop the game, it has to be mobile. If [gamers] have it on PC, they will have another on mobile,” said Nok Maneerut Anulomsombut. 

Also Read: Exclusive: Sea Group gaming arm eyes future in live streaming

Garena World 2019 was something to behold, so let’s have a look!

The scale

As mentioned above, the scale of the venue upon walking into BITEC was jaw-dropping. Thousands of people thronged a gigantic space and many of the games were watched by people willingly sitting on the floor.

The cosplay

While definitely not the majority, there were a decent amount of people who attended the event dressed in cosplay. They were not paid by Garena and only a few of them seemed have been representing individual companies. The rest appeared to be hardcore fans who just wanted to take the opportunity to show off their styles to a large amount of people.

The champions

Free Fire, the game developed by Garena, hosted its global championship during the event. It is a Battle Royale game that harkens to Fortnite or Apex Legends. The competition featured teams from as far away a Brazil and Colombia.

The winning team was EVOS Capital out of Indonesia.

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The company also is reportedly set to take over the Philippines operations of the online classifieds giant OLX Group

Carousell, the Singaporean P2P e-commerce site, has raised US$42 million from OLX Group, as first reported by Tech In Asia.

OLX Group is owned by Naspers, one of the world’s leading technology investment firms whose big win is being one of the first investors into a young Tencent.

Furthermore, DealStreetAsia is reporting that Carousell has acquired the the Philippines operations of OLX Group, presumably part of the deal.

If we add up the investments on e27 data, the new investment brings Carousell’s total funding to date to around US$170 million. Its most recent round was a US$85 million in May 2018 after a US$35 million deal in August 2016.

The investment makes OLX Group the third largest stakeholder in Carousell — now owning 11.5 per cent of the company. Rakuten (who just invested in Shopback) owns 29.6 per cent of the company and Sequoia India owns 15.1 percent.

Tech In Asia reported the story based on company filings, which they report value the company at US$365 million.

e27 has reached out to Carousell for comment and clarity about specifics of the deal.

Also Read: Exclusive: Sea Group gaming arm eyes future in live streaming

Carousell and Naspers have been dancing with each other for awhile now, with TechCrunch reporting plans of investment about 10 months ago. According to that article, the investment in Carousell is the core strategic move for Naspers in Southeast Asia. Naspers is based out of South Africa.

TechCrunch also reports that the deal was agreed upon awhile ago but was delayed because of Naspers’ IPO in Europe.

OLX Group is a bit of a throwback to the marketplace companies that first help build the startup ecosystem in this part of the world. The company is essentially a conglomerate of various marketplaces in emerging economies (it has operations in countries like Indonesia, Brazil and India). The company is headquartered in The Netherlands.

Also Read: ShopBack secures US$45M funding led by Rakuten, EV Growth

Assuming the DealStreetAsia report is true, an acquisition of the Philippines OLX operations is logical for Carousell. It would allow the company to scale quickly without having to search for unfamiliar properties in the country.

From an investment perspective, OLX is a natural fit for Carousell as it gives the Singapore startup a partnership with the world’s largest classified’s business.

Carousell operates in Australia, Hong Kong, Indonesia, Malaysia, Singapore and Taiwan.

 

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The Myanmar-based IT services provider said that the funding it receives is of a six-digit sum

The Myanmar-based IT services provider MM Digital shares that it has raised a six-digit dollar investment from Singapore-based Seed Myanmar Ventures Limited and investment holding company, Theta Capital Group, as reported by Deal Street Asia.

The funding will be focussed on growing its business. Founder and CEO Aung Pyae Phyo said: “MM Digital plans to use this funding to build the necessary operational infrastructure and recruit more talent.”

Established in 2017, MM Digital Solutions’ services include design, IT consultancy, iOS app, and web-app development. The company said that it builds both customised digital solutions and SaaS platforms for sectors such as consumer lending and hospital booking.

Also Read: Klook raises US$225 million in Series D funding led by Softbank Vision Fund

Before investing in MM Digital, Seed Myanmar’s portfolios include investment in delivery service platform, Marathon Myanmar Co Ltd., fitness passes provider Flexible Pass, freelancer platform Chate Sat, MM Tutors, search engine Bindez, and logistics startup Kargo.
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Real estate is one of the largest and most valuable asset classes in the Asia Pacific

According to JLL, a property brokerage and consultancy, the total value of investable global commercial real estate is estimated to reach US$65 trillion by the year 2020, with the Asia Pacific (APAC) accounting for over 30 per cent of it.

The value of APAC real estate is expected to grow strongly alongside increasing urbanisation across the region. However, despite being a key driver of economic value creation in APAC, the real estate industry is still relatively slow in terms of technology adoption.

This is in contrast to the current disruptive trends of technology seen in multiple industries in the region, including finance, fashion, food and transport.

The value chain in real estate is complex and exhibits a high amount of information asymmetry. The industry involves multiple participants, the organisation of disparate information and highly administrative tasks.

Technology is particularly good at resolving such complexities through better data aggregation, identification of critical tasks, and organisation of workflows and processes. The convergence of technology and real estate is called proptech.

There is a significant opportunity for proptech startups in APAC given the thriving real estate market. Investors, as well as entrepreneurs, need to recognise how proptech can bring significant value addition to the APAC real estate industry.

How will proptech startups add value to the real estate industry?

1. Enabling information transparency and transactions
One of the key issues with real estate is information asymmetry, which has resulted in the role of property agencies, brokers and valuation agents seeking large ‘economic rents’ and working very often via word of mouth and using offline channels.

As marketplaces improve and innovate to deliver enhanced information transparency, the buying-selling and leasing-tenancy of real estate will move towards an enhanced online model where entire real estate transactions can be completed online.

We see commercial platforms such as GorillaSpace, a flexi-space tech brokerage, changing the way commercial spaces are leased by allowing landlords to flexibly provide small workspaces on a short-term lease to long term spaces for full-fledged tenants, all enabled online.

Also Read: This Echelon Asia Summit 2019 tickets giveaway will make you feel nostalgic

Hyper agency models such as Propzy, a hybrid real estate brokerage in Vietnam, not only provides property sales listings but also value add services on property due diligence as part of the online platform’s enhanced offering.

These proptech businesses are leveraging technology to automate paper workflows, provide transparent information to customers and facilitate better customer experience when shopping for a property, be it for personal accommodation or commercial workspaces.

2. Driving operating performance of real estate
As asset owners look towards improving operating performance and financial returns of their properties, proptech players focused on energy and environmental solutions, tenancy engagement and building management are key to creating long-term value uplift of a property.

Companies such as BBP, an energy efficiency management company based in Singapore, provide large scale monitoring solutions with cloud-based remote management of energy usage to lower overall utility costs for commercial properties.

This creates significant cost savings for property owners, translating to a better bottom line and potential uplift in property valuation. Asset management tech players such as Yardi provide solutions around data presentation and business analytics, allowing portfolio owners to have an overview of their entire property portfolio performance.

3. Shortening processing timelines and improving efficiency
Proptech can help eliminate challenges in areas of brokerage, mortgage financing, labour organisation and property management.

By using technology to process information, run operational workflows and assign tasks, real estate companies would have enhanced operational efficiencies with a reduced amount of labour directed to administrative tasks. This will not only reduce costs but will help create better workforce flexibility.

For example, Property Flow, a Thailand-based real estate software startup, provides real estate developers and agents with toolkits on a SASS basis to equip these players to focus on sales outcomes.

RealEstateDoc, a Singapore-based asset management solutions provider for the retail sector, have cloud-based technology suites that reduce the amount of headcount required to asset and tenant manage casual retail spaces, automating payments and lease agreements.

How proptech in Asia differs from the rest of the world

As seen in the past in other industries like e-commerce, fintech and ride-hailing, there is a reason for the existence of Asia-centric models.

This will be no different for proptech players that may adopt from successful models already being built in the US and Europe and localize these models for local distribution.

Language, cultural business practices, level of technology adoption and specific government regulations drive the need for tailor-made adoption across APAC markets.

How investors can help boost the industry

Venture capitalist firms that have the real estate domain expertise are in a prime position to help Proptech startups scale their technology and business aggressively in the region. With an underdeveloped market and large potential upside, an investor can provide significant value in terms of expertise and funding to build up the proptech industry.

Also Read: How online data is transforming market research

We see a synergy between ourselves and real estate companies as we act as a filter to identify high potential startups. We invest and help grow these startups to an appropriate stage for distribution into large corporates.

And, being early in the cycle means we are in pole position to help develop the proptech ecosystem across Asia.

APAC is already a thriving market for real estate and continues to show a strong appetite for new technology advancements. The proptech industry is likely to be in the spotlight in the next year as more eyes turn towards the growing real estate market and its strong potential for growth.

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About Cento Ventures

Cento Ventures’ Proptech fund looks to invest in high potential startups across APAC to deliver products or solutions tailored for the APAC real estate sector. Cento Ventures takes a disciplined approach in selecting portfolio companies with a goal of developing regional winners. The investment team combines real estate domain expertise with regional VC experience to ensure a holistic approach to investment selection.

Cento Ventures is a Southeast Asian venture firm that focuses on identifying and making investments in growth markets based on data-driven reasoning and industry expertise from a multi-disciplinary team. With a pro-founder philosophy, we stay committed to helping our portfolio reach its true potential throughout the entire investment life cycle.

Visit us here.

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

 

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The company said it plans to use the funding to drive international expansion, among other plans

Women-targeted social content marketing company based in Singapore Clozette has announced that it receives US$10 million Series C funding from a public-private fund that belongs to Japan’s Ministry of Economy, Trade and Industry, Cool Japan Fund.

Cool Japan Fund provides risk capital for businesses that wants to integrate the “Cool Japan” concept into its business.

Clozette said that it will use the funding to scale the company’s proprietary data-driven content and analytics platform, drive international expansion starting with Thailand, and develop an interactive Cool Japan Ecosystem that brings Japanese culture to a new generation of consumers.

“We believe in our vision of authentic content marketing. Content is king – consumers today are blocking ads but consuming content at unprecedented rates on their platform of choice. In the same breath, they demand more authenticity, interactivity, and mobility in their experience. Marketers must embrace this pivotal shift in media consumption behaviours in order to keep up with generational shifts in perception,” said Roger Yuen, CEO of Clozette.

Clozette was founded in 2010 and at that time is said to be the pioneer of storytelling combined with editorial authority as a category on its own. It has a curated user-generated content that is managed by a team of over 90 employees operating in Southeast Asia and Japan.

Also Read: MM Digital raises funding from Singapore-based Seed Myanmar

Clozette’s brand content incorporates original work created by more than 3,500 creators and talents boasting a collective social reach that the company said has exceeded 600 million.

In the past, the company has worked with the likes of Estee Lauder, Shiseido, Zalora, Charles & Keith, Procter & Gamble, Unilever, Johnson & Johnson, and Omnicom Media Group.

The company highlighted that its growth in the past year was attributed to its subsidiary in Indonesia, that managed to drive 200 per cent growth making the Series C funding timely.

“The DNA of the Clozette dovetails with Cool Japan Fund’s mission to promote Japanese fashion, beauty, food, travel, and lifestyle to consumers around the globe. Part of the investment will go towards the creation of a multi-lingual Cool Japan Ecosystem that enables the discovery of actionable and shoppable “cool” content about Japan, leveraging the company’s unique storytelling capabilities and network of talents to attract a new generation of fans of Japanese culture in the region and beyond,” said Yuji Kato, COO and CIO of Cool Japan Fund.

Also Read: Klook raises US$225 million in Series D funding led by Softbank Vision Fund

The interactive Cool Japan Ecosystem by Clozette is scheduled to launch in June 2019.
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One company experienced a 289 per cent share price spike following a blockchain rebrand. What gives?

Lately, it is getting harder for a large corporation to make any move in the media without the involvement of  blockchain in the headline.

Russian social media giant VKontakte wants to create its own coin using the blockchain. Outside of the tech community, world-class bank JP Morgan had just created theirs. Long Island Iced Tea Corp, a beverage company specialising in long island tea (as the name suggested), had even rebranded itself to Long Blockchain Corp.

Interestingly, the move did bring a positive impact to the company as it experienced a 289 per cent hike in share prices shortly following its eccentric rebrand in 2017.

Everyone wants a piece of blockchain. However, there are many questions remain on the top of the public’s mind, with the most urgent one being: What exactly is a blockchain?

To answer the question, check out the following Blockchain Development Breakdown infographic by Follow My Vote, which has incorporated blockchain onto its online voting platform.

Also Read: HWGG Capital, VCPI to allow overseas Filipinos to transfer money using blockchain wallet

To sum it up, blockchain is the equivalent of a database storing unchanging –immutable– records of transactions. According to McKinsey, various consensus protocols are used to validate new records of information. Shared among participants, the digital ledger can record monetary exchanges, movement of shares, property transfer, fractional transfers of art pieces, and many more.

Also Read: In Photos: The launch of blockchain focussed Tribe Accelerator

Why is it termed as ‘blockchain’?

In terms of structure, data is encrypted in blocks of computer code and these blocks are strung together through cryptography. Hence, the name ‘blockchain’.

So what can blockchain do?

Imagine if corporations could issue their own bonds on the blockchain to gain accessibility to fundraising in a world-wide market.

Imagine if exchanges and clearing houses could reach near-instantaneous clearances and settlements.

Imagine if real estate ownership were more distinguishable and clearly indicated on blockchain records to avoid ownership disputes.

With the pre-written logic coded onto the blockchain, smart contracts are programmable to perform yield calculations and execute dividend returns upon a pre-agreed duration, automate clearances and settlements, as well as store records for asset ownership.

Business blockchain can diminish costs and time out of numerous processes. Rather than there being an isolated, single form of blockchain, the technology can be applied by a collective number of ways to meet commercial use cases.

Where does the effect of blockchain extend to?

Almost every industry requires data storage, followed by certain workflow execution. In the blockchain network, where each computer node holds a copy of the ledger, there is no single point of weakness in comparison to the sole point of centralisation in traditional networks. Security, an important concern for all enterprises, is provided when transactions are verified and signed with cryptography. Through the real-time visibility of transactions given to permitted participants, blockchain also supports transparency and accountability.

Simply put, blockchain’s unique features will accelerate its adoption in most industries. As a nascent technology, the options of implementation are limitless.

Also Read: The knowledge gap may be the biggest hindrance to blockchain adoption

Does anyone have a live implementation of this technology?

Initially contributed by IBM and hosted by Linux Foundation, Hyperledger Fabric had success with Walmart in traceability of the food system using blockchain, tracking more than 25 products from five different suppliers. With an open-sourced approach, its community of multi-stakeholders is committed to gather speed for its sweeping prowess towards industry-wide adoption.

Concurrently, Hashstacs holds a unique position to issue, trade, clear, settle, store and create a global marketplace for digital assets through blockchain. As a subsidiary of a regulated stock exchange (Gibraltar Stock Exchange), it has dealt with financial products and is familiar with the issues faced by the financial markets.

For this reason, Hashstacs’ proprietary Distributed Ledger Technology STACS is modeled as a public-permissioned hybrid which provides enterprise flexibility between privacy and universal marketplace access. To build a large-scale solution, STACS is also designed to interoperate with existing technical systems for industry success.

What’s next?

The value of blockchain solutions will be realised more significantly with growing networks of partnered financial institutions. Indeed, the ability to be integrated with existing technologies will be a prominent feature in gathering momentum towards blockchain’s widespread usage. Through inclusive collaboration, corporations such as IBM and Hashstacs are on a mission to shape the future of capital markets today.

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Image Credit: Emiliano Vittoriosi on Unsplash

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Let’s explore some of the trends and how these impact startups in the country and international/regional companies looking to build a home base in Southeast Asia

Going down to the practical aspects of starting and running a business can be one of the harshest realities for a startup. While a founder or team might have a marketable idea or viable product, things become complicated when there is already the need to move forward through things like registering the business, setting up an office, transacting with financial institutions, or even something as simple as applying for electric service for the office.

This is one reason why startups converge at preferred hubs. While a startup can be founded and run theoretically from anywhere, there are practical concerns that make it more ideal to start a business from places like San Francisco, Boston, Seattle, Singapore, Bangalore, and Tel Aviv. There are also more overarching concerns, like access to funding, community, and talent.

Startup hubs becoming competitive

The notion of being a preferred startup hub has been a point of competition, especially among emerging economies. In Southeast Asia, Malaysia is a rising contender, offering businesses the benefits of speedy processing, improved infrastructure, and increased accessibility.

In the recent Doing Business 2019 report by the World Bank (PDF), Malaysia is cited as having the second highest score in Southeast Asia in terms of ease of doing business. The report stresses how a “continuous and focused reform agenda keeps an economy competitive and vigilant.”

In the 15th spot, Malaysia entered into the top 20 this year for the first time, having maintained momentum in reforms like making it easy to start a business, deal with construction permits, get access to electricity, perform cross-border trade, enforce contract, and register property.

What makes a startup hub, anyway? Several factors contribute to a city or region becoming a startup hub. These can include access to tech talent, infrastructure, environment/pollution, access to local market, access to funding, the local startup ecosystem, competition, and employee attrition.

The size of funding, or the number of high-profile startups can perhaps be an indication of how a city or country has become a startup hub. In this regard, some factors like access to funding or talent depend on human-driven factors, such as whether angels or VCs have chosen to set-up shop in that particular city. In some cases, factors like infrastructure and environment can largely be influenced by local regulations and contributions by local stakeholders and regulatory bodies.

Malaysia as a rising star

In practical terms, here are some points that have helped boost Malaysia’s status not just for startups but also for entrepreneurs looking to establish small to medium businesses:

• Construction permits now only take 54 days to secure, compared to the 133 days average in the region;
• Cost of electricity is also very accessible, at 26 per cent of income per capita, compared to 625 per cent in the region on average;
• Improved electronic submission and processing for import and export documents;
• Online registration system for goods and services tax;
• Simplified registration of property;
• Reforms in resolution of insolvency.

Also read: e27 Report: Malaysia sees more startups and deals than Indonesia, but far less money

These are qualities that the Malaysia Digital Economic Corporation (MDEC) has helped to implement from its strategy for the country to become a standout nation in the global digital world. To highlight some of the important building blocks to achieve this, Norhizam Kadir, Vice President for Growth Ecosystem Development, MDEC, writes:

These building blocks, which are important drivers of a strong online ecosystem, are: high-quality infrastructure at affordable prices; tech talent development; increased cybersecurity vigilance; development of platforms and enablers such as Digital ID, open data and so on; and the legislation, policies and industry structures to support the growth of the digital economy.

Founder and CEO of Billplz, Nazroof Hakim agrees and further adds:

I would say Malaysia is the perfect launchpad to the ASEAN market especially because of its business-friendly environment. We have found hiring world-class software developers is easy and I would advise businesses to fast track their establishment by consulting with government departments and agencies such as MDEC as these are sources of various forms of support for market expansion.

MDEC has fostered digitalisation and transformative change across industries in the country. Government itself is active in nurturing Malaysia’s startup ecosystem through incentives that encourage VC activity. These include tax breaks, reduction in minimum investment requirements, as well as focus on enhancing talent through education, and more.

Malaysia, through the Malaysia Tech Entrepreneur Programme (MTEP) also supports both new and established entrepreneurs and investors from outside the country who seek to enter the ASEAN market through a one- or five-year stay in the country. MTEP won “best ecosystem initiative” in the recently concluded ASEAN Rice Bowl awards.

What this means for the startup ecosystem

In e27’s Southeast Asia Startup Ecosystem Report 2018, we cited how Malaysia – specifically Penang – has come to be known as the “Silicon Valley of the East” mostly due to its strong manufacturing and hardware background. This places Penang at an advantage in terms of competing in the hardware manufacturing and IoT space.

Also read: Malaysia’s game plan: Improving human lives through the power of tech

Ease of starting up a business does not only impact founders and entrepreneurs who seek to start, build, and scale in the region. This is also one important consideration that investors seek in a digital ecosystem, and Malaysia is rising up to the challenge of being a top startup hub not only in Southeast Asia, but also in terms of global reach.

Norhizam Kadir, Vice President, Ecosystem Development, MDEC, pointed out:

Getting the balance right between government intervention and industry collaboration to encourage innovation is a difficult challenge for all nations engaged in building their digital future. We are approaching a tipping point with our tech startup ecosystem, which is continuing to grow and is becoming increasingly vibrant, attracting entrepreneurs from more around the world. Our vision of establishing Malaysia as a tech startup hub with global appeal is a work in progress, of course, and much more needs to be done on our journey together.

To conclude, we can echo the sentiments of the World Bank’s Doing Business report: “Governments worldwide invest substantial effort in changing business regulatory frameworks to make doing business easier for entrepreneurs.” These changes, whether small or substantial, contribute greatly to improving the startup and investor ecosystem. In Southeast Asia, there is confidence in Malaysia’s trajectory toward being a big contributor to the region’s growth.

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Photo by mkjr_ on Unsplash

 

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FastGo has apologised for the incident that occurred in its Singapore office

FastGo, Vietnam-based new ride-hailing company, accidentally revealed the personal email addresses of 300 drivers right after it sent an email reminder to drivers, urging them to complete the drivers’ signup by submitting documents on last Monday, April 1.

In the email, FastGo Singapore put the email address on the “To” field, instead of the usual Blind Carbon Copy (“Bcc”) for confidentiality. All the email recipients then can see other email addresses.

Diep Nguyen, FastGo Singapore country manager said that the team is really sorry and hope that the company’s driver-partners will still continue supporting them in the future, as told to The Straits Time.

“It is an important lesson for us to learn about the issue, we promise no more mistakes will happen again as it’s affected about 300 drivers that signed up with us,” said Nguyen.

The matter was first made public when a copy of the e-mail uploaded on Facebook by netizen Stanley Raymond Oh, in which FastGo had requested nine sets of documents, including identity cards, driving licences, and bank statements. In the copy, email addresses of the recipients were partially censored.

Also Read: Malaysia’s central bank grants approval in principle to fintech startup MoneyMatch

This incident may result in a potential lawsuit over data breach under the Personal Data Protection Act, as Lionel Tan, a partner at law firm Rajah & Tann specialising in data protection laws pointed out.

“There are a lot of seemingly personal emails in the list, so it is a likely breach unless all recipients have consented that they don’t mind their email addresses being circulated,” Tan said.

The Personal Data Protection Commission is said to be looking into the matter to see whether the organisation has proper procedures in place and whether they had educated staff on how to properly handle data. Prior to this incident, SMRT-backed mobilityX also accidentally sent out a mass email revealing the personal addresses of its 500 users.

Meanwhile, financial penalties could be imposed.
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