SoftBank downgraded after WeWork’s US$9.5 billion rescue package- Bloomberg

A Jefferies analyst downgraded SoftBank Corp in its second Hold rating on Friday for engineering WeWork’s $9.5 billion rescue package according to Bloomberg report. Jefferies Group held a ‘buy’ recommendation on it since at least 2014, and moved it to ‘hold citing the increased risk of SoftBank “throwing good money after bad.”

Jefferies joins HSBC Holdings Plc in recommending that investors hold for now.

Once some of the brightest stars in the SoftBank’ portfolio, Uber and WeWork now number among its worst performers. SoftBank is planning to take a writedown to its Vision Fund of at least $5 billion to reflect a plunge in its value, according to people with knowledge of the matter.

Analysts are recommending investors to buy shares in Masayoshi Son’s company even as it faced billions of dollars in writedowns from the WeWork IPO and a sharp decline in shares of Uber Technologies Inc. But now Son’s decision to double down on WeWork has prompted a rare voice of dissent to emerge.

India’s telecom giant Airtel picks up 8.8% stake in tech startup Vahan Inc- Deal Street Asia

Bharti Airtel Ltd has acquired a minority stake of 8.82% in Bengaluru-based software development startup Vahan Inc, said a report by Deal Street Asia. The acquisition of Vahan is a part of Airtel’s Startup Accelerator Program to support the growth of early-stage Indian tech startups.

The initiative will give startups early access to Airtel’s online and offline distribution network, deep market understanding and ecosystem of global strategic partners. Vahan specialises in providing jobs by using artificial intelligence-driven bot (web robot) and a messaging platform, became the first company to join the program.

Startups will also access to advisory services from Airtel’s executive team. Airtel’s scale and digital capabilities around distribution and payment can drive growth for startups that face multiple challenges in scaling up, said Airtel Chief Product Officer Adarsh Nair.

Cool Japan Fund invests US$50M in gojek, despite reported losses- e27

Cool Japan Fund, a Japanese entertainment-dedicated fund, announced an investment of JPY5.5 billion (US$50 million) into gojek, as gojek forays into the entertainment sector with the launch of its video streaming service goplay.

According to an article from Variety, Cool Japan says it will work with Gojek to spread Japanese culture in Indonesia through both the platform’s food delivery and video streaming services.

“[This investment in gojek] was decided under very strict screening,” said Naoki Kitagawa, a former representative director of Sony Music Entertainment (Japan), who became president and CEO of Cool Japan in June last year.

Cool Japan Fund (CJF) Inc. was launched in November, 2013. Funded by both the public and private sectors, the company aims to promote Japanese exports, such as anime and food.

Also read: Following Nadiem Makarim’s resignation, gojek names new leaders

Indian online hotel booking startup MiStay raises funding from ah! Ventures- VCCircle

Founded in 2016 by alumni of IIT-Madras, MiStay Hospitality Pvt. Ltd, which runs online hotel reservations startup, has raised an undisclosed amount from investors including the Mumbai-based ah! Ventures, wrote VCCircle.

The round was also supported by a group of investors led Hyderabad-based entrepreneur, Sumit Nagpal.

Bengaluru-based MiStay said it will use the funds to expand its footprint and grow its leadership team. In 2017, it raised an undisclosed amount in seed funding from Axilor Ventures and a group of angel investors.

It claims to have grown five times since its pivot to the consumer market and says it has achieved operational profitability. It is currently present in 100 cities through 1,500 hotels.

Chinese biggest co-working space provider Ucommune files for US IPO- Deal Street Asia

Beijing-based Ucommune, which was valued at $2.6 billion about a year ago, has appointed Citigroup and Credit Suisse to work on a listing, while Bank of America has a minor role in the deal, as it files for a US IPO, said a Deal Street Asia report.

A prospectus was lodged with the U.S. Securities and Exchange Commission (SEC) in late September, they said, and the company has held preliminary meetings to sound out investors before the formal public marketing process begins.

China’s biggest shared workspace provider Ucommune’s decision to explore a listing has surprised investment bankers given the similarities between its business and that of embattled US rival WeWork, which this week had to be bailed out in a US$10 billion deal after investors soured on an IPO plan.

A decision to go ahead with the IPO will depend on the feedback provided by potential investors, the sources said.

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Cool Japan Fund, a Japanese entertainment-dedicated fund, announced an investment of JPY5.5 billion (US$50 million) into gojek, as gojek’s eventual foray into entertainment sector with the launch of its video streaming service goplay.

According to an article from Variety, Cool Japan says it will work with Gojek to spread Japanese culture in Indonesia through both the platform’s food delivery and video streaming services.

“[This investment in gojek] was decided under very strict screening,” said Naoki Kitagawa, a former representative director of Sony Music Entertainment (Japan), who became president and CEO of Cool Japan in June last year.

Cool Japan Fund (CJF) Inc. was launched in November, 2013. Funded by both the public and private sectors, the company aims to promote Japanese exports, such as anime and food.

However, the company is not without trouble. The initiative has been reporting losses, with the fiscal year ending in March showed a US$160 million loss. The year before, the fund lost US$90 million.

Critics blame the public-private arrangement as a sign of a lack of accountability regarding performance.

Also Read: Women-focussed media Clozette secures US$10M funding from Cool Japan Fund

“[The Cool Japan Fund] is allowing projects to move forward unchecked without releasing to the public its profits and losses for current projects,” Takayuki Shimizu, a member of the House of Councillors from the Japan Innovation Party, said.

Among the known failures was an investment of US$9 million in a department store in Kuala Lumpur in 2016, resulting in CJF selling its shares in the venture two years later at a presumed loss. No amount of loss was disclosed.

In April this year, it announced that it was co-investing alongside talent agency Yoshimoto Kogyo and telecoms giant NTT into Laugh & Peace_Mother, a business for distribution of educational content.

Previously, Cool Japan was a backer of the Daisuke animation website, which became wholly owned by games company Bandai Namco in 2017, following a buyout.

In August 2018, Cool Japan announced that it would put up to US$47 million into another fund, Japan Contents Factory Investment Business, to support the creation of Japanese visual content aimed at international distribution. Other partners are NTT Plala, YD Creation, Bungeishunju, and supermarkets to multiplex giant Aeon Entertainment.

Also Read: AIA Indonesia takes part in gojek’s Series F funding in a strategic partnership

The Japan Contents Fund seeks to help companies bankroll pre-sales contracts to provide capital until payment of license fees. It also plans on supporting production companies for visual content within a contract that promises payment after completion with Video On Demand (VOD) media services.

Cool Japan has also announced investments in a fashion brand for working women, and a direct to consumer winery promoting the consumption of sake by U.S. consumers.

gojek has been consistently adding partners-investors to its Series F funding, from Google, JD.com, and Tencent in February, to local conglomerate Astra, who invested US$100 million in March 2019.

In July 2019, Visa also joined the Series F funding, right after Thailand’s Siam Commercial Bank involvement in the round.

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Similar to many marketing buzzwords, disruption is one that has been used and misused almost as long as the word has existed. However, in today’s tech-savvy marketplace, marketers feel they “coined the phrase,” and prance around sipping overpriced lattes telling everyone just that.

So, why don’t we take a brief step back into history, to around 1954? Back in a time when marketers had never heard of disruption. Hang on, they did.

Take the classic Harvard Business Review article by Theodore Levitt on Marking Myopia – although this is specifically about the rise and fall of whole industries specifically, these changes were driven through disruption. 

Also Read: How Blockchain is disrupting the traditional finance industry

From the Ford Model T, the demise of the humble grocery store being wiped off the map by supermarket chains and petrochemical companies being challenged not once – when the kerosene light was replaced by incandescent lamps.

But again today with the rise of alternative power and battery-powered cars. Let’s face it; disruption is real, it has happened well before us and will continue well after we are gone. 

There is a clear gap in how disruption is being used   

Three or so years ago, every startup was wanting to “disrupt” or be a “disruptor,” taking on the big guys and bringing them to their knees – like David did Goliath.

But today it’s not as easy for a startup to disrupt a corporate as it was three years ago. In fact, for many startups, corporates are becoming the desired partner.   

Why this seismic shift in disruption mantra? Corporates themselves have become more nimble, innovative and aim to disrupt from within.

That is to say, embracing technology to automate, streamline and provide their highly-skilled and innovative workforce with flexible working arrangements.

Previously where many of the potential disruptors who were within companies breaking out, now they are empowered to innovate and create from within.

Startups, SME’s and corporates work together to proactively create solutions for products, services, and markets, leading to collaboration rather than decimation.

Where disruption was once being used to disassemble the ways of the past, now it is being used collaboratively create new blue ocean strategies and customer-led solutions like never before. 

How to look out for the positive indicators of disruption

There are many positive indicators of disruption, such as health and wellbeing, not to mention the obscene rates of obesity and diabetes sweeping across the planet.

Also Read: Can journalists keep up with the pace of disruption?

Fitness empire F45 is building a global fitness empire around providing a 45-minute workout regime that a business executive or family person can make time in their day for.

Food companies such as You Foods are removing the need for expensive and often nutritionally void foods, with portion-controlled, easy to access ready meals.

The outcome is more people are becoming active and eating better, thus reducing the rates of obesity and diabetes within our community.

Then with the wave of health and wellness sweeping across the globe, countries have started implementing sugar taxes. Take Singapore for instance, which banned the advertising of sugary drinks — a positive result from disruption. 

Just because we have always done something a particular way, disruption has broadened even the most traditional and dogmatic mindsets amongst us.

Does startup disruption equate to a lack of management experience? 

With just about anyone able to create a startup with a great idea and a little seed funding, there is no doubt that there is a lack of management experience in startups.

There are certainly cases in which some companies feel so casual that at a certain point we wonder if the co-founders just wanted to hang out, or actually do business.

This is not necessarily all bad, but there are significant corporate governance, systems, and processes that experienced managers can add to the fold. 

The benefit of the “lack of experience” is a new way of thinking. That’s because there are no predispositions to how things should be done.

New startup managers need to be compliant, legal and of course ethical, but besides that, a new wave of thinking is providing startups with flexibility and uniqueness that many employees and customers are crying out for in today’s market place.

Has disruption evolved from unhappy customers? 

Disruption is about change, not simply technology. Netflix is a perfect example, where people got sick of travelling out to Blockbuster stores to pick up their new release videos.

Blockbuster refused to change their business model, so Netflix literally took their customers in a number of years, closing one of the most successful global franchise businesses in history. Why?

Disruption is a customer-driven phenomenon. New technologies come and go. The ones that stick around are those the consumers choose to adopt.

Adoption is critical to success, as with the blockbuster example, Netflix was easily accessible through a Smart TV or computer, it was as expensive as renting a couple of new release movies for the whole month’s subscription and you can unsubscribe at any time – simple to adopt. 

Wrapping up 

Disruption has become part of our daily lives, from our average commute where we are connected through social media, advertising and apps to companies around the globe, through to the way we travel, communicate, do business and purchase our groceries.

Generations ago, the change would have been resisted, however, with the rise of the millennials, change is not only embraced, but it is also demanded. But true innovation and disruption should aim to change the customers’ world not only for a profit but for meaningful good. 

Disrupting for the sake of being a “disruptor” has moved on, the time is to innovate, iterate and stay relevant. Regardless if you are a startup a big corporate, social enterprise or not-for-profit — the key to disruption is making the world a better place.

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Image Credit: Alexandru Goman

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It is undeniable that OTT has been taking over the entertainment industry ever since the growing popularity of Netflix. This does not apply only to customers in the Western hemisphere –even in the Asia Pacific, changes are apparent.

The changes possess a unique challenge for operators of pay-TV services.

In an interview with e27, Vewd CEO Aneesh Rajaram points out that while the latest industry reports show that the number of PayTV subscribers is still growing annually, the growth rate has been affected by the arrival of a new population who are getting more access to the internet via mobile phones or affordable broadband services at home.

“This population is starting to choose a different mode of video consumption habits than a traditional pay-TV subscription. This results in losing existing subscribers (cord-cutters) and also failing to attract the new younger demography,” he says.

Vewd is an OTT software provider for smart TV and set-top boxes devices. In this interview, Rajaram shares his insights on the growing trends of the ‘cord-never generation’, traditional pay-TV operators in Southeast Asia, and what it means for the entire entertainment industry.

Also Read: gojek introduces local content streaming GoPlay, adding more to its super-app ambition

Everybody streams today

In this pivot from traditional methods of viewing videos to streaming content from anywhere, how can pay-TV operators compete with these platforms?

Aneesh believes that it is important to understand the key trends before the problem is addressed.

“The solution really would be for pay-TV operators to add streaming capabilities to their boxes to offer consumers more choice … and also to come up with new affordable devices for consumers to conveniently stream their preferred content,” he elaborates.

Although, this might sound like pay-TV operators need to aggregate or become OTT platforms altogether in order to float the waters. As daunting as it sounds, the statistics are in favour of the latter.

Gen Zs and millennials are more likely to stream than the Gen Ys and Gen Xs, this seems to be a widely known idea. But Rajaram says that it does not mean that the older cohorts –people aged 45-55-year-old– do not stream content.

“Even though Gen Zs and millennials stream more and more likely to use OTT services, the universal trend is that every home is starting to get streaming services and is likely to have at least one streaming service going forward,” he says.

The locational differences are mostly in the willingness to pay, in his opinion.

Also Read: Shopee takes aim at Lazada with live streaming play

Consumers in the Asia Pacific region are more likely to use advertisement-supported streaming services, compared to North American users who tend to go for more subscription-based services.

Local players in the sector such as Hotstar and Iflix are immensely using free advertisement-supported services to give consumers choices. This will eventually enable consumers to work their way into getting subscribers to pay on a monthly basis.

What is next for the entertainment industry

Netflix has been known to launch original content that is only available on its own platforms, such as Aaron Paul’s El Camino and Adam Sandler’s Murder Mystery. In the Asia Pacific region, even popular Indian movie director Karan Johar launched his movie Drive exclusively on Netflix.

This trend has led industry players to believe that this is how streaming platforms are going to disrupt the film industry.

Interestingly, Rajaram actually believes that it will not disrupt but level the playing field in the entertainment industry.

“… By providing a lot more opportunities for large as well as independent studios to get their content distributed in the world. Traditionally, it used to be difficult for independent content creators to really produce content through content distribution ecosystem,” he explains.

But now, with the existence of OTT, the number of apps and services available in the home mean that these providers can license their content to multiple players –leading to more homes reached easily at the same time.

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Image Credit: Vewd

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Life skills are surprisingly crucial to your success at work, too. Here’s why Mark Zuckerberg has mastered both

What are life skills, anyway? I like the definition from UNICEF: “Life skills are defined as psychosocial abilities for adaptive and positive behaviour that enable individuals to deal effectively with the demands and challenges of everyday life.” These life skills include cognitive skills for analysing and using information, personal skills for managing oneself as well as interpersonal skills for communicating and interacting effectively with others — all critical to your success as a leader and entrepreneur.

While our parents are typically the ones to teach us life skills, there are others out there who can provide lessons about life skills. Facebook Founder Mark Zuckerberg is one of these people whose public experience taught me about what it really means to achieve success. Here are seven life skills that I learned from him, and how you can apply them to your own career:

Also Read: Singapore fourth in Asia for government data requests: Facebook release

1. Equanimity.This is a fancy way of saying that Zuckerberg doesn’t lose his cool when he’s under pressure or in a stressful situation. Instead, he calmly approaches even the most difficult situations because anger doesn’t breed success — it only serves to alienate or give the impression that someone feels they don’t have control over a situation. Developing this equanimity has helped improve my relationships with employees and colleagues while providing a way to think more clearly about the critical problem or pressures in front of me.
2. Critical thinking. Zuckerberg has noted his interest in always going deeper with an issue or idea in order to really make a difference, be disruptive and maximise the value. As he once said, “I got my first computer in the sixth grade or so. As soon as I got it, I was interested in finding out how it worked and how the programmes worked and then figuring out how to write programmes at just deeper and deeper levels within the system.” I could see that success only comes from taking the time to think more critically rather than just accepting the first idea that comes to mind.
3. Problem-solving.Zuckerberg has always focussed on solving problems. As he noted in a biography about him, “The question I ask myself like almost every day is, ‘Am I doing the most important thing I could be doing?’ Unless I feel like I’m working on the most important problem that I can help with, then I’m not going to feel good about how I’m spending my time.” I knew that, at the heart of every business I considered creating, there had to be a relevant problem that needed solving to help a consumer or a business.

Also Read: Why Facebook’s early investors funded this mobile medical consultation startup

4. Effective communication.While many leaders leave employee communication to others on the team, Zuckerberg has always taken on this role himself. In creating a company that increases communication and interaction between people, it makes sense that he would also take this approach with his employees. Many of those who have worked at Facebook note how he is always walking around, talking to everyone, asking questions and getting to know them personally. When I tried this for myself, I realised how much more willing my team members were to share what was going on, how they felt, and voice any ideas they had for making changes. Keeping open communication with your team not only builds trust but can also help you be a more effective leader.

5. Assertiveness.Zuckerberg is not interested in following or doing things on other people’s terms. As he noted in a Wired Magazine interview, “Sometimes we are going to do stuff that’s controversial, and we’re going to make mistakes. We have to be willing to take risks.” It’s this attitude that proves how a product, service, company and brand can make strides in completely changing an industry. Success doesn’t come from worrying about how something will work; instead, you just have to jump in and do it.

6. Mindfulness:Zuckerberg doesn’t let his critics get to him. I learned that the ability to ignore the noise around me has helped me to use the energy I would have wasted on worrying about what others thought of me. I use it to fuel creativity, innovation and actions that have furthered my business success. Taking a mindful approach to what you want to accomplish — and blocking out the rest — is critical.

7. Vision.In recent years, Zuckerberg has become more involved in shaping the global business landscape, illustrating that he is more than just a “one-hit wonder.” His recent address at the United Nations noted the need to expand Internet access to developing nations, illustrating his interest in the future of human rights and social issues. Zuckerberg has also met with country leaders as part of his vision for shaping future generations and helping tackle various global social problems. I value his leadership style and encourage those working in technology to follow suit in taking on a bigger role in real-world issues, rather than relying on politicians to do it for us.

Altering your own thinking, behaviours and actions accordingly can help you deliver positive results.

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Cynthia Johnson is the Director or Brand Development at American Addiction Centers, previously Managing Partner at RankLab (acquired by AAC Holdings, Inc. 2015)

The Young Entrepreneur Council (YEC) is an invite-only organisation comprising the world’s most promising young entrepreneurs. In partnership with Citi, YEC recently launched BusinessCollective, a free virtual mentorship programme that helps millions of entrepreneurs start and grow businesses.

This article was first published on e27 on May 2016.

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WeWork plans to lay off 4,000 staff [Reuters]

Office-sharing startup WeWork is planning to cut as many as 4,000 jobs as a part of a turnaround plan put in place by top shareholder Japan’s SoftBank Group after it took control of the company this week, Financial Times reported on Wednesday.

The job cut will amount to just under a third of WeWork’s global workforce, and about 1,000 of the cuts will hit employees such as janitorial staff, the report said, citing people with direct knowledge of the plans.

SoftBank agreed to spend more than $10 billion to take over WeWork on Tuesday, giving a near US$1.7 billion payoff to the startup’s co-founder Adam Neumann to relinquish control.

New Gojek co-CEO says dual listing likely but no immediate IPO plans [DealStreetAsia]

Indonesian unicorn Gojek’s new joint chief executive officer Andre Soelistyo on Thursday said the ride-hailing and payments major is likely to go for a dual listing, with the IDX as its primary destination.

He declined to divulge the second destination where the company could list its shares. Addressing a media briefing in Jakarta, the former Gojek group president said the company had no immediate plans to tap the public markets.

“It’s fair to say that the [Indonesia stock] market is not well educated yet. Knowing that, if we can deliver on our mission of covering a larger part of the economy and building sizeable business opportunities, that’s comparable to some of the larger conglomerates in Indonesia such as Astra and BCA and some of the big banks,” Soelistyo said.

Visa and Revolut launches multi-currency debit card [press release]

Visa and Revolut have launched a multi-currency travel debit card that allows Singapore consumers to spend overseas in over 150 currencies at the real exchange rate without hidden fees.

Findings from a YouGov survey commissioned by Visa revealed that Singaporeans are receptive towards neobanks and have expressed strong interest in such a debit product.

Quote attributed to Kunal Chatterjee, Visa Country Manager for Singapore and Brunei.

“Revolut is the first neobank that Visa is partnering in Singapore to issue a multi-currency travel debit card. Based on a research that we conducted on Singaporeans, more than 70 per cent of millennials are keen to sign up for a multi-currency travel product offered by a neobank. In fact, Singaporeans are most concerned about not getting the best exchange rates when they visit a money changer, so it is not surprising that close to 80 per cent of millennials say they would change less money and use this multi travel currency card when travelling. As we progress into a more digital society, consumers expect to lead a digital lifestyle and make payments seamlessly when they travel without worrying about carrying too much cash.”

AI startup Crediwatch raises US$3.2M [press release]

Crediwatch, a Bangalore-based techfin company building AI/ML tools to help the financial services industry reduce credit risk, has secured US$3.2 million in Series A funding, led by ARTIS Labs. Abstract Ventures also participated.

The funding will accelerate R&D and commercialisation of Crediwatch’s platform.

Prior to this round, Crediwatch has raised US$1.6 million.

Crediwatch is a ‘data insights-as-a-service’ company that provides lenders, businesses with actionable credit intelligence on private entities they need to improve trust and increase their lending and trading activity. Crediwatch does this with no human intervention by deploying the latest practical AI and technology tools that provide the most reliable comprehensive real-time inputs.

 

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Bitcoin as a symptom 

As it rose to popularity, many experts predicted that it would become the go-to solution for remittances, especially in Southeast Asian markets like the Philippines, which have high overseas working populations. 

Bitcoin – the pundits suggested – would allow overseas Filipinos to send their remittances more affordably than traditional wire transfer services like Western Union. Even companies that traded Bitcoin, such as Coins.ph and Satoshi Citadel Industries, communicated the expectation that remittances would be a major use case. 

Several years later, Bitcoin has indeed taken off in a big way in the Philippines and other neighbouring ASEAN markets, but not for the reason most anticipated. The money corridors of giants like Western Union have largely remained unscathed. Instead of sending remittances via Bitcoin, Filipinos have taken to the cryptocurrency as a form of investment, trying to profit off as a speculative tool.

Also Read: A layman’s guide on how bitcoin is aiming to transform the global economy

What should be interesting to note is that such Filipinos are not necessarily interested in Bitcoin itself – they hold no ideological affinity for the decentralization of money, or other similar ideals usually associated with the earliest adopters of the coin. These Filipinos simply lacked access to investment instruments, and Bitcoin – by its sheer ubiquity in tech and business media – happened to be the easiest to invest in. If the financial exclusion is a problem, so, too, is investment exclusion: People have no channels to make their money grow.

That’s why the rise of digital investment channels is so important for a country like the Philippines. The fin-techs who provide mobile wallets, including PayMaya, GCash, Coins.ph, and Rebit, now count millions of users between them. Now that Filipinos have the means to store value, they also need to be given channels to increase this value. On this front, there are many promising local and global companies accomplishing just this task.

Next-generation investment platforms

The local startups in the Philippines addressing the need for more investment channels are as much impact- as profit-oriented. And within the broad impact of helping people in need of money, people can further segment by their own particular interests. 

If you’re passionate about helping students, you can extend a loan to students via InvestED. This loan will help with a variety of academic-related expenses, such as their tuition, dorm fees, daily allowances, or school needs like their laptop. In return, you as a peer lender get 6 to 12% per annum on their investment.

If you care more about rural communities, on the other hand, you can invest in a platform like Cropital. The platform connects peer lenders with farmers, who use the capital to scale up or modernize their farms in some way. There then becomes three way value creation: the crops grow, the farm’s business grows, and the investor’s investment grows.

Founded in Israel, global social trading platform eToro has become very popular in Southeast Asia, the Philippines included. The company has pioneered copy trading, which makes it easier for new or busy investors to invest in the stock markets by allowing them to automatically copy the future trades of a trader who matches their risk appetite and other preferences.

eToro also notably has numerous CopyPortfolios that allow investors to copy thematic portfolios, one of which is a 5G portfolio that gathers 45 companies integral to the global rollout of 5G mobile network.

These include tech manufacturers like Intel and Hewlett-Packard as well as telcos like AT&T, Telenor, and China Telecom, which launched the third telco in the Philippines with Mislatel Corp. Filipinos, in short, will be able to invest in the companies indirectly and directly responsible for one day deploying 5G where they live and work.

Also Read: 5 legal mistakes startups make after inception and how you can avoid them

That InvestED, Cropital, and eToro allows Filipinos to invest in the development of their own communities – be it through human capital or technology infrastructure – should be noteworthy for every founder in Southeast Asia.

One, Filipinos want access to financial instruments that allow them to grow their money, in a way that makes sense for them. People don’t want to be pigeon-holed into investing in whatever financial trend is currently dominating the headlines, but have genuine options available to them, each of which they can carefully consider through transparent terms.

Furthermore, given the choice between investing in an abstract commodity and one that has a direct impact on their community, Filipinos will almost always pick the latter. It’s an easy choice. Why just earn money when you can do so while also helping your less fortunate neighbours or building your community’s tech infrastructure?

Founders across the Asia Pacific need to think of ways they can similarly create value for multiple stakeholders, spread across people or organizations in need of capital and those who have it to lend or invest. If they achieve this goal, founders will have something even more valuable than the oft-cited platform or marketplace that they say they want – they’ll have genuine community.

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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: André François McKenzie

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Now that the shock wave is over, it is time to start talking about what is next.

The Southeast Asian startup ecosystem started the week with a bang when gojek CEO and co-founder Nadiem Makarim showed up at Merdeka Palace on Monday and announced his resignation to join President Joko Widodo’s new cabinet.

Two days later, the entrepreneur’s new designation at the cabinet was revealed: He is to be the new Minister of Education and Culture.

The internet went crazy. On Twitter, there were at least 35,000 tweets with the keyword Mendikbud (“minister of education and culture”) by the time is feature was written. Discussions about Makarim’s new designation were also frequent in various Telegram groups.

Many of the discussions centred around whether Makarim is the right person for the job, considering his lack of background in education and culture. This discussion can go on for days, so here I would like to focus more on what his appointment meant for the startup ecosystem –in Indonesia and Southeast Asia.

What is the message that Makarim’s appointment is sending out to us, the startup ecosystem in Southeast Asia?

The message is that: We matter.

Also Read: [Updated] Breaking: Nadiem Makarim named Minister of Education and Culture of Indonesia

Startups used to be all about college dropouts tinkering in their’s parents garage, trying to come out with something groundbreaking. Five to ten years ago, if you tell your kaypoh aunties that you are a startup founder, at best they are going to arch their eyebrows before gossiping with fellow kaypoh aunties (“Kids these days …”). 

But as companies reached billions of dollars in valuation, as their names become a household brand, their founders may start to gain a voice beyond their community.

Once their achievements are acknowledged, the society will start looking up to these founders. They want to find out about their secret sauce: How they are doing this, how they are solving problems. Their insights and opinions will be heard once these founders reach a particular level in their career.

Even better: Everybody will expect the chef to cook his secret sauce for them. The big institution suddenly wants you to be part of the team so that you can help them improve things there.

It seems only fitting that next big move for a startup founder is to enter politics. In light of Makarim’s appointment, some had joked about becoming a minister as the next exit path for a founder. But there is some truth to the statement.

Startup founders entering politics is more than just a matter of a startup having a friend in high places. Though honestly, any startup can benefit from such a thing. Including gojek itself.

It is all about making a greater disruption, a more significant impact on society. No matter where you live, the public sector is always in need of disruption. And who is better to do that than startup founders? The very people with innovation in mind?

Also Read: Following Nadiem Makarim’s resignation, gojek names new leaders

Interestingly, Indonesia is not the only phenomenon where this has happened.

In the US, you may have been following the moves of Democrat presidential candidate Andrew Yang, who had a strong background in the startup community before his involvement in politics.

Much closer to home, we have also seen Pakornwut Udompipatskul, the former managing partner at StockRadars, who had won a local election in Thailand and is leaving the company to become an MP.

In Malaysia, three startup founders have also been appointed to the National Economic Action Council (NEAC). According to a Vulcan Post report, their presence in the council is to “provide insight on issues related to the cost of living, employment, poverty and homeownership.”

Of course, this does not mean that we want everybody to leave their company ASAP and start a campaign to become an MP. Really, the last thing we need is people who entered public service because it seems cool to do so.

But if you are a startup founder and public service is your calling, then remember that you have something unique to bring to the table. Beyond your understanding of how design sprint works or how to set up an OKR, you are coming with a mission: To never accept the status quo.

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Image Credit: Wahyu Putro A., Antara Foto

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Tax filing can be one of the most cumbersome activities for startups. That is why you hire a tax professional so he or she can handle all the tax-related tasks and you do not have to get your hands dirty.

Here are some pointers that will help you choose the right tax preparer for your business.

1. Expertise

As a startup owner, you often tend to take tax filing lightly and do not give much attention to hiring a tax professional. However, you should make sure to hire an experienced tax preparer. An experienced tax professional knows the ins and outs of the tax filing process and can get you the maximum tax relaxation.

It does not mean that the novice tax preparers are not capable of taking care of your taxes. However, if you are hiring a tax professional, why not hire an experienced one?

2. Qualification

When an individual holds the responsibility of filing your taxes, you are obligated to know his or her qualification. However, you should not be overwhelmed if the tax preparer holds a bunch of designations under his/ her name.

The tax professionals have different qualifications depending on the services they offer or the examinations they have passed. You should analysis the tax requirements of your startup and select the tax professional accordingly.

Also Read: Indonesias tax management startup OnlinePajak raises US$25M led by Warburg Pincus

Here are some professionals who offer tax-based services-

1. CPA – A Certified Public Accountant (CPA) are individuals that are responsible for managing the finances of customers, including transaction and taxes. A CPA can be specialized in taxes; however, it is not necessary.

2. Enrolled Agent (EA) – Startups can hire Enrolled Agents if they need to be represented in front of the IRS. An individual can become Enrolled Agent by passing an exam or by working in the IRS for a minimum of five years. IRS does not put any limitations on the practice right of EAs, which means that they can handle all tax matters.

3. Certified Financial Planner (CFP) – The CFPs offer financial planning to startups on insurance scenario, future investments, cost optimization, and long-term tax strategy. Hence, startups can hire a Certified Financial Planner if they are planning for the future. However, not all CFPs offer tax services. Therefore, you should ask the CFPs about their list of services before hiring one.

4. Accredited Tax Preparers (ATP) – The Accredited Tax Preparers (ATPs) and Accredited Tax Advisor (ATAs) is a credential provided by the Accreditation Council for Accountancy and Taxation (ACAT) to individuals that pass the respective exams. These credentials ensure that the individuals are well-versed to handle all your tax-related issues.

3. PTIN

A PTIN (Preparer Tax Identification Number) is a pin used by the IRS to identify the tax preparers. All enrolled agents, as well as the tax professionals that are involved in filing taxes, should get a PTIN as it is required to be filled in the tax forms. However, some tax forms do not require PTIN.

Hence, it is essential for every entrepreneur to check for the PTIN before hiring a tax preparer, so you do not have to suffer while filing taxes.

4. Type of tax

Hiring a tax preparer also depends on the type of tax you want to file for your startup. There are some tax preparers who are proficient in filing federal taxes but are not aware of the local taxes of your state and vice-versa.

Hence, you should hire a tax professional who can file both federal and state taxes, taking the burden of tax filing off your shoulders.

5. Fees

There is an ocean of tax professionals out there. However, like all other aspects of your business, you want someone who asks for a reasonable fee for filing taxes.

Also Read: How will Goods and Services Tax (GST) affect businesses in India?

The fee asked by different professionals can vary on many accounts. They can be anything from the number of forms filled to the size of your business. However, if they guarantee a refund larger than others, do not get lured into the offer. They might be using illegal methods to get you that refund.

6. Technology  

According to the IRS, in 2019 filing season, the total e-filing was estimated to be 127,939,000 of which 71,725,000 were filed by tax professionals. These large numbers indicate that a majority of them prefer to file their taxes online.

Hence, you should hire someone who is tech-savvy and prefers e-filing of taxes.

Moreover, the tax preparer should also make use of advanced solutions such as cloud-hosted tax software available in the market to reduce manual errors.

Tax filing should be hassle-free

Tax filing should be the least of concerns of any startup. They should be able to focus their time and energy on core processes for future growth. Hence, it is necessary to hire a tax professional that will take care of all tax issues, not just filing.

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Image Credit: Kelly Sikkema

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Japan-based Digital Wallet Corporation acquires Speed Money Transfer Philippines, rebranding as Digital Wallet Philippines [DealStreetAsia]

Digital Wallet Corporation (DWC), a Japan-based fintech company, announces that it has acquired remittance and foreign exchange firm Speed Money Transfer Philippines (SMTP) for an undisclosed amount.

SMTP operates in the Philippines and Australia, and following the acquisition will be renamed as Digital Wallet Philippines. The report by DealStreetAsia said that the deal and the name change have been approved by the country’s central bank, the Bangko Sentral ng Pilipinas (BSP).

With the Philippines placing fourth as the highest remittance recipient globally in 2018 at US$34 billion (according to the World Bank), the acquisition is timely. Eiji Miyakawa, Founder and Chief Executive Officer of DWC said the company’s Philippines business aims to allow unbanked customers to benefit from financial services such as remittance, foreign exchange, and payments through their mobile devices.

“The Philippines acquisition is the first step in DWC’s global expansion strategy to deploy our mobile wallet services, Smiles Mobile Remittance (Smiles), to Asia and Europe,” Miyakawa added.

Doctor Anywhere joins forces with ViettelPay, providing online healthcare services in Vietnam [MobiHealthNews]

Singapore-headquartered telehealth startup Doctor Anywhere has joined forces with ViettelPay, a part of Vietnam’s mobile carrier Viettel, in signing a strategic cooperation agreement to bring a full suite of online healthcare services to ViettelPay’s registered users throughout Vietnam.

Following the agreement, ViettelPay’s customers will be allowed to connect to Doctor Anywhere’s virtual clinic and consult a locally registered doctor, as well as access a range of wellness services directly on the ViettelPay App, as reported by MobiHealthNews.

Also Read: Doctor Anywhere raises US$4.1M to offer patients easy access to healthcare providers through video consultations

Doctor Anywhere continues its expansion plan in Vietnam with its latest strategic cooperation with ViettelPay after the startup signed a Strategic Cooperation Agreement with Bao Minh Insurance, one of the largest insurance groups in Vietnam back in September.

Meet the AR startup that has attracted celebs of Katy Perry’s caliber [Forbes]

Sandbox VR, a free roam location-based entertainment venue, announces that it has received US$11 million round of financing from notable celebrities such as Katy Perry, led by a16z and Craft Ventures, founded in 2017 by David O. Sacks and Bill Lee and backers of Oculus, AirBnb, Lyft, Pinterest, and Slack.

Sandbox VR puts up to eight players wearing backpack PCs and VR headsets literally inside the game together. It was founded by game developer Steve Zhao.

Prior to this funding, Sandbox VR secured a whopping US$68 million from Andressen Horowitz, The celebrity presence was rounded out by actors Will Smith, Orlando Bloom, athletes Kevin Durant, and Honda Keisuke, and former superagent, and CAA co-founder, Michel Ovitz.

Also Read: RedDoorz makes US$70M first close of Series C round, to launch tech hub in Vietnam

As reported by Forbes, the company is currently in the process of an expansive rollout across the U.S. with a location recently opened in Los Angeles, and is coming soon to New York, Austin, San Diego, and Chicago with a total of 16 total locations planned by the end of 2019, and fifty by the end of 2020.

RedDoorz is looking at IPO by 2022, stating a logical way to get funded [Business World Online]

Hotel management and booking platform RedDoorz is reportedly contemplating an initial public offering (IPO) in the country by 2022, Business World Online has learned.

“I think, overall, the business goal of RedDoorz is to conduct an IPO. By 2022 or 2023, we should be on our way to creating our business which is publicly listed. That is the general vision,” said RedDoorz founder and chief executive officer Amit Saberwal.

He added that the company targets to earn US$500 million by 2020. By December, Saberwal said RedDoorz will be earning approximately $200 million.

RedDoorz announced last August that it closed US$70 million for the first part of its Series C funding, with participation from growth equity firm Asia Partners, Rakuten Capital, and Mirae Asset-Naver Asia Growth Fund, adding to its existing investors Qiming Venture Partners and International Finance Corporation.
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