Third Start-up Express concludes pitch final in Hong Kong

The pitching contest for the third Start-up Express, an entrepreneurship development programme organised by the Hong Kong Trade Development Council (HKTDC), has concluded.

This year's winners are Arical, Arovia Hong Kong, BUG BROS BIOTECH, Gense Technologies, imBee, Inovo Robotics, Open Ocean Engineering, Return Helper, Shopkyo, SPES Tech and Wineworld Xplorer. MICology won the My Favourite Start-up Award in a live poll.

Financial services conglomerate AMTD Group, which has been the strategic partner for Start-up Express for two years, established the SpiderNet Award under which it selects the top performer in the Pitching Final. This year, the award will provide imBee with an opportunity to access the resources and network of the AMTD SpiderNet ecosystem.

The contestants proposed innovative and disruptive solutions to transform business and social ecosystems.

- Arical offers geospatial artificial intelligence (AI).

- Arovia produces collapsible displays which can be connected to mobile devices.

- BUG BROS BIOTECH has an intelligent waste collection and separation system plus insect-based technology in dealing with organic waste.

- Gense Tech makes a home-based device that scans cross-sectional images of a person's lungs, abdomen, or limbs in real-time for diagnostic screening.

- ImBee, a Twilio partner, enables customer relationship management (CRM), lead generation, sales boosts and customer service excellence on messaging platforms such as WeChat, WhatsApp and Line with its software-as-a-service (SaaS) platforms.

- Inovo Robotics produces robot arms.

- MICology provides predictive simulation in interactive 3D environments that are remotely streamed.

- Open Ocean Engineering's Clearbot is an autonomous, solar-powered swarm of trash-collecting robots that use AI vision to detect and collect trash from bodies of water.

- Return Helper has a SaaS platform that leverages big data and machine learning to help online retailers handle e-commerce returns effectively, efficiently and in an ecofriendly way.

- Spaceship.hk from Shopkyo is the first mobile platform in Hong Kong that allows users to compare and book global door-to-door courier shipments online.

- SPES Tech specialises in the development of biomaterials via protein and genetic engineering techniques.

- Wineworld Xplorer is a global wine trading and asset management platform.

Stephen Liang, Assistant Executive Director of HKTDC said: "Startups have been affected by the economic downturn like much of the world but the true essence of entrepreneurship is persistence in the face of adversity. There can always be opportunities found amid what otherwise appears to be a crisis.

"Traditional business and consumption models are seeing a new normal amid the COVID-19 pandemic, which can in turn increase receptiveness to new ideas. With outstanding achievements in innovation and technology, local startups launched products and services to fight against the pandemic.

"The HKTDC will continue to support local startups in exploring business opportunities amid the pandemic-struck economy, and to promote the city's capabilities in innovation and technology to overseas buyers."

Calvin Choi, Chairman of the Board of Directors and CEO, AMTD Group - and one of the judges - said: "I am impressed by the innovative ideas and practical solutions presented by our city's young entrepreneurs in this year's Start-up Express Pitching Final presentation. This recurring programme serves as a valuable platform for participants to showcase their unique business ideas and demonstrate the innovative power of the young generation in Hong Kong.

"The current business landscape is full of challenges, but for startups that are agile and versatile in responding to changing conditions and market needs, they can definitely identify and seize the best out of available emerging opportunities."

Jason Chiu, Chairman, Hong Kong Startup Council, said: "In every entrepreneurial journey, there are bound to be challenging times and the strength of a true entrepreneur is the ability to fight through the hard times and learn from each setback. This year has been especially trying due to the health situation that has impacted businesses globally but these startups have shown the resilience to fight through the adversity and succeed.

"It has been great to see how this batch of startups have navigated the past few months to present themselves in a shining light, ready to embrace new opportunities on the international market through Start-up Express' unique support system. The programme helps entrepreneurs build connections and seek opportunities with potential investors and partners. I look forward to the winning startups joining HKStartupSociety and realise their dreams of not only excelling in Hong Kong but on the international stage."

The startups will be invited to exploratory sessions, power meet-up sessions with successful business leaders, business-matching sessions and local events organised by the HKTDC, including Start-up Zones at the Asian Financial Forum, spring and autumn editions of the HKTDC Hong Kong Electronics Fair and HKTDC Hong Kong International Medical and Healthcare Fair. The HKTDC will also bring the startups to the international stage by organising overseas missions and setting up Hong Kong Pavilions at international technology exhibitions - including CES in Las Vegas and MWC in Barcelona.

A key driver for Start-up Express participants has been the opportunity to enhance brand and media awareness, while also connecting with mentors, partners and investors through HKTDC-organised local and overseas events. This has provided startups with the chance to learn from experts and strengthen their core business.

Start-Up Express past winners include Miscato, which developed and patented aromatherapy solutions that can be controlled with a mobile app, and Quikec International, which developed a one-stop cloud-based supply chain management solution.

Michelle Fno, Founder & CEO of Miscato said: "HKTDC's strong network has helped us land interview opportunities with local and overseas media outlets, which in turn allowed me to share how my company developed our new series of antiviral smart aromatherapy products. Thanks to this increased exposure and HKTDC's support, we've since been able to capture new business opportunities and expand our clientele."

Peter Li, President and Co-founder of Quikec International said: "Start-up Express has provided us an opportunity to participate in different exhibition and international exchange events. This has helped us expand our client base and find excellent partners despite operating on a tight budget. For example, meeting with Duncan Chiu, a well-known investor, offered many valuable lessons for us as he offered suggestions on business-development strategy."

The HKTDC will continue to support Hong Kong's status as a competitive business city and hub for innovation. The organisation recently launched the HKTDC Transformation Sandbox (T-box), offering free support on branding, e-commerce, manufacturing relocation and new market development for enterprises, as well as a Voice of Start-ups series online to show how local startups' creativity and versatility help them thrive and capture local and overseas business opportunities.

In addition to organising Start-up Express, HKTDC will support startups by hosting an annual Entrepreneur Day in July.

Source: HKTDC. Start-up Express Pitching Final winners photographed with jurors and guests.

The HKTDC promotes assist and develop Hong Kong's trade. With 50 offices globally, including 13 in Mainland China, the HKTDC promotes Hong Kong as a two-way global investment and business hub. The HKTDC organises international exhibitions, conferences and business missions to create business opportunities for companies, particularly small and medium-sized enterprises (SMEs), in the mainland and international markets. The HKTDC also provides market insights and product information via trade publications, research reports and digital news channels.

Dubai Chamber white paper analyses Dubai startup funding environment

Source: Dubai Chamber. Cover for the white paper.

Startups in the UAE need a practical guide to help them navigate the UAE’s funding landscape along with access to a wider network of investors who are eager to finance new business ventures, a new white paper published by the Dubai Chamber of Commerce and Industry has said.

The report, Helping Startups Access Funding, was published in collaboration with Roland Berger, and released during Dubai Startup Hub’s Entrepreneurship Advocacy Series event in March. Dubai Startup Hub is the entrepreneurship arm of the Dubai Chamber of Commerce and Industry. The initiative provides clarity and direction in the journey of a startup entrepreneur through a wide range of programmes, workshops and training.

The white paper also called for allocation of more investment for startup incubators and accelerators, as well as for closer cooperation between universities, government agencies and investment funds to expand the scope of investments, to support the growth of startups in the UAE.

Navigating the complex local funding ecosystem, high hurdle rates to qualify for equity capital, and insufficient risk appetite of debt lenders were listed as key challenges for startups in the UAE. In addition, many banks still require startups to have an established company track record of at least three years before they can qualify for funding. The report also found that investor appetite is limited to a select number of business models, technologies and sectors.

Although the UAE has successfully attracted a diverse set of investors, interest in startups as an asset class is still relatively new, the white paper noted, with the bulk of investment still primarily directed towards other asset classes such as real estate and commodities. The document added that a lack of reliable market data adds complexity, cost and uncertainty when it comes to due diligence.

Building sector and technology specific ecosystems is the way forward to further elevate the role of startups in the economy, the report said. This in turn would help drive the UAE forward in its mission to be a world leader in innovation, and develop an entrepreneurial ecosystem where startups, small and medium sized enterprises (SMEs), and major corporations can promote the use of modern technology, leading to the diversification of the economy, and the creation of new job opportunities.

The white paper also underlined the need to build more incubator capacity to cater to the growing number of entrepreneurs, adding that most of the currently available spaces still come at a cost that require start-ups to run on a self-financed basis for a fair period.

Startups still continue to experience some degree of difficulty in opening a bank account in the UAE, largely due to the various risk policies adopted by banks, the report said, calling on government entities to play a leading role in reducing the risks incurred by banks in financing early-stage startups.
On a positive note, the report said the building blocks for a thriving ecosystem are now in place, noting that the number of startups in the UAE has grown considerably in recent years as the country has become a preferred regional destination for entrepreneurs operating across a wide variety of sectors and fields.

Results of the new white paper were based on insights obtained by a survey of banks, startups, venture capital firms, angel investors, incubators, accelerators, and government entities in the UAE.

Explore:

Download the Helping Startups Access Funding white paper (PDF)

INSKEN hosts global marketing summit for Malaysia entrepreneurs

Source: INSKEN. Firdaus delivered
welcome remarks at GMS 2018.

Held for the second year, INSKEN’s (Institut Keusahawanan Negara's) annual Global Marketing Summit (GMS) aims to help create game changers in the local entrepreneurship ecosystem.

Malaysia's YB Minister Datuk Seri Mohd Redzuan Yusof said, “Significant attention continues to be placed on promoting the growth on entrepreneurs and small and medium sized enterprises (SMEs) in Malaysia, specifically for B40s and M40s*. The Ministry of Entrepreneur Development (MED) will utilise the allocated budget to develop a focused and inclusive entrepreneur development program to be implemented in 2019.

“Our mission is to generate entrepreneurs with integrity and competitiveness in the global market. This is to encourage entrepreneurship in Malaysia Baharu** particularly among the low-income groups across all segments of the society.”

INSKEN, the lead agency for National Entrepreneurship Development and the National Entrepreneurship Resource Centre, staged the first GMS last year to address the global challenges facing homegrown businesses, and again this year for local entrepreneurs keen to up their game.

“Over the years, a myriad of entrepreneurship programmes and skill enhancements have been undertaken to nurture and groom individuals and companies to reach business perfection. As the leading agency for National Entrepreneurship Development under the purview of Ministry of Entrepreneur Development, it is INSKEN’s responsibility to address this problem. Thus, the idea of Global Marketing Summit was born,” said Firdaus Azharuddin, CEO, INSKEN.

He said the GMS 2018 was focused on creating opportunities for local entrepreneurs to meet and learn from influential speakers. Sessions at the event featured Rob Craven, Sales Advisor for Microsoft and Airbus; Vinita Bali, former Marketing Director for Coca-Cola and Cadbury; Ashraf Sinclair, actor and owner of TGI Fridays Indonesia, and Neelofa, founder of Naelofar Hijab.

INSKEN aims to develop highly knowledgeable, resilient and capable movers and shakers who embrace the tech-driven, app-enabled and disruptive environment that entrepreneurs operate in today, without sacrificing their sense of humanity and fair play. It became an agency under MED in July 2018.

Since 2015, INSKEN has successfully trained 28,330 local entrepreneurs via 1,109 entrepreneurship development training programmes held throughout Malaysia. These programmes are divided into several categories to empower different tiers of entrepreneurs, from public outreach to startup programmes, scale-up programmes, and ecosystem enhancement. By the end of 2017, INSKEN noted that 325 out of 500 companies that undertook its training programmes had successfully increased their revenue by 10%.  

*B40 refers to the bottom 40% of household income earners.There are three population bands, with T20 being the top 20% of income earners and M40 the middle 40% of household income earners.

**The New Malaysia, as based on the manifesto of the current ruling government.

Maybank helps SMEs with digital transformation

Source: Maybank. Leong.

In November 2017, Maybank Singapore partnered with Asian Business Software Solutions (ABSS) to empower startups and micro businesses in Singapore with Financio, an affordable cloud-based accounting solution which does not require any accounting knowledge to operate.

Almost a year on, Maybank's Marc Leong, Executive VP and Head SME Banking, Community Financial Services, shares that one in every five small and medium sized enterprises (SMEs) which open an account with the bank is also signing up to use Financio.

"Despite being in Singapore, adoption of the cloud is far from satisfactory," he said at the recent Accounting & Finance Show Asia 2018 in Singapore. He estimated that some 60% to 70% of small businesses are still working with offline software, or even doing their book-keeping manually.

"The bank has a deep role to push the go-digital (trend)," he said. Another digital initiative from Maybank, executed together with Financio, is PayNow-ready invoicing. In September, Maybank Singapore and Financio launched unique PayNow QR codes with embedded payment details, enabling funds received via PayNow to be easily tracked in Maybank’s Business Internet Banking and updated directly in the ledger.

PayNow is a peer-to-peer payment service that has been available to retail customers of nine participating banks in Singapore since July 2017. The generic PayNow QR codes had lacked enough payment details to identify what was being paid for.

More announcements are planned for later in the year, Leong said, around the Singapore government-driven SMEs Go Digital programme, and also a new branch along main tourist belt Orchard Road which will incorporate a digital bank in a cafe.

"We're taking this role seriously," Leong said. "It is an ecosystem play, leading from the SME to the bank to fintechs...This will be the trend. If you don't want to join it you will lose out."

Leong also shared that Maybank is locally incorporating its Community Financial Services business in Singapore. "By November 5 we will be fully incorporated," he said. "It is a huge step for us, a surefire way to tell the world and Singapore that we are here to stay."

Since PayNow Corporate was launched on 13 August 2018, close to 2,000 Maybank customers have signed up for the banking service to receive or send payments between businesses and individuals instantly with just a Unique Entity Number (UEN) or a PayNow QR Code.

Maybank and Financio shared the same booth space at the event.

The Maybank reception counter.

Explore:

Maybank Singapore is promoting Financio and PayNow with initiatives such as:

- Maybank is offering the first 12 months free for Financio. The premium plan usually costs S$9.95/month.

Maybank PremierBiz or FlexiBiz account holders can sign up for Financio by:

Applying and activating Maybank Business Internet Banking.
Registering for Financio upon account opening by completing a consent form.
Completing an ABSS GIRO form for subscription fee deduction (applicable for the Financio Premium Plan).

- From now until 31 December 2018, business banking customers stand to receive S$88 cash credit when they process a minimum of S$10,000 in incoming funds collections via PayNow for three consecutive months.

- Maybank Singapore is waiving all transaction fees on PayNow until December 2019.

SMEs can up for PayNow via Maybank’s Business Internet Banking platform or with a paper form.

Malaysia Rice Bowl Startup Awards fetes nation’s best

Source: myNEF. From left: Dato' Husni Salleh, CEO, TERAJU, Lilyana Abdul Latiff, CEO, New Entrepreneurs Foundation (myNEF), Tuan YB Gobind Singh Deo, Minister of Communications & Multimedia, Malaysia; Datuk Yasmin Mahmood, CEO of MDEC at the press conference for the Malaysia Rice Bowl Startup Awards 2018

Winners for the Malaysia Rice Bowl Startup Awards 2018 have been announced. The awards recognise startups in the country that harness digital technology, and celebrate rising tech entrepreneurs in various categories of excellence ranging from retail, media, digital, tech, products, services and innovative campaigns to women and social enterprises.

YB Tuan Gobind Singh Deo, Minister of Communications and Multimedia commented, “I am extremely happy to hear that Malaysian startups are accelerating faster than ever, and we hope that they become a significant contributor to our nation’s GDP and growth, and also become a significant type of business that employs and cultivate cutting edge talent and become a key source of employment.”

Said Lilyana Abdul Latiff, CEO of New Entrepreneurs Foundation Malaysia (myNEF), the organisers: “With over 50 nominations for Founder of the Year, and over 70 nominations for Startup of the Year at this year’s Rice Bowl Startup Awards - I think Malaysia’s tech startup ecosystem has matured rapidly in the past three years. It is a testament to the developmental investments and programmes by the Malaysian government, private sector support and independent initiatives. For a modest market size, we should be on track to produce Malaysian-based unicorns* within the next few years.”

Winners include:

- Best Accelerator or Incubator Program: Malaysian Global Innovation and Creativity Centre Global Accelerator Program (MaGIC GAP) is a programme to accelerate global startups to be investment-ready in four months, and build a strong startup community in ASEAN.

- Best AI / Machine Learning Startup: Hyperlab automates sales and support for visionary enterprises with their conversational artificial intelligence (AI) and robotic process automation (RPA) technology.

- Best Business Automation Tool: RunCloud is a modern control panel to help web developers manage multiple cloud hosting and web deployments.

- Best Coworking Space: PAPER + TOAST is the first coworking space in Malaysia. It aims to serve as a one-stop community platform for talents, entrepreneurs and startups to get together.

- Best Digital Marketing Solution: SushiVid helps brands launch and manage influencer marketing campaigns through their content management software.

- Best e-Commerce Startup: Tripfez Travel offers Muslim-friendly travel solutions.

- Best Ecosystem Initiative: The Malaysia Digital Economy Corporation (MDEC) is the lead agency in driving the digital economy in Malaysia. MDEC’s implementations and efforts are centred on building awareness on digital economy, creating credible talents for the industry, and encouraging digital technology adoption among the people (rakyat) and businesses. 

- Best Fintech Startup: CurrenSeek is a platform for secure money-changing and remittances.

- Best FoodTech / AgriTech Startup: Stixfresh is a sticker that is placed on a fruit to prolong its shelf life. 

- Best HealthTech Startup: MEDKAD provides a medical benefits automation system for companies to efficiently manage their staff medical benefits.

- Best IoT Startup: JomParking makes parking payments quicker and more convenient.

- Best Life Helper: Vidi is a visual discovery platform that helps travellers book experiences for their next holiday.

- Best Logistics and Supply Chain Startup: Zoom is an on-demand delivery platform for e-commerce businesses that require last mile fulfillment.

- Best Newcomer: Dropee is a B2B marketplace that brings suppliers and retailers together.

- Founder of the Year: Lennise Ng is CEO of Dropee. Her life goal is to push humanity forward through merging traditional businesses with innovative technology solutions.

- Investor of the Year: Andrew Tan is a serial entrepreneur and an all rounder venture capitalist. He is now at helm of a venture capital firm and a private equity firm with a pool of funds totalling US$50 million.

- Startup Of The Year: Carsome is a Southeast Asian online used car platform.

- People’s Choice: 11Tune is a music solution platform that connects composers with users in clicks.

A number of winners were also TERAJU Superb winners: Tripfez Travels, MEDKAD, JomParking, and Dropee.

TERAJU was established as a strategic unit in the Prime Minister’s Department in Malaysia to lead, drive and coordinate the bumiputera** agenda as part of the National Transformation Plan. The Bumiputera Entrepreneurs Startup Scheme (SUPERB) provides grants of up to RM500,000 to support innovative and creative business ideas. The programme is open to bumiputera who aspire to be an entrepreneur or bumiputera companies operating for less than three years. As of January 2018, a total of RM79.79 million out of a pot of RM100 million had been allocated.

Under the Rice Bowl Startups Awards rules, startups are defined as companies which have been in operations for five years or less, must be established in Southeast Asia. National award winners will proceed to compete at the regional ASEAN Rice Bowl Startups Awards 2018 to be held in Bali, Indonesia, in December, which highlights model entrepreneurship and inspires a dynamic community of startup enthusiasts, serial entrepreneurs, policymakers and diverse mentors in tech innovation. 

Regional winners at the four-day ASEAN finale will benefit from partnership opportunities, media exposure, regional and global networking as well as funding from investors. They will go on to compete in the Global Startup Awards in 2019.

The Rice Bowl community consists of 3,372 alumni from 10 ASEAN countries and has seen US$108.4 million in pledged investments from 2015 to 2017. 

Organised by the New Entrepreneurs Foundation Malaysia (myNEF) and now into its fourth year, the Malaysia Rice Bowl Startup Awards is the platform for recognising young startups disrupting old processes and industries. The Malaysia Rice Bowl Startup Awards and ASEAN Rice Bowl Startup Awards are among myNEF’s signature programmes. 

MyNEF believes businesses can grow fast and be sustainable when they harness technology and knowledge. It plays a significant role in bridging industry players and the government, working closely with various agencies and government-related organisations to support existing and upcoming entrepreneur development programmes. The organisation believes that by celebrating startups, together they can solve the diverse local rice bowl issues faced by each country across Southeast Asia. This will ultimately benefit Malaysia and subsequently ASEAN as a region. 

Hashtags: #malaysiaricebowl, #ricebowlaward, #ricebowlstartupawards, #arbsa2018

*A unicorn startup is valued at more than US$1 billion and typically comes from the technology sector. Like unicorns, unicorn startups are fairly rare.

**Bumiputera are local people, including people where one of the parents is a Muslim Malay; natives of Sarawak, the Orang Asli and Sabah natives.

New collaborative platform aims to create business opportunities in the region

● Millet World Trading Post is a “co-working space+” concept that goes beyond physical co-working spaces and emphasises connectivity and collaboration

● The Millet World Trading Post platform dentifies opportunities and matches them with members in countries such as Singapore, Malaysia, the Philippines, China and India

● Two memoranda of understanding (MOUs) to be signed with Temasek Polytechnic* and Australian developer San Chuan

A new co-working space+, Millet World Trading Post (MWTP), has been rolled out to target small and medium sized enterprises (SMEs), micro businesses, and operators in the arts, culture and creative industry in Asia. 

Inspired by the trading posts of the past, the Trading Posts feature physical working spaces as well as a virtual network accessible through a mobile app for members across Asia. The Asia Pacific-wide online platform originating from Singapore connects the supply and demand dots by identifying opportunities and matching them with members across Southeast Asia, North and South Asia as well as Oceania. MWTP will also work on a membership subscription basis for access to a variety of spaces, ancillary facilities, events and activities.

“Beyond co-working spaces, MWTP’s greatest value-add is to be a business exchange platform for its members,” says Jimmy Soon, Executive Director of Millet Holdings, the parent company of MWTP. “We are confident that it is a scalable business model that will provide deal flows and create a virtuous cycle among small business owners, entrepreneurs and individuals. We hope to create 10,000 MWTP nodes in the region by 2020.”

Two MOUs were signed, with Temasek Polytechnic and with an Australian developer, San Chuan Australia. Soon said that Temasek Polytechnic will use MWTP to provide access to the region for current students and alumni members while San Chuan will give Millet Holdings "immediate access to the Australian market”.

Source: MWTP. From left: Victor Ng, Board Member of Millet Holdings; Jimmy Soon, Executive Director, Millet Holdings; Jorren Yang, Director, San Chuan Australia, part of the SANC Group of Companies; Annie Lim, Director, My Property Global.

Source: MWTP. Samuel Ang, Director, Innovation and Entrepreneurship Department of Temasek Polytechnic (left) with Soon (right) officiating the launch of MWTP node at Launchpad @ Temasek Polytechnic.

Dr Sharon Lim, Chairman Designate of MWTP added: “As business networking is the main pillar of MWTP’s value proposition, MWTP will facilitate a pipeline of activities such as workshops, talks and conferences on the latest innovations and trends, serving as a business exchange centre and a modern 'Trading Post’. This pipeline of interactive activities will support Singapore small and medium sized enterprises (SMEs) to ‘grow in a pack’ and create collaborative paths into new markets.”

The Trading Post concept has helped Millet secure interest of businesses such as IQkidz, which runs educational programmes for children; Malaysian chocolate maker 18C, and Garam Lada, an Indonesian bakery which caters to special dietary needs.

"Today, these small businesses from the region see an advantage in leveraging on the MWTP network here to create a footprint in Singapore. Likewise, local firms are excited about the prospect of using the MWTP platform to cross venture into regional markets. This kind of massive connectivity of Trading Posts and ecosystem of regional cross-ventures excites us,” said Dr Lim.

There will be seven MWTP “nodes” or venues in Singapore initially: at Temasek Polytechnic, 20 Temenggong Road, The Pavilion at Far East Square, 10 Square@Orchard Central, Northpoint City I and II, and Platform E by SIM.  The spaces currently range from 31 sq ft to 5,000 sq ft in size.  

MWTP nodes will soon roll out in key cities in the region as well, such as Manila, the Philippines; Kuala Lumpur and Malacca in Malaysia; Xiamen and Chengdu in China, as well as New Delhi, India. These will be followed by nodes in countries such as Australia, Laos and Vietnam in early 2019.

MWTP has found investors who are willing to turn their commercial spaces into Trading Posts. The earliest investor in MWTP’s business is Bobby Kok, MD, CJ Stamford Management. Kok will be driving the launch of MWTP in Manila.

Said Kok: “I was keen to invest in MWTP because I could see its potential to impact the lives of entrepreneurs and small business owners, and MWTP has the ability to scale up to serve the region as it gets more like-minded investors who want to make an impact with their investments.”

Fikra Labs to accelerate travel and tourism innovation

As part of UAE Innovation Month in February, which aims to strengthen the country's position as a global innovation hub and celebrate innovators across the UAE, four Abu Dhabi organisations – The Department of Culture and Tourism – Abu Dhabi, Miral Asset Management, the Abu Dhabi government organisation responsible building lifelong visitor value for the Emirate, Etihad Aviation Group and Abu Dhabi National Exhibitions Company (ADNEC) – supported by international financial centre Abu Dhabi Global Market (ADGM), have partnered with Wamda, an entrepreneurship empowerment platform, to launch a new acceleration programme called Fikra Labs.

Aimed at driving innovation and fostering entrepreneurship in the Abu Dhabi travel and tourism sector, the Fikra Labs acceleration programme will provide startups with mentorship opportunities and the chance to win a potential monetary investment. Held at the Etihad Innovation Center, the acceleration programme will take place across multiple phases and is open to startups across the MENA region. 

Following the initial registration and screening process, selected participants will take part in a four-week incubation process where they will tackle specific travel and tourism challenges set by the four partners. They will be mentored on their ideas throughout, before refining their business plans and developing prototypes in partnership with industry experts as well as major travel and tourism players Abu Dhabi.

Tech and innovation business club launched in Singapore

 Business club and ecosystem builder provides members access to seven strategic groups for collaboration

 Co-founded by entrepreneur Cheryl Lee and Golden Equator’s CEO Shirley Crystal Chua

 Mistletoe, a collective impact collective founded by renowned serial entrepreneur Taizo Son, will partner SPECTRUM

 First Mistletoe office in Asia outside of Japan based at SPECTRUM

Source: SPECTRUM. From left: Lee, Son, Chua.

SPECTRUM, a curated tech and innovation business club, has launched in Singapore. Co-founded by Cheryl Lee, a former Asia Managing Director at a private bank who also co-founded lifestyle group One Rochester, and Shirley Crystal Chua, Founder and CEO of Golden Equator, a group of Singapore businesses around finance, consulting, technology and innovation, the organisation aims to create a globally connected ecosystem by providing curated counsel, the right resources and strategic networks to businesses looking to springboard into Asia. 

SPECTRUM developed the tripartite partnership with Golden Equator and Mistletoe to bring together seven strategic groups – innovators, learning institutions, executors, backers, enablers, government agencies as well as ecosystem builders and partners to create synergised collaboration and pursue transformational initiatives. SPECTRUM’s international community and networks include key members from the seven strategic groups. 

These groups can empower fellow club members via access to enablement, validation, innovative ideas, capital, resources and strategic business networks. As an integral part of the offering, the SPECTRUM technology platform supercharges the connections between members both online and off. Beyond the human capital facilitating strategic business networks, the platform empowers members to collaborate and create true commercial value around the globe anytime and anywhere. 

The organisation has six focus sectors: financial, education, healthcare, fashion, food and housing. 

SPECTRUM will also welcome Mistletoe, a collective impact collective founded by Taizo Son, as a partner and one of its key resident members.

“Together with Golden Equator and Mistletoe, SPECTRUM wants to redefine how businesses can scale and grow. SPECTRUM curates an ecosystem that facilitates business-making across moments of a company’s growth journey, and we want to provide a powerful and accessible platform that is committed to empowering businesses of the future,” Lee said.

“Asia’s tremendous growth potential and momentum mean there are opportunities aplenty for companies old and new to innovate and succeed by being part of the right ecosystem with networks that could help grow their businesses in a meaningful way.”

As SPECTRUM’s key partner, Mistletoe will also base its first office in Asia outside of Japan at SPECTRUM. Taizo Son, its founder and a serial entrepreneur, was most recently appointed special advisor by Golden Equator.

“We decided to base Mistletoe’s first office in Asia outside of Japan at SPECTRUM because we are aligned in our strategic vision, along with Golden Equator, to revolutionise the business landscape and build an ecosystem through access, networks and connections,” Son said.

Since its launch, SPECTRUM has hosted a closed-door thought leadership roundtable discussion with technology and innovation industry leaders and a closed-door investor pitch session for its resident member C&R Healthcare’s eight Korean healthcare companies. The eight businesses connected with investors on potential investment, mentorship and guidance on strategic partnerships. 

Further into the year, SPECTRUM will develop more collaboration and partnership opportunities with government-level agencies in the region for its anchor member Golden Equator.

Chinese Business Hub opens in Dubai

Source: CBH. The Business Centre opening ceremony was attended by Dubai South’s Shoaib Alrahimi, VP, Business Park (second from left), Mohsen Ahmad, VP, Logistics District (right) and Justin Wilshaw, SVP Commercial (left) along with senior officials and association representatives. 

Chinese Business Hub (CBH), the UAE’s first dedicated business centre for new Chinese startup companies and small and medium sized enterprises (SMEs), has officially opened its headquarters in Dubai South Business Park.

CBH assists Chinese companies and entrepreneurs to set up a business presence in the UAE and provide full business setup services from start to finish, including fully furnished and equipped office space, procurement support, trade license and visa issuance and dedicated receptionists and conference facilities. The 30,000 sq ft business facility boasts a state-of-the-art working environment for its occupants.

HE Madam Li Ling Bing, Consulate General for China in Dubai, stated that she “hoped the Chinese Business Hub was a successful model for the long-term continued economic cooperation between the UAE and China”.

Key to the long-term success of the Chinese Business Hub is its strategic location in Dubai South, home to Dubai Expo 2020 and where Al Maktoum International Airport is situated. Dubai South is viewed as the new investment, business and transport epicentre of the UAE and is integral to maintaining Dubai’s position as a global destination for investment. There are currently 4,500 companies registered at Dubai South, making it the preferred gateway to the emerging markets of the Middle East, Africa and South Asia.

The opening of CBH represents Dubai South’s efforts in attracting more Chinese investment into Dubai and also boost the presence of Chinese businesses in the region. 

Dubai South VP – Business Park, Shoaib Alrahimi said: “We are thrilled to have CBH as part of our vibrant business community. Our commitment is to provide the necessary ground for such a great investment.” 

Alex Chen, GM, CBH, added, “At Chinese Business Hub, the strategic location and visionary planning of Dubai South has made it one of the most popular investment destinations for Chinese companies and we are very pleased to have our business HQ at the centre of the Emirate’s flagship masterplan city within a city. Dubai South is set to thrive and we expect our business centre and our clients to thrive with it. Dubai South really is the future of Dubai!”

Dubai South’s logistical, investment and strategic advantages for Chinese companies allow them to use Dubai as a bridge to access wider markets both regionally and internationally. China is the UAE’s largest trading partner, with bilateral trade between the two countries standing at US$64.4 billion in 2016. China’s top four banks also all have branches in Dubai.

A total of 13 Chinese cities are also connected to Dubai with more than 100 weekly flights, with the Dubai government’s announcement that all Chinese visitors to the UAE are granted visa’s upon arrival.

With 2,829 Chinese companies currently registered with the Dubai Chamber, a total of 4,500 Chinese-owned businesses in the city and Chinese nationals making up an estimated 10% of Dubai’s population, there remains many strong pull factors ensuring Chinese companies remain highly interested in the UAE markets.

Entrepreneurs supported in South Malaysia with BAHTERA

The Ministry of Finance Malaysia (MoF) has announced that the third series of BAHTERA will take place on 14 and 15 October at PERSADA Convention Centre, Johor Bahru.

In line with the government’s effort to empower the Bumiputera economy as proposed in the 11th Malaysia Plan, BAHTERA aims to bridge the information gap among entrepreneurs with smart business information, effective branding strategy and  technology. This year's BAHTERA is expected to be attended by over 6,000 visitors.

With the theme of Bumipreneurs of Tomorrow, the BAHTERA (Southern Edition) programme targets all entrepreneurs and Bumiputera business communities in Southern Malaysia and centres around scaling and growing current business provincially by giving participants appropriate access to the most proficient methods to bring their brands regionally and globally in addition to supporting their go-to-market strategy.

BAHTERA 2017 (Southern Edition) will provide participants with 27 master classes, 28 pocket talks, two boot camps, 27 programme owners, 40 agencies and 70 Johor exhibitors. Among the 27 programme owners that will be involved are MaGIC, Jaringan Usahawan Muda Perusahaan Sosial (JUMPS), Train Her Consultancy, FaStyleAsia, Querenda Initiate Global Resources, Koperasi 1Malaysia, Jooblii Commerce, Insken Teraju, Rik Sadiman, Persatuan Usahawan Internet, App Dolph, MyIPO, Leap Leadership Academy, PEKOMIK, Persatuan Usahawan Dan Industri ICT Bumiputera Malaysia NEF, NTP Technology Consultancy (UTM), Mindatrafik, PUGM Consultancy, JW, NH Revo Resources, Miesya Yunus Holding, Godbless Studio, MadResponse, Bahtera Fashion Apprentice and Program Only One with Irwan.

This programme will also joined by 30 speakers that include leadership guru Datuk Faridah Hanim, commonly known as Ibu Hanim, CEO of Magic; Ashran Dato’ Ghazi, COO of Koperasi 1Malaysia; Wan Darul, Athlete and Southeast Asia record holder for sprinting; Khairul Hafiz ‘SPEEDY’ Jantan, celebrity; Fattah Amin, Mira Filzah and Bront Palarae, Founder of Mary Jardin cosmetics products; Dr Maryam, and CEO of Rina Salleh Malaysia’s local clothing brand Rina Salleh.

Tech startups a key source of demand for real estate in APAC: JLL

Startups have emerged as a new category of urban occupiers, with more tech firms adopting unconventional formats such as coworking and industrial spaces, say JLL, a professional services firm that specialises in real estate and investment management.

Mobile devices, e-commerce and the rise of fintech have driven rapid growth of the technology sector in Asia Pacific, supporting occupier demand for both commercial office and business park space, the property specialist said. India and China in particular are rapidly adopting innovative mobile shopping, financial and payment platforms, reflected by the fact that the Asia Pacific region is home to seven of the 22 global fintech unicorns – startups valued at more than US$1 billion.

In China, there is increasing demand for coworking spaces from these fast-growing companies, with a new trend of coworking operators becoming anchor tenants in retail malls. The number of coworking spaces in China has grown rapidly: in 2016, there were more than 500 coworking sites in Shanghai and Beijing alone, compared to just a few in 2015.

“While there is a greater utilisation of coworking space, tech startups are a future source of Grade A office leasing demand and this is an opportunity for real estate investors and developers to create space that will meet this need,” says Dr Megan Walters, Head of Research, Asia Pacific at JLL.

“Technology companies continue seeking high quality office space to attract talent, and we’ve seen a significant number of tech occupiers upgrading their premises from serviced to proper offices, and from Grade B to Grade A space. Landlords are sitting up and taking notice of what this new category of occupier wants,” she adds.

Source: JLL website. Tech is hot in the Asia Pacific region, affecting demand for real estate.

Continued tech sector growth, however, faces a number of challenges. Recent data from JLL reveals that rising labour and operational costs, skills gaps, lack of supportive government policies, as well as real estate and infrastructural development remain the key tests to the burgeoning industry.

“High and rising labour and operating costs were frequently cited by our leasing experts as obstacles to future growth of the tech sector,” says Christopher Clausen, Associate Research Director, Asia Pacific at JLL. “High home prices and cost of living were also mentioned as key considerations in some markets, while a shortage of talent and skills gaps may hold back tech development in others.”

When searching for office space, tech firms look for reliable power supply, and room for future expansion within the same building. “The importance of a high-quality and stable power supply to tech companies cannot be overstated,” says Clausen. “Many tech firms continue to store large volumes of data onsite meaning they are housing a large number of server racks within their office.”

“Tech firms also want large floor plates that allow them flexibility in layout,” adds Clausen. “In addition, these companies are putting a priority on quality of life for their employees, so transport connectivity is another important factor.”

Interested?

More details are in JLL's Tech firm office location choice — where do they cluster and what building features do they want? report

View the video introducing findings from the Tech firm office location choice — where do they cluster and what building features do they want? report

Impact Hub members get access to Google for Entrepreneurs resources

Source: Impact Hub. Horowitz (left) with Sai (right).

Singapore’s largest coworking and entrepreneur-building community, Impact Hub, has announced that Google for Entrepreneurs is its first tech hub partner in Southeast Asia. Impact Hub Singapore members can now take advantage of Google for Entrepreneurs’ global network and resources, spanning dozens of coworking spaces and community programmes across 135 countries.

Impact Hub Singapore takes a holistic approach to encouraging startups by providing everything from coworking space to resources and tools early-stage businesses need to grow. The five year-old Impact Hub is home to Singapore’s largest community of creatives, entrepreneurs, and technologists. Member startups have raised more than US$180 million since Impact Hub Singapore opened its doors. Impact Hub Singapore comprises more than 650 entrepreneurs, professionals and freelancers, and has partnerships with 50 corporate, university and government-linked organisations.

At the launch, Grace Sai, CEO and Co-Founder, Impact Hub Singapore, said, “We are proud to be the first Google for Entrepreneurs tech hub partner in Southeast Asia, and we are looking forward to being the goto place for entrepreneurs, not only for local Singaporean companies, but also for startups from around the world that wish to build and scale their business in Singapore and Southeast Asia.”

Impact Hub Singapore’s range of services for startups include mentoring programmes, incubation, networking events, fundraising workshops, consultancy with experts, marketing support, and access to a global network of more than 100 Impact Hubs on five continents with over 20,000 Hubbers.

Bradley Horowitz, VP of Product Management, Google, who leads Google for Entrepreneurs globally, added, "Grace and her team are indispensable members of the Singapore startup community, and Impact Hub is an innovation leader not only for Singapore, but across greater Southeast Asia. Google for Entrepreneurs is all about providing the best of Google's resources to our global partner network. We can’t wait to collaborate with Impact Hub Singapore’s members.”

As members of the Google for Entrepreneurs network, Impact Hub Singapore and the greater Singapore startup community will have access to new resources including training and mentorship opportunities, plus access to:

● Google for Entrepreneurs global programmes: Hubbers can now apply for programmes like Google for Entrepreneurs Exchange, a series of week-long, vertically-specific global immersion programmes aimed at helping startups gain access into new markets and insights, and Google Demo Day, an event that brings together a diverse group of startups from around the world to showcase their technology and meet top investors and mentors in Silicon Valley in the US.

● A global network: Hubbers will join 50 other organisations with a global footprint in more than 135 countries, including six campuses, which are Google-owned and operated spaces for entrepreneurs. Impact Hub members are now connected to the Google for Entrepreneurs Passport programme, which allows members to access more than 20 Google partner spaces the world over, such as in Seoul, Korea.

● Google resources: Relevant startups will be eligible for Google product offers and have access to local and international mentorship from Google advisors.

Impact Hub Singapore, inspired by Google’s campus, will also provide more opportunities for collaboration:

● From August onwards, Impact Hub Singapore will open 30 free coworking seats per day in the coworking area be even more inclusive and welcoming to the tech-curious as well as to current and aspiring entrepreneurs.

Dubai Chamber launches Dubai Smartpreneur Competition for 2017

The Dubai Chamber of Commerce and Industry, in cooperation with the Smart Dubai Office has launched the second edition of the Dubai Smartpreneur Competition in line with the vision of HH Sheikh Mohammed bin Rashid Al Maktoum, UAE VP and PM, and Ruler of Dubai to transform Dubai into a smart city.

Source: Dubai Chamber. A panel discussion was held during the event, 
focusing on the progress achieved by the UAE government on smart 
city and innovation-focused initiatives, as well as the initiatives and 
engines are expected to drive sustainable growth in the future. Panelists 
included Essa Al Zaabi, Senior VP, Institutional Support Sector, Dubai 
Chamber, and General Coordinator of Tejar Dubai; Younus Al Nasser, 
Assistant Director, Smart Dubai Office and CEO of Dubai Data; Kushal 
Shah, Partner, Roland Berger Strategy Consultants and Founder of 
Dubai Angel Investors; and Raed Hafez, Chairman, ElGrocer. 

The competition gives entrepreneurs the opportunity to become part of Dubai’s transformation into a global benchmark smart city, supporting the vision of Smart Dubai to make Dubai the happiest city on earth through technology innovation. It is open to all entrepreneurs based in the UAE.

In his welcome address, HE Hisham Al Shirawi highlighted that the Dubai Smartpreneur Competition has become a key platform for recognising and developing innovative ideas that have the potential to improve the local business environment and the wider society. “The benefits of this competition go far beyond financial rewards. Participants also get a unique chance to network with industry influencers, interact with mentors, and gain valuable feedback needed to improve and grow their businesses,” he said.

HE Dr Aisha bin Bishr, Director General of the Smart Dubai Office, said: “The Smartpreneur Competition is an important annual event that demonstrates the positive impact we can have when we work together. I applaud Dubai Chamber for leading this impressive event.

“These bright young entrepreneurs are essential to the success of our smart city ambitions. The second cycle of (the) Smartpreneur competition will not only be an opportunity to discover the best products and services improving city experiences. It will be an engagement platform to support local entrepreneurs to actively contribute to and lead our citywide transformation.” 

Last year, Dubai Chamber received 350 innovative ideas during the first cycle of the Dubai Smartpreneur Competition. The competition this year will take place under the umbrella of Dubai Start Up Hub, the official online hub of the Dubai startup and technology ecosystem, managed by the Dubai Chamber in collaboration with IBM. Participants are required to submit their business ideas in line with Smart Dubai dimensions such as smart economy, smart living, smart mobility, smart governance, smart environment, and smart people.

The entries will be critiqued by a judging panel. Participants who qualify will attend two full-day workshops on sector-specific training, mentorship, building relationships, and developing a full business plan. The first three winners will get a cash prize and the opportunity to join the Tejar Dubai entrepreneurship development programme for a year to help them turn their business ideas into reality. The programme is designed to support nascent entrepreneurs by providing them with training, mentorship and access to new opportunities, helping them to take their first steps into the business world.

Asian VC investments remain steady in Q416

Following 2015’s peak funding levels, 2016 was a challenging year for venture capital (VC) investment across the globe, with decreases in both the number of deals and the total value of VC investment, according to Venture Pulse Q4 2016, a quarterly report on global VC trends published by KPMG Enterprise. 

Worldwide venture capital activity declined by 24% year over year, though total global venture capital investment remained substantial at US$127.4 billion*. After a strong start to 2016, investor optimism quickly turned cautious and purse strings tightened over the second half of the year. Market uncertainty was further fuelled by geopolitical upheavals, including the UK’s Brexit vote and the US presidential election.

“VCs are taking this respite, triggered by global uncertainties, to reassess their portfolio and focus on only seeking out top quality deals and also in helping their portfolio companies more actively in their next level of growth,” said Chia Tek Yew, Head of Financial Services Advisory at KPMG in Singapore. “As such, whilst there was an absence of megadeals, we continue to see significant interest and development in core sectors such as fintech, insuretech, healthtech and underlying technologies in cybersecurity, artificial intelligence and Internet of Things.”

Key 2016 highlights 

• Worldwide venture capital activity declined by 24% for the year, from 17,992 completed financings in 2015 to 13,665 in 2016. 

• Globally, total deal funding declined from $141 billion (2015) to $127 billion (2016). 

• Deal funding in Asia remained steady year over year at just over US$39 billion, despite a significant decrease in megadeals in the last quarter of the year. Overall the number of deals in Asia declined by 23.1%. 

• Venture-backed exits declined 26% year over year, although signs indicate 2017 may see a renewal in the initial public offering (IPO) market. 

• Worldwide corporate participation in VC continued to grow, currently sitting at 15% of all deals. 

• First-time financings to startups, a sure sign of investor caution, dropped 27.2% from a high of US$18 billion compared to US$13 billion in 2016.

Key Q416 highlights 

• Global VC deals activity in Q416 declined 31% compared to the same quarter last year, with just 2,809 deals – the lowest deal activity since Q411. 

• VC-backed companies raised just US$21.8 billion in Q4, the lowest level of deals funding since Q114. 

• While deal activity was down, median-deal sizes remained high across almost all funding categories worldwide, ranging from a median of US$30 million for Series D+ to a median of US$1.1 million for seed deals, showing that investors were willing to pay for the right opportunities. Seed funding is funding at a very early stage of the business, possibly before the product or service has been fully developed, while Series D+ refers to funding for a more mature company. Companies often end their rounds of funding at Series C, when they are successful but continue to need money to acquire others or to scale to the next level.

• The number of new unicorns (companies with a US$1 billion valuation) minted dropped to just six in Q416, the lowest level since the term 'unicorn' was coined in 2013.

In Asia, while the total number of deals dropped dramatically, the total amount of VC invested remained steady year over year at around US$39 billion – the only region to do so. However, Q416 ended on a low note, with 24.7% less investment and 29% fewer deals than the same quarter last year.

Despite a late year slump, investment in China was up year over year – reaching a record US$31 billion invested. This despite the number of deals dropping from 516 to just 300 between 2015 and 2016. India showed an almost opposite trend, with the number of deals remaining relatively high, while total VC invested dropped over 50% from US$8.2 billion to US$3.3 billion year over year.

“Even though some VCs may still stay on the sidelines to await clearer signs of improvements in the economy, several sectors in Singapore have managed to remain attractive,” said Chia. “Technology companies have been steadily receiving funding and with artificial intelligence and cognitive learning expected to transform everyday life and business, they will continue to be appealing in 2017.” 

*Data for the report provided by Pitchbook.

Startup Asia Women announces inaugural networking event in Singapore

Source: Startup Asia Women.

The newly-minted Startup Asia Women community, formed in December 2016, aims to bring together women who run or work in startups, who are planning to start or join startups, or simply would like to know more about startups.

The community aims to provide critical support and resources to women with an entrepreneurial mindset, and welcomes members who are at various stages of their startup pursuits. Startup Asia Women believes that this diverse background is a recipe for success, as it inspires new ideas, experiences and motivation.

Startup Asia Women's inaugural networking event will feature the founders of three female-founded startups – YuhWen Foong of Sushivid, an influencer marketing platform, headquartered in Malaysia; Ginny Ecklblad of Gorillaspace, a new startup aiming to disrupt the office rental market and Jacqueline Ye of Delegate.sg, semifinalists of Channel NewsAsia Startup Competition Season 4 in discussions around the theme of Thinking in design, and successful marketing startups. 

Men are welcome to attend.
 
Interested?

The networking event will be held on 17 January from 6:30pm to 9:15pm at 128 Prinsep Street, Impact Hub, Singapore. Tickets cost between S$6.50 and S$7.90. Register

71 SG launches overseas market access programmes for Singapore startups

Singapore startup 71 SG has launched programmes to help other local startups enter China. Supported by International Enterprise (IE) Singapore, 71 SG’s Start-up Development & Learning Programme (SDL) aims to help start-ups understand the new market swiftly by connecting them to potential customers, partners and investors.

The SDL provides overseas market access, market intelligence, networking and funding opportunities for Singapore startups through a five-day tech and business workshop. The company's target audience are digital professionals and entrepreneurs seeking opportunities in technology, business and investments in China.

The 71 SG value proposition is to allow startups to focus on their core business, while it handles the rest; from lodging to supply chain to government regulations. In China, 71 SG is based in Wuhan, which has a highly skilled talent pool and a great deal of support for a startup ecosystem from the government. Its SDL workshop in Wuhan includes:

• Meetings with representatives from different government bodies and institutions to understand local laws, rules and regulations 
• Connecting with MNCs and mentors that can help market and position products overseas 
• Links with angel and venture capital (VC) investors 
• Networking with successful companies in China 
• Translation services 

"As a local startup, we understand the difficulties of launching a company not only in Singapore but other markets as well. 71 SG aims to bridge the gap between local startups and investors, partners in China to open and widen opportunities for local small and medium sized enterprises (SMEs) that are looking to branch out. In fact, we are passionate about building a conducive ecosystem of startups that act as support group for our up-and-coming companies. We look forward to exciting times ahead and many fruitful partnerships for our clients,” said Eric Kng, Director of 71 SG.

The company has had a successful track record to date. When 71 SG co-organised its first pitch day in Wuhan in November 2016, three of the six Singapore startups it helped became finalists and received letters of interest from local VC investors as well as positive media attention. One such startup is Cryowerx, which is offering a smart vending machine. Besides liaising with the investors in China, 71 SG is also helping Cryowerx apply for intellectual property (IP) rights and patents as their next step into China.

For 2017, 71 SG plans to work towards expanding into Shanghai and Beijing as well as Thailand.

UOB uncovers misconceptions financing galore in Singapore SMB world

Source: UOB infographic. Statistics gathered from the Financing for Startups and Small Businesses Survey.

According to the Financing for Startups and Small Businesses Survey* by United Overseas Bank (UOB), the majority of startups and small businesses in Singapore do not understand fully the range of alternative funding options available for their early expansion needs. They are also unclear about how to employ most effectively these options which include venture capital, venture debt, and debt and equity crowdfunding.

Mervyn Koh, MD and Country Head of Business Banking, Singapore, UOB, said that funding is a key factor for business expansion and it is important that startups and small businesses are able to differentiate between the funding options that are available to help them scale up their businesses in the early stages of growth.

“While established companies are able to access funding through conventional methods such as bank loans and working capital, startups typically are not able to raise the funds needed as easily. This is because they are still developing their concepts, products and services into viable business models, and as such may not have consistent cash flow to qualify for traditional loans,” said Koh.

The startups and small businesses surveyed said that they did not know where to turn to obtain advice on the range of funding options available (65%). They also felt that the eligibility criteria for these options were unclear (62%) which made it difficult for them to know if they are eligible. These are in contrast to the straightforward manner of receiving guidance by banks on traditional financing methods.

As a result of their unfamiliarity with financing options, startups and small businesses indicated a preference to rely on the tried and tested funding sources, such as raising their own working capital (43%), government grants (38%) and government-assisted schemes** (40%), for their business expansion.

The survey also found that the respondents were unfamiliar with the distinctive features of each of the alternative funding options. For example, on venture debt, respondents thought that investors needed to be involved in making business decisions (34%). In fact, it is not required for this option. As for debt crowdfunding, one in four small businesses said that there was no interest payable on the crowdsourced funds. This is a misconception as funds raised through debt crowdfunding do attract an interest on the funded amount. In addition, 23% of businesses polled believed that they would have to give up equity in their business for the crowdsourced debt. In reality, debt crowdfunding does not involve giving up equity.

“Additional funding is a lifeline for startups and small businesses that often face the challenge of tight cash flow. However, we find that most of the time, they need more education on what these options are and how they can be used for their business. To understand better the best financing option for their business, they should seek professional advice, either from government bodies, accelerators or other organisations in the funding ecosystem such as venture capital firms and financial institutions. With a clear understanding of the various funding options available, they could realise their growth potential more quickly ,” said Koh.

 To meet the funding needs of startups and businesses across all growth stages, UOB, which banks one in every two small businesses in Singapore, offers end-to-end solutions including equity crowdfunding and venture debt through OurCrowd and InnoVen Capital respectively. UOB also provides mentorship and guidance to startups and small businesses on their business model and the various funding options available through its innovation lab, The FinLab. The bank has also trained its commercial bankers to provide clients with the most up-to-date information on alternative funding channels beyond traditional financing.

In addition, UOB is creating a “how-to” guide that explains the type of funding options available for startups and small businesses and how these can be easily accessed.

Interested?

Look for the guide on the UOB Asian Enterpriseswebsite. It will be available in December

View the complete Financing for Startups and Small Businesses Survey infographic (PDF)

*The survey was conducted by UOB in October and November 2016 among 250 Singapore-based companies with an annual turnover of under S$30 million. The objective was to understand if startups and small businesses understood the range of financing options available to them. 

**This refers to schemes such as SPRING’s Local Enterprise Financing Scheme.