Hyphen Partners’ Post

Time to wrap the week with these listicles of SEA startups who recently raised funding, Filipino startups making it big on the regional stage, and our weekly roundups of funding stories, insights, and analysis to gear you up for success in your fundraising journey. Check them out here: 1. Southeast Asia Startup Boom: From Fish Farming Tech to Metaverse Worlds This feature dives into funding news for SEA startups across various sectors like fintech, metaverse, green logistics, & more. https://lnkd.in/gCcJ4FAw 2. Ecosystem Roundup: ByteDance to Invest US$2.1B in Malaysia for AI Push | Singapore, Jakarta Top Startup Rankings Despite Funding Slowdown The region's hottest funding stories, insights, and analysis to gear you up for success in your fundraising journey. https://lnkd.in/giU-FRaD 3. See You in the Philippines: Why the Local Startup Ecosystem is Getting All the Attention Today The Philippines has seen "a surge of activity from multiple local conglomerates ... mirroring Indonesia’s trajectory in 2017-2019." https://lnkd.in/gJM9jdsm 4. Ecosystem Roundup: ByteDance to Cut 450 Jobs in Indonesia | OpenAI Closes in on US$3.4B in Annualized Revenue | BayaniPay Adds US$9.6M to Series A The region's hottest funding stories, insights, and analysis to gear you up for success in your fundraising journey. https://lnkd.in/gc-uaNfz #FundingNews #SEAEcosystem #Innovation #Entrepreneurship #PhilippinesStartups #SEAGrowth

What the hell happened in tech in 2023? You can now find out because our signature "Indonesia Tech Startup Report 2023" is OUT! My fave part is the B2B tech segment and here's why : - The report highlights the significant growth potential of Indonesia's B2B e-commerce market, which is expected to surge from $1.5 billion in 2018 to $30 billion by 2025, with an impressive compound annual growth rate (CAGR) of 50-55%. It underscores the shift in the business landscape towards B2B models that are broadly applicable across various industries. - The report points out key insights, particularly the leading role of manufacturing in Indonesia's GDP for 2023, the impact of B2B on Fast-Moving Consumer Goods (FMCG) influencing GDP growth in Q2 2023, and the importance of Fintech as an essential tool for financial inclusion. - Additionally, B2B's influence is noted for enabling Micro, Small, and Medium Enterprises (MSMEs) to streamline their operations through direct supplier connections, simplified supply chains, transparent pricing, and enhanced logistics. Shout out to Mandiri Capital and Xendit for supporting our report. Download your report for FREE here -> https://lnkd.in/gs3qdBQN #Startups #Indonesia #StartupReport #StartupEcosystem #VentureCapital #IndonesiaInvestment DS/X Ventures DailySocial.id - Indonesian Startup Media & Research PT. Mandiri Capital Indonesia (MCI) Xendit

🚀 🫵 Are you a Singapore FinTech company looking to expand your business in Malaysia but facing challenges or need advice on local industry insights? 📣 SFA is collaborating with Malaysia-based Venture Capital firms Artem Ventures and OSK Ventures International Berhad, and secondary partner 1337 Ventures to launch Project Tapir – supporting Singapore FinTechs in growing their business and entering the Malaysian market. 📈We are looking to shortlist promising Singapore FinTech companies for potential investment from Artem Ventures or OSK Ventures International Berhad. This includes companies in #Payments, #RegTech, #InsurTech, #AI, #Sustainability and climate-related tech, #Education, #Healthcare space, #Enterprise tech, and other emerging technologies. ✨Don’t miss this hard-to-come-by opportunity to break into the Malaysia market with the help of Artem Ventures or OSK Ventures International Berhad - Malaysia-based Venture Capital firms with deep expertise in the market! ✅Criteria for applying with Artem Ventures✅ 1. Companies under Seed to Series B funding stage 2. Ready product/service and achieved product-market fit in Singapore, initiating pilot or trial in Malaysia or having an already commercialized product or service 3. Revenue generating with a clear profitability strategy in the next 3 years 4. Aware of and able to measure the impact generated using common ESG and sustainability principles 5. Already or committed to setting up an office in Malaysia and hiring Malaysian employees. Hold-Co in Singapore is acceptable 6. Holds an active SFA membership ✅Criteria for applying with OSK Ventures International Berhad ✅ 1. Companies under Series A to C funding stage 2. Companies with at least USD 5million in ARR and >15% Q-o-Q growth with clear path to profitability in 3 years 3. Able to commit to ESG principles and track relevant ESG metrics on a quarterly basis 4. Preference for startups with or has plans to setup engineering and/or support office in Malaysia 5. Can be Malaysia or Singapore domiciled 6. Holds an active SFA membership 🤝 📬 Applications are open till 15 March 2024. Apply at https://lnkd.in/gGET7mXv for Artem Ventures and at https://lnkd.in/g_UsSigp for OSK Ventures International Berhad. #FinTech #BusinessExpansion #Malaysia #VentureCapital Shadab Taiyabi | Khai Lin Sng | Chye Kit Chionh | Scott Krivokopich | Adrian Chng | Bernard Chan| Matthew Lovatt | Pauline Sim | Shi Mei Chin | Tan Chun Hao | Reuben Lim | Shakeel Rashid | Swati Sodhani | Elfarina Roszaini | Adeline, Bee Yen Lau (ACII) | Sylvia Saw McKaige | Gwendolyn Loh | Nicole Law | Christine SW Chua | Allan Kong

𝐓𝐡𝐞 𝐑𝐢𝐬𝐞 𝐨𝐟 𝐓𝐞𝐜𝐡 𝐇𝐮𝐛𝐬 𝐚𝐧𝐝 𝐄𝐦𝐞𝐫𝐠𝐢𝐧𝐠 𝐌𝐚𝐫𝐤𝐞𝐭𝐬 𝐢𝐧 𝐒𝐄𝐀 Asia is home to some of the world's most innovative tech hubs. Cities like #Singapore, #Jakarta, and #HoChiMinhCity are leading the charge in technological advancements and startup growth. During my travels, I was particularly impressed by the #entrepreneurial spirit in Vietnam. The strong presence of #femalefounders and innovations in #technology, #healthcare #fintech, and #B2C businesses stood out. Vietnam's startup ecosystem has seen significant growth, with over 3,800 active startups and $1.5 billion in venture capital investment in 2022 (Vietnam Tech Investment Report 2022 by Do Ventures). However, what I found quite surprising is the limited amount of ventures exploring the #impact space, like #climate-tech or #AgTech. There seems to be a need for more education that investing in #Impact and #Sustainability can have the same returns as traditional ventures. 𝐖𝐡𝐢𝐜𝐡 𝐭𝐞𝐜𝐡 𝐡𝐮𝐛 𝐨𝐫 𝐞𝐦𝐞𝐫𝐠𝐢𝐧𝐠 𝐦𝐚𝐫𝐤𝐞𝐭 𝐢𝐧 𝐒𝐨𝐮𝐭𝐡𝐞𝐚𝐬𝐭 𝐀𝐬𝐢𝐚 𝐝𝐨 𝐲𝐨𝐮 𝐭𝐡𝐢𝐧𝐤 𝐡𝐨𝐥𝐝𝐬 𝐭𝐡𝐞 𝐦𝐨𝐬𝐭 𝐩𝐫𝐨𝐦𝐢𝐬𝐞? 𝐀𝐧𝐝 𝐰𝐡𝐚𝐭 𝐚𝐫𝐞 𝐈𝐦𝐩𝐚𝐜𝐭-𝐟𝐨𝐜𝐮𝐬𝐞𝐝 𝐯𝐞𝐧𝐭𝐮𝐫𝐞𝐬 𝐰𝐞 𝐬𝐡𝐨𝐮𝐥𝐝 𝐤𝐧𝐨𝐰 𝐚𝐛𝐨𝐮𝐭? 𝐏𝐥𝐞𝐚𝐬𝐞 𝐚𝐝𝐝 𝐲𝐨𝐮𝐫 𝐜𝐨𝐦𝐦𝐞𝐧𝐭𝐬 𝐛𝐞𝐥𝐨𝐰! #TechHubs #EmergingMarkets #SEA #Innovation #Startups #Investment Singapore Economic Development Board (EDB) Beacon Fund Cartier Women's Initiative Tech in Asia Impact Investment Exchange (IIX)

Is Indonesia's tech scene in trouble? With 280mn people (250m Muslim) and 13 tech unicorns (firms valued at $1bn+), it is the prize market in Southeast Asia. What's it like in your region/ country? What's it like for tech startups and the VC world there? Excerpts from a recent article below (link in comments): “Indonesia’s technology sector has just entered a consolidation phase, marked by the decline in the number of players because many did not survive due to competition... After this phase is over, the surviving ones are set to enjoy huge profits,” Mr Wijayanto, who was an economic adviser to Indonesia’s former vice-president Jusuf Kalla, told The Straits Times. “The surviving companies must do efficiency drives, cut operating costs, end cash burning,” Mr Wijayanto stressed. “Investors are now less concerned about companies’ valuation and more concerned about profitability.”  “The prize of winning the Indonesia market is so big. They (foreign tech companies) are making Indonesia the last battleground in South-east Asia and using the ammunition they have collected elsewhere to rule the Indonesia market,” said Mr Henry. Jakarta-based East Ventures, one of Indonesia’s leading venture capital firms, told ST in an e-mail reply that the country’s digital sector is entering a new cycle, after start-up valuations rose and reached their peak between 2020 and 2021.  “In 2022 to 2023, we entered a new phase... the entire technology ecosystem globally is facing pressure,” it added. “Investors are becoming increasingly careful in providing funding. However, it is always worth remembering that money is still available for good companies,” it said. #startups #VC #angels #hasanvc

🔵🔴🟢 𝐀𝐒𝐄𝐀𝐍 𝐓𝐞𝐜𝐡 𝐄𝐜𝐨𝐬𝐲𝐬𝐭𝐞𝐦: 𝐅𝐢𝐧𝐭𝐞𝐜𝐡 𝐑𝐢𝐬𝐞𝐬, 𝐄-𝐜𝐨𝐦𝐦𝐞𝐫𝐜𝐞 𝐂𝐨𝐨𝐥𝐬 𝐢𝐧 𝐇𝟏 𝟐𝟎𝟐𝟒 𝐅𝐮𝐧𝐝𝐢𝐧𝐠 𝐑𝐨𝐥𝐥𝐞𝐫𝐜𝐨𝐚𝐬𝐭𝐞𝐫 𝑘𝑒𝑦 𝑓𝑖𝑛𝑑𝑖𝑛𝑔𝑠 𝑖𝑛𝑐𝑙𝑢𝑑𝑒: 🔰 Overall venture funding in ASEAN declined 19.7% in H1 2024 compared to H1 2023. 🔰 Deal count in ASEAN decreased by 17.1% in H1 2024 compared to H1 2023. 🔰 Series A deals saw the least moderation year-over-year in H1 2024. 🔰 Seed stage valuations in Singapore declined 16% to $6.6 million in H1 2024. 🔰 Indonesia's Series A valuations dropped 38% to $26.1 million in H1 2024. 🔰 E-commerce funding decreased 33.3% in H1 2024 compared to H1 2023. 🔰 Fintech deal count increased by 12% in H1 2024, reaching 84 deals. 🔰 SaaS deal count declined 59.7% in H1 2024, with only 29 deals. 🔰 Fintech attracted 36% of total capital invested in H1 2024. 🔰 Web3 funding surged, accounting for 10% of total capital invested in H1 2024. 🔰 Singapore remained the most active ecosystem in Southeast Asia. 🔰 Thailand saw a 352% increase in Series C+ valuations, reaching $1.75 billion. 🔰 E-commerce Series C+ deal sizes decreased by 69% in H1 2024. 🔰 Fintech Seed stage valuations decreased 17% to $7.7 million in H1 2024. 🔰 SaaS Series A valuations increased 6% to $26.4 million in H1 2024. 🔔 𝐡𝐢𝐭 𝐭𝐡𝐞 𝐟𝐨𝐥𝐥𝐨𝐰 𝐛𝐮𝐭𝐭𝐨𝐧 𝐨𝐧 Tam Luong 🇻🇳 𝐭𝐨 𝐠𝐞𝐭 𝐦𝐨𝐫𝐞 𝐟𝐮𝐭𝐮𝐫𝐞 𝐮𝐩𝐝𝐚𝐭𝐞𝐬 #ASEANTech #VentureCapital #StartupFunding #Fintech #Ecommerce #SaaS #Web3 #SingaporeTech #SeedFunding #SeriesA #UnicornValuations #SoutheastAsia #TechEcosystem #InvestmentTrends #StartupValuations #ASEANInnovation #TechFunding #EmergingMarkets #VCInsights #TechInvestment

𝐌𝐚𝐥𝐚𝐲𝐬𝐢𝐚: 𝐑𝐞𝐠𝐢𝐨𝐧𝐚𝐥 𝐋𝐚𝐮𝐧𝐜𝐡 𝐏𝐚𝐝? Smaller markets with big dreams of curating a sustainable start-up space may find themselves in a holding pattern this year as investors test the waters. Malaysia’s government is promoting it as an ideal launch pad for tech start-ups that can get a leg up from its educated, multilingual population and developed infrastructure before braving Southeast Asia’s wider 600 million-strong market. “Malaysia’s strategic role is to provide the soft landing ground for foreign start-ups to build their regional operations, familiarise themselves with the cultural nuances of the Asean market, and test their products’ market fit before venturing to the next country,” Eric Lee, from Digital Districts, an Asean tech ecosystem builder, told This Week in Asia. Capital Kuala Lumpur and the states of Penang, Johor, Sabah and Sarawak are unique testbeds, he said, with their differing levels of urbanisation, languages, and development mirroring those in neighbouring member states of the Association of Southeast Asian Nations such as Indonesia, the Philippines, and Thailand. “This allows foreign start-ups to validate their offerings in Malaysia first, and gain invaluable cultural insights that would increase their chances of successfully entering the next Asean country,” Lee said. In addition, the recent weakness in the ringgit means foreign start-ups can make their money stretch further and manage their burn-rate more efficiently, while enjoying comparable office space, English-speaking local talent, and digital services as they would in Singapore for half the price – or more. But the main challenge facing start-ups in Malaysia is the complex government structures at both federal and state levels. “As long as the foreign start-up does not require any licences, approvals, or funding from the government or regulators, they should be good to go,” Lee said. “If they do, then they will encounter a lot of red tape and bureaucracy that could set back their expansion plans.” https://lnkd.in/dK2c_huw

"According to the survey results, 44% of GenAI startups are based in Singapore, followed by Vietnam (27%), Indonesia (13%), Thailand (7%), Malaysia (6%), and the Philippines (3%)..." "Vietnam is a surprise but not a surprise. Anyone in a GenAI space today would understand that Vietnam is the epicentre of GenAI. The folks there, they just build GenAI and stuff for fun. They don’t even think about a business plan. They don’t wait for the stars to align, they just build..." https://lnkd.in/g_XsKWHr #singapore #vietnam #indonesia #thailand #malaysia #philippines #genai #AI #techstartups

AwanTunai's $25 milion series B is set to fuel Indonesia's digital economy. #AwanTunai, a pioneering #FinTech startup, has successfully clinched $27.5 million in Series B funding, surpassing its initial $25 million goal. This Jakarta-based innovator is making waves with its point-of-sale financing solutions designed to empower the nation's wholesalers and micro-merchants. The funding round saw significant contributions from global and impact-focused investors, including Norfund, MUFG Innovation Partners (MUIP), and OP Finnfund. This diverse investor lineup underscores the global confidence in AwanTunai's mission and its market potential.AwanTunai's core mission is to digitize the traditional cash transactions that dominate Indonesia's economy. By providing accessible financing and integrated inventory management solutions, AwanTunai is setting the stage for a digital revolution in local commerce. With the new influx of funds, AwanTunai aims to expand its lending capital facilities and support over $2 billion of annualized inventory purchase financing by year-end. This ambitious goal reflects the startup's commitment to scaling its impact and fostering economic growth. The company's efforts are pivotal in transitioning Indonesia’s economy from cash-based to digital, offering vast opportunities for local businesses to thrive in the digital age. This shift not only promotes financial inclusion but also opens up new avenues for economic development. With AwanTunai already achieving #EBITDA positivity and nearing profitability, the startup showcases a sustainable business model that’s attractive to investors. This financial health, coupled with ongoing investor interest, may lead to further expansion of the funding round, propelling AwanTunai towards greater achievements. Want to stay up to date with the market? Here my newsletter: - Linkedin: https://t.ly/s541W   - Substack: https://lnkd.in/dzfGJzmW

Are Indonesian #startups struggling to compete against their regional rivals? 1. AC Ventures and Bain & Company report that #VentureCapital investment in #Indonesia declined 70% to 80% on-year in 2023 as VCs “reacted to a deteriorating global macro environment driven by geopolitical tensions, rapidly rising interest rates and weaker consumer and business sentiment”, placing more pressure on local companies to innovate, stop burning cash, and turn profitable. 2. Furthermore, Indonesian unicorns GoTo Group and Bukalapak, regarded as barometers of the health of the country's #technology sector, have seen their valuations decline this year, by 55% and 33% respectively. The Indonesia Stock Exchange’s composite index, on the other hand declined around 4% in 2024. 3. Some attribute Indonesian tech companies' poor performance to "tough competition from their larger, regional rivals" such as NYSE-listed Sea and Nasdaq-listed Grab, who have "regional reach and more aggressive tactics", and whose foreign listings give them "access to a wider pool of funding". Others say it is because Indonesian tech companies are slower to innovate. 4. Whatever the reason, the struggles of these early Indonesian unicorns highlight broader issues within the country’s startup ecosystem, where many local tech firms failed because of "a reliance on imitative services, lack of innovation, and misalignment with market demand"; and where a lack of funding has caused Indonesian tech companies to "reconsider their options, including selling their businesses". 5. It's not all gloom and doom. East Ventures believes that, although investors are becoming increasingly careful in writing cheques, "money is still available for good companies". Perhaps the best quote comes from Nicko Widjaja of BRI Ventures, who says: “success is not going to happen instantly… it takes 10 years for a durian tree to bear fruit. That is why it is called the king of fruits". All comments welcome. I have included, in the comments below, links to ACV and Bain’s report, as well as a selection of relevant articles by The Business Times, e27 (Optimatic), Nikkei Asia, and The Straits Times. Photo of Bundaran HI in Central Jakarta, by me.