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100 exhibiting startups to discover at TIA Jakarta 2017

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In less than two months, Tech in Asia would be welcoming its biggest crop of exhibiting startups – all 280 of them at our sixth edition of Tech in Asia Jakarta this coming November 1 & 2.

From increased visibility and exposure, to potential funding, leads, having your startup’s details sent to all attending investors and more, there’s a plethora of opportunities waiting for you to unlock at Bootstrap Alley.

Booth spaces are filling up fast, so if you’re a fledgling startup ready to showcase your product to 6,000 attendees, apply for your booth before all slots are taken!


And now – a peek into our first 100 exhibiting startups:

Ad Tech

Analytics

Artificial Intelligence

Clean Tech

Cloud Computing

Crowd Sourcing

Design

E-Commerce

Education

Enterprise Solution

Fintech

Food Tech

General Internet

General Software

Health

Lifestyle

Logistics & Transportation

Media

Navigation

Productivity Software

Professional Services

Real Estate

Search & Discovery

Sharing Economy

Social Networking & Communication

Software as a Service (SaaS)

Travel

Others


 

Bookmarked some of them already? Now it’s time to meet them face-to-face and find out more about their product and team! All you need to do is get your conference ticket: on top of checking out the exhibiting startups, you’ll also get access to our 7 content stages and other networking opportunities.

To top it off, here’s a sweet deal – take 15 percent off (code: tiajkt15) when you purchase your pass by 22 September, 11:59PM (GMT +7).

This post 100 exhibiting startups to discover at TIA Jakarta 2017 appeared first on Tech in Asia.


Brief: Amazon plots China fightback with hiring spree

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Jeff Bezos, Amazon

Jeff Bezos. Photo credit: Amazon.

The news (from South China Morning Post):

  • Amazon is on a hiring spree in China, listing around 400 Chinese-based openings on its own careers website plus more than 900 on its LinkedIn.
  • The listings, which include senior executive roles, cover the shopping business, content, hardware, Amazon Web Services, and expansion of Amazon Lending.
  • The move might signal that Amazon, which first launched in China in 2004, is looking to grow its marketplace alongside possible new launches in China for its personal assistant Alexa and the Amazon Prime streaming service.

Why it matters:

  • Although Amazon is no stranger to China, Chinese shoppers are not familiar with Amazon. Jeff Bezos’ company accounted for only 0.8 percent of China’s trillion-dollar online shopping industry in 2016, according to iResearch.
  • The hiring suggests Amazon is seeking to revitalize its Chinese business, which has long struggled in the face of homegrown Alibaba and JD.
  • The job listings come after Amazon opened a new office in Hangzhou, hometown of Jack Ma’s Alibaba. Plus Amazon has already been recruiting a Chinese content team to negotiate deals for movies and TV shows.

This post Brief: Amazon plots China fightback with hiring spree appeared first on Tech in Asia.

Tokopedia’s ewallet freezes some features pending license approval

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Indonesia’s online marketplace Tokopedia is putting some of its TokoCash ewallet functions on hold, the firm said in a note to users yesterday.

TokoCash users can still spend the credit they have in their wallet, but starting tomorrow at midnight, can no longer top up.

It’s a roadblock in Tokopedia’s journey to expand the functionality of its ewallet beyond its own platform. The unicorn startup recently raised a massive US$1.1 billion investment led by Alibaba and has added payments-related features.

Tokopedia says the ewallet freeze is temporary, as the company waits for licenses that need to be granted by the central bank, Bank of Indonesia (BI).

“Tokopedia wants everyone to be able to use TokoCash, including outside of the Tokopedia platform,” the note reads. “Tokopedia is in the process of applying for the electronic money license from the Bank of Indonesia.”

The firm hasn’t responded to our request for comment.

A spokesperson from the Indonesian Fintech Association tells Tech in Asia that there is a backlog in application approvals at BI, as the bank is dealing with surging demand not only for electronic money licenses but also those needed to operate ewallets and payment gateways.

This means more startups could be limited in their ability to roll out mobile payments and transaction features.

Last year, fintech for the first time replaced ecommerce as the most-funded startup vertical in Southeast Asia. Developing more efficient payments infrastructure and app-based payments to steer countries like Indonesia away from cash poses an immense opportunity.

This post Tokopedia’s ewallet freezes some features pending license approval appeared first on Tech in Asia.

Nets makes its pitch to upgrade Singapore’s epayments landscape

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After introducing QR code payments at Singapore’s Tanjong Pagar hawker center last weekend, Nets today revealed more details of its plans for upgrading the city-state’s epayments infrastructure.

The payments company’s new NetsPay solution allows users to make payments directly from their bank accounts, either by scanning a QR code using their smartphone, or by contactless swipe if their device is near-field communications (NFC) enabled.

Speaking at a media briefing today, Nets CEO Jeffrey Goh said that users of mobile wallets provided by Singapore’s three largest consumer banks will be able to use the Nets contactless and QR code systems. The company is also introducing its own NetsPay Wallet that will allow cards from different banks to be contained in a single mobile wallet. Besides making contactless and QR code payments within Singapore, NetsPay Wallet users will also be able to use the app in certain other countries, including China.

Cashless hawkers

Following the Tanjong Pagar launch, the company will roll out Nets QR and contactless payments to more food stalls, restaurants, and small merchants in the coming months. Nets aims to be offering payment by QR code in 30 of the country’s hawker centers by the end of the year, according to the company’s deputy head of business services Alvin Teck.

While QR code payments will not require the installation of card terminals and related equipment, Nets will provide the infrastructure for free – for the next three years – to any hawkers that decide to offer additional card-based payment options.

The QR code and NFC payments will also be rolled out in restaurants – with “pay-at-table” a possibility for establishments with the right point-of-sale set-up – school canteens, vending machines, and car parks. Nets QR will also be made available to the approximately 1,000 internet stores that already accept money through Nets’ online payments gateway, allowing web users to pay by QR code while surfing the internet.

In terms of contactless card and NFC device transactions, Nets is hoping to have 60,000 of its 100,000 acceptance points throughout the country able to handle such payment methods by the end of the year.

Into the fray

Since Singapore Prime Minister Lee Hsien Loong highlighted a unified epayments system as one of the country’s key objectives in his National Day Rally speech last month, several companies have taken up the challenge.

Razer published its proposal last week, to mixed reception. Grab aims to have its QR payments system available at 1,000 hawker stalls and small merchants by this year’s fourth quarter. Carousell has offered its hand in collaboration, while payments giant PayPal is also keen to get more Singaporeans going cashless.

Goh expressed mild scepticism about proposals claiming that rapid rollouts in a matter of months are possible, suggesting that Nets has an advantage in already operating an extensive payments network that handles transactions and settlement for thousands of merchants.

Nevertheless, Goh said that Nets would welcome collaboration with any partners and would participate in alternative proposals, so long as the fundamental criterion – that a new system should be easier than paying cash – is met.

“We’re not here to compete. We believe whoever can offer the best user experience will win,” he said. “Whether we are competing with them or not, we want to help, and we all want to make an epayments system that works. So if Razer has a wallet that’s successful, will we stop them from using our QR codes? No.”

This post Nets makes its pitch to upgrade Singapore’s epayments landscape appeared first on Tech in Asia.

Smart vending machine startup announces ICO to enable cashless payments in Vietnam

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A Dropfoods smart vending machine in Vietnam.

A Dropfoods smart vending machine in Vietnam. Photo credit: Sugar Ventures.

Dropfoods operates an army of smart vending machines in Vietnam. The company, which is backed by Singapore-based venture builder Sugar Ventures, announced today it plans to raise US$9 million in an Initial Coin Offering, issuing its own tokens called Dropcoins.

The ICO is notable because Dropfoods’ business is not based on the blockchain digital ledger technology. In addition, it is only open to accredited investors.

Dropfoods combines physical vending machines selling food and drinks, and a mobile app to enable cashless transactions. The digital wallet connected to the machines allows users to buy products, top up their mobile credit, pay bills, and transfer money to other users.

The startup says it will use the funds raised from its ICO to install 1,000 new vending machines. It claims to have machines in over 40 locations in Vietnam at the moment.

Dropcoins will be used for purchases and transactions on the machines. The firm also plans to allow conversion of the tokens into fiat currency, according to the aftermarket coin value exchange rate. The vision is to enable cross-border transactions and digital remittance through physical terminals, which are easily accessible by people who don’t have bank accounts.

The Vietnamese government, in the meantime, is currently assessing cryptocurrencies with a view to forming a regulatory framework for them by next year.

This post Smart vending machine startup announces ICO to enable cashless payments in Vietnam appeared first on Tech in Asia.

Video: Singapore gets into the swing of phone payments

Video: China tests self-driving bus

Asia pre-order dates, prices for the iPhone X, iPhone 8, and Apple Watch Series 3

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If you’ve been up for more than five minutes today, you’ve probably already been bombarded by reporting on Apple’s latest mobile products: its yearly iPhone upgrade (the iPhone 8), a more advanced and more expensive phone (the iPhone X), and a new version of its industry-leading smartwatch (the Apple Watch Series 3). So let’s get to the important question: when will these be available in your neck of the woods?

Apple actually didn’t announce many specifics during its event this time around, but thankfully most of the details are on its website. Most websites don’t specific ship dates, but if the pre-order date is the same as the US, it’s safe to assume the shipping dates will be similar as well.

None of the new products are listed yet on Apple’s Indonesia site, but here’s what we found for many other countries.

iPhone X

Singapore: pre-orders start October 27 at 3:01pm shipping November 3. From S$1,648 (US$1,223).
China: pre-orders start October 27 at 3:01pm. From RMB 8388 (US$1,283).
Hong Kong: pre-orders start October 27 at 3:01pm. From HK$8,588 (US$1,099).
Taiwan: pre-orders start October 27 at 3:01pm. From NT$35,900 (US$1,195).
Japan: pre-orders start October 27 at 4:01pm. From ¥112,800 (US$1,023).
India: pre-orders start October 27. From INR 89,000 (US$1.392).
Thailand: coming at some point, but no dates or pricing announced.
Korea: coming at some point, but no dates or pricing announced.
Malaysia: coming at some point, but no dates or pricing announced.
Philippines: coming at some point, but no dates or pricing announced.

iPhone 8/8Plus

Singapore: pre-orders start September 15 at 3:01pm. From S$1,148 (US$852).
China: pre-orders start September 15 at 3:01pm. From RMB 5888 (US$900).
Hong Kong: pre-orders start September 15 at 3:01pm. From HK$5,988 (US$766).
Taiwan: pre-orders start September 15 at 3:01pm. From NT$25,500 (US$849).
Japan: pre-orders start September 15 at 4:01pm. From ¥78,800 (US$714).
India: release date September 29. From INR 64,000 (US$1,001).
Thailand: coming at some point, but no dates or pricing announced.
Korea: coming at some point, but no dates or pricing announced.
Malaysia: coming at some point, but no dates or pricing announced.
Philippines: coming at some point, but no dates or pricing announced.

Apple Watch Series 3

Apple Watch Series 3 cellular services will only be available in two Asian countries at launch: China (China Unicom) and Japan (au, DOCOMO, and SoftBank). Two more Chinese carriers (China Telecom and China Mobile) are coming “later in the year” but Apple didn’t announce anything specific about cellular support for the watch in other Asian countries.

Singapore: pre-orders start September 15 at 3:01pm. From S$498 (US$370).
China: pre-orders start September 15. From RMB 2588 (US$396).
Hong Kong: pre-orders start September 15. From HK$2,688 (US$344).
Taiwan: pre-orders start September 15. From NT$10,900 (US$363).
Japan: pre-orders start September 15. From ¥36,800 (US$333).
India: coming at some point, but no dates or pricing announced.
Thailand: pre-orders start September 15. From ฿11,900 (US$359).
Korea: coming at some point, but no dates or pricing announced.
Malaysia: coming at some point, but no dates or pricing announced.
Philippines: coming at some point, but no dates or pricing announced.

This post Asia pre-order dates, prices for the iPhone X, iPhone 8, and Apple Watch Series 3 appeared first on Tech in Asia.


‘Airbnb for satellite antennae’ lifts off with $7.3m funding from Airbus and Sony

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Infostellar’s co-founders – COO Kazuo Ishigame (L), CEO Naomi Kurahara (M), and Toshio Totsuka (R). Photo credit: Infostellar.

Japanese commercial space startup Infostellar has just closed a series A fundraising worth US$7.3 million. Airbus Ventures led the round, with Weru Investment, D4V, and Sony Innovation Fund also taking part. Additional investment came from existing Infostellar backers 500 Startups Japan and FreakOut Holdings.

“When we first met [co-founders] Kurahara-san and Ishigame-san, all they had was a slide deck and a crazy idea to build an ‘Airbnb for satellite antennas’,” James Riney, head partner at 500 Startups Japan, tells Tech in Asia.  “It’s amazing to see how far they’ve come.”

That “crazy idea” was enough to win Tech in Asia‘s Tour of Japan pitch contest for Infostellar co-founders Naomi Kurahara – now the company’s CEO – and Kazuo Ishigame – now COO – last year.

There is a major disconnect between satellite operators on the one hand, and antenna holders on the other.

The space exploration industry is diversifying, with private companies like Elon Musk’s SpaceX treading into territory that was previously the preserve of government-funded national agencies. A whole startup scene has sprouted around building satellites, as well as antennae back here on Earth, that can be used by third parties for an increasingly wide range of research and communications purposes.

Tokyo-based Infostellar is riding this wave, though it isn’t building satellites or launch vehicles. In fact, it remains very much Earth-bound – for the time being, at least. But its team of 11 – comprising software developers, radio engineers, and compliance experts navigating a complex web of telecom and airspace regulations – have their eyes turned squarely skyward.

Cosmic inefficiency

Satellites orbit Earth several times a day and typically pair with a single antenna located on the planet’s surface to transmit information. This means that there is only a short window during a satellite’s circumnavigation when it is in range of its partner antenna. Often, this is a matter of only about 10 minutes for each orbit a satellite completes – so for one that can do four orbits per day, there’s a maximum of around 40 minutes’ communication possible in a total 24 hour period. For much of the rest of the time, the antenna remains unused.

This is where Infostellar wants to step in. It has developed a cloud-based satellite antenna sharing platform – named StellarStation – which connects satellite operators with antenna operators around the world. This way, free time at idle antennae located at different points on Earth can be shared in order to increase the overall communication period between orbiting satellites and the surface.  

StellarStation is a cloud-based platform that connects satellite operators with idle antennae. Image credit: Infostellar.

“At the moment, there is a major disconnect between satellite operators on the one hand, and antenna holders on the other, because each is working with different protocols and modulation types,” Ishigame tells Tech in Asia. “We provide processing and matching so that satellite operators and antenna holders using different protocols can connect with one another.”

Infostellar charges satellite operators by the hour while communication channels are open. It shares these revenues with the antenna holders. This means that antenna owners open new income streams and increase their revenue overall, while the satellite operators get access to additional communication channels at a substantially lower rate than if they had to sign contracts with multiple antenna holders.

Aerospace, IP expertise

For a space-focused startup like Infostellar, the advantages of having a shareholder like Airbus on board are pretty clear. The aerospace giant has had a hand in designing and building its fair share of satellite and antenna-related equipment, and it can bring that experience to bear for Infostellar. Moreover, it also represents a potential future customer for the Japanese startup.

Ishigame also highlights the strategic opportunities presented by two of the other new investors. Weru Investment has provided invaluable networking access to Japanese government agencies, universities, and research institutions, he says. Sony, meanwhile, has longstanding experience in intellectual property (IP) management and strategy. “Sony has a large number of IP assets, and they can help provide us with IP protection and knowhow,” says Ishigame. “Ours is a unique product in this market, and a very global product, so we have to consider IP protection – and Sony is a very good partner on this.”

Infostellar’s co-founders with series A investors. Photo credit: Infostellar.

While StellarStation is certainly a novel product pitch, Infostellar still faces competition. Rivals fall broadly into three categories: larger antenna holders, such as Norway’s KSAT and Sweden’s SSC; antenna-owning startups, including Atlas Space Operations, Leaf Space, and Spaceflight; and the much smaller pool of antenna sharing services similar to Infostellar, such as RBC Signals.

To infinity, and beyond

StellarStation is still in beta, and further development of the platform will be one of the main areas where the series A funds get spent – in addition to growing the team through hiring.

Nevertheless, Infostellar already has five antenna holders signed up to the platform, and Ishigame says that the company is aiming to have at least 20 antennae secured by next year. The target for 2019 is to have built the world’s largest, most geographically diffuse network of satellite antenna.  

This will also be a focus for the company’s post-series A growth plan. Ishigame says that most of its potential customers at the moment are earth observation companies located in the US. “But there are some significant satellite operators located in Europe – and on the other hand, we have to secure antenna holders globally,” he says. “We have to consider location diversity, because coverage is so reliant on that.”

Once we can achieve that paradigm shift, we can create new software services for this space – something like AWS.

Infostellar has another product in the pipeline – an ecommerce marketplace for satellite components, called Makesat. Beyond that, the company has even bigger ambitions. “If we can create a new sharing approach through the implementation of our network, we can fundamentally change the way antenna holders have done business up until now,” Ishigame says. “Once we can achieve that paradigm shift, we can create new software services for this space – something like AWS [Amazon Web Services] – which offers so many different services.”

Looking even further ahead – this is a space startup, after all – Infostellar’s roadmap might seem a little “pie in the sky.” But that kind of attitude didn’t get humans into space, did it?

According to Ishigame, the company will continue to focus on servicing the industry around low-Earth-orbit satellites until at least 2022. But the following years will be spent looking towards the farther reaches of our solar system, he says. “Some space startups are aiming to explore the Moon by then, and we want to provide them with that kind of communications connection. After that, we’ll be aiming to connect to farther destinations, like Mars or Saturn.”

This post ‘Airbnb for satellite antennae’ lifts off with $7.3m funding from Airbus and Sony appeared first on Tech in Asia.

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Brief: Honestbee launches Goodship logistics service in Thailand

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Honestbee delivery van and driver

Photo credit: Honestbee.

The news:

  • Singapore-based online food and shopping delivery company Honestbee announced the launch of its logistics service, Honestbee Goodship, in Bangkok today.
  • In Thailand, Goodship – which is already available in Singapore, Japan, Malaysia, and the Philippines – will initially focus on “last-mile” same-day or next-day ecommerce deliveries. It eventually aims to provide on-demand delivery in under an hour.
  • Honestbee said that Goodship – which it has been trialling in the Thai capital for several months – has already surpassed its food and grocery services in volume. It’s targeting 50,000-plus orders per day during the next 12 months.

Why it matters:

This post Brief: Honestbee launches Goodship logistics service in Thailand appeared first on Tech in Asia.

Brief: WeWork sues UrWork for trademark infringement

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WeWork Hong Kong

WeWork’s Tower 535 co-working space in Hong Kong. Photo credit: WeWork.

The news (extracted from Bloomberg):

  • US-owned shared office giant WeWork is escalating a legal fight against its Chinese rival, UrWork, with a US trademark infringement lawsuit.
  • According to WeWork’s suit, UrWork’s brand shares defining characteristics with WeWork’s trademark, specifically a two-syllable word beginning with a two-letter pronoun and joined with the word “Work”. It also claimed UrWork’s logo, mobile app icon, and office design resembled WeWork’s.

Why it matters:

  • This is not the first time WeWork has taken legal action against UrWork over trademark rights. In July, WeWork filed a similar lawsuit against UrWork in London. In response, the Chinese company argued that its brand was an interpretation of the shared working industry and philosophy, and that the word “work” was a commonly used term. The case is still ongoing.
  • As the two companies pursue global expansion, WeWork and UrWork will increasingly encounter each other. WeWork took on a US$500 million investment to expand its business in China in July. UrWork has raised US$236 million over the past three months to establish 160 locations worldwide, including in New York, where 38 WeWork offices are located.

This post Brief: WeWork sues UrWork for trademark infringement appeared first on Tech in Asia.

After Grab’s acquisition, what’s next for Kudo?

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To those acquainted with the e-commerce industry, Albert Lucius is no unfamiliar name. The CEO and co-founder of the Indonesian Online-to-Offline (O2O) startup Kudo has contributed greatly to the expansion of Indonesia’s e-commerce industry beyond the country’s major cities. Under his leadership, Kudo looks set to continue on the path of rapid growth, especially in the light of its recent acquisition by Grab.

While change is inevitable given this development, it has also opened up wider opportunities for Kudo to grow even further. As such, Albert’s fireside chat at Tech in Asia Jakarta 2017 this November is highly anticipated.

He will be sharing more about how bringing cashless payments to the masses will transform the marketplace, and also give insights to Kudo’s transition into a new phase post-acquisition. This acquisition marks the first investment of Grab’s recently announced ‘Grab 4 Indonesia 2020’ master plan, a commitment to invest US$700 million in Indonesia over the next four years to help the archipelago achieve its goal of being Southeast Asia’s largest digital economy in 2020.

A heart for economic empowerment

When Albert and his co-founders established Kudo in 2014, the vision they had in mind was for the financial inclusion of offline consumers living in harder-to-reach locations. Through their O2O platform, they have brought a wide range of goods and services to consumers in these tier three and tier four cities that were previously thought inaccessible. Three years down the road, Kudo now has more than 500,000 digital entrepreneurs on its platform, spread across 500 cities and suburban districts of Indonesia.

Kudo was not Albert’s first move towards economic empowerment for the lower-income groups – in 2009, he founded KrisKros, providing web-marketing services to SME businesses also specifically geared towards low-to-middle income communities in Indonesia.

Moving forward

Grab-Akuisisi-Kudo

Grab co-founder and CEO Anthony Tan (l) shakes hands with Albert Lucius, co-founder and CEO of Kudo.

Following Grab’s recent acquisition of Kudo, Albert shared that the two firms share a common vision of enabling Indonesians in all socioeconomic circumstances to benefit from the growth of e-commerce. Together, they have plans to create 5 million micro-entrepreneurs in Indonesia by 2018 and use their combined market advantage to expand their reach through Indonesia. By bringing cashless payment solutions to more Indonesian consumers and additional opportunities to earn income for merchants, Grab and Kudo work towards building SEA’s universal mobile payments platform.

The relationship between the two firms looks to be mutually beneficial, as Grab taps into Kudo’s massive network of agents – the largest in Indonesia – to bring more drivers and users onto the Grab platform, while Kudo can ride on Grab’s support to rapidly expand their agent network.

What’s next for Kudo?

As Kudo enters a new phase of growth and development, many are excited to see how exactly their O2O platform will be integrated with Grab’s emerging mobile payments platform, GrabPay, and its impact on the digital payments ecosystem following the 80 percent month-on-month growth of GrabPay Credits since its launch in November 2016.

Be among the first to learn about Kudo’s latest plans for the coming new year by hearing straight from the horse’s mouth at Tech in Asia Jakarta 2017! Albert will be holding a fireside chat on November 1 where he will share more on his personal experience of going through the acquisition, as well as Kudo’s plans for regional expansion.

Tickets to the conference are now going at 15 percent off, and you can grab yours when you key in this code ‘tiajkt15’ at checkout. This deal lasts only till 22 September, 2359hrs (GMT +7), so hurry!

This post After Grab’s acquisition, what’s next for Kudo? appeared first on Tech in Asia.

Video: Yup that’s Jack Ma doing a Michael Jackson dance


Brief: Indonesia boosts ‘missing middle’ startups

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Photo credit: adrenalinapura / 123RF.

The news (extracted from Tech in Asia Indonesia):

  • “Nexicorn” is Indonesia’s newest government initiative in support of its startup ecosystem. It’s an event that brings post-series A startups together with overseas investors with the aim of grooming the country’s next billion-dollar companies
  • The first iteration was yesterday and connected 45 local startups with investors from Japan
  • The idea was hatched by the Ministry of Communication and Information Technology, the Indonesian Venture Capital Association (Amvesindo), and consulting firm Ernst & Young

Why it matters:

  • Developing Indonesia’s digital economy sits firmly on the current administration’s agenda. The president has signed the so-called ‘Ecommerce Roadmap‘ to coordinate efforts across various ministries. Nexicorn is one of the initiatives handled by the IT ministry. It also supports “Gerakan 1,000 Startups,” a series of events targeting early stage startups.
  • While funding comes relatively easy for early stage startups, it gets successively tougher to raise follow-on money. Ecommerce startups have felt this crunch. On the other end of the spectrum, unicorns like Go-Jek and Tokopedia attract mega rounds. This is why Nexicorn targets companies in the “missing middle” segment.

 

 

This post Brief: Indonesia boosts ‘missing middle’ startups appeared first on Tech in Asia.

Chinese unicorn’s Musical.ly clone targets Indonesia’s teens

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Look ma, I’m famous! Photo credit: ByteDance, modified by Tech in Asia.

Becoming a star has never been easier for teens in the digital age. Create viral music videos, get discovered, sign an album deal. That’s the dream, anyway.

A Chinese media unicorn wants to tap into that teen stardom phenomenon – especially in Asia. Best known for its popular news app in China, Toutiao, ByteDance today announced its expansion into Indonesia with Tik Tok, which looks very similar to the wildly popular Musical.ly.

Like Musical.ly, Tik Tok lets users whip up short videos set to popular songs, like M.I.A’s Paper Planes, or their own recordings. As a Tik Tok user, you can apply a host of Snapchat-like filters to your videos, speed or slow down footage, and cut the music you need.

Image credit: Ngọc Yuki, modified by Tech in Asia.

Tik Tok users are between 15 and 22 years old, according to a spokesperson. They declined to comment on the number of users it has reached since it launched September 2016.

It looks a good fit for Indonesia, where those under 25 make up 42 percent of its 258 million population. Fast-growing mobile phone adoption and an expanding 4G network are also why Tik Tok chose Indonesia as its next target market, says a company spokesperson.

ByteDance is set on world domination.

Tik Tok is just the latest product from ByteDance, which is valued at around US$11 billion. The Chinese startup invests in and operates a variety of media businesses around the world, including China, the US, India, and now Southeast Asia. According to an interview with MIT Technology Review, the Chinese media unicorn is set on world domination, with ambitions to surpass international publishing and media organizations like Facebook and Buzzfeed.

See: China’s hottest media startup worth $11 billion with new funding

In February, the giant Chinese startup acquired video app Flipagram. Last October, it invested US$25 million into Indian news app Dailyhunt. Tying these businesses together is its increasing investment in artificial intelligence research, which funnels into content recommendation systems, automatic article summarization, and more.

Tik Tok is using “personalization recommendation algorithms” to understand user preferences and increase engagement.

“ByteDance has had great success with short videos on Toutiao,” a spokesperson from Tik Tok tells Tech in Asia. “We notice that this is a format that is particularly attractive to the young generation.”

Tik Tok’s user base has grown rapidly in China and is now spreading into other areas. “We are very optimistic about other Asian markets,” the spokesperson adds, later specifying that Tik Tok plans to enter Japan among other regional markets in the future.

Star struck

Tik Tok is using celebrities to attract creators to its app. In China, the company gained traction after partnering with a streaming site to create a highly popular rap battle TV show. In Jakarta, there’s been a party for Tik Tok creators, with Indonesian actress Salshabilla Adriani and Thai actress and singer Suppanad Jittaleela among the attendees. Both stars have Tik Tok accounts.

The app will face a host of local and international competition in Southeast Asia. Singapore-based live streaming app Bigo, for instance, is one of the most popular social apps in Southeast Asia. There’s also Paktor, whose parent company raised US$40 million to invest in more content creators and fuel further expansion in Asia.

Tik Tok’s key advantage might be the Chinese unicorn’s enormous war chest. Backed by Sequoia Capital China and Russian billionaire Yuri Milner, the company is estimated to have generated more than US$1 billion in advertising revenue last year. ByteDance declined to comment on Tik Tok’s business model, saying only that it’s a tool for “brand exposure.”

This post Chinese unicorn’s Musical.ly clone targets Indonesia’s teens appeared first on Tech in Asia.

Brief: Former Sequoia partner Yinglan Tan raises $25m for debut fund

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Photo credit: Yinglan Tan.

The news (extracted from Dealstreetasia):

  • Singapore-based Insignia Ventures Partners, founded by former Sequoia Capital venture partner Yinglan Tan, has raised US$25 million for its first fund, according to a US SEC filing.
  • The fund will target technology startups in Southeast Asia.
  • Tan left Sequoia earlier this year after a five-year stint to put up his own fund.

Why it matters:

  • Tan is among prominent names in the investment community, having been involved in multiple Sequoia investments, including Indonesia’s Tokopedia and Go-Jek, as well as Singapore’s Carousell.
  • Sequoia has been operating in the series A and B spaces in Southeast Asia, but despite that – it doesn’t have a dedicated fund. Instead, its deals in the region are covered by its India fund. Tan’s new VC firm serves as a boon for Southeast Asia, which continues to attract active interest from investors, especially those from China.
  • With the new fund and others such as 500 Startup’s US$50 million Durians fund II and Vertex Ventures’ planned U$150 million fund for Southeast Asia, startup investments in the region are on track to hit an all-time high this year.

This post Brief: Former Sequoia partner Yinglan Tan raises $25m for debut fund appeared first on Tech in Asia.

Opinion: Apple’s iPhone X storage options are a cruel joke

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Apple unveiled its latest iPhones this week, and they are – as ever – impressive. Better screens. Better cameras. Face recognition. Augmented reality. The list goes on and on. But there’s one feature that, while improved, still isn’t nearly good enough. Especially on the premium-priced iPhone X, the storage options still border on absurd.

To be fair, with 64 GB and 256 GB options, the iPhone X are better off than any previous iPhone models. The iPhone 7 starts at 32 GB, and it hasn’t been that long since Apple was offering phones with just 16 GB of storage. So even 64 GB is an improvement.

It isn’t enough, though. Surely a US$1,000 phone released near the end of 2017 ought to have more storage than an iPod from ten years ago. But it doesn’t. The iPod Classic, first released in 2007, started at 80 GB.

Let me just restate that, because it bears repeating: Apple thinks you need less storage on a phone that shoots 4K video, takes 12 MP photos, runs augmented reality apps, and plays HD movies than you needed a decade ago on an MP3 player that used a clickwheel.

Surely a US$1,000 phone from 2017 ought to have more storage than an iPod from ten years ago.

Even if you set aside the historical comparison, Apple’s decision is difficult to defend. The iPhone X shoots 4K video at 60 frames per second. After you factor in iOS, all of your apps, your face data, maybe a few photos and videos you want to keep stored offline for easy access, how much space do you think is going to be left over for those massive 4K 60p video files? The iPhone X shoots borderline pro-quality video, but its storage situation is worse than a cheap digital point-and-shoot.

That’s by design, of course. This isn’t an oversight on Apple’s part, it’s just an obnoxious upsell tactic. Want to actually use your iPhone X for video? You’ll need to pony up an extra US$150 for more storage, or an extra US$10/month for a bunch of iCloud storage. Or both.

That’s annoying but understandable on the cheaper iPhone 8. On the iPhone X, though, it’s unforgivable. This is meant to be a premium phone. It’s a phone that’s more expensive than virtually all of its competitors. It’s a phone whose ability to produce huge, ultra-high-def files is a major selling point. At US$1,000, there’s simply no excuse for the iPhone X having such a tiny SSD.

I suppose it’s hard to blame Apple for trying to make money when people are willing to pay it. But for a company that claims to worship at the altar of user service, it’s tough to defend the idea that putting only 64 GB into a premium-priced phone is what’s best for users.

Even if Apple refuses to include the microSD slot many of its competitors do, it could certainly charge less for storage upgrades. Nowhere but in an Apple store will you be charged well over a dollar per gigabyte for a solid-state drive.

So, buy an iPhone X if you’d like. I have no intention of stopping anyone who wants to buy the X (nor any delusion that I could). But please do so knowing that even a thousand bucks apparently isn’t enough to buy more than 64 GB of storage in Apple’s world.

This post Opinion: Apple’s iPhone X storage options are a cruel joke appeared first on Tech in Asia.

Accelerators scramble for new revenue streams as equity model fails

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microsoft-accelerator-bangalore

A batch of 13 startups and their mentors at Microsoft Accelerator in Bangalore. Photo credit: Microsoft Accelerator.

Accelerators are shifting their business models as they find it hard to sustain operations out of revenue from the equity startups give them. This is the key finding in a new report based on a survey of 579 accelerator programs that invested US$207 million into 11,305 startups in 2016. Out of this, about US$18 million went into 1,368 startups from 76 accelerator programs in the Asia Pacific region, according to an annual Gust report released today.

Only 7 percent of APAC accelerators reported revenue from exits as their main source of revenue in 2016.

In 2015, nearly two-thirds of the accelerators surveyed (63 percent) were following the traditional cash-for-equity model. This involves investing a small amount of seed money – US$25,000 on average – in exchange for equity, usually between five percent and ten percent.

Last year, the share of accelerators relying on returns from equity investments became less than half – 42 percent. The reason is that exits are too few and taking too long to fund the operations of accelerators. Only 7 percent of APAC accelerators reported revenue from exits as their main source of revenue in 2016 – 14 exits were reported by 11 accelerators.

Sources of revenue for accelerators in 2016

Source: Gust Report on Accelerators 2016.

This is in line with a global trend, with only 179 exits reported from the 579 accelerators surveyed. In 2015, a majority of them had a cash-for-equity model, but last year only one-third of them said they would rely on revenue from exits in the future.

Sources of revenue aimed for by accelerators

Source: Gust Report on Accelerators 2016.

Accelerators have been exploring new channels for monetization. These include charging for mentorship, subletting office space, hosting events, and working with corporations.

The corporate connection has grown significantly. More than half of the accelerators worldwide are at least partially funded by corporations, and over two-thirds of them are aiming to generate revenue from services sold to corporations. The corresponding numbers for APAC are marginally lower, but follow the same trend.

See: Techstars launches first center in Asia. Founders explain what’s special about it.

The corporate revenue for APAC accelerators in 2016 came mainly in two forms: 46 percent of it from white-labeled or jointly-run accelerator programs created on behalf of corporations, and 45 percent from sponsorship packages sold by accelerators.

The trend is getting a push from growing corporate interest in startups as well as a maturing of the accelerator industry. “On the one hand, this is because corporations are discovering that accelerators are an efficient and effective way to engage with startups. On the other hand, accelerators understand that corporations can help them fund operations in the short-to-medium term (since exits are often far out),” says Miklos Grof, co-author of the Gust report. “They improve the prospects of their portfolio companies that can potentially sell to, raise funds from, or be acquired by these corporations.”

See: PayPal is investing in these 5 fintech startups

A little over one-third of the 76 APAC accelerators surveyed in 2016 took no equity from their startups, underlining the shift to a corporate revenue model and a rise in accelerator programs run by corporations.

Equity taken by accelerators

Source: Gust Report on Accelerators 2016.

This post Accelerators scramble for new revenue streams as equity model fails appeared first on Tech in Asia.

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