Tag: Startups

  • Startups beat Ericsson, Huawei, Nokia in telco cloud market

    Startups beat Ericsson, Huawei, Nokia in telco cloud market

    The telco network is starting to provide opportunities for much smaller companies and even startups are now winning business against the established giants Ericsson, Huawei and Nokia, according to ABI Research.

    Findings of ABI Research’s Telco Cloud Hot Tech Innovators report show 15 companies that are creating new types of innovation and bringing fresh ideas to the telco market.

    These companies include cloud players, new entrants, network specialists, and software developers, which were previously barred from entering the telecoms market.

    “The 15 companies we have profiled illustrate a completely new way of developing network technology. In some cases, they have even won business against Tier-1 vendors, which are 100 times their size, have 100 times their R&D budget and have a formidable sales organization,” said Dimitris Mavrakis, research director at ABI Research.

    “These companies win with software skills, cloud computing, open sourcing, and being free of a legacy business to support,” said Mavrakis.

    The 15 companies ABI Research has profiled, and the new wave of startups go directly opposite the established norm as some of them are 10-people companies and rely on open source projects to win business.

    ABI Research said that only by embracing this new trend can telcos break free from their connectivity-driven business model. Frinx, inManta, Metaswitch, Netrolix, NFWare and Yotta Communications are a few examples of startups that would have no place in the market five years ago.

  • Help for Singapore start-ups in Indonesia

    Help for Singapore start-ups in Indonesia

    Singaporean start-ups eyeing the Indonesian market can now look to a new innovation hub in its capital. Block71 Jakarta, a 1,500 sq m facility in the Kuningan district, officially opened its doors yesterday to 24 businesses from both countries. Operations had begun in March.

    The hub, a tie-up between the National University of Singapore’s entrepreneurial arm NUS Enterprise and Indonesia’s Salim Group conglomerate, will host conferences, business competitions and other start-up events.

    It is based on Singapore’s Block71 in Ayer Rajah Crescent.

    NUS Enterprise chief executive Lily Chan said: “Block71 Jakarta is open to all start-ups and entrepreneurs who are keen to explore the Indonesian market. In particular, we strongly encourage companies that are developing innovative technology solutions with the potential to scale globally to apply.”

    Start-ups are also expected to be able to tap the global networks of investors and industry players that NUS Enterprise and Salim Group are plugged into.

    The group’s executive director, Mr Axton Salim, said in a statement: “We have embarked upon this initiative as we want to support entrepreneurs as well as encourage new developments in Indonesia.

    “The Salim Group’s networks and experience will facilitate the entry of start-ups and innovations to the local market and benefit the community here.”

    His family business deals in a diverse array of sectors, with its units including real estate, telecommunications and manufacturing.

    Among the Singapore start-ups that have ventured into Block71 Jakarta is the pslove company, which sells heat patches to alleviate menstrual cramps. Founder Tan Peck Ying told: “As a consumer product company, we go where the demand is. For the past couple of months, we have been getting multiple requests from Indonesia and this is a natural move for us.”

    The Indonesian start-ups at Block71 Jakarta include 8villages, a social enterprise that provides rural farmers with a mobile information platform to communicate and do business.

    Minister for Trade and Industry (Trade) Lim Hng Kiang, who officiated the hub’s opening ceremony yesterday alongside his Indonesian counterpart, said: “Block71 Jakarta will be a launch pad for Singapore entrepreneurs and innovators to build ties with the Indonesian start-up community. We hope Block71 Jakarta will foster a healthy two-way exchange of ideas, innovation and expertise.”

  • Korea needs to draw long-term growth plan for startups

    Korea needs to draw long-term growth plan for startups

    Korea has leaped into being one of Asia’s leading economic powerhouses in less than a century after the post-war devastation back in the early 1950s.

    Many attribute the rapid growth to the nation’s tough working culture — represented by an obsession to generate short-term, outstanding outcomes mainly in the business circle.

    This has brought about such homegrown hardware titans as Samsung and LG whose history falls short of their overseas counterparts, but have become top-tier players.

    The hardware-driven growth, however, is still holding back the development of the local software industry, with the government putting little attention on the non-manufacturing yet crucial growth area.

    “Not a single Korean software company has achieved global success, compared with the hardware or manufacturing industry players,” Tiger Company CEO Kim Beom-jin said in an interview Sunday. The software startup — established in 2011 — is an enterprise-level social networking system provider here.

    He said the nation’s software market is not huge enough to grow into a sizable shape due to the small market size and weak infrastructure, so the government needs to implement specific measures for its long-term growth both in quality and quantity. The software market in the United States and China is 20 to 30 times bigger than that of Korea, he said.

    “It is also tough for us to tap directly into overseas markets, as we are no match for industry leaders there in terms of factors such as capital, workforce and marketing,” he said.

    Kim urged the government to support local software startups in particularly overseas networking and marketing activities.

    “Small startups with weak capital cannot have enough chances to contact overseas clients and promote products by participating in global exhibitions,” the chief executive said.

    The government has in recent years pushed for the development of the local software industry. For example, the Ministry of Science, ICT and Future Planning unveiled a plan last year to name and support 20 software-oriented universities by 2019.

    The move comes amid growing calls that the country should make more effort in software education to build an infrastructure for its long-term growth.

    This reflects that global information and communication giants such as Google and Facebook generate billions of dollars in profit with their software infrastructure. But even if the global tech paradigm has shifted into the software sector, the government has made little effort to catch up with the trend.

    “The small software market size is also blocking the government from making enough investments in software industry players,” he said. “Most state-run bodies have invested mainly in hardware and online to offline industry players here, paying little attention to their software counterparts.”

    “Local venture firms or small- and medium-sized firms can receive state-run research and development funding projects for as long as three years,” he said. “But the government needs to draw up concrete funding policies from a longer-term perspective, from product development to global expansion.”

  • Bangalore is India’s top home for IoT startups

    Bangalore is India’s top home for IoT startups

    A study by management consulting firm Zinnov has revealed that Bangalore is the prime destination in India for an IoT startup to set up base, as it accounts for 52% of the total IoT startups in India.

    Bangalore is followed by Delhi NCR with 12%, Mumbai 11%, Hyderabad 4%, Chennai 2%, and others together accounting for 19%.

    “A wide availability of talent, thriving ecosystem of investors, access to industry experts and the presence of startup accelerators are contributing to Bangalore’s dominance,” a release from the firm said. The study on the IoT startup ecosystem in India also reveals that over 120 IoT startups were set up in India in the last decade with more than 80% of them being established after 2010.

    Cumulatively, these startups have received more than $169 million in funding since 2006. While indicating that an increasing number of connected devices is expected to propel India’s IoT market, the study titled, IoT Startups in India 2017, also states that the funding activity across use cases for such startups in India indicate a huge growth potential for them in the country.

    “While the initial wave of growth for IoT startups in India was focused on consumer applications, the next wave will be geared towards Industrial IoT,” Zinnov Engagement Manager & Delivery Head (G.A.P) Anand Subramaniam said.

    “In addition, we will also witness a host of partnerships being crafted between GICs in India and the IoT startups in the near term,” Subramaniam added.

    The study said that 67% of the IoT startups in India are in the infrastructure layer, which includes hardware components such as infrastructure sensors, embedded chips, MEMS, actuators, modules, SIM card and system design.

    The applications layer accounts for 52% of the IoT startups in India, the study revealed, stating that the IoT landscape in India is segmented across three categories based on use cases — Industrial IoT, Enterprise IoT, and Consumer IoT. Zinnov’s study also indicated 47% of the IoT startups in India fall under Consumer IoT with popular use cases being wearables, connected vehicles and connected appliances.

    Enterprise IoT is a close second place, with 40% share. In terms of funding, MedTech, security & surveillance and retail sensing have the highest share in the Enterprise IoT segment.

    Industrial IoT accounts for approximately 27% of IoT startups and has received close to $65 million in funding from investors.

  • Indonesia, Singapore partner to develop startups

    Indonesia, Singapore partner to develop startups

    Local co-working space EV Hive is collaborating with Singapore’s working space BASH to provide places for startups from both countries to develop and thrive. These spaces with assist startups with business development and funding.

    “Regional companies based in Singapore can use EV Hive as a launch pad to the Indonesia market. Indonesia companies can use BASH as a stepping stone to access the regional stage,” said Willson Cuaca, managing partner of Singapore-based venture capital firm East Ventures, during the launch of the collaborative project on Tuesday. East Ventures manages EV Hive.

    Startups at the later stage (series B and above) of development can leverage support from EDBI, the global investment arm of the Singapore Economic Development Board.

    East Ventures, BASH management or SGInnovate, a development body wholly owned by the Singapore government, will work on more programs to expand talent, markets and knowledge-sharing for the customers of both co-working spaces.

    EV Hive currently manages two co-working spaces in South Jakarta and one in the Breeze mall in Banten. It plans to reach seven offices by the end of the year.

    EV Hive has facilitated the development of 36 startups, six of which are Singaporean.

    BASH, meanwhile, manages an integrated startup space in Singapore.

  • TV programme “Startup Nation” to air shortly in Vietnam

    TV programme “Startup Nation” to air shortly in Vietnam

    Vietnam Television (VTV) and HCM Communist Youth Union on Monday announced a new TV programme titled “Startup Nation,” which is expected to promote startups inVietnam.

    The announcement was witnessed by Deputy Prime Minister Vương Đình Huệ, Minister of Science and Technology Chu Ngọc Anh, Minister of Agriculture and Rural Development Nguyễn Xuân Cường, leaders of the youth union and major companies in Vietnam.

    The talk show format will air on VTV1 every Friday evening from April 14 and rebroadcast Saturday afternoon.

    Another programme titled “Startup Coffee” will air from April 10 every morning as part of the programme “Good Morning” on VTV1.

    VTV Director General Trần Bình Minh said the programme producers wanted to deliver a message on startups, which is “Renovation is continuous and enduring. It’s not just a movement but a path for the nation to follow.”

    He said successful businessmen would be invited to “Startup Nation” to share experiences and comment on startup models or business trends in Vietnam and across the world. They could then suggest or invest in promising startup ideas.

    The TV programme is part of the Government’s mission to makeVietnam a nation of startups.

    First Secretary of HCM Communist Youth Union Lê Quốc Phong said the youth would applaud the new programme, which offers them an opportunity to present their startup dreams, and make those dreams a reality.

    Phong said the youth expected relevant agencies to hear their ideas and suggestions thanks to the TV programme and subsequently timely adjust policies to support them.

    In the first quarter of this year, 26,478 new enterprises were established in Vietnam, a record number in the last six years.

    Last year,Vietnam recorded the establishment of 110,100 new enterprises, the highest number compared with the previous years. Last year is the first time the country had more than 100,000 new enterprises in one year, which is said to be the result of the Government’s strong promotion of startups.

    Vietnam is expected to have one million enterprises by 2020.

  • Six Startups with the Largest Funding in Indonesia

    Six Startups with the Largest Funding in Indonesia

    The emergence of many start-up companies lately has become an interesting phenomenon, many of them were built with fantastic funding figure.

    Well, following are six startup companies with the largest funding or investment value in Indonesia.

     1.Go-Jek

    Go-Jek is a startup of ride-hailing application (in Indonesia this is called online transportation); the company founded by Nadiem Makarim has a staggering funding of $550 million (or IDR7.2 trillion) in last August 2016.

    2. Lamudi

    In February 2016, Lamudi, global property portal, received funds amounting to $31.4 million to boost its business. Supported by Rocket Internet, Lamudi has strong position to dominate the property market in Indonesia. In 13 other countries wherein Lamudi is operating, the startup position is also strong because it is supported by a sophisticated quality portal and user-friendly.

    3. Tokopedia

    Tokopedia last year received an injection of investment worth $147 million (or equivalent to IDR1.9 trillion), thus the startup initiated by Wiliam Tanuwijaya and Leontinus Edison has gathered a total investment of $247.7 million. With the funding it is expected Tokopedia will become the biggest Android-based shopping app in Indonesia.

    4. Elevenia

    Launched in early 2014 with funding of $18.3 million is enough to make Elevenia has an important position in the e-commerce world. This platform received 20,000 transactions per day and has more than four million listings.

    5. MatahariMall

    Funds amounting to $100 million (or IDR1.3 trillion) have made a startup backed by Lippo Group as one of the kings in the e-commerce field. Plus, the support from Mitsui investment also increasingly strengthens MatahariMall and makes MM one of startups with unicorn status.

    6. Oto

    Oto.com is a platform that connects customers with the automobile manufacturers and distributors. The customers can look for prices, specifications, drawings and others about their desired car via the website. This startup has received a funding of $25 million in 2016 ago.

  • Vietnamese start-ups receive a $250-mln boost last year

    Vietnamese start-ups receive a $250-mln boost last year

    Fledging startups are concerned most over a lack of funding to get their idea off the ground. Total venture capital investments into Vietnamese start-ups soared 78 percent to about $240 million last year, an official from start-up accelerator program Topica Founder Institute said Friday.

    The Southeast Asian country has an ambitious plan to transform itself from an offshore manufacturing hub for foreign companies into a major player in the global digital economy.

    The government has started adjusting business policies to pivot around small and medium-sized companies and encouraged a start-up bloom.

    Vietnam launched a project last year to support fledging local companies, under which the government will help fund about 2,000 start-ups by 2025.

    Topica Founder Institute statistics showed that as many as 60 percent of investment deals that Vietnamese start-ups managed to seal last year came from venture capitalists.

    Meanwhile mergers and acquisitions accounted for 30 percent of start-ups’ funding and the remaining were financed by private equity firms.

    Just six years ago, Vietnam recorded only 10 start-up investments. The number of successful deals increased seven-fold to 67 deals in 2015, according to Topica Founder Institute.

    Among the most notable investments was South Korea’s UTC Investment’s $38-million acquisition of a controlling stake in VNPT EPay, marking the biggest deal last year, the program said.

    Momo, a local payments and online wallet company, has raised an unprecedented $28 million from Standard Chartered and Goldman Sachs.

    A lack of funding to help start-ups get their idea off the ground is their most concern, startup experts have said.

    Some argued that institutions like the stock market or commercial banks are either not designed to financially support idea-stage companies or have insufficient resources to do so.

    Although there are banks that focus on small and medium-sized companies, they really are not able to offer financing to early-stage companies which often don’t have a track record of reliable annual revenues or a history of good credit.

    Hence start-ups are more likely to seek funds from other resources like venture capital investors and private equity firms.

  • Indonesia’s startups continue to attract investors

    Indonesia’s startups continue to attract investors

    After dominating the investment market for the past few years, startups continue to attract investors this year.

    Investors see a startup as a company which fulfills three categories required in businesses, said Morgan Stanley president director Oki Ramadhana.

    “There are three things, which are usually used as benchmarks in potential businesses that will give profit to investors. Those are scalable, profitable and tractable records,” he added.

    Tokopedia and Gojek are two examples of successful startup businesses in Indonesia, said Northstar co-founder and managing partner Patrick Walujo during a seminar at the University of Indonesia (UI) over the weekend.

    “Tokopedia only started with the capital worth 200 million rupiah (US$15,000) from its founder and former boss. But now, the company has gained US$1 billion,” he said.

    However, Patrick stressed that it is not only a matter of big money for startup companies but also sustainability.

    “It’s not only about being rich, but how to make the company grow over time. Therefore, startup owners need to find an investor partner that will help them to step up to the next level,” he added.

  • Thai start-up sector tipped to double in value as support grows

    Thai start-up sector tipped to double in value as support grows

    The size of the Thai start-up sector is expected to double this year, with especially high growth potential seen in the areas of fintech (financial technology) and tech for the healthcare, logistics and retail industries.

    Meanwhile, US tech giant Cisco is investing more than US$100 million (Bt3.5 billion) to support start-ups in Asia-Pacific.

    The Thailand Tech Start-up Association (TTSA) has predicted that the overall value of the start-up market in the Kingdom will double to more than Bt20 billion, with over 600 start-ups by the year’s end.

    The main factors driving this growth are people’s increasing access to information technology, government support for innovation and start-ups, and a rise in venture capital and private-sector support.

    Oranuch Lerdsuwankij, chief executive officer of start-up website Techsauce, said the sector would expand strongly this year due to collaboration and support from the private sector and government bodies such as the Bank of Thailand (BOT).

    The central bank has issued a consultation paper on “FinTech Regulatory Sandbox Guidelines”, with the purpose of the regulatory sandbox being to allow business operators to test their financial products or services in a live but limited environment, without being fully subject to all the requirements that are normally applicable.

    Through the sandbox, the BOT aims to facilitate new financial innovation while still ensuring consumer protection and financial-system stability.

    The central bank’s regulatory sandbox can offer its fintech products or services to consumers within the limited scope as approved by the BOT under somewhat lenient rules, as specified by the bank on a case-by-case basis.

    Start-up contests and events will also play an important role in driving the growth of start-ups as a whole, Oranuch said.

    Moreover, the banking industry this year will provide much more direct investment or create limited partnerships in fintech start-ups, she said, adding that the arrival of Alibaba in Thailand is another important factor that will benefit small local fintech developers.

    Corporate businesses such as banks and other financial institutions will increasingly develop accelerate programmes to support start-ups, and work with fintech start-ups to seek ways to provide better financial services to support their customers’ lifestyles and behaviour, the CEO said.

    The TTSA will also ask the government to support start-ups in terms of a capital-gains tax exemption to drive the growing sector as a whole.

    Vatsun Thirapatarapong, managing director of Cisco Systems (Thailand), said Cisco was investing over $100 million in Asia-Pacific start-ups with good potential via a venture-capital operation named Monk’s Hill Ventures (MHV).

    Besides investing in countries such as China, Singapore and Malaysia, MHV has invested in two Thai start-ups, one in the field of logistics and the other in gaming.

    The company will utilise a start-up’s solution and product, as well as bundled start-up services, application and platform, with Cisco’s own products to expand the business both locally and on the international market, the MD explained, adding that Cisco had started to invest in Thai start-up businesses a couple of years ago.

    Acting as an enabler

    “We want to see start-ups that utilise information technology to support disruptive business, such as in the logistics area by developing an application to support logistics optimisation. We are an enabler to support start-ups in terms of training and consulting, and as a marketing arm,” Vatsun said.

    Wiwat Wongwarawipat, president of InStep group – a product development services firm – said there was high growth opportunity for start-ups in Thailand catering to the financial, healthcare and retail industries, since user behaviour was rapidly changing in terms of people accessing new technology to support and improve their quality of life.

    Wiwat has personally invested in four Thai start-ups in the fintech and health tech areas.

    Moreover, his company is planning to set up a venture-capital operation to support local start-ups in in high-potential areas, including fintech, health tech and innovative tech for the logistics and retail industries.

  • Nearly 9,000 new companies launched in Vietnam in January

    Nearly 9,000 new companies launched in Vietnam in January

    A strong start for the economy in the new year after a record high number of new openings in 2016. Vietnam’s business community has hit the grounds running in the new year. Official reports showed that 8,990 companies opened in January, up 8 percent from last year. Their registered capital surged 52.3 percent to VND90.3 trillion ($4 billion) in total.

    The new companies are expected to create 104,100 jobs. In comparison, there were 8,320 new companies with 124,000 new jobs in January last year.

    Nearly 5,600 suspended companies also resumed operations last month.

    The number of businesses shutting down increased 18.3 percent year-on-year to 1,583.

    Vietnam hopes to see over one million businesses in operation by 2020. It is now halfway to that point.

    The country saw a record number of business openings of 110,000 last year, strengthening hopes for robust growth and strong investment in the near future.

    Officials from the labor ministry reportedly said that Vietnam aims to create 1.6 million jobs this year, roughly the same figure last year.

    More than 3 percent of the country’s urban adults are unemployed while the rural rate is nearly 2 percent.

  • Foreign funds pour money into Vietnamese startups

    Foreign funds pour money into Vietnamese startups

    John Wu has been the ‘technology pillar’ of Alibaba for almost 10 years. The former technology director and a leading group of investors have poured nearly $3 million into Vntrip.vn – a Vietnamese startup operating in online hotel reservations.

    Le Dac Lam, the founder and CEO of the startup, has confirmed the news.

    “The investment came after the first round of capital call from foreign investment funds, and John Wu has agreed to stand side by side with us,” Lam said.

    Established in late 2014, Vntrip.vn has established an online hotel network throughout Vietnam with cooperation of Booking.com, the world’s hotel reservation network belonging to the US Priceline Group with capitalization value of $65 billion.

    Wu’s F&H fund says the business is valued at VND300 billion.

    Vietnamese restaurant chain calls for $6.9 million

    Wrap & Roll has successfully called for $6.9 million from Mekong Enterprise Fund III (MEF III) managed by Mekong Capital.

    MEF III which was launched last June, with total investment capital of $112 million, is a private fund focusing on retailers, restaurants, consumer goods and consumer services in Vietnam.

    Wrap & Roll was the first investment deal made by MEF III.

    Established in 2006, Wrap & Roll has 10 restaurants in Hanoi, HCM City and four franchise shops in Singapore.

    3 more startups receive $75,000 

    1337 Ventures, a Malaysian fund, has announced investment in three Vietnamese startups, following Alpha Startups, a startup incubation program launched recently in HCM City.

    Each of the three businesses would receive $25,000 in capital and services and have the right to join the 3-month startup acceleration program to be run by 1337 Ventures.

    The three businesses include Saloneses, an app that books beauty services on smartphones, Perkfec, which allows business owners to keep watch over staff performance to reward them reasonably, and Navi which books venues and accommodations within hours.

    Bitexco acquires Huong Giang Tourism

    Huong Giang’s H1 Report shows that Bitexco, a major real estate developer, now holds 70.48 percent of the tourism company.

    On March 30, 2016, the Thua Thien-Hue provincial People’s Committee released a document on divestment of all the state’s stakes (12,572,200 shares) in Huong Giang. Bitexco has become the new shareholder in the tourism company.

    Tuong An Vegetable Oil

    Nguyen Manh Cuong, an individual shareholder, has announced the completion of the sale of 1.9 million TAC shares of Tuong An Vegetable Oil Company, equal to 10.4 percent of charter capital.

  • Startup dreams bring real money to Vietnam’s office market

    Startup dreams bring real money to Vietnam’s office market

    Young companies looking for their first home are spiking the demand for small-sized office space. Tan, a self-employed real estate broker, paid $5,000 per month for the use of a six-story building in downtown Ho Chi Minh City. He then turned it into 15 office rooms with polished tiled floors, private bathrooms and internet connections.

    The offices, ranging from 25 to 40 square meters, are now rented out to startups at between VND5 million and VND10 million ($220 – $440) per month, said Tam, who asked to be identified by his first name only.

    For fledgling startups, which try to make every penny count, these small-sized offices with good locations fit their budget.

    Tan said currently 10 companies are his tenants, claiming a return of 20-25 percent.

    Local brokers said some estates in the city’s downtown areas are becoming mini-hubs for startups. These young companies give the office market in Ho Chi Minh City and Hanoi a much-needed boost as many landlords struggle to fill space, they said.

    However, according to Le Huu Dung, chief executive at brokerage Weland Investment, not just any space will do.

    “We have seen a strong growth in mini-office rentals in Ho Chi Minh City in the past two years following the recent startup boom,” Dung said. “While some investors have earned decent profits, others are losing money.”

    No one who starts out in such a tiny office expects to stay there for long, Dung said, referring to the fact that when startups become bigger, they will move to larger offices.

    Another flip side of the business is that this segment mainly relies on idea-stage companies, which may not even last longer than just a few months.

    Dung warned that if the occupancy rate is lower than 80 percent, the investor will start losing money.

  • The stars of 2016’s Year of Startups

    The stars of 2016’s Year of Startups

    Vietnam’s hottest buzzword for 2016 must have been startups, as never before have millions of young Vietnamese been so warmly encouraged to innovate and start their own business. To show its commitment to young entrepreneurs, the Vietnamese government named 2016 as “the year of startups”.

    Under the spotlight, the passion young Vietnamese have for innovation is more evident than ever. In just a few years, these ambitious minds have come up with creative solutions for various industries within Vietnam, and brought some fresh ideas to seemingly “boring” sectors.

    Take financial technology (fintech) as an example. According to the World Bank, 70 per cent of the Vietnamese population remains unbanked, while the rising middle-class has more sophisticated financial needs than ever before. Vietnam Banking Forum also estimates that 38 per cent of the Vietnamese population owns a smartphone.

    Young entrepreneurs have immediately identified opportunities regarding these trends, and 30 fintech startups have been launched within the last four years. Unlike banks, which tend to be conservative and formal, fintech startups are user-friendly and trendy in design.

    Among them is MoMo, which implements the novel idea of making cashless payments via point-of-sale terminals in urban and rural areas. Via mobile technology, the startup aims to make e-payments easier, even for those living in remote areas without a bank account.

    “To gain customers’ trust, MoMo has built a two-level security system for e-wallet users. We launched fingerprint identification and acquired the PCI DSS security certificate. 2016 has been a wildly successful year for us, as we currently have 4.5 million users, 2.5 million of whom have registered for the e-wallet,” MoMo deputy chairman Nguyen Ba Diep told VIR.

    Besides fintech, Vietnamese entrepreneurs have used their creativity to tap into other traditional sectors such as agriculture and medical care, although returns may take longer. For example, Le Anh Duc, the owner of Lee Farm, beamed with excitement when talking about his 10,000sq.m organic farm in Binh Phuoc province.

    “I realised that as Vietnamese customers become more health-conscious, the demand for organic produce will surpass supply. As a fruit and vegetable lover myself, I’ve seized this opportunity by adopting a Thai-based greenhouse farming module and a drip irrigation system from Israel. This combination for organic farming is the first of its kind in Vietnam,” Duc said. In 2017, he plans to double the size of his farm and apply for a business licence.

    In medical care technology, eDoctor is a mobile app that allows people to access healthcare information and connect with doctors, hospitals, and pharmacies via smartphones. And it all started with a simple observation: the founders noted that people in the countryside have to travel long distances to get medical care in the city, which is costly and time-consuming.

    “Using eDoctor, people can find and connect with their doctors through calls and in-app messages. If they need to see a specialist, they can even use the app to book a visit to the closest clinic. People are also able to save and track their own health records, as well as records of family members and dependents,” said the firm’s CEO Vu Thanh Long. As of December 2016, eDoctor had reached 210,000 users. A target of one million users is set for the end of 2017.

    The legal roadblock

    With the wide range of examples above, it is not hard to see that Vietnamese entrepreneurs are bursting with creativity. However, just like a young bird that is excited to fly, Vietnamese startups still need more assistance to reach the distant horizon.

    One of the major issues is Vietnam’s legal system, which lags behind the fast-changing world of startups, and creates confusion that frustrates entrepreneurs. In July 2016, controversy broke out over Article 292 of the revised Criminal Law, which stated that all businesses must acquire permission before offering online services.

    As processing paperwork in Vietnam can take longer than in countries like Singapore, many startups have called on the government to install more progressive rules. In response to the uproar, last October lawmakers proposed to eliminate Article 292 and assured that it would not hurt startups’ activities.

    Diep of MoMo hoped that the legal framework would be more responsive to new services and products made by startups. For instance, the State Bank of Vietnam has released guidelines on intermediary payment but not peer-to-peer lending or crowdfunding.

    “The government has paid due attention to creating a startup ecosystem on a national scale, to attract investors as well as entrepreneurs. The legal procedures, however, are somehow much more complicated than in neighbouring places like Singapore or Hong Kong, posing a major hurdle for investors who want to reach out to local startups,” said CEO of Liti Florist Krystine Nguyen.

    Meanwhile, Long of eDoctor acknowledged recent efforts made by the Ho Chi Minh City People’s Committee to promote entrepreneurship, but called for more detailed rules on preferential taxes and bank credits for startups. He also feels a stronger startup ecosystem in Vietnam is necessary.

    Vu Tuan Anh, head of the Community Startup Division at Hoa Sen Group and founder of Vietnam Institute of Management, suggested that the government dedicates a certain amount of seed money for startups and provide training for entrepreneurs – essentially acting as an angel investor. He called this “a startup value chain” that can groom young students into business-savvy entrepreneurs within five years.

    Helping from outside and in

    The government is indeed listening to the suggestions of startups as part of its master plan to turn Vietnam into a startup nation. Prime Minister Nguyen Xuan Phuc, during a meeting with university students in Hanoi last November, remarked on his belief that Vietnam must do everything it can to push the entrepreneurial spirit in young people.

    “The young generation in Vietnam is very creative, and yet among 90 million Vietnamese, there are only 600,000 businesses. I request relevant ministries, the Youth Association and universities to help young entrepreneurs create new value for society and move the country forward,” he said.

    In response to the prime minister’s request, the authorities have rolled out various programmes to assist startups. Last month, the Ho Chi Minh City Department of Science and Technology commenced Speedup 2017, under which entrepreneurs can receive up to VND2 billion ($88,500) in capital from the department and participating investors. Startups will receive training and networking opportunities as well.

    The Ho Chi Minh City People’s Committee has also launched a Business Startup Support Centre as an incubator for startups to raise capital, learn management skills, and network. Similarly, the Hanoi People’s Committee established an incubator for IT startups last November.

    Besides clarifying the issue with Article 292 of the revised Criminal Law, lawmakers are pushing the entrepreneurship agenda in their meetings. The National Assembly has added startups into the proposed Law on Supporting Small- and Medium-sized Enterprises, which will be up for further debate in 2017.

    Various companies such as FPT Corporation, Hoa Sen Group, Lotte Group, and AIA have announced plans to support Vietnamese startups, in the form of capital or knowledge sharing.

    However, it is vital that startups themselves have enough confidence, drive, and talent to serve their community. In his meeting with university students, the prime minister reminded aspiring entrepreneurs that their innovations do not have to be grand or exotic – it can begin with a need to solve a common, everyday problem.

    “Sometimes new ideas aren’t accepted by the market yet, but that’s fine – young startups should not let failures block their way to success,” Phuc said.

    “Please remember that as long as you follow your dream, you’re contributing to the future of Vietnam. I suggest that you focus on your studies, participate in community activities, and intern at companies to understand what Vietnamese society needs and build your product offerings around that.”

    Similarly, CEO of FPT Corporation Truong Gia Binh advised young entrepreneurs to start small and focus on serving the needs of their community. Binh himself built FPT Corporation in 1988 to give Vietnamese people access to technological breakthroughs, such as internet, TV, and computer software.

    “When we started FPT Corporation we struggled a lot. It’s true that nine out of 10 startups will fail, but it also means one chance of success – and I think young entrepreneurs should go for that. I believe this is a great time to start a business in Vietnam as the country is growing, the majority of the population is young, and the average income level is rising,” said Binh at a recent startup event in Ho Chi Minh City.

    Anh from Hoa Sen Group noted that new startups should also reach out to a wider variety of sectors, such as education, tourism, niche e-commerce, or the overseas export of Vietnamese traditional specialities.

    Of course, as Vietnam is new to the startup landscape, more debates will follow. For now however, Vietnam will enjoy a young generation full of innovative ideas, a drive to succeed, and a national campaign to push them forward. And hopefully, this spirit will bring on a new chapter for Vietnam.

  • Plug and Play to invest in dozens of Indonesian start-ups

    Plug and Play to invest in dozens of Indonesian start-ups

    Indonesia is a few steps closer to becoming the largest digital economy in the region, as one of Silicon Valley’s largest players, Plug and Play, has expressed interest in investing in dozens of Indonesian start-ups.

    Despite Silicon Valley firms being discouraged from investing abroad recently, Plug and Play seems to see huge potential in Indonesia’s digital economy, as the US tech giant signed a joint venture agreement with local investment firm Gan Kapital to establish Plug and Play Indonesia.

    State-owned lenders Bank Negara Indonesia (BNI) and Bank Tabungan Negara (BTN) will be actively involved in the mobile financial technology-focused start-up accelerator.

    The local branch will be officially established next January and invest in up to 50 early-stage start-ups per year. They will receive funding, mentorship and complimentary co-working space for a three-month period.

    Plug and Play CEO and founder Saeed Amidi said the company hoped to establish 200 Indonesia start-ups in its portfolio by 2020 in response to the visit of Indonesian delegates, led by President Joko “Jokowi” Widodo earlier this year.

    “It took us a few months to come here but we are super excited to start this journey together and work together to build a better economy, what we call knowledge-based economy and digital economy, here in Indonesia,” he said following a meeting with the President on Tuesday.

    During his visit to Plug and Play’s headquarters in Silicon Valley, as part of his visits to the headquarters of US technology giants, Jokowi expressed his expectation to have the company partake in Indonesia’s efforts to become Southeast Asia’s biggest digital economy.

    He even wrote “Start it up together, prosper together” at Plug and Play’s headquarters, from which up to 100 start-ups across the globe are developed every year, including Dropbox, with US$3.5 billion in funds raised by its start-ups since 2006.

    Gan Kapital Group chief financial officer Wesley Harjono, who will also be managing director of Plug and Play Indonesia, said it will allocate around $10 million per year for the 50 start-ups that they have chosen to support.

    “If there are 50 start-ups and we give an average of $500,000 per start-up, then we can prepare $10 million per year,” he stated, adding that start-ups would also enjoy exposure to the global market in hopes that investors abroad would also start to take part.

    Communications and Information Minister Rudiantara highlighted the importance of Plug and Play’s presence in Indonesia to attract more foreign investment in the country’s e-commerce sector.

    “He has come here even at a time when Silicon Valley is being discouraged from investing abroad. He said he is confident about Indonesia and this is a positive factor,” he said.

    The government issued its 14th economic policy package last week, aimed at supporting the digital economy. The government expects the new policy package, dubbed the e-commerce road map, to create 1,000 “technopreneurs” and $130 billion in business value by 2020.

    The road map is intended to better protect national interests and give priority to small and medium enterprises and start-ups, and will offer grants or subsidies to boost their chances of surviving in the tough e-commerce industry.