AppWorks’ highly anticipated Demo Day brings the best of both AppWorks Accelerator #23 and Wistron Accelerator #1.This particular demo day will feature 21 (16 + 5) startups, with many in the NFT / blockchain space to give you a glimpse into our digital future. Among these rising stars, we’ll also have international teams joining us from Singapore, the US, and Hong Kong.
This past half year, AppWorks Accelerator recruited 34 teams across AW#23, of which 8 are focusing on NFTs specifically, while 5 teams are focusing on DeFi / other blockchain solutions, 11 teams on Southeast Asia, and 14 teams on AI/IoT. It is one of the largest and most diverse batches to-date, with 66 founders in total who span across 16 different nationalities. Over 20% of them are women and 45% of the founders are serial entrepreneurs.
We’re also pleased to officially unveil the first batch of Wistron Accelerator. Over the past 6 months, AppWorks has been working with Wistron, one of the world’s leading ICT manufacturers, to identify and cultivate startups that can help the organization charter new avenues of growth over the next decade, whether that’s through technology partnerships or PoCs.
You can find a brief introduction to each pitching team and founder below:
AppWorks Accelerator #23
1. Numbers
A decentralised photo network for creating community, value, and trust in digital media
If you are an investor or corporate representative and need more detailed information about the teams or want to connect with AppWorks Accelerator #23 or Wistron Accelerator #1 founders, please email us at [email protected].
【If you are a founder working on a startup in SEA, or working with AI, Blockchain, and NFT, apply to AppWorks Accelerator. to join the leading founder community in Greater Southeast Asia.】
事實上,我們還有更大方向的討論,就是我們要選擇 To B (面對企業用戶的服務) 或 To C (面對個人用戶的服務) 的商業模式。我們覺得 To B 的模式比較不容易 Scale up,一次做一個案子,也許可以賺到一些錢,初期現金流可能比較穩,但如果要做兩倍大的案子,可能團隊規模也需要等比放大到兩倍。另一方面,To B 要配合客戶的需求,對我們來說,也比較不自由、不那麼有趣。
若是走 To C 的模式,如果我們可以做出一個夠好、我們自己也喜歡的產品或服務,用戶數的成長空間將非常寬闊,真的可以看到因此為人們帶來更大的影響力。當時,已經有不少高效能的公鏈出來,各種交易所更是比比皆是,反而比較大的問題在使用者體驗,因此選擇 To C 模式、切入錢包這個題目,這倒是有很高的共識。
Edwin: 從另外一個面向來說,To B 比較像是企業客戶出考題,跟對方聊完,就會知道他要與不要什麼,我們需要解決哪些問題。To C 則完全相反,就是要從市場反應中快速調整,逐漸做出現在的樣子,我們在過程中也做過一些市場調查,但做出來的成果,就是會有一些人喜歡、一些人不喜歡,比較像是我們自己要去發掘問題,出考題給自己去解決。
但也正因為這樣,我自己覺得做 To C 有一種比較浪漫的感覺,尤其是在區塊鏈產業。就有一種眾志成城的感覺,看著用戶數量慢慢累積起來的過程,很有趣也很有成就感。
Editor’s note: AppWorks is proud to be participating in Pace’s Series A. Together with our founder community with more than 400 startups, we’d be helping team Pace paving their way to enter Taiwan market. The press release from Pace as below:
・Series A investors include Japan’s Marubeni Ventures, South Korea’s Atinum Partners, Taiwan’s AppWorks, Indonesia’s Alpha JWC, and Singapore’s UOB Venture Management, Vertex Ventures Southeast Asia, and Genesis Alternative Ventures
・Funding from local investors supports and strengthens Pace to forge ahead with its expansionary plans to Japan, Korea, and Taiwan
・Pace took only a year to grow into a Pan-Asian BNPL provider and is on track to hit Gross Merchandise Value run rate of USD1 billion in 2022
Pace, a Singapore-based fintech solution company that allows customers to ‘Buy Now Pay Later’ (BNPL), today announced that it has raised USD40 million in its Series A investment round. Investors that joined the round include UOB Venture Management (Singapore), Marubeni Ventures (Japan), Atinum Partners (SouthKorea), AppWorks (Taiwan), and a series of family offices from Japan and Indonesia. Previous investors, Vertex Ventures Southeast Asia, Alpha JWC, and Genesis Alternative Ventures also participated.
Turochas ‘T’ Fuad, Founder and CEO of Pace, said: “This investment from some of the most successful and established investors signals confidence that Pace is a leading BNPL player in Asia. The region is expected to become the world’s fastest-growing BNPL market, and this funding supports Pace in achieving its mission of democratizing financial services for all, by helping us pave our expansion into Japan, Korea, and Taiwan.”
“We are impressed by Pace and the founder’s clear vision, rapid growth, and experience not only in BNPL payments but in its progress in creating financial inclusion, and remain confident in their ability to revolutionize financial services. With this funding, we are excited to join them on their journey forward,” said Paul Ng, Executive Director at UOB Venture Management.
Joon Oh, Executive Director, Atinum Partners Co., Ltd, commented: “The financial services industry in Asia is shifting dynamically, but Pace has managed to establish primacy in markets by tapping into local consumer curves to establish itself as a dominant player with its clear vision. Through this funding, we hope for Pace to continue empowering more people across Asia with innovative fintech services.”
Following this investment round, Pace is now the fastest growing multi-territory BNPL player from Singapore. The new funding will go towards expanding technology, operations, and business development, to hit a Gross Merchandise Value run rate of USD1 billion in 2022 and grow its user base by 25X over the next 12 months.
To date, Pace has more than 3,000 points-of-sale across the region, driven by Pace’s ability
to increase overall sales up to 25% by leveraging local customer insights, while driving
repeat purchases from Pace’s fast-growing base of users.
Chua Joo Hock, Managing Partner of Vertex Ventures SEA and India, added: “Since leading
its seed round, we have seen Pace grow by leaps and bounds. It has demonstrated
excellence in expanding its users and merchants significantly to become a leading regional
BNPL player. BNPL will become more prevalent in Asia, and our continuing funding in Pace
reaffirms our belief in the strong execution capability of T and his team, and the hyper-
growth prospects of the Company.”
Launched in 2021 by Turochas ‘T’ Fuad, Pace has successfully grown its overseas
operations by working closely with regulators and adapting ultra-local approaches, such as
integrating frequently used in-market payment methods to build resonance with merchants
and shoppers. It will continue to replicate a hyperlocal framework as it goes live in new
countries.
Currently, Pace allows consumers to split their purchase bills into three equal interest-free
payments over 60 days, through an omnichannel experience that helps consumers spend
sustainably.
Pace aims to create financial inclusion for consumers in the region, by helping them take control and shop on their terms, while helping merchants meet the increasing consumer demand and scale sales efficiencies.
About Pace
Pace is a fast-growing multi-territory fintech solutions company from Singapore with a mission to democratize financial services across Asia. It aims to build a banking engine that can operate across countries easily to help merchants create sales efficiencies and provide consumers with an option to spend sustainably. Its “Buy Now Pay Later” (BNPL) solution for offline and online merchants matches customers with appropriate spend limits and allows them to split their purchases over three equal interest-free payments. Pace currently operates in Singapore, Malaysia, Hong Kong, and Thailand. For more information about Pace and how it sets out to achieve its vision to become Asia’s future digital banking engine, visit https://pacenow.co/.
【If you are a founder working on a startup in SEA, or working with AI, Blockchain, and NFT, apply to AppWorks Accelerator to join the leading founder community in Greater Southeast Asia.】
David is an Associate mainly focused on investments. He previously lived in the US, but was drawn to the Greater Southeast Asia region by the growth opportunities and the wonderful people here. He spent the first five years of his career as a consultant at IBM, where he became intimately familiar with the enterprise software and services needs of Fortune 500 companies. Later, he focused on building predictive models and solving optimization problems for large companies, and gained an appreciation for the role of data and algorithms in our lives. He joined AppWorks in 2020 after receiving his MBA from Columbia Business School, and also has a B.S. in Mathematics from the Ohio State University. In his free time, he tries to stay active and is always looking for opportunities to hike or trek, often seeking the trail less traveled.
In “The Market for Lemons,” George Akerlof described frustrated sellers of high-quality used cars not fetching a fair price because the prospective buyers were unable to distinguish between high-quality used cars and low-quality ones (known as “lemons”), that on the surface looked identical. Sellers could only find takers at a discounted price taking into account the possibility they were buying a lemon. Those who have experienced swift price depreciation upon driving a new car off the lot know this well intuitively. Eventually, sellers of high-quality used cars leave the market, as they cannot be fairly compensated due to the market’s inability to appraise their vehicles fairly.
A new study suggests that the same applies broadly to entrepreneurs. It is impossible for companies to 100% accurately appraise the capability of job applicants and current employees. Hiring managers tend to assess talent based on traditional credentials, such as educational background and work experience at prestigious schools and companies. And managers tend to assess current employees through a combination of perceived signals, personal bias, and company politics. Those who may be highly capable but lack traditional credentials or particular signals sought by senior management (akin to the frustrated sellers of high-quality used cars) withdraw from the labor market and ultimately choose entrepreneurship instead, a path to earnings not constrained by uninformed buyers of labor on the market.
Going from unhireable to startup founder may sound fanciful, but there are some high profile examples. Brian Acton’s capabilities were not accurately assessed by Facebook and Twitter, where he failed to pass the interviews in the summer of 2009. By November, he joined San Jose State University dropout Jan Koum in starting WhatsApp, which the duo later sold to Facebook for US$19 billion.
Many immigrant entrepreneurs face the same choice when they arrive in a new country that does not recognize their foreign degrees or accomplishments. They can either work low-level jobs not requiring any credentials, or they can start small businesses and capture more of the value of their talents.
More precisely, the study finds that entrepreneurs tend to be those whose talents are better than the credentials and abilities readily observed by outsiders. When we choose to go work for someone, the company retains our productivity minus our wage, which is based on the company’s assessment of our “market value”, or the cost of replacing us with another worker who shares similar backgrounds and experiences. Those who feel that the gap between their productivity and their market wage is too wide can take the entrepreneurial plunge and, if everything works out, capture the entire value of their productivity.
A separate but related finding was that “entrepreneurs have higher cognitive ability than employees with comparable education.” If those with comparable educations exhibit comparable signals and end up at similar jobs and companies, it suggests that many entrepreneurs decide they’re out of place, “cognitively” speaking, even when surrounded by similarly credentialed peers at their job. Their boss might see them as just another employee, but the would-be entrepreneur believes this is wrong, and that they should be several titles up, running entire departments or even the whole company. They can’t fathom how the ship is being run, and since the company can’t evaluate their true value and compensate accordingly with much higher responsibilities and pay, they decide to run their own ship.
On the flip side, those underperforming yet well-credentialed workers that exhibit positive observable signals can’t believe they’re getting paid so much to add so little value. They would thrive in a large corporation that is blind or apathetic to the fact that the worker is capturing the gap between their high wage and their scant contributions. These lucky workers would find no incentive to pursue entrepreneurship, where the market would discover their true value.
Intuitively, I think this makes sense and matches what I have observed at AppWorks. A lot of great founders have elite degrees and prestigious work experience, but they look around at their workplace and think: “This is a great gig but I’m capable of so much more in this life.” Other great founders went to average schools or were late bloomers stuck at middling companies and didn’t have any luck applying to elite companies and jobs, perhaps due to their lack of pedigree. They couldn’t bear delaying greatness any longer and took matters into their own hands.
I asked a couple of our portfolio companies’ founders for their take, including Wayne Huang, co-founder and CEO of Taiwan-based XREX (AW#17), a neo-fintech that solves dollar shortage issues for cross-border merchants in emerging economies that recently announced a US$17 million financing.
“I can quite relate to this,” the second-time founder said. “It was just obvious to me that I wouldn’t be happy with the employment opportunities that I had when I graduated. I was just not going to be happy. That part I understood very well.”
Indah Maryani, co-founder of InfraDigital, a company digitizing Indonesian schools’ data and billing, had frustrations as an employee at a previous startup. “You’re not an owner or an investor. You don’t own the vision; others are driving it. We said it should be done another way, but it was hard to convince the others. So my co-founder and I said, let’s create another company and build it ourselves,” she says. So they did.
Of course, this is an academic study. It would be presumptuous to suggest that an entrepreneur’s or employee’s motivations are purely financial (though the study did control for several correlates of entrepreneurial choice, such as worker wealth, risk-taking, locus of control, and other demographic features). I would also argue that the capability to add economic value is not the same as the capability to add entrepreneurial value.
But it does shed light on some of the common thoughts and fundamental drivers of entrepreneurs. “I’m more capable than this.” “I feel out of place among my coworkers.” “Is this all the impact I’m going to make in this life?” “My work is useless or misguided, and I can’t believe my boss can’t see it.” “Why am I working so hard for these wages?” “I’m not getting the respect I deserve—let me prove that I’m way more capable than this.”
After simmering in these types of thoughts, entrepreneurs of all colors make the jump, despite how scary, lonely, and risky the journey is. They move toward the entrepreneurial abyss, despite skepticism by their peers, doubts by observers, and mockery by salaried workers, all things that exist in today’s society which values so much name brands, stability, and validation by others. Despite risking being viewed as overconfident, egotistical, or doing it because they can’t find a good job, they set out on the journey anyway. They have a special drive that enables them to do this, and perhaps part of that drive for some entrepreneurs is the information asymmetry between actual talent and perceived talent.
I suppose you could say we’re lucky that this information asymmetry exists. Without it, some founders would instead find high-level jobs, having his or her hands on the wheel while adding great value at great companies, getting richly compensated, and perhaps even being able to spin their divisions off while having significant equity ownership. Instead, they embark on the difficult road of entrepreneurship, and in the process create massive value that only a startup founder could possibly create — more value than they ever could have imagined. Making lemonade out of lemons.
【If you are a founder working on a startup in SEA, or working with AI, Blockchain, and NFT, apply to AppWorks Accelerator to join the largest founder community in Greater Southeast Asia.】
Editor’s note: Congratulations Tiki on closing their latest round of financing, we are thrilled to back Tiki. Looking forward to collaborating with the team in the future. The press release from Tiki as below:
Tiki, the all-in-one e-commerce and supply chain has announced the completion of $258 million investment into Vietnam with its 5th funding round.
Led by AIA Company Limited, this investment also had the participation of a global, diversified set of experienced investors in e-commerce and digital economies such as Mirae Asset-Naver Asia Growth Fund, Taiwan Mobile, AppWorks, Yuanta Fund, and STIC Investments – one of the largest investment firms in South Korea, also Tiki’s current shareholder.
Despite global market uncertainties, especially in the context of the Covid-19 pandemic in the last 2 years, Tiki has consistently achieved double-digit growth. In Q3 2021, significant sales increases were recognized within most of the marketplace’s products and services. The fresh grocery delivery service TikiNGON set a new record with an exceptional year-over-year growth of 2,000%. TikiNOW 2H, the super fast delivery subscription service, tripled its active user base. TikiPRO, the scheduled delivery, and installation service also enjoyed a 150% increase in gross merchandise volume y.o.y.
During the pandemic, users appreciate Tiki’s continuous effort to double its selection and triple its product categories, particularly in TikiNGON’s menu, a timely response to customers’ urgent need of fresh/grocery delivery. For merchants and businesses, the e-commerce platform also ramped up its TikiNOW express delivery offerings, logistics capabilities, a competitive listing fee as well as other value-added services. Tiki is also known as the pioneer in adopting innovations like automation and robotics, which helped double its fulfillment capabilities.
Tiki dedicates the $258 million investment to logistics and “Make in Vietnam” technologies – which are two cornerstones in its value propositions as a leading digital platform. The investment not only emphasizes Tiki’s vision of being an integrated infrastructure of choice for all customer and business needs but also reaffirms the commitment of Tiki to grow Vietnam’s digital economy.
On the digital services front, Tiki collaborates with AIA to develop an insurtech platform offering a wide portfolio of insurance products and financial services, aiming to help customers save significant time and effort in a 10-year comprehensive exclusive agreement. The project will be officially kicked off upon the launch of AIA’s health insurance products on Tiki, tentatively by the end of this December. With this solution in place, customers will be able to consult insurance offers as well as make insurance claims directly right on the platform.
“We always have a unfazed conviction and passion about the potential and growth of Vietnam’s e-commerce and digital economy. The $258 million investment dedicated only to Vietnam proves Tiki’s long-term commitment to building world-class infrastructure, whether they are technologies, supply chain capabilities, talents development, and jobs creation… to turn potential into reality, hence creating sustainable values for Vietnamese users and businesses. We are humbled and greatly appreciate our investors who share the same vision, and the trust they place in Tiki’s members, Vietnam market, and talents” – said Tran Ngoc Thai Son, Founder, CEO of Tiki.
“This unique and first-to-market partnership starts a new era of personal life insurance in Vietnam. Together, united by a shared vision to deliver seamless health and protection to Vietnamese families, we will focus on three distinct areas: Lifestyle benefits and innovative distribution; distinctive digital health & wellness offerings, and other financial & e-commerce propositions. We believe with Tiki’s existing assets and market leadership, we can bring an accessible and enhanced customer service proposition to make a positive difference in the lives of the people of Việt Nam. We are very excited to extend AIA’s Vietnam’s market leadership and work together with our partner, Tiki.” – said Wayne Besant, Chief Executive Officer of AIA Vietnam.
“We have a very positive outlook for Vietnam’s economy, digital transformation, and e-commerce growth. In particular, as a leading local e-commerce company in Vietnam, Tiki is providing differentiated and valuable services to Vietnamese consumers. Tiki has been improving the credibility and convenience of Vietnam’s e-commerce market through its high-quality products offering and fast and accurate delivery. Today, we are witnessing the rapid advancement of technology-led disruption of the consumer sector and we see Tiki as one of the companies that can lead this wave and growth in the area. Further to Tiki, Mirae Asset and Naver plan to more aggressively expand its investment in Vietnam’s advanced tech companies in the future.” – said Jikwang Chung, Managing Director, Mirae Asset Capital, the strategic investment arm of Mirae Asset.
“We are extremely excited to be part of Tiki’s growth journey. We look forward to the partnership between Taiwan Mobile/Momo(*) and Tiki, and aim to provide the best products and services to our customers.” – Tim Lee, Vice President, Taiwan Mobile.
“STIC Investment first invested in Tiki since Series C in 2018 and keeps supporting them by an additional investment each year. Tiki’s customer loyalty, high-quality product, and delivery, as well as proven operational performance, gave us strong confidence for this round. We are always willing to have a long-term partnership with companies in Vietnam with the strong management team, sustainable competitive advantages, and high growth potential.” – said Hongjin Kim, Managing Director, STIC Investments.
“AppWorks are proud to support Tiki on their journey going forward. Tiki has been a long-term infrastructure builder for 11 years in order to provide better service to its customers. With the rapid growth of Vietnam’s eCommerce, customer satisfaction is the foundation of competitiveness. We believe Tiki will nail it with their innovation and execution.” – said Jessica Liu, Partner at AppWorks.
Founded in 2010, with 11 years of establishment and development, Tiki has become the leading e-commerce Vietnamese platform with up to 4.000 employees and 20 million registered customers. Tiki ecosystem includes the e-commerce marketplace Tiki with up to 30 diverse categories, Tiki Trading – a retail subsidiary with millions of authentic products, and TikiNOW Smart Logistics – an integrated supply chain platform owning 20 Fulfillment Centers and Warehouses with a total area of nearly 80.000 m2.
With a strong commitment to delivering authentic products at competitive prices, together with fast delivery, Tiki has achieved remarkable milestones with numerous awards, including The most trusted e-commerce marketplace (Nielsen, 2019), Top 10 Best Brands in Vietnam (YouGov, 2020), and Top 1 E-commerce Brand with best customer experience (KPMG, 2020).
(*) Momo mentioned is the leading e-commerce platform in Taiwan.
About Tiki:
Tiki is a leading all-in-one commerce platform in Vietnam, including the trusted e-commerce marketplace, TikiNOW Smart Logistics – an integrated supply chain platform, and Tiki Trading – a retail subsidiary.
Tiki stands for “Tim Kiem” (Searching) and “Tiet Kiem” (Saving), which is also the vision and mission for the business: becoming a destination where customers can search for anything they want, save their time and budget.
【If you are a founder working on a startup in SEA, or working with AI, Blockchain, and NFT, apply to AppWorks Accelerator to join the largest founder community in Greater Southeast Asia.】