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ISSUE 17 September/October 2017
A NOTE FROM THE EDITOR
CONTENTS
We are living in a globalized and connected world. Technology and the Internet have changed the way we think, work and live. No longer do we exist as single entities, but as a global unit. As our society changes, the startup ecosystem continues to change. In this issue, Jumpstart has invited experts from the Hong Kong, Singapore and China startup ecosystems to examine the unique characteristics of their startup headquarters and founding locations. If you have ever wondered if one of these startup environments fare better than the rest, this is the issue made specifically for you. The startup CEOs and managing directors from each location will prove to us which location is good… and which better. But, at the end of the day, despite living in a competitive world, we still remain a part of a connected universe, linked together by a common desire to make the world a better place to live in for all through novel ideas and transformative technologies.
MARKETING INSIGHTS......................... 2-3 Consumer Behavior in Shanghai, Hong Kong and Singapore
Sharon Yuen Associate Editor
KIDTREPRENEURS IN THE MAKING.......6-7 Jumpstart Kids 2017
YOU'RE GOOD, I'M BETTER ................. 9-28 Hong Kong vs Singapore vs China
MEET OUR TEAM Managing Director: James Kwan Head of Operations and Content Strategy: Kaden Ng Associate Editor: Sharon Yuen Associate Director of Content Development: Chloe Wong Associate Director of Content Operations: Tiffany Wong Graphic and Digital Marketing Specialist: Eugenia Mok Director of Community Engagement: Anita Chan Director of Product Development: Maggie Lau Community Engagement Specialist: Justin Tan Community Evangelist (Silicon Valley/LA): Li Xing Chang
Contributors: Ashley Galina Dudarenok Paul du Long Joseph Phua Siu Rui Quek Daniel Walker Jasen Wang SL Ho Min Chen Geetanjali Dhar Interviewees: Allan Zeman Simon Loong Steven Lam Lilian Leong Jingkang Liu Yangliu Special Thanks: John Chew Joyce Ngo Peach Poon
Founder/Advisor: Yana Robbins Advisors: Derek Kwik Leo Ku Jumpstart is available at over 500 locations in Hong Kong, Singapore, and China.
LOOKING INTO THE BURGEONING HONG KONG STARTUP SCENE Steven Lam, Co-Founder & CEO, GOGOVAN DEMYSTIFYING THE HONG KONG STARTUP SCENE SL Ho, President, Connector THE PRIDE OF HONG KONG ENTREPRENEURISM Allan Zeman, the “Father of Lan Kwai Fong” START IN HONG KONG, SCALE IN CHINA Simon Loong, Founder & CEO, WeLab GOING GLOBAL, STAYING HONG KONG-ISH Lilian Leong, COO, 9GAG BATTLE OF THE JURISDICTIONS Paul du Long, Managing Director, Otonomous (Hong Kong) SINGAPORE’S DIGITAL LOVE JOURNEY Joseph Phua, Founder & CEO, Paktor BEYOND THE BORDERS OF SINGAPORE Siu Rui Quek, Co-Founder & CEO, Carousell HONG KONG VS SINGAPORE Daniel Walker, Founder & CEO, Dragon Law THE GROWING MAKER MOVEMENT FOR YOUTHS Jasen Wang, Founder & CEO, Makeblock CHOOSING YOUR LOCATION IN CHINA Jingkang Liu, Founder & CEO, Insta360 CHINA’S CHALLENGES IN APP-BASED BUSINESSES Yangliu, Founder & CEO of FotoPlace FSC.pdf
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Jumpstart Magazine Jumpstart Media
Copyright © 2017 Jumpstart. The contents of the magazine are fully protected by copyright and nothing may be reprinted without permission. The publisher and editors accept no responsibility in respect to any products, goods or services that may be advertised or referred to in this issue or for any errors, omissions, or mistakes in any such advertisements or references. The mention of any specific companies or products in articles or advertisements does not imply that they are endorsed or recommended by this magazine or its publisher in preference to others of a similar nature which are not mentioned or advertised. Published articles do not necessarily represent the views or opinions of Jumpstart Media Ltd. Printed by Magnum Print Company Limited. 11B E-Tat Factory Building, 4 Heung Yip Road, Wong Chuk Hang, Hong Kong.
Shanghai, Hong Kong and Singapore: Consumer Behavior and Marketing Strategies By Ashley Galina Dudarenok
D
igital marketing in Asia focuses on millennials and young, urban professionals in big cities. They’re digital natives at home with social media, online platforms and global trends. Shanghai, Hong Kong and Singapore have some similarities, but we must also keep in mind their regional differences. Here are some key differences between the regions.
SHANGHAI
China’s millennials are shaping the future of commerce. Totalling over 400,000,000 in population, they are a consumer superpower. Aged 19 to 35, they grew up during China’s economic reform and benefited significantly from the country’s increased prosperity. They’re selective and willing to spend on quality, thus propelling the growth of the premium market. The big players in China are WeChat and Weibo. WeChat is a “must have” app and dominates the mobile world. It functions as a social e-commerce platform. Weibo has up to 340,000,000 monthly active users and about 154 million people use the site daily, 91% via mobile. The cornerstones of digital marketing in China are campaigns, KOLs (Key Opinion Leaders) and live streaming. Live streaming is hugely popular and is also supported by e-commerce platforms like Taobao and Tmall. Giveaways, online polls and user-generated content collection campaigns are the most common ways to involve the audience. KOL engagement is very effective as KOLs bring public credibility a ready-made audience. They can do product reviews, product recommendations or live streaming which all help brands communicate directly with consumers.
Case Study
E-commerce combined with live-streaming is flourishing in China. Mogujie, an e-commerce platform, embeds links to their shopping interface so that viewers can purchase items while they watch their live streams. This attracts millions of viewers due to the speed and ease of purchasing. This kind of selling mode has created a 236% rise in Mogujie’s customer retention within 30 days. However, it is important to remember that although China is the world’s largest e-commerce market – generating a total revenue of about 4 trillion RMB – physical stores still remain important, and customer satisfaction with physical stores remains higher than with online ones. 2
JUMPSTART September/October 2017
HONG KONG
With a population of 7.3 million, Hong Kong has a large group of consumers with stable spending who take price, quality and after-sales service into account before buying. Hong Kong consumers spend their spare cash on entertainment, holidays, vacations and new clothes. The skincare and cosmetics market is also big. In terms of social media, Instagram, Facebook and YouTube are the top channels in Hong Kong. 53% of Hong Kong Instagrammers follow brands. The most popular online platform is Facebook. There are about 4,400,000 Facebook users in Hong Kong – which is more than 50% of Hong Kong’s population. Many log in to Facebook every day and spend an average of 30 minutes per visit. Most online video viewing is on YouTube, and video ads influence around 33% of Hong Kong consumers.
Case Study
Hong Kong Airlines launched a Facebook campaign to reinforce its brand positioning – “Fresh and very Hong Kong.” A mini-movie, “Love Returns”, featuring the local singing group Shine, was posted on Facebook and YouTube. There were two endings and viewers chose the version they liked most. If they wanted, they could also write an ending of their own. It received over 140,000 views on YouTube and over 2,000 likes in 9 days.
Image from Hong Kong Airlines “Love Returns” campaign
Yet, offline campaigns in shopping malls are still the most common with discounts, festive themes or music shows to draw shoppers. Sometimes, offline campaigns are promoted with posts on Facebook to help boost traffic. Live streaming platforms aren’t big in Hong Kong. KOLs are mostly active on Facebook, Instagram or YouTube, but using KOLs is not as common as it is in the Shanghai market.
SINGAPORE
Singapore has a population of 5.6 million who enjoys a high standard of living with a per capita purchasing power higher than most European countries. Singaporeans are not only brand conscious but also very loyal and cautious, possibly due to consumer maturity as the median age there is 40.7 years old. 60% of consumers buy products online at least once a month. 87% of the consumers prefer e-payments, the highest rate in Southeast Asia.
Case Study
A good example would be Shilla Duty Free Shop’s Facebook page and WeChat account, launched in 2014. Through interactive campaigns, their Facebook page attracted more than 56,000 followers within 8 months. Its WeChat articles went viral and the page views doubled, raising brand awareness domestically and overseas. Image from Shilla Duty Free Facebook Page
Since Singapore’s internet usage is among the highest in the world, online and offline campaigns are both important. Google, Facebook and Instagram are the top platforms, with Facebook and Google acting as the biggest platforms for advertising that results in higher bid prices. Google is used by at least 90% of people mostly as a search tool. There are 3,500,000 monthly active Facebook users in Singapore. Instagram is the most popular photo-sharing platform. 63% of connected consumers use Instagram with 18% using it at least once a month. Retail stores often run promotional campaigns in shopping malls with complementary coupon giveaways and lucky draws on Facebook and Instagram. As for live streaming platforms, Bigo Live is the most popular, but it’s used more for self-expression than for marketing purposes. Some companies cooperate with Singaporean influencers to make promotional content on Facebook or Instagram. Although the three markets have some similarities in terms of market demographics, purchasing powers and shopping preferences, there are also regional differences that must be kept in mind when planning a marketing strategy. Businesses are wise not to consider the three as clone markets. About the Author
Ashley Galina Dudarenok is an entrepreneur and a marketer with a strong focus on Mainland China and over 12 years of experience in the region. She established Alarice International and ChoZan and is now running her personal blog “Ashley Talks”. Visit ashleytalks.com to learn more about social media, consumers and the market in China.
2017
““
This This summer, summer, wewe had had two two wonderful wonderful Jumpstart Jumpstart Kids Kids sessions, sessions, featuring featuring 1616 up-and-coming up-and-coming startups. startups. The The kids kids were were immersed immersed inin the the skills skills necessary necessary toto become become anan entrepreneur, entrepreneur, including including design design thinking, thinking, public public speaking, speaking, teamwork teamwork and and many many more. more. We We also also helped helped them them launch launch their their very very first first crowdfunding crowdfunding campaign campaign forfor a published a published book book that that details details their their entire entire experience experience atat Jumpstart Jumpstart Kids. Kids. Jumpstart Jumpstart began began this this program program solely solely forfor the the benefit benefit ofof our our future future generation, generation, asas anan attempt attempt toto inspire inspire today’s today’s children children toto explore explore their their entrepreneurial entrepreneurial spirit spirit and and reach reach their their creative creative potential. potential.AllAll profits profits generated generated from from p program p this this program will will bebe donated donated toto charity. charity. We We hope hope that that our our non-traditional non-traditional learning learning curriculum curriculum will will not not only only provide provide aa memorable memorable and and fun fun experience experience forfor the the kids, kids, but but also also encourage encourage them them toto take take risks risks inin their their future future entrepreneurial entrepreneurial endeavors. endeavors.
””
SESSION SESSIONA AJULY JULY3-7 3-7
SESSION SESSIONBBAUGUST AUGUST7-11 7-11
Jumpstart JumpstartKids Kidsisisaaweek-long week-longmorning morningsummer summerprogram programthat thatallows allowskids kidsaged aged8-12 8-12totodiscover discovertheir theirinner innerentrepreneurial entrepreneurialspirit. spirit. Throughout Throughoutthe theweek, week,aawide widevariety varietyofofstartups startupsare areinvited invitedtotoprepare preparecreative creativeworkshops workshopstotointroduce introducethe theskills skillsneeded neededtotostart startaa successful successfulbusiness. business.Each Eachday, day,the thekids kidsare areencouraged encouragedtototackle tacklecreative creativechallenges, challenges,push-forth push-forththeir theirinnovation innovationand andenhance enhancetheir their collaborative collaborativeskills skills- -all allininthe themost mostunconventional unconventionaland andfun funway waypossible. possible.
Silence of the Entrepreneurs What Stoicism Says About Startup Culture by Min Chen
S
toicism appears to be making a Michael Jordan circa 1995-level comeback after a two-millennium hiatus. Popularized in Silicon Valley by the omnipresent Tim Ferriss, Stoicism is a school of thought that originated during the Greco-Roman Empire, and hails Marcus Aurelius and Epictetus as its early leaders. History’s greatest thinkers, including Mill, Emerson and Wolfe, were admirers of Stoicism, but its explosive rise as of late is truly remarkable - its main proponents are none other than entrepreneurs. Your monotone developer friend may come to mind when you hear the word ‘stoic’, but Stoicism resembles little of this contemporary understanding. This school of thought centers around the notion of control, drawing a line between what we have control over (i.e. our own thoughts and actions) and what we don’t (i.e. nature, the actions of others, etc.). Emotional displays about the latter are not only pointless but obstacles for achieving ‘eudaimonia’, which roughly translates to ‘human flourishing’. Stoics further this rational and deterministic method by promoting the four virtues of temperance, courage, justice, and wisdom. So the question is: why are entrepreneurs attracted to Stoicism and what does this say about them? If we try to identify the motivation behind why someone would choose the entrepreneurial path, problem-solving would likely emerge as the universal catalyst. The insufferably clichéd ideas of ‘changing the world’, wanting to improve the lives of others and invariably working towards our own self-actualization are never far from the entrepreneur’s mind. Internalizing and applying one’s knowledge are key aspects of Stoicism because they reflect self-awareness. As Marcus Aurelius states in Meditations: “Waste no more time arguing about what a good man should be. Be one.” In an environment where people pop nootropics like they’re Bradley Cooper in Limitless or forgo food for the sludge that is from Soylent, to say that startup culture is obsessed with productivity seems like a gross understatement. Aside from Pre-Trumpian Presidents, it’s safe to say that no other demographic is as protective of their time as entrepreneurs; this is evident in the volume of apps geared towards productivity. Time is also the Stoic’s most precious commodity, and they
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JUMPSTART September/October 2017
don’t waste it on matters outside their control. Rather, they are pragmatic and address issues with neither worry nor excitement. Instead of crying about the aforementioned President (like I did and continue to do), a Stoic would simply look to the next election and move on. In The Discourses of Epictetus, Epictetus claims that men should be “sick and yet happy, in peril and yet happy, dying and yet happy”. As confounding as this may sound, it underpins the principle that every minute spent indulging in our suffering is a minute wasted because everything in life is ephemeral. Stoics see every failure as an opportunity to learn and grow, even if their newly launched product has a tendency to explode or if they’ve been ousted from the company they founded. For a career path where the possibility of failure lurks at every turn, seeing failure and success as an immutable part of life is not only immensely beneficial, but the key to staying sane. Some philosophers are dismayed by the modern repackaging of Stoicism as a ‘life hack’ or into inane byproducts as ‘Stoicon’ (yes, like Comic-con). Worse still, as with every pop philosophy phenomenon, the startup world is guilty of molding an ancient school of thought into something that’s convenient for its culture. Maybe Stoicism will someday land itself in the self-help section of the bookstore, but its pervasive influence doesn’t seem to be going away anytime soon. After all, its practical application for problem-solving, while notably embraced by entrepreneurs, is something we can all use more of. ■
About the Author
Min Chen is the Senior Marketing & Brand Manager for Garage Society, a regional cowork operator and entrepreneurial hub. She moved to Hong Kong two years ago after having lived in Boston, Shanghai, and the UK.
Scaling Up Your Business
S
uccessfully scaling up a business is in many respects a massive leap of faith. It can mean generating new revenue streams, capturing new markets, hiring a team, or expanding brand awareness. If you have your finger on the market’s pulse, it can lead to exponential growth.
1. Personal Branding
Be a master at creating a bigger than life public profile, just like Steve Jobs. It’s a people-to-people (P2P) world and, as the leader and visionary of your company, other people (read: customers, investors, advisors, strategic partners) naturally want to know more about you. So, invest in building yourself as a brand.
2. Engage to work ON your business, not IN it
Delegation and decentralization of responsibilities, along with reasonable amount of power, ensure that you have enough time and energy to focus on the key activities that move your business strategically forward. Identify and focus on the backbone activities and risk-secure that framework. Hire smart, build a strong team so you can take yourself out of the printad.pdf 3 16/8/2017 12:50 PM critical daily fire-fighting path. Once this
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stage of nirvana has been achieved, thereafter, the house better be burning down before anyone interrupts you while you are working on your business.
3. Got a number cruncher?
So, how exactly do you go from $1 million to $10 million? Not all entrepreneurs will have a family wealth that funds your business expansion. Being in the thick of running a business, you most likely will not have enough capital to run it on your own. To manage this, you need to draw upon the crunching expertise of a trusted and seasoned finance person. You need to be able to package and present your business as an irresistible proposition to your investors, which would also protect your ownership interests. Giving up a bit of control to the investors is worth the cost as the gains from their expertise and experience are intangible but invaluable. Start looking for a finance-whiz, if you haven’t already!
by Geetanjali Dhar In other situations, once you have a proven model, franchising will let you scale much faster than managing every location. Therefore an agile and adaptable mindset is most beneficial.
5. Not reactive but proactive!
An important aspect of scaling effectively means anticipating demand, not merely reacting to it. Having a competent growth strategy in place from the very start is indicative that scalability was embedded into the company’s business DNA – you should start long before your customer base started expanding and the demand started pushing you to scale up. Based on meticulous research, your business must offer consistent value propositions to the relevant customer demographics in the new locations. Networks are of critical importance to facilitate this. ■
4. Licensing, franchising or subsidiary?
At times, a market may already have well established players, so one has to be flexible and open to evaluating the possibility of making them partners, rather than trying to out-market them.
Photo credits to Tracy@Frame & Fame
About the Author Geetanjali is the founder of Sanskriti. She is also a board member of Women Entrepreneurs Network Hong Kong and a co-founder of IBET – a charity based in Hong Kong.
WHAT MAKES YOUR STARTUP HOME? In honor of the theme of this issue, Jumpstart interviewed startups from around the world to find out what makes their startup home their “startup’s home”. We spoke to startup founders about how they view their country of origin and compared the responses from Hong Kong, Singapore and China. We discovered that startups generally have an affiliation to their founding country. The startups coming from different regions identified key characteristics of their startup ecosystem that makes their founding location unique. Check out the results below and look at how different startups think about their home!
SINGAPORE
HONG KONG
CHINA
WHAT DEFINES THIS LOCATION FROM OTHER PLACES? convenience
legal system
government support
internal market size
local culture
legal system
international connections
local startup ecosystem
access to external markets internal market size
government support
legal system
local culture
international connections
government support convenience
internal market size international connections
convenience
access to external markets
access to external markets local startup ecosystem
local startup ecosystem
local culture
WHICH LOCATION DO YOU THINK HAS THE BEST SUPPORT INFRASTRUCTURE? Hong Kong
China
China Singapore
USA
USA
China
Singapore
USA
WHERE IS THE BEST PLACE TO FIND WORKERS?
China
Singapore
Hong Kong
Others Others
Hong Kong
USA
Singapore China
USA
China
USA
Singapore
DID YOU KNOW? Total number of startups in Hong Kong in 2016
1,926 3%
35%
overseas/ mainland China
Origins of Hong Kong startup founders 2016
Hong Kong returnees
62%
Hong Kong locals
sources: startmeup.hk, oddup, cb insights, techinasia
Singapore has unicorns (>US$1b)
2
Singapore’s average startup valuation in 2016
US$56.3m
China’s tech companies attracted
US$56.1b in disclosed investments in 2016
23%
of all unicorns are located in China
Looking into the Burgeoning Hong Kong Startup Scene with Steven Lam, CEO of GOGOVAN
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OGOVAN is a pioneer of the sharing economy in Hong Kong. In every densely populated city, there is a large fleet of delivery vehicles, as well as a high demand for last-mile logistic solutions. Founded in 2013, GOGOVAN is the first app-based on-demand delivery platform in Asia that connects idle delivery vehicles with users who are in urgent need to deliver goods. Steven Lam, the CEO of GOGOVAN was only 27 years old with no full-time corporate work experience when he founded the company. He and his co-founders Nick Tang and Reeve Kwan started the company with only around US$2,500. Now, the company has over 300 employees around the world. Its metamorphosis from a humble startup to a multinational company became an inspiring story for entrepreneurs in Hong Kong. While GOGOVAN has quickly expanded into 6 regions and 13 cities, the startup ecosystem in Hong Kong has also been burgeoning in recent years. Entrepreneurship was not even a thing in Hong Kong a few years ago. Now, there are around 2,000 startups in Hong Kong. In the early 2010s, there were only 3 co-working spaces. Now, there are close to 80. Having been part of the Hong Kong startup community since its infancy stage, Steven has witnessed its enormous transforma-
10 JUMPSTART September/October 2017
tion. He has kindly walked me through GOGOVAN’s journey and shared his vision for the Hong Kong startup ecosystem. Steven became an entrepreneur right after graduating from college. For Steven, launching his business in Hong Kong was a natural choice. Born and raised in Hong Kong, Steven is able to better understand user behavior in his hometown, and thus, makes it easier for him to find out how to build a product that fits the market. Regardless, Steven believes that Hong Kong is the perfect hub to scale across Asia. “Hong Kong’s biggest competitive advantage is that it has a strong international background that enables startups to enter not just the China market but also the Southeast Asia market,” Steven explains. “Also the talents from Hong Kong have a better knowledge about expanding to these regions.” The biggest challenge that GOGOVAN faced in its expansion was cultural adaptation. Different regions have different customer preferences and requirements in logistic services. GOGOVAN has to localize a lot of its business strategies – from differentiation and segmentation of target audiences to localization of marketing campaigns. For instance, GOGOVAN is rebranded as Kuaigou Express (快狗速运) in China. The formula of success in Hong Kong may not apply elsewhere.
by Kaden Ng
For many Hong Kong startups, China is the natural starting place for expansion, but GOGOVAN has chosen Singapore as their second market after Hong Kong. “We found that Singapore shares a lot of similarity in terms of market behavior with Hong Kong.” Steven elaborates, “China is very different in terms of the logistics market that we are in, from service quality to vehicle selections. Also, Singapore provides an easier business environment for companies to start there, as the legal and company requirements are relatively open and easy to follow, just like in Hong Kong.” While Hong Kong is known to be a gateway to the China market, Steven warns us that Hong Kong’s advantage may fade as China matures. Without a doubt, Hong Kong people have a long history of doing successful business in China. From business owners in property development, restaurants to professional services, a lot of them started in Hong Kong and expanded quickly in China. Hong Kong also has a lot of talents in law, accounting and consulting, allowing Hong Kong companies to move faster than the mainland players. Examples like these enable Hong Kong to be the bridge between China and the West. But this phenomenon will eventually fade away as China grows faster and become more mature.
Hong Kong
With a business footprint in Hong Kong, Singapore and China, Steven is no stranger to their startup ecosystems. In terms of infrastructure, Hong Kong is still playing the catch-up game. “China has a lot of venture capitalists who are willing to invest in startup companies, whereas Singapore has a lot of good policies and infrastructure which supports startups.” The Hong Kong government has been playing a supportive role to the startup community. Steven recalls that when he first launched GOGOVAN, the company had only an initial capital of around US$2,500. Just before the funding ran out, GOGOVAN received funding from Cyberport – an entrepreneur hub owned by the Hong Kong government – twice to continue their journey. GOGOVAN went on to join the Cyberport Incubation Program. “Throughout the 4 years of our GOGOVAN journey, we have received numerous support and valuable advice from Cyberport as well as business networking opportunities,” recalls Steven.
But Steven stresses that there is much more that the government can do. “There is always room for improvement, especially when you look at all the amazing things that different governments around the world have been doing to push the technology and innovative development.” “The Hong Kong startup ecosystem is getting better and better compared to 4 years ago when we started. However, when compared to other regions like Silicon Valley, Singapore, and Beijing, the Hong Kong community and the government still need to do a lot more to build a healthy ecosystem,” says Steven. Instead of simply pouring money into the startup community, the government should also take concrete steps to build a culture of innovation. Steven studied at UC Berkeley, which is located in Silicon Valley. The entrepreneurial culture there has left a profound impact on Steven. “People in California are a lot more willing to build their own startup businesses, and this encouraged me to set up GOGOVAN when I came
Demystifying
H
ong Kong’s ICT industry contributes only 6.6% to the city’s GDP. Tech companies and startups haven’t been the focus, despite the fact that Hong Kong has all the building blocks necessary to become a top innovative city in Asia. The question then becomes: Can Hong Kong catch up quickly in the new digital economy and excel to become a tech leader? When people think about the startup ecosystem in Asia, they think about the huge market size and strong investment power in China or the
back to Hong Kong,” says Steven. When he was still a student there, Steven worked extra hard to make money to pay off every dollar of his tuition. He sold first-generation iPhones on eBay, fixed cars (by learning how to do so from YouTube), and provided lunch delivery services for an Asian restaurant. All these experiences prefigured his entrepreneurial journey in Hong Kong. Steven enumerates a list of things the Hong Kong government should do to build an entrepreneurial culture: First, the government should lead by example by embracing technology. Early this year, the Singapore government launched its own chatbot. But for the Hong Kong government, its website has not been revamped for many years. Some of its pages and services are not even mobile friendly. Second, the government should encourage the use of new technology in our city. Automated driving is an example. The Singapore government has already started a pilot scheme to test the technology last year, sending a positive message to the society that they welcome innovations. But in Hong Kong, there is not even a conversation on how to adopt this kind of new technology in our city. Third, the government should help the community bring relevant talent from around the world to Hong Kong. The ability to attract and retain global talent is a pillar of success for every flourishing startup ecosystem. The future of Hong Kong’s startup scene is bright, but it will shine more brightly if the Hong Kong government works with the local entrepreneurs side by side to shape the city’s future. ■
The Hong Kong Startup Scene
well-developed and supportive startup environment in Singapore. Although the growth of new startup companies is slowing down, China still has a total of over US$100 million of investment for startups, which is a very good reference for foreign entrepreneurs who are considering China to be the place to launch their startups. On the other hand, the Singapore government provides a wide range of support for entrepreneurs to start their businesses, including around 20 types of financial support in the forms of funds, grants, incubation, loans and tax incentives. There are no less
by SL Ho
than 52 incubators and accelerators in Singapore that nurtures startups by providing business connections, workshops, mentors, and funding opportunities. With its strong infrastructure and efficient judicial framework, Hong Kong has been an international financial and business hub. Hong Kong is also one of the world’s most business-friendly cities. Yet, the city is lagging behind when it comes to innovation and technology. We all understand that it’s important to move fast in order to catch up. But to do this, we must first understand how we can use what we have to do better. ▶ 11
◀ Myth 1: Hong Kong lacks the resources to boost innovation.
You may be surprised to find that the Hong Kong government has started to allocate resources and discuss policies aiming to encourage innovation and support startups since 2000. Back then, the Innovation and Technology Commission (ITC) was set up. Its aim is to foster an innovation and technology culture in the community and promote technological entrepreneurship. It was not until 2015 did the government formally set up the Innovation and Technology Bureau (ITB), which was expected to be the facilitator and coordinator within the government, as well as among businesses and entrepreneur communities, on matters related to the development of innovation and technology. With a mission of formulating holistic policies, the government allocated no less than HK$8.7 billion of funding to support the development of technology in Hong Kong since then. This added the fuel to the incubation and accelerator programs managed by Hong Kong Science and Technology Parks Corporation (established in 2001) and Cyberport (established in 2003). Meanwhile, InvestHK has also been making efforts in strengthening Hong Kong as Asia’s leading international business center and attracting overseas investment to the city. These show that Hong Kong does indeed have abundant resources for tech companies and entrepreneurs, whether local and overseas, to set up and expand their businesses in Hong Kong. The missing piece is the strong tie needed to ensure a smart use of the resources.
Myth 2: Hong Kong lacks investors.
Hong Kong has inherited many advantages from its international financial center position, like our strong and transparent banking and finance system, our well-established legal framework that favors businesses and investment, and our abundant professionals in the field. Investors and millionaires in the city have always been looking out for new investment opportunities, while PE funds and boutique investment firms are eyeing the TMT sector. Somehow, Singapore seems to have more aggressive investors and larger investment deals in the startup scene. What’s the difference? In Singapore, Temasek is a state-owned investment firm that has long been responsible for sustainable investment and for contributing to the government’s revenue. The setup helps boost the startup’s investment and innovation desires and shapes the innovation leader position of Singapore. Even though Hong Kong doesn’t have a similar arm like Temasek, the city 12 JUMPSTART September/October 2017
Jumpstart moderating the APEC Startup Ecosystem Roundtable with Connector at the HKTDC Startup Zone last April
is filled with active investors and funds. More overseas investors choose Hong Kong as their base. There has been a growth in angel investors and funds that favor startup investments in the past two to three years. Other than the experienced Hong Kong-based investors, such as 43 Ventures, there are also groups of seasoned venture capitalists launching new funds to focus on early-stage value investment in tech startups in the city. Hong Kong has the potential to become more than just a gateway to China, but also one of the global hubs for startup investment.
Myth 3: Hong Kong lacks innovative talent.
Did you know that there are over 24,000 university graduates every year in Hong Kong? There is never a shortage of well-educated workforce locally, particularly those with a strong background in global business management, finance, law and other professions that support the ecosystem. Some may go so far as to say that Hong Kong does not have scientists and engineers. The reality is that Hong Kong has over 8,300 graduates every year from science, mathematics, engineering, and computer science. In ICT alone, we have roughly 2,300 graduates yearly, and local universities have a lot faculties and departments in those respective subjects. However, despite the continuous flow of fresh graduates, not all continue their careers in technology and engineering, and much less become entrepreneurs. One reason for this is a result of the dominance of traditional industries. Graduates tend to join large corporations and financial institutions for a relatively stable job, more visible career path and higher paycheck. Academia should not solely focus on chasing after the number of research
papers, but also on bringing a real impact to the society through nurturing talent that can think big and solve problems that matter. The good news is that we have seen positive changes in recent years. Universities are now integrating entrepreneurial education into their curriculum and encouraging interdiscipline education. For example, Hong Kong University of Science and Technology offers a minor program in Entrepreneurship, through the joint effort of its School of Science, School of Engineering, and School of Business and Management. This will certainly help students better understand what an entrepreneurial life is like, how to start and run a business, how to commercialize innovative solution, and how to explore new frontiers and new business opportunities, etc. This will encourage students to be bold and creative in taking on an entrepreneurial journey or in joining startups and tech companies. Hong Kong has a future in becoming the ideal hub for innovation. Let’s ride on the digital wave in Asia. ■
About the Author
SL Ho is the President of Connector, an open platform that brings the right resources to entrepreneurs and businesses in Asia, including co-working spaces, talents, training resources, corporates, government resources, and investors. SL was the Program Director of the Google EYE Program 2016.
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The Pride of Hong Kong Entrepreneurism
An Interview with Allan Zeman
by Sharon Yuen
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our eyes are the windows to your soul, they say. Staring at the wise, knowing eyes of Allan Zeman, the Father of Lan Kwai Fong and an entrepreneur through and through, I realize how much truth this clichéd statement holds. Throughout the conversation, I simply cannot look away from his captivating gaze. This is a tell-tale sign of just how valuable and true-to-heart the lessons about entrepreneurism he departed with are. Not just any entrepreneurism, but Hong Kong entrepreneurism. So listen careful, young grasshoppers, the Wise is about to speak. The history of Hong Kong is a long and winding path. We’ve come from a small fisherman village, to a British colony, to being handed back over to the Chinese administration system. This has made Hong Kong incredibly unique and international, but it has also caused problems. The most troublesome of all? The constant battle of Hongkongers about their identity: “Am I Chinese? Am I Hong Kongese? Am I British?” These questions have plagued generations of
14 JUMPSTART September/October 2017
Hongkongers, but not Allan Zeman. The Father of Lan Kwai Fong has no identity crisis. Allan Zeman feels Chinese. Allan Zeman is Chinese. There are a handful of cities in the world that are great – New York City, London, Paris, Hong Kong. Zeman has always felt that Hong Kong ranks alongside all the great cities in the world. The low tax base in Hong Kong, the independent judiciary, the rule of law… these have helped Hong Kong achieve its name in the world. Allan Zeman may have grown up in Canada. He may have had a Canadian passport. But he has lived in Hong Kong for 48 years. His family, kids, even grandchildren have established their roots here. He has been here for so many years, done so many things, from Lan Kwai Fong to Ocean Park, to sitting in on various government boards. 12 years ago, Allan Zeman thought to himself, “Canada? I haven’t been back to Canada in 15 years.” At the time, he didn’t even know what was going on in Canada! He was a Hongkonger at heart. While many Chinese people went to Canada to get a Canadian passport, he
decided to do the opposite. He decided to change his nationality to Chinese. Today, Allan Zeman’s passport is Chinese and his nationality is Chinese. Chuckling gently, Zeman pronounces to me that he is an egg – white on the outside, yellow on the inside. “This is my home. We do not have another home. We are very much part of Hong Kong. This is how confident I am in Hong Kong and in China.” Young people in Hong Kong are really very innovative, but we will be forsaking our talent if we stayed at where we are now. The financial industry is not the only place that will hold our futures. “Hong Kong has a good, young innovative crowd,” Zeman relays to me confidently. Hong Kong specializes in services. Financial services, for one, has been very strong. Because of this, many parents believe that finance is the place their kids should be. But Zeman has spotted a problem. The disruption of other industries, especially fintech, is something that Hong Kong is falling behind on. Hong Kong needs to step up. In China today, cash and credit card are antiquated devices. Everything in China is about Alipay or WeChatPay. The payment system in Hong Kong may have started to change, but the Hong Kong Monetary Authority is very slow at accepting change and so are the people. We sacrifice change for the comforts of safety. “Super safe,” Zeman reminds me. What Hong Kong youngsters need to realize is that Hong Kong is a place of opportunities – not just in the financial industry, but in every industry.
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As long as you have an idea and a dream, Hong Kong is the place to create opportunities. But, always, include China.”
Hong Kong
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There is no better place in the world than Hong Kong. “As long as you have an idea and a dream, Hong Kong is the place to create opportunities. But, always, include China. China has 1.3 billion people. What is going on in Shenzhen is incredible. Shenzhen is the Silicon Valley of China. As far as I am concerned, Shenzhen is the Silicon Valley,” Zeman states. There is so much innovation in Shenzhen, and even more great companies. Take WeChat and Alibaba as examples. Today, WeChat has 960 million users and is changing the way people live. Alibaba is changing the way people shop. As a result to these new words from new companies, like Taobao and Tmall, people themselves are being changed! Turning back to Hong Kong, Zeman notes that what this means to Hong Kong young entrepreneurs is that they must concentrate on getting into the China market. The Hong Kong market is okay, but it is simply not big enough to create huge businesses. “We are part of China. Don’t fight it. Accept it, be a part of it, and use it to your benefit. At the end, you will be much happier. China is changing very rapidly. Remember, I’ve been here for over 48 years; I’ve seen so many new things develop in China.” This is why Zeman decided to take the spirit of LKF to China. “China is one word but is also 40 different countries, because each province in China has a different culture.” Given this, Zeman knew that when he opened LKF in China, he had to understand the culture. When he took LKF to Chengdu in Sichuan, he realized that the people there were very different from the people in Guangzhou. “Chengdu people may not have as much money, but they love hotpot, live for spicy food and drink a lot of tea.” Zeman remarks jokingly, “Now, that includes Starbucks.” With this, he discovered the laidback lifestyle that is prominent in the city there. In the southern part of China, people love partying, love going out, and love playing Mahjong. And so, Zeman adapted his business accordingly so that
Lan Kwai Fong would be a place that the people feel comfortable in. Turning to another example, Zeman shares his experience starting LKF in Shanghai – a very different story. “The Shanghainese are a cultured bunch. They adore oily food and always appear at their best.” Looking intensely at me, Zeman continues, “You’ve got to understand, wherever you go in China, you have to understand who your customers are. Whatever business that you are going to do, you need to understand the culture – what the people like to do, what they don’t like to do. Fit in your product so it adapts to your customers. Look at your product and company through your customer’s eyes, not as a boss. Don’t become arrogant. Criticize it. Ask yourself – why would you buy your product? What’s different about this, as compared to your competitors? These are things that you’ll have to keep challenging yourself in order to come out on top.” Technology is changing the world very quickly. The startup worlds have no secrets. Singapore is another innovative place, but Allan Zeman will still take Hong Kong over Singapore. “The culture of Singapore is still rather restrictive. There are many traditional regulations that have survived from Lee Kuan Yew’s governance. But the key difference between the two locations is that Hong Kong does not live in a cultured box.” China, however, is another story. Shenzhen is leading and is above Hong Kong. Yet Hong Kong can shine with our laws and freedom. The Hong Kong system is free and opened – we can say what we want and think what we want. “This is the beauty of Hong Kong. Whereas just across the border, there is still some control.” Zeman asserts, “What Shenzhen can’t do, Hong Kong people should be doing.” Precisely because of how close the two locations are, Zeman is convinced that the future bay area will be made so that innovators can cooperate and collaborate. Hong Kong should be collaborating with Shenzhen. By next year, Hong
Kong will have the high-speed railway between Guangzhou, Shenzhen and Hong Kong, and the Hong Kong-Macau-Zhuhai Bridge – both resulting in speedy commutes. “These things will bring everyone closer together. Hong Kong’s border will expand.” Zeman, not tearing his eyes away from mine, announces, “This gives us an opportunity to live in a new world and gives everybody a great chance to expand their businesses.” There is one secret weapon that the Hong Kong startup scene has – the Hong Kong Spirit. “Hong Kong has always had a can-do spirit. Nothing is impossible.” Everybody wants to know where Hong Kong will be 5 years from now. Having worked with the new CE for 11 years in Ocean Park and West Kowloon Cultural District, Zeman believes that her heart is in the right place. Youths are discouraged because of the high property prices and social problems that they are presented with, but Allan Zeman has faith that the government will work on new things that will make it easier for people’s livelihood. “What we need to anticipate next is overhauling the education system that is falling behind.” Students in Hong Kong are more familiar with technologies than their teachers. We need to look for a way for Hong Kong to continue innovating and leading. From his experience, Zeman knows that we will always come back to becoming leaders. “Have the can-do spirit, think about tomorrow – Hong Kong is a place filled with opportunities. Once we have all this,” Zeman says, smiling, “there is no better place in the world than Hong Kong.” And even though I have not revealed who I am throughout the conversation – For who am I really? Nobody. – Zeman says, “Hopefully you have learnt something. You guys are the future. It’s up to you.” “I’m counting on you.” And he leaves, the twinkling in his eyes still sparkling in mine. ■ 15
Start in Hong Kong Scale in China
Interview with Simon Loong, Founder and CEO of WeLab
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intech, in recent years, has become a buzzword in both the financial industry and the startup community, signifying an unstoppable transformation of the financial sector driven by technology. This word also has a natural affinity with Hong Kong, as the city is internationally known as one of the world’s leading financial centers. Hence, many people believe that fintech is in the blood of Hong Kong. When looking forward, one question that many people may have in mind is: will Hong Kong emerge as one of the world’s leading fintech hubs? Simon Loong, the Founder and CEO of WeLab – a leading Hong Kong fintech startup with a near-unicorn valuation, is an expert in the Hong Kong fintech scene. Founded in 2013, WeLab operates WeLend, Hong Kong’s leading online lending platform, and Wolaidai (我來貸), one of China’s largest mobile lending platforms. They have secured a US$20 million A round from Sequoia Capital and Li Ka-shing’s Tom Group in early 2015. 12 months later, they closed an impressive US$160 million B round led by Khazanah Nasional Berhad – Malaysia’s state fund, along with ING Bank and Guangdong Technology Financial Group.
16 JUMPSTART September/October 2017
Simon has kindly shared his experience in launching a fintech startup in Hong Kong, his view on the strengths and limitations of Hong Kong as a fintech hub, and the challenges he faced in tapping into the China market.
How WeLab started
Before launching WeLab, Simon’s last corporate role was Standard Chartered’s Regional Head of Northeast Asia, where he managed the personal loan and credit card businesses. With over 10 years of experience in retail banking, he discovered a once-in-a-lifetime opportunity to revolutionize the lending industry for the better. From day one, WeLab’s vision is to democratize finance. Getting a loan through traditional lending institutions is expensive for the average customer. It takes a lot of time and the customer experience is quite poor. WeLab resolved these problems through launching WeLend – the first online-only lending platform in Hong Kong. Without the need to operate any branches and maintain a large sales team, those traditional costs are not passed to customers. Also, the customers are not required go to a physical branch and get in line to speak with a
by Kaden Ng
credit officer, because now, they can simply apply for their loan online, resulting in a much better customer journey. WeLend also leverages AI technology to analyze unstructured mobile big data to make credit decisions for individual borrowers. This enables a rapid loan approval process that can go as quickly as 21 seconds. To date, the company has processed over US$1 billion worth of loan applications and recorded zero fraud losses.
Hong Kong’s strengths and weaknesses as a fintech ecosystem
Having chosen Hong Kong as WeLab’s home, Simon lists numerous strengths of Hong Kong. These include: World-class business infrastructure: Hong Kong has a world-class business infrastructure, making it easy to start businesses. Large pool of financial talents: As a traditional finance hub, Hong Kong has an abundance of financial talent. Access to capital: Startups and incubators are surrounded by a plethora of global investors and financial institutions with the ability to lead funding rounds. Proximity to China: Hong Kong is right next door to the biggest market in the world.
Hong Kong Perfect testbed: Launching startups is predominantly about product-market fit. Hong Kong’s highly concentrated population of 7 million makes it the perfect testbed for startups to test new ideas before expanding regionally. But Hong Kong does have certain weaknesses that could hinder its ability to become a leader in fintech. Simon points out that the Hong Kong startup scene is still lagging behind as compared to its peers in the region, such as Singapore. There is also a limited supply of tech talent as there are too little tech companies, resulting in a weak ecosystem for tech talent. Nonetheless, Simon believes that such tech talents do exist in Hong Kong, and it is simply a matter of time before Hong Kong develops a strong tech community. However, Simon emphasizes that while Hong Kong is an ideal place to launch a fintech startup, it is not the end game. “What is of ultimate importance is whether a company can scale beyond Hong Kong,” says Simon.
Scaling into China
After the success of WeLend in Hong Kong, WeLab has expanded into China and has launched Wolaidai – a mobile lending app targeting high-income young professionals. Thus far, the platform has generated over US$20 billion in applications in China.
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What is of ultimate importance is whether a company can scale beyond Hong Kong. Simon points out that localization was one of the main challenges they faced. Being a Hong Kong company does not necessarily have an edge when it comes to blending in with the Chinese culture and understanding the China market. WeLab recognized early on that they would need to rely heavily on local talent to penetrate the market. They spent an extensive effort in building a separate China management team. “It is important to understand the similarities and differences between the two markets in order to craft the appropriate strategies,” stresses Simon. That being said, Simon believes that Hong Kong still has its advantage of being a point of entry into China as compared to directly tapping into the China market from the beginning. “With its established and mature rule of law, Hong Kong is a great place as a launchpad into China. It is much easier to set up in Hong Kong and then expand into China,” says Simon.
Comparing the ecosystem of Hong Kong and China, Simon believes that it is meaningless to say which is better. For him, the most important thing is to find out how we can leverage the best that these regions can offer. Hong Kong has an edge in terms of financial talent and has a relatively easy-to-navigate landscape. China, on the other hand, has a huge consumer market and an abundance of tech talent. He believes that Hong Kong startups should seek to maximize the respective advantages from both regions.
The future of Hong Kong as a leading fintech hub
The fintech scene in Hong Kong is fast growing. Currently, Hong Kong is home to around 160 fintech startups with active incubators and accelerators. Simon is optimistic about the future of Hong Kong as a startup and fintech hub. Hong Kong has a world-class financial infrastructure that makes it an ideal place to launch a fintech startup. He also observes that the Hong Kong government has stepped up a lot in terms of its support to the startup and fintech industry in recent years. There has been a significant increase in incubators, accelerators and funds. In other words, Hong Kong has what it takes to be a leading fintech hub. It is now up to the entrepreneurs to leverage these resources and build their companies. ■
Hong Kong
Going Global, Staying Hong Kong-ish Interview with Lilian Leong, COO of 9GAG
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s the COO of 9GAG, I can assure you that the definition of happiness is universal. Whether in Hong Kong, Singapore, China, UK or US, differences in culture matter little to our global seeking of happiness. But that doesn’t mean that where you come from is trivial in determining who you are as a person or as a startup. Happiness is true to the heart and soul of human beings. It’s our second nature. Just as we will eat when hungry, we will find fun whenever the opportunity arises. This basic need enables our company to expand into different corners of the earth. 9GAG was founded in Hong Kong, but most of our audiences do not realize that 9GAG is a Hong Kong-based startup. Our founders are all Hongkongers. Yet this doesn’t matter to our international audiences, because the key promise of our brand is global. We don’t just share jokes from Stephen Chow. The goal of 9GAG is to bring more happiness to the people, and we are lucky to have humor as our springboard for expansion. The only difference to happiness is the tone and manner to which fun is delivered. Coming from an advertising background, I can ensure you that the brand positioning and execution cue of an ad will remain the same across countries, only the tone and manner will be different. Similarly, 9GAG will display different forms of humor. After all, the works we show are uploaded and created by our users. You may find more slapstick comedy in Thailand and in-your-face humor in India. At the end of the day, we are living in a world controlled by our mobiles and the Internet. We are a melting pot of different races, temperaments and skin colors. Humor transcends across markets. Be it in a South-East Asian country or a
Western country, no matter in Hong Kong, Singapore or China, we all appreciate humor in the same way. What one must realize is that the rise of digital media has broken geographical barriers. When I was young, the only way to reach out of my country was to pay a few dollars and find myself a Pen Pal. My first Pen Pal was from the Netherlands. Now, all you have to do is hit Like on Facebook or Follow on Instagram, and you will see what someone else sees, learn what someone else learns and feel what someone else feels across borders. If you compare the lives of Generation Zs across Singapore, China and Hong Kong, their lives are pretty much the same. Having grown up in the digital era, to them, the world is a global one. Their hopes, worries and aspirations will be very similar – where should they go after class? Where should they take their partners on dates? How did they do in their last exam? Where will they go for university? These questions will be the same, and these will be reflected through the content that can be seen at 9GAG. This, however, does not mean that where one comes from is irrelevant to one’s identity. My being COO of 9GAG is irrelevant to my identity. I proudly identify as a Hongkonger because we all abide by the Hong Kong Spirit. I could brag about Hong Kong having an international perspective and being backed by China etc… the classic East meets West theory. But as a Hong Kong native, I would say that the city’s sleeplessness makes the difference. From an entrepôt to our current international financial city, Hong Kong is restless. The limitless flow of energy derived from the ins and outs of cargoes, container vessels, currency exchange and tourists all bring ideas alive and push us ahead.
by Sharon Yuen It is precisely this Hong Kong Spirit that makes Hong Kong unique. To many people outside of Hong Kong, this term may seem vague. It is the common rapport that we share, knowing that nothing is the limit. If you fail, you fail – you do not find excuses. You back up and find other ways to do it. Be agile. Be adaptive. And most important of all, be street smart. This has been the philosophy of Hong Kong from my grandparents’ generation to mine, and to the future generation. We will always find our way out. But allow me to let you in on a secret – at the end of the day, as a startup founder, executive or employee… where you come from doesn’t determine the level of your success. Knowing the answers to the important questions, like “Where are you?” “Where would you like to go?” “How would you be able to get there?”, does. If you have the faith and passion, you will be able to make it in your endeavors, regardless of where you physically are.
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“The grass is always greener on the other side” is a phrase only applicable to losers. The truth is that “the grass is always greener on the other side” is a phrase only applicable to losers. If you are proud and have strong convictions about what you’re doing, you won’t have second thoughts about how your journey would have been different. Nor does it matter if you are good but I am better. We do not have time to ponder on such afterthoughts. We all just do our best – now, that is what really matters. ■
About Lilian Lilian Leong is a branding veteran turned startup executive. Now, Lilian is the COO of 9GAG, a top social media publisher with 1.7 billion monthly video views. 19
Battle of the Jurisdictions – Singapore vs Hong Kong
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hen we think about the fintech space, there are two jurisdictions constantly battling for the number one spot – Singapore and Hong Kong. Singapore is seen as the premier hub of innovation. It is pushing the boundaries of innovation by proactively providing tools for startups to become established and start conducting business. This is especially attractive for new entrepreneurs who are looking for initial guidance and support, as well as potential funding opportunities. There is a wide range of (government) support programs that give entrepreneurs the opportunity to experiment without the fear that often comes with early-stage ideas. Otonomos started after being accelerated by Startupbootcamp at One-North’s BASH cluster. These clusters make it easier to find new talent and investors from both local and foreign backgrounds, which allowed our company to grow fast and close our angel funding round within months. Singapore is known for its ease of doing business, which becomes apparent in the speed of visa applications and the tax and audit exemptions for young companies. The government attempts to take a proactive stance regarding regulation, understanding that strict rules hinder innovation. From the beginning, we had an ac-
tive dialogue with the government where we had little interference until you reach a critical mass. Don’t think you can circumvent the rules though. Some finance-related ideas might require a licence. However, good hearted ideas are generally nurtured. In our case, the government swiftly came out with their regulatory stance on several Blockchain issues. Hong Kong, on the other hand, is a place where fortune favors the brave. The city thrives on business and offers unlimited opportunities when you learn to work within the systems. The moment you set up a company in Hong Kong, you will be accelerated into a community that does business with the largest players in the world. There is a stronger emphasis on networking to develop partnerships within your industry. Being surrounded by business leaders who are interested in conducting business will excite the true entrepreneur. However, the regulatory framework is more risk averse, making an entrance into the market more tedious. To counter those challenges, organizations, like InvestHK, Cyberport and the numerous Chambers of Commerce, can help you. Nevertheless, the ecosystem is more geared towards established ideas, where the accelerators focus on funded startups. Be that as it may, you will connect with an unbelievably wide range of people from tech to fashion to lifestyle.
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Being a Singapore-based startup
During the time of Parktor’s founding, the Singapore government was actively encouraging entrepreneurship. The government was giving out many grants to help startups grow, not only in Singapore but regionally as well. You can say it was a perfect timing for us because with these grants, we managed to launch in 12 other countries just 6 months after we started. With these grants, the startup scene really started to boom in Singapore. We had talents from all over the world coming to our shores to setup their businesses. Singapore was starting to become a melting pot of startups. We started seeing more VCs setting up offices in Singapore and, again, we were at the right place at the right time and could pitch to many VCs. 20 JUMPSTART September/October 2017
However, that didn’t mean pitching for funds was a stroll in the park. We met with many VCs and, in the end, only two gave us an offer.
Importance of going regional
From the start, my co-founders and I knew that we had to go regional if we were to be a successful company. Singapore was the perfect testbed for us with its world-class infrastructure and educated population. Till today, all product-testing is done in Singapore before we roll out to other markets. However, the market size is just too small for sustained growth. A concrete business plan was vital and we recognized that having multiple business units would be beneficial. That’s why we started GaiGai, our offline dating agency in Singapore and expanded the business to Malaysia, Taiwan and most recently Hong Kong, where we named it HeyDouble. In November, we merged our business with Taiwan’s top live-streaming company 17 Media to form M17 Entertainment. With the various business units, we are moving towards becoming a company with a global presence.
Love is universal.
Here are some of our dating stories. We had our first Paktor baby! Baby 奕帆 was born
by Paul du Long
Both governments recognize the potential opportunities that startups bring to the business ecosystem. Singapore approaches their offering with more of a helping hand to new entrepreneurs, providing a great environment for early-stage startups. Hong Kong takes a different approach that allows entrepreneurs to accelerate their business - this is often most appealing for the seasoned entrepreneur who will find unparalleled opportunities in Hong Kong. ■
About the Author
Paul is the Managing Director of Otonomos (Hong Kong) Limited. Otonomos, originally founded in Singapore, is an online dashboard that manages your entities entirely online. Paul lived in Singapore for almost two years and recently made a big change in the environment by relocating to Hong Kong this year. Before Otonomous, he started several startups in the Netherlands, mostly combining his passion for business, blockchain and technology.
Singapore’s Digital Love Journey – A Paktor Perspective
y roots are in Singapore. When I was studying in the US, I got out of a long-term relationship and decided to test the different dating apps available on the market. Upon using the apps, I became really excited because I saw the potential to start such services in Asia. Upon coming back to Singapore, I started Paktor with my other two co-founders. Now, I can look back and see how my founding location made a difference to our company.
by Joseph Phua
in September 2015, and his parents met each other on Paktor and got married. Another happy occasion we celebrated recently was a marriage stemming from Paktor. Paul and Bernice both work for the same multi-national bank in Singapore. Paul had always noticed Bernice, who is from another department, but he could never muster the courage to speak to her. You can imagine Paul’s surprise when he found Bernice’s profile on Paktor, and as they say, the rest is history! The couple married earlier in the year. ■
About the Author
Joseph Phua is an avid entrepreneur and the founder of Paktor. He founded Paktor after being “dumped” from an 8-year relationship. Prior to being an entrepreneur, he worked in the consulting and banking industry and spent a few years in luxury retail while based in Shanghai.
Singapore
Carousell
Beyond the Borders of Singapore by Siu Rui Quek
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hen Carousell first started five years ago, we were one of the first handful of startups in Singapore. Our role models were companies like tenCube and Zopim — both of which were acquired by McAfee and Zendesk respectively. Singapore’s startup hub, Blk71, used to be an old flatted factory block. The factory was supposed to be torn down, but the Singapore government decided to experiment with the space and used it to house startups, investors and incubators instead. This leap of faith and support from the government and private sector played a pivotal role in encouraging the growth of more innovative startups in this region. When we moved in to Blk71 in 2012, it was half occupied. Today, the original experiment has grown to encompass five blocks with many more startups, incubators and accelerator programs. We’ve also seen about a dozen or so VCs with about $50 million funds set up in Singapore, from the likes of Golden Gate Ventures, Rakuten Ventures, Jungle Ventures and Monk’s Hill Ventures. VCs are crucial because they give you the capital and runway to stay focused on doing what’s most important today and allow you to take a long-term view when building a startup.
HK vs Singapore?
The way I see Hong Kong and Singapore is that there is so much potential for more collaboration between the two, especially within the startup space.
The startup ecosystems in Singapore and Hong Kong are both fairly nascent. Even though the two markets are often viewed as economic competitors, there is a lot to be learnt from both sides, as many tech companies are still in the early stages of growing their businesses. The cities share many similarities, with good infrastructure, relatively limited space but a high population density. The socio-economic factors are also similar with a high smartphone penetration rate and higher disposable income. It’s important that we work together to build up Asia’s ecosystem. We both have roles to play, with Hong Kong as the gateway to China and Singapore as the gateway to Southeast Asia. The reason why the concept of Carousell works well in Hong Kong is because the city shares so many similarities with Singapore. However, the journey was not without its own set of challenges. Language was initially a problem when we first expanded into Hong Kong. We learned that the Chinese in Hong Kong is a unique blend of traditional Chinese and Cantonese. When we were starting out, staffing our team in Hong Kong was also an issue. It was difficult to find people who were willing to work in a scrappy, lean startup environment in a remote location! But after a long arduous search, we now have an awesome, dedicated team of five serving the Hong Kong market. Finding the right talent isn’t a problem unique to Hong Kong. It is a global problem. We faced similar issues when we were starting out in Singapore.
Many people were not ready to consider working in a startup and preferred to work in banks or big companies. Having a career in a startup is still not culturally accepted in both Singapore and Hong Kong, but it’s changing!
Eyeing the world
Carousell has grown over the last 5 years. We have seen how people’s evolving needs have resulted in more listings and greater demand in higher value verticals, especially cars, jobs and services, and property. Hence, we are also focused on growing our presence in those high value verticals. This also ties in with our goal to become the number one classified marketplace in the world. With footprints in seven key markets, our end goal is to grow a community of people around the world who share our belief that changing the way we consume can make life more meaningful. Our purpose is to be more than just a transactional platform. Building a world-class team with the right values, diversity and talent is essential in serving a global community. Looking forward, we will remain laser-focused on improving the buying and selling experience for our users, we also want to inspire connections and the exchange of stories in our marketplace. While we are incredibly excited to be where we’re at, we like to remind ourselves that we still have a long way to go. ■
About the Author
Siu Rui is a co-founder of Carousell and is responsible for setting the overall strategy and direction for the company. Since the launch of Carousell in 2012, together with 3 other cofounders, Siu Rui has been deeply involved in product strategy, international expansion and growth. He is passionate about technology and has been buying and selling online since he was 13. This has been a driving force behind Siu Rui’s commitment to building a product-focused company that is focused on solving meaningful problems for people globally.
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Singapore
Hong Kong vs Singapore A Dragon Law Perspective
T
he question of whether Singapore or Hong Kong has a better startup ecosystem is a tough one for us to answer. First founded in Hong Kong in 2012, Dragon Law opened an office in Singapore in 2016. Having worked across both countries, we are big fans of how the startup ecosystems in these Asian countries have provided prime environments for founders and hustlers. Here, we weigh up the similarities and differences between the Hong Kong and Singapore startup ecosystems.
Singapore: strong government support & a bustling startup scene
If there’s one thing that Singapore is ahead on, it is the level of government support there is for nurturing the startup space. Structurally speaking, the Singapore government got into the startup game earlier than Hong Kong, developing platforms such as the IDM Jump-start and Mentor (i.JAM) initiative, a micro-funding initiative introduced ten years ago that has now invested in over 250 startups. Recognizing that fuelling the startup ecosystem would require risk-taking individuals who are willing to dive into the startup scene, the government has also actively promoted entrepreneurship among students. NUS Overseas Colleges (NOC), a program organized by the National University of Singapore (NUS), gives university students the opportunity to undertake an internship in startup hubs, such as Tel Aviv, Silicon Valley and Shanghai, while undergoing courses at partner universities. Prominent startups founded by NOC alumni include the peer-to-peer marketplace app Carousell
and property portal 99.co. There is comprehensive support for small business owners. The Singapore Budget 2017 saw the launch of the SMEs Go Digital program, which aims to help small businesses use digital technologies to enhance their tech capabilities and participate in the digital economy. The government also launched the International Partnership Fund, which helps Singapore-based companies increase their presence on the global market. Other government initiatives include the integrated startup space BASH (Build Amazing Start-ups Here) launched by the government innovation body SGInnovate and located at JTC LaunchPad@one-north. This has long been the go-to space for the startup community. That and the bunch of co-working spaces popular among startup founders result in a bustling startup community with yearlong events and initiatives.
Hong Kong: high availability of capital & the bridge to mainland China
While the Hong Kong government decided to ride the banking industry wave a bit longer at the time of the emergence of the startup scene, it definitely has its eyes on the space. The Hong Kong government has invested in fostering platforms and schemes for the startup and tech scene to flourish. There is Cyberport that brings together the tech community, and the Innovation and Technology Fund (ITF), administered by the Innovation and Technology Commission – both introducing a range of support schemes that strengthen productivity and competitiveness among
by Daniel Walker Hong Kong companies. While Singapore is ahead in terms of government policy, Hong Kong ranks higher in terms of capital availability. As a leading financial services hub in Asia with a history of being a successful fundraising center, Hong Kong is clearly the leader in attracting investment to the fintech space. Hong Kong has also traditionally been a gateway to mainland China. Launched in November 2016, the HKMA-ASTRI FinTech Innovation Hub promises to bring together stakeholders such as banks, startups and central bank representatives to develop and trial fintech ideas. One big reason why Hong Kong will always be close to our heart is that Dragon Law was founded and built in Hong Kong. We love the Hong Kong market because we were here right from the beginning and we’ve really been able to build up supportive network. At the recent startup and entrepreneurship festival RISE held in Hong Kong, the Dragon Law team was able to meet fellow startups and advise them on how they could combat high legal fees with a quick, affordable and easy solution. On balance, both Singapore and Hong Kong are top startup hubs, not just in terms of the business environment but also as places to live and work. Ultimately, startups looking to conquer the Asian market will expand into the other market, regardless of where their first office is set up. ■
About the Author
Daniel Walker is the Founder and Chief Executive Officer of Dragon Law, the cloud legal software trusted by more than 10,000 businesses. Founded in 2012, Daniel now leads a talented team at Dragon Law of more than 60 people in Hong Kong, Singapore, New Zealand and Australia. Prior to founding Dragon Law, Daniel practised at DLA Piper, Stephenson Harwood and Clyde & Co in Hong Kong, Singapore, and the UK. Daniel received his Bachelor of Arts from the University of London and his Postgraduate Diploma of Law from the Manchester Metropolitan University.
Source: Bloomberg
23
The Growing Maker Movement for Youths
M
y favorite toy as a kid was a wooden gun. I would have been thrilled if I had an Airblock – a modular, programmable and transformable drone, or a Makeblock Neuron – an electronic building block platform. Although I enjoyed playing games with my friends in the town that I grew up in in Anhui, it would have been even more fun if we could try out the Airblock in its air, water and land mode. We could play so many more different games. I could also picture myself having a much more interesting childhood with a Makeblock Neuron. By putting a number of blocks together, I could create gadgets to safeguard my piggy bank, water my plants, or even test out our ideas through various “scientific experiments.” Kids nowadays have so many more options. They are not limited to playing certain types of games. As our technology keeps on moving forward, kids now are surrounded with virtual reality, augmented reality and many new technologies. These technologies are approachable and accessible to them in their daily lives. Using movies as an example, 2D was the only option 20 years ago, whereas, now, we can watch the new episode of Pirates of the Caribbean in 4D with an immersive experience to “feel” the actions in the scenes through the built-in motions in our seats.
by Jasen Wang
Teaching STEM
We are seeing a shift in the educational system worldwide that focuses more on interdisciplinary approaches, such as emphasizing STEM (Science, Technology, Engineering and Mathematics) education. Nowadays, kids can have more fun learning while playing at the same time. To simplify the creation process and enable everyone to enjoy “making” was why I founded Makeblock in 2011. For instance, one can build, program and control our entry-level robot, mBot, simply by using their smartphone installed on the Makeblock app. On July 30, I’ve seen one of the most interesting Makeblock projects at the “STEM in mBot 2017” competition in Hong Kong. A team of students from Po Leung Kuk Castar Primary School made a prototype of a homecare device to protect the elderly who live alone and have memory problems, cognitive disorders and slow movements. The students used our mCore main control board, color LED light module, flame sensor and ultrasonic sensors in their project to build an intelligent lighting device, a fire detection device and a fainting detection device to solve the problems faced by the elderly. This project not only showcased students’ creativity and technical intelligence, but also reflected their efforts and ability to help others with research and thoughtful considerations.
In China’s education system, we are seeing a gradual shift from focusing on test scores and achievements to focusing on the learning process. We have had more support and guidance from the Chinese government, such as through the 13th Five-Year Plan which actively explores STEM-related education. This February, the Ministry of Education also announced a new compulsory curriculum for science courses in elementary schools, making it mandatory for all elementary students to study STEM-related courses. We have also noticed recently that Girl Scouts in the United States have announced 23 new badges encouraging youngsters to develop skills in STEM and outdoor activities. These badges range from “What Robots Do” to the Junior-level “Programming Robots”. These new movements signal the future trends in improving our education, giving kids the option to learn the subjects that may help them grow in the long term. In fact, robotics and programming are playing a much more important role and they are being adopted by several schools for in-class or extra curriculum learning. Children exposed to this knowledge at an early age will have a better understanding of logical and creative thinking processes.
Roller Coaster Model Car Board Game Design Challenge Design Challenge Design Challenge
Designing Robots
Programming Robots
Showcasing Robots
Website Designer Social Innovator Science of Style mBot, the beginners’ robot, by Makeblock
24 JUMPSTART September/October 2017
Girl Scouts’ New STEM badges announced on July 25 Images from Girl Scouts webpage
China
The Makeblock neuron
The “Silicon Valley” of China
Some may call Shenzhen the “Silicon Valley of China” because of the quick prototyping factories here and the capacity to test the market before mass productions. Shenzhen is the special economic zone equipped with the top manufacturing and supply chains in China. Compared to Singapore and Hong Kong, Shenzhen is unique because of the following reasons. For startups, Shenzhen has a competitive advantage since we have various accelerators, such as HAX where Makeblock initially joined its accelerator program. These accelerators will help
startups build, test and refine their products and markets through crowdfunding platforms, such as Kickstarter. Moreover, we are also known as an immigrant city that attracts high-tech talents from all around the world. We have Grassroots Innovations incubating more startups to test out their ideas. Furthermore, we have a healthy ecosystem for technology-related startup companies to grow. Since 2011, the Shenzhen government has run the “Peacock Plan” to attract overseas high-level innovative talents and teams to come to Shenzhen and realize their dreams. The Maker’s culture is rooted deeply in our city’s DNA. ■
About the Author
Jasen Wang, founder & CEO of Makeblock Co., Ltd., is a robotics enthusiast, a product manager, and a hardcore maker. He was once ranked as one of the 30 top entrepreneurs under the age of 30 by Forbes China. After earning his master degree in Aircraft Design in Northwestern Polytechnical University in 2010 and spending a year in the workforce, Wang founded the robotics startup Makeblock in 2013 with the dedication to empower people to turn their ideas into reality. As the early entrants in STEAM (Science, Technology, Engineering, Arts and Mathematics) education, Makeblock has become one of the leading brands in the industry.
The story of Insta360 Choosing your Location in China
by Sharon Yuen
W
hile Jingkang Liu (JK), the CEO and founder of Insta360, was studying at Nanjing University, he stayed up late every night with his classmates to build a live-streaming platform to share university events and lectures online. The idea was to share some of the best moments of their college experiences with students in other schools. At the time, they needed to figure out how to give online audiences an experience that is as close to an in-person attendance as possible. This was what led JK to 360-degree photography. Afterwards, while working on the live-streaming platform, their team realized that standard live-streams weren’t enough to let an audience fully experience an event as if they were there. 360, which is as close to teleportation as the world could get, was the solution they were looking for. JK started thinking about the tools they could use to create the best 360 content. After graduating and moving back to Shezhen in September 2014, they founded Insta360. The atmosphere in China encourages young people to start their own
26 JUMPSTART September/October 2017
businesses. People are increasingly motivated and incentivized. What’s more, entrepreneurs get more social recognition than those pursuing stability in established systems. In this regard, JK believes that Shenzhen is becoming a little bit like Silicon Valley. People also think highly of those who do not follow the safe path but instead strive to make a positive impact in their own way. Entrepreneurial causes and actions are celebrated by the public and are greeted with constructive feedback from the media. Small businesses and startups in China also enjoy a lot of support by the government and the startup community. For instance, Insta360 has received support from the Shenzhen Municipal Government which has several very beneficial policies for young startups. There are also various associations and communities that bring together companies and businesspersons who want to help one another. JK joined the entrepreneur camp organized by Tencent and attended offline workshops conducted by business schools and successful corporate executives. Believing that there are abundant activities in various formats in Shenzhen
that can support young Chinese startups, JK is confident that there are plenty of opportunities for companies to learn from one another. “There is a feeling of mutual support and community – with a lot of potential for collaboration.” JK, however, believes that it is important to note that founding a startup is not without its risks. “Despite the positive and supportive environment in China, there are never any guarantees for a startup. It is up to the young people to realize and seize the opportunities.” The differences between cities can be tremendous. JK believes that all entrepreneurs have to think carefully about where to get what is necessary for their businesses to thrive. For instance, most venture capital firms are headquartered in Beijing and Shanghai. In Beijing, there is also more access to software talents. Meanwhile, hardware manufacturing costs are the lowest in Guangdong province. One has to consider all the advantages and disadvantages in order to make the wisest decision for one’s business. Insta360 is based in Bao’an District in Shenzhen, because they could find all the suppliers they needed there. As a vibrant, young
China city, Shenzhen is filled with talents and is very entrepreneur-friendly. JK believes that it is getting easier to find top talents in Shenzhen because tech giants like Huawei, Tencent, and DJI are based here, and they have been attracting people from around the world. “People who stay in Shenzhen love excitement and headlong growth, and they choose Insta360 because they see the promising future of the industry and our company,” JK says. But there are pros and cons to Shenzhen’s supportive environment and abundancy of talent and suppliers. For one, it is too easy to copy others’ ideas and quickly manufacture those products. “We find many copycats of our products here, and it’s time- and money-consuming to stop them. Also, hiring people with an international mindset can sometimes be challenging, especially for companies like ours with global ambitions.” However, JK reminds us that Shenzhen’s proximity to Hong Kong and its relative open-mindedness as compared to other Chinese cities are very useful in attracting people with an international outlook. Their team, besides having a very strong pool of local talents, also has team members from the US, Germany, the UK and Hong Kong. “We believe in the innovative spirit of Shenzhen and China, and we’re eagerly waiting for the gradual improvements made to intellectual property protection here.”
Insta360’s key to success is through listening to their customer’s feedback and understanding their needs. JK knows that some of their users use 360 cameras to record important life moments like weddings, while some use the cameras for real estate catalogues. He tries to figure out the most efficient way to address people’s needs and do it in a practical way that is accessible to the majority of people. Thinking about ideas in such a manner can sometimes help unleash innovation. The phrase “something crazy” reminds JK of the 4 industries that Insta360 sees as having the biggest potential for massive VR adoption — tourism, journalism, sports, and pornography. Some people might consider the last one as the most “crazy” as compared to the rest. Although JK is not sure how Insta360 could be involved in the creation of this type of content, he thinks it
try out tuesday (every Tuesday until October 17th)
Cowork and use our workshop for free, for a day RSVP: contact@makerhive.com.hk 10F Cheung Hing Industrial Building 12P Smithfield Road Kennedy Town, Hong Kong
is undeniable that a huge amount of cash and resources is flowing into this industry. “As usual, we know that the boldest innovators are going to be our users. Some of our users have already started asking for technical advice in order to enter this field. Whatever it is that they end up creating with our products, I’m sure it’s going to be memorable.” ■
About JK
Jingkang Liu (JK) is the CEO and founder of the leading 360-degree camera maker Insta360. After building his own live-streaming platform while studying at Nanjing University, JK started looking for ways to improve the experience. When audiences watch a live-streamed event, he would want them to feel like they were really there. That’s what led him to start exploring the potential of 360 cameras.
Gallery of Events RISE | HONG KONG 2017 Playground x Jumpstart
Interview with Allan Zeman, Father of Lan Kwai Fong
Interview with Janet Yuen, Head of Business Model Innovation, HSBC
Interview with Gary Liu, CEO of South China Morning Post
Interview with Blake Irving, CEO of GoDaddy
Jumpstart X Eureka Nova Incubation Hub Playground x Jumpstart
Jumpstart July Release Party
Jumpstart Media Tanscorp 28 JUMPSTART September/October 2017 UU Smart Dancing Robot
China
China’s Challenges in App-based businesses An Interview with Yangliu, CEO of FotoPlace
J
“
ust like how we would edit out bad takes in a film, we unconsciously omit memories that we don’t like.” As a Literature of Drama major, Yangliu finds resemblance between recalling memories and making films. Memories are unconsciously filtered and omitted, thus we only hold on to memories that we choose to keep. Since she felt that existing photo-sharing and social media apps do not allow her to fully express contemplations, Yang founded FotoPlace in 2014, she wanted to provide a platform for people to create and share photos in the form of motion picture screenshots that can feature bilingual subtitles to record the feeling of that moment. “You can also add stickers from popular movies to create your own billboard poster. In our widescreen mode, images and text weave together naturally. There is a balance between the two. You wouldn’t feel that the text is solely for embellishment.” After the launch of the wide sreen mode, FotoPlace earned over 5 million downloads within 2 months, in addition to $10 million Series A investment. “Attracting investment was part of our plan, but we never thought it would come in such a large amount in a short period of time. We are truly grateful to all our FotoPlace users.”
China as the home of her startup
China, being her homeland, was a natural choice of location for Yang to start her business. Her familiarity with the culture enabled her to create a product that Chinese citizens would resonate with. “We grew up watching films with Chinese-English bilingual subtitles. We wouldn’t be reading the text with our left brains while watching the graphics with our right brains. They are synchronized and we read them simultaneously. This is the most appropriate way to
document experiences and it feels innate,” said Yang. Apart from the cultural advantage of Yang being a local, China also offers a huge internal market to sustain her business.
Challenges ahead: low brand loyalty and AI incorporation
However, like every business owner, Yang worries about the longevity of her business. “Young consumers nowadays have a very low product loyalty. It is obvious that they crave novelty and switch to new products frequently,” says Yang. “In China, after a product gains popularity, people start imitating it and countless similar products emerge. The keen competition and low product loyalty poses a high risk for people to start their business.” But those are not the only challenges Yang has to face. The trend of incorporating artificial intelligence heightens the entry barrier for app-based businesses like Yang’s. “Artificial intelligence is getting more and more popular. This raises our need for technical support. It’s no longer enough to build an app with unique functions. You have to keep improving your technology in order to stand out in this competitive environment.” FotoPlace’s original intention was to combine travelling and films, but
by Tiffany Wong
during its development, the widescreen mode has taken over to become its star feature. Yet Yang and her team didn’t give up on actualizing their original plan. This May, they launched their second app – Mocation, a travel guide which detects where you are and shows you a map of locations where famous movies have been filmed. “We don’t have high expectations on Mocation. After all, it is a very niche product. All we want is to hold on to why we started FotoPlace and to realize the platform we envisioned. We are thankful that several app stores have recommended it.” ■
About Yangliu
Yangliu, movie lover and founder & CEO of FotoPlace, previously worked as a journalist after graduating from Shanghai Normal University. Her favorite scene is from Braveheart, in which Wallace shouts “Freedom!” before the judge orders his death.
Innovators Wanted.
US$180K REWARD. GITEX FUTURE STARS is all things startup.
The world’s biggest gathering of tech startups and influencers at Dubai’s global movement this October, is looking for WORLD CLASS INNOVATORS to crush the startup competition and show our panel of investor judges why they are the next big thing. We are giving away over US$180K in cash as prize money for the winners.
TOMORROW IS TOO LATE. READY TO GET STARTED?
Visit gitexfuturists.com/jumpstart before the competition does.
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