Seismic shifts in how we work, live, and play
COVID and the new business models that will create jobs, eliminate hazards and inefficiencies, and make business and daily life more affordable long into the future
Quick note: I originally published this in early 2020, back before we rebranded as Headline Asia, and well before the havoc of COVID had reached its peak.
As a VC firm invested in dozens of tech startups throughout developed Asia, Infinity Ventures has had a front row seat to both the early stages of the COVID-19 crisis and an inside look at how the pandemic is affecting startups. Due to past experience with SARS, some APAC countries have been better equipped to face this type of crisis, and lower operating costs in much of Asia have helped startups here fare slightly better than startups in the West. However, we are still keeping a close eye on what’s happening throughout Asia and the world, and I’d like to share my own outlook on the present and future of technology in Asia.
Many other VCs around the world have offered their thoughts on this pandemic from both macro and micro perspectives, and entrepreneurs and investors should take the time to consider their ideas. Sequoia, for instance, is calling this crisis a black swan event, while Andreesen Horowitz is encouraging entrepreneurs to keep informed about both the pandemic and about leadership during a crisis. Meanwhile, Techstars co-founder Brad Feld is reminding founders to take care of their mental health during this tough time.
It is too early to talk about the final impact of this global crisis, and I do not wish to restate the good advice provided by our fellow investors mentioned above. Thus, I’d simply like to share how we as a firm are approaching this period of instability, and talk a bit about our steadfast commitment to investing in the future. Here’s what we’re doing:
We’re maintaining constant contact with our portfolio companies
According to an internal survey of startups in our Infinity Ventures portfolio, the current pandemic is hitting these companies in a variety of ways. Some are facing lost revenues thanks to lower demand from clients or consumers, while others are being forced to postpone planned activities like pilot launches or hiring. Conversely, some companies are experiencing challenges caused by a surge in demand, stretching these startups’ abilities to serve customers efficiently.
Our team is striving to keep up-to-date about the needs of our portfolios and provide support where we’re able, whether that support is a sympathetic ear, connections to financial or corporate resources, or public relations assistance. We’ve bet on these companies in the past, and we are doing our best to see them through this crisis.
We’re still investing
COVID-19 will create a seismic shift in how we live, work, and play, as all walks of life are being upended by this virus. Therefore, I’m hoping to seek out new business models that can create jobs, eliminate hazards and inefficiencies, and make business and daily life more affordable long into the future. Here’s a look at some of the areas that I’m interested in exploring and investing in:
- Next generation delivery — Traditional delivery processes have already been disrupted across many industries, from restaurant delivery to cross-border ecommerce to local courier services. Throughout Asia, on-demand delivery services are now reaching the point of saturation, but the cost and speed of delivery, not to mention the environmental impact and crowding of delivery vehicles on roads, still have a lot of room for improvement. We want to fund the next wave of technologies that will bring down the cost of delivery, reduce the carbon footprint of on-demand, ease traffic on our roads, and ease delivery worker shortages in markets with aging populations. We’ve recently begun actively investing in this vision through our portfolio KiwiBot and its robotic delivery platform, and are excited to invest in even more startups with a similar vision.
- Food waste and traceability — Although online grocery shopping has not yet reached its peak here in Asia, and despite the failed attempts at grocery on demand that we’ve seen in recent years, we believe that online grocery’s moment will ultimately come. Alongside its growth, there will be a need for new technologies for precision inventory management to facilitate order fulfillment and to reduce food waste in the middle of the food supply chain. Food traceability will play a major role in this shift from retail grocery to online grocery, but it’s important to invest in these technologies now so that consumers can shop online with confidence that they know where their food is coming from.
- The future of self-employment — Well before the coronavirus pandemic, we were seeing numerous new ways for individuals to earn income on their own terms. Part of that has been services in the gig economy, such as with our portfolio MyKuya in the Philippines. But now we see opportunities arising for creatives and budding entrepreneurs to make a living while working from home. When I was growing up, the traveling salesman was already a dying occupation, yet what we’re seeing online today is precisely the same concept brought into the internet age. Enterprising individuals no longer sell door to door — they sell post to post. For example, not only can creators support themselves by live streaming on LIVIT: 17 or selling their designs on Pinkoi, but KOCs (key opinion consumers) can also earn income thanks to the growing popularity of live ecommerce with our portfolio FBBUY. As the global economy works through the COVID-19 pandemic, we expect to see even more individuals turning to self-employment in order to reduce reliance on traditional employment, and we’re keeping a keen eye on companies with innovations that will support the self-employed.
These are just some of the technologies we are excited about for 2020 and beyond, and I welcome innovative startups who share our vision.
We’re noting the bright spots wherever they can be found
Across the world, there are very few things to cheer about in these dark times, but I’m taking pride in some of the work being done by our Infinity Ventures portfolios to support their communities. Some highlights:
- Hong Kong logistics startup Buyandship has begun facilitating the supply of more than 150 million FDA-approved masks to private and public clients in the US and Europe to ease shortages for healthcare workers.
- Our portfolio M17 has recently seen a rise in new streamers on its “LIVIT: 17” live-streaming platform in Japan, giving Japanese who’ve lost income due to the pandemic another option for earning income while working from home.
- On its ecommerce platform, Pinkoi has seen an unexpected increase in sales of design goods as more people are working from home and seeking to outfit their home offices, bringing comfort to shoppers while putting much-needed income into the pockets of Pinkoi’s independent designers across Taiwan, Japan, Thailand, and elsewhere in Asia.
Some final words
As I sit here listening to the chaos of a full household on lockdown. It’s not easy to (hear yourself) count our blessings. The present is frustrating and morbid. With the help of my Infinity Ventures team, I’m encouraged to invest in the future, help others where I can, and find what’s been overlooked in the chaos.
