Genesis

Founder’s Playbook: Breaking Taboos One Period At A Time

The startup journey is often a David-versus-Goliath story, where a small upstart entrepreneur takes on bigger and more established players. This journey is inherently challenging, but when you address a pain point shrouded in taboo, you compound those challenges exponentially.

Today, in our Founder’s PlayBook, we had the privilege to speak with Tan Peck Ying, the co-founder of Blood (formerly known as PSLove). Blood raised a SGD2m Series A round in May 2023 from AngelCentral and DSG Consumer Partners.

Not one to shy away from sensitive issues, Peck Ying has been trailblazing a path, addressing menstrual health for the past nine years. Her journey began with her own experience of severe menstrual cramps that had plagued her since high school. During her tenure at NUS Enterprise, the prospect of transforming a small startup into a game-changing entity excited her, prompting her to leave her corporate job in 2014 to pursue this mission.

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Peck Ying’s journey in her own words

Blood co-Founders: Caleb Leow and Peck Ying Tan. Source: Blood

My co-founder, Caleb Leow, is also my spouse and we share a common vision, passion, and ambition for our business. I admit that starting a business with your partner is not easy, but it can work if you have a solid relationship, respect each other’s opinions, and divide your roles clearly. For instance, I have the final say in Product and Growth and I defer to him on all things technical R&D and branding. We have learned how to collaborate and support each other’s decisions in our respective domains.

Reflecting on my journey as a female founder addressing women’s health that is generally considered taboo, I’ve identified some key learnings along this journey:

Define Your Niche in a Crowded Market: We are not intimidated by the fierce competition in the sanitary pads market as we have a proven solution. What drives us is creating a challenger brand that stands out from the crowd and shows consumers that we care about their needs and well-being.

Be planet-friendly where possible: In the case of our new sanitary pads line, our commitment to environmental responsibility was aligned with our customers’ values. After extensive experimentation with materials like bamboo and cotton, we concluded that corn was the ideal choice for the top sheet. Not only does corn offer superior absorption performance, but it is also 100% biodegradable.

Obsess about Performance: At Blood, we scrutinize every aspect of our value offering, from the materials used to the size, contouring, and even the adhesive type. Beyond product, our passion for innovation extends into our customer journey and our business ethos. We pay close attention to user feedback and respond to every DM (direct message) on social media.

Embrace Diversity: Fun fact: as much as we are in the female healthcare space, our company gender ratio is about equally male and female. We believe in gender neutrality – the guys in our team bring a different perspective. They tell us what our business partners, VCs, etc., are thinking and provide a neutral and objective viewpoint. When guys come for job interviews, they ask, “Is it okay if I do not know anything about periods?” and for me, that is okay because they provide an objective viewpoint that balances ours. After all, business is gender-neutral.

Dare to be Bold: In 2018, we rebranded PSLove to Blood. Yes, it is a polarising name but there was a method to our madness. The reason behind this transformation was to convey a stronger message and challenge the menstrual health taboo head-on. And PSLove just didn’t get the job done as it sounds like something close to your heart, something warm and fuzzy. So, we faced the risk of being forgotten.

Source: Blood

We wanted a name that could really cut through the noise and bring our mission forward. Blood powerfully embodies what we’re trying to do — normalize periods. There’s nothing shameful about bleeding; most women bleed once a month, and it’s a normal part of our lives. So we are now proudly Blood.

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Like many businesses, Blood faced daunting challenges during the COVID-19 pandemic as retail was a large segment of their business. While their product was considered essential, they still had to find creative ways for cross-border shipping. Fortunately, they held a healthy inventory locally and were not reliant on their China factory.

Recognizing TikTok’s potential to reach their target audience, teenagers, they harnessed the platform to showcase their products, engage with a younger demographic, and promote menstrual health and wellbeing education.

“Our Go-to-Market approach has shifted from e-commerce to social commerce and TikTok,” Peck Ying notes. “We wanted to go where our consumers are going. And TikTok is the perfect platform for our messaging.”

Looking ahead, Blood has ambitious plans to expand its presence in Singapore, Malaysia, and Indonesia, with a mission to become a mass-market challenger brand that resonates with consumers. Blood is not just a business; it’s a movement that empowers women and normalizes conversations around a once-taboo subject.

PT Super Bank Indonesia (Superbank) and Genesis Alternative Ventures (Genesis), Singapore-based venture lender, have launched a financing solution, with both entities committing up to IDR 600 billion ($39.38 million) to back innovative Indonesian startups. The financing solution combines the principles of conventional bank credit and venture capital investing to target Indonesian technology startups while extending working capital to technology startups with minimum dilution of shareholder equity, the duo said in a statement on Thursday.

For full TechNode Global article (31 August 2023)

Superbank, the Indonesia-based digital bank backed by Grab, Singtel, and Emtek Group, is partnering with Singapore-based Genesis Alternative Ventures to provide US$40 million worth of financing for Indonesian startups. In a joint statement, the companies said that the financing will combine conventional bank credit and venture capital investment, while minimizing equity dilution for shareholders. They will also primarily target firms at the series B and series C stages.

For full TechInAsia article (31 August 2023)

Indonesian digital lender Superbank has partnered with venture lender Genesis Alternative Ventures (Genesis) to launch a 600-billion-rupiah ($40 million) financing facility to support innovative local startups. The financing solution combines the principles of conventional bank credit and venture capital investing to target Indonesian technology startups, according to the announcement. The platform also seeks to extend working capital to tech startups with minimum shareholder equity dilution, focusing on venture-backed high-growth startups in the archipelago, particularly those at the Series B or C stages.

For full DealStreetAsia article (31 August 2023)

Berita startup hari ini mengenai PT Super Bank Indonesia (Superbank) telah menjalin kemitraan dengan Genesis Alternative Ventures (Genesis) untuk meluncurkan fasilitas pembiayaan senilai Rp 600 miliar bagi perusahaan rintisan atau startup di Indonesia. Pembiayaan ini merupakan gabungan antara kredit bank konvensional dan investasi modal ventura. Dengan fokus pada startup teknologi, pembiayaan ini juga menyediakan modal kerja dengan pengurangan minimal terhadap ekuitas pemegang saham. Pembiayaan ini akan ditargetkan untuk startup pada tahap pendanaan Seri B dan Seri C.

For full Dunia Fintech article (1 September 2023)

Superbank, the Indonesia-based digital bank backed by Grab, Singtel, and Emtek Group, joined hands with alternative lender Genesis Alternative Ventures to launch an IDR 600 billion (US$40 million) financing solution to back innovative local startups.

The solution combines the principles of conventional bank credit and VC investing in targeting technology startups while extending working capital to them with a minimum dilution of shareholder equity.

The focus will be Series B or C-stage companies.

For full E27 article (2 September 2023)

PT Super Bank Indonesia dan Genesis Alternative Ventures menjalin kerja sama pembiayaan senilai Rp 600 miliar kepada startup Indonesia yang melakukan inovasi. Direktur Utama Superbank Tigor M Siahaan mengungkapkan, Indonesia merupakan negara dengan ekonomi digital terbesar di Asia Tenggara. Pertumbuhan ekonomi digital diproyeksi hingga delapan kali lipat dari Rp 632 triliun pada 2020 menjadi Rp 4.531 triliun pada 2030. “Indonesia memiliki potensi dan peluang untuk semakin mengembangkan startup lokal dan ekosistemnya. Kami bekerja sama dengan Genesis menghadirkan sumber pembiayaan bagi startup Indonesia yang inovatif,” ungkap Tigor dikutip Investor Dialy, Jumat (1/9/2023).

For full Berita Satu article (2 September 2023)

PT Super Bank Indonesia (Superbank) dan Genesis Alternative Ventures (Genesis) berkolaborasi memberikan dukungan perusahaan rintisan (startup) di Tanah Air. Kedua entitas ini sepakat memberikan dukungan pembiayaan hingga Rp600 miliar. Solusi pembiayaan ini mengkombinasikan prinsip kredit bank konvensional dan investasi modal ventura untuk menarget startup teknologi Indonesia. Termasuk untuk menyediakan modal kerja bagi startup teknologi dengan dilusi minimal terhadap ekuitas pemegang saham.

For full Kabar Business Article (2 September 2023)

PT Super Bank Indonesia (Superbank) and Genesis Alternative Ventures (Genesis) have launched a financing solution worth US$39.3 million, or equal to Rp600 billion, to back the startup industry in Indonesia. The financing solution combines the principle of conventional bank credit and venture capital investing, targeted at Indonesia’s technology-based startups, while extending working capital to technology startups with a minimum dilution of shareholder equity. The collaboration between these entities emphasizes their strategic plans to empower Indonesia’s startups, specifically those at the Series B and C funding stage, to realize their further enhancement.

For full Heaptalk article (3 September 2023)

PT Super Bank Indonesia (Superbank) collaborated with Singapore-based venture capital Genesis Alternative Ventures (Genesis) to provide US$39,38 million in startup funding. Superbank President Director Tigor Siahaan said the funding would target startups with a minimum dilution of stakeholders’ equity. “Funding access plays important roles in developing innovative businesses,” Tigor said on Sept 1, 2023. The Superbank-Genesis funding has been targeting startups that are currently on the B or C Series of funding. Genesis Co-Founder and Managing Partner Jeremy Loh said Indonesia possessed great potential for technology-based businesses, thanks to a huge number of digital talents. “Genesis and Superbank have committed to support more Indonesian startups, in the middle of venture capital funding decreasing trend up to 60 percent from year to year,” said Loh.

For full Kata Data article (4 September 2023)

Aonic: Revolutionizing Dronetech in Southeast Asia

In an exclusive interview, Cheong Jin Xi (JX), the visionary founder of Aonic, formerly known as Poladrone shares insights into the company’s journey, challenges, competitive advantages, and future aspirations.

The agritech sector in Southeast Asia is undergoing a transformation, thanks to Aonic, formerly known as Poladrone. Founded in 2016 by Cheong Jin Xi (JX), the company recognized early on the potential in the agritech space and has remained steadfast in addressing its unique challenges.

Aonic secured a significant seed funding round from Wavemaker Partners, Malaysian Technology Development Corporation (MTDC), ZB Capital, Genesis Alternative Ventures, and others.

We sat down with JX to delve deeper into the company’s journey, drone technology, and its impact on the agricultural industry.

Can you tell us about the Aonic origin story?

My journey with drones began before the birth of Aonic when my passion for flying objects led me to pursue an aerospace engineering degree. Our initial goal was simple: to make drones accessible to everyone, hence the name ‘Poladrone,’ a playful blend of Polaroids and Drones. This ethos still defines our company today.

Initially, we offered basic photography services, but we quickly pivoted towards providing analytics services across various sectors, including agriculture, oil & gas, telecommunications, and surveying. We realized that the true value of drones lay in the data we could capture at scale. As our analytics solutions matured, we received feedback from customers highlighting a pressing issue: labor shortages, particularly in agriculture.

This insight drove us to develop two specialized agricultural spraying drones: Oryctes, designed for precise point-to-point spraying in oil palm plantations, and Mist Drone, tailored for blanket spraying in open field crops. These drones are complemented by our AI-assisted aerial mapping software, Airamap Desktop, and the Oryctes Flight App for seamless flight planning.

Over the years, we’ve sharpened our focus on the agricultural industry. While other segments like surveying and mapping remain lucrative, we see agriculture as our primary growth area. In Southeast Asia, farms continue to rely on slow, inefficient manual labor. The opportunity for impact is immense. Today, we’re dedicated to integrating ourselves into the agricultural value chain by establishing 3S (sales, service, and spare parts) centers across key agricultural areas.

What are some of the challenges you faced initially and how did you overcome them?

While drones are widely known, many still associate them primarily with photography and recreational use. Awareness regarding enterprise and agricultural drones is lacking. This lack of awareness is just the first hurdle; the subsequent customer journey involving affordability, usage, and support is also broken.

To address these concerns, we took an ecosystem approach. This led us to establish our 3S centers and, more recently, the Aonic App. Together, these elements form a physical and digital ecosystem, serving as our center of excellence, an information-sharing hub, and an after-sales support provider. In simpler terms, it’s where we educate our customers, provide financing options, offer training, and service their drones physically and digitally.

What competitive advantages does Aonic hold over other drone solution providers?

Aonic’s competitive edge is twofold:

Product: Our products are proprietary, backed by patents. We design and manufacture the electronics of our drones in-house. In contrast, many drone providers source components from China, leaving them vulnerable to supply chain disruptions and confined within distribution territories.

Strategy: As I mentioned earlier, we’re building an ecosystem. Beyond our 3S centers and Aonic App, having proprietary products enables us to seamlessly integrate our drones with our solutions. For example, we can link Airamap Desktop, Oryctes Flight App, and Oryctes Drone for a seamless flight experience. Many drone solution providers focus solely on hardware sales, neglecting the broader customer journey.

Can you share some specific examples of how Aonic has successfully helped enterprises enhance their operations?

Certainly, let’s consider Sime Darby Plantation as an example. Traditionally they relied on conventional pesticide spraying methods, which posed challenges in terms of consistency, productivity, and worker safety due to labor shortages and chemical exposure.

With our Oryctes drones, they witnessed significant improvements in efficiency, outperforming manual spraying methods by up to 8 times. Furthermore, they gained valuable insights into chemical usage, which brought them closer to their Sustainable Development Goals. This includes reducing deforestation by improving yield per hectare, upskilling local talents, and enhancing workers’ quality of life.

Now, let’s consider a smaller-scale success story featuring Encik Ab Rahim, a smallholder farmer managing a 5-hectare paddy field. While he had been aware of agricultural drones and their potential benefits for several years, it was the establishment of an Aonic 3S center nearby that prompted him to embrace this innovative technology.

The presence of the 3S center gave him the confidence that Aonic would provide the necessary long-term support, including spare parts, maintenance, and knowledge sharing. Furthermore, Encik Ab Rahim availed himself of Aonic’s financing program, a strategic initiative that substantially lowered the barriers to drone ownership. The added benefit of free maintenance served as a compelling incentive for him to make the leap towards drone-assisted farming.

The adoption of Aonic’s Mist Drone marked a pivotal moment in Encik Ab Rahim’s agricultural journey – introducing higher levels of consistency and precision to pesticide spraying, while effectively eliminating the irregularities associated with manual methods. This boost in efficiency translated directly into a significant increase in his income, from $2,000 to $3,000.

Beyond the financial gains, the Mist Drone also offered intangible benefits. Given that Encik Ab Rahim is over 60 years old, he was no longer required to laboriously wade knee-deep into the paddy fields for extended periods. Thanks to the capabilities of the Mist Drone, he could now effortlessly cover his entire field, saving both time and energy.

The story of Encik Ab Rahim serves as a testament to the real-world impact of Aonic’s agricultural drone solutions, underscoring their capacity to not only drive financial growth but also enhance the quality of life for smallholder farmers.

Looking into the future, what are some of the key areas of growth and expansion that Aonic envisions beyond its current offerings?

We see our growth driven by two main aspects: providing more value add and expanding our 3S centers.

We aim to broaden our horizons by venturing into other agricultural products, offering more value along the agricultural value chain. Our ultimate goal is to become a one-stop platform for all agricultural needs.

Our relentless commitment to 3S center expansion will continue for the next 2-3 years. Agriculture is built on trust, and being closer to the community strengthens that trust. In the coming 1-2 years, we plan to focus on Thailand and Vietnam, two of the top three global rice exporters, while further fortifying our presence in Malaysia.

Can you share some insights into the team behind Aonic? What expertise do they bring to the table, and how does their collective experience contribute to the company’s success?

Our team operates on a fundamental principle: ensuring that our solutions offer sustainable value and sound unit economics, rather than pursuing unsustainable growth and burning through cash. Because of our financial prudence, we are already profitable.

We value team members with clear, logical thinking and a focus on execution, allowing each member to contribute according to their respective expertise. Moreover, we place a strong emphasis on past experience in traditional industries relevant to our services, such as agriculture and surveying. This enables our team to connect better with our customers.

We believe in internal training and development rather than hiring from competitors, as it helps foster the right approach and culture towards the technology.

With the rapid advancements in drone technology, how does Aonic stay ahead of the curve in terms of innovation and adapting to changing industry trends?

Maintaining a growth mindset is key to staying ahead in the ever-changing drone industry. Being young and dynamic, the industry is constantly evolving, and we must adapt continuously to remain relevant.

Our unique advantage lies in our ability to closely collaborate with some of the most advanced drone companies in China. Many of our team members are fluent in Mandarin and work collaboratively across various departments, from commercial to operations and research & development. This provides us with a front-row seat to upcoming technology trends before they are shared globally.

As Aonic continues to spread its wings, expanding its 3S centers and venturing into new horizons, they’re proving that the sky’s not the limit; it’s just the beginning. So, stay tuned, because in this drone-driven world, Aonic is the company that’s taking agriculture to new heights, one flight at a time.

Choosing the Right Venture Lender for Your Startup

Venture debt is a financing tool that can help startups achieve business milestones while being minimally dilutive to founders and early-stage investors. It can be used to extend the runway between equity raises, thus buying time for early-stage startups to hit key benchmarks. When used thoughtfully, venture debt can act as a catalyst for accelerated growth.

Just as you would meticulously evaluate a potential business partner or new hire, conducting due diligence on your venture lender is just as essential to ensure a mutually beneficial outcome. The criteria for choosing a venture lender closely mirror those for choosing a venture equity partner – but with a few important distinctions, which arise from the differences between debt and equity financing.

In this comprehensive guide, we unveil the critical steps for performing due diligence on your venture debt lender, helping you forge a partnership that straps rockets to your growth.

Assessing Added Value

Venture debt is more than just a loan. Scrutinize the value beyond the dollars – delve into the lender’s value add – operational acumen, industry connections, and advisory capabilities. Just as a venture equity partner brings expertise and a strategic network, a venture lender should ideally be able to advise on the technicality of your financial statements – are you over-spending on marketing, or why are you budgeting large overheads for staff expansion. You would also want a venture lender to bring their network and experience to significantly amplify your growth trajectory. Engage in candid conversations about their involvement in portfolio companies and how they’ve contributed to success.

For instance, at Genesis, our portfolio companies are integral to our community. We actively champion them to a diverse array of investors, partners, and clients, both within the virtual realm and offline arenas. (#GenesisStories)

Through Thick and Thin

The road to building a successful startup will be long and filled with potholes. Whether the loan spans one or three years, mutual trust will be very important. Throughout your interactions, ask yourself, “Am I dealing with someone who understands how a start-up grows? Will they stand shoulder-to-shoulder with us through the good times and bad?”

So speak to at least three of their Founders; ask about their lender’s behaviour during the COVID pandemic or recent tech funding winter. A venture debt partner who stands by your side through adversity is a valuable ally in ensuring your startup’s resilience and growth.

Mastering Key Terms

Unlike a venture equity firm’s term sheet, the one from your venture lender might throw some unfamiliar terms your way that are worth understanding in advance:

Interest rate: This is the loan interest rate and be sure to know if it’s “fixed” or “floating”, “flat” or “annualized”. This makes a big difference in your repayments and cash flow.
Duration of loan: This is typically one to three years depending on the working capital requirement and the venture lender’s fund life. Generally, longer-term loans are attractive as they allow more time for the capital to work and generate a return.
Interest-only period: Given the cash-burn profile of startups, you can negotiate with your lender to defer paying the principal while servicing only the interest payments for an initial period of 3-6 months. In return, the lender may ask for additional upside, for example, more warrants or higher interest rates etc.
Warrants: Warrants give the lender the right to purchase equity shares at a predetermined price at a future date. This usually amounts up to 20% of the loan principal amount.
Fees: There are several fees that Founder’s should be aware of e.g. origination fee, legal fee which are typically mandatory and then there are other fees such as “Unused fees”, or “Closing fees”, that are in addition to interest payments.
Prepayment Penalties: In the happy event where your cashflow is more positive than forecasted, you may wish to pay off your debt early. Examine the penalties for early payment and there are may be creative ways to structure these penalties to mutual advantage e.g. a sliding scale expressed as a percentage of the loan as the loan period draws to a close.
Covenants: are “stress tests” that companies must meet e.g. minimum working capital, EBITDA, or revenue etc. Have a candid discussion with your lender regarding the rationale behind each covenant. Usually covenants are not meant to be putative in nature but to ensure that the startup practices financial discipline.

Due Diligence on Due Diligence

Finally, take a moment to find out how the lender conducts its own diligence. Inquire about their due diligence process, including the depth of research, the rigor of analysis, and the criteria they prioritise. A thorough, systematic approach to due diligence indicates a commitment to informed decision-making, which will serve as a strong foundation for your partnership.

TLDR? Here’s our playbook on doing due diligence on your venture lender.

PRESS RELEASE

Superbank and Genesis Alternative Ventures Launch IDR 600 Billion Financing Solution for Innovative Indonesian Startups

The collaboration marks a significant milestone as Superbank expands support to local entrepreneurs and MSMEs
Targeting VC-backed, high-growth technology startups in Indonesia

Jakarta, 31 August 2023 – PT Super Bank Indonesia (Superbank) and Genesis Alternative Ventures (Genesis), Southeast Asia’s prominent venture lender, have launched a financing solution, with both entities committing up to IDR 600 billion to back innovative Indonesian startups.

The financing solution combines the principles of conventional bank credit and venture capital investing to target Indonesian technology startups while extending working capital to technology startups with minimum dilution of shareholder equity.

This collaboration between Superbank and Genesis underscores the determination of both entities to empower startups in Indonesia, particularly those at the Series B or C stage, to realize their full potential.

Tigor M. Siahaan, President Director of Superbank, said, “As the largest digital economy in Southeast Asia, which is expected to grow eight times from IDR 632 trillion in 2020 to IDR 4,531 trillion in 2030, Indonesia has the potential and opportunity to further develop local startups and their ecosystem¹. We are thrilled to partner with Genesis to provide a powerful financing avenue for innovative Indonesian startups. In today’s dynamic business environment, access to funding is crucial for these innovative ventures to thrive. This partnership exemplifies Superbank’s unwavering commitment to supporting local entrepreneurs and MSMEs and driving sustainable growth.”

Jeremy Loh, Co-founder & Managing Partner Genesis Alternative Ventures, said, “Indonesia is brimming with opportunities in terms of local startups and tech talents. Genesis and Superbank share the same commitment in tapping the huge potential of this sector and supporting more startups in Indonesia given the notable 60% year-on-year² decline in venture capital funding for startups the Asian region has witnessed.”

This collaboration marks a significant milestone in Superbank’s transformation into a digitally-focused bank that just started 6 months ago.

For further information, please contact:

Andre Sebastian
Public Relations Lead Superbank
public.relations@superbank.id

Keshie Hernitaningtyas
Brightminds for Superbank
superbank@brightminds.co.id

About Superbank
PT Super Bank Indonesia (Superbank) is a bank that’s currently transforming into a digital-based services bank. Superbank is the new brand that replaces PT Bank Fama International, a commercial bank that was founded in Bandung, 1993 which was taken over by the EMTEK Group, Grab and Singtel in 2021. Superbank has received various awards, such as “The Most Efficient Bank in the Group of Banks Based on Core Capital (KBMI) 1 Category” from Bisnis Indonesia Financial Award (BIFA) 2022. As a newcomer in the Indonesian digital banking sphere, Superbank has a mission to expand access to credit for MSME customers in managing their businesses, provide innovative solutions for retail customers, and foster collaboration through one of the industry’s most extensive ecosystems.

For further information on Superbank, please visit www.superbank.id.

About Genesis Alternative Ventures
Genesis Alternative Ventures is Southeast Asia’s leading private lender to venture and growth stage companies funded by tier-one VCs. Genesis is founded by a team of venture lending pioneers who have backed some of Southeast Asia’s best loved companies. Armed with a strong reputation among entrepreneurs and investors, Genesis is a trusted partner in empowering corporate growth while minimising shareholders’ equity dilution. Genesis was founded by Ben J Benjamin, Dr Jeremy Loh and Martin Tang in 2019.

For further information on Genesis Alternative Ventures, please visit www.genesisventures.co.

¹ Communications and Information Ministry press release (26 September 2022)

² Communications and Information Ministry press release (12 December 2022)

Founder’s Guide to Successfully Raising Venture Debt

So you’ve caught wind of venture debt – the financing option that enables startups to secure capital while safeguarding Founder’s ownership stakes. Now, the real question is: How do you navigate the maze and successfully raise venture debt for your burgeoning business?

In this article, we will share the typical path that leads to venture debt success. Picture this as your startup’s GPS, guiding you through each pivotal step, from the first call to securing a promising term sheet.

Firstly, it is important to realise that venture lenders typically focus on startups that have revenue streams and possess equity backing. Nevertheless, it is best to initiate such discussions with venture lenders even if you are not actively fund-raising. This gives both parties the opportunity to grasp each other’s business models and find comfort working with one another.

Secondly, the process from the initial conversation to an eventual disbursement may take up to two months, depending on the depth of due diligence required and how readily you furnish the required information. A typical process looks like this:

Introductory Conversation: The first introductory call is like a first date, where both sides listen intently and get to know each other.
NDA Signing: If the initial conversation goes well, both sides will promptly sign a non-disclosure agreement (NDA) for the initial due diligence.
Initial Due Diligence: Prospective lenders will typically request key information, including:
- Investor Presentation: often similar to what’s used for equity funding but with additional details on what the debt raised will be used for.
- Valuation: Furnish the annual equity valuation, including history, projections, and funding details.
- Detailed Capitalization Table: Share ownership distribution, fundraising history, and debt utilisation.
- Historical Financials: Ideally, supply audited financial statements covering three to five years (as available).
- Projected Financials: Supply a linked three-statement financial model (balance sheet, income statement, cash flow).
- Customer Insights: Offer a list of major customers, past and present, indicating customer profile, concentration, and churn.
- Performance Metrics: Metrics that are general and particular to your industry e.g. active user growth, monthly recurring revenue etc.
Analysis: The venture debt lender will conduct a comprehensive analysis using the provided data, typically within two weeks, resulting in a potential term sheet.
Term Sheet Presentation to your Board: Share the term sheet with your company’s board of directors, and getting their buy-in is a key step, involving them earlier in the process to prevent any unforeseen obstacles.
Evaluation and Comparisons: If multiple lenders are involved, allocate around a week to compare and evaluate different term sheets, considering various elements and lender specialisations. Read here on how to conduct due diligence on your venture lender.
Negotiations: Engage in negotiations to customise the terms for a suitable structure, potentially adjusting factors such as interest rates, amortisation schedules, and timing of fund disbursement.
Final Decision: Once comparisons and negotiations are concluded, select the most fitting venture debt arrangement, which may involve equity considerations.

Thirdly, throughout this process, it is important that you have an experienced Finance manager who is conversant with building financial statements and understands what bringing debt on the company’s balance sheet means. This is because you will need to know the 4Cs:

Cost of financing: Review your cost of equity and the cost of debt by calculating the weighted average cost of capital to find the optimal mix of debt and equity.
Cap table: Understand the impact of equity and debt financing on your cap table.
Cashflow: Knowing your cashflow at present and the forecast for next 1-2 years ensures that the company is able to meet its debt obligation.
Covenants: While covenants on the terms sheets may seem restrictive at first, have a candid discussion with your lender regarding the purpose of each covenant. Ideally, the covenants should help you instill financial discipline and steer you towards sustainable profitability.

Navigating the maze of startup financing might appear intricate, yet at its heart lies a simple truth: not all financial resources are equivalent. Each startup possesses its distinct ambition, business model, and market dynamics. As a result, the blend of financing you pursue should be meticulously customised to align with your growth trajectory and overarching strategic vision. Armed with this understanding and the foundation of preliminary groundwork, you can confidently steer your startup towards a path of success.

TLDR? Download our handy Playbook for raising Venture Debt here.

In this issue of our House View, we shine the spotlight on an extremely talented individual within the Genesis ecosystem, Tom Kim, founder and CEO of Deliveree.

Deliveree was established in 2015 with a core focus on the efficient transportation of commercial goods and large items across Indonesia, the Philippines, and Thailand. The company set out to address the challenges associated with transportation inefficiencies and the high cost of logistics. The company is projected to exceed $100 million in GTV this year. Deliveree has a team of 550 dedicated employees and a robust network of 100,000 drivers operating on its platform. Deliveree has successfully raised $109 million in capital to date.

The problem Deliveree is solving is the prevalence of one-way deliveries leading to empty return trips. In short, Deliveree devised a dynamic marketplace that connects independent drivers and trucking companies on the supply side, with tens of thousands of customers driving the demand. Matching supply to demand in this manner is no easy task, yet Deliveree managed to overcome this challenge and achieve a utilisation rate of nearly 70%, which surpasses the industry average that sits at under 50%. This accomplishment has direct positive effects on both the environment and productivity, as fuel and time are optimized. Moreover, it benefits independent truckers who rely on commission-based earnings, thereby allowing them to earn more. Notably, customers such as UPS, DHL, Philip Morris, Suntory, and Lotus’s (formerly Tesco) can now leverage an asset-light approach, booking trucks as and when necessary, which helps streamline their balance sheets.

The Genesis team first engaged with Deliveree in 2016 for discussions around debt financing and then again in April 2020. Deliveree stood out to Genesis for several reasons, including healthy, mid-teen gross margins, a dedicated and experienced management team, with a strong commitment to resolving logistical challenges. Genesis and Deliveree shook hands on a first debt facility soon after and Genesis subsequently participated in an additional round that saw Deliveree complete a massive $70 million Series C funding in June 2022.

Genesis’ investment philosophy includes a dedication to supporting startups with meaningful impact objectives. We work closely with our portfolio companies, assisting them in identifying and implementing essential impact and environmental, social, and governance (ESG) concepts throughout Southeast Asia. Deliveree is amongst the first of our portfolio companies to demonstrate a bold commitment to these principles. In May 2023, Deliveree published its inaugural report detailing its ESG and impact achievements. We are proud to have played a small part in Deliveree’s journey in this regard.

Please enjoy this Q&A with Tom.

Tell us more about your declaration of war against empty trucks and how far has Deliveree’s technology and marketplace come?

Tom Kim [TK]: Deliveree connects thousands of truck drivers and cargo shippers through its dynamic marketplace where they can find and fulfil orders every day. We are constantly upgrading our tech stack which is now third generation and going onto its fourth evolution. These improvements are based on the feedback of our loyal business customers.

Our drivers use our proprietary mobile app that shows them the live bid price and lets them accept delivery orders on the go, even while they are on a specific route. The app also helps Deliveree to track the trucks’ location and offer a hyper-local view of truck capacity for route planning.

Using our Big Data and predictive analytics, we “smart assign” bookings to drivers, which enables them to create optimised routes and schedules. On average, our drivers achieve utilisation rates ranging from 60% to 80%, with an average of 70%, as they criss-cross the map every day picking up and dropping off loads for a diverse range of customers.

In turn, this allows customers of all sizes to access affordable, flexible, and scalable trucking and cargo shipping solutions in a way that significantly increases efficiency and reduces cost. We can achieve these utilisation rates within metropolitan areas and even across larger areas such as Java Island in Indonesia, Luzon Island in the Philippines, and the Bangkok Metropolitan Area in Thailand.

Please elaborate on Deliveree’s “smart assignments” technology and how that sets you apart from traditional logistics providers?

TK: Deliveree’s “smart assignments” technology sets it apart from traditional logistics providers. This technology, driven by intelligent algorithms applying massive historical data sets, assigns trucks to bookings in the most optimal locations and times. This maximises truck utilisation and minimises empty driving distances, resulting in higher efficiency.

We believe that Big Data is the key to logistics evolution in Southeast Asia. Our success hinges on the ability to gather, combine, and effectively use data sets to tackle the region’s logistics efficiency challenges. In contrast, many competitors are still in the early stages of their first or second-generation tech, lagging behind Deliveree in user experience, features, integration capabilities, toolsets, and most importantly, Big Data and predictive analytics.

A key feature of smart assignments is the ability to estimate the duration of each booking based on massive historical data sets from seven years of operations. This allows the algorithm to help drivers build booking schedules with routes and timing that fit and flow together from one booking to the next, further streamlining logistics operations. By leveraging the power of Big Data, Deliveree aims to precisely predict booking durations, resulting in fully optimised truck schedules. This innovative approach not only solves the problem of empty trucks on the road but also addresses the elusive issue of empty backhauls (the holy grail of logistics). Moreover, it helps to reduce traffic congestion, minimise environmental emissions, increase driver earnings, and lower customer shipping costs. While it may seem too good to be true, Deliveree is working towards this future every day through significant investments in Big Data sets.

What was your motivation for setting up a formal ESG reporting process?

TK: Deliveree’s solution benefits various stakeholders, including truck drivers, businesses with goods to deliver, and even the environment. Our latest ESG report is available here.

We address the challenges faced by independent owner-operator drivers and small family trucking companies with unstable income and limited job opportunities. Through onboarding and continuous training, drivers qualify for jobs with larger enterprises that have strict requirements, such as certifications for occupational health and safety (OSHA) to enter warehouses and logistics facilities. Additional certifications, like defensive driving for energy clients and perishable goods handling for FMCG clients, are also provided.

Our comprehensive training and certification program prepares drivers for the new gig economy. Together with our mobile app, they secure delivery jobs that significantly boost their earnings, often up to 2.3 times more. This empowers businesses to connect with reliable and qualified drivers for their transportation needs while contributing to better route optimisation and environmental sustainability.

In our ESG sustainability report, you will see how our smart algorithms optimise delivery routes, providing bookings to trucks in the right place at the right time.

This increases their utilisation and decreases the distances those trucks drive while empty. Additionally, businesses can leverage Deliveree’s partial loading services, enabling them to send goods, cargo, and packages without needing to rent a full vehicle. Our algorithm calculates the most optimal and efficient route by combining cargo from multiple businesses, ensuring efficient deliveries.

Who helped you with the process and the thinking behind your ESG initiative?

TK: As part of Genesis’ venture debt to Deliveree back in January 2021, we made a commitment to Genesis Impact and E&S framework where we will start to develop a basic idea around impact development goals and objectives. However, at that time we were focusing on growth and not ready to devote resources to a deep dive to evaluate our potential ESG impact.

This changed in 2023 when our database and data science resources became substantially more sophisticated. Deliveree’s servers process vast amounts of data related to our millions of transactions and core operational functions. So the data was already there, but the hard part was building the right queries to extract, clean, and draw conclusions from the data to tell the ESG story along the main themes we outlined.

With guidance and support from Genesis who made introductions to experts and consultants in this field, we identified four key ESG impact themes that align with UN Sustainability Development Goals. Then we pursued the data extraction and analysis to validate our achievements along these themes.

We started by delving into the essence of Deliveree’s core business. While the impact was already evident, the challenge was quantifying and measuring this impact in a tangible manner. Genesis and Deliveree held several discussions, engaging in informative and collaborative discussions on quantifying impact using our existing data.

By documenting our ESG and impact achievements, we aim to strengthen our credibility in the eyes of investors, partners, clients, and vendors. This commitment to ESG impact reflects Deliveree’s dedication to sustainability and responsible business practices.

What are some key highlights of Deliveree’s ESG sustainability report for 2022/2023?

TK: At a high level, I am very proud to share the following achievements:

Emissions Reduction: Deliveree’s “smart assignments” has reduced CO2 emissions by over 3 million kilograms, equivalent to planting 143,000 trees (UNSDG: Climate Action).
Road Traffic Reduction: Through efficient truck assignments, Deliveree has decreased truck road usage by 5.3 million kilometres, equivalent to 7 return trips between Earth and the Moon. (UNSDG: Infrastructure and Sustainable Cities).
Income Acceleration: Independent drivers and small trucking businesses on Deliveree’s platform experienced significant earnings growth, with average hourly earnings increasing by 2.8 times for 73% of vendors and total earnings increasing by 2.3 times for 82% of vendors. (UNSDG: No Poverty and Decent Work).
New Economy Education: We provided extensive education to drivers, offering an average of 44 instructional hours per vendor, enabling them to thrive in the mobile app and gig economy. (UNSDG: Decent Work and Reduced Inequalities).

We have gained a strong reputation for our customer-oriented services. However, we also want to recognise the unsung heroes behind our success: the countless truck drivers who own and operate their own vehicles, as well as the small family businesses that own and manage their own fleets. Our platform empowers them to control their financial futures, leading to a positive impact on their respective communities.

What was the response to your report?

TK: Unfortunately, the response from the media and investment community was not as warm as we had hoped. From this, we realised that ESG and impact investing are still relatively young fields, and there is a limited track record of long-term performance data. In this respect, I am proud that Deliveree is ahead of the pack when it comes to monitoring our ESG and impact.

What are your business plans for the next few years?

TK: We are commencing our last private fundraising in the second half of 2023 with plans to IPO in Indonesia in late 2025/early 2026. To coincide with these capital markets plans, our consolidated group will reach EPS break-even by 4Q 2025.

Follow Deliveree on LinkedIn for more updates.

The entrepreneurial journey is often romanticised with tales of heroic successes, but, in reality, it can be surprisingly solitary. While some successful companies have started with only two or as many as eleven co-founders, there are also numerous solo entrepreneurs who achieve remarkable accomplishments. Yet, finding a compatible co-founder can be elusive, leaving determined entrepreneurs with a crucial decision to make: go it alone or let the opportunity slip away.

As venture investors, Genesis has had the privilege of engaging founders from diverse backgrounds, building connections that stretch as far back as 2015. Throughout the years, we’ve witnessed these founders endure a rollercoaster entrepreneurial journey, braving challenges like Covid and equity winters, and, of course, embracing triumphs.

Now, we are thrilled to present our Founder’s Playbook series, a collection of curated insights and experiences gathered from these remarkable founders. This series serves as a treasure trove of wisdom, where seasoned entrepreneurs share their valuable knowledge and hard-earned lessons with the startup community.

Whether you are a budding entrepreneur navigating the early stages of your venture or an experienced founder seeking guidance in uncharted territories, our Founder’s Playbook offers a reservoir of practical tips and inspiration to fuel your own journey. Embrace the knowledge shared within and join us in fostering a community of support and growth, as we continue to shape the future of entrepreneurship together. Do get in touch with us should you be interested to share your own war stories with the founder community.

Meet Niles Toh, the solo Founder who launched FoodRazor in 2015 as a SaaS business revolutionising F&B procurement and accounting processes. His first job fresh out of university was with a B2B SaaS company in 2014, managing regional sales and business development. It didn’t take long for Niles to see the potential of B2B SaaS as a profitable business model, sparking his desire to start his own venture. His father frequently shared his experiences dealing with inefficiencies in the F&B supply chain, which sparked the idea that this was an area where he could build a solution. Efficient ordering processes for ingredients are vital for a restaurant’s success as they directly impact the quality and consistency of the dishes served. By streamlining and digitizing this process, restaurants can optimise costs and reduce waste, while ensuring a delightful dining experience for their customers. This motivated Niles to start FoodRazor to address these issues.

Niles’ Journey in his own words

Being a solo founder came with its own trials and tribulations. One of the central challenges I grappled with was the limitations in my expertise and the sheer lack of bandwidth. In hindsight, I realized the immense value and strength that a co-founder could bring to the table. Initially, I had a co-founder, who unfortunately had to leave after a year due to personal financial concerns. As we were self-funding the business at that time, we couldn’t offer the stability he needed. This valuable lesson guided my approach when starting my current venture, SuperTomato, where I have the privilege of working alongside a dedicated co-founder.

Reflecting on my journey as a solo founder, I’ve identified some key aspects I would have done differently:

Seeking a Co-Founder from the Outset: I started with a co-founder who has the technical skillset that I am lacking. When bootstrapping a company, I think it’s more important to find a co-founder with both financial resources and time to commit to the long haul. The journey often takes more time than anticipated, so having someone dedicated to the process is vital.

Building a Strong Support Network: As a solo founder, the road can be isolating, and at times, overwhelming. In retrospect, I would have actively sought out and built a robust support network of mentors, advisors, and fellow entrepreneurs to share experiences, gain insights, and stay motivated.

Expanding beyond a Domestic Market: Initially, I thought we should concentrate on Singapore and establish a strong presence here before venturing abroad. However, I have come to realise that it would have been more beneficial for us to go global right from the start and allow our paying customers to direct us toward the most promising markets for expansion. Waiting for the perfect moment to be “ready” will only hold us back.

Methodical Fundraising Process: As a founder, it’s crucial to dedicate sufficient time and effort toward identifying suitable investors. This is particularly important for new entrepreneurs who lack working experience and require more guidance. It’s essential to identify an investor who can offer valuable advice and serve as a reliable sounding board, especially during the initial stages of your entrepreneurial journey.

I wish every Founder much success in their endeavours!

In June 2021 after six years at the helm, Niles made the difficult decision to exit FoodRazor. There was a buyer ready to take over the business and he recognized that he had reached a point of burnout and no longer felt he was the right person to lead the company.

Nonetheless, his unwavering passion for solving complex problems has been reignited after a much-needed break to re-energise himself. He has since embarked on his second startup, SuperTomato.ai, a hardware-focused venture which is already profitable. This time, Niles is joined by a co-founder who is a serial entrepreneur who has started multiple successful businesses. The presence of a co-founder has made a palpable difference, providing essential support and even sparking the inception of a third startup, MonsterBuilder.ai, which emerged from SuperTomato’s requirements.

Overall, Niles would summarise his mantra as “Think Big, Start Small, Go Fast!” and the startup journey, though challenging, is fulfilling and rewarding. Follow his journey on LinkedIn.

Reporting by Nicole Lim, Investment Analyst Intern, Class of 2023.

Once again, we were delighted to meet our investors, partners, and portfolio companies at our annual LP Day.

Held on 31 May 2023 at the magnificent Asian Civilisations Museum, we are grateful to guests who travelled from Hong Kong, Indonesia, Israel, Korea, Japan, Malaysia, Thailand, and USA to join us.

In addition to sharing the progress of our Fund, our guests were treated to an insightful programme:

Southeast Asia Investment Landscape by Mr Mike Imam, CEO, Silverhorn Group
INSEAD x GENESIS Venture Debt Report 2022/23 by Ms Alexandra von Stauffenberg, Associate Director, INSEAD
PANEL | Private Credit In A Post Silicon Valley Bank Era
- Mr Or Alon, Vice-President, OurCrowd
- Mr Tony Huang, Co-Founder & Managing Partner, K2 Venture Finance
- Mr Andrew Tan, Chief Executive Officer, Asia Pacific, Muzinich&Co
- Facilitated by: Dr Jeremy Loh, Managing Partner, Genesis Alternative Ventures
FIRESIDE CHAT | Leadership Lessons From Storms to Success with Mr Philip Yeo, Chairman, Economic Development Innovations Singapore
Facilitated by: Dean Collins, Managing Partner, Dechert LLP
PANEL | Growth in Challenging Times
- Mr Dalton Fouts, Co-Founder, ReturnKey
- Mr Jaideep L, CFO, Trusting Social
- Mr Rohit Jha, Co-Founder & CEO, Transcelestial Technologies
- Mr Tom Kim, Co-Founder & CEO, Deliveree
- Facilitated by: Mr Eddy Ng, Partner, Genesis Alternative Ventures

The afternoon ended with cocktails and canapes between investors and founders, followed by a specially curated tour of the Asia Civilisations Museum’s world-class collection.

A special thanks to our LPs who shared their time expertise with our Founders so generously at our Founders’ Forum that same morning.

Relive the afternoon’s highlights with our Recap Reel:

Or browse the Event photos here.

SATURDAYS Expands Across Indonesia, Establishing Its Position as the Leading Eyewear Brand

New product lines, AI frame recommendation, and capital further accelerate growth

Jakarta, 10 April 2023 – Indonesian eyewear brand, SATURDAYS, continues to execute on its mission to provide access to affordable eyewear across Indonesia through tech-enabled omnichannel experiences. SATURDAYS has expanded sustainably its physical presence and will have more than 45 stores in 11 cities, including Jabodebatek, Bandung, Surabaya, Yogyakarta, Medan, Palembang, Makassar, Banjarmasin, Pontianak, Samarinda and Batam by the end of Q2 2023. The company has deepened its product offering by launching a kids’ collection and its more affordable VIBE series, starting at Rp395k (US$26). SATURDAYS also continues to provide fresh collaborations with well-regarded brands such as MARVEL, Indomie and key opinion leaders.

“Since we started SATURDAYS in 2016, our desire has always been to deliver exceptional value and customer experience to create an enduring brand. While the journey has been a roller coaster through the unprecedented COVID period, our focus remains the same; to build a sustainable business with strong fundamentals and healthy unit economics,” said SATURDAYS Co-founder Andrew Kandolha.

SATURDAYS recently opened its latest lifestyle store at one of the premier shopping destinations at Central Park Mall, Jakarta. The new store blends eyewear in a modern café that serves specialty Arabica coffee, teas and fresh baked artisan cookies from Naked Dough. Currently, SATURDAYS offer free drink for every eyewear purchase, and promo buy-1-free-1 drink for every returning customers by wearing SATURDAYS’ glasses to our stores.

“Naked Dough offers guilt-free and inclusive cookies, with less sweet options as well as gluten-free and vegan varieties. We are committed to providing a positive impact on our customers’ lives, without compromising on taste or quality,” said Naked Dough’s founder Jennifer Hermawan.

As part of its strategy to provide a seamless omnichannel experience, SATURDAYS continues to invest in technology providing convenience for customers to shop through website (www.saturdays.com), mobile app (Saturdays Lifestyle), chat, home and corporate try-on, or stores. The latest tech feature is SATURDAYS Artificial Intelligence (AI) technology, in which customers can scan their face and get customized recommendations on which frames are suitable for them, then try the frames on virtually instantly on their smartphone and finally order the pair(s) they love. SATURDAYS also provides wellness & employee benefits program for companies through cashless transaction or insurance providers. It has developed partnerships with 14 Third Party Administrator (TPA) and 23 insurances providers.

SATURDAYS recently secured venture debt funding from Genesis Alternative Ventures for an undisclosed amount to further fuel its expansion plan and solve the vision impairment problem in Indonesia. Previously, SATURDAYS received funding from local and regional venture capital firms Altara Ventures, DSG Consumer Partners, Alpha JWC, Kinesys Group and Alto Partners.

“We are excited to be partnering with SATURDAYS in their journey to digitize and democratize the eyewear industry. Under the stewardship of co-founders Andrew Kandolha and Rama Suparta, we believe SATURDAYS can become a disruptive eyewear brand who can deliver exceptional customer experience,” said Genesis’ Managing Partner, Dr Jeremy Loh.

About SATURDAYS

SATURDAYS is a tech enabled brand that offers designer quality yet affordable eyewear designed in house to fit and look great for Indonesian consumers. We provide omnichannel lifestyle shopping experiences through our app, website, home try-on and stores. We have grown to 45 stores in 11 cities across Indonesia as of April 2023.

https://saturdays.com/

About Naked Dough

At Naked Dough, we take great pride in creating the most delicious and high-quality cookies for our customers. Our commitment to using only the finest ingredients and refusing to take shortcuts is unwavering, ensuring that every batch of cookies is made with the utmost care and attention to detail. Our passion for creating the perfect cookie is reflected in every bite, making Naked Dough a go-to for cookie lovers everywhere.

About Genesis Alternative Ventures

Genesis Alternative Ventures is Southeast Asia’s leading private lender to venture and growth-stage companies funded by tier-one VCs. Genesis is founded by a team of venture lending pioneers who have backed some of Southeast Asia’s best loved companies. Armed with a strong reputation among entrepreneurs and investors, Genesis is a trusted partner in empowering corporate growth while minimising shareholders’ equity dilution. Genesis was founded by Ben J Benjamin, Dr Jeremy Loh, and Martin Tang in 2019.

For more information:

Mawar Kusumadewi – PR

E: mawar@ideas-strategic.com

T: +6285715193769

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