Alibaba Cloud Demo Day is big opportunity for startups, SMEs

In this interview with Bryan Chung, Principal of Fidelity Funding, we learn more how the Alibaba Cloud Demo Day is a platform for SMEs and startups to learn from industry experts. It helps them in the process of building their products and services, for example.

Bryan Chung says for Malaysian based startups (registered with SSM) from all stages and industries that are interested to learn more can submit their application via Alibaba Cloud Global Startup Accelerator Malaysia Demo Day with basic contact information and a copy of their business pitch deck.

He also says, “I strongly encourage sectors such as retail technology, agriculture technology, healthcare technology, and digital marketplaces to continue participating in the upcoming Demo Day given that most investors have established a sound understanding of these sectors.”

Read the full interview, in question and answers format, for a better understanding the movers and shakers can help the budding startups in particular on the Alibaba Cloud Demo Day.

• How can Alibaba Cloud Demo Day help in bridging the digital divide between businesses especially SMEs and startups in the burgeoning digital economy?

Digital divide among businesses exists due to a lack of technology knowledge and funding. In that respect, Alibaba Cloud Demo Day provides a platform for SMEs and startups to engage and learn from the judges and industry experts in defining and building their products or services as well as business pitch. This in turn will attract likely funding opportunities that can be re-invested into resources such as digital talent, hardware and software.

The event also showcases locally developed products and services, and encourage SMEs to embrace the available technology tools to transform digitally.

Specifically, what are the technology industries/sectors that Alibaba Cloud Demo Day focuses on? (i.e.AI, robotics, e-commerce, fintech).

The Southeast Asian (SEA) region is experiencing an unprecedented uptick of technology adoption and local startups are poised to develop products and services that address current market requirements. So rather than focusing on specific technology industries or sectors, Alibaba Cloud Demo Day aims to focus on startups which provide solutions to the digital transformation taking place across all industries and/or sectors. 

• Who is the upcoming panel of judges and from which industry?

We are in the midst of finalising the panel of judges, which consists of digital transformation experts and venture capitalists with a track record in investing in early-stage digital technology companies and/or technology driven industries locally and regionally.

Besides their respective track records and experience, we also select these judges based on a common mission: to foster entrepreneurship and support innovative founders to capitalise and drive digital transformation in the SEA region.

• How can a startup sign up and what are the requirements? 

Malaysian based startups (registered with SSM) from all stages and industries that are interested can submit their application via Alibaba Cloud Global Startup Accelerator Malaysia Demo Day with basic contact information and a copy of their business pitch deck. (Note: Applications closed on 20 April 2022).

• Which business sectors have joined in the past?

• Property Technology (PropTech)
• Agriculture Technology (AgriTech)
• Education Technology (EdTech)
• Artificial Intelligence (A)
• E-commerce
• Food and Beverage (F&B)
• Financial Technology (FinTech)
• Robotics and automation
• Retail Technology
• Which business sector is recommended to join and why?

Despite having a focus on AI, robotics, e-commerce and FinTech historically, Alibaba Cloud Demo Day is an inclusive initiative that does not restrict participation from other sectors as long as the business leverages digital technology innovatively to create value and impact for the community it serves.

I strongly encourage sectors such as retail technology, agriculture technology, healthcare technology, and digital marketplaces to continue participating in the upcoming Demo Day given that most investors have established a sound understanding of these sectors. Emerging sectors such as climate technology and Web3 focused startups should also consider taking part in the Demo Day as there is growing interest from the investors community.

Irrespective of the sectors, Alibaba Cloud Demo Day affords participants the opportunity to pitch to a panel of experienced and esteemed judges (i.e. venture capitalists, investors and established entrepreneurs) and receive constructive feedback to further improve their business plans and pitches to attract likely investors

The initiative also provides the participants exposure to the Alibaba group while enabling them to gain insights from successful models within the Alibaba group. In addition, there will be valuable opportunities to connect with local and foreign partners to further expand their ecosystem.

• What do startups need to prepare and what is the process like?

Startups need to prepare and submit a business pitch deck via Alibaba Cloud Global Startup Accelerator Malaysia Demo Day.

The Demo Day panel judges will then evaluate the pitch deck submissions based on three key criteria – potential of expanding overseas, feasibility of business model, and business differentiation – and select the best 12 participants with the highest score to contest in the Demo Day.

The selected contestants are required to present their business pitch based on the pitch deck submitted as well as anticipate potential questions from the judges during the Q&A session on Demo Day

• What are the judging criteria and what are some tips that startups need to know in impressing venture capitalists?

Judging criteria:

• Potential of expanding overseas – Company has done thorough market research and is able to show that there is huge market opportunity overseas. Company has feasible plans to sell their products and services or secured revenue from customers.
• Feasibility of business model – The revenue model is highly defensible and scalable, with complete financial projections based on clear and reasonable assumptions.
• Differentiation – Idea is novel in the global market, with potential to create significant impact. There are high barriers to entry or defensible.

Tips for startups to impress venture capitalists

• Simplicity in the business idea, coupled with the ability to articulate relevance of the problem and solutions, is key to winning any business pitch. 
  • Spend time crafting the problem statement and get feedback from people who are familiar with the industry. 
  • Prepare a pitch deck where key messages are presented in a simple manner. Less is more.
  • Practice, practice, and practice the pitching

• A good business pitch should include a viable business model explaining the unit economics, the potential market size and proof of market acceptance to validate the commercial potential of the product/service (where possible), a comprehensive sales and marketing strategy, and the team composition and capability to gain investor confidence.

• Is there a gap between the progress of Malaysian startups against their counterparts in other SEA countries? What are the challenges faced by our local startups?

In 2019-2020, Malaysian startups collectively attracted USD$362 million while a whooping USD$5.63 billion and USD$1.47 billion were invested in Indonesian and Singaporean startups respectively. Many venture investors perceived Malaysia as an opportunistic investment market given due to various factors including local market size and a lack in scaling mindset.

However, things are changing in the recent years as Malaysian startups develop new and profitable business models, coupled with the support of government grants and programmes that strengthen the startup ecosystem as a whole.

Lack of funding, industry mentors and differentiation in the products or services offered are some of the key challenges faced by local startups. With VCs and accelerator programs, the gaps and shortcomings of startups can be identified and addressed within a shorter time and pivots can be executed quickly.

This will lengthen the runway and provide the startup with a stronger footing in raising funds in the future.

• What are the technology trends or tools that are most sought after or a must-have in surviving in this digital age?

Cloud tools and services are increasingly critical to a business survival given the shift towards remote working, convergence between marketplace and the financial services i.e. embedded finance and use of big data to target and retain customers.

Machine learning (ML) and artificial intelligence (AI) are also crucial in transforming data into assets as part of the digital transformation process.

However, businesses must have a deep understanding of their functions and applications in the process to effectively harness these tools for business and process reforms

• What are the prizes for this year’s Demo Day?

The selected 12 Demo Day contestants will receive USD$3,000 of Alibaba Cloud credits while the winner receives USD$60,000 of Alibaba Cloud credits. 

Specifically, the Demo Day winner will be enrolled into the Alibaba Global Startup Accelerator programme to be part of the Alibaba Cloud’s global ecosystem

In addition, all contestants will also receive:

A) an opportunity to connect with our VC partners from SEA and China, gaining valuable insights and business advice as well as access to these markets

B) potential media exposure from more than 30 media companies in Asia

Besides Demo Day, how else is Alibaba Cloud supporting local businesses?

We have an established network of investors, accelerators and partnering government agencies to enable local businesses to widen their market network and access to potential funding opportunities.

Alibaba Cloud Innovation Center KL (ACICKL), in particular, plans to establish a panel experienced entrepreneurs and industry experts to continue providing mentorship, support and guidance to startups to ensure that they grow and thrive in the digital economy.

There are also events and workshops in the pipeline that focuses on accelerating business growth and fundraising strategies.

On the technology front, our technology experts can support businesses in assessing, enhancing and developing their technological solutions using our services and tools.

Alibaba Cloud is part of a behemoth of an ecosystem where startups can emulate their successful business models and growth trajectory.

There are also opportunities to strike business partnerships within the ecosystem which will enable and accelerate growth and market expansion, particularly China via co-branding opportunities with Alibaba Cloud ICP.   

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