Staff salaries tangled up in Octopus’ tentacles

This week’s On the Rise reveals Octopus’ failure to pay staff, persistence of Singapore’s biotech startups, and the ugly truth behind carbon offsets. [Read from your browser]( On the Rise 🚀 Welcome to On the Rise! Delivered every Tuesday via email and through the Tech in Asia website, this free newsletter breaks down the biggest stories and trends in emerging tech. If you’re not a subscriber, get access by [registering here](. --------------------------------------------------------------- IN FOCUS In today's newsletter, we look at: - [Octopus sinking amid unpaid staff wages and stalled acquisition talks]( - [Why Singapore’s biotech sector is more successful than people think]( - Big Tech companies being bearish on climate goals Hello {NAME} I’ve been rewatching the first season of The Bear as Season 3 just premiered last week. For those unfamiliar (how can you miss out on one of the best shows on streaming right now?), the show tells the story of a top chef, Carmy, who is trying to rebuild a hole-in-the-wall sandwich shop in Chicago into a full-fledged fine-dining restaurant. There’s a lot of bickering and screaming in the show, as Carmy deals with the bad business decisions the former owner - his brother Michael - left behind. That includes missing tax payments and letting the shop be in a state of disrepair, for years. The TV show’s portrayal of mismanagement can be engrossing and truly entertaining. The Bear has repeatedly won the Emmys, after all. But a business falling out in real life can be heartbreaking to witness as it leads to grave consequences that can affect the lives of many. That was very much apparent in one of our first Big Story this week. In [Octopus sinks amid unpaid staff wages, stalled acquisition talks]( my colleague Budi unravels the struggles of the employees of the Indonesia-based waste management startup. Octopus has left over 100 blue-collar workers unpaid for almost half a year. The startup’s CEO tried to sell the business to competitors but found no substantial leads. A deeptech startup vertical that has seen a fair share of struggles is the biotech scene in Singapore, which Melissa reports on for this week’s second Big Story: [Singapore’s biotech sector is more successful than people think](. The story charted how biotech firms in the city-state remain optimistic about succeeding despite limited funding - in contrast to those in more mature markets, where the chance of “getting acquired, listing, or commercialization” stands at 20% or less. Stakeholders argue that the barometer for success is different for biotech firms, as it takes almost a decade for a company to reach the clinical stage - or the part wherein it develops a viable medical solution. These days, it seems a review of the metrics for success for many industries is evolving. Take a look at how companies measure their sustainability goals, for example. Just a few years ago, Big Tech companies were aggressively campaigning for its net-zero goals. But that was before AI took over the conversation. The energy-sucking data centers powering Big Tech’s AI models are [reportedly increasing]( the emissions of these companies. They’ve already been using carbon offsets to make do with their promise to lower emissions - which is a highly criticized method. Now over 80 non-profit organizations, including Greenpeace and Oxfam, have made their stance official: Carbon offsetting “undermines” climate goals. In a [five-page letter]( the organizations said carbon offsetting “inherently lacks credibility” as programs around it have been uncovered to have caused “social and environmental harms.” “Carbon credits send a misleading signal about the efforts required to pursue climate action, and they undermine carbon prices by providing a false sense of the existence of ultra-cheap abatement options around the world,” the letter read. It remains to be seen how such a strongly worded letter would affect how big businesses do their part in fighting the climate crisis. It has already been [reported]( that corporations are delaying, or worse, dropping their net-zero goals, due to a lack of technological advancements that can help them do so. Even back here in Asia, 98% of “investable” companies have [been found]( to have “less than fully credible, not credible, or absent” climate goals. At this point, the climate crisis conversation in Asia is playing out like one of the most highly stressful scenes from The Bear. By the end of the second season, Carmy was found locked in the walk-in freezer of his restaurant, screaming for help, but with no one to blame but himself, as he forgot to fix it. – Elyssa  --------------------------------------------------------------- DEEP READS Also check out Tech in Asia’s coverage of the emerging tech scene [here](. 1️⃣ [Is AI killing the web search engine?]( This is the question Scott tries to answer in an analysis of how Google’s move to capitalize AI on its search engine can change the internet business, perhaps, for good. AI Overviews on Google summarizes findings in the search engine. Publications, advertising firms, ecommerce players, and virtually any businesses that rely on the search engine for market traction would then likely be the first ones to be affected by the change. 2️⃣ [VC secondaries may be the next financing option for startups]( VC secondaries, which the writer calls a “cousin” of private equity investing, remain a small market. Under this investing scheme, limited partners could sell a part of their stake to another, while another version of it sees VC funds using their portfolio as collateral to borrow capital. The writer says the practice is still not as prevalent here in Asia as it is in the West, but he argues it is worth considering to boost investments in the region. 3️⃣ [A Vietnamese founder of an edtech startup is investigated for misappropriation of funds]( Kevin Tung Nguyen, who owns job recruitment platform JobHopin and edtech startup Skola, is being investigated by Vietnam’s Police Department for Economic Crimes for allegedly misappropriating funds in the latter. The startup founder has denied wrongdoing. He confirmed, however, that the majority of his employees in JobHopin - close to 200 at its peak - have either resigned or been laid off. ---------------------------------------------------------------  EVENTS HAPPENING You can also check out a curated list of trending tech events [over here]( and Tech in Asia’s signature events [here](.  [Tech in Asia Conference Kuala Lumpur 2024: Malaysia on The Rise on July 24 - 25]( Over 1,000 founders and investors have already signed up, and you're invited. This is your chance to be part of the dynamic Southeast Asian tech scene. Hear from top industry speakers like Nadira Yusoff, CEO of Kiddocare, Sheyantha Abeykoon, Group CEO of Boost and Kel Jin Chua, Director of Shopee Singapore at the stage sessions of #TIAConferenceKL. Final release tickets are selling fast. [Secure your tickets today.]( [Tech in Asia’s Founders Meetup in Malaysia on July 25]( What if you could walk into a room filled with Malaysia’s top tech investors and founders, all eager to connect and collaborate on game-changing ideas? Founders Meetup is your opportunity to transform fleeting encounters into lasting partnerships. [Get your tickets now]( – don't let this opportunity pass you by. [KL Conference Exclusive: Networking Night on July 24]( Seize the opportunity to connect with the brightest minds and most influential players in Asia's tech ecosystem, all while enjoying panoramic city views and delicious treats. This exclusive event is only open to Tech in Asia Conference Kuala Lumpur Pro Pass holders. [Secure your spot on our guest list today!]( [KL Conference Exclusive: After Party on July 25]( After two days of high-impact learning, join us at the official closing party to unwind, socialize, and celebrate the thriving startup scene in Malaysia. There’s no better way to do so than by immersing yourself in its vibrant energy firsthand. This exclusive event is only open to Tech in Asia Conference Kuala Lumpur Pro Pass holders. [RSVP now to secure your spot!Â]( [Tech in Asia Conference Jakarta on Oct 23-24]( Where is the next Silicon Valley? It might just be Jakarta! Indonesia's young tech talent is booming, and Tech in Asia Conference Jakarta puts you right in the center of the action. Join us at #TIAConferenceJKT to connect with 4000+ region's brightest minds, 150+ hottest startups, and hear straight from 80+ experts. Early-bird tickets are now available! [Snatch the 75% discount while it lasts!]( ---------------------------------------------------------------  That’s it for this edition - we hope you liked it! Do also check out previous issues of the newsletter [here](. Not your cup of tea? You can unsubscribe from this newsletter by going to your “edit profile” page and choosing that option in our preference center. See you soon! [ADVERTISE]( | [SUBSCRIBE]( | [HIRE]( | [FIND JOBS]( P.S. Don't miss out on the biggest tech news and analysis. Add newsletter@techinasia.com to your address book, contacts, or safe sender list. Or simply move us into your inbox. Too many emails? Switch to a different frequency or get new content through our [preference center]( or [unsubscribe](. You can also break our hearts and remove yourself from all Tech in Asia emails over [here](  Copyright © 2024 Tech in Asia, All rights reserved. 63 Robinson Road, Singapore 068894