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And the Award Goes To… Our 2021 Global Fast Track Entrepreneurs

This year marks the five-year anniversary of the Global Fast Track Program in China, and to commemorate the successes of our program members, we held the Indiegogo 2021 GOGO Innovation Summit & Awards in Shenzhen, where we heard from thought leaders in the field and handed out Innovation Awards to the top campaigns of the year. Here’s how the 2021 GOGO Innovation Summit unfolded.

Dramatic campaign successes in 2020

Over the past year, we’ve seen incredible successes coming out of China from our Global Fast Track Program entrepreneurs. China-based campaigners of all types have used Indiegogo, —  China’s number one crowdfunding platform — to kick off their product journey and launch on the global stage. 

Global Fast Track Program campaigns have raised over $300 million (2 billion RMB) since the program’s inception, and 40 companies have gone on to raise at least $1 million (6.5 million RMB) for their products. The program also saw 40% year-over-year growth in China in 2020, a formidable achievement during the COVID-19 pandemic.

Many of Asia’s biggest brands have been behind these launches, introducing products, building communities, and getting feedback from backers in the global market. These brands include:

  • Midea, one of China’s largest home appliance companies, which launched their first crowdfunding campaign on Indiegogo and raised over $1.5 million, opening their global market and a building global community
  • Huami Amazfit, a leading tech brand from the Xiaomi Ecosystem, which launched their first two crowdfunding products on Indiegogo in 2020 (here and here), successfully kicking off their new health and fitness product line
  • Segway-Ninebot, famous for their scooters, has launched several products on Indiegogo and successfully IPO’ed in 2020

The 2021 GOGO Innovation Summit 

Representatives from Midea, Segway-Ninebot, Padmat, and CIGA discuss what it takes to bring high-quality and innovative products to an international audience.

The event was the first of its kind since the launch of the Global Fast Track Program in 2016 and included panelists and speaking opportunities from some of China’s leading voices in crowdfunding and cross-border product launches.

Jean Li, China Hardware Lead at Indiegogo, kicked things off, sharing success stories from entrepreneurs who have successfully gained support from backers and have built a global community by launching their products on Indiegogo.

The Indiegogo China Team is here to help China’s top innovative products launch in global markets. 

E-commerce experts from Google, Amazon, and Tuya, also shared trends that have emerged during the pandemic in the realms of product development, customer behavior, and e-commerce opportunities. A second panel took the stage as well, where representatives from Midea, Segway-Ninebot, Padmat, and CIGA discussed what it takes to bring high-quality and innovative products to an international audience.

The summit wrapped up with a speech from Global OneClick, a top crowdfunding agency that specializes in the Chinese market, to share how crowdfunding can help build brands in the global market.

The 2021 Innovation Awards

This year’s recipients show off their 2021 Innovation Awards.

To honor outstanding campaigns in the China Fast Track Program over the last year, we also handed out our annual Innovation Awards. We evaluated all campaigns in the China Fast Track Program, and the following came out on top:

  • Best campaign of the year: Midea U-Shaped AC
    • Midea is the top home appliance company in China. They launched their new U-Shaped AC unit on Indiegogo, raising over $1.5 million in just a few weeks. The Midea U-Shaped AC unique is a radically new type of window air conditioner. Unlike traditional units, the U-shaped design blocks noise and allows users to open and close their windows around the unit itself.
  • Best New Campaign: Bluetti AC200
    • First-time crowdfunders Bluetti launched their AC200 solar power station on Indiegogo last year, and raised $6.7 million from backers all around the world. Bluetti’s mission to create a stable, clean, and quiet power set them apart from the competition.
  • Most Valuable Brand: GPD
    • GPD has launched at least one product on Indiegogo every year since 2016, to date bringing over 10 campaigns to market. The company focuses on handheld game consoles and has built outstanding relationships with the Indiegogo backer community. Their most recent campaign, the GPD WIN3, raised over $3 million. 
  • Community Favorite Award: Amazfit X
    • We asked our community to pick their favorite campaign in the China Fast Track Program and Amazift X, the world’s first fully curved smart watch, is this year’s crowd pleaser!
  • Best Crowdfunding Service Award: Global OneClick
    • Global OneClick has helped many campaigns in the China Fast Track Program achieve their crowdfunding goals. Many of the campaigns they’ve assisted went on to raise over $1 million, and for that, they receive the honor of the Best Crowdfunding Service Award.

Other awardees included:

Interested in learning more about the Global Fast Track Program? We’re here to help China’s top innovative products launch in global markets. Read more here to see if your project is the right fit.

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China’s Bitcoin Mining Industry Could Derail Climate Targets: Researchers

As China’s bitcoin mining industry grows bigger, some researchers believe the electricity-gulping bitcoin mining may prevent China from achieving its climate goals.

This was made known in a recent study published in the Journal Nature by the researchers. 

Increasing Concerns Over Climate Security

The study reveals that China powers approximately 80% of the world trade in cryptocurrency.

Given the fact that Bitcoin operates on the blockchain, every transaction is encrypted by a network operated by miners, which use high electricity consumption in the process.

The miners use high-powered computers to validate transactions, which consumes huge electricity and may have implications on climate security.

However, the Journal Nature report shows that 40% of China’s Bitcoin is powered by coal. This is where the problem starts. 

Researchers believe that since most of these big coal plants emit carbon, they may have adverse effects on the climate’s health.

While China projects to overcome carbon emissions before 2030 and become carbon neutral by 2060, the researchers warned that the lofty objective might be impossible with rising Bitcoin mining activity.

Also, Nature Study projected that China’s Bitcoin mines might accumulate approximately 130.5m metric tons of carbon emission by 2024.

The study gathers that the availability of affordable electricity in China and access to hardware-enabled companies in China controls about 78.89% of the global bitcoin blockchain.

The activities of these companies involve mining coins, tracking and monitoring cryptocurrency transactions.

However, the co-author of the piece, Wang Shouyang, warned that continued Bitcoin mining activities could have grave consequences on the climate if left unchecked.

Way forward On China’s Crypto Mining Industry

Experts have recommended some alternative paths that the Chinese government could take in managing cryptocurrency mining and preserving its climate security policy.

In this regard, Shouyang advised the government to concentrate on upgrading the power grid to create a stable power supply from renewable energy sources.

He explained that renewable energy sources provide cleaner energy and are also cost-effective, adding that this will even motivate the miners to relocate from coal-powered regions to clean-energy regions.

According to a Cambridge University’s Bitcoin Electricity Consumption Index, it is envisaged that the crypto-mining industry will consume 0.06% of the globe’s electricity production.

However, experts enjoined the Chinese government not to raise carbon taxes as a form of deterrence. Instead, they should work in providing alternative solutions.

China imposed a blanket ban on cryptocurrency in 2019 but has allowed the cryptocurrency mining industry to continue.

China’s coal-rich regions are imposing stiffer measures on Bitcoin miners, given their policy in curbing emissions. For example, In April, the provincial government of Inner Mongolia has rolled out plans to outlaw cryptocurrency mining before the end of April.

China’s Bitcoin Mining Industry Could Derail Climate Targets: Researchers

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British Business Bank: Recovery Loan Scheme Open for Applications

The Recovery Loan Scheme is now open for application. Administered by the British Business Bank, this is a new scheme to support access to finance for UK businesses as they turn the corner on the COVID-19 health crisis. The scheme, announced at the Budget on March 3, 2021, is scheduled to run until December 31, 2021.

The new program will allow UK firms to borrow up to £10 million for individual businesses and up to £30 million across a group. Funds may be used for any legitimate business purpose, including managing cash flow, growth, and investment.

The British Business Bank has been the organization that has been administering the Bounce Back Loan Scheme (BBLS), Coronavirus Business Interruption Loan Scheme (CBILS), and Coronavirus Large Business Interruption Loan Scheme (CLBILS). The Recovery Loan Scheme seeks to continue to support smaller businesses.

Features of the scheme include:

  • Up to £10 million per business: The maximum amount of a facility provided under the scheme is £10m per business (maximum £30m per group). Minimum facility sizes vary, starting at £1,000 for asset and invoice finance, and £25,001 for term loans and overdrafts.
  • Wide range of products: Businesses can choose from term loans, overdrafts, asset finance, and invoice finance (subject to the lender being accredited for each of these finance types).
  • Term length: Term loans and asset finance facilities are available from three months up to six years, with overdrafts and invoice finance available from three months up to three years.
  • Interest and fees to be paid by the business from the outset: Businesses are required to meet the costs of interest payments and any fees associated with the RLS facility.
  • Access to multiple schemes: Businesses that have taken out a CBILS, CLBILS or BBLS facility are able to access the new scheme, although the amount they have borrowed under a previous scheme may in certain circumstances limit the amount they may borrow under RLS.
  • Pricing: The annual effective rate of interest and upfront and other fees cannot be more than 14.99%.
  • Personal Guarantees: Personal guarantees are not permitted for facilities of £250,000 or less. Above £250,000 the maximum amount that can be covered under RLS is capped at a maximum of 20% of the outstanding balance of the RLS facility after the proceeds of business assets have been applied. No personal guarantees can be held over Principal Private Residences.
  • Recovery Loan Scheme-backed facilities are provided at the discretion of the lender.
  • Guarantee to the lender: The scheme provides the lender with a government-backed guarantee against the outstanding balance of the facility. The borrower always remains 100% liable for the debt.

Eligibility criteria include:

  • Covid-19 impact: The borrower must confirm to the lender that it has been impacted by Covid-19.
  • UK-based: The borrower must be carrying out trading activity in the UK.
  • Viability test: The lender will consider that the borrower has a viable business proposition but may disregard any concerns over its short-to-medium term business performance due to the uncertainty and impact of Covid-19.
  • Credit and fraud checks for all applicants: Lenders are required to undertake credit and fraud checks for all applicants, as well as customary checks such as Know Your Customer and Anti-Money Laundering. The checks and approach may vary between lenders.
  • Turnover limit: There is no turnover restriction for businesses accessing the scheme.
    How to apply

Lenders previously accredited to provide CBILS have been invited to apply for accreditation for the Recovery Loan Scheme.  Businesses are advised to first approach their own finance provider via the lender’s website. The Bank notes that if a lender can offer a borrower the choice of a commercial loan on better terms, without requiring the guarantee provided by the RLS, they should do so.

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Astorya, Search Engine for Insurance and Banking Tech, Reviews 10 Years of Insurtech in Europe

Astorya.io, which aims to serve as the search engine for Insurance and Banking technologies, has published a blog post, titled InsurTech Europe: 10 Years Of InsurTech In Europe Analyzed Through 800+ Startups (based on data from astorya.io).

While discussing how InsurTech startups are gaining considerable ground across Europe, the blog post notes that insurance tech firms are “moving the lines in the insurance world.” This, according to the study performed by astorya.io for L’Argus. These startups have played a key role in the transformation of the sector which is expected to expand further.

As noted in the blog post:

“Unrecognized five years ago, InsurTech startups seem to have found their place in the insurance industry, despite pockets of resistance. A recent study by research firm Juniper thus underlines that globally they already account for 5% of the turnover of the entire market, a rate that is set to double over the next four years. But this groundswell covers distinct trends.”

The blog adds that the US and China have witnessed the rise of a relatively large number of online or digital insurance providers “oriented B to C (business to consumer), the size and regulation of local markets allowing it.” The post further notes that this may be “an approach that is less suited to Europe, even if Alan or Luko are showing [solid] growth.”

For example, Maif announced last year that it had managed to acquire 66,000 new clients “across all of its products.” Meanwhile, Luko, on home insurance alone, “won nearly 100,000” customers — according to Florian Graillot, founder astorya.vc, an InsurTech fund.

The post further noted that “beyond these exceptions, the world of European InsurTech has experienced certain structural and historical trends, which astorya.io (database on InsurTech and FinTech, created by the founders of astorya.vc) analyzes in a study for L’Argus.”

The Astorya team added:

“First observation: the European InsurTech ecosystem has entered a phase of maturity for two years, as shown by the significant decrease in the number of newcomers. And for good reason: in France, Alan, Luko and Shift Technology have monopolized new financing, as has pet insurance specialist Bought by Many in the UK, or even, in Germany, players such as Coya and WeFox. For several years now, these three countries alone have grouped together three-quarters of the continent’s InsurTech startups.”

The report pointed out that another key highlight is “the positioning of these newcomers in the insurance value chain.” It also mentions that in this regard, the astorya.io study emphasizes one important point: “the preponderance of these InsurTech startups in the individual insurance segment, mainly car and home, to a lesser extent health.”

The blog post added that P&C insurance products are “simple, therefore standardized, and have low margins … For traditional insurers, they are primarily starter products. ” It also noted that to gain a foothold, InsurTech startups must “rethink its distribution” — according to Florian Graillot.

The  blog post continued:

“Although there have been a number of failures in this segment, the founder of astorya.vc believes the market is far from saturated and new start-ups may appear: E-commerce is estimated to account for 30% of total commerce, almost 50% if outside of the food market. Where are we in insurance? Comparators represent 10% of the market … In short, if insurance follows other sectors of the economy, there is still plenty of room for these new digital native players.”

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Cross-border Fintech Wise Talks IBAN Discrimination on World Consumer Rights Day, Other Fintechs Join Wise to Address Challenges

This World Consumer Rights Day, which took place on March 15, 2021, Fintech firm Wise (previous TransferWise) talked about what they consider to be IBAN “discrimination.”

Wise clarified that IBAN discrimination is “against the law – and has been since 2014.” However, the company claims that it’s “still common practice by many providers.”

Wise also confirmed that all EU nations have their own domestic IBAN, beginning with their country code (Think FR for France). Wise added that “regardless of which country your IBAN is from, it should be accepted anywhere in the EU.” And if a provider does not accept your IBAN – they’re “breaking the law,” Wise added.

Wise further noted via Twitter:

“Let’s say you want to pay for your gym membership in Spain (where local IBANs start with ES) using your Wise IBAN (which is Belgian, and starts with BE). If your Spanish gym doesn’t accept that Belgian IBAN, that’s IBAN discrimination.”

Wise revealed that it has teamed up with other Fintech companies in order to “put an end to this shady practice.” However, they still need the help of the general public.

If you’ve ever had to deal with IBAN discrimination, then you can let the company know.

As covered recently, moving money in 2021 should be like sending an e-mail – instant, according to Nick Catino from Wise.

Catino, who is responsible for Policy, Campaigns, and Regulatory Strategy at Wise (formerly TransferWise), recently noted that payments are the part of finance that consumers experience “most on a day-to-day basis.”

Catino also mentioned that there are certain important initiatives that will help “ensure the financial success” of Canadian consumers and businesses.

Payments Canada, which offers the payments infrastructure that allows Canadian residents, their businesses and their institutions to exchange value, notes that with the introduction of advanced payments methods “comes a need for modernizing existing payments regulations and infrastructure.”

Catino told Payments Canada that while “modernizing payments regulations and infrastructure” might “sound technical,” it is really one of the most “important” financial policy initiatives the Canadian government can lead. He explained that payments are the part of finance that consumers “engage with most” on nearly an everyday basis.

Catino added:

“Much like our mission at Wise, governments should strive to make payments instant, convenient, transparent, and as low cost as possible. Payments modernization will help meet those goals and ultimately help ensure the financial health of Canadians and keep more money in their pockets.”

Last year, it was reported that Transferwise (recently rebranded as Wise) had been approved in the UK to offer investment services for retail accounts. According to the FCA registry, “TIVN” is approved to offer various retail investment services. At that time, it was expected that investment features would be out before the end of 2020.

But the end of 2020 has morphed into 2021 minus any announcement on the new service. While Wise has continued to add new features, the ability to generate a return on cash held in a Wise account has been noticeably absent from the Fintech’s offerings.

And with the addition of investments, Wise will finally emerge from stealth bank to digital bank, executing on a mission established years ago. So when will the Wise Bank arrive in your market? Hopefully, we will know in the coming months.

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