Kraken Ventures dives into crypto pit with a $100m lifeline

This week’s On the Rise looks at a new crypto fund, analyzes SEA’s healthtech scene, and dives into task-specific AI models. [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: - Kraken Ventures’ [new US$100 million fund]( - [A map]( of the healthtech scene in Southeast Asia - Task-specific AI models and their functionality Hello {NAME} , My niece was the most spoiled kid in our family. She received - and still does - massive amounts of love and affection from everyone, especially from her four grandparents. There's hardly been any wish of hers that hasn't been granted. So it was probably a bit of a shock when her brother was born and she was no longer the youngest child. The baby is now the center of attention. She feels like the family's love has shifted towards her brother, and she’s throwing tantrums. Observing her behavior made me think of what happened to the crypto industry. Crypto is no longer the favored one among venture capitalists. GenAI, the latest tech to dominate the scene, is taking center stage in VC portfolios, with crypto investments declining 4x this year compared to 2022. It’s in such times that true believers can shine. In this week’s feature story, my colleague Deepti discusses how Kraken Ventures, the VC arm of US crypto exchange Kraken, is looking to raise US$100 million for its second fund amid these challenging times. And in this week’s AI Odyssey, I talk about task-specific AI models and whether they’re worth the time and effort of startup founders. -- Lokesh  --------------------------------------------------------------- THE BIG STORIES 1️⃣ [Why this crypto VC firm is confident of raising $100m fund in a bear market]( Global funding for Web3 startups [plummeted 76% in Q2 2023]( compared to the previous year. Web3 startups also secured just over US$1.8 billion in funding across 322 deals. Still, Kraken Ventures plans to invest in startups focusing on blockchain integration of real-world assets. 2️⃣ [SEA’s healthtech map reveals challenges in funding path]( While the amount raised by healthtech firms in 2023 has already outpaced previous years, funding deals have slowed down. --------------------------------------------------------------- AI ODSSEY Promising AI projects we’re noticing GenAI, OpenAI, and the costly shift Talk about generative AI has ruled 2023 so far. Most of the CTOs from Big Tech firms I have talked with are either already using or planning to tap genAI for writing documents, summaries, and emails. A lot of them are using OpenAI’s APIs to do so, helping the Microsoft-backed startup cross the [US$1 billion revenue mark]( this year. There is one problem, though. It’s expensive - so very expensive. Just a couple of days ago, Thomas Wolf, one of the brains behind open-source AI community Hugging Face, [tweeted]( about Pete Hunt, a developer who established a startup called Summarize Tech. To provide summarization services to its 200,000 monthly users, Hunt’s startup was relying on GPT-3.5. But OpenAI’s API was costing him around US$2,000 per month. When Hunt made the switch to an open-sourced model called [Mistral-7B-Instruct]( Summarize Tech’s monthly expenses dropped to less than US$1,000. He insists there was no drop in service quality, and the startup didn’t get any complaints from users. If GPT-3.5 is pricey, then GPT-4 is a real [budget buster](. No wonder startups are shifting away from OpenAI's API, and founders I spoke to are looking into task-specific large language models that are both efficient and cost-effective. Take for example [BioMedLM 2.7B](. Trained exclusively on biomedical abstracts and papers, this language model provides similar answers to ChatGPT when dealing with medical queries. But here's the big question: Are startup founders ready for the extra hassle that comes with going open source? Dealing with GPUs, Linux drivers, API gateways, and the like will always be a headache. And even if founders opt for Amazon Web Services or go with someone else to host it for them, they'll still face fixed costs and have to hire more talent to handle these functions. For founders, having the savvy or getting the right advisor who can help navigate the development of AI features will be more crucial than ever.  --------------------------------------------------------------- NEWS YOU SHOULD KNOW Also check out Tech in Asia’s coverage of the emerging tech scene [here](. 1️⃣ [Arogga doses up with $4m to battle counterfeit meds]( The Bangladeshi startup has raised US$4 million to combat the spread of fake drugs by making genuine meds more accessible and affordable. Led by The Venture Collective, the round brings Arogga's total seed funding to US$5.5 million. 2️⃣ [Ola Electric gets juiced with $384m funding]( The India-based electric vehicle maker has secured US$384.4 million in fresh funding, with Singapore's Temasek as the lead investor. A portion of this capital is in the form of debt obtained from the State Bank of India. 3️⃣ [FPT, Landing AI to develop Vietnam's AI talent]( Landing AI, the startup founded by famed AI scientist Andrew Ng, has teamed up with FPT Corporation to bolster Vietnam's AI talent pool. While the partnership does not involve direct financial investments, the companies are looking into setting up an AI engineering center in the country. 4️⃣ [Protos Labs banks $2.2m to fend off cybercrime in Vietnam]( The Singapore-based cybersecurity provider is poised to enter the Vietnamese market after its seed round, which was led by VinaCapital Ventures. 5️⃣ [Ex-Lazada exec’s prefab venture snags $10m]( Stilt Studios, a Bali-based startup that offers eco-friendly and cost-effective housing solutions by using modular construction and sustainable materials, has secured US$10 million in a series A round. Florian Holm, Lazada's former co-CEO for Indonesia, established the startup in 2019.  --------------------------------------------------------------- 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 © 2023 Tech in Asia, All rights reserved. 63 Robinson Road, Singapore 068894