BEYOND UNICORN: Private Investors' Knowledge Base

Today’s guest is Bruce Pon, CEO of BigchainDB and founder of Ocean Protocol. We began our conversation by probing into the value of data as an asset, what are the problems preventing the value of data being unlocked and how Ocean is solving that problem by building a protocol for data sharing, how it envisions global adoption through community building and industry partnerships. We discussed about the Ocean token – its usage, value creation and learnings from its IEO and ICO. Finally, we imagined a future where Ocean Protocol becomes the de facto protocol for access control and an Ocean DAO driven entirely by its contributors.

A personal disclaimer before we begin – I am a holder of Ocean Token since March 2019.

Key highlights from our conversation

Data is worth at least as much as land Data is the new asset that people are going to be able to monetize, securitize, use as collateral. The hypothesis is that data is worth at least as much as land which is estimated to be worth $7trillion by an economist. This belief is further reinforced by the fact that the top 10 most valuable companies in the world today are mostly internet platforms, information platforms.

Blockchain is the middle layer between data provider and data buyer The key problem with centralised data marketplaces is that they need to have custody of your data which results in the need for trust – data providers need to trust that the data marketplaces can manage your data well, keep it secure and provide you with a full audit trail. This often limits data sharing. What blockchain can do is to act as a trusted middle layer – the custodian for data, providing the data providers the full control of their data.

The Ocean Protocol is fundamentally an access control system.

Currently, there aren't any other protocols that look at data sharing as an access control problem. Ocean is the access control layer. In five years, what I want is Ocean being seen as the protocol that everybody follows to use for access control.

The usage and value accrual of Ocean Token At the very core, any crypto token can be used as a means of exchange. In the case of Ocean token, it is the means of exchange within Ocean Protocol. So that's the base level.

Second thing. And this is since the inception of the proof of authority network, you can use Ocean tokens to kickstart smart contracts on our proof of authority network. So right there was utility of this kind of a native token for a unique network.

Moving into the future, we're going to have some other exciting kind of uses of the Ocean token. Number one is we're going to kickstart the network rewards. This is 51% of the total supply that we've talked about from the very beginning. That is kind of a discount token model that allows value to come back into the ecosystem if people are using the protocol. And then there's another use case where we have for the Ocean token, which is governance. That's a little preview of what we're going to be releasing later on this year.

In the blockchain space, you can't separate speculation from utility from kind of global adoption. I think it all plays together. I see speculation very, very optimistically. It is viewed as this interplay between builders, speculators and the existing kind of traditional world where we are trying to disrupt.

Content at a glance with time-code

(01.36) Bruce’s background story (03.18) BigchainDB and Ocean Protocol explained (05.57) Data as an asset is worth at least as much as land (07.38) Core problems in data that Ocean Protocol is solving (17.56) How Ocean Protocol is designed to overcome trust, privacy and security of data (20.30) Uses cases and industry partnerships of Ocean Protocol (24.59) Importance of community for decentralised projects like Ocean Protocol (27.30) The usage and value accrual of Ocean Token (33.03) Learning from Ocean’s failed IEO (36.47) The value of speculation within Crypto (39.38) The future of Ocean Protocol imagined

Episode linksBigchainDB: https://www.bigchaindb.com/ Ocean Protocol: https://oceanprotocol.com/ Ocean’s blog post on IEO: https://blog.oceanprotocol.com/what-happened-with-the-ieo-54cc5c6c3db9

ChainLink: https://chain.link/

Today’s guest is Veronica Zhou, partner of Blue Elephant Capital, the first pure play education technology focused early stage investment fund in China. We began our conversation by segmenting the Chinese education market into 3 broad segments, namely to consumer (2C), to school (2S) and to business (2B). We then delved deeper into the complex sales system in the “to school” segment; how Covid-19 created the paradigm shift in online education. And lastly, we discussed Blue Elephant Capital’s investment approach and the key investment theses in the next 5 years.

Key highlights from our conversation

Chinese education market is divided into 3 broad segments 1) To Consumer (2C): to families and students 2) To school (2S): to schools, education bureaus, to government’s budget 3) To Business (2B): this includes 600,000 small and medium sized afterschool shops; about 20 large scale education companies such as TAL or New Oriental

Education spending continues to rise across China Families in the first-tier cities (e.g. Beijing, Shanghai, Shenzhen) in China spend on average 20 to 30% of their disposable income on their kids' education. This trend is observed to be growing over the last few years, and is also developing in the second-tier cities such as the provincial capitals and other more affluent cities in China. It is observed that in a certain city, once over 40% of students go to after school classes, a flipping point will be reached resulting in FOMO - suddenly everyone wants to go to the after-school classes and every parent feels obligated to send their kids there.

2S is the largest segment with government spending on public education expected to riseThe government spending on public education system in China is about RMB 5 trillion - just above 4% of GDP for China. In more advanced economies like Northern Europe, this ratio is about 8% of GDP. So, it is believed that the Chinese government spending on the public education system will continue to grow.

Covid-19 led an 85% increase in online education but this is believed to be temporaryThe first wave of online education start-ups came into existence around 2013. By 2019, data shows that about 15% of the consumer market is acceptive to online education. Covid-19 led an 85% hike in the online education market. But it is believed to be temporary as the majority of the education will still be conducted in physical campus and the majority of the school system will go back to its old track.

Key growth trends identified are 1) education of kids before 3 years old 2) after kindergarten market: OMO (online merges offline) 3) Screenless education for kids before 6 years old 4) Online education for vocational training 5) digitalisation of physical campus 6) The use of new media like TikTok for education purpose

Content at a glance with time-code

(01.20) Veronica’s background story and a brief introduction on Blue Elephant Capital (02.39) Overview of Chinese education market: how it segments to 2C, 2S and 2B; key trends within each segment (09.13) 2S: what areas of private investments are relevant for the 2S segments (11.25) The government’s procurement and purchasing decisions within 2S (16.25) Chinese online education before and after Covid-19 (26.06) Blue Elephant Capital’s investment approach (32.07) Key growth trends in EdTech in the next 3-5 years (38.06) The unicorn discussion

Episode linksBlue Elephant Capital: http://en.ibecapital.com/

Today’s guest is Yemisi, an epidemiologist specialising in infectious disease at the World Bank. We began our conversation by giving an overview of the virus causing Covid-19, what we knew and what remains to be learnt; we discussed the intricate balance between country priorities and global coordination needed to prevent and respond to a global pandemics like Covid-19; the six building blocks of a well-functioning healthcare system, and the progress made on the global coordination efforts on vaccination and lastly the one thing that we hope governments around the world can learn from the current crisis.

Key highlights from our conversation

Corona viruses are very common in animals. Research has currently estimated that there are over 1,100 Corona viruses that currently exist in animals. Specifically, with regards to human coronaviruses, these were first identified in the 1960s. And to date, there are about seven corona viruses that can infect humans, which have been identified.

The risk of pandemics has been reported to be increasing in the recent decades. Some of the reasons for these increases has been the large rates of urbanization and industrialization, which has led to the disruption of ecosystem humans coming in close contact with wildlife habitat.

The WHO health systems framework encompasses six building blocks 1) service delivery 2) health workforce 3) health information systems 4) access to essential medicines 5) financing 6) leadership / governance.

International Health Regulation 2005 is a legally binding document that countries follow to ensure that they're improving their core public health capacities to be able to adequately prepare, detect, and respond to infectious disease outbreaks.

Healthcare is typically on the funder, and a big part of what has occurred is that there is more reactivity as opposed to proactivity; it means that it's when a crisis has emerged, is when there's a lot of focus on reacting to the crisis, instead of using a wider lens of thinking through how we can be more proactive at preventing and averting crisis.

Content at a glance with time-code

(01.38) Yemisi’s background story
(05.00) What we know about Covid-19 and what remains to be learnt
(09.03) Epidemics and pandemics defined
(10.05) Urbanization and industrialisation resulted in increased risks of pandemics in recent decades
(12.07) The delicate balance between country priorities and global coordination
(20.52) What it takes to shift from reactive to proactive mindset
(22.18) The development and global coordination efforts around vaccination
(25.38) The one thing that we should learn from the current crisis

Episode links
WHO Health Systems Framework: https://www.who.int/healthinfo/systems/WHO_MBHSS_2010_full_web.pdf

International Health Regulation 2005: https://www.who.int/ihr/publications/9789241596664/en/

Today’s guest is David Ng, co-founder and CEO of Pollen, a community sales-as-a-service platform empowering brands to turn their fans into resellers. We began our conversation by diving into Pollen’s business model – understanding the challenges and opportunities of a B2B model versus a B2C model, dissecting the key value proposition and the key stakeholders’ relationships of social commerce, highlighting the difference between social commerce and multi-level marketing. Lastly, we discussed the competitive landscape of social commerce and how Pollen positions itself among the competitors.

Key highlights from our conversation

Direct to consumer brands and social commerce go hand in hand A lot of famous direct to consumer brands became popular due to social media so what social commerce does for D2C brands now is to enable them to go one step further from engaging their community through contents to turning them into resellers for the brands.

Key difference between multi-level marketing and social commerce Multi-level marketing is focused on the recruitment of other agents where the bulk of the income comes from instead of selling for the brand while social commerce focuses on selling for the brand by attracting people who can build personal relationships with the buyers.

The key value proposition for social commerce is centred around the hypothesis that “I am more likely to buy it from someone I trust as opposed to buy it from someone whom I don't know or by seeing a brand’s advertisement”. There are three key stakeholders at the heart of social commerce – the brand or supplier, the resellers and end consumers.

Casual sellers make up the bulk of the reseller network 75% of the community piloted at Pollen is made up of casual sellers who are potential buyers too while the remaining 25% of the community are hardcore sellers who see social commerce as a way a main income generating engine.

Non-commodity type products are more suitable for social commerce such as fashion, beauty, food, wellness, lifestyle because purchasing decisions for such products depend on a multitude of factors beyond pure functionality and price alone.

Content at a glance with time-code

(01.26) David’s background story and the journey to founding Pollen (03.22) Snapshot of Pollen’s business model (05.09) Direct to consumer brands and social commerce go hand in hand (07.43) Difference between social commerce and multilevel marketing (11.46) Casual sellers vs hardcore sellers (13.36) The B2C element of social commerce (16.04) What types of products work best for social commerce (20.05) B2B vs B2C social commerce business models (32.20) Unicorn discussion: the fine balance between profitability and valuation

Episode linksPollen: https://www.pollen.store/ Jumper AI: https://jumper.ai/

This episode is part two of our industry talk on fashion and retail. And it follows on from our discussion in the previous episode released two weeks ago. In this episode, we looked at the rise of Direct to Consumer brands, and how technology contributed to this trend; the truth surrounding online and offline retail, the challenges faced by department store and then circling back to considerations of franchising and licensing which were first introduced in the last episode. Finally, we conclude our discussion by zooming out to a more general discussion on overall industry trends.

Our expert guest is Stefaan Le Clair, the Managing Director of Berenike Global Fashion Management. Stefaan’s past industry experiences include being the VP of Retail Europe at Espirit Group, the CEO of denim brand Lee Cooper, the General Manager of Hudson’s Bay Benelux which is also the parent company of Saks Fifth Avenue, the CEO of Galerie INNO which is a department store chain in Belgium.

Key highlights from our conversation

Direct-to-consumer brands: do-it-all Vs excel-at-allDirect to consumer brands have the ability to communicate directly to end consumers instead via third parties thus it is easier to maintain distinct brand entity. However, when it comes to distribution channels, it is rare to see brands who do-it-all become a specialist in all the channels. So, brands have to strike a fine balance between do-it-all but not excel at all aspects and outsource certain elements to more experienced partners.

Online and offline are doomed to be married forever The cliché discussion of “is offline going to die in favour of online?” or “is online going to die because of lack of profitability?” is unlikely to yield useful conclusions. What is more important is the wishes of consumers which depend very much on the type of product and the emphasis on convenience.

Certain products such as mid-level premium luxury brands and lingerie work better in offline settings with the involvement of salesperson while for certain product categories, online offer the opportunity of wider product assortment which is difficult to achieve offline. So, it is important for brands and retails to be present in an omni-channel environment with a blend of online and offline channels.

The key to the future of department store is social Department store is a complex business with very huge surfaces and wide selection of product categories. It has a negative reputation today because it has never changed. The future of department store rests on its ability to recreate the social element of being a gathering place for people, working place, eating place or even a sleeping place – a place where people come to experience something, to have an “event” feeling at certain moments. Successful examples of ILLUM and Selfridges are highlighted.

Licensing and franchising remain a viable business model It is important to recognise that it is difficult to excel in all aspects of the business. It can be beneficial to find a partner with complementary skillsets. This is especially true for geographical expansion where local network and expertise are crucial. As a brand owner, one needs to ensure that you have a good contract in place to guard and police your brand DNA.

How technology helps fashion and retail companies The first major role technology plays in advancing fashion and retail companies is on consumer data and insights. The second role it plays is in helping businesses to become more agile and flexible so to respond to ever changing consumer demands. These two roles are most critical when evaluation the usefulness of a technology to fashion and retail brands.

Top 3 sub-segments with high growth potentials are highlightedTravel retail is the fastest growing sub-segment before Covid-19; however, its development post Covid-19 remains unclear. Sustainability related sub-segment remains popular due to the rising environmental concerns worldwide. And hospitality is going through disruptive changes driven by the search of unique experiences.

Should we be worried of unprofitable retail unicorns? The drive to provide consumers with a 360-degree experience can stand in the way of profitability in the short-term. However, in the long term, the combination of the right leadership and the right vision together with technology can help to fight a profitable battle just like what we observed in the case of Amazon.

Content at a glance with time-code

(01.34) The rise of Direct to Consumer brands (05.02) Online vs offline retailing channels: convenience factor, type of products (15.13) Are department stores dead? What changes do they need to implement to survive in the future? (22.39) Licensing and franchising as a business model to grow (28.28) Technology trends or applications in fashion and retail (33.13) High growth sub-segments within fashion and retail are highlighted - travel and sustai...