On a Quest for sustainability

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Hello reader,

In past newsletters, I’ve written about how I don’t see myself as a potential founder or entrepreneur, even though I’ve worked in and around the tech and startup scene my whole career.

That said, if I were to establish my own company one day, I’d definitely want to make a product or service that will always be needed – something to do with food, energy, or healthcare, for example. This way, I can always help society, and demand will never really run out.

(I think so, anyway – famous last words of someone who hasn’t really done any research.)

Anyway, today’s premium article features Michelle Ng, Quest Ventures’ head for its environmental, social, and governance initiatives. Ng talks about the startup sectors that will be least affected by the current economic headwinds, among other topics. Let’s see if an expert validates my uneducated notions.

Today we look at:

• Quest Ventures’ thoughts on investing during a downturn
• The US$4 million seed round of a Singapore-based risk assessment and consumer intelligence firm
• Other newsy highlights such as Google’s new accelerator for nonprofit organizations and South Korean internet giant Naver’s latest billion-dollar acquisition

Premium summary

Keeping things sustainable

Image credit: Timmy Loen

The environmental, social, and governance (ESG) sector is quickly becoming the next big thing in tech. Recently, many startups that specialize in solutions that offer some environmental or social good have popped up. If Quest Ventures is correct, ESG will prove to be popular with investors as well.

• Standing firm against the downturn: Michelle Ng, the VC’s ESG head, says that startups in the agrifood tech and clean and alternative energy spaces will be the most resilient against the headwinds.
• Other essentials: Ecommerce for consumer staples and platforms that help consumers and businesses save costs will also be more resilient when faced with the current economic downturn. Fintech firms will also be less affected, as they would try to reallocate their cash and assets to preserve their value.
• Things to keep in mind: Ng says that while the valuations for tech startups will take a dip during a downturn – which means it’s an optimal time for investors to scoop up some of the best deals – the performance of the startup may also falter because of the recession. This leads to lowered returns for investors, so they need to balance the smaller valuations with the stunted returns when evaluating the companies that are fundraising right now.

Read more: Recession Run: Quest Ventures bats for food security, sustainable solutions

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