Riding the new wave

• Early this year, 500 Startups surveyed over 122 investors on the impact COVID-19 has had on the early-stage investment climate. Key findings were reported by Built In, with principal Amit Bhatti weighing in.

• “Those times were definitely a little nerve-wracking,” Amit recalled of the moment the pandemic hit. But by June of 2020, 500 Startups had adapted to the events and continued investing as before. The difference is that it now takes into account startups that may be benefiting from a short-term, pandemic-related boost, in addition to those that are part of a long-term technological shift, like remote work tools.
• The survey found that 500 Startups was not the only one making such adjustments. As a result, valuations remain steady, and VC firms have no plans to slow down investing in 2021. The majority of investors reported their investment activity has either remained the same or increased during the pandemic.
• Driving this momentum is the tech companies. Those successes have given early-stage investors the confidence to keep looking toward the future, rather than worrying about the immediate uncertainty.
• Download the full report from 500 Startups here.

Cruelty-free beauty

• 500-backed abillion released a report on the sustainable beauty movement based on close to 600,000 reviews on its platform.
• According to the report, the global vegan beauty products market is expected to reach US$25.3 billion by 2029, with key drivers of this growth being the rising awareness of cruelty-free beauty, the importance of environmentally viable products, and the superior quality of natural personal care and cosmetics.

• 26% of beauty reviews on the abillion app specifically mention ethics, sustainability, transparency, clean and non-toxic ingredients and/or cruelty-free. Furthermore, mention of these topics has increased 19% since the end of 2019.
• The startup’s analysis found flexitarians have the highest level of engagement with beauty products. This segment also exhibited the highest growth in demand compared to other consumer groups, growing nearly 14X in 2020.
• Read the full report by abillion here.

Turning food into fashion

• 500-backed sustainability startup Mycotech Lab was recently featured in Green Queen. The star? Its mushroom leather.

• The startup experimented with the fermentation process used to make tempeh, a traditional Indonesian food made from fermented soybeans, to make a new fabric out of the complex root structure of mushrooms.
• The final product, developed with fungus grown on sawdust that then gets scraped off and dried and cut into different sizes, is Mylea. This fibrous but tough material acts just like real leather. It is waterproof, pliable, durable, and most importantly, sustainable.
• Read the full feature in Green Queen here.

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500 Startups is a venture capital firm on a mission to discover and back the world’s most talented entrepreneurs, help them create successful companies at scale, and build thriving global ecosystems. In Southeast Asia, 500 Startups invests through the pioneering 500 Southeast Asia family of funds. The 500 Southeast Asia funds have backed over 240 companies across multiple sectors from internet to consumer to deep technology. It continues to connect founders with capital, expertise and powerful regional and global networks to help them succeed.

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