Investment and Ecosystems Have Crucial Contribution to The Growth of Indonesia's Startup
Discussion result in talkshow sessions held in Kolega’s new co-working space
Andriansyah Agustian - 17 November 2017
Reaching the end of 2017, commonly there will be a lot of reflection related to the journey of the last one year. There is no exception to Indonesia’s startup landscape, starting from the business achievements, technological innovation, and various supporting component development began to be discussed. In the inauguration of Kolega Primedge’s new co-working space last week, a talk show was held, highlighting several issues related to the startup development until the end of 2017.
Some speakers are presented in this occasion, Head of Investment Mandiri Capital Aldi Adrian Hartanto, Director of Business Strategy MallSini Steven Yee, and Co-Founder GDILab Jefri Dinomo. The three speakers discussed two main topic, namely how investment affects the national startup ecosystem and how collaboration in the ecosystem should play a role in accelerating startup business.
Funding is still a backbone of Indonesia's startup stability
The panelists highlighted, after the startup successfully defined the initial stages - including products, business strategies and others - the next step requires acceleration. It will accelerate the growth rate and traction of product using various types of approaches, growth hacking for example. At this phase, startup will require a larger capital, a huge one, so an advanced stage investment is needed here.
"In running the business, it requires not only good output, but also solid cooperation, because the investor will prioritizes the quality of every individual in creating a startup product," said Steven.
At this phase, it is important for startup to start establishing communications and relationships with investors. In relation to this, the panelists stressed on neccesary things to be brought to investors is a value that carries possibility for both parties to do collaboration, between startup and the investor. Another important point is, funding should be placed in a position to improve business performance, it is necessary to make an ideal form first in terms of product and market orientation before deciding to do fundraising and "burning money", certainly for market share development purpose.
This is what Mandiri Capital examines when considering to provide funding for startups, especially in early stages. This year, it was admitted that there was a decrease in the number of startups injected by Mandiri Capital, Aldi explained this was due to the change of mentality of the perpetrators, thus making investors' considerations more complicated.
"Investors tend to be more selective when they want to invest, it’s necessary to think about many things related to future prospects. Starting from the company's profit strategy, growth rate, and startup testing in order to survive," said Aldi.
Growing startup through the existing ecosystem network
Furthermore, Jefri from GDILab said that the strengthening aspect of a product (including from the technology side) is crucial. Since the quality of the product will be the most dominant for startup after all, including to get funding. The increasingly tight market makes every player must think sharp and innovative to see various of existing opportunities. Products must be dynamic, ready to grow adjusting the problems in its target market.
The speakers also believe that the existing ecosystem can actually be used as a medium for startup people to be connected to each other, between startup players, investors, and up to the individual level (related to talent). The development of infrastructure that continues to be pursued by various parties, will always create a new path for digital startup to grow rapidly.
- Original article is in Indonesian, translated by Kristin Siagian