Parkpine Capital Prepares $15 Million for Indonesian Startups

The U.S. based venture capital Parkpine Capital said to have prepared US$15 million (more than Rp200 billion) for debut investment in Indonesian startups.

"We've committed for the first funding round [in total] with $150 million. Around $15 million will be used through co-investing in Indonesia. This is our first time in Indonesia," Ahmed Shabana, Parkpine Capital's Managing Partner, said in the middle of Global Venture Summit 2018, on Thu (4/26).

He explained that the investment is taken from the company's first funding round in late 2017. Their target is to raise $150 million from all the Limited Partner (LP). The process is planned to finish in April 2018, but being delayed to Oktober 2018.

There are two stages. The total US$75 million is for seed funding, and the rest is for further investment. There's US$15 million ready for initial investment in Indonesia.

In his opinion, Indonesia has the potential market in population, dominated by millennials, high penetration of internet and smartphone, and huge interest in trying the new advanced technology. Therefore, Indonesia is considered as the perfect country for Parkpine Capital.

In terms of criteria, he added, there's no specific sectors or product for startups. Companies are only required to make income and willing to expand into the global market.

Funding for SEA market, including Indonesia, is for the Series A round. It's different its US market investments that are mostly for seed funding.

"We're open for startup in any segment from Indonesia, as long as they're already make money and willing to expand into the global market, such as Mexico and others."

Previously, the company has eyeing SEA market, including Indonesia, through Global Venture Summit (GVS) held since last year. The event is first held in Bali, then this year in Jakarta.

GVS is one of Parkpine Capital portfolios specified to learn a country's ecosystem and finding partners and potential startups to invest. In addition, GVS is also held in Mexico, LA, and Dubai.

"The plan is, next year we'll come back to Bali for GVS in March before the election. It'll be on the bigger scale and be targeting a lot more visitors," he concluded.

– Original article is in Indonesian, translated by Kristin Siagian