The Momentum of Green Business Startup
impact investment starts to gain popularity among mainstream investors
Blue skies, fresher air, cooking back to the kitchen, exercising are just some of the signs that many people have experienced since the pandemic. Even though the situation is getting flexible as there have been relaxation in many sectors, a figure pops out that there is an awareness to start living a healthy life.
The opportunity arises for environmental enterprises to be recognized. Although there are not many startups practicing green or environmental, social and governance (ESG) approach, Managing Director of Angel Investor Network Indonesia (ANGIN), David Soukhasing said, there is currently a positive trend of having impactful businesses in the ecosystem. Impact investment has also emerged, which has been discussed in the DSInnovate report on Indonesian agritech.
Most of them are there to support entrepreneurship, providing more specific support for certain groups of social entrepreneurs, for example an energy focus accelerator program, an accelerator program waste management focus, or entrepreneurial support that focuses on a specific geographic area.
For Soukhasing, this factor was able to measure Indonesia's readiness for impact investment. Indonesia needs a comprehensive ecosystem to be ready to welcome impact investors. Not only capital, basically a strong pipeline from companies/startups is necessary.
“A measure of maturity is the overall value of diversity in capital, diversity of investors, different stages, different types of money, and all supporting functions. In terms of supporting functions, such as incubators, accelerators, co-working spaces, Indonesia is actually quite developed. There are quite a lot of pipeline networks and investors here,” Soukhasing explained to DailySocial.
He continued, “However, we need more action, capital diversity is required to really talk about a mature ecosystem. Another aspect of maturity is the policy, how regulations are developed to have an impact on investment and entrepreneurship, and this is still lacking in Indonesia."
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