5 Analysis on Why the Trend of Investments to Startups Decreased in the Middle of 2017.

5 Analysis on Why the Trend of Investments to Startups Decreased in the Middle of 2017.

31 July 2017

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In the previous Panel Discussion ‘’Startup Invesment Outlook on First Half of 2017’’ on Thursday, 28th July 2017, hosted by JSC Hive Coworking Space in Kuningan has gave lots of analysis and predictions of startup investments in the year 2017. The speakers were Aldi Adrian Hartanto (Head of Invesments of Mandiri Capital), Kevin Darmawan (Managing partner of Coffee Ventures), Steven Vanada (Vice President of CyberAgent Ventures), Raditya Pranama (Invesment Manager of Venturra Capital), Agung Bezharie (Associate of East Ventures), Abraham Hidayat (Director of Skystar Capital), and Aditya Hadi Pratama as the moderator (Tech Writer of Tech In Asia).

The data we summarized from Tech In Asia showed that in the year 2017, investments to new startups had decreased. In the past few years, the phenomenon of startups investments did reached as a “trend” in the startup world. But why the investment had decreased this year?

We will give you the summary of the panel discussion regarding of why the investments for startup has its down point in the year 2017:

1. The Decrease of Startups

According to Agung Bezharie (Associate of East Ventures), probably the reason why number of investments for early startup’s first semester of 2017 decreased was that because the number of startups which had ‘met up’ with East Ventures decreased about 23%. The similar reason was also mentioned by Steven Vanada (Vice President of CyberAgent Ventures).

2. Too many Competitors

This reason is connected with the decrease of startups, Kevin Darmawan (Managing Partner of Coffee Ventures) added that the decease happened because the market competitors is getting tighter and many new comers will emerge and ask for investments. This have made startup founders trying to find new opportunities because of the tight competitions.

3. Investors be More Careful

Even though Indonesia has many investors, it doesn’t mean that they will easily put in investments to new startups. Aldi Adrian (Head of Invesment Mandiri Capital) added that not only startups that are evolving, but investors also have evolved. They will consider to invest depending on the startup goals for the next 2-3 years ahead. That’s why investors are much pickier in what startup they want to invest.

4. Lack of Innovation

Some barriers to enter several Tech industries isn’t too difficult. Just like the e-commerce industry, almost everyone can make them easily, but to survive is extremely challenging. Because those barriers are easy to overcome, it can make startups lack to make new innovations, which can make investors reconsider investing to them. This lack of innovation may cause by the low quality of talented people in Indonesia, especially engineers.

Even though the government has run several programs to support the grow of startups in Indonesia, but according to Raditya Pranama (Invesment Manager of Venturra Capital) said that the results of those several programs didn’t have massive results to the startup ecosystem in Indonesia.

5. Afraid to take chances in another Industry

Nowadays, new startups are still focused to join industries which has many successful players, just like e-commerce, market place and online transportations. This matter was mentioned by Abraham Hidayat (Director of Skystar Capital) that there are still many industries that need new and unique innovations, such as, Health and Education Tech.

Those are the 5 analysis based on the previous Panel Discussion on the decrease of investment startup trend first semester in 2017 hosted by JSC Hive Coworking Space Kuningan.

Category: coworking space, investors