Indonesia’s startups continue to attract investors
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After dominating the investment market for the past few years, startups continue to attract investors this year.
Investors see a startup as a company which fulfills three categories required in businesses, said Morgan Stanley president director Oki Ramadhana.
“There are three things, which are usually used as benchmarks in potential businesses that will give profit to investors. Those are scalable, profitable and tractable records,” he added.
Tokopedia and Gojek are two examples of successful startup businesses in Indonesia, said Northstar co-founder and managing partner Patrick Walujo during a seminar at the University of Indonesia (UI) over the weekend.
“Tokopedia only started with the capital worth 200 million rupiah (US$15,000) from its founder and former boss. But now, the company has gained US$1 billion,” he said.
However, Patrick stressed that it is not only a matter of big money for startup companies but also sustainability.
“It’s not only about being rich, but how to make the company grow over time. Therefore, startup owners need to find an investor partner that will help them to step up to the next level,” he added.
Questions & Answers
Q.What criteria do investors typically use to assess potential startup businesses?
What criteria do investors typically use to assess potential startup businesses?
Investors generally look for three key attributes in potential businesses: scalability, profitability, and demonstrable records of growth. These factors serve as benchmarks for startups that are expected to generate profit for investors.
Q.Which specific Indonesian startups are mentioned as examples of success in the article?
Which specific Indonesian startups are mentioned as examples of success in the article?
Tokopedia and Gojek are highlighted as successful startup businesses within Indonesia. These companies are presented as examples of how new ventures can thrive and attract significant investment over time.
Q.What is considered important for a startup beyond just attracting large investments?
What is considered important for a startup beyond just attracting large investments?
Beyond securing significant capital, the sustainability and long-term growth of the company are crucial. Startup owners are advised to seek investor partners who can assist them in scaling their business to the next level, ensuring enduring success.
Q.How much initial capital did Tokopedia begin with and what is its current valuation?
How much initial capital did Tokopedia begin with and what is its current valuation?
Tokopedia reportedly started with capital worth 200 million rupiah, which equated to US$15,000, from its founder and former boss. The company has since grown significantly, achieving a current valuation of US$1 billion.