A while ago Rama wrote about topics related to the investor, and I quite agree that growth of investors will continue to rise this year in Indonesia.
But one thing is still in my mind is about how they – these investors – approaching the startups in Indonesia. About the approach taken by them upon newly emerging or already existing startups.
This article cannot be widely and completely records how investors approach the startup, but at least could give a brief overview of the experiences I got at an Asian level event that also brings some startup in Jakarta some time ago.
Whether because it is an event or indeed it’s the investor’s approach, but the process of directly approaching startup while offering funding in place I think is not very wise. It would be better if the introductions in an event became the early introduction which will continue to a ‘deeper’ approach’, where they could get to know each other and look for their matches. It could even be in the process of this approach there is no conversation about the investment (fund), just knowing each other and knowing each capacities.
I remember the FOWAB event around August last year. At that time Dondi Hananto, Satya – Koprol, Aria Rajasa – GantiBaju, Selina – Urbanesia, Fares from Scraplr were presented as speakres and Rama – DailySocial were presented as moderators. They told about their experiences related to investment and investors, the one thing that I can remember very well is all about compatibility.
Just like finding a co-founder or partner, finding investors is a separate issue, both personal and suitability of the vision-mission is an important factor in the funding process. Not applicable to all startup indeed, but it might be applicable to most startup. At least that’s what I get from the description in the FOWAB event above as well as conversations with several colleagues (startup) that have been, is and will get funding. I think the approach and found a match also experienced by Rama when deciding to get funding from MerahPutih Inc.
In the event that presented startups that described in earlier writings, I had the opportunity to chat with one of the investors from Singapore. From some questions about startup developments in Indonesia, I could see that he was quite interested to invest in Indonesia, besides the problems associated with the government, we talked about the startup itself. Then I also tried to conduct discussions on how to approach the startup, this investor from Singapore was quite agree with the ways investors could do in approaching startups, slowly but surely.
Indeed, competition to get startup to be funded is quite tight. But slowly here certainly does not mean it slow, slowly in the sense of careful, studied in detail, the process of intense introductions, market potential analysis, study team / talent from the startup itself and of course see the future startup’s mission and vision concerned.
Indeed, investors and startup styles also vary, but I think it is a special case, the basic process of investment can not be done briefly, as an example of one of my friends had almost ‘frustrated’ when several times meeting investors but the progress didn’t go very clear, until some meetings later they found what they wanted.
On the other hand, the startups which are looking for actual investment also vary, depending also from the services or applications that are developed. The existing funding agreement could be quick or slow. But one of the most important thing is startups also need to know better about the investors who will provide investment (can be a fund or networks, relationships, other support or a combination), similarity of both perceptions required for the business to run smoothly and continuously.
The intens and detailed approach and the process of brainstorming can add information from each party, startup – investors, and to know the advantages and disadvantages of both. A startup (oriented as a company) would require a fundamental support of the founder, and if it will get the investment, from the investor too.
Search for or sought by investors can indeed be an option for startup or investor himself, but most importantly in my opinion is the approach and research. The research here can be a complete research or basic research that can be done simultaneously with the introduction and discussion. Know each other the proportion of each party, because a business must find a way to survive and continuously, even if the strategy is to exit. Almost nothing is instant, let alone the need for full support is an essential part of the startup, as a new business. Full support should be provided either by the founders and investors.
What is your opinion?
Translated by Nita Sellya.
