Dec 7, 2018

Closing The Series B Onwards Funding Gap in Indonesia

The WILD DIGITAL Conference is a platform created for internet leaders to come together and share their bold and wild visions for building great disruptive companies. It brings together top internet players, entrepreneurs, founders, chief executives and investors to gain insights into the future of technology and digital creativity with its first-class main stage program.

In early December the Wild Digital Conference in Indonesia held a panel discussion to discuss the state of Series B funding in the Southeast Asia region. The panelist including Nicko Widjaja (MDI Ventures), Stefan Jung (Venturra Capital), Yuan Lee Chung (SIG) and Akshay Garg (Finaccel), who had recently closed a Series B round, with Jeffrey Chi (Vickers Venture Partner) as Moderator.

A central topic of the discussion revolved around the recent “crunch” in series B funding within the region and whether the crunch is still in affect. The panelist agreed that the crunch is now over as there has been a significant influx in capital from global investors, specifically from China and Japan. Nicko Widjaja had also mentioned that local (Indonesian) venture capital firms (who are mainly early seed to series A investors) have also been raising new funds to focus on larger ticket size investments and to top-up on their existing portfolios.

Although there may be abundance of capital flowing in the market, there seems to be a shortage of startups to invest in. It is not to say that there are no good startups worth investing (as a matter of there are), but there is a limited number of quality startups. There is still a considerable number of copycats companies in the market that lacks a solid path to profitability or a proper scale up strategy. As result, the market has seen that majority of series B funding has been pooled to a handful of startups. In 2019, it is expected that number and quality of startups raising there series B round will continue to rise as the region’s tech industry continues to mature.