Closing The Series B Onwards Funding Gap in Indonesia
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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.