Indonesia is one of Southeast Asias most promising startup market. Today, its ecosystem gained a brand-new investor with the launching of Intudo Ventures debut fund, which has more than $10 million to invest into about 12 to 16 early-stage startups, as well as seam enterprises with overseas corporations that want to break into the Indonesian market.
Intudo was founded by Eddy Chan and Patrick Yip( portrait above ), who are working with founding advisor Timothy Chen. Collectively, the three have invested in a notable roster of companies including PayPal, SpaceX, Palantir, Netscreen, and Fortinet. Intudo( a combination of the Bahasa Indonesian terms for integrity, seriousnes, and serendipity) will look for companies in e-commerce, investment, healthcare, education, and media.
While Indonesias startup industry and venture capital ecosystem are still young, Chan told TechCrunch that Intudos team ensure strikingly similar trends to what we complied with in China in the early 2000 s.
Indonesia is the worlds fourth-largest country by population, with about 260 million people, and it is also one of the fastest-growing Internet markets by piercing, with Internet customers( most mobile-first) expected to jump-start from a current 92 million to 215 million in 2020.
Furthermore, Indonesias population is relatively young and increasingly affluent, and this makes buyer startups a lot of opportunities.
For example, Indonesian-based marketplace Tokopedia has raised about $248 million from investors including SoftBank, while Alibaba ran$ 1 billion into Lazada last year to gain a stronger foothold in Southeast Asia e-commerce. A few other examples of tech companies and investors paying close attention to Southeast Asiaand Indonesia in particularinclude Tencent( which recently produced a $1.2 billion round in on-demand transportation startup Go-Jek ), Amazon, and JD.com.
Another parallel between Indonesia and Chinas startup industries is the high-profile of founders who have worked or learnt abroad. Called sea turtles in China, Chan refers to their Southeast Asian counterparts as S.E.A. Turtles and he says they will have an important force on Indonesias tech sector by bringing knowledge and networks acquired while overseas.
Some S.E.A. Turtles returned to Indonesia specifically to launch startups, while others were recruited by the neighbourhood roles of tech commanders like Google, Facebook, Amazon, Alibaba, or Tencent before leaving to observe their own companies.
Either way, Intudos goal is to help promising returnees nail down the right time to have a major impact on Indonesias ecosystem. In China, Chan tells, sea turtles had significant influence in the 2000 s, but as the tech sector ripened, their advantages became less unique.
Nowadays, with the clear established in better rules, flair, and infrastructure in place in China, sea turtle talent still fits a niche, but is no longer as much of a game changing part, supposes Chan.
We experience the Indonesian startup industry/ venture capital ecosystem is still emerging, shaping it ripe for S.E.A. Turtles to return to help build out better practices and infrastructure, which will allow them to capitalize the growth of the venture capital ecosystem. If they do not return in the next few years, the window may have closed and they may be left on the outside searching in.
Intudo will focus on conducting seed and Series A rounds, with initial investments ranging from $200,000 to $1.25 million, and all amounts vested from the fund into a startup ranging from about$ 1 million to $2.5 million.( Chan was of the view that while Silicon Valley-based startups typically grow about$ 1 million to$ 5 million for seed funding, and$ 5 million and $15 million for Series A rounds, in Indonesia that figure is typically divided by five because of differences in cost structure. In other words, Indonesia-based startups usually raised about $200,000 to$ 1 million for seed rounds, and$ 1 million to$ 3 million in Series A financing, though recently he has insured funding quantities and valuations for some startups increase dramatically by their Series B and Series C rounds, so that they are comparable to similar corporations in Silicon Valley ).
For joint ventures, Intudo will look at corporations that have already elevated their Series B or C and want to expand into Indonesia.
Chan mentions Intudo is very bullish on “consumers interests” sector and the opportunity to build some world-class direct-to-consumer labels, as well as fiscal tech because charge card penetration in Indonesia is still very low. He adds that inefficiencies in the countrys healthcare structure also generates the chance of the health care sector if the right distribution collaborators are found.
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