VC Investment Strategy

undercover.co.id – VC Investment Strategy to Startup Amid Recession Predictions , The recession forecast for the superpowers seems to have an effect on the sustainability of the fate of start-ups or startups. The slowing down of macroeconomic conditions has forced several large investors to make decisions. One such example is SoftBank, which said it would cut its investment budget by more than half in May.


Edward Ismawan Chamdani, Treasurer of the All-Indonesian Venture Capital Association (Amvesindo) agrees with this. He said, this is winter for startups. At least they should last 12 to 24 months until this winter is over. However, not all sectors experience the same ‘winter’.


“There is influence. But not related to all sectors. There is a road to profitability . But do they have to profit now? Not. But, again what investors will see is the market size, addressable market , and whether the target market is appropriate or not,” he said


The impact of this recession forecast does not only affect the decisions made by startup investors . Edward said that this also had an impact on the area or business model of a startup .


“There is an area or business model that is currently influential. What was not before, is now influential. Maybe they rely too much on growth stories . So the road to profitability can be more difficult,” he said.

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VC Investment Strategy


Edward explained that for investors there are at least two exit points in the road to profitability in startup development . First , is the IPO or Initial Public Offering , namely the initial public offering of the company’s shares. According to him, the majority of investors encourage startups to go for an IPO.


However, not all business models seem to have a road to profitability up to the IPO. In some businesses, the liquidity of investment returns depends on the second option in the investor’s exit point , namely the buyout or acquisition process. The annexation of a startup by a larger startup is a road to profitability for several business models, as well as an investment choice for investors in the midst of the current recession forecast.

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    “This liquidity can be achieved if there is a strategic investor who acquires them. Well, if the model goes that way, from the start they know that this business will not be profitable . However, they form an adjacent product and service . The goal is that the core services of a SuperApp will acquire them,” he said.

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