Hasil riset tentang pendanaan startup di Indonesia oleh Google dan A.T. Kearney

2. 1. Highlight key global and regional (Asia)
trends in VC investments
2. Review the VC investor and start-up
landscape and growth in Indonesia
3. Showcase the VC investor confidence
and outlook for Indonesia
4. Provide recommendations for further
bolstering the start-up ecosystem in
Indonesia
Objectives

3. Google and A.T. Kearney’s joint study on Indonesia’s venture capital
(VC) outlook
Methodology
More than
25 VC
interviews
Data inputs
from VCs
A.T. Kearney
research
Third-party
research
Google
research

4. The US remains the global “start-up” hub with more than 50% of the
deals and investment value
Note: Deal value represents only reported deal value.
Sources: Crunchbase; A.T. Kearney analysis
Global deals trend 2012-2016
Investment value ($bn) Number of deals
$524 bn63,924
2,010 $5 bn
$7 bn1,306
$225 bn12,733
$104 bn21,688
$7 bn673

5. Note: Numbers may not resolve due to rounding.
Sources: Crunchbase; A.T. Kearney analysis
But, Asia is catching up quickly
Global investment value
Others
1%
Asia
13%
North America
75%
Europe
11%
Asia
33%
Europe
15%
North
America
49%
Others
3%
$73 bn
4x
$274 bn
2012 2016

6. Note: SEA is Southeast Asia. Numbers may not resolve due to rounding.
Sources: Crunchbase; A.T. Kearney analysis
Within Asia, investment values have soared on the back of China and
Southeast Asia
Asia investment value
Others
31%
China
55%
SEA
3% India
11%
China
64%
India
9%
SEA
8%Others
19%
$10 bn
9x
$90 bn
2012 2016

7. Note: Numbers may not resolve due to rounding.
Sources: Crunchbase; A.T. Kearney analysis
Within Southeast Asia, Singapore remains the main hub but other
countries are quickly catching up, with Indonesia leading the way
Southeast Asia investment value
Singapore
83%
Others
2%
Indonesia
14%
Others
40%
Singapore
41%
Indonesia
19%
$0.3 bn
$6.8 bn
20162012
9x23x

8. Sources: Crunchbase; A.T. Kearney analysis
While still nascent, investments in Indonesia are soaring, reaching
~$3 bn in 2017 (year-to-date)
Indonesia investment value
2012 2016 2017 (Jan-Aug)
$3.0 bn
$44 mn
31x $1.4 bn
2x

9. Note: Numbers may not resolve due to rounding.
Sources: Crunchbase; A.T. Kearney analysis
Most of the investments are still in the seed or early stages; however,
late-stage investments are generating most of the value
Indonesia investment (Jan-Aug 2017)
Series C or later
15%
Series B
8%
Series A
30%
Seed
43%
Debt/PE
4%
Series C or later
43%
Series A
15%
Debt/PE
40%
Series B
1%
Seed
0%
$3.0 bn53
# of deals Investment value

10. E-commerce and transport categories heavily dominate investments
Note: Numbers may not resolve due to rounding.
Sources: Bloomberg, TechCrunch, Techniasia.com, Crunchbase; A.T. Kearney analysis
100%
38%
58%
Grand total
Others
Payment
2%
1%
1%
Finance
Classified/
directory
Transport
1%
E-commerce
% total investment value (2012 – Aug 2017)
~$1.8 bn
~$1.4 bn
~$500 mn
Total funds raised (to date)
Top categories in Indonesia

11. Note: The total investment cannot be attributed to Chinese investors, as there were also non-Chinese investors that participated in the funding rounds involving Chinese investors
Sources: Crunchbase; A.T. Kearney analysis
Indonesia investment value ($bn)
~$1.2 bn
~$1.1 bn
6%
1.4
2%
98% Chinese
investors’
involvement
Others
2017
(Jan-Aug)
3.0
94%
2016
~$500 mn
In 2017, Chinese investors became heavily involved in Indonesia’s
start-up environment, accounting for ~95% of its investment value

12. Note: Numbers may not resolve due to rounding.
Source: Google - A.T. Kearney Indonesia VC Outlook Survey (2017)
To capture investor outlook and priorities, we interviewed more than
25 local and foreign investors
Respondents
By category By fund size By role
Foreign
Local
54%
46%
Foreign
42%
Local
58%
29%
$100-500 mn
$50-100 mn
>$500 mn
13%
US$50 mn
38%
21%
Investment officer/manager
21%
42%
Founder/CEO
38%
Partner/director

13. Investors are generally bullish on the outlook of the Indonesian
market
Note: Numbers may not resolve due to rounding.
Source: Google - A.T. Kearney Indonesia VC Outlook Survey (2017)
“What is your investment outlook for Indonesia?” (% of responses)
Local
investors
Foreign
investors
21% 21% 57%
20% 80%
Decrease investment
(-10% or more)
No change
(+/-9%)
Increase investment
(+10% or more)

14. Investors have a positive outlook even when compared with other
Asian markets
Note: Numbers may not resolve due to rounding.
Source: Google - A.T. Kearney Indonesia VC Outlook Survey (2017)
“How does Indonesia’s outlook compare to other Asian markets?” (% of responses)
Local
investors
Foreign
investors
14% 57% 29%
30% 50%20%
Worse Similar Better

15. Sources: BPS, Bappenas, EIU, Nielsen, World Bank, UN, Statista; A.T. Kearney analysis
Indonesia has a strong macroeconomic outlook and favorable
demographics
Indonesia consumer trends 2016 vs. 2021
2021
2016 88mn
150mn
63mn
128mn
85mn
148mn
13mn
23mn
11mn
42mn
3.6K
5.7K
Banked
population
Upper and
middle
class
Smartphone
penetration
Higher-
educated
base
Online
shopper
base
GDP per
capita
(USD)

16. 1 SEA consists of Singapore, Malaysia, Indonesia, Vietnam, Philippines, Thailand, Cambodia, Laos, Myanmar, and Brunei.
Sources: Crunchbase, World Bank, Internet World Stats, Statista; A.T. Kearney analysis
With a current investment of $15 per Internet user, Indonesia has
high potential for growth
VC investments per Internet user ($, 2016)
China
79
US
473
SEA average1
21India
19
Indonesia
15

17. Source: Google - A.T. Kearney Indonesia VC Outlook Survey (2017)
Fintech and healthcare emerge as the top investment categories
Top two categories in which to invest in Indonesia (% of responses)
Fintech Healthcare
67%
25%
Fintech is still in its
infancy, but there is
growing demand to
transact online and to
find alternatives to
traditional banking/
financial services.
There is an increasing
demand for tech-
enabled consumer
services, and
healthcare is the
largest untapped
vertical.

18. Investors highlight four key areas of improvement
Source: Google - A.T. Kearney Indonesia VC Outlook Survey (2017)
Key challenges
Talent
development
Fiscal
incentives
Funding and
exit options
Start-up
facilitation

19. Source: Google - A.T. Kearney Indonesia VC Outlook Survey (2017)
Government can play an important role in boosting the start-up
industry
Select quotesKey asks from investors
• Develop more-qualified founders and (technical) engineers
• Streamline work permit process for foreign talent
• Lower capital gains tax to attract more investment into the tech sector
• Introduce tax shield for returning expats (or repatriation of skilled
Indonesians)
• Create an exchange to buy and sell privately held tech shares
• Create an Indonesian sovereign fund to actively invest in tech sector
• Simplify regulatory processes relevant to start-ups, e.g. company
incorporation, patent certification
• Build “start-up parks” with conducive infrastructure and synergistic
ecosystem
Talent
development
Fiscal
incentives
Funding and
exit options
Start-up
facilitation

20. Source: A.T. Kearney analysis
Government needs to play a strong role, as evidenced in other
markets
• Set up national VC fund
• Set up SME Board/ChiNext/New Third
Board, special board/market for high-tech
and fast-growing enterprises
• Start-Up Chile, a public start-up
accelerator which helps start-ups at all
stages of growth by providing funding and
mentorship
• French Tech Visa, a 4-year visa for start-
up founders/employees/investors
• French Tech Ticket, a 1-year benefits
package
Fiscal
incentives
Funding and
exit options
Start-up
facilitation
1. Work with educational institutions to develop
engineers and entrepreneurs
2. Attract overseas entrepreneurs and talent
3. Provide tax incentives for investments in start-
ups and for start-up operations
4. Set up government funds/government-led VCs
aimed at start-ups
5. Establish multi-tier system in the public market
for high-risk, high-tech start-ups
7. Simplify legal/administration requirements to
start and operate start-ups
8. Develop start-up ecosystem to facilitate start-up
growth, e.g. mentoring
Talent
development
• Establish start-up Intellectual Property
Protection (SIPP)
• Various tax exemptions for investments
by VC and incubator funds in start-ups
1
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Recommendations

21. Authors
Alessandro Gazzini, partner
A.T. Kearney
alessandro.gazzini@atkearney.com
Shekhar Chauhan, principal
A.T. Kearney
shekhar.chauhan@atkearney.com
Emmanuel J. Kuesar, consultant,
A.T. Kearney
emmanuel.kuesar@atkearney.com
Henky Prihatna,
country industry head
Google
henky@google.com
Mifza Muzayan
sales operations & strategy lead
Google
mifza@google.com
Astri Suhaimi,
senior industry analyst
Google
astrisuhaimi@google.com

22. Glossary
Term Definition
Amvesindo Asosiasi Modal Ventura Untuk Start-up Indonesia
Banked population Population that has an account at a financial/banking institution
Debt/PE
Deals that are driven by non-VC sources such as private equity, debt financing, IPO. VCs may
be involved in the deals, but are not the lead investors
Foreign investors Investors that are based, and/or have majority of investments, outside of Indonesia
Higher-educated base Population that has at least a university degree
Local investors Investors that are based, and/or have majority of investments, in Indonesia
Smartphone penetration Smartphone-using population
SME Small and medium-size enterprise
Upper and middle class
Socioeconomic group based on the number of households earning more than $10,000 per
annum
VC Venture capital