Edy Sulistyo: "Solving Fundamental Issues in the Entertainment Industry is not an Instant Matter"

This article is part of DailySocial Mastermind Series featuring innovators and leaders in the Indonesian technology industry to share stories and perspectives.

Recently appointed as CEO Gojek Entertainment, Edy Sulistyo's journey as a businessman has not always been smooth. He built several businesses then reaped exit before opening a new chapter with startup decacorn Indonesia.

Edy started his business career when he was still in high school. He became known when he founded an event management service called eEvent.

After eEvent was acquired by a local American company, he returned to Indonesia to build Loket.com. He decided to focus on the Indonesian entertainment industry. The business went smoothly until the end Gojek come with the same vision.

DailySocial discuss further the ins and outs of Edy Sulistyo's business life in the Q&A session. Here's a fragment of the story:

How was your first experience as a businessman?

I started developing a site (back then there was no startup terminology) called Online Dictionary. This is driven by the need for a complete dictionary. I had to study for a test and had no choice but to create an online version of a print dictionary. Apparently, this technology is useful for many people. What I do is crowdsourcing vocabulary from the dictionary, when there are words that are not yet listed, anyone can add them to the database. This site will continue to develop and get smarter. At that time, I just realized that I was creating the technology that is currently called machine learning As time goes by, online dictionaries become increasingly developed and become the main choice. This site ran for 8 years from 1999 to 2007.

What happened next? Did you immediately think about starting an eEvent?

Not yet, I developed some other sites like Files upload which works almost like dropbox nowadays. I made it because I often have difficulty sending large data. In running this site, almost every day I struggle with emails from security institutions because there are so many whoupload illegal content, not to mention cease and desist letter which pile up. This is very annoying, emails come in a row, where if they are not answered, they will come in more frequently and there is a risk of ending the business. This lasted for 6 to 8 months with 300K users before I started a new project called circlemail.com. Fundamentally, this site was created to overcome the problem of limited storage space. Circlemail.com has a concept Unlimited storage use the references provided with drive and photo gallery.

Over the years building and running businesses, what have you learned?

Mostly technical things, but what is no less important is the hardship of life as a person founder. I have to run a service end-to-end while completing studies. Those were the hardest times to focus. From the side Files uploaded, I learned how to cope gray area. A complex matter includes copyright infringement. Even cloud computing services like Dropbox experience the same issues, but today's technology is increasingly developing. At that time, we just used existing technology.

Let's jump straight into the discussion about eEvent, how did you start developing this service?

Simple, co-founder I'm managing one of the biggest festivals in Asia. He asked for help, and we were happy to contribute. Apparently, they still use conventional methods to manage event with an audience of no less than 350.000 people at the end of the week. Then, we took the initiative to develop technology to make the process easier, that's when eEvent was born. We co-organized several events around Columbus as business validation before starting fundraising.

eEvent is your first project involving VC funding. Why does it need a lot of funds? Tell me about your first experience in raising funds.

That said, eEvent is my first startup that isn't single man shows. I had to hire people, which meant having more responsibility. The consideration is that the B2B2C business model requires a lot of human resources to develop. That's when I think the time is right for fundraising. Our first funding was a stroke of luck. A angel investors, a world-renowned plastic surgeon from Indonesia. However, having irrelevant investors can actually backfire. We learned a lot, that to be able to grow you also have to be strategic in choosing investors. Not long after that, we held a seed round of institutions. This round is more strategic because the investor is also holding a kind of incubator program. Coincidentally, we also have a strategic partnership with a local investor called Ideasource.

As a Computer Science student with no business finance background, how do you survive?

This is a process as an individual. As a computer science student, I am inclined introvert. I don't like talking and prefer to sit in front of a computer screen. In my opinion, these things are not significant, but when building a business, everything becomes different. What I find interesting, may not necessarily be pleasing to other people's eyes. I thought about simplifying the process but not everyone cares. The biggest lesson is, we made a lot of mistakes in program design because we thought we knew what consumers wanted.

What made you think about introducing eEvents in Indonesia?

Around 2009 was the heyday of local startups. In fact, we never intended to expand to Indonesia. However, because of its size exposure of local startups, Indonesia is the country with the second largest number of users after the US. Then, we started going back and forth to plan expansion. Unfortunately, different markets have different cultures too. The work system, mindset, all processes that we set up according to the US market cannot be implemented in the Indonesian market. We tried all kinds of modifications, but the market wasn't ready. Therefore we decided to return and focus on the US market.

What happens before the acquisition process? Why did you decide to sell this business?

At that time, we were growing and becoming one of the leading players in the area midwest, especially Ohio. However, this B2B2C segment is very tricky in terms of monetization and height burn rate. Although the profit, compared to the amount of money burned, is still far from positive. We got to hold a fundraiser in Silicon Valley, Los Angeles, meet some famous mentors. At that time, the American market was being dominated by Eventbrite, and there was a time when we were very close to a possible acquisition by Eventbrite. Unexpectedly, a local company called Envision Point came up with a much more attractive offer. That's when we were exit fully.

As a Founder, there must be many considerations when selling a business. What was your vision at that time?

We always have a mission to do something for Indonesia. All founder in the US it is Indonesian with local employees. Even though we have been able to put Indonesia on the world map, it still feels like something is missing. The ups and downs of competing in the US market for what? Money may be one of them, but our dream is to make something more useful for Indonesia. Many things that are much bigger in Indonesia can be overcome with technology. It would be a shame if we just watched without acting. If we can create a successful business in America, it would be better for us to do it in Indonesia. The vision is to accelerate sales. Stage event Success becomes difficult due to lack of publicity and ongoing marketing processes old school. Looking ahead, there are bigger issues than that. In terms of security, ticket corruption, and other fundamental issues. Rather than just focusing on selling tickets, we feel challenged to create disruption in the entire entertainment industry.

Why choose the entertainment industry / events?

I never dreamed of being king event. The only thing we care about is how to resolve the fundamental issues within event itself. Then, we decided to develop the service end-to-end in this industry, it involves TMS (Ticket Management Service), a security system, to ensure there are no loopholes for fraud. We realize that the solution is not to speed up ticket sales but to improve the quality of the event itself. It's what makes a business survive and develops an entire industry.

Of course there is a lot of experience in running a business, have you ever made a mistake?

Don't assume and prioritize validation. As someone with an engineering background, I feel like I need to communicate more. Realizing that what we thought was wrong is eureka moment for me. When I made a counter, I could have copied it from eEvent. However, I realized that wouldn't work considering the different culture here. Indonesian people prefer to be served rather than do self-service. Rather than forcing our thinking, it is better to carry out all the processes so that they can accept that they are done.

How was your first day at Loket?

We started with three people founder and several employees. In fact, we carry out the marketing process before the product is finished. After conducting various analyses, we found that people are willing to spend more on this. Not something that strengthens, but as a damper.

It is a must for someone founder to continue raising funds, is there anything you can share from your second experience?

Actually, the second time was an internal fundraising. We have a B2B business model, basically project dependent and very simple. A money burning strategy is no better than focusing on building a growing business. Ultimately, what we want is to build a real business. Our dream is to solve problems and create disruption in the industry in the most fundamental way. This requires us to have sustainable business in order to resolve fundamental issues in Indonesia.

What has been your worst nightmare while running Loket?

At first, we were very frustrated every time we ran event. Inaccessible sites, miscommunication everywhere, double bookings, and many more problems that generate endless complaints. Often occurs at large events, causing earache and headaches. Apart from that, from a security perspective it was not without fault, lost items, limited signal disrupted everything, it was the saddest day. All experiences make us better, we learn a lot from the business and technology side. From a social perspective, we learn to overcome problems in the most humane way.

What do you think about competitors?

For me, competitors are never a problem. As long as our focus is on providing the best experience for consumers, everything will be fine.

Discussing more personal matters, how do you manage your time working and raising a family?

Very difficult. Luckily, I work in the technology industry which allows anyone to work anywhere. The good thing about doing work that you love and admire is that work and life become two of the same thing. Moreover, it is very important to have a companion who is very supportive. Anything that happens whether financially or in time management, as long as you do it together, can be faced.

Do you have support system other than family?

Church friends. Become founder startups are very tiring. There are often moments where I want to scream and just give up. Sometimes, the hardest burden to face is not a personal problem but trying to understand other people's problems. Luckily, I have many people praying for me.

What about the story behind the acquisition Gojek?

At that time, Loket was ready to target the B2C segment, we tried to do it ourselves and it was very difficult because we had no experience. Meanwhile, Gojek has a B2C platform called Gotix which is also reseller we. At that time, both companies were in the safe zone, after completing a funding round from East Ventures. After having a serious conversation with the Founder and CEO Gojek Indonesia Nadiem Makarim, we found the same vision. To speed up the process, I agreed to sell and join the Entertainment unit Gojek Indonesia.

How does the acquisition process proceed until it is created? Gojek Entertainment? Are you satisfied with the results?

Everything is still in progress, but personally, I am happy. In the entertainment industry disruption experiment, we found that many things were missing, not only in terms of events but also in the film industry. They have received support from the government. Still this encourages us to do something. Until finally they decided to include the film industry under the entertainment unit umbrella. It's all a learning process, no one understands best, this industry is very complicated. Our work isn't finished here, but we can see where it's headed. I also received a lot of enthusiasm from the public and industry players.

What about Go-Play and how it relates to your vision?

In terms of the film industry, we position Go-Play as a platform where we provide channels for content creators. As a platform, we hope to improve the quality of the industry. Most people think Indonesian films are not worthy. Meanwhile, some are quite good and can compete on the international stage. It would be a shame if it was not exposed, we are trying to facilitate and support the Indonesian film industry.

At your current level, is there anything to plan? Gojek what can be shared here?

Gojek always focused on making an impact from a technological perspective. Entering the entertainment industry, this mission decreased. While Go-Play is still in beta, we want to ensure the right experience for consumers. This is a validation process.

What to be goal you in the next few years?

I really wanted to be part of something that had a bigger impact than just money. We are now in a time where there is something greater to achieve. I personally feel this is a way to satisfy myself. Leaving a legacy, something that makes the people around me proud and happy.

- This article was written in English, translated by Kristin Siagian