Startup Investment Trends and Prediction of Fintech Leadership in 2017

Some notes on the investment climate in 2016 show some interesting things. Startups in Indonesia have now entered the stage to be able to make a significant impact on society, some of which have even caught the attention of global investors. Egg "unicornEven though the first one has been solved, the additional $500 million investment brings Go-Jek's valuation above $1,3 billion.

Meanwhile, when it comes to investment in general, the business sector E-commerce still dominates. Starting from the news of the acquisition of Lazada by Alibaba which is said to be used as an entry strategy E-commerce the world's most highlighted in recent times. This was followed by a round of funding obtained by MatahariMall, Jualo and Tokopedia. However, what has attracted so much attention, the sector fintech in 2016 also took a large portion, even almost the same as E-commerce. While service on-demand which previously (2015) was widely discussed actually had a not so large portion.

From startup annual report released by DailySocial, at least if there are a total of 104 investment activities in Indonesia's startup landscape in 2016, both carried out by local investors and foreign investors. And the investment itself continued to increase quite a bit between the first and second quarters, after that according to quite a bit, until the end of 2016.

The pace of investment in 2017 and leadership fintech in the investment climate

Compared to the previous year, growth fintech in the 2016 period showed significant results. At least 78 percent, or equivalent to the total business in the financial technology sector which reached 140 units. Currently, the dominance of players is in the sub-sector , generally their focus is capitalizing on the trend of digital payments driven by the popularity of the service E-commerce and cashless-society which is being discussed a lot.

East Ventures is listed as an investor who is so quick to respond hyping startup fintech. According to report on the state of fintech startups from DailySocial, at least Rp 486,3 billion was used for investment in dintech startups in 2016. Although regulations are still being discussed, because fintech tends to be a risky business if it is not regulated properly, the confidence of players and investors shows that this sector will shine. for the next few years, including the forecast for a climax in 2017.

The survey forecast released by DailySocial said the same thing, fintech looks to be very dominant in 2017. While the E-commerce Instead, it began to decline and began to be overtaken by SaaS (Software as a Services) services in various fields. In 2016, various SaaS service models were introduced, one of which was to embed artificial intelligence and various smart technologies in it, such as kata.ai pivot result from YessBoss, Prism OneBit and Coral combined results, and some other services.

Estimated investment needs in 2017

AMVESINDO (Association of Venture Capital and Startup Indonesia) analysis says that at least funds of IDR 20 trillion needed to flow across various digital startup sectors this year.

AMVESINDO Chairman Jeffri Sirait said that ideally the amount of trillions of funds could be optimized from public and private sector support, in the sense that the government would play a major role in this round. The government's involvement is claimed to be very important to realize its mission in creating hundreds of digital entrepreneurs that have been declared.

Apart from the explanation above, there is one thing that will also be of concern to the local startup audience, namely the expansion of several outside players who take advantage of the funding obtained from investors taking shelter in Southeast Asia. Several startups have confirmed their intentions, such as Betaout smart service provider for E-commerce, poster adtech service provider for telco business, to Helpter manual labor search service. The presence of these foreign players also tightens the competition, and (perhaps) will bring new trends among the national digital business.

— Download the full version of the DailySocial report here:

• Condition of Indonesian Technology Startup Industry in 2016

• Condition of Indonesia's Fintech Industry in 2016