SCF Danamart Fintech Startup Targets Influencers and the Creative Sector

Startups crowdfunding fintech securities (SCF) Danamart said it is ready to look at financing an influencer and other creative economic sectors. This sector is considered prospective because it is relatively difficult to obtain access to funding from formal financial institutions, even though the business potential is enormous.

"We will soon have an MoU with GetCraft to start funding an influencer those under them," said Danamart Founder and CEO Patrick Gunadi during a media gathering in Jakarta last week (27/7).

In accordance with the rules in force at the OJK, all financing distribution at SCF must be a legal entity. Meanwhile, the majority an influencer still in the form of an individual business. Therefore, before obtaining funding they will be directed to form a business entity.

This step will be carried out through Danamart's subsidiary, Omah Biznis, which focuses on increasing business literacy through educational programs with educational institutions.

The background to the establishment of Omah Biznis (formerly known as Danamart Academy) is because funding is a basic need for business continuity. However, it can be very difficult to reach without a good understanding of the entrepreneur. They will find it difficult to convince investors of their business potential.

"We're hooked an influencer this is from the start to build an entity, encourage them from the start to have a solid business foundation proper," he added.

Focus on ESG business

The addition of this funding sector is in line with Danamart's focus which focuses on being a SCF that carries the ESG concept (Environmental, Social, Governance). This ESG principle is one of the benchmarks for assessing risk management for SMEs before issuing securities at Danamart. There are even greater incentives provided for businesses that adhere to these ESG principles.

According to Patrick, ESG has great potential even though it still is niche. This optimism arises because recently global companies have begun to take ESG initiatives in their various actions. It is hoped that in the future it can create a snowball effect.

"We concern on this concept because in the last few decades the temperature has increased so the sea is getting hotter, if the ocean is warm it could be a disaster. And we as a tropical country have the most impact. So we don't want to participate in businesses that damage the environment."

Danamart has two options for investors and companies seeking funding (issuers), namely Equity Financing (especially for startups) and Debt Financing (for MSMEs) which are based on the issuance of bonds (bonds).

Not only that, issuers can choose the right securities to obtain capital with the flexibility of developing the company according to the provisions of the selected securities. The process of raising capital and financing is carried out online or online with reduced terms related to guarantees, asset values, and access to registered capital at the Indonesian Central Securities Depository (KSEI).

Danamart only charges issuers with a 6% platform fee with a funding ceiling of up to IDR 10 billion. "We always see from training company, which phase are they in. Also look at the debt from the liquidity ratio, how strong a company is to be able to pay interest in the short term. The way of thinking is the same as the average VC investor."

Meanwhile, investors can choose according to their respective risk profiles. It is stated that the yield offered by Danamart reaches 18% per year with an affordable minimum investment of IDR 100 thousand. It is claimed that Danamart has had 1.000 investors who have joined since it first obtained an operational permit from the OJK in February 2023.

The majority of these investors come from the retail community, only one institutional investor has joined. Investments in Danamart can start from IDR 100 thousand to IDR 300 million. But the average investment given per investor is around IDR 50 million.

"We need retail investors because we need them crowd wisdom, what is the project part make validation. Meanwhile, institutional investors are for liquidity providers. We want our retail investors to be more mass Again, it could be doubled."

As for the number of businesses that have issued securities through Danamart, it has reached four companies. Funded projects, including the provision of housing and workplace eligibility. The entire project issues bonds. There are 10 applications currently being processed by the company. Patrick said that this year it is targeted to be able to issue 50 company securities.