JAKARTA (TheInsiderStories) – Indonesian venture capital (VC) firm, Alpha JWC Ventures, revealed that there are at least three startup sectors that could be the spotlight by the investors in the 2021 period. The sectors are e-commerce, edutech, and financial technology (FinTech) service.
“The digital economy is on the rise again, so this is precisely the time for investment,” said Jefrey Joe, co-Founder and general partner at JWC Ventures in a discussion, last week.
The funder has invested in around 30 startups, including Friends Money, Kopi Kenangan, Tanihub, Modalku, and WeWork. The company was founded by Chandra Tjan, Jefrey Joe and Will Ongkowidjaja in early 2015. Initially, Alpha JWC started investing with a capital of $ 50 million. Now, they also manage other funding of $ 100 million.
Last year, the VC gave an injection of funds of US$5 million to Goola, a restaurant manager founded by President Joko Widodo’ son, Gibran Rakabuming Raka and Kevin Susanto on August 17, 2018. Its main products are modern versions of popular traditional drinks.
According to Chandra Tjan, co-Founder and general partner of Alpha JWC, that FinTech is still tempting because it is one of the next big things in Indonesia. He gave an example of one of the one of investments in their portfolio, Ajaib, which has the potential to change the investment landscape in Indonesia because it accommodates ‘dime investment’ without initial funds and without face to face.
“So in 2021 we will still be very aggressive for investors, we will still be very active. FinTech is one of them. You can see this year alone, in the midst of a pandemic, we are still investing in 10 companies,” he asserted.
Meanwhile, Eko Kurniadi, partner and investment of Alpha JWC, stated several conditions for a startup to be attracted by investors. Among other things, being able to reach a broad market, breaking conventional styles of financial services, and having the flexibility to continue to expand access.
Previously, the Financial Services Authority (FSA) estimated that there were six issues in the financial technology sector in this year. Two of them are related to increasing capital and collaboration with banks.
Second is additional capital, caused FSA is underway to regulates the core capital of P2P lending and FinTech firm. The authority plans to increase the core capital in these sectors from Rp2.5 billion to Rp15 billion. Third is that the number of FinTech lending operators has increased even though the regulations are tightened.
Fourth, the ecosystem because the market potential is still large. Fifth, the collaboration between co-lending and referral methods. And, sixth, the increase in FinTech lending collaboration with banks.
Recently, the Indonesian Joint Funding FinTech Association is targeting a loan disbursement of Rp86 trillion ($6.14 billion) in 2021. The amount is higher than this year’ target of Rp65 trillion, which is down from the initial plan of Rp86 trillion.
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