The Indonesian Venture and Startup Capital Association reported  that funding to Indonesian startups reached US$1.9 billion until the third quarter of 2020 with 52 transactions - Photo by Secretariat of Amvesindo

JAKARTA (TheInsiderStories) – The Indonesian Venture and Startup Capital Association (Amvesindo) reported that total funding to Indonesian startups reached US$1.9 billion until the third quarter (3Q) of 2020 with 52 transactions. According to the vice chairman, William Gozali, although the value was lower, the window for funding in local startup was still quite large.

“If it can grow by around $2 million in the fourth quarter of 2020, (the amount) is still less than 2019. The decline was caused by the funding cycle. Apart from the pandemic, the same thing happened throughout 2020,” he told in a virtual media gathering on Tuesday (11/03).

In 2019, Gozali continued, the total funding was recorded $2.9 billion, higher than 2018 amounting to $1.4 billion. He continued, there are still plenty of room for venture capital companies to grow with startups in Indonesia.

Although the transaction values decreased, he assured, that the number of transactions continued to increase. In detail, funding in 2017 was 67 transactions. Then, 71 transactions in 2018 and 113 transactions in 2019.

The organization data also showed, until end of September, most of the funding goes for financial technology firm, with total eight transactions. Followed by funding for education technology with six transactions. Moreover, the software as a service sector also with six transactions, the new retail sector five transactions, the logistics sector and e-commerce for 4 transactions, respectively.

“We see  there are optimism in the midst of a pandemic that Indonesian startups are still have a window to ge funding. Its encouraging that this industry is still positive at a macro level. Even if there is a decline, it is more of a delay,” said William.

The organization also noted that the top funding value for the six startups was still quite large, in the range of $20 million to $109 million. In the first place, the restaurant-chain operator, Kopi Kenanga worth of$109 million, Cargo Technology $31 million, and Gudang Ada amounting to $25.4 billion.

Then, peer to peer lending operator, Investree, was recorded to received funding of $23.5 million and Koinworks worth of $20 million. The last one is funding to Shipper of $20 million.

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