Heaptalk, Jakarta — Tech winter had a significant impact on the startup business, one of which was the decline in the value of startup funding in Indonesia by 74%, deeper than the decline in Southeast Asia by 56%. However, there is still optimism that startups will still be attractive to investors.
The tech winter phenomenon experienced by startups in many countries around the world has made the business situation in the technology sector experience major challenges, including a decline in investment value. Tech winter is a direct impact of global macroclimate fluctuations, such as a weakening economic environment and other uncertainties in the future. In response to these conditions, investors are becoming more selective in carrying out investment deals.
In the midst of uncertain global macro conditions, Founding Partner of Intudo Ventures Patrick Yip revealed that startups always have the potential to develop and grow in a discussion with the theme ‘It takes more than growth to rise’ at Wealth Wisdom 2023 by PermataBank.
Patrick explained four factors that influence startup growth amidst the impact of tech winter. First, the company must be able to manage its receivables well. Second, they have a healthy cash cycle. “Third, (startups) must carry out product launches immediately to anticipate product failures and be able to carry out evaluations right away to create products that are well received by the public, and the last is the integrity of the founders,” voiced Patrick in Jakarta.
Increasing cost efficiency
On the same occasion, President Director of Trimegah Asset Management Antony Dirga unveiled several strategies that startups and investors could implement in facing a potential global economic crisis, one of which is increasing cost efficiency. Additionally, startups and investors can focus on revenue-generating products and services, seek strategic partners, and expand into international markets.
Further, Antony also conveyed investment tips in facing the global crisis and uncertain situations for investors next year. “The distribution of investment portfolios next year must take into account the dynamics of the situation that is occurring. The best option to predict potential losses is to invest in short-term corporate bond mutual funds and stock investments,” concluded Antony.
