• Newsletter
  • Contact
  • Press Releases
Thursday, May 15, 2025
Stay Ahead with Heaptalk: Your Go-To Source for Business News
  • Login
  • Register
  • Whats on
  • News
  • Events
  • Technology
  • Industry
  • GovAct
  • Expert Talk
  • Insight
  • Sustainability
No Result
View All Result
Stay Ahead with Heaptalk: Your Go-To Source for Business News
  • Whats on
  • News
  • Events
  • Technology
  • Industry
  • GovAct
  • Expert Talk
  • Insight
  • Sustainability
No Result
View All Result
Stay Ahead with Heaptalk: Your Go-To Source for Business News
No Result
View All Result
Home Insight

Investment trend in Indonesia’s startup plummets 87% this year, What caused it?

Strategic investment trends in the Southeast Asian startup also fell by 69.2% YoY, from US$13 billion to US$4 billion during the first half of this year.

Syifa by Syifa
November 9, 2023
in Insight, News, Whats on
0
investment climate
Share on FacebookShare on Twitter

Heaptalk, Jakarta — The investment trend around technology companies, including startups, is claimed to experience a significant decline in 2023. As Google, Temasek, and Bain & Company noted in its newest e-Conomy SEA report 2023, private funding in Southeast Asia, including Indonesia, reached its lowest level in the last six years, following a global trend showing increasing capital and challenges throughout the funding cycle.

In the archipelago, the report disclosed that Private funding trends fell by 87% YoY, from US$3.3 billion to US$400 million in the first half of 2023 compared to last year. Meanwhile, strategic investment trends in the Southeast Asian startup also fell by 69.2% YoY, from US$13 billion to US$4 billion during the first half of this year.

The Partner and Head of Vector in Southeast Asia, Bain & Company, Aadarsh Baijal, elaborated on multiple factors related to this decrease in this investment trend, including High capital costs, declining startup valuations, startup pathways to profitability, a more extended startup valuation calculations, and a challenging capital market environment, impacting on the complexity of performing exit strategy.

“The challenges faced include a general correction in valuation, after rising continuously during 2021, uncertainty in profitability in several companies, and a less conducive capital market situation, bringing difficulty for investors to exit,” Aadarsh added.

Although investors are more selective in injecting fresh capital into the region startups, this report reveals that Southeast Asian dry powder is still relatively high at US$15.7 billion at the end of 2022, compared to the former at US$12.4 billion in 2021. This matter indicates the fuel needed to drive further growth in the digital economy sector in Southeast Asia.

In resolving this funding winter issue around the startup ecosystem, Google, Temasek, and Bain & Company look forward to the startups increasing their valuation rationally following their business fundamentals, proven by their monetization models and clear strategies to achieve profitability.

Related to the promising sector to be invested in, the e-Conomy SEA 2023 unveiled that digital financial services remain the most profitable sector due to their high monetization potential. Other sectors also experienced increased investment, indicating that investors aim to diversify their portfolios.

The Head of Temasek at Southeast Asia, Fock Wai Hoong, voiced, “Indonesia’s digital economy continues to offer attractive investment opportunities due to its strong fundamentals, such as a growing workforce population, rising consumer incomes, and a dynamic technology startup ecosystem. We remain optimistic about the future of Southeast Asia’s digital economy and will continue to deploy catalytic capital to achieve sustainable and inclusive growth.”

Tags: digital economye-conomy sea 2023startupstartup investment trend

Related Posts

The Palace at Bridestory Market 2025. (Credit: The Palace docs.)

The Palace Jeweler Launches Areumi Collections, Embracing Korean-Inspired Style for Modern Jewelry

May 14, 2025
Dody Hanggodo announced that House Commission V has approved an additional budget allocation for the Public Works Ministry in 2025. Credit: Ministry of Public Works

House Commission V approves additional budget for Public Works Ministry, raising 2025 allocation to $4.4bn

May 14, 2025
Eddy Soeparno said that the plan to shift fuel imports should be balanced by accelerating the transition to cleaner, more sustainable energy sources. Credit: MPR

MPR suggests a price survey before shifting fuel imports from Singapore to US

May 14, 2025
AWS and Humain partners to establish AI Zone in Saudi Arabia.

AWS partners with Humain to build AI Zone in Saudi Arabia

May 14, 2025
Infinix launched Note 50 Series in Indonesia with two variants: Note 50X 5G+ and Note 50S 5G+. Credit: Infinix

Infinix Note 50 Series set to launch in Indonesia

May 14, 2025
Ministry of Trade initiated local product Thursdays movement. Credit: Ministry of Trade

Trade Minister initiates the local product Thursdays movement

May 13, 2025
  • Microsoft

    New tech layoff chapter, Microsoft lays off thousands of its cloud unit ‘Azure’

    1 shares
    Share 0 Tweet 0
  • Nokia rolls out 6600 5G Ultra

    0 shares
    Share 0 Tweet 0
  • Performing a second layoff round, Morgan Stanley to reduce 3,000 workforces in Q2 2023

    1 shares
    Share 0 Tweet 0
  • TikTok Shop to reach a US$15 billion in its GMV transactions

    1 shares
    Share 0 Tweet 0
  • International Women’s Day – Opportunity for Businesses to Support Women in the Workplace

    0 shares
    Share 0 Tweet 0
DCCI Malaysi 2025 World AI Technology Expo UAE 2025the 10th world battery & energy industry expo 2025
Heaptalk business news logo

We Build an Ecosystem by Sharing Business News, Headlines and Expert Talks in Professional Perspective and Positive Point of View. Latest business news media headlines platform today.

Recent Posts

  • Government to convert Cipinang prison land into public housing
  • The Palace Jeweler Launches Areumi Collections, Embracing Korean-Inspired Style for Modern Jewelry
  • House Commission V approves additional budget for Public Works Ministry, raising 2025 allocation to $4.4bn
  • MPR suggests a price survey before shifting fuel imports from Singapore to US
  • AWS partners with Humain to build AI Zone in Saudi Arabia

Follow Us

Facebook
Twitter
LinkedIn Youtube Instagram RSS

Newsletter

  • About Us
  • Editorial
  • Newsletter
  • Contact
  • Privacy Policy
  • Cyber Media Guidelines
  • Disclaimer
  • SOP Perlindungan Wartawan

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Do not sell my personal information.
Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT
No Result
View All Result
  • Home
  • News
  • Technology
  • Industry
  • GovAct
  • Events
  • Whats on
  • Expert Talk
  • Insight
  • Sustainability
  • Newsletter
  • Press Releases
  • Login
  • Sign Up

© 2024 Heaptalk.com