3 Keys for F&B Startups to Receive Funding from Angel Investors
Culinary startups wrapped in technology or food technology (foodtech) startups are reminded to strengthen three keys to easily get funding from financial institutions and angel investors. Economist Indef Nailahul Huda said that the three main keys are user feedback in ratings on food pick-up service applications.
This is because in this era, food pick-ups run by Go-Food and Grab-Food and other courier services are the most competitive assessors. Investors will be interested and disburse funds if the product has a magnitude in the community.
“They [angel investors as well as investors] can see from the rating of the F&B provider on the food pick-up service. In addition, they will also see whether F&B is a food that is liked by the public. And in the future, can we survive the pandemic and the competition is getting tighter,” said Huda, Sunday (12/20/2020).
F&B Trends Make Culinary Startups Attract Investors
He explained that the food business itself is increasingly favored by investors because of the rampant F&B trends in recent years. This is reflected in the increasing trend in F&B consumption.
“From statistical data alone, it is stated that the estimated growth of the F&B sector in Indonesia will reach 13 percent in 2020-2025. Moreover, the trend of “contemporary” food such as milk coffee, Korean food, or Western food is on the rise,” he said.
Based on statistical data as of November 2020, revenue in the F&B segment is projected to reach US$ 1,988 million in 2020 and US$ 1,087 million for revenue on the online food delivery side.
In addition, the report also estimates an increase in the number of users is estimated to reach 74.8 million in 2025. Then, for US$ 1,087 million users, it will increase to 10.2 percent until 2023. Huda also added that currently, funding does not only come from the industry. financial, but also comes from angel investors.
“So no doubt they are hunting for angel investors to invest in the F&B sector. Especially at this time F&B services are being helped by online transportation services, so there is still hope for them to survive amid the pandemic,” he said.
Foodtech Startups’ Growth Space is Getting Bigger in 2021
Accelerated funding for culinary-based startups (foodtech) is expected to continue to grow in 2021. Chairperson of the Indonesian Technology Startup Association (Atsindo) Handito Joewono said this was due to the presence of the Investment Management Institution (LPI) or Sovereign Wealth Fund in the coming year.
“Right now, apart from funding from previous investors, starting in early 2021, the incoming investment is also through the investment development agency [LPI] so that there are two-step investments,” he said, Sunday (20/12/2020).
Furthermore, he explained that through this institution, countries, such as South Korea, Japan, China, the United States, and Qatar are increasingly interested in injecting funds into Indonesian startups, including food tech. He also appealed to foodtech players to start responding to the good news by completing homework that still haunts this business model in the realm of food and beverage.
“Food tech must be increasingly speeding up the use of technology. On the food industry side, it is necessary to produce food that is more innovative and creative, but in services, speed and efficiency are the keys. As well as collaboration with e-commerce and ride-hailing,” he said.
Just a note, to date, there are six startup companies that have received funding in 2020, namely Hangry US$ 3 million, Kopi Kenangan US$ 109 million, YummyCorp US$ 12 million, Mangkokku, and Haus! US$ 2 million each, and last is Greenly.
Handito is optimistic that the number of players who receive the injection of funds will also increase. Apart from the increasingly diverse funding sources, of course, because many new players will continue to emerge.