Collaboration is a Startup Survival Strategy during the Pandemic
Skystar Capital analyst, Gabriella Thohir, said that collaboration between startups and external parties needs to be optimized to expand networks, publications, and facilitate access to funding.
Start-ups or startups need to take advantage of the services provided by venture capital companies to maintain their business existence in the midst of the Covid-19 pandemic. Collaboration is valued as the key for startups to survive amid the pressures of the pandemic.
According to him, venture capitalists can be a catalyst, not only for fundraising, but also as mentors who can provide expertise, advice, and strategic partners.
“Often, the information or expert insights possessed by the venture capital investment team can help entrepreneurs get a wider market picture and accelerate their business,” Gabriella said, in a written statement, Monday (23/8/2021).
Gabriella added, in terms of funding, there will be venture capitalists who are suitable for startups at every stage.
The rest, not a few venture capitalists who focus on startups that are still in the early stages such as Skystar Capital, which specifically looks at startups in the Seed to Series A funding stage.
“We are dedicated to supporting with funding and other added value, startup companies that have been running for at least 1-2 years with products or services that have received product-market fit,” he added.
However, venture capital companies in general also make a selection of startups that will receive an injection of funds. There are at least three criteria to consider, namely team profile, market size, and business model.
Have a Clear Vision
According to him, a startup’s team profile must complement each other in terms of skills, competencies, and experience.
An excellent startup will be led by a founder who has a clear vision of the startup’s resilience and consists of a team that can carry out the tasks that need to be faced in the development process.
In terms of market size, Gabriella explained the importance of startups operating in a fairly large total market. This is because how big the opportunity for the startup to enter the market, considering other market competitors, depends on the size of the market.
As for the business model, Gabriella emphasized that the business model must be in accordance with the chosen target market because this is the main source of income for the startup.
Venture capitalists will look for startups with business models that can generate measurable and sustainable income.
“Along with the business model, the traction of a startup becomes a measure of success and also validation that the product or service is in demand by the target audience,” said Gabriella.
Trends in IPOs, Mergers and Startup Acquisitions Predicted to Continue until 2022
Mandiri Capital Indonesia CEO Eddi Danusaputro predicts that many startups will run exit strategies next year.
An exit strategy is a planned approach to ending investment in a way that focuses on maximizing profits and/or minimizing losses, such as IPOs, mergers, and acquisitions.
“Many startups feel that IPO is an attractive option. This option can provide liquidity to investors or founders,” said Eddi, Monday (16/8).
Co-Founder and Managing Partner at Ideosource and Gayo Capital Edward Ismawan Chamdani agreed that the IPO trend will continue next year. “Unicorn will go public. This is a positive trend,” said Edward.
In addition to IPOs, Edward estimates that mergers and acquisitions will become a trend next year. “It will still be done by startups,” he said.
After Bukalapak, there are at least five startups planning an IPO, namely Kredivo, GoTo, Traveloka, Tiket.com, and Tanihub.
Financial technology (fintech) operator Kredivo is considering IPOs on two exchanges, namely the United States (US) and the Indonesia Stock Exchange (IDX).
In a report titled EY Global Capital Confidence Barometer, 98% of companies review their strategy and portfolio comprehensively during the coronavirus pandemic.
They will focus on investment. In addition, 37% of companies plan to actively take corporate actions such as mergers and acquisitions during the Covid-19 pandemic.