Investors Map Four Startup Sectors Ready to Apply New Normal
The government is preparing to impose a new normal during a corona pandemic. The Venture Capital Association for Indonesian Startups (Amvesindo) assesses that there are four startup sectors that are ready to implement new norms.
The four areas of startup’s business are health technology (health-tech), food delivery such as GoFood from Gojek and GrabFood from Grab, e-commerce, and fintech payments. This is because the services of the four startups were needed during the Covid-19 pandemic.
“During the coronavirus pandemic, people find it easier to shop and pay via smartphones. The products released make them stay sustainable,” Amvesindo Chairman Jefri R Sirait told Katadata.co.id, Wednesday (6/27).
This consideration also refers to two keys for startups to be ready to apply new normal, namely products and innovation. Investors, including venture capital, are eyeing startups who provide products needed by the public during the coronavirus pandemic.
“Many of the startups needed by the community survived,” he said. In addition, startups needed by the government are considered to be able to survive and are ready to apply new normal.
“The biggest spending is now in government spending,” Jefri said. Therefore, startups must be able to support the government’s efforts to overcome the Covid-19 pandemic when it is new to normal.
Innovation Becomes Important in the New Normal Era
The second key is innovation. When the company’s growth plummets, derivatives or other products resulting from innovation are considered to be able to save the company. Jefri gave an example, automotive companies produce medical devices during slumping sales.
“Plastic injection can be made for masks and Personal Protective Equipment (PPE). Or the production of ventilators in collaboration with several institutions,” he said. When new is normal, part of the tourism sector is expected to open.
Some startups in the hospitality and tourism sector must be able to take advantage of this momentum to innovate. “For hospitality, avoid crowds, the products are regulated to keep abreast of health protocols,” Jefri said.
Chairman of the Indonesian E-Commerce Association (idEA) Ignatius Untung agreed that startups in the digital health, logistics, e-commerce, and grocery sectors are in demand by consumers when they are new to normal.
“What will still be relevant and habitual can only maintain its users as it is today,” he said.
Since April, investors have become increasingly selective in investing in startups. Investors no longer dare to risk investing in startups affected by the coronavirus pandemic. “Managed fund managers will be very careful in distributing investments,” he said.
MSMEs and Startups Benefit When New Normal Scenario is Applied
The government is currently preparing a new normal scenario to face the coronavirus pandemic or Covid-19. In response, President Commissioner of the SEA Group, Shopee’s e-commerce platform business, Pandu P Sjahrir said, the new normal situation is a reality that must be faced by all parties, both the wider community in their daily social life and the business world.
Pandu added, the opportunity for startups and MSMEs would be very large because changes in people’s behavior from offline to online would be even greater. Trade is believed to be increasingly turning to online systems.
Therefore, according to him, this opportunity should be seriously used by MSMEs to study and adapt to the system.
“MSMEs must see the direct effects of consumer behavior with the effects of PSBB and WFH for the past three months. The business must be able to continue to feel the behavior of consumers, including the effect of new normal to the community and their consumption patterns,” Pandu said.
Some businesses that according to Pandu will benefit from the existence of the new normal era are the e-commerce sector, logistics, cloud kitchen or collective kitchen, food delivery services, and so on.