Unlike conventional companies, the startup business model relies heavily on external capital support. Then, how can startup founders find investors so quickly?
Partner at East Ventures, Melisa Irene, said that now is the right time for startups to raise investors’ funds because this industry’s ecosystem is still very open.
According to her, East Ventures has just closed around US$ 550 million (about 8.2 trillion) of funding. The funds will aim for around US$ 150 million for capital injection in the early stage and US$ 400 for the growth stage.
She underlined that startup founders must understand the investors they are working with. Apart from the capital, founders of startups also need the investors’ networks.
“So you want to work with … what we call smarter money. You want to work with their network and others, so try to find out more,” said Irene at the Tech in Asia Conference Roundtable in Jakarta on Thursday (15/09).
The easiest way to get close and receive funding is to find other founders who have received funds from these investors. Founders can ask for help to meet and get acquainted with the investors they want to target.
“Maybe it will be easier for you to earn trust from the introductions made,” she said.
Then, startup founders can look at the portfolio companies they invest in to determine if the company fits into the investor’s ecosystem.
“So if there is an added value that suits investors, your startup will be much more relevant, and hopefully, the closing rate will be better,” she concluded.
East Ventures is a venture capital that focuses on investing in Indonesian startups. This company is the first investor in Tokopedia and Traveloka.
This article was first published on CNBC Indonesia with the title “Investor Tokopedia Bocorkan Rahasia Startup Cepat Dapat Modal“, 15 September, 2022.