Frugal Investors, Startup Bosses Must Be Willing to Use Their Own Money Tech – 17 hours ago

Jakarta, CNBC Indonesia – Venture capital companies that are diligent in providing investment to startups are saving money. Startup founders who are seeking capital from investors now have to make more sacrifices, including using their own money as capital.

“Because most seeds were founded by them. We usually do two checks. Now four to five times per founder,” said Executive Director Investment Vertex Ventures Southeast Asia and India, Joshua Agusta at the event Tech in Asia ConferenceWednesday (18/10/2023).

The investment team now does not only discuss with startup founders. The management team and employees are also interviewed before investors decide to invest capital.

Apart from that, investors can no longer accept founders who only have pledged capital, a business plan, or a qualified background.

Now, what investors see is how far each company has achieved, including positive results, such as profits from the products it sells.

“Before summer [saat investor sedang royal]You can [hanya] write down basic plan promises, add projections. “You can ask people to check you out, maybe if you’re an Ivy League graduate or something,” he explained.

“But today, I don’t think that will happen anymore. If you’re C-level, it’s important to own shares in the company. I think a lot of investors want to know how much money [sendiri] that you invest in the company,” Joshua added.

With these conditions, Joshua explained that many companies have become much healthier than before.

MSW Ventures General Partner Jeffrey Seah revealed that the decision was taken before the tech winter occurred or when there was still a lot of money available and there was plenty of time and space. But now, many startups don’t have much time but the space is still there.

“So we look for founders who realize they only have a limited amount of time to cover that space,” said Seah.

[Gambas:Video CNBC]

Next Article

Stupid Founder, IDR 330 Trillion Startup Left Behind by Investors