Along with the growth of the Indonesian economy, many new companies have emerged. In this case, funding from a venture capital company becomes one of the startup’s supporters. Inevitably, the funds are needed to speed up the startup performance. For those of you who are still confused about venture capital, here is the discussion.
Venture Capital in Indonesia
Abbreviated as VC, the Venture Capital Company was formed to inject investment into newly established small companies. The company in question here is a technology company designed to develop quickly or commonly called startup. Also, the startup associated with digital technology becomes the new Venture Capital investment in Indonesia.
As a reciprocal of the investment, a VC will get some shares from the company. With hope when it can be disbursed, the shares are worth far greater than the amount of investment that has been issued. But in fact, not all VCs get what they expect. The reason is that their startup investment is failing, so a VC usually provides investments to many startups at once. Like planting seeds, VC hopes one of what they plant will grow and bear fruit.
The Process of Venture Capital Investment
After reading the brief explanation above, you certainly have an idea what is VC. So, how the investment process from Venture Capital? Several stages must be passed.
- Submit a business plan
To get an investment from VC, a startup should create a detailed business plan. The plan should include an explanation of the opportunities description and the market potential of your business, your team’s credibility, reviews of your business competition and the solutions, and the financial statements.
- Follow up
After VC sees your explanation, they will discuss whether they will provide funds or not. If they are interested, VC will follow up your project in a meeting. The meeting will determine if the VC decides on your startup to enter the due diligence stage or not.
- Due-diligence
The duration of due diligence can’t be determined with certainty, but usually about three weeks to 3 months. Within that period, startup owners will receive many emails and calls related to the discussion of products or services they will offer to the public.
- Document Agreement and Investment
If your startup passes the due diligence stage, VC will provide you with an agreement document. In the document will be explained by the terms and conditions of the investment agreement. The agreement document can usually be negotiated and must get approval from all parties. This process usually lasts three to four weeks to complete all the legality of the document, before you finally receive the investment.
The investment is certainly not only given once. A good startup can receive multiple investments until it reaches the exit stage. And the amount of investment will be adjusted to the stage of the startup.
New Venture Capital investment in Indonesia continues to grow from time to time. It proves that the business climate in this country continues to improve. To simplify the legal processing of your new company document, contact Company Registration Co. ID immediately. We provide document legality services for more than 15 years, and there are thousands of companies that have collaborated with Company Registration Co. ID.
