The investors also reveal a long term goal to set up an incubator in the country
At a casual pitching session at a restaurant in Central Jakarta, Horizon-China & Feimalv Capital Founder Victor Yuan revealed Chinese investors’ plan to enter the Indonesian market.
“What we are going to do is set up a club, then probably an incubator, a multidimensional mechanism to support local startups,” he said.
“Our own organisations will also invest in here, especially since this is a scalable market with rising economy,” he added.
Likened today’s Indonesia to China seven years ago, he also called for local investors and businesses to collaborate together.
Hosted by Convergence Ventures, the event was held on Tuesday to introduce Indonesian tech startup scene to investors from China who are looking to get into the market.
Apart from Yue, some of the investors attending the event were Bob Xu (Founder of ZhenFund), Wensheng Cai (Founder of Longling Capital & Chairman of Meitu), Kai-Fu Lee (Chairman & CEO of Innovation Works), Zhengdong Ni (Founder, Chairman, and CEO of Zero2IPO Group), Xiangyang Yang (Founder of Shenzhen Resource Investment), and Charles Xue (angel investor).
The event also saw a pitching session from Indonesian startups such as Female Daily Network, Qraved, Seekmi, Laku6, YesBoss, Nida Rooms, Paktor, and GiftCard.
The investors are also set to meet with student-entrepreneurs from various universities during their visit.
“We now have a much clearer picture [of Indonesian startups community],” Yuan said.
Also Read: At a crossroad, will Indonesia follow the path set out by China or India?
There are several factors that draw these Chinese investors to look into Indonesian market.
According to Yuan, Indonesia’s multiracial background makes it easier for foreign investors to bridge between their own and local culture. The country also have “stronger Chinese connection” compared to other emerging markets such as Turkey.
“We don’t see a Chinatown in Istanbul. There’s a bigger cultural gap,” he explained.
He also saw some similarities between Indonesian and Chinese technopreneurs.
“The big innovation is done by people who are even younger [than most Asian markets]. If I look at the average age of innovators [in Indonesia] are younger than in China, so it’s even more promising,” he said.
When it comes to focus, Yuan believed that the service sector will remain popular in the next years. The investors will also focus on pre-Series A and Series A round of investments.
What are the factors that Yuan looked at when deciding to invest in a startup?
“The founder is important. When I looked at the founders here, they are multinationally trained. That means they have a much stronger international knowledge … They also need to have good team members, with a combination of local experts and senior level staffs,” he answered.
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