Jakarta, CNBC Indonesia – Challenges for the startup industry for both players and investors will still occur in 2024.

East Ventures Managing Partner Roderick Purwana said that entering 2024 there will be a lot of uncertainty. Geopolitical tensions in several countries and global economic instability cause great volatility.

“However, we see positive signs. We remain alert, monitor closely, and focus on our goals regardless of external fluctuations,” Roderick said in his statement.

Regardless of good or bad conditions, the strategy they will use remains the same, namely identifying and investing in the best founders and opportunities.

He said that East Ventures would continue to invest agnostically. But it sees many investment prospects in various sectors, including climate such as the energy transition and projects related to climate, health and supply chains.

East Ventures is investing around US$ 80 million (around Rp. 1.2 trillion) in 29 investment deals for early and growth stage startups, throughout 2023. Of the 90% of growth stage startups in the East Ventures portfolio, 30% are on the path to profitability, 60% are already making a profit, and the remaining 10% are still trying to adapt.

Meanwhile, Treasurer of the Indonesian Venture Capital and Startup Association (Amvesindo) Edward Ismawan Chamdani said that economic factors such as interest rates, inflation and geopolitical situations can influence venture capital investment.

“Depending on the global economic climate, venture capital investors may be more careful or aggressive in their investments,” Edward told CNBC Indonesia.

There is a trend to invest in startups that not only demonstrate innovation, but also have a clear path to profitability. This may be what will shift the focus to more mature startups rather than early stage companies.

Changes in regulations, especially in areas such as data privacy, cybersecurity and financial services, can have a significant impact on startup opportunities and risks.

“So in the end investors or VCs will look for a balance between growth and risk management in 2024.” he stressed.

[Gambas:Video CNBC]

(dem/dem)