Funding For Global Startups Begins To Drag, Erick Thohir: Again Winter Season Investment

Erick Thohir considers funding that dragged against startups is an investment winter. (VOI/Mery Handayani)

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir revealed that there is currently a season winner or investment winter. This condition, he said, is a challenge for start-up companies in seeking funding.

The difficulty of getting funding, said Erick, was one of the fears that approached the start-up actors. Even so, Erick said there was still a chance to get funding.

This was conveyed by Erick in front of the startups at the Grand Final Pitching of the Country's Best Thoughts, at Ciputra Artpreneur, Jakarta, Sunday, August 25.

"You guys are also scared, can't you get consistent funding. That's right? Especially in this season's winter, 65 percent of shrinky's funding goes down, because the weather is like that. But how do we have to turn this fear into a solution, "said Erick.

Based on the data obtained, Erick said there was a decrease in funding from previous years. Including, he continued, investing in the technology sector.

"Moreover, in the midst of the winter situation, investment in technology. Where the data is 65 percent, I heard it fell unlike in previous years," he explained.

Erick also hopes that through an event initiated by the BUMN Foundation, it can help startups in developing their business in the country.

"It means, you can't give up, but why did the foundation provide another solution with a grant. As a help and hopefully this can happen again next year," he said.

Erick also advised start-up business actors to dare to work together. According to him, collaboration can ensure that businesses can survive by not only relying on funding from grants.

"Things like this entrepreneurs must dare to collaborate but must have the same mindset in the future that at the end yes this is business. This is what we must encourage," said Erick.

For information, in the Grand Final Pitching of the Country's Best Thoughts initiated by the BUMN Foundation, at least 20 finalists were selected. All received funding assistance of IDR 150 million each for business development.

The funds were obtained from various venture capitals, both from state-owned enterprises, domestic private companies, and foreign companies. In addition to the funding, there are also several startups that are considered to have the best idea of all receiving additional funding, ranging from IDR 5 million to IDR 50 million.