The development of startup companies in Indonesia is increasing rapidly, thus attracting the interest of many investors. However, startups must go through several stages before obtaining funding from large investors. According to Alpha JWC Ventures, a venture capital company that has funded many startups in Indonesia, there are at least seven stages of startup funding.
The earliest stage is seed funding or often called the seed stage. This phase includes concept research and business planning.
The next stage is the entry of angel investors. At this stage, there is usually an agenda for product development.
The next stage is the early stage, followed by series A, B, and C funding. The last is the mezzanine stage, where funding has reached the preparation stage for an initial public offering or entering the stock exchange.
Teresa Chelsea Hartanto, Investment Professional Alpha JWC Ventures, explained the stages of investing in the startup during a virtual discussion session at the SBM ITB on Friday (22/2).
Currently, JWC is noted to have invested in several startup companies such as Lemonilo, Kopi Kenangan, and so on. Apart from investment, the company also focuses on operational financing activities and joint value creation with partners. As an investor and fund manager, JWC strives to ensure that its investments with partners will be successful in the long term.
According to Chelsea, several strategies are needed to make a good investment. One of them is paying attention to the CAP Table.
The CAP Table is a document that shows the ownership of a company, the number of fees that the owners must pay to obtain ownership of the company, and the number of securities issued by the company. Note that owner shares consist of two types: ordinary and preferred owners.
The CAP table also contains PPS (Price Per Share) and ESOP (Employee Share Option Pool). PPS can be calculated in two ways: the pre-valuation of money divided by shares before investment and the valuation of money divided by shares after investment. Thus, in the discussion session, Chelsea explained the stages of investing in startups and the strategies to invest well.
