On Friday, September 15, 2024, the Bachelor of Entrepreneurship Venture Capital Business Class at SBM ITB welcomed a distinguished guest lecturer, Mr. Rimawan Yasin, the Main Director of the Amvesindo Institute. The session took place at the SBM ITB Building, where Mr. Rimawan delivered a comprehensive lecture on “Understanding the Dynamics of Venture Capital Funds.”
This course is meticulously designed to equip graduates of the Bachelor of Entrepreneurship program with the essential knowledge and skills needed to become adept entrepreneurs, because business is inseparable from financing.
During his engaging presentation, Mr. Rimawan shed light on the intricacies of Indonesia’s venture capital, comprising both general and limited partners. The fundamental distinction between these two categories is their respective responsibilities concerning debts and obligations.
The general partner is fully liable for debts and investment obligations. Meanwhile, limited partners, as the name suggests, have limited liability for debts and financing obligations.
Sources of financing come from insurance, government and corporate pension funds, large companies, banks, education funds, and so on. The amount of venture capital in Indonesia is still inferior to Singapore, with the obstacles include tax and legal regulations.
According to Mr. Rimawan, venture capital generates income through various channels, including management fees ranging from 1.5% to 2.5% annually from committed funds, recorded interest at 20%, and cost reimbursements. The venture capital fund agreement incorporates two pivotal concepts governing the capacity for occasional investments. The commitment period regulates the limited partner agreement with venture capital to attract capital and inject funds for 5 years into a particular company.
Now, what are the criteria for businesses seeking funding to attract venture capital investments? There are numerous factors to consider.
However, Mr. Rimawan underscores that a significant 70% of these criteria revolve around factors such as market opportunities, the strength of the entrepreneurial teams, and the presence of innovative technologies or solutions. Besides, Venture Capital places a premium on businesses demonstrating net profit growth and a clear focus on the solutions they offer.