<p style="text-align: justify;"><img class="alignnone size-full wp-image-2527" alt="Post - investors analysis 3 - graphic" src="http://redwingconsulting.com/wp-content/uploads/Post-investors-analysis-3-graphic.jpg" width="700" height="300" /></p>

<h4 style="text-align: justify;"><b>Tech investments in Indonesia are on a healthy growth path, with almost as many in the first half of 2013 as in all of 2012. More Round 1 and Round 2 investments are taking place, with fewer seed investments, reflecting a growing maturity among Indonesian startups. Foreign investors still dominate the large deals, and deal size in general is growing.</b></h4>
<h5 style="text-align: justify;"><b>Healthy deal volume growth in 2013</b></h5>
<p style="text-align: justify;">18 investment deals were announced in the first six months of 2013, close to the 20 deals announced in the whole of 2012.</p>
<p style="text-align: justify;">The majority of the deals were Rounds 1 to 3, as Indonesian tech companies enter their growth phases.</p>
<p style="text-align: justify;"><img class="alignnone size-full wp-image-2525" alt="Post - investors analysis 3 - chart 1" src="http://redwingconsulting.com/wp-content/uploads/Post-investors-analysis-3-chart-1.jpg" width="573" height="401" /></p>
<p style="text-align: justify;">Another data point suggesting the tech sector is firmly in growth mode is the absence of acquisitions in 2013. Investors still see upside value in their investees, and so would prefer to raise further capital to drive growth rather than to sell out and exit.</p>

<h5 style="text-align: justify;"><b>Deal size is growing</b></h5>
<p style="text-align: justify;">Another major trend is that the number of large deals is increasing significantly. Only 3 deals before 2012 were sizeable, while over the past two years there have been 10 deals of at least US$2m.</p>
<p style="text-align: justify;"><img class="alignnone size-full wp-image-2526" alt="Post - investors analysis 3 - chart 2" src="http://redwingconsulting.com/wp-content/uploads/Post-investors-analysis-3-chart-2.jpg" width="575" height="404" /></p>
<p style="text-align: justify;">Foreign investors still dominate the larger deals, and Rocket Internet dominates most of all. The top 8 deals announced over the past three years have been:</p>
<p style="text-align: justify;"><img class="alignnone size-full wp-image-2533" alt="Post - investors analysis 3 - chart 3" src="http://redwingconsulting.com/wp-content/uploads/Post-investors-analysis-3-chart-3.jpg" width="551" height="185" /></p>
<p style="text-align: justify;">(note: Lazada and Zalora total investments have been allocated to Indonesia and other SE Asia countries according to pops)</p>
<p style="text-align: justify;">However, Indonesia is a country where foreign companies tend not to retain 100% ownership of their Indonesian operations, and we can expect to see some major investments from the Indonesian media companies and conglomerates over the next two to three years.</p>