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<h4>As the Indonesian tech sector matures, investors are increasingly specialising in specific stages of startup funding. While seed funding and early-stage funds have seen the most activity to date, significant pent-up demand exists from the local conglomerates, foreign funds and foreign tech companies to make larger-scale acquisitions. This pent-up demand is beginning to drive increased scale and efficiency throughout the funding process.</h4>
<h5><b>A broad range of investors that fall into five distinct categories</b></h5>
Over the past three years the Indonesian tech sector has seen over 25 deals of significance, plus the small-scale funding of hundreds of more speculative startups. An impressively broad array of investors has funded these ventures, which we categorise in five distinct groups:
<ul>
	<li>Early-stage funds (incubators, angels and seed funds, which can be local or foreign)</li>
	<li>Growth-stage funds (local or foreign)</li>
	<li>Foreign .coms and technology companies (primarily from Japan, the US and Europe)</li>
	<li>Local corporates and conglomerates</li>
	<li>Local mobile operators</li>
</ul>
Differing priorities and risk profiles lead each group to prefer different points in the startup lifecycle when they like to invest, and also lead to different appetites for the size of investment:

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In addition, some groups (for example GDP Ventures) have spread themselves across more than one category by setting up a primary investment fund and a complementary incubator.
<h5><b>How each investor group has performed to date in Indonesia</b></h5>
Around ten <b><i>accelerators and incubators</i></b> are active in Indonesia, focused on providing tech entrepreneurs with startup mentoring and sometimes also offering low-cost office and technology facilities. The ‘tied’ incubators (those associated with a growth-stage fund) used to be more active than the independent incubators, but in 2012 the independents began to increase their activity level, as their critical role in moving inexperienced entrepreneurs to the later funding stages became better appreciated by early-stage and growth-stage funds.

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