(1878,1,'2013-01-26 04:59:57','2013-01-26 04:59:57','<a href=\"http://redwing-asia.com/client-services/attachment/page-client-services-graphic-2/\" rel=\"attachment wp-att-1279\"><img class=\"alignnone size-full wp-image-1279\" alt=\"Page - Client Services - graphic 2\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Client-Services-graphic-2.jpg\" width=\"700\" height=\"270\" /></a>\n<p style=\"text-align: justify;\">Redwing helps investment funds and technology-based companies successfully invest in the Indonesian tech sector by helping them build long-term growth companies. We work with investors within a variety of project constructs, from acting as investment and business advisors to actively participating in growth ventures.</p>\n<p style=\"text-align: justify;\">We bring a unique combination of skills: a wealth of experience from having started up companies in the US, Europe and Asia, expertise in business strategy, business model development and strategic marketing, and many years of working in a variety of business sectors in Indonesia.</p>\n<p style=\"text-align: justify;\">If you are a current or intending investor in Indonesia, these are the types of questions we can help you answer:</p>\n\n<h5 style=\"text-align: justify;\">Understanding the Indonesian market</h5>\n<ul style=\"text-align: justify;\">\n	<li>What are the critical dynamics and trends in the Indonesian tech sector?</li>\n	<li>What is coming next in Indonesian tech that will suit my investment criteria?</li>\n	<li>Where are the opportunities to invest, and which key players in the tech sector should I watch?</li>\n</ul>\n<p style=\"padding-left: 30px;\">[peekaboo name=\"reveal1\" onhide=\"How Redwing can help you understand the Indonesian market ▼\" onshow=\"How Redwing can help you understand the Indonesian market {hide}\"]<code></code>[peekaboo_content name=\"reveal1\"]</p>\n<p style=\"padding-left: 30px;\"><img class=\"alignnone size-full wp-image-1782\" alt=\"Page - Client Services - Reveal One 2\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Client-Services-Reveal-One-2.png\" width=\"502\" height=\"79\" /></p>\n[/peekaboo_content]\n<h5 style=\"text-align: justify;\">Investing in the Indonesian tech sector</h5>\n<ul style=\"text-align: justify;\">\n	<li>Which segments in the tech sector should I target?</li>\n	<li>What growth strategy should I pursue in Indonesia?</li>\n	<li>How can I best manage risk?</li>\n</ul>\n<p style=\"padding-left: 30px;\">[peekaboo name=\"reveal2\" onhide=\"How Redwing can help you invest in the Indonesian tech sector ▼\" onshow=\"How Redwing can help you invest in the Indonesian tech sector {hide}\"]<code></code>[peekaboo_content name=\"reveal2\"]</p>\n<p style=\"padding-left: 30px;\"><img class=\"alignnone size-full wp-image-1783\" alt=\"Page - Client Services - Reveal Two\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Client-Services-Reveal-Two.png\" width=\"502\" height=\"80\" /></p>\n[/peekaboo_content]\n<h5 style=\"text-align: justify;\">Doing deals</h5>\n<ul style=\"text-align: justify;\">\n	<li>I have a target investment in mind: what is its growth potential?</li>\n	<li>What is the best business model for this target company?</li>\n	<li>How much should I pay to invest, and what shareholding should I receive?</li>\n	<li>What risks do I need to watch for once I have invested?</li>\n</ul>\n<p style=\"padding-left: 30px;\">[peekaboo name=\"reveal3\" onhide=\"How Redwing can help you do deals in the Indonesian tech sector ▼\" onshow=\"How Redwing can help you do deals in the Indonesian tech sector {hide}\"]<code></code>[peekaboo_content name=\"reveal3\"]</p>\n<p style=\"padding-left: 30px;\"><img class=\"alignnone size-full wp-image-1784\" alt=\"Page - Client Services - Reveal Three\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Client-Services-Reveal-Three.png\" width=\"502\" height=\"80\" /></p>\n[/peekaboo_content]\n<h5 style=\"text-align: justify;\">Managing investees</h5>\n<ul>\n	<li>What growth plan should the investee follow?</li>\n	<li>What governance needs to be put in place?</li>\n	<li>How do set realistic targets and then check that the investee is on track?</li>\n</ul>\n<p style=\"padding-left: 30px;\">[peekaboo name=\"reveal4\" onhide=\"How Redwing can help you manage investees in Indonesia ▼\" onshow=\"How Redwing can help you manage investees in Indonesia {hide}\"]<code></code>[peekaboo_content name=\"reveal4\"]</p>\n<p style=\"padding-left: 30px;\"><img class=\"alignnone size-full wp-image-1785\" alt=\"Page - Client Services - Reveal Four\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Client-Services-Reveal-Four.png\" width=\"502\" height=\"80\" /></p>\n[/peekaboo_content]\n<h5></h5>','Client Services','','inherit','open','open','','30-revision','','','2013-01-26 04:59:57','2013-01-26 04:59:57','',30,'http://stage.redwing-asia.com/uncategorized/30-revision/',0,'revision','',0),(1879,1,'2013-03-14 09:19:23','2013-03-14 09:19:23','<a href=\"http://redwing-asia.com/contact-us/attachment/page-about-us-graphic-2/\" rel=\"attachment wp-att-1130\"><img class=\"alignnone size-full wp-image-1130\" alt=\"Page - About Us - graphic 2\" src=\"http://redwing-asia.com/wp-content/uploads/Page-About-Us-graphic-2.jpg\" width=\"700\" height=\"270\" /></a>\r\n<h5 style=\"text-align: justify;\">What we do</h5>\r\n<p style=\"text-align: justify;\">Redwing is a boutique advisory firm that helps investment funds and technology-based companies identify, assess, secure and manage high-quality tech investments.</p>\r\n<p style=\"text-align: justify;\">We help investors successfully build long-term growth companies in the Indonesian tech sector by applying a unique combination of skills:</p>\r\n\r\n<ul>\r\n	<li style=\"text-align: justify;\">A wealth of experience from having started up companies in the US, Europe and Asia</li>\r\n</ul>\r\n<ul>\r\n	<li style=\"text-align: justify;\">Expertise in business strategy, business model development and strategic marketing</li>\r\n</ul>\r\n<ul>\r\n	<li style=\"text-align: justify;\">Over 15 years of working in a variety of business sectors in Indonesia</li>\r\n</ul>\r\n<h5 style=\"text-align: justify;\">Our track record</h5>\r\n<p style=\"text-align: justify;\">Redwing was originally founded in 1991, and spent its first decade as a roving international startup SWAT team that helped mobile operators in the US, Europe and Asia launch overseas ventures.</p>\r\n<p style=\"text-align: justify;\">Many of the companies we helped to set up are now multi-billion dollar entities. You can view a partial list of our global track record [peekaboo name=\"table1\" onhide=\"here ▼\" onshow=\"here ▲\"]<code></code>[peekaboo_content name=\"table1\"]</p>\r\n<p style=\"text-align: center;\"><img class=\"size-full wp-image-1768 aligncenter\" alt=\"Page - About Us - cellular projects chart 3\" src=\"http://redwing-asia.com/wp-content/uploads/Page-About-Us-cellular-projects-chart-3.png\" width=\"650\" height=\"257\" /></p>\r\n<p style=\"text-align: justify;\">[/peekaboo_content]</p>\r\n<p style=\"text-align: justify;\">The first incarnation of Redwing was acquired by a US internet firm in a multi-million dollar deal during the 1990s dot-com boom. Following this, Redwing\'s principals formed an angel investment and incubator company which invested in a number of US tech startups. The most successful of these, xAd, now serves over 85 million unique users a month in the US with highly targeted local mobile advertising.</p>\r\n<p style=\"text-align: justify;\">The second incarnation of Redwing was launched in Asia in 2007, with a primary focus on Indonesia. Initially focused on driving growth in multiple high-potential sectors, Redwing developed powerful business plans for a string of successful Indonesian companies. A partial list of our Indonesian track record can be viewed [peekaboo name=\"table2\" onhide=\"here ▼\" onshow=\"here ▲\"]<code></code>[peekaboo_content name=\"table2\"]</p>\r\n<p style=\"text-align: center;\"><img class=\"size-full wp-image-1769 aligncenter\" alt=\"Page - About Us - Indo projects chart 2\" src=\"http://redwing-asia.com/wp-content/uploads/Page-About-Us-Indo-projects-chart-2.png\" width=\"650\" height=\"214\" /></p>\r\n[/peekaboo_content]\r\n<h5>Redwing and the Indonesian tech sector</h5>\r\n<p style=\"text-align: justify;\">Having watched in dismay as Indonesia suffered during the Asian financial crisis in 1997, we watched with delight as it sailed through the global financial crisis of 2008. We\'ve seen the country perform in bad times, so we understand many of its strengths in good times.</p>\r\n<p style=\"text-align: justify;\">We are exceptionally bullish on the tech sector right now, and believe it will outperform most of the analysts\' current forecasts, as the perfect storm of a rising middle class, falling technology prices and a young tech-oriented population all come together.</p>\r\n<p style=\"text-align: justify;\">Having said this, over the past few years we have seen two factors that inhibit the growth of the tech sector in Indonesia: firstly that Indonesia is something of a mystery to overseas investors and often does not appear in their asset allocation list, and secondly that overseas investors are an unknown quantity for most Indonesian tech companies. Yet each has so much to offer the other.</p>\r\n<p style=\"text-align: justify;\">So we believe a bridge needs to be built between the two groups - as we say: \"Indonesia\'s tech sector needs bridges, not valleys\". This website is one aspect of our own bridge-building, and aims to raise everyone’s awareness of opportunities in the Indonesian tech sector.</p>\r\n<p style=\"text-align: justify;\">Our section on Client Services describes what we do in more detail. By applying our expertise in startups, the tech industry and Indonesia, we help investors identify suitable investees, build growth strategies based on a sustainable business models, and oversee the execution of long-term growth plans. We do this under a variety of project constructs, from acting as investment and business advisors to actively participating in growth ventures.</p>\r\n<p style=\"text-align: justify;\">And, having worked in a number of companies that grew from zero to multi-billion dollar entities, we know what it takes to build sizable companies. We focus on substantial investment opportunities in Indonesia, where the application of capital, skills and sound business plans can create significant financial returns for the founders and investors.</p>','About Us','','inherit','open','open','','32-revision-2','','','2013-03-14 09:19:23','2013-03-14 09:19:23','',32,'http://stage.redwing-asia.com/uncategorized/32-revision-2/',0,'revision','',0),(1880,1,'2013-02-13 08:21:46','2013-02-13 08:21:46','<p style=\"text-align: justify;\"><img class=\"alignnone size-full wp-image-1483\" alt=\"Page - Market Data - user trends graphic 3\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Market-Data-user-trends-graphic-3.jpg\" width=\"700\" height=\"270\" /></p>\n\n<h4 style=\"text-align: justify;\">As you\'d expect in a country where the average age is 28, the typical Indonesian internet user is a young, tech-savvy city dweller. So it\'s a surprise to learn that the most rapid growth in internet users is currently coming from the 30+ age groups and the secondary cities. We believe this is great, great news for tech investors. Because it means the market is rapidly moving away from its past obsession with social media chatting and simple free entertainment, and moving towards e-commerce, paid online content and B2B services.</h4>\n<h5 style=\"text-align: justify;\">Moving away from a user base which was simply too young</h5>\n<p style=\"text-align: justify;\">Five years ago, Indonesia\'s mobile and internet markets were dominated by the under-25s. Energetic and talkative, they made Indonesia the social media capital of the world. The problem was, they didn\'t spend much money online, in large part because most under-25s don\'t have much money to spend.</p>\n<p style=\"text-align: justify;\">Wind the clock forwards and the picture is changing rapidly. The fastest-growing age group in terms of internet adoption over the past three years has been the 35-39 year-olds. The second fastest-growing group was the 30-34 year-olds. Wealthier, busier, and with businesses to run and families to manage, they place more value on the convenience that the internet offers and have a higher ability to pay for services. The rapid rise of startups such as home food delivery and e-commerce verticals is a direct result of this user base trend.</p>\n<p style=\"text-align: center;\"><img class=\"size-full wp-image-955 aligncenter\" alt=\"Page - Market data user profiles age groups chart 4\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Market-data-user-profiles-age-groups-chart-4.png\" width=\"650\" height=\"371\" /></p>\n<p style=\"text-align: justify;\">This spreading-out of the user base is evident in other areas too. While penetration is highest in the A social class, the fastest growth is currently occurring in the C social class, and the ABC social classes are now fairly evenly represented in the overall user base. From a gender perspective, more men use the internet each month than women, but the higher growth rates are among the female age groups.</p>\n\n<h5 style=\"text-align: justify;\">Two clear usage segments emerging</h5>\n<p style=\"text-align: justify;\">As the composition of the user base evolves, two clear usage segments are emerging. One is older (25+) and wealthier, with a primary focus on gaining utility from the internet - we call these the Utility Users. The other is younger with less disposable income, and has a primary focus on finding entertainment on the internet - we\'ve named them the Entertainment Users.</p>\n<p style=\"text-align: justify;\">Here is one example of how the two segments clearly differ in their behaviour:</p>\n<p style=\"text-align: center;\"><img class=\"size-full wp-image-963 aligncenter\" alt=\"Page - Market data user profiles usage location chart 2\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Market-data-user-profiles-usage-location-chart-2.png\" width=\"650\" height=\"262\" /></p>\n<p style=\"text-align: justify;\">The older, wealthier Utility Users primarily use the internet from home, and secondarily from their office. The Entertainment Users are very different, and still make heavy use of <em>Wartels</em> (public internet cafes). Beyond this graph, further statistics show that the Utility Users also access the internet through different devices: primarily desktops and laptops, then smartphones. The Entertainment Users mainly access the internet through feature phones.</p>\n<p style=\"text-align: justify;\">A second striking difference is in <span style=\"text-decoration: underline;\">what</span> they access on the internet:</p>\n<p style=\"text-align: center;\"><img class=\"size-full wp-image-1204 aligncenter\" alt=\"Page - Market data user profiles top topics chart 6\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Market-data-user-profiles-top-topics-chart-6.png\" width=\"654\" height=\"198\" /></p>\n<p style=\"text-align: justify;\">While social networking appears near the top of both lists (Indonesians <em>really are</em> some of the most sociable people on earth), the Utility Users are also heavy users of typical productivity services such as email and news portals.</p>\n\n<h5 style=\"text-align: justify;\">Why does all this matter?</h5>\n<p style=\"text-align: justify;\">One of the most common (and one of the biggest) errors that new investors make in Indonesia is to think of the country as a market of 240 million people. It\'s not - it\'s a huge market made up of different segments with distinct needs and behaviours (with the above two segments merely representing a high-level simplification of a much richer picture).</p>\n<p style=\"text-align: justify;\">For a startup tech company with a limited number of people and limited marketing budgets, trying to target the whole of Indonesia at once can be suicidal.</p>\n<p style=\"text-align: justify;\">Launching a new internet company is all about focus, and that has to start with selecting a slice of the market where the planned service is most likely to thrive. Segmenting the users by demographics and behaviour is a first step. A geographic filter is a often second. More sophisticated usage habits and psychographic variables can be third. These all go towards building an actionable view of the market from which post-launch changes and pivots can be made.</p>\n<p style=\"text-align: justify;\">The bottom line: by understanding user trends, investors can get a better return on every single dollar they put in to a tech startup.</p>\n\n<h6>Sources: Nielsen, University of Indonesia, Statistics Indonesia, Yahoo/TNS, World Bank, Veritrans.</h6>','User trends','','inherit','open','open','','352-revision','','','2013-02-13 08:21:46','2013-02-13 08:21:46','',352,'http://stage.redwing-asia.com/uncategorized/352-revision/',0,'revision','',0),(1881,1,'2013-01-27 04:39:12','2013-01-27 04:39:12','<img class=\"alignnone size-full wp-image-1496\" alt=\"Page - Market Data - Regional comparisons graphic 2\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Market-Data-Regional-comparisons-graphic-2.jpg\" width=\"750\" height=\"270\" />\n<h4 style=\"text-align: justify;\">By 2015, the number of internet users in China, India and Indonesia will have pulled far ahead of the other developing Asian countries, driven in large part by their huge populations. Indonesia\'s mobile-first dynamic mean that usage habits differ from its two larger cousins, both of which are more PC-oriented. Looking into the future, there is a strong case for the internet sector in Indonesia growing at a compounded 25% rate for the next TWO decades.</h4>\n<h5 style=\"text-align: justify;\">As many internet users as Vietnam, Thailand, Malaysia and the Philippines <span style=\"text-decoration: underline;\">combined</span></h5>\n<p style=\"text-align: justify;\">For a crystal clear example of the way Indonesia will dominate the ASEAN region in the coming years, take a look at the forecasts for the internet user base in 2015. With 125 million users, Indonesia will have as many people using the internet as the next four largest ASEAN countries combined.</p>\n<img class=\"size-full wp-image-1497 aligncenter\" alt=\"Page - Market Data - Regional internet penetration chart 5\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Market-Data-Regional-internet-penetration-chart-5.png\" width=\"650\" height=\"592\" />\n<p style=\"text-align: justify;\">While penetration will lag Malaysia (with its higher GDP per capita) and Vietnam (with strong government IT policies and a much easier geography to connect to the internet), it will significantly exceed both Thailand and the Philippines. Indonesia also, by the way, is on course to have a higher internet penetration level than China.</p>\n\n<h5 style=\"text-align: justify;\">Different usage habits, different access methods</h5>\n<p style=\"text-align: justify;\">Two things are notable in an analysis of regional usage habits - Indonesians access the web via their mobile phones much more than those in other countries, and they spend less time online per week.</p>\n<p style=\"text-align: center;\"><img class=\"size-full wp-image-1027 aligncenter\" alt=\"Page - Analysis - Regional hours online and mobile access charts\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Analysis-Regional-hours-online-and-mobile-access-charts.png\" width=\"650\" height=\"285\" /></p>\n<p style=\"text-align: justify;\">We believe the two factors are related, since statistics around the world show that people spend less time online when they access the internet from a smaller screen. But there is also a cultural effect, since one common Indonesian trait is to do frequent, short bursts of online activity - witness the rapid growth of SMS and Blackberry Messenger on mobile phones, and the emerging growth of Twitter over Facebook.</p>\n\n<h5 style=\"text-align: justify;\">And a last thought on the size of Indonesia\'s internet economy</h5>\nThe internet economy in Indonesia is currently estimated to be about 1.6% of GDP, a number which indicates the share of Indonesia’s economic output that can be directly attributed to the Internet. For comparison, the UK\'s internet economy is currently estimated at 7.3% of GDP.\n\nBy 2030, Indonesia is forecast to have a larger economy than the UK. Given the rate of technological progress, it could conservatively be assumed that by 2030 the internet economy in Indonesia will be at least 7% of GDP.\n\nThese assumptions suggest that the internet economy in Indonesia will grow from US$13 billion today to US$657 billion in 2030, representing a sustained average growth rate of almost 25% for the next 17 years.\n\n<em>That</em> is a market worth investing in.\n<h6>Sources: ITU, Frost &amp; Sullivan, Nielsen, McKinsey Global Institute,Standard Chartered, eMarketer, Deloitte, Bank Indonesia, Gartner.</h6>\n&nbsp;','Regional comparisons','','inherit','open','open','','73-revision','','','2013-01-27 04:39:12','2013-01-27 04:39:12','',73,'http://stage.redwing-asia.com/uncategorized/73-revision/',0,'revision','',0),(1882,1,'2013-02-13 07:40:32','2013-02-13 07:40:32','<img class=\"alignnone size-full wp-image-1154\" alt=\"Page - Investors - Timeline of investments graphic 2\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Investors-Timeline-of-investments-graphic-2.jpg\" width=\"700\" height=\"270\" />\n\n<img class=\"size-full wp-image-1507 aligncenter\" alt=\"Page - Investors - Timeline of investments chart 4\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Investors-Timeline-of-investments-chart-4.png\" width=\"640\" height=\"3072\" />\n<h6><span style=\"color: #888888;\">Redwing strives for accuracy in its company analyses - if there are any details you would like to add to this analysis please contact us here.</span></h6>','Timeline of investments','','inherit','open','open','','287-revision','','','2013-02-13 07:40:32','2013-02-13 07:40:32','',287,'http://stage.redwing-asia.com/uncategorized/287-revision/',0,'revision','',0),(1883,1,'2013-02-26 04:54:13','2013-02-26 04:54:13','<img class=\"alignnone size-full wp-image-1511\" alt=\"Page - Investors - Types of investors graphic 3\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Investors-Types-of-investors-graphic-3.jpg\" width=\"700\" height=\"270\" />\n<h4 style=\"text-align: justify;\">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>\n<h5 style=\"text-align: justify;\"><b>A broad range of investors that fall into five distinct categories</b></h5>\n<p style=\"text-align: justify;\">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:</p>\n\n<ul style=\"text-align: justify;\">\n	<li>Early-stage funds (incubators, angels and seed funds, which can be local or foreign)</li>\n	<li>Growth-stage funds (local or foreign)</li>\n	<li>Foreign .coms and technology companies (primarily from Japan, the US and Europe)</li>\n	<li>Local corporates and conglomerates</li>\n	<li>Local mobile operators</li>\n</ul>\n<p style=\"text-align: justify;\">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:</p>\n<p style=\"text-align: center;\"><img class=\"size-full wp-image-777 aligncenter\" alt=\"Page - Investors - Types of investors categories 2\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Investors-Types-of-investors-categories-2.jpg\" width=\"650\" height=\"356\" /></p>\n<p style=\"text-align: justify;\">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.</p>\n\n<h5 style=\"text-align: justify;\"><b>How each investor group has performed to date in Indonesia</b></h5>\n<p style=\"text-align: justify;\">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.</p>\n<p style=\"text-align: justify;\">The <b><i>early-stage funds</i></b> have been very active for the past three years, led by East Ventures which has made 18 investments in Indonesia. This is currently the sweet spot for investing in the Indonesian tech sector, which reflects the relatively early stage of the industry</p>\n<p style=\"text-align: justify;\">The <b><i>growth-stage funds</i></b> are looking for tech firms with an existing track record and who are seeking funding to expand an already-proven service offering. Only a handful of tech companies fit this profile at the moment, so the activity level of the growth-stage funds is relatively low. It will pick up significantly over the next two years as the early-stage funds seek to move their investments into Series B and Series C funding rounds.</p>\n<p style=\"text-align: justify;\">The early-stage and growth-stage funds are mainly headquartered in Indonesia, Singapore and Japan.</p>\n<p style=\"text-align: justify;\">The <b><i>foreign .coms and technology companies</i></b> take one of three investment approaches: they form a JV with a local Indonesian company, they acquire an existing tech company, or they invest directly into their own local subsidiary by bringing in expat executives and hiring local employees. Investments by Yahoo, Groupon and LivingSocial have underperformed (although the underperformance has been more on the side of the acquirers rather than the Indonesian companies), while later investments by Google, eBay, Rocket Internet and a number of Japanese tech companies are still in their early stages.</p>\n<p style=\"text-align: justify;\">The <b><i>local corporates and conglomerates</i></b> who have been active to date have mainly been media companies, and have tended to make 100% acquisitions of relatively mature internet properties. Their acquisitions have largely been successful to date, enabling them to expand into digital media and defend against future competition. Note also that a number of Indonesian conglomerates have set up their own incubators and early-stage funds to explore opportunities with younger startups.</p>\n<p style=\"text-align: justify;\">The <em><strong>mobile operators</strong></em> have started a variety of incubator and accelerator initiatives, using these as a way to discover new talent. But the greater part of their resources has focused on expanding their own service platforms and billing systems to enable tech companies to deliver services to the mobile customer base. So it is important to understand while the operators are not the largest direct investors in the tech sector, in the Indonesian market they are amongst the most powerful influences that affect where startup opportunities exist.</p>\n\n<h5 style=\"text-align: justify;\"><b>Staged investments leading to successful exits are possible</b></h5>\n<p style=\"text-align: justify;\">The standard investment route for startups is now in place in Indonesia, with a number of companies in the process of moving through the stages of Seed → Series A → Series B → Exit acquisition. East Ventures has been the most successful investor to date, having achieved exits via the sale of Disdus to Groupon and Urbanesia to Kompas, as well as bringing later-stage investors into Tokopedia.</p>\n<p style=\"text-align: justify;\">This staged process will only expand over the coming years, both in scale and speed, in response to the demand from larger investors for large-scale acquisitions. The Indonesian conglomerates have woken up to the opportunities in the internet sector, as have the foreign tech companies, the Japanese in particular. As the tech sector as a whole continues to mature, Indonesia will develop a smoother and larger-scale process to take young startups up to scale and eventual exit.</p>\n\n<h6 style=\"text-align: justify;\">Sources: Wall Street Journal Asia, Jakarta Globe, e27, Daily Social, TechInAsia, TheNextWeb, sge, TechCrunch, East Ventures, Telkomsel, Yahoo, MNC</h6>','Types of investors','','inherit','open','open','','748-revision','','','2013-02-26 04:54:13','2013-02-26 04:54:13','',748,'http://stage.redwing-asia.com/uncategorized/748-revision/',0,'revision','',0),(1884,1,'2013-02-13 09:18:28','2013-02-13 09:18:28','<p style=\"text-align: justify;\"><img class=\"alignnone size-full wp-image-1544\" alt=\"Page - Startups - Key sectors graphic 5\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Startups-Key-sectors-graphic-5.jpg\" width=\"700\" height=\"270\" /></p>\n\n<h4 style=\"text-align: justify;\">Indonesia\'s startups are currently developing a range of E-commerce, mobile, social media, digital content and entertainment offerings, with a focus on ideas that are based on sustainable business models. While the largest investments early in 2012 went into broad-based E-commerce sites, more recent investments have been focused on E-Commerce verticals, mobile apps, and services that leverage social connections.</h4>\n<h5 style=\"text-align: justify;\">Increasing levels of startup innovation</h5>\n<p style=\"text-align: justify;\">A clear sign of the maturing tech sector in Indonesia is the move away from cloning foreign websites that characterised the initial internet growth spurt in 2010 and 2011, and the increasing number of services that are clearly aimed at particular customer needs in Indonesia. Case in point: Saqina\'s new Pinterest-flavoured website specialising in muslim women\'s fashions.</p>\n<p style=\"text-align: justify;\">Below is a categorisation of the various startups which have been funded since the start of 2012, together with the types of startups which are currently being incubated by the various accelerators, incubators and early-stage funds in Indonesia.\n<code></code></p>\n<a href=\"http://redwing-asia.com/startups/key-startup-sectors/attachment/page-startups-key-sectors-table/\" rel=\"attachment wp-att-1545\"><img class=\"size-full wp-image-1545 aligncenter\" alt=\"Page - Startups - Key sectors table\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Startups-Key-sectors-table.png\" width=\"650\" height=\"853\" /></a>\n<h5 style=\"text-align: justify;\">A significant number of startups exist below the radar</h5>\n<p style=\"text-align: justify;\">The table above is based on information in the public domain, yet Indonesia has always been a country where investors love to do deals on the quiet. Many startups exist in the Indonesian equivalent of stealth mode, happily building customer bases and striking partnership deals with nary a PR release in sight.</p>\n<p style=\"text-align: justify;\">In particular, there are a number of companies working on:</p>\n\n<ul style=\"text-align: justify;\">\n	<li>Various categories of B2B software</li>\n	<li>Services targeted at the huge base of feature phones</li>\n	<li>Financial services such as banking and insurance</li>\n	<li>SMS and other messaging-based services</li>\n	<li>Ad platforms for the mobile operators</li>\n	<li>Locally-oriented search engines</li>\n</ul>\n<p style=\"text-align: justify;\">These are typically funded by close-knit networks of business associates (Indonesia\'s equivalent of friends &amp; family funding), and are often able to reach a significant size before their existence becomes widely-known.</p>','Key startup sectors','','inherit','open','open','','382-revision','','','2013-02-13 09:18:28','2013-02-13 09:18:28','',382,'http://stage.redwing-asia.com/uncategorized/382-revision/',0,'revision','',0),(1885,1,'2013-01-27 08:05:26','2013-01-27 08:05:26','<img class=\"alignnone size-full wp-image-1548\" alt=\"Page - Startups - Key players graphic 3\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Startups-Key-players-graphic-3.jpg\" width=\"700\" height=\"270\" />\n<h4 style=\"text-align: justify;\">Indonesian sites are growing quickly: out of the 50 most-visited sites in Indonesia, 22 are local sites, compared to just 12 sites a year ago. But they\'re not there yet: foreign-based sites still hold the top five places. News and entertainment portals continue to attract large volumes of traffic, but the e-commerce category is growing quickly, with three e-commerce markets and two payment platforms now in the top 50. Outside the top 50, a broad range of newer ventures are still going through their early funding stages, and are therefore potential near-term investment targets.</h4>\n<h5 style=\"text-align: justify;\">Foreign sites head the list, but local sites are gaining</h5>\nGoogle leads in Indonesia, followed by the usual suspects in the top 5 (apart from the somewhat surprising blogspot.com...Indonesians are addicted to blogging as well as social media).\n\nAmong the 22 Indonesian sites in Alexa\'s top 50 ranking, Detik and Kompas are still in the top 3, but sites oriented towards e-commerce are rising rapidly.\n<p style=\"text-align: justify;\"><img class=\"alignnone size-full wp-image-1017\" alt=\"Page - Startups - Top sites table 2\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Startups-Top-sites-table-2.jpg\" width=\"381\" height=\"786\" /></p>\n\n<h5 style=\"text-align: justify;\">Investment targets exist in almost all internet segments</h5>\n<p style=\"text-align: justify;\">Below is our list of all the major investment transactions in Indonesia\'s tech sector between 2010 and 2012, indicating the year of the transaction and the type of funding. (Please note that no firm definitions of funding stages yet exist in Indonesia, so the terms \'Seed\', \'Round 1\', etc. are mainly indicative of the funding round sequence, and not necessarily the amount invested.)</p>\n<a href=\"http://redwing-asia.com/startups/key-players/attachment/page-startups-key-players-table-4/\" rel=\"attachment wp-att-1549\"><img class=\"alignnone size-full wp-image-1549\" alt=\"Page - Startups - Key players table 4\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Startups-Key-players-table-4.png\" width=\"697\" height=\"2768\" /></a>\n<h6><span style=\"color: #888888;\">Redwing strives for accuracy in its company analyses - if there are any details you would like to add to this analysis please contact us here.</span></h6>','Key players','','inherit','open','open','','164-revision','','','2013-01-27 08:05:26','2013-01-27 08:05:26','',164,'http://stage.redwing-asia.com/uncategorized/164-revision/',0,'revision','',0),(1886,1,'2013-03-14 09:24:00','2013-03-14 09:24:00','<p style=\"text-align: justify;\"><img class=\"alignnone size-full wp-image-1544\" alt=\"Page - Startups - Key sectors graphic 5\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Startups-Key-sectors-graphic-5.jpg\" width=\"700\" height=\"270\" /></p>\n\n<h4 style=\"text-align: justify;\">Indonesia\'s startups are currently developing a range of E-commerce, mobile, social media, digital content and entertainment offerings, with a focus on ideas that are based on sustainable business models. While the largest investments early in 2012 went into broad-based E-commerce sites, more recent investments have been focused on E-Commerce verticals, mobile apps, and services that leverage social connections.</h4>\n<h5 style=\"text-align: justify;\">Increasing levels of startup innovation</h5>\n<p style=\"text-align: justify;\">A clear sign of the maturing tech sector in Indonesia is the move away from cloning foreign websites that characterised the initial internet growth spurt in 2010 and 2011, and the increasing number of services that are clearly aimed at particular customer needs in Indonesia. Case in point: Saqina\'s new Pinterest-flavoured website specialising in muslim women\'s fashions.</p>\n<p style=\"text-align: justify;\">Below is a categorisation of the various startups which have been funded since the start of 2012, together with the types of startups which are currently being incubated by the various accelerators, incubators and early-stage funds in Indonesia.\n<code></code></p>\n<a href=\"http://redwing-asia.com/startups/key-startup-sectors/attachment/page-startups-key-sectors-table/\" rel=\"attachment wp-att-1545\"><img class=\"size-full wp-image-1545 aligncenter\" alt=\"Page - Startups - Key sectors table\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Startups-Key-sectors-table.png\" width=\"650\" height=\"853\" /></a>\n<h5 style=\"text-align: justify;\">A significant number of startups exist below the radar</h5>\n<p style=\"text-align: justify;\">The table above is based on information in the public domain, yet Indonesia has always been a country where investors love to do deals on the quiet. Many startups exist in the Indonesian equivalent of stealth mode, happily building customer bases and striking partnership deals with nary a PR release in sight.</p>\n<p style=\"text-align: justify;\">In particular, there are a number of companies working on:</p>\n\n<ul style=\"text-align: justify;\">\n	<li>Various categories of B2B software</li>\n	<li>Services targeted at the huge base of feature phones</li>\n	<li>Financial services such as banking and insurance</li>\n	<li>SMS and other messaging-based services</li>\n	<li>Ad platforms for the mobile operators</li>\n	<li>Locally-oriented search engines</li>\n</ul>\n<p style=\"text-align: justify;\">These are typically funded by close-knit networks of business associates (Indonesia\'s equivalent of friends &amp; family funding), and are often able to reach a significant size before their existence becomes widely-known.</p>','Key startup sectors','','inherit','open','open','','382-revision-2','','','2013-03-14 09:24:00','2013-03-14 09:24:00','',382,'http://stage.redwing-asia.com/uncategorized/382-revision-2/',0,'revision','',0),(1891,1,'2013-03-01 09:43:00','2013-03-01 09:43:00','<img class=\"alignnone size-full wp-image-2016\" alt=\"Post - welcome to our new site graphic 3\" src=\"http://stage.redwing-asia.com/wp-content/uploads/Post-welcome-to-our-new-site-graphic-3.jpg\" width=\"700\" height=\"180\" />\r\n<p style=\"text-align: justify;\"><strong><span style=\"color: #993300;\">Welcome to Redwing\'s new website.</span></strong></p>\r\n<p style=\"text-align: justify;\">This website aims to give you a clear understanding of the tech sector in Indonesia.</p>\r\n<p style=\"text-align: justify;\">We built it because an increasing number of investors and tech companies have been approaching us recently wanting to know where the tech sector in Indonesia is going.</p>\r\n<p style=\"text-align: justify;\">It became clear to us that a broad, market-based perspective is not easy for investors to construct due to the fast-changing nature of the sector and the difficulty of sorting the wheat from the chaff if you\'re outside Indonesia.</p>\r\n<p style=\"text-align: justify;\">We also realised that the incredible potential of Indonesia\'s tech sector will be achieved far more quickly if more overseas investors enter the market to bring an extra dimension to the many talented startups being formed.</p>\r\n<p style=\"text-align: justify;\">As we say, \"Indonesia needs bridges, not valleys.\"</p>\r\n<p style=\"text-align: justify;\">So this website is our contribution to the bridge-building effort.</p>\r\n<p style=\"text-align: justify;\">We will be updating it frequently with analyses, articles and opinion pieces. We will also consolidate the most relevant news items each week to provide a quick overview of the latest happenings in the Indonesian tech sector.</p>\r\n<p style=\"text-align: justify;\">Our aim is to help both investors and startups build stronger, faster-growing and more successful businesses. We trust that\'s your aim, too.</p>\r\n<p style=\"text-align: justify;\"><strong><span style=\"color: #993300;\">Yours,</span></strong></p>\r\n<p style=\"text-align: justify;\"><strong><span style=\"color: #993300;\">The Redwing Team</span></strong></p>','Welcome to Redwing\'s new website','','publish','open','open','','welcome-to-redwing-asias-website','','','2013-03-17 17:06:32','2013-03-17 17:06:32','',0,'http://stage.redwing-asia.com/?p=1891',0,'post','',0),(1892,1,'2013-03-14 09:42:43','2013-03-14 09:42:43','','Welcome to Redwing Asia\'s website','','inherit','open','open','','1891-revision','','','2013-03-14 09:42:43','2013-03-14 09:42:43','',1891,'http://stage.redwing-asia.com/uncategorized/1891-revision/',0,'revision','',0),(1893,1,'2013-03-14 09:43:00','2013-03-14 09:43:00','Welcome to our new website.','Welcome to Redwing Asia\'s website','','inherit','open','open','','1891-revision-2','','','2013-03-14 09:43:00','2013-03-14 09:43:00','',1891,'http://stage.redwing-asia.com/uncategorized/1891-revision-2/',0,'revision','',0),(1896,1,'2013-02-13 07:20:12','2013-02-13 07:20:12','<p style=\"text-align: justify;\"><img class=\"alignnone size-full wp-image-1456\" alt=\"Page - Market Data - internet graphic 3\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Market-Data-internet-graphic-3.jpg\" width=\"700\" height=\"270\" /></p>\n\n<h4 style=\"text-align: justify;\">The internet market in Indonesia is now in a rapid growth phase, driven on the demand side by increasing middle class wealth and driven on the supply side by the intense focus of the mobile operators on increasing data subscribers. This is a mobile-first market: of the 125 million internet users forecast in 2015, the vast majority will only ever access the internet via their smartphone, tablet or - even in 2015 - their feature phone.</h4>\n<h5 style=\"text-align: justify;\"><b>70 million new internet users by 2015</b></h5>\n<p style=\"text-align: justify;\">Growth in Indonesia’s internet sector is accelerating, with consensus forecasts predicting that the number of internet users will grow from 55 million in 2012 to 125 million in 2015. So from a user base that is already larger than Korea\'s, the growth rate in Indonesia will exceed 30% per annum for the next five years.</p>\n<p style=\"text-align: justify;\">Three key fundamentals underpin the coming sustained period of growth:</p>\n\n<ul style=\"text-align: justify;\">\n	<li>Economic growth is robust and consistent at around 6% per year, and personal spending levels are currently rising by over 10% per year.</li>\n	<li>The middle class in Indonesia is growing rapidly, bringing with it strong demand for technology devices and online services.</li>\n	<li>Intense competition between the mobile companies is pushing prices down and also raising consumer awareness through mass market advertising campaigns.</li>\n</ul>\n<h5 style=\"text-align: justify;\"><b>Upside scenario of 150 million users by 2015</b></h5>\n<p style=\"text-align: justify;\">Even so, we believe most market forecasts are underestimating future growth, and are not taking into account two of the key dynamics of the Indonesian market – that growth suddenly accelerates when key price points are achieved, and that the mobile operators are going to push mobile data like crazy as one of the few ways they can achieve sustained revenue growth.</p>\n<p style=\"text-align: justify;\">We therefore believe that there is a high probability of an upside scenario, with the internet user base reaching 149 million users by 2015:</p>\n<img class=\"size-full wp-image-1192 aligncenter\" alt=\"Page - Market Data - internet chart 2\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Market-Data-internet-chart-2.jpg\" width=\"650\" height=\"371\" />\n<p style=\"text-align: justify;\">Supporting the argument that Indonesia’s potential is currently being under-called are the higher internet penetration rates in other countries around the region. So while Indonesia currently stands at 24%, the Philippines is already at 33% and Vietnam at 56%. Even if Indonesia reaches the 150 million internet users of the upside forecasts, that would still be below Vietnam’s penetration rate today.</p>\n\n<h5 style=\"text-align: justify;\"><b>Positive changes in user demographics</b></h5>\n<p style=\"text-align: justify;\">Not only is the user base growing rapidly, the profile of the typical internet user is changing too. Within the user base, a big shift in the age of users is currently underway. Traditionally the internet base in Indonesia has been dominated by the under-25s, leading to music, entertainment and social media being the most popular uses.</p>\n<p style=\"text-align: justify;\">Starting in 2011 the 25-50 age group begin to play catch-up, and has grown so quickly over the past two years that the user base is now relatively evenly spread across all age groups. This has led to the rapid expansion of more lucrative online services such as e-commerce, travel services and online banking.</p>\n\n<h5 style=\"text-align: justify;\"><b>It’s not all about the high spenders\n</b></h5>\n<p style=\"text-align: justify;\">We are big believers in the power of market segmentation for tech companies as a means to extract maximum market value from limited early-stage resources. Indonesia has a segment than many overlook, and it happens to include more than 100 million users: internet access via mid-level mobile phones.</p>\n<p style=\"text-align: justify;\">2G and 2.5G mobile phones are still a huge chunk of the market in Indonesia (around 75% of all handsets), and many users in Indonesia use a feature phone browser to access the internet, messaging, information and entertainment services.</p>\n<p style=\"text-align: justify;\">So the internet sector is about much more than delivering digital services via broadband and 3G to PCs, laptops, smartphones and tablets. It\'s also about much more than targeting e-commerce services at credit card holders.</p>\n<p style=\"text-align: justify;\">Is there any money to be made? Ask mig33, a social network for feature phones. They have 40 million users in Indonesia with an average monthly revenue of US$3 per month.</p>\n<p style=\"text-align: justify;\">So although smartphones have quickly grown to 15% of the mobile market, it is important to recognise that there are still over 150 million feature phones in use. Many of these users are part of the middle class consumer market, and this segment represents both a large market for digital services and a very significant advertising market.</p>\n<p style=\"text-align: justify;\">We think mig33 won\'t be the only US$100m+ company in the lower levels of Indonesia\'s very large pyramid.</p>\n\n<h6>Sources: World Bank, IMF, Brookings Institute, Frost &amp; Sullivan, IDC, ITU, Business Monitor International, McKinsey Global Institute, Social Bakers, Semiocast, MarkPlus</h6>','Indonesia\'s internet market','','inherit','open','open','','260-revision','','','2013-02-13 07:20:12','2013-02-13 07:20:12','',260,'http://stage.redwing-asia.com/uncategorized/260-revision/',0,'revision','',0),(1897,1,'2013-03-14 10:04:48','2013-03-14 10:04:48','<p style=\"text-align: justify;\"><img class=\"alignnone size-full wp-image-1456\" alt=\"Page - Market Data - internet graphic 3\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Market-Data-internet-graphic-3.jpg\" width=\"700\" height=\"270\" /></p>\n\n<h4 style=\"text-align: justify;\">The internet market in Indonesia is now in a rapid growth phase, driven on the demand side by increasing middle class wealth and driven on the supply side by the intense focus of the mobile operators on increasing data subscribers. This is a mobile-first market: of the 125 million internet users forecast in 2015, the vast majority will only ever access the internet via their smartphone, tablet or - even in 2015 - their feature phone.</h4>\n<h5 style=\"text-align: justify;\"><b>70 million new internet users by 2015</b></h5>\n<p style=\"text-align: justify;\">Growth in Indonesia’s internet sector is accelerating, with consensus forecasts predicting that the number of internet users will grow from 55 million in 2012 to 125 million in 2015. So from a user base that is already larger than Korea\'s, the growth rate in Indonesia will exceed 30% per annum for the next five years.</p>\n<p style=\"text-align: justify;\">Three key fundamentals underpin the coming sustained period of growth:</p>\n\n<ul style=\"text-align: justify;\">\n	<li>Economic growth is robust and consistent at around 6% per year, and personal spending levels are currently rising by over 10% per year.</li>\n	<li>The middle class in Indonesia is growing rapidly, bringing with it strong demand for technology devices and online services.</li>\n	<li>Intense competition between the mobile companies is pushing prices down and also raising consumer awareness through mass market advertising campaigns.</li>\n</ul>\n<h5 style=\"text-align: justify;\"><b>Upside scenario of 150 million users by 2015</b></h5>\n<p style=\"text-align: justify;\">Even so, we believe most market forecasts are underestimating future growth, and are not taking into account two of the key dynamics of the Indonesian market – that growth suddenly accelerates when key price points are achieved, and that the mobile operators are going to push mobile data like crazy as one of the few ways they can achieve sustained revenue growth.</p>\n<p style=\"text-align: justify;\">We therefore believe that there is a high probability of an upside scenario, with the internet user base reaching 149 million users by 2015:</p>\n<img class=\"size-full wp-image-1192 aligncenter\" alt=\"Page - Market Data - internet chart 2\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Market-Data-internet-chart-2.jpg\" width=\"650\" height=\"371\" />\n<p style=\"text-align: justify;\">Supporting the argument that Indonesia’s potential is currently being under-called are the higher internet penetration rates in other countries around the region. So while Indonesia currently stands at 24%, the Philippines is already at 33% and Vietnam at 56%. Even if Indonesia reaches the 150 million internet users of the upside forecasts, that would still be below Vietnam’s penetration rate today.</p>\n\n<h5 style=\"text-align: justify;\"><b>Positive changes in user demographics</b></h5>\n<p style=\"text-align: justify;\">Not only is the user base growing rapidly, the profile of the typical internet user is changing too. Within the user base, a big shift in the age of users is currently underway. Traditionally the internet base in Indonesia has been dominated by the under-25s, leading to music, entertainment and social media being the most popular uses.</p>\n<p style=\"text-align: justify;\">Starting in 2011 the 25-50 age group begin to play catch-up, and has grown so quickly over the past two years that the user base is now relatively evenly spread across all age groups. This has led to the rapid expansion of more lucrative online services such as e-commerce, travel services and online banking.</p>\n\n<h5 style=\"text-align: justify;\"><b>It’s not all about the high spenders\n</b></h5>\n<p style=\"text-align: justify;\">We are big believers in the power of market segmentation for tech companies as a means to extract maximum market value from limited early-stage resources. Indonesia has a segment than many overlook, and it happens to include more than 100 million users: internet access via mid-level mobile phones.</p>\n<p style=\"text-align: justify;\">2G and 2.5G mobile phones are still a huge chunk of the market in Indonesia (around 75% of all handsets), and many users in Indonesia use a feature phone browser to access the internet, messaging, information and entertainment services.</p>\n<p style=\"text-align: justify;\">So the internet sector is about much more than delivering digital services via broadband and 3G to PCs, laptops, smartphones and tablets. It\'s also about much more than targeting e-commerce services at credit card holders.</p>\n<p style=\"text-align: justify;\">Is there any money to be made? Ask mig33, a social network for feature phones. They have 40 million users in Indonesia with an average monthly revenue of US$3 per month.</p>\n<p style=\"text-align: justify;\">So although smartphones have quickly grown to 15% of the mobile market, it is important to recognise that there are still over 150 million feature phones in use. Many of these users are part of the middle class consumer market, and this segment represents both a large market for digital services and a very significant advertising market.</p>\n<p style=\"text-align: justify;\">We think mig33 won\'t be the only US$100m+ company in the lower levels of Indonesia\'s very large pyramid.</p>\n\n<h6>Sources: World Bank, IMF, Brookings Institute, Frost &amp; Sullivan, IDC, ITU, Business Monitor International, McKinsey Global Institute, Social Bakers, Semiocast, MarkPlus</h6>','Indonesia\'s internet market','','inherit','open','open','','260-autosave','','','2013-03-14 10:04:48','2013-03-14 10:04:48','',260,'http://stage.redwing-asia.com/uncategorized/260-autosave/',0,'revision','',0),(1898,1,'2013-03-14 10:00:04','2013-03-14 10:00:04','<p style=\"text-align: justify;\"><img class=\"alignnone size-full wp-image-1456\" alt=\"Page - Market Data - internet graphic 3\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Market-Data-internet-graphic-3.jpg\" width=\"700\" height=\"270\" /></p>\r\n\r\n<h4 style=\"text-align: justify;\">The internet market in Indonesia is now in a rapid growth phase, driven on the demand side by increasing middle class wealth and driven on the supply side by the intense focus of the mobile operators on increasing data subscribers. This is a mobile-first market: of the 125 million internet users forecast in 2015, the vast majority will only ever access the internet via their smartphone, tablet or - even in 2015 - their feature phone.</h4>\r\n<h5 style=\"text-align: justify;\"><b>70 million new internet users by 2015</b></h5>\r\n<p style=\"text-align: justify;\">Growth in Indonesia’s internet sector is accelerating, with consensus forecasts predicting that the number of internet users will grow from 55 million in 2012 to 125 million in 2015. So from a user base that is already larger than Korea\'s, the growth rate in Indonesia will exceed 30% per annum for the next five years.</p>\r\n<p style=\"text-align: justify;\">Three key fundamentals underpin the coming sustained period of growth:</p>\r\n\r\n<ul style=\"text-align: justify;\">\r\n	<li>Economic growth is robust and consistent at around 6% per year, and personal spending levels are currently rising by over 10% per year.</li>\r\n	<li>The middle class in Indonesia is growing rapidly, bringing with it strong demand for technology devices and online services.</li>\r\n	<li>Intense competition between the mobile companies is pushing prices down and also raising consumer awareness through mass market advertising campaigns.</li>\r\n</ul>\r\n<h5 style=\"text-align: justify;\"><b>Upside scenario of 150 million users by 2015</b></h5>\r\n<p style=\"text-align: justify;\">Even so, we believe most market forecasts are underestimating future growth, and are not taking into account two of the key dynamics of the Indonesian market – that growth suddenly accelerates when key price points are achieved, and that the mobile operators are going to push mobile data like crazy as one of the few ways they can achieve sustained revenue growth.</p>\r\n<p style=\"text-align: justify;\">We therefore believe that there is a high probability of an upside scenario, with the internet user base reaching 149 million users by 2015:</p>\r\n<img class=\"size-full wp-image-1192 aligncenter\" alt=\"Page - Market Data - internet chart 2\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Market-Data-internet-chart-2.jpg\" width=\"650\" height=\"371\" />\r\n<p style=\"text-align: justify;\">Supporting the argument that Indonesia’s potential is currently being under-called are the higher internet penetration rates in other countries around the region. So while Indonesia currently stands at 24%, the Philippines is already at 33% and Vietnam at 56%. Even if Indonesia reaches the 150 million internet users of the upside forecasts, that would still be below Vietnam’s penetration rate today.</p>\r\n\r\n<h5 style=\"text-align: justify;\"><b>Positive changes in user demographics</b></h5>\r\n<p style=\"text-align: justify;\">Not only is the user base growing rapidly, the profile of the typical internet user is changing too. Within the user base, a big shift in the age of users is currently underway. Traditionally the internet base in Indonesia has been dominated by the under-25s, leading to music, entertainment and social media being the most popular uses.</p>\r\n<p style=\"text-align: justify;\">Starting in 2011 the 25-50 age group begin to play catch-up, and has grown so quickly over the past two years that the user base is now relatively evenly spread across all age groups. This has led to the rapid expansion of more lucrative online services such as e-commerce, travel services and online banking.</p>\r\n\r\n<h5 style=\"text-align: justify;\"><b>It’s not all about the high spenders\r\n</b></h5>\r\n<p style=\"text-align: justify;\">We are big believers in the power of market segmentation for tech companies as a means to extract maximum market value from limited early-stage resources. Indonesia has a segment than many overlook, and it happens to include more than 100 million users: internet access via mid-level mobile phones.</p>\r\n<p style=\"text-align: justify;\">2G and 2.5G mobile phones are still a huge chunk of the market in Indonesia (around 75% of all handsets), and many users in Indonesia use a feature phone browser to access the internet, messaging, information and entertainment services.</p>\r\n<p style=\"text-align: justify;\">So the internet sector is about much more than delivering digital services via broadband and 3G to PCs, laptops, smartphones and tablets. It\'s also about much more than targeting e-commerce services at credit card holders.</p>\r\n<p style=\"text-align: justify;\">Is there any money to be made? Ask mig33, a social network for feature phones. They have 40 million users in Indonesia with an average monthly revenue of US$3 per month.</p>\r\n<p style=\"text-align: justify;\">So although smartphones have quickly grown to 15% of the mobile market, it is important to recognise that there are still over 150 million feature phones in use. Many of these users are part of the middle class consumer market, and this segment represents both a large market for digital services and a very significant advertising market.</p>\r\n<p style=\"text-align: justify;\">We think mig33 won\'t be the only US$100m+ company in the lower levels of Indonesia\'s very large pyramid.</p>\r\n\r\n<h6>Sources: World Bank, IMF, Brookings Institute, Frost &amp; Sullivan, IDC, ITU, Business Monitor International, McKinsey Global Institute, Social Bakers, Semiocast, MarkPlus</h6>','Indonesia\'s internet market','','inherit','open','open','','260-revision-2','','','2013-03-14 10:00:04','2013-03-14 10:00:04','',260,'http://stage.redwing-asia.com/uncategorized/260-revision-2/',0,'revision','',0),(1900,1,'2013-03-14 09:43:16','2013-03-14 09:43:16','Welcome to our new website.','Welcome to Redwing Asia\'s website','','inherit','closed','open','','1891-revision-3','','','2013-03-14 09:43:16','2013-03-14 09:43:16','',1891,'http://stage.redwing-asia.com/uncategorized/1891-revision-3/',0,'revision','',0),(1904,1,'2013-03-14 09:23:33','2013-03-14 09:23:33','<img class=\"alignnone size-full wp-image-1496\" alt=\"Page - Market Data - Regional comparisons graphic 2\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Market-Data-Regional-comparisons-graphic-2.jpg\" width=\"750\" height=\"270\" />\n<h4 style=\"text-align: justify;\">By 2015, the number of internet users in China, India and Indonesia will have pulled far ahead of the other developing Asian countries, driven in large part by their huge populations. Indonesia\'s mobile-first dynamic mean that usage habits differ from its two larger cousins, both of which are more PC-oriented. Looking into the future, there is a strong case for the internet sector in Indonesia growing at a compounded 25% rate for the next TWO decades.</h4>\n<h5 style=\"text-align: justify;\">As many internet users as Vietnam, Thailand, Malaysia and the Philippines <span style=\"text-decoration: underline;\">combined</span></h5>\n<p style=\"text-align: justify;\">For a crystal clear example of the way Indonesia will dominate the ASEAN region in the coming years, take a look at the forecasts for the internet user base in 2015. With 125 million users, Indonesia will have as many people using the internet as the next four largest ASEAN countries combined.</p>\n<img class=\"size-full wp-image-1497 aligncenter\" alt=\"Page - Market Data - Regional internet penetration chart 5\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Market-Data-Regional-internet-penetration-chart-5.png\" width=\"650\" height=\"592\" />\n<p style=\"text-align: justify;\">While penetration will lag Malaysia (with its higher GDP per capita) and Vietnam (with strong government IT policies and a much easier geography to connect to the internet), it will significantly exceed both Thailand and the Philippines. Indonesia also, by the way, is on course to have a higher internet penetration level than China.</p>\n\n<h5 style=\"text-align: justify;\">Different usage habits, different access methods</h5>\n<p style=\"text-align: justify;\">Two things are notable in an analysis of regional usage habits - Indonesians access the web via their mobile phones much more than those in other countries, and they spend less time online per week.</p>\n<p style=\"text-align: center;\"><img class=\"size-full wp-image-1027 aligncenter\" alt=\"Page - Analysis - Regional hours online and mobile access charts\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Analysis-Regional-hours-online-and-mobile-access-charts.png\" width=\"650\" height=\"285\" /></p>\n<p style=\"text-align: justify;\">We believe the two factors are related, since statistics around the world show that people spend less time online when they access the internet from a smaller screen. But there is also a cultural effect, since one common Indonesian trait is to do frequent, short bursts of online activity - witness the rapid growth of SMS and Blackberry Messenger on mobile phones, and the emerging growth of Twitter over Facebook.</p>\n\n<h5 style=\"text-align: justify;\">And a last thought on the size of Indonesia\'s internet economy</h5>\nThe internet economy in Indonesia is currently estimated to be about 1.6% of GDP, a number which indicates the share of Indonesia’s economic output that can be directly attributed to the Internet. For comparison, the UK\'s internet economy is currently estimated at 7.3% of GDP.\n\nBy 2030, Indonesia is forecast to have a larger economy than the UK. Given the rate of technological progress, it could conservatively be assumed that by 2030 the internet economy in Indonesia will be at least 7% of GDP.\n\nThese assumptions suggest that the internet economy in Indonesia will grow from US$13 billion today to US$657 billion in 2030, representing a sustained average growth rate of almost 25% for the next 17 years.\n\n<em>That</em> is a market worth investing in.\n<h6>Sources: ITU, Frost &amp; Sullivan, Nielsen, McKinsey Global Institute,Standard Chartered, eMarketer, Deloitte, Bank Indonesia, Gartner.</h6>\n&nbsp;','Regional comparisons','','inherit','closed','open','','73-revision-2','','','2013-03-14 09:23:33','2013-03-14 09:23:33','',73,'http://stage.redwing-asia.com/uncategorized/73-revision-2/',0,'revision','',0),(1905,1,'2013-03-14 09:23:24','2013-03-14 09:23:24','<p style=\"text-align: justify;\"><img class=\"alignnone size-full wp-image-1483\" alt=\"Page - Market Data - user trends graphic 3\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Market-Data-user-trends-graphic-3.jpg\" width=\"700\" height=\"270\" /></p>\n\n<h4 style=\"text-align: justify;\">As you\'d expect in a country where the average age is 28, the typical Indonesian internet user is a young, tech-savvy city dweller. So it\'s a surprise to learn that the most rapid growth in internet users is currently coming from the 30+ age groups and the secondary cities. We believe this is great, great news for tech investors. Because it means the market is rapidly moving away from its past obsession with social media chatting and simple free entertainment, and moving towards e-commerce, paid online content and B2B services.</h4>\n<h5 style=\"text-align: justify;\">Moving away from a user base which was simply too young</h5>\n<p style=\"text-align: justify;\">Five years ago, Indonesia\'s mobile and internet markets were dominated by the under-25s. Energetic and talkative, they made Indonesia the social media capital of the world. The problem was, they didn\'t spend much money online, in large part because most under-25s don\'t have much money to spend.</p>\n<p style=\"text-align: justify;\">Wind the clock forwards and the picture is changing rapidly. The fastest-growing age group in terms of internet adoption over the past three years has been the 35-39 year-olds. The second fastest-growing group was the 30-34 year-olds. Wealthier, busier, and with businesses to run and families to manage, they place more value on the convenience that the internet offers and have a higher ability to pay for services. The rapid rise of startups such as home food delivery and e-commerce verticals is a direct result of this user base trend.</p>\n<p style=\"text-align: center;\"><img class=\"size-full wp-image-955 aligncenter\" alt=\"Page - Market data user profiles age groups chart 4\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Market-data-user-profiles-age-groups-chart-4.png\" width=\"650\" height=\"371\" /></p>\n<p style=\"text-align: justify;\">This spreading-out of the user base is evident in other areas too. While penetration is highest in the A social class, the fastest growth is currently occurring in the C social class, and the ABC social classes are now fairly evenly represented in the overall user base. From a gender perspective, more men use the internet each month than women, but the higher growth rates are among the female age groups.</p>\n\n<h5 style=\"text-align: justify;\">Two clear usage segments emerging</h5>\n<p style=\"text-align: justify;\">As the composition of the user base evolves, two clear usage segments are emerging. One is older (25+) and wealthier, with a primary focus on gaining utility from the internet - we call these the Utility Users. The other is younger with less disposable income, and has a primary focus on finding entertainment on the internet - we\'ve named them the Entertainment Users.</p>\n<p style=\"text-align: justify;\">Here is one example of how the two segments clearly differ in their behaviour:</p>\n<p style=\"text-align: center;\"><img class=\"size-full wp-image-963 aligncenter\" alt=\"Page - Market data user profiles usage location chart 2\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Market-data-user-profiles-usage-location-chart-2.png\" width=\"650\" height=\"262\" /></p>\n<p style=\"text-align: justify;\">The older, wealthier Utility Users primarily use the internet from home, and secondarily from their office. The Entertainment Users are very different, and still make heavy use of <em>Wartels</em> (public internet cafes). Beyond this graph, further statistics show that the Utility Users also access the internet through different devices: primarily desktops and laptops, then smartphones. The Entertainment Users mainly access the internet through feature phones.</p>\n<p style=\"text-align: justify;\">A second striking difference is in <span style=\"text-decoration: underline;\">what</span> they access on the internet:</p>\n<p style=\"text-align: center;\"><img class=\"size-full wp-image-1204 aligncenter\" alt=\"Page - Market data user profiles top topics chart 6\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Market-data-user-profiles-top-topics-chart-6.png\" width=\"654\" height=\"198\" /></p>\n<p style=\"text-align: justify;\">While social networking appears near the top of both lists (Indonesians <em>really are</em> some of the most sociable people on earth), the Utility Users are also heavy users of typical productivity services such as email and news portals.</p>\n\n<h5 style=\"text-align: justify;\">Why does all this matter?</h5>\n<p style=\"text-align: justify;\">One of the most common (and one of the biggest) errors that new investors make in Indonesia is to think of the country as a market of 240 million people. It\'s not - it\'s a huge market made up of different segments with distinct needs and behaviours (with the above two segments merely representing a high-level simplification of a much richer picture).</p>\n<p style=\"text-align: justify;\">For a startup tech company with a limited number of people and limited marketing budgets, trying to target the whole of Indonesia at once can be suicidal.</p>\n<p style=\"text-align: justify;\">Launching a new internet company is all about focus, and that has to start with selecting a slice of the market where the planned service is most likely to thrive. Segmenting the users by demographics and behaviour is a first step. A geographic filter is a often second. More sophisticated usage habits and psychographic variables can be third. These all go towards building an actionable view of the market from which post-launch changes and pivots can be made.</p>\n<p style=\"text-align: justify;\">The bottom line: by understanding user trends, investors can get a better return on every single dollar they put in to a tech startup.</p>\n\n<h6>Sources: Nielsen, University of Indonesia, Statistics Indonesia, Yahoo/TNS, World Bank, Veritrans.</h6>','User trends','','inherit','closed','open','','352-revision-2','','','2013-03-14 09:23:24','2013-03-14 09:23:24','',352,'http://stage.redwing-asia.com/uncategorized/352-revision-2/',0,'revision','',0),(1906,1,'2013-03-14 09:23:43','2013-03-14 09:23:43','<img class=\"alignnone size-full wp-image-1154\" alt=\"Page - Investors - Timeline of investments graphic 2\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Investors-Timeline-of-investments-graphic-2.jpg\" width=\"700\" height=\"270\" />\n\n<img class=\"size-full wp-image-1507 aligncenter\" alt=\"Page - Investors - Timeline of investments chart 4\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Investors-Timeline-of-investments-chart-4.png\" width=\"640\" height=\"3072\" />\n<h6><span style=\"color: #888888;\">Redwing strives for accuracy in its company analyses - if there are any details you would like to add to this analysis please contact us here.</span></h6>','Timeline of investments','','inherit','closed','open','','287-revision-2','','','2013-03-14 09:23:43','2013-03-14 09:23:43','',287,'http://stage.redwing-asia.com/uncategorized/287-revision-2/',0,'revision','',0),(1907,1,'2013-03-14 09:23:50','2013-03-14 09:23:50','<img class=\"alignnone size-full wp-image-1511\" alt=\"Page - Investors - Types of investors graphic 3\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Investors-Types-of-investors-graphic-3.jpg\" width=\"700\" height=\"270\" />\n<h4 style=\"text-align: justify;\">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>\n<h5 style=\"text-align: justify;\"><b>A broad range of investors that fall into five distinct categories</b></h5>\n<p style=\"text-align: justify;\">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:</p>\n\n<ul style=\"text-align: justify;\">\n	<li>Early-stage funds (incubators, angels and seed funds, which can be local or foreign)</li>\n	<li>Growth-stage funds (local or foreign)</li>\n	<li>Foreign .coms and technology companies (primarily from Japan, the US and Europe)</li>\n	<li>Local corporates and conglomerates</li>\n	<li>Local mobile operators</li>\n</ul>\n<p style=\"text-align: justify;\">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:</p>\n<p style=\"text-align: center;\"><img class=\"size-full wp-image-777 aligncenter\" alt=\"Page - Investors - Types of investors categories 2\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Investors-Types-of-investors-categories-2.jpg\" width=\"650\" height=\"356\" /></p>\n<p style=\"text-align: justify;\">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.</p>\n\n<h5 style=\"text-align: justify;\"><b>How each investor group has performed to date in Indonesia</b></h5>\n<p style=\"text-align: justify;\">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.</p>\n<p style=\"text-align: justify;\">The <b><i>early-stage funds</i></b> have been very active for the past three years, led by East Ventures which has made 18 investments in Indonesia. This is currently the sweet spot for investing in the Indonesian tech sector, which reflects the relatively early stage of the industry</p>\n<p style=\"text-align: justify;\">The <b><i>growth-stage funds</i></b> are looking for tech firms with an existing track record and who are seeking funding to expand an already-proven service offering. Only a handful of tech companies fit this profile at the moment, so the activity level of the growth-stage funds is relatively low. It will pick up significantly over the next two years as the early-stage funds seek to move their investments into Series B and Series C funding rounds.</p>\n<p style=\"text-align: justify;\">The early-stage and growth-stage funds are mainly headquartered in Indonesia, Singapore and Japan.</p>\n<p style=\"text-align: justify;\">The <b><i>foreign .coms and technology companies</i></b> take one of three investment approaches: they form a JV with a local Indonesian company, they acquire an existing tech company, or they invest directly into their own local subsidiary by bringing in expat executives and hiring local employees. Investments by Yahoo, Groupon and LivingSocial have underperformed (although the underperformance has been more on the side of the acquirers rather than the Indonesian companies), while later investments by Google, eBay, Rocket Internet and a number of Japanese tech companies are still in their early stages.</p>\n<p style=\"text-align: justify;\">The <b><i>local corporates and conglomerates</i></b> who have been active to date have mainly been media companies, and have tended to make 100% acquisitions of relatively mature internet properties. Their acquisitions have largely been successful to date, enabling them to expand into digital media and defend against future competition. Note also that a number of Indonesian conglomerates have set up their own incubators and early-stage funds to explore opportunities with younger startups.</p>\n<p style=\"text-align: justify;\">The <em><strong>mobile operators</strong></em> have started a variety of incubator and accelerator initiatives, using these as a way to discover new talent. But the greater part of their resources has focused on expanding their own service platforms and billing systems to enable tech companies to deliver services to the mobile customer base. So it is important to understand while the operators are not the largest direct investors in the tech sector, in the Indonesian market they are amongst the most powerful influences that affect where startup opportunities exist.</p>\n\n<h5 style=\"text-align: justify;\"><b>Staged investments leading to successful exits are possible</b></h5>\n<p style=\"text-align: justify;\">The standard investment route for startups is now in place in Indonesia, with a number of companies in the process of moving through the stages of Seed → Series A → Series B → Exit acquisition. East Ventures has been the most successful investor to date, having achieved exits via the sale of Disdus to Groupon and Urbanesia to Kompas, as well as bringing later-stage investors into Tokopedia.</p>\n<p style=\"text-align: justify;\">This staged process will only expand over the coming years, both in scale and speed, in response to the demand from larger investors for large-scale acquisitions. The Indonesian conglomerates have woken up to the opportunities in the internet sector, as have the foreign tech companies, the Japanese in particular. As the tech sector as a whole continues to mature, Indonesia will develop a smoother and larger-scale process to take young startups up to scale and eventual exit.</p>\n\n<h6 style=\"text-align: justify;\">Sources: Wall Street Journal Asia, Jakarta Globe, e27, Daily Social, TechInAsia, TheNextWeb, sge, TechCrunch, East Ventures, Telkomsel, Yahoo, MNC</h6>','Types of investors','','inherit','closed','open','','748-revision-2','','','2013-03-14 09:23:50','2013-03-14 09:23:50','',748,'http://stage.redwing-asia.com/uncategorized/748-revision-2/',0,'revision','',0),(1908,1,'2013-03-14 09:24:08','2013-03-14 09:24:08','<img class=\"alignnone size-full wp-image-1548\" alt=\"Page - Startups - Key players graphic 3\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Startups-Key-players-graphic-3.jpg\" width=\"700\" height=\"270\" />\n<h4 style=\"text-align: justify;\">Indonesian sites are growing quickly: out of the 50 most-visited sites in Indonesia, 22 are local sites, compared to just 12 sites a year ago. But they\'re not there yet: foreign-based sites still hold the top five places. News and entertainment portals continue to attract large volumes of traffic, but the e-commerce category is growing quickly, with three e-commerce markets and two payment platforms now in the top 50. Outside the top 50, a broad range of newer ventures are still going through their early funding stages, and are therefore potential near-term investment targets.</h4>\n<h5 style=\"text-align: justify;\">Foreign sites head the list, but local sites are gaining</h5>\nGoogle leads in Indonesia, followed by the usual suspects in the top 5 (apart from the somewhat surprising blogspot.com...Indonesians are addicted to blogging as well as social media).\n\nAmong the 22 Indonesian sites in Alexa\'s top 50 ranking, Detik and Kompas are still in the top 3, but sites oriented towards e-commerce are rising rapidly.\n<p style=\"text-align: justify;\"><img class=\"alignnone size-full wp-image-1017\" alt=\"Page - Startups - Top sites table 2\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Startups-Top-sites-table-2.jpg\" width=\"381\" height=\"786\" /></p>\n\n<h5 style=\"text-align: justify;\">Investment targets exist in almost all internet segments</h5>\n<p style=\"text-align: justify;\">Below is our list of all the major investment transactions in Indonesia\'s tech sector between 2010 and 2012, indicating the year of the transaction and the type of funding. (Please note that no firm definitions of funding stages yet exist in Indonesia, so the terms \'Seed\', \'Round 1\', etc. are mainly indicative of the funding round sequence, and not necessarily the amount invested.)</p>\n<a href=\"http://redwing-asia.com/startups/key-players/attachment/page-startups-key-players-table-4/\" rel=\"attachment wp-att-1549\"><img class=\"alignnone size-full wp-image-1549\" alt=\"Page - Startups - Key players table 4\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Startups-Key-players-table-4.png\" width=\"697\" height=\"2768\" /></a>\n<h6><span style=\"color: #888888;\">Redwing strives for accuracy in its company analyses - if there are any details you would like to add to this analysis please contact us here.</span></h6>','Key players','','inherit','closed','open','','164-revision-2','','','2013-03-14 09:24:08','2013-03-14 09:24:08','',164,'http://stage.redwing-asia.com/uncategorized/164-revision-2/',0,'revision','',0),(1909,1,'2013-03-12 11:51:57','2013-03-12 11:51:57','','Successes, failures, and the reasons why','','inherit','closed','open','','1802-revision','','','2013-03-12 11:51:57','2013-03-12 11:51:57','',1802,'http://stage.redwing-asia.com/uncategorized/1802-revision/',0,'revision','',0),(1910,1,'2013-03-14 13:06:27','2013-03-14 13:06:27','<img class=\"alignnone size-full wp-image-1154\" alt=\"Page - Investors - Timeline of investments graphic 2\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Investors-Timeline-of-investments-graphic-2.jpg\" width=\"700\" height=\"270\" />\n\n<img class=\"size-full wp-image-1507 aligncenter\" alt=\"Page - Investors - Timeline of investments chart 4\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Investors-Timeline-of-investments-chart-4.png\" width=\"640\" height=\"3072\" />\n<h6><span style=\"color: #888888;\">Redwing strives for accuracy in its company analyses - if there are any details you would like to add to this analysis please contact us here.</span></h6>','Timeline of investments','','inherit','closed','open','','287-revision-3','','','2013-03-14 13:06:27','2013-03-14 13:06:27','',287,'http://stage.redwing-asia.com/uncategorized/287-revision-3/',0,'revision','',0),(1911,1,'2013-03-14 13:06:37','2013-03-14 13:06:37','<img class=\"alignnone size-full wp-image-1511\" alt=\"Page - Investors - Types of investors graphic 3\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Investors-Types-of-investors-graphic-3.jpg\" width=\"700\" height=\"270\" />\n<h4 style=\"text-align: justify;\">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>\n<h5 style=\"text-align: justify;\"><b>A broad range of investors that fall into five distinct categories</b></h5>\n<p style=\"text-align: justify;\">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:</p>\n\n<ul style=\"text-align: justify;\">\n	<li>Early-stage funds (incubators, angels and seed funds, which can be local or foreign)</li>\n	<li>Growth-stage funds (local or foreign)</li>\n	<li>Foreign .coms and technology companies (primarily from Japan, the US and Europe)</li>\n	<li>Local corporates and conglomerates</li>\n	<li>Local mobile operators</li>\n</ul>\n<p style=\"text-align: justify;\">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:</p>\n<p style=\"text-align: center;\"><img class=\"size-full wp-image-777 aligncenter\" alt=\"Page - Investors - Types of investors categories 2\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Investors-Types-of-investors-categories-2.jpg\" width=\"650\" height=\"356\" /></p>\n<p style=\"text-align: justify;\">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.</p>\n\n<h5 style=\"text-align: justify;\"><b>How each investor group has performed to date in Indonesia</b></h5>\n<p style=\"text-align: justify;\">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.</p>\n<p style=\"text-align: justify;\">The <b><i>early-stage funds</i></b> have been very active for the past three years, led by East Ventures which has made 18 investments in Indonesia. This is currently the sweet spot for investing in the Indonesian tech sector, which reflects the relatively early stage of the industry</p>\n<p style=\"text-align: justify;\">The <b><i>growth-stage funds</i></b> are looking for tech firms with an existing track record and who are seeking funding to expand an already-proven service offering. Only a handful of tech companies fit this profile at the moment, so the activity level of the growth-stage funds is relatively low. It will pick up significantly over the next two years as the early-stage funds seek to move their investments into Series B and Series C funding rounds.</p>\n<p style=\"text-align: justify;\">The early-stage and growth-stage funds are mainly headquartered in Indonesia, Singapore and Japan.</p>\n<p style=\"text-align: justify;\">The <b><i>foreign .coms and technology companies</i></b> take one of three investment approaches: they form a JV with a local Indonesian company, they acquire an existing tech company, or they invest directly into their own local subsidiary by bringing in expat executives and hiring local employees. Investments by Yahoo, Groupon and LivingSocial have underperformed (although the underperformance has been more on the side of the acquirers rather than the Indonesian companies), while later investments by Google, eBay, Rocket Internet and a number of Japanese tech companies are still in their early stages.</p>\n<p style=\"text-align: justify;\">The <b><i>local corporates and conglomerates</i></b> who have been active to date have mainly been media companies, and have tended to make 100% acquisitions of relatively mature internet properties. Their acquisitions have largely been successful to date, enabling them to expand into digital media and defend against future competition. Note also that a number of Indonesian conglomerates have set up their own incubators and early-stage funds to explore opportunities with younger startups.</p>\n<p style=\"text-align: justify;\">The <em><strong>mobile operators</strong></em> have started a variety of incubator and accelerator initiatives, using these as a way to discover new talent. But the greater part of their resources has focused on expanding their own service platforms and billing systems to enable tech companies to deliver services to the mobile customer base. So it is important to understand while the operators are not the largest direct investors in the tech sector, in the Indonesian market they are amongst the most powerful influences that affect where startup opportunities exist.</p>\n\n<h5 style=\"text-align: justify;\"><b>Staged investments leading to successful exits are possible</b></h5>\n<p style=\"text-align: justify;\">The standard investment route for startups is now in place in Indonesia, with a number of companies in the process of moving through the stages of Seed → Series A → Series B → Exit acquisition. East Ventures has been the most successful investor to date, having achieved exits via the sale of Disdus to Groupon and Urbanesia to Kompas, as well as bringing later-stage investors into Tokopedia.</p>\n<p style=\"text-align: justify;\">This staged process will only expand over the coming years, both in scale and speed, in response to the demand from larger investors for large-scale acquisitions. The Indonesian conglomerates have woken up to the opportunities in the internet sector, as have the foreign tech companies, the Japanese in particular. As the tech sector as a whole continues to mature, Indonesia will develop a smoother and larger-scale process to take young startups up to scale and eventual exit.</p>\n\n<h6 style=\"text-align: justify;\">Sources: Wall Street Journal Asia, Jakarta Globe, e27, Daily Social, TechInAsia, TheNextWeb, sge, TechCrunch, East Ventures, Telkomsel, Yahoo, MNC</h6>','Types of investors','','inherit','closed','open','','748-revision-3','','','2013-03-14 13:06:37','2013-03-14 13:06:37','',748,'http://stage.redwing-asia.com/uncategorized/748-revision-3/',0,'revision','',0),(1912,1,'2013-03-14 13:06:13','2013-03-14 13:06:13','<p style=\"text-align: justify;\"><img class=\"alignnone size-full wp-image-1483\" alt=\"Page - Market Data - user trends graphic 3\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Market-Data-user-trends-graphic-3.jpg\" width=\"700\" height=\"270\" /></p>\n\n<h4 style=\"text-align: justify;\">As you\'d expect in a country where the average age is 28, the typical Indonesian internet user is a young, tech-savvy city dweller. So it\'s a surprise to learn that the most rapid growth in internet users is currently coming from the 30+ age groups and the secondary cities. We believe this is great, great news for tech investors. Because it means the market is rapidly moving away from its past obsession with social media chatting and simple free entertainment, and moving towards e-commerce, paid online content and B2B services.</h4>\n<h5 style=\"text-align: justify;\">Moving away from a user base which was simply too young</h5>\n<p style=\"text-align: justify;\">Five years ago, Indonesia\'s mobile and internet markets were dominated by the under-25s. Energetic and talkative, they made Indonesia the social media capital of the world. The problem was, they didn\'t spend much money online, in large part because most under-25s don\'t have much money to spend.</p>\n<p style=\"text-align: justify;\">Wind the clock forwards and the picture is changing rapidly. The fastest-growing age group in terms of internet adoption over the past three years has been the 35-39 year-olds. The second fastest-growing group was the 30-34 year-olds. Wealthier, busier, and with businesses to run and families to manage, they place more value on the convenience that the internet offers and have a higher ability to pay for services. The rapid rise of startups such as home food delivery and e-commerce verticals is a direct result of this user base trend.</p>\n<p style=\"text-align: center;\"><img class=\"size-full wp-image-955 aligncenter\" alt=\"Page - Market data user profiles age groups chart 4\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Market-data-user-profiles-age-groups-chart-4.png\" width=\"650\" height=\"371\" /></p>\n<p style=\"text-align: justify;\">This spreading-out of the user base is evident in other areas too. While penetration is highest in the A social class, the fastest growth is currently occurring in the C social class, and the ABC social classes are now fairly evenly represented in the overall user base. From a gender perspective, more men use the internet each month than women, but the higher growth rates are among the female age groups.</p>\n\n<h5 style=\"text-align: justify;\">Two clear usage segments emerging</h5>\n<p style=\"text-align: justify;\">As the composition of the user base evolves, two clear usage segments are emerging. One is older (25+) and wealthier, with a primary focus on gaining utility from the internet - we call these the Utility Users. The other is younger with less disposable income, and has a primary focus on finding entertainment on the internet - we\'ve named them the Entertainment Users.</p>\n<p style=\"text-align: justify;\">Here is one example of how the two segments clearly differ in their behaviour:</p>\n<p style=\"text-align: center;\"><img class=\"size-full wp-image-963 aligncenter\" alt=\"Page - Market data user profiles usage location chart 2\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Market-data-user-profiles-usage-location-chart-2.png\" width=\"650\" height=\"262\" /></p>\n<p style=\"text-align: justify;\">The older, wealthier Utility Users primarily use the internet from home, and secondarily from their office. The Entertainment Users are very different, and still make heavy use of <em>Wartels</em> (public internet cafes). Beyond this graph, further statistics show that the Utility Users also access the internet through different devices: primarily desktops and laptops, then smartphones. The Entertainment Users mainly access the internet through feature phones.</p>\n<p style=\"text-align: justify;\">A second striking difference is in <span style=\"text-decoration: underline;\">what</span> they access on the internet:</p>\n<p style=\"text-align: center;\"><img class=\"size-full wp-image-1204 aligncenter\" alt=\"Page - Market data user profiles top topics chart 6\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Market-data-user-profiles-top-topics-chart-6.png\" width=\"654\" height=\"198\" /></p>\n<p style=\"text-align: justify;\">While social networking appears near the top of both lists (Indonesians <em>really are</em> some of the most sociable people on earth), the Utility Users are also heavy users of typical productivity services such as email and news portals.</p>\n\n<h5 style=\"text-align: justify;\">Why does all this matter?</h5>\n<p style=\"text-align: justify;\">One of the most common (and one of the biggest) errors that new investors make in Indonesia is to think of the country as a market of 240 million people. It\'s not - it\'s a huge market made up of different segments with distinct needs and behaviours (with the above two segments merely representing a high-level simplification of a much richer picture).</p>\n<p style=\"text-align: justify;\">For a startup tech company with a limited number of people and limited marketing budgets, trying to target the whole of Indonesia at once can be suicidal.</p>\n<p style=\"text-align: justify;\">Launching a new internet company is all about focus, and that has to start with selecting a slice of the market where the planned service is most likely to thrive. Segmenting the users by demographics and behaviour is a first step. A geographic filter is a often second. More sophisticated usage habits and psychographic variables can be third. These all go towards building an actionable view of the market from which post-launch changes and pivots can be made.</p>\n<p style=\"text-align: justify;\">The bottom line: by understanding user trends, investors can get a better return on every single dollar they put in to a tech startup.</p>\n\n<h6>Sources: Nielsen, University of Indonesia, Statistics Indonesia, Yahoo/TNS, World Bank, Veritrans.</h6>','User trends','','inherit','closed','open','','352-revision-3','','','2013-03-14 13:06:13','2013-03-14 13:06:13','',352,'http://stage.redwing-asia.com/uncategorized/352-revision-3/',0,'revision','',0),(1913,1,'2013-03-14 13:06:01','2013-03-14 13:06:01','<img class=\"alignnone size-full wp-image-1496\" alt=\"Page - Market Data - Regional comparisons graphic 2\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Market-Data-Regional-comparisons-graphic-2.jpg\" width=\"750\" height=\"270\" />\n<h4 style=\"text-align: justify;\">By 2015, the number of internet users in China, India and Indonesia will have pulled far ahead of the other developing Asian countries, driven in large part by their huge populations. Indonesia\'s mobile-first dynamic mean that usage habits differ from its two larger cousins, both of which are more PC-oriented. Looking into the future, there is a strong case for the internet sector in Indonesia growing at a compounded 25% rate for the next TWO decades.</h4>\n<h5 style=\"text-align: justify;\">As many internet users as Vietnam, Thailand, Malaysia and the Philippines <span style=\"text-decoration: underline;\">combined</span></h5>\n<p style=\"text-align: justify;\">For a crystal clear example of the way Indonesia will dominate the ASEAN region in the coming years, take a look at the forecasts for the internet user base in 2015. With 125 million users, Indonesia will have as many people using the internet as the next four largest ASEAN countries combined.</p>\n<img class=\"size-full wp-image-1497 aligncenter\" alt=\"Page - Market Data - Regional internet penetration chart 5\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Market-Data-Regional-internet-penetration-chart-5.png\" width=\"650\" height=\"592\" />\n<p style=\"text-align: justify;\">While penetration will lag Malaysia (with its higher GDP per capita) and Vietnam (with strong government IT policies and a much easier geography to connect to the internet), it will significantly exceed both Thailand and the Philippines. Indonesia also, by the way, is on course to have a higher internet penetration level than China.</p>\n\n<h5 style=\"text-align: justify;\">Different usage habits, different access methods</h5>\n<p style=\"text-align: justify;\">Two things are notable in an analysis of regional usage habits - Indonesians access the web via their mobile phones much more than those in other countries, and they spend less time online per week.</p>\n<p style=\"text-align: center;\"><img class=\"size-full wp-image-1027 aligncenter\" alt=\"Page - Analysis - Regional hours online and mobile access charts\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Analysis-Regional-hours-online-and-mobile-access-charts.png\" width=\"650\" height=\"285\" /></p>\n<p style=\"text-align: justify;\">We believe the two factors are related, since statistics around the world show that people spend less time online when they access the internet from a smaller screen. But there is also a cultural effect, since one common Indonesian trait is to do frequent, short bursts of online activity - witness the rapid growth of SMS and Blackberry Messenger on mobile phones, and the emerging growth of Twitter over Facebook.</p>\n\n<h5 style=\"text-align: justify;\">And a last thought on the size of Indonesia\'s internet economy</h5>\nThe internet economy in Indonesia is currently estimated to be about 1.6% of GDP, a number which indicates the share of Indonesia’s economic output that can be directly attributed to the Internet. For comparison, the UK\'s internet economy is currently estimated at 7.3% of GDP.\n\nBy 2030, Indonesia is forecast to have a larger economy than the UK. Given the rate of technological progress, it could conservatively be assumed that by 2030 the internet economy in Indonesia will be at least 7% of GDP.\n\nThese assumptions suggest that the internet economy in Indonesia will grow from US$13 billion today to US$657 billion in 2030, representing a sustained average growth rate of almost 25% for the next 17 years.\n\n<em>That</em> is a market worth investing in.\n<h6>Sources: ITU, Frost &amp; Sullivan, Nielsen, McKinsey Global Institute,Standard Chartered, eMarketer, Deloitte, Bank Indonesia, Gartner.</h6>\n&nbsp;','Regional comparisons','','inherit','closed','open','','73-revision-3','','','2013-03-14 13:06:01','2013-03-14 13:06:01','',73,'http://stage.redwing-asia.com/uncategorized/73-revision-3/',0,'revision','',0),(1914,1,'2013-03-14 13:07:02','2013-03-14 13:07:02','<img class=\"alignnone size-full wp-image-1548\" alt=\"Page - Startups - Key players graphic 3\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Startups-Key-players-graphic-3.jpg\" width=\"700\" height=\"270\" />\n<h4 style=\"text-align: justify;\">Indonesian sites are growing quickly: out of the 50 most-visited sites in Indonesia, 22 are local sites, compared to just 12 sites a year ago. But they\'re not there yet: foreign-based sites still hold the top five places. News and entertainment portals continue to attract large volumes of traffic, but the e-commerce category is growing quickly, with three e-commerce markets and two payment platforms now in the top 50. Outside the top 50, a broad range of newer ventures are still going through their early funding stages, and are therefore potential near-term investment targets.</h4>\n<h5 style=\"text-align: justify;\">Foreign sites head the list, but local sites are gaining</h5>\nGoogle leads in Indonesia, followed by the usual suspects in the top 5 (apart from the somewhat surprising blogspot.com...Indonesians are addicted to blogging as well as social media).\n\nAmong the 22 Indonesian sites in Alexa\'s top 50 ranking, Detik and Kompas are still in the top 3, but sites oriented towards e-commerce are rising rapidly.\n<p style=\"text-align: justify;\"><img class=\"alignnone size-full wp-image-1017\" alt=\"Page - Startups - Top sites table 2\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Startups-Top-sites-table-2.jpg\" width=\"381\" height=\"786\" /></p>\n\n<h5 style=\"text-align: justify;\">Investment targets exist in almost all internet segments</h5>\n<p style=\"text-align: justify;\">Below is our list of all the major investment transactions in Indonesia\'s tech sector between 2010 and 2012, indicating the year of the transaction and the type of funding. (Please note that no firm definitions of funding stages yet exist in Indonesia, so the terms \'Seed\', \'Round 1\', etc. are mainly indicative of the funding round sequence, and not necessarily the amount invested.)</p>\n<a href=\"http://redwing-asia.com/startups/key-players/attachment/page-startups-key-players-table-4/\" rel=\"attachment wp-att-1549\"><img class=\"alignnone size-full wp-image-1549\" alt=\"Page - Startups - Key players table 4\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Startups-Key-players-table-4.png\" width=\"697\" height=\"2768\" /></a>\n<h6><span style=\"color: #888888;\">Redwing strives for accuracy in its company analyses - if there are any details you would like to add to this analysis please contact us here.</span></h6>','Key players','','inherit','closed','open','','164-revision-3','','','2013-03-14 13:07:02','2013-03-14 13:07:02','',164,'http://stage.redwing-asia.com/uncategorized/164-revision-3/',0,'revision','',0),(1915,1,'2013-03-14 09:28:48','2013-03-14 09:28:48','<p style=\"text-align: justify;\"><img class=\"alignnone size-full wp-image-1544\" alt=\"Page - Startups - Key sectors graphic 5\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Startups-Key-sectors-graphic-5.jpg\" width=\"700\" height=\"270\" /></p>\n\n<h4 style=\"text-align: justify;\">Indonesia\'s startups are currently developing a range of E-commerce, mobile, social media, digital content and entertainment offerings, with a focus on ideas that are based on sustainable business models. While the largest investments early in 2012 went into broad-based E-commerce sites, more recent investments have been focused on E-Commerce verticals, mobile apps, and services that leverage social connections.</h4>\n<h5 style=\"text-align: justify;\">Increasing levels of startup innovation</h5>\n<p style=\"text-align: justify;\">A clear sign of the maturing tech sector in Indonesia is the move away from cloning foreign websites that characterised the initial internet growth spurt in 2010 and 2011, and the increasing number of services that are clearly aimed at particular customer needs in Indonesia. Case in point: Saqina\'s new Pinterest-flavoured website specialising in muslim women\'s fashions.</p>\n<p style=\"text-align: justify;\">Below is a categorisation of the various startups which have been funded since the start of 2012, together with the types of startups which are currently being incubated by the various accelerators, incubators and early-stage funds in Indonesia.\n<code></code></p>\n<a href=\"http://redwing-asia.com/startups/key-startup-sectors/attachment/page-startups-key-sectors-table/\" rel=\"attachment wp-att-1545\"><img class=\"size-full wp-image-1545 aligncenter\" alt=\"Page - Startups - Key sectors table\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Startups-Key-sectors-table.png\" width=\"650\" height=\"853\" /></a>\n<h5 style=\"text-align: justify;\">A significant number of startups exist below the radar</h5>\n<p style=\"text-align: justify;\">The table above is based on information in the public domain, yet Indonesia has always been a country where investors love to do deals on the quiet. Many startups exist in the Indonesian equivalent of stealth mode, happily building customer bases and striking partnership deals with nary a PR release in sight.</p>\n<p style=\"text-align: justify;\">In particular, there are a number of companies working on:</p>\n\n<ul style=\"text-align: justify;\">\n	<li>Various categories of B2B software</li>\n	<li>Services targeted at the huge base of feature phones</li>\n	<li>Financial services such as banking and insurance</li>\n	<li>SMS and other messaging-based services</li>\n	<li>Ad platforms for the mobile operators</li>\n	<li>Locally-oriented search engines</li>\n</ul>\n<p style=\"text-align: justify;\">These are typically funded by close-knit networks of business associates (Indonesia\'s equivalent of friends &amp; family funding), and are often able to reach a significant size before their existence becomes widely-known.</p>','Key startup sectors','','inherit','closed','open','','382-revision-3','','','2013-03-14 09:28:48','2013-03-14 09:28:48','',382,'http://stage.redwing-asia.com/uncategorized/382-revision-3/',0,'revision','',0),(1918,1,'2013-03-14 13:17:15','2013-03-14 13:17:15','','Post - Startups - Key sectors graphic','','inherit','closed','open','','post-startups-key-sectors-graphic','','','2013-03-14 13:17:15','2013-03-14 13:17:15','',0,'http://stage.redwing-asia.com/wp-content/uploads/Post-Startups-Key-sectors-graphic.jpg',0,'attachment','image/jpeg',0),(1927,1,'2013-03-14 13:03:35','2013-03-14 13:03:35','Welcome to our new website.','Welcome to Redwing\'s new website','','inherit','closed','open','','1891-revision-4','','','2013-03-14 13:03:35','2013-03-14 13:03:35','',1891,'http://stage.redwing-asia.com/uncategorized/1891-revision-4/',0,'revision','',0),(1928,1,'2013-03-17 17:07:40','2013-03-17 17:07:40','<img class=\"alignnone size-full wp-image-2016\" alt=\"Post - welcome to our new site graphic 3\" src=\"http://stage.redwing-asia.com/wp-content/uploads/Post-welcome-to-our-new-site-graphic-3.jpg\" width=\"700\" height=\"180\" />\n<p style=\"text-align: justify;\"><strong><span style=\"color: #993300;\">Welcome to Redwing\'s new website.</span></strong></p>\n<p style=\"text-align: justify;\">This website aims to give you a clear understanding of the tech sector in Indonesia.</p>\n<p style=\"text-align: justify;\">We built it because an increasing number of investors and tech companies have been approaching us recently wanting to know where the tech sector in Indonesia is going.</p>\n<p style=\"text-align: justify;\">It became clear to us that a broad, market-based perspective is not easy for investors to construct due to the fast-changing nature of the sector and the difficulty of sorting the wheat from the chaff if you\'re outside Indonesia.</p>\n<p style=\"text-align: justify;\">We also realised that the incredible potential of Indonesia\'s tech sector will be achieved far more quickly if more overseas investors enter the market to bring an extra dimension to the many talented startups being formed.</p>\n<p style=\"text-align: justify;\">As we say, \"Indonesia needs bridges, not valleys.\"</p>\n<p style=\"text-align: justify;\">So this website is our contribution to the bridge-building effort.</p>\n<p style=\"text-align: justify;\">We will be updating it frequently with analyses, articles and opinion pieces. We will also consolidate the most relevant news items each week to provide a quick overview of the latest happenings in the Indonesian tech sector.</p>\n<p style=\"text-align: justify;\">Our aim is to help both investors and startups build stronger, faster-growing and more successful businesses. We trust that\'s your aim, too.</p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #993300;\">Yours,</span></strong></p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #993300;\">The Redwing Team</span></strong></p>','Welcome to Redwing\'s new website','','inherit','closed','open','','1891-autosave','','','2013-03-17 17:07:40','2013-03-17 17:07:40','',1891,'http://stage.redwing-asia.com/uncategorized/1891-autosave/',0,'revision','',0),(1929,1,'2013-03-14 13:54:43','2013-03-14 13:54:43','<a href=\"http://stage.redwing-asia.com/investor-posts/why-invest-in-the-indonesian-tech-sector/attachment/post-why-invest-in-indonesia-graphic/\" rel=\"attachment wp-att-1932\"><img class=\"alignnone size-full wp-image-1932\" alt=\"Post - Why invest in indonesia graphic\" src=\"http://stage.redwing-asia.com/wp-content/uploads/Post-Why-invest-in-indonesia-graphic.jpg\" width=\"700\" height=\"180\" /></a>\r\n<h4 style=\"text-align: justify;\">Humbler and quieter than the flashier economic stars of China and India, Indonesia offers spectacular opportunities for tech investors wanting to get in on the ground level of an economy that is expected to exceed the size of Germany and the UK within two decades. Indonesia is already one of the world’s top five markets in mobile subscribers, Facebook users, Twitter users and mobile ads, yet we still believe it can deliver a number of surprises on the upside. And with a burgeoning middle class and an average age of 28, its highly favourable long-term demographics mean that tech opportunities will abound.</h4>\r\n<h5 style=\"text-align: justify;\"><b>Rapid growth driven by strong fundamentals</b></h5>\r\n<p style=\"text-align: justify;\">By any measures, all the tech numbers for Indonesia look good: its base of 55 million internet users today (larger than Korea’s) will grow rapidly to 125 million users by 2015 (more than Japan’s). And in parallel with this expansion, everything from e-commerce to online media to B2B applications will grow rapidly.</p>\r\n<p style=\"text-align: justify;\">This growth is driven by one of the world’s most vibrant mobile markets: Indonesia’s huge and growing mobile market now has 278 million subscribers, 15% of mobile users already have smartphones, and the mobile ad market delivered around 200 <i>billion</i> impressions last year, second only to the US. On top of this, Indonesia is in the top five countries for both Facebook and Twitter usage, as well as having the world’s most active Twitter city, Jakarta.</p>\r\n<p style=\"text-align: justify;\">Sitting behind all these numbers is a well-managed economy whose growth from 2012-2107 will only be exceeded by China among the world’s major economies. Indeed, over the past decade or so, the Indonesian economy has been so robust that it sailed through the 2008 financial crisis with barely a blip on growth.</p>\r\n<p style=\"text-align: justify;\">But these numbers – while hugely positive in themselves – sit on top of a far more exciting story: Indonesia’s internet market is likely to offer some of the biggest opportunities for tech investors in Asia over the coming decade.</p>\r\n\r\n<h5 style=\"text-align: justify;\"><b>A huge consumer market with step-change growth spurts</b></h5>\r\n<p style=\"text-align: justify;\">Indonesia’s middle-class is already big, and it\'s booming. It will double over the next seven years to 85 million people, and by 2030 there will be 135 million middle-class consumers. At that point, Indonesia’s economy will be the 7th largest in the world, exceeding the economies of both Germany and the UK.</p>\r\n<p style=\"text-align: justify;\">And to put the size of today\'s Indonesia into perspective, its dynamic, fast-growing capital Jakarta has a population and GDP equivalent to that of the whole of Malaysia.</p>\r\n<p style=\"text-align: justify;\">But this expansion of the middle-class is only half the story – the other half is technology affordability. Indonesia is a young, tech-savvy nation, full of people who are extremely enthusiastic to own and use the latest gadgets and technologies. The main barrier to ownership is not interest or desire, it is price.</p>\r\n<a title=\"Why invest in the Indonesian tech sector?\" href=\"http://stage.redwing-asia.com/why-indonesia/\">[Read the full piece]</a>','Why invest in Indonesia?','','publish','open','open','','why-invest-in-indonesia','','','2013-03-15 03:03:38','2013-03-15 03:03:38','',0,'http://stage.redwing-asia.com/?p=1929',0,'post','',0),(1930,1,'2013-03-14 13:53:30','2013-03-14 13:53:30','','Why invest in the Indonesian tech sector?','','inherit','closed','open','','1929-revision','','','2013-03-14 13:53:30','2013-03-14 13:53:30','',1929,'http://stage.redwing-asia.com/uncategorized/1929-revision/',0,'revision','',0),(1931,1,'2013-03-14 13:48:25','2013-03-14 13:48:25','<a href=\"http://stage.redwing-asia.com/uncategorized/welcome-to-redwing-asias-website/attachment/post-welcome-to-our-new-site-graphic/\" rel=\"attachment wp-att-1926\"><img class=\"alignnone size-full wp-image-1926\" alt=\"Post - welcome to our new site graphic\" src=\"http://stage.redwing-asia.com/wp-content/uploads/Post-welcome-to-our-new-site-graphic.jpg\" width=\"700\" height=\"180\" /></a>\r\n\r\nWelcome to our new website.','Welcome to Redwing\'s new website','','inherit','closed','open','','1891-revision-5','','','2013-03-14 13:48:25','2013-03-14 13:48:25','',1891,'http://stage.redwing-asia.com/uncategorized/1891-revision-5/',0,'revision','',0),(1932,1,'2013-03-14 14:00:11','2013-03-14 14:00:11','','Post - Why invest in indonesia graphic','','inherit','closed','open','','post-why-invest-in-indonesia-graphic','','','2013-03-14 14:00:11','2013-03-14 14:00:11','',1929,'http://stage.redwing-asia.com/wp-content/uploads/Post-Why-invest-in-indonesia-graphic.jpg',0,'attachment','image/jpeg',0),(1933,1,'2013-03-14 14:12:58','2013-03-14 14:12:58','<a href=\"http://stage.redwing-asia.com/investor-posts/why-invest-in-the-indonesian-tech-sector/attachment/post-why-invest-in-indonesia-graphic/\" rel=\"attachment wp-att-1932\"><img class=\"alignnone size-full wp-image-1932\" alt=\"Post - Why invest in indonesia graphic\" src=\"http://stage.redwing-asia.com/wp-content/uploads/Post-Why-invest-in-indonesia-graphic.jpg\" width=\"700\" height=\"180\" /></a>\n<h4 style=\"text-align: justify;\">Humbler and quieter than the flashier economic stars of China and India, Indonesia offers spectacular opportunities for tech investors wanting to get in on the ground level of an economy that is expected to exceed the size of Germany and the UK within two decades. Indonesia is already one of the world’s top five markets in mobile subscribers, Facebook users, Twitter users and mobile ads, yet we still believe it can deliver a number of surprises on the upside. And with a burgeoning middle class and an average age of 28, its highly favourable long-term demographics mean that tech opportunities will abound.</h4>\n<h5 style=\"text-align: justify;\"><b>Rapid growth driven by strong fundamentals</b></h5>\n<p style=\"text-align: justify;\">By any measures, all the tech numbers for Indonesia look good: its base of 55 million internet users today (larger than Korea’s) will grow rapidly to 125 million users by 2015 (more than Japan’s). And in parallel with this expansion, everything from e-commerce to online media to B2B applications will grow rapidly.</p>\n<p style=\"text-align: justify;\">This growth is driven by one of the world’s most vibrant mobile markets: Indonesia’s huge and growing mobile market now has 278 million subscribers, 15% of mobile users already have smartphones, and the mobile ad market delivered around 200 <i>billion</i> impressions last year, second only to the US. On top of this, Indonesia is in the top five countries for both Facebook and Twitter usage, as well as having the world’s most active Twitter city, Jakarta.</p>\n<p style=\"text-align: justify;\">Sitting behind all these numbers is a well-managed economy whose growth from 2012-2107 will only be exceeded by China among the world’s major economies. Indeed, over the past decade or so, the Indonesian economy has been so robust that it sailed through the 2008 financial crisis with barely a blip on growth.</p>\n<p style=\"text-align: justify;\">But these numbers – while hugely positive in themselves – sit on top of a far more exciting story: Indonesia’s internet market is likely to offer some of the biggest opportunities for tech investors in Asia over the coming decade.</p>\n\n<h5 style=\"text-align: justify;\"><b>A huge consumer market that experiences step-change growth spurts</b></h5>\n<p style=\"text-align: justify;\">Indonesia’s middle-class is already big, and it\'s booming. It will double over the next seven years to 85 million people, and by 2030 there will be 135 million middle-class consumers. At that point, Indonesia’s economy will be the 7th largest in the world, exceeding the economies of both Germany and the UK.</p>\n<p style=\"text-align: justify;\">And to put the size of today\'s Indonesia into perspective, its dynamic, fast-growing capital Jakarta has a population and GDP equivalent to that of the whole of Malaysia.</p>\n<p style=\"text-align: justify;\">But this expansion of the middle-class is only half the story – the other half is technology affordability. Indonesia is a young, tech-savvy nation, full of people who are extremely enthusiastic to own and use the latest gadgets and technologies. The main barrier to ownership is not interest or desire, it is price.</p>\n<a title=\"Why invest in the Indonesian tech sector?\" href=\"http://stage.redwing-asia.com/why-indonesia/\">[Read the full article]</a>','Why invest in the Indonesian tech sector?','','inherit','closed','open','','1929-autosave','','','2013-03-14 14:12:58','2013-03-14 14:12:58','',1929,'http://stage.redwing-asia.com/uncategorized/1929-autosave/',0,'revision','',0),(1934,1,'2013-03-14 14:14:05','2013-03-14 14:14:05','<p style=\"text-align: justify;\"><img class=\"alignnone size-full wp-image-989\" alt=\"Page - Why indonesia graphic 4\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Why-indonesia-graphic-4.jpg\" width=\"701\" height=\"252\" /></p>\n\n<h4 style=\"text-align: justify;\">Humbler and quieter than the flashier economic stars of China and India, Indonesia offers spectacular opportunities for tech investors wanting to get in on the ground level of an economy that is expected to exceed the size of Germany and the UK within two decades. Indonesia is already one of the world’s top five markets in mobile subscribers, Facebook users, Twitter users and mobile ads, yet we still believe it can deliver a number of surprises on the upside. And with a burgeoning middle class and an average age of 28, its highly favourable long-term demographics mean that tech opportunities will abound.</h4>\n<h5 style=\"text-align: justify;\"><b>Rapid growth driven by strong fundamentals</b></h5>\n<p style=\"text-align: justify;\">By any measures, all the tech numbers for Indonesia look good: its base of 55 million internet users today (larger than Korea’s) will grow rapidly to 125 million users by 2015 (more than Japan’s). And in parallel with this expansion, everything from e-commerce to online media to B2B applications will grow rapidly.</p>\n<p style=\"text-align: justify;\">This growth is driven by one of the world’s most vibrant mobile markets: Indonesia’s huge and growing mobile market now has 278 million subscribers, 15% of mobile users already have smartphones, and the mobile ad market delivered around 200 <i>billion</i> impressions last year, second only to the US. On top of this, Indonesia is in the top five countries for both Facebook and Twitter usage, as well as having the world’s most active Twitter city, Jakarta.</p>\n<p style=\"text-align: justify;\">Sitting behind all these numbers is a well-managed economy whose growth from 2012-2107 will only be exceeded by China among the world’s major economies. Indeed, over the past decade or so, the Indonesian economy has been so robust that it sailed through the 2008 financial crisis with barely a blip on growth.</p>\n<p style=\"text-align: justify;\">But these numbers – while hugely positive in themselves – sit on top of a far more exciting story: Indonesia’s internet market is likely to offer some of the biggest opportunities for tech investors in Asia over the coming decade.</p>\n\n<h5 style=\"text-align: justify;\"><b>A huge consumer market that experiences step-change growth spurts</b></h5>\n<p style=\"text-align: justify;\">Indonesia’s middle-class is already big, and it\'s booming. It will double over the next seven years to 85 million people, and by 2030 there will be 135 million middle-class consumers. At that point, Indonesia’s economy will be the 7th largest in the world, exceeding the economies of both Germany and the UK.</p>\n<p style=\"text-align: justify;\">And to put the size of today\'s Indonesia into perspective, its dynamic, fast-growing capital Jakarta has a population and GDP equivalent to that of the whole of Malaysia.</p>\n<p style=\"text-align: justify;\">But this expansion of the middle-class is only half the story – the other half is technology affordability. Indonesia is a young, tech-savvy nation, full of people who are extremely enthusiastic to own and use the latest gadgets and technologies. The main barrier to ownership is not interest or desire, it is price.</p>\n<p style=\"text-align: justify;\">So the fact that the consumer’s spending power is increasing at the same time as technologies are becoming cheaper means that the price-affordability balance for the average Indonesian can suddenly change very quickly. Unlike developed economies, where growth is primarily driven by the pace of mass market adoption, Indonesia experiences huge step-changes of growth as waves of pent-up demand are suddenly satisfied when the technology hits key price points.</p>\n<p style=\"text-align: justify;\">Look at two recent examples:</p>\n<p style=\"text-align: justify; padding-left: 30px;\"><img alt=\"\" src=\"data:image/png;base64,[encoded data, 50140 characters]\" />    <img alt=\"\" src=\"data:image/png;base64,[encoded data, 52292 characters]\" /></p>\n<p style=\"text-align: justify;\">What you see in the first graph above is how internet subscriptions in Indonesia rocketed upwards when the mobile operators began a 3G price war in 2009, bringing the monthly cost of an internet connection down from US$50+ to US$15, and in the second graph the sudden growth in smartphone purchases when the street price fell from US$400+ to under US$200 in 2010. (And it\'s also worth noting that the sprawling Mangga Dua Mall in North Jakarta is already selling Android smartphones priced a shade over US$50).</p>\n<p style=\"text-align: justify;\">So the technology markets in Indonesia frequently leap forwards in large steps as technology suddenly becomes affordable for the mass consumer market, rather than growing steadily as technology is adopted. What underlies this characteristic (and what many outsiders don’t realize) is that Indonesia is not like other Asian manufacturing-led economies. 60% of Indonesia’s economy comes from domestic consumption, so Indonesia is a huge <i>consuming</i> market.</p>\n\n<h5 style=\"text-align: justify;\"><b>A unique tech sector in Asia</b></h5>\n<p style=\"text-align: justify;\">Indonesia is both a young country (with an average age of 28) and a demographically advantaged country (the proportional size of the working population is still growing). Unlike China, which faces the upcoming challenges of an aging population, and India which must manage huge population growth, Indonesia has the dual tailwinds of healthy population growth rates and a steadily growing workforce.</p>\n<p style=\"text-align: justify;\">Indonesia’s youthfulness also leads to a very active tech sector. Literally hundreds of startups have been formed over the past few years, with the pace of business formation accelerating from 2010 onwards. Many of the startups have a mobile focus, reflecting the mobile-first nature of Indonesia, with numerous others focused on social media, e-commerce, payment platforms, online advertising and B2B markets.</p>\n<p style=\"text-align: justify;\">In addition, the internet, mobile and media sectors are completely open. Unlike China, the government of Indonesia has rejected strong regulation of the internet sector, and as a result Facebook, Twitter, Google and Yahoo! are currently Indonesia’s most-visited sites. Indonesia is also fully open to direct foreign investment. The top mobile operators all have large foreign shareholders, and Rakuten (the world’s third largest e-commerce company, after Amazon and Taobao) and Rocket Internet of Germany have both invested heavily in building Indonesian e-commerce sites.</p>\n<p style=\"text-align: justify;\">Investors in the tech sector therefore have a range of strategic options available to target Indonesia, from setting up their own venture in Indonesia, to forming a joint venture with an local Indonesian company, to investing in an Indonesian tech business, to targeting the Indonesian internet users from an overseas-based website.</p>\n<p style=\"text-align: justify;\">But again, this is not the whole story.</p>\n<p style=\"text-align: justify;\">What many have overlooked so far in the growth of Indonesia’s tech sector is the potential of the internet to transform the way things are done in Indonesia. Much of the focus of the startups in the past 2-3 years has (rightly) been in bringing online concepts from overseas into Indonesia: mobile messaging, daily deals, social networks, online payments, e-commerce, and so on.</p>\n<p style=\"text-align: justify;\">However, the real potential of the tech sector is in providing services that meet the specific needs of Indonesia’s growing consumer class. Improving the education of their children. Providing simpler ways to pay bills. Enabling them to make better choices for healthcare. Providing online shopping experiences that cater to the social nature of Indonesian culture. Making it easy for them to travel locally, and helping them satiate their increasing desire to make overseas trips.</p>\n<p style=\"text-align: justify;\">So there is a major opportunity on the upside as the Indonesian tech sector moves from a perspective of seeking to localise overseas websites to one where it develops unique local solutions. Somewhat paradoxically, these local solutions will require overseas capital and expertise to bring in the skills and experience required to build large-scale online companies.</p>\n\n<h5 style=\"text-align: justify;\"><b>Huge rewards await those willing to invest capital and skills</b></h5>\n<p style=\"text-align: justify;\">So we believe Indonesia has the potential to deliver two upside surprises:</p>\n<p style=\"text-align: justify;\">Firstly, the already-attractive forecasts of internet growth are likely to be exceeded as the rising wealth of over 100 million gadget-loving consumers coincides with falling technology prices.</p>\n<p style=\"text-align: justify;\">Secondly, Indonesia’s young and growing population has the potential to revolutionise the way business is done in the country by leveraging the power of the internet: in effect, an entrepreneurial surprise on the upside.</p>\n<p style=\"text-align: justify;\">Huge opportunities therefore exist in Indonesia for investors who see and understand these dynamics. What Indonesia needs from those investors are:</p>\n<p style=\"text-align: justify;\">1. Investors who are prepared to invest not just in facilities and advertising, but also to invest in building the skills and expertise base in Indonesia. The tech sector in Indonesia does not need valleys, it needs bridges!</p>\n<p style=\"text-align: justify;\">2. Investors who are willing to take a 3-5 year initial time perspective, and see the benefits of investing in Indonesia for the long term.</p>\n<p style=\"text-align: justify;\">3. Investors who are prepared to work closely with local entrepreneurs to understand local needs and to fund the development of solutions relevant to this huge market.</p>\n<p style=\"text-align: justify;\">The end-game prize will be to get in at the ground floor of the internet revolution in the world’s fourth-largest country by population, and an opportunity to establish a beachhead as Indonesia moves to becoming one of the world’s largest economies.</p>\n\n<h6 style=\"text-align: justify;\">Sources: World Bank, IMF, UN, Brookings Institute, Forbes, Frost &amp; Sullivan, IDC, ITU, Business Monitor International, McKinsey Global Institute, Social Bakers, Semiocast, MarkPlus</h6>','Why invest in the Indonesian tech sector?','','inherit','closed','open','','545-autosave','','','2013-03-14 14:14:05','2013-03-14 14:14:05','',545,'http://stage.redwing-asia.com/uncategorized/545-autosave/',0,'revision','',0),(1935,1,'2013-03-14 13:54:43','2013-03-14 13:54:43','','Why invest in the Indonesian tech sector?','','inherit','closed','open','','1929-revision-2','','','2013-03-14 13:54:43','2013-03-14 13:54:43','',1929,'http://stage.redwing-asia.com/uncategorized/1929-revision-2/',0,'revision','',0),(1936,1,'2013-03-14 14:01:10','2013-03-14 14:01:10','<a href=\"http://stage.redwing-asia.com/investor-posts/why-invest-in-the-indonesian-tech-sector/attachment/post-why-invest-in-indonesia-graphic/\" rel=\"attachment wp-att-1932\"><img class=\"alignnone size-full wp-image-1932\" alt=\"Post - Why invest in indonesia graphic\" src=\"http://stage.redwing-asia.com/wp-content/uploads/Post-Why-invest-in-indonesia-graphic.jpg\" width=\"700\" height=\"180\" /></a>\r\n<h4 style=\"text-align: justify;\">Humbler and quieter than the flashier economic stars of China and India, Indonesia offers spectacular opportunities for tech investors wanting to get in on the ground level of an economy that is expected to exceed the size of Germany and the UK within two decades. Indonesia is already one of the world’s top five markets in mobile subscribers, Facebook users, Twitter users and mobile ads, yet we still believe it can deliver a number of surprises on the upside. And with a burgeoning middle class and an average age of 28, its highly favourable long-term demographics mean that tech opportunities will abound.</h4>\r\n<h5 style=\"text-align: justify;\"><b>Rapid growth driven by strong fundamentals</b></h5>\r\n<p style=\"text-align: justify;\">By any measures, all the tech numbers for Indonesia look good: its base of 55 million internet users today (larger than Korea’s) will grow rapidly to 125 million users by 2015 (more than Japan’s). And in parallel with this expansion, everything from e-commerce to online media to B2B applications will grow rapidly.</p>\r\n<p style=\"text-align: justify;\">This growth is driven by one of the world’s most vibrant mobile markets: Indonesia’s huge and growing mobile market now has 278 million subscribers, 15% of mobile users already have smartphones, and the mobile ad market delivered around 200 <i>billion</i> impressions last year, second only to the US. On top of this, Indonesia is in the top five countries for both Facebook and Twitter usage, as well as having the world’s most active Twitter city, Jakarta.</p>\r\n<p style=\"text-align: justify;\">Sitting behind all these numbers is a well-managed economy whose growth from 2012-2107 will only be exceeded by China among the world’s major economies. Indeed, over the past decade or so, the Indonesian economy has been so robust that it sailed through the 2008 financial crisis with barely a blip on growth.</p>\r\n<p style=\"text-align: justify;\">But these numbers – while hugely positive in themselves – sit on top of a far more exciting story: Indonesia’s internet market is likely to offer some of the biggest opportunities for tech investors in Asia over the coming decade.</p>\r\n\r\n<h5 style=\"text-align: justify;\"><b>A huge consumer market that experiences step-change growth spurts</b></h5>\r\n<p style=\"text-align: justify;\">Indonesia’s middle-class is already big, and it\'s booming. It will double over the next seven years to 85 million people, and by 2030 there will be 135 million middle-class consumers. At that point, Indonesia’s economy will be the 7th largest in the world, exceeding the economies of both Germany and the UK.</p>\r\n<p style=\"text-align: justify;\">And to put the size of today\'s Indonesia into perspective, its dynamic, fast-growing capital Jakarta has a population and GDP equivalent to that of the whole of Malaysia.</p>\r\n<p style=\"text-align: justify;\">But this expansion of the middle-class is only half the story – the other half is technology affordability. Indonesia is a young, tech-savvy nation, full of people who are extremely enthusiastic to own and use the latest gadgets and technologies. The main barrier to ownership is not interest or desire, it is price.</p>\r\n<p style=\"text-align: justify;\">So the fact that the consumer’s spending power is increasing at the same time as technologies are becoming cheaper means that the price-affordability balance for the average Indonesian can suddenly change very quickly. Unlike developed economies, where growth is primarily driven by the pace of mass market adoption, Indonesia experiences huge step-changes of growth as waves of pent-up demand are suddenly satisfied when the technology hits key price points.</p>\r\nLook at two recent examples:\r\n\r\n<img alt=\"\" src=\"data:image/png;base64,[encoded data, 50140 characters]\" />    <img alt=\"\" src=\"data:image/png;base64,[encoded data, 52292 characters]\" />\r\n<p style=\"text-align: justify;\">What you see in the first graph above is how internet subscriptions in Indonesia rocketed upwards when the mobile operators began a 3G price war in 2009, bringing the monthly cost of an internet connection down from US$50+ to US$15, and in the second graph the sudden growth in smartphone purchases when the street price fell from US$400+ to under US$200 in 2010. (And it\'s also worth noting that the sprawling Mangga Dua Mall in North Jakarta is already selling Android smartphones priced a shade over US$50).</p>\r\n<p style=\"text-align: justify;\">So the technology markets in Indonesia frequently leap forwards in large steps as technology suddenly becomes affordable for the mass consumer market, rather than growing steadily as technology is adopted. What underlies this characteristic (and what many outsiders don’t realize) is that Indonesia is not like other Asian manufacturing-led economies. 60% of Indonesia’s economy comes from domestic consumption, so Indonesia is a huge <i>consuming</i> market.</p>\r\n\r\n<h5 style=\"text-align: justify;\"><b>A unique tech sector in Asia</b></h5>\r\n<p style=\"text-align: justify;\">Indonesia is both a young country (with an average age of 28) and a demographically advantaged country (the proportional size of the working population is still growing). Unlike China, which faces the upcoming challenges of an aging population, and India which must manage huge population growth, Indonesia has the dual tailwinds of healthy population growth rates and a steadily growing workforce.</p>\r\n<p style=\"text-align: justify;\">Indonesia’s youthfulness also leads to a very active tech sector. Literally hundreds of startups have been formed over the past few years, with the pace of business formation accelerating from 2010 onwards. Many of the startups have a mobile focus, reflecting the mobile-first nature of Indonesia, with numerous others focused on social media, e-commerce, payment platforms, online advertising and B2B markets.</p>\r\n<p style=\"text-align: justify;\">In addition, the internet, mobile and media sectors are completely open. Unlike China, the government of Indonesia has rejected strong regulation of the internet sector, and as a result Facebook, Twitter, Google and Yahoo! are currently Indonesia’s most-visited sites. Indonesia is also fully open to direct foreign investment. The top mobile operators all have large foreign shareholders, and Rakuten (the world’s third largest e-commerce company, after Amazon and Taobao) and Rocket Internet of Germany have both invested heavily in building Indonesian e-commerce sites.</p>\r\n<p style=\"text-align: justify;\">Investors in the tech sector therefore have a range of strategic options available to target Indonesia, from setting up their own venture in Indonesia, to forming a joint venture with an local Indonesian company, to investing in an Indonesian tech business, to targeting the Indonesian internet users from an overseas-based website.</p>\r\n<p style=\"text-align: justify;\">But again, this is not the whole story.</p>\r\n<p style=\"text-align: justify;\">What many have overlooked so far in the growth of Indonesia’s tech sector is the potential of the internet to transform the way things are done in Indonesia. Much of the focus of the startups in the past 2-3 years has (rightly) been in bringing online concepts from overseas into Indonesia: mobile messaging, daily deals, social networks, online payments, e-commerce, and so on.</p>\r\n<p style=\"text-align: justify;\">However, the real potential of the tech sector is in providing services that meet the specific needs of Indonesia’s growing consumer class. Improving the education of their children. Providing simpler ways to pay bills. Enabling them to make better choices for healthcare. Providing online shopping experiences that cater to the social nature of Indonesian culture. Making it easy for them to travel locally, and helping them satiate their increasing desire to make overseas trips.</p>\r\n<p style=\"text-align: justify;\">So there is a major opportunity on the upside as the Indonesian tech sector moves from a perspective of seeking to localise overseas websites to one where it develops unique local solutions. Somewhat paradoxically, these local solutions will require overseas capital and expertise to bring in the skills and experience required to build large-scale online companies.</p>\r\n\r\n<h5 style=\"text-align: justify;\"><b>Huge rewards await those willing to invest capital and skills</b></h5>\r\n<p style=\"text-align: justify;\">So we believe Indonesia has the potential to deliver two upside surprises:</p>\r\n<p style=\"text-align: justify;\">Firstly, the already-attractive forecasts of internet growth are likely to be exceeded as the rising wealth of over 100 million gadget-loving consumers coincides with falling technology prices.</p>\r\n<p style=\"text-align: justify;\">Secondly, Indonesia’s young and growing population has the potential to revolutionise the way business is done in the country by leveraging the power of the internet: in effect, an entrepreneurial surprise on the upside.</p>\r\n<p style=\"text-align: justify;\">Huge opportunities therefore exist in Indonesia for investors who see and understand these dynamics. What Indonesia needs from those investors are:</p>\r\n<p style=\"text-align: justify;\">1. Investors who are prepared to invest not just in facilities and advertising, but also to invest in building the skills and expertise base in Indonesia. The tech sector in Indonesia does not need valleys, it needs bridges!</p>\r\n<p style=\"text-align: justify;\">2. Investors who are willing to take a 3-5 year initial time perspective, and see the benefits of investing in Indonesia for the long term.</p>\r\n<p style=\"text-align: justify;\">3. Investors who are prepared to work closely with local entrepreneurs to understand local needs and to fund the development of solutions relevant to this huge market.</p>\r\n<p style=\"text-align: justify;\">The end-game prize will be to get in at the ground floor of the internet revolution in the world’s fourth-largest country by population, and an opportunity to establish a beachhead as Indonesia moves to becoming one of the world’s largest economies.</p>\r\n\r\n<h6>Sources: World Bank, IMF, UN, Brookings Institute, Forbes, Frost &amp; Sullivan, IDC, ITU, Business Monitor International, McKinsey Global Institute, Social Bakers, Semiocast, MarkPlus</h6>','Why invest in the Indonesian tech sector?','','inherit','closed','open','','1929-revision-3','','','2013-03-14 14:01:10','2013-03-14 14:01:10','',1929,'http://stage.redwing-asia.com/uncategorized/1929-revision-3/',0,'revision','',0),(1937,1,'2013-03-14 14:11:48','2013-03-14 14:11:48','<a href=\"http://stage.redwing-asia.com/investor-posts/why-invest-in-the-indonesian-tech-sector/attachment/post-why-invest-in-indonesia-graphic/\" rel=\"attachment wp-att-1932\"><img class=\"alignnone size-full wp-image-1932\" alt=\"Post - Why invest in indonesia graphic\" src=\"http://stage.redwing-asia.com/wp-content/uploads/Post-Why-invest-in-indonesia-graphic.jpg\" width=\"700\" height=\"180\" /></a>\r\n<h4 style=\"text-align: justify;\">Humbler and quieter than the flashier economic stars of China and India, Indonesia offers spectacular opportunities for tech investors wanting to get in on the ground level of an economy that is expected to exceed the size of Germany and the UK within two decades. Indonesia is already one of the world’s top five markets in mobile subscribers, Facebook users, Twitter users and mobile ads, yet we still believe it can deliver a number of surprises on the upside. And with a burgeoning middle class and an average age of 28, its highly favourable long-term demographics mean that tech opportunities will abound.</h4>\r\n<h5 style=\"text-align: justify;\"><b>Rapid growth driven by strong fundamentals</b></h5>\r\n<p style=\"text-align: justify;\">By any measures, all the tech numbers for Indonesia look good: its base of 55 million internet users today (larger than Korea’s) will grow rapidly to 125 million users by 2015 (more than Japan’s). And in parallel with this expansion, everything from e-commerce to online media to B2B applications will grow rapidly.</p>\r\n<p style=\"text-align: justify;\">This growth is driven by one of the world’s most vibrant mobile markets: Indonesia’s huge and growing mobile market now has 278 million subscribers, 15% of mobile users already have smartphones, and the mobile ad market delivered around 200 <i>billion</i> impressions last year, second only to the US. On top of this, Indonesia is in the top five countries for both Facebook and Twitter usage, as well as having the world’s most active Twitter city, Jakarta.</p>\r\n<p style=\"text-align: justify;\">Sitting behind all these numbers is a well-managed economy whose growth from 2012-2107 will only be exceeded by China among the world’s major economies. Indeed, over the past decade or so, the Indonesian economy has been so robust that it sailed through the 2008 financial crisis with barely a blip on growth.</p>\r\n<p style=\"text-align: justify;\">But these numbers – while hugely positive in themselves – sit on top of a far more exciting story: Indonesia’s internet market is likely to offer some of the biggest opportunities for tech investors in Asia over the coming decade.</p>\r\n\r\n<h5 style=\"text-align: justify;\"><b>A huge consumer market that experiences step-change growth spurts</b></h5>\r\n<p style=\"text-align: justify;\">Indonesia’s middle-class is already big, and it\'s booming. It will double over the next seven years to 85 million people, and by 2030 there will be 135 million middle-class consumers. At that point, Indonesia’s economy will be the 7th largest in the world, exceeding the economies of both Germany and the UK.</p>\r\n<p style=\"text-align: justify;\">And to put the size of today\'s Indonesia into perspective, its dynamic, fast-growing capital Jakarta has a population and GDP equivalent to that of the whole of Malaysia.</p>\r\n<p style=\"text-align: justify;\">But this expansion of the middle-class is only half the story – the other half is technology affordability. Indonesia is a young, tech-savvy nation, full of people who are extremely enthusiastic to own and use the latest gadgets and technologies. The main barrier to ownership is not interest or desire, it is price.</p>\r\n<a title=\"Why invest in the Indonesian tech sector?\" href=\"http://stage.redwing-asia.com/why-indonesia/\">[Read the full article]</a>','Why invest in the Indonesian tech sector?','','inherit','closed','open','','1929-revision-4','','','2013-03-14 14:11:48','2013-03-14 14:11:48','',1929,'http://stage.redwing-asia.com/uncategorized/1929-revision-4/',0,'revision','',0),(1938,1,'2013-03-14 13:58:08','2013-03-14 13:58:08','<a href=\"http://stage.redwing-asia.com/uncategorized/welcome-to-redwing-asias-website/attachment/post-welcome-to-our-new-site-graphic/\" rel=\"attachment wp-att-1926\"><img class=\"alignnone size-full wp-image-1926\" alt=\"Post - welcome to our new site graphic\" src=\"http://stage.redwing-asia.com/wp-content/uploads/Post-welcome-to-our-new-site-graphic.jpg\" width=\"700\" height=\"180\" /></a>\r\n\r\nWelcome to our new website.','Welcome to Redwing\'s new website','','inherit','closed','open','','1891-revision-6','','','2013-03-14 13:58:08','2013-03-14 13:58:08','',1891,'http://stage.redwing-asia.com/uncategorized/1891-revision-6/',0,'revision','',0),(1939,1,'2013-03-14 09:21:57','2013-03-14 09:21:57','<a href=\"http://redwing-asia.com/contact-us/attachment/page-about-us-graphic-2/\" rel=\"attachment wp-att-1130\"><img class=\"alignnone size-full wp-image-1130\" alt=\"Page - About Us - graphic 2\" src=\"http://redwing-asia.com/wp-content/uploads/Page-About-Us-graphic-2.jpg\" width=\"700\" height=\"270\" /></a>\r\n<h5 style=\"text-align: justify;\">What we do</h5>\r\n<p style=\"text-align: justify;\">Redwing is a boutique advisory firm that helps investment funds and technology-based companies identify, assess, secure and manage high-quality tech investments.</p>\r\n<p style=\"text-align: justify;\">We help investors successfully build long-term growth companies in the Indonesian tech sector by applying a unique combination of skills:</p>\r\n\r\n<ul>\r\n	<li style=\"text-align: justify;\">A wealth of experience from having started up companies in the US, Europe and Asia</li>\r\n</ul>\r\n<ul>\r\n	<li style=\"text-align: justify;\">Expertise in business strategy, business model development and strategic marketing</li>\r\n</ul>\r\n<ul>\r\n	<li style=\"text-align: justify;\">Over 15 years of working in a variety of business sectors in Indonesia</li>\r\n</ul>\r\n<h5 style=\"text-align: justify;\">Our track record</h5>\r\n<p style=\"text-align: justify;\">Redwing was originally founded in 1991, and spent its first decade as a roving international startup SWAT team that helped mobile operators in the US, Europe and Asia launch overseas ventures.</p>\r\n<p style=\"text-align: justify;\">Many of the companies we helped to set up are now multi-billion dollar entities. You can view a partial list of our global track record [peekaboo name=\"table1\" onhide=\"here ▼\" onshow=\"here ▲\"]<code></code>[peekaboo_content name=\"table1\"]</p>\r\n<p style=\"text-align: center;\"><img class=\"size-full wp-image-1768 aligncenter\" alt=\"Page - About Us - cellular projects chart 3\" src=\"http://redwing-asia.com/wp-content/uploads/Page-About-Us-cellular-projects-chart-3.png\" width=\"650\" height=\"257\" /></p>\r\n<p style=\"text-align: justify;\">[/peekaboo_content]</p>\r\n<p style=\"text-align: justify;\">The first incarnation of Redwing was acquired by a US internet firm in a multi-million dollar deal during the 1990s dot-com boom. Following this, Redwing\'s principals formed an angel investment and incubator company which invested in a number of US tech startups. The most successful of these, xAd, now serves over 85 million unique users a month in the US with highly targeted local mobile advertising.</p>\r\n<p style=\"text-align: justify;\">The second incarnation of Redwing was launched in Asia in 2007, with a primary focus on Indonesia. Initially focused on driving growth in multiple high-potential sectors, Redwing developed powerful business plans for a string of successful Indonesian companies. A partial list of our Indonesian track record can be viewed [peekaboo name=\"table2\" onhide=\"here ▼\" onshow=\"here ▲\"]<code></code>[peekaboo_content name=\"table2\"]</p>\r\n<p style=\"text-align: center;\"><img class=\"size-full wp-image-1769 aligncenter\" alt=\"Page - About Us - Indo projects chart 2\" src=\"http://redwing-asia.com/wp-content/uploads/Page-About-Us-Indo-projects-chart-2.png\" width=\"650\" height=\"214\" /></p>\r\n[/peekaboo_content]\r\n<h5>Redwing and the Indonesian tech sector</h5>\r\n<p style=\"text-align: justify;\">Having watched in dismay as Indonesia suffered during the Asian financial crisis in 1997, we watched with delight as it sailed through the global financial crisis of 2008. We\'ve seen the country perform in bad times, so we understand many of its strengths in good times.</p>\r\n<p style=\"text-align: justify;\">We are exceptionally bullish on the tech sector right now, and believe it will outperform most of the analysts\' current forecasts, as the perfect storm of a rising middle class, falling technology prices and a young tech-oriented population all come together.</p>\r\n<p style=\"text-align: justify;\">Having said this, over the past few years we have seen two factors that inhibit the growth of the tech sector in Indonesia: firstly that Indonesia is something of a mystery to overseas investors and often does not appear in their asset allocation list, and secondly that overseas investors are an unknown quantity for most Indonesian tech companies. Yet each has so much to offer the other.</p>\r\n<p style=\"text-align: justify;\">So we believe a bridge needs to be built between the two groups - as we say: \"Indonesia\'s tech sector needs bridges, not valleys\". This website is one aspect of our own bridge-building, and aims to raise everyone’s awareness of opportunities in the Indonesian tech sector.</p>\r\n<p style=\"text-align: justify;\">Our section on Client Services describes what we do in more detail. By applying our expertise in startups, the tech industry and Indonesia, we help investors identify suitable investees, build growth strategies based on a sustainable business models, and oversee the execution of long-term growth plans. We do this under a variety of project constructs, from acting as investment and business advisors to actively participating in growth ventures.</p>\r\n<p style=\"text-align: justify;\">And, having worked in a number of companies that grew from zero to multi-billion dollar entities, we know what it takes to build sizable companies. We focus on substantial investment opportunities in Indonesia, where the application of capital, skills and sound business plans can create significant financial returns for the founders and investors.</p>','About Us','','inherit','closed','open','','32-revision-3','','','2013-03-14 09:21:57','2013-03-14 09:21:57','',32,'http://stage.redwing-asia.com/uncategorized/32-revision-3/',0,'revision','',0),(1940,1,'2013-03-04 14:26:59','2013-03-04 14:26:59','<a href=\"http://stage.redwing-asia.com/investor-posts/the-investment-environment-in-indonesia-tech/attachment/post-investment-environment-graphic/\" rel=\"attachment wp-att-1942\"><img class=\"alignnone size-full wp-image-1942\" alt=\"Post - investment environment graphic\" src=\"http://stage.redwing-asia.com/wp-content/uploads/Post-investment-environment-graphic.jpg\" width=\"700\" height=\"180\" /></a>\r\n<h4 style=\"text-align: justify;\">Indonesia\'s tech sector had a frothy 2010 and 2011, but many startups realised in 2012 that trying to monetise eyeballs and clicks is a tough route to profitability. Armed with a new perspective, the sector is now more focused on sustainable business models and delivering breakout value to customers. As the investment environment also matures, multiple opportunities will emerge for investors willing to be flexible in terms of investment structures, and who are prepared to put in business expertise on top of their capital.</h4>\r\n<h5 style=\"text-align: justify;\"><b>The initial hype phase is over…now it’s time to get serious</b></h5>\r\n<p style=\"text-align: justify;\">Like the early days of the Silicon Valley tech boom in the 1990s, the Indonesian tech sector’s first act was characterised by a oversupply of hype and an undersupply of good solid business models. Too many startups placed their faith in being able to monetise a large user base at some unspecified point in the future, and as it became clear during 2011 and 2012 that eyeballs and clicks might not be enough, a Darwinian shakeout took place.</p>\r\n<p style=\"text-align: justify;\">This was a very good thing.</p>\r\n<p style=\"text-align: justify;\">Indonesia now has a much healthier tech sector, led by a number of rapidly-growing online companies who have clearly defined their target segments and who have begun to demonstrate a real ability to make money. Following along behind them is the second generation of Indonesian startups – more focused, more realistic, and far more fixated on delivering services which add real value to the offline and online lives of consumers and businesses.</p>\r\n<p style=\"text-align: justify;\">And as the startups change, so do the investors who fund them. Gone are the days of throwing a hundred thousand dollars at a Groupon clone in the hope that it will pick up enough percentage points of market share to flip to a competitor and exit. In its place is an ecosystem of angel funders, incubators, early-stage funds, mid-stage funds and technology providers who are helping to enhance the technical, marketing and business skills of the tech entrepreneurs so that they can build companies that can thrive and scale.</p>\r\n<p style=\"text-align: justify;\">The next three years will be very exciting times in Indonesia. Customer bases will grow. E-commerce will start to boom. Online payment options will multiply. Unique local online services will emerge. Underpinning all this will be a more methodical approach to managing the startups, driven as much by the discipline of business metrics as by the thrill of new technologies.</p>\r\n\r\n<h5 style=\"text-align: justify;\"><b>Indonesian startups often need active investors</b></h5>\r\n<p style=\"text-align: justify;\">The top Indonesian sites today have market values of around US$100 million. While billion-dollar internet companies do not yet exist in Indonesia, more $100m tech companies will emerge over the next three years. These valuations will partly be due to the rising user base (internet users will grow from 55m today to 125m by 2015), partly due to higher levels of online spending by the growing Indonesian middle class, and partly due to improved business focus and discipline.</p>\r\n<p style=\"text-align: justify;\">But the raw fact is that this is an investment market in the relatively early days of its development. Today there are a few hundred Indonesian startups, many of which are still two guys in a garage (or, increasingly often, in a shared incubator office). Apart from a handful of companies which are looking for expansion capital, most startups need mentoring, marketing assistance and help making connections as much as they need investment money: the Indonesian tech sector is still in capacity-building mode.</p>\r\n<a title=\"Investment environment\" href=\"http://stage.redwing-asia.com/investors/investment-environment/\">[Read the full piece]</a>','What\'s it like to invest in the Indonesia tech sector?','','publish','open','open','','the-investment-environment-in-indonesia-tech','','','2013-03-15 10:41:18','2013-03-15 10:41:18','',0,'http://stage.redwing-asia.com/?p=1940',0,'post','',0),(1941,1,'2013-03-14 14:22:10','2013-03-14 14:22:10','<img class=\"alignnone size-full wp-image-1152\" alt=\"Page - Investors - investment environment graphic 3\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Investors-investment-environment-graphic-3.jpg\" width=\"700\" height=\"270\" />\n<h4 style=\"text-align: justify;\">Indonesia\'s tech sector had a frothy 2010 and 2011, but many startups realised in 2012 that trying to monetise eyeballs and clicks is a tough route to profitability. Armed with a new perspective, the sector is now more focused on sustainable business models and delivering breakout value to customers. As the investment environment also matures, multiple opportunities will emerge for investors willing to be flexible in terms of investment structures, and who are prepared to put in business expertise on top of their capital.</h4>\n<h5 style=\"text-align: justify;\"><b>The initial hype phase is over…now it’s time to get serious</b></h5>\n<p style=\"text-align: justify;\">Like the early days of the Silicon Valley tech boom in the 1990s, the Indonesian tech sector’s first act was characterised by a oversupply of hype and an undersupply of good solid business models. Too many startups placed their faith in being able to monetise a large user base at some unspecified point in the future, and as it became clear during 2011 and 2012 that eyeballs and clicks might not be enough, a Darwinian shakeout took place.</p>\n<p style=\"text-align: justify;\">This was a very good thing.</p>\n<p style=\"text-align: justify;\">Indonesia now has a much healthier tech sector, led by a number of rapidly-growing online companies who have clearly defined their target segments and who have begun to demonstrate a real ability to make money. Following along behind them is the second generation of Indonesian startups – more focused, more realistic, and far more fixated on delivering services which add real value to the offline and online lives of consumers and businesses.</p>\n<p style=\"text-align: justify;\">And as the startups change, so do the investors who fund them. Gone are the days of throwing a hundred thousand dollars at a Groupon clone in the hope that it will pick up enough percentage points of market share to flip to a competitor and exit. In its place is an ecosystem of angel funders, incubators, early-stage funds, mid-stage funds and technology providers who are helping to enhance the technical, marketing and business skills of the tech entrepreneurs so that they can build companies that can thrive and scale.</p>\n<p style=\"text-align: justify;\">The next three years will be very exciting times in Indonesia. Customer bases will grow. E-commerce will start to boom. Online payment options will multiply. Unique local online services will emerge. Underpinning all this will be a more methodical approach to managing the startups, driven as much by the discipline of business metrics as by the thrill of new technologies.</p>\n\n<h5 style=\"text-align: justify;\"><b>Indonesian startups are relatively young, and need active investors</b></h5>\n<p style=\"text-align: justify;\">The top Indonesian sites today have market values of around US$100 million. While billion-dollar internet companies do not yet exist in Indonesia, more $100m tech companies will emerge over the next three years. These valuations will partly be due to the rising user base (internet users will grow from 55m today to 125m by 2015), partly due to higher levels of online spending by the growing Indonesian middle class, and partly due to improved business focus and discipline.</p>\n<p style=\"text-align: justify;\">But the raw fact is that this is an investment market in the relatively early days of its development. Today there are a few hundred Indonesian startups, many of which are still two guys in a garage (or, increasingly often, in a shared incubator office). Apart from a handful of companies which are looking for expansion capital, most startups need mentoring, marketing assistance and help making connections as much as they need investment money: the Indonesian tech sector is still in capacity-building mode.</p>\n<p style=\"text-align: justify;\">So investment amounts are lower in Indonesia than in the US: initial investments by the incubators are usually under US$50k, angel and seed rounds tend to be $50k-$250k, and Series A at $200k-$500k and Series B at $500k-$5m.</p>\n\n<h5 style=\"text-align: justify;\"><b>Since startups need more than capital, multiple investment models exist</b></h5>\n<p style=\"text-align: justify;\">Beyond straight financial investments, two other investment models have become more common in the last two years: joint venture partnerships and build-from-scratch.</p>\n<p style=\"text-align: justify;\">Joint ventures typically consist of a partnerships between a non-Indonesian company with capital and technical expertise and an Indonesian company with local connections, local facilities and market expertise (and which often does not have an existing internet business). The largest example to date is Rakuten’s partnership with Indonesia’s largest media group, Global Mediacom. eBay has also entered Indonesia in partnership with the largest telecoms operator, Telkom, to develop a joint e-commerce offering.</p>\n<p style=\"text-align: justify;\">Rocket Internet has been the largest build-from-scratch entrant, having hired hundreds of people to staff its Indonesia operations since launching six online ventures, starting in early 2011. Google has also chosen to hire directly rather than form a JV, in line with its geographic expansion strategy in other markets.</p>\n<p style=\"text-align: justify;\">An interesting twist on the two models above is Sumitomo Japan’s partnership with its own in-country subsidiary Sumitomo Indonesia - rather than a genuinely local Indonesian partner - to launch the online grocery Sukamart.</p>\n<p style=\"text-align: justify;\">So the internet sector is developing along similar lines to some of Indonesia’s more established industries such as mobile, consumer goods and (many years ago) mining and agriculture. The early years are characterised by a mix of local firms, local-foreign partnerships and foreign-owned subsidiaries, driven by the needs of different investor groups to combine capital, expertise, local market knowledge and risk management.</p>\n<p style=\"text-align: justify;\">Over time, as local expertise becomes more widespread, the companies take on an increasingly Indonesian flavour. The Big 3 mobile operators were typical of this – during their build-out phase in the 1990s they employed 50-100 expatriate technical experts each, whereas now the overseas investors typically place only one or two key managers and Board directors within the Indonesian operating company.</p>\n\n<h5 style=\"text-align: justify;\"><b>Exit deals can be done, but transaction details are thin on the ground</b></h5>\n<p style=\"text-align: justify;\">As the tech sector matures, investors focused on each investment stage are beginning to emerge. A number of incubators and early-stage Indonesian VCs are actively investing in startups and mentoring them through their early days. A handful of angel groups exist, although their activity is very much below the radar at the moment. The early-stage VCs are very active, and have moved a number of their startups through to later-stage funding rounds, selling on to other funds or strategic investors.</p>\n<p style=\"text-align: justify;\">At this point in time founders, seed investors and early-stage funds are exiting through sales to foreign investors (mainly from Japan and Singapore), foreign .coms (such as Groupon and Yahoo) and local corporate players (primarily in the media sector). The Indonesian stock exchange has an emerging IPO market, and although a number of companies from the mobile sector have gone public over the past three years, no pure-play tech sector companies have yet gone to IPO.</p>\n<p style=\"text-align: justify;\">From the perspective of deal terms, the Indonesian tech sector is still very much in stealth mode. While investment deals are generally announced when they occur, terms are rarely disclosed, and a standard set of investment metrics is yet to emerge. This obviously leads to challenges in establishing company valuations, which typically tend to be based on market fundamentals and business performance forecasts rather than deal metrics at the present time.</p>\n<p style=\"text-align: justify;\">And as the startups and investors develop, we expect to see a Indonesian-flavoured version of the US tech development model emerge: on the one hand, a standard process of startup to incubator to early-stage funding to exit. But on the other hand, a process that will be flavoured with Indonesian <em>sambal</em>, as family-owned enterprises, local conglomerates and networks of local companies put their own unique stamp on the tech growth companies.</p>\n\n<h6 style=\"text-align: justify;\">Sources: Jakarta Globe, Frost &amp; Sullivan, Rakuten Belanja, Tech Crunch, Daily Social</h6>','Investment environment','','inherit','closed','open','','151-autosave','','','2013-03-14 14:22:10','2013-03-14 14:22:10','',151,'http://stage.redwing-asia.com/uncategorized/151-autosave/',0,'revision','',0),(1942,1,'2013-03-14 14:23:34','2013-03-14 14:23:34','','Post - investment environment graphic','','inherit','closed','open','','post-investment-environment-graphic','','','2013-03-14 14:23:34','2013-03-14 14:23:34','',1940,'http://stage.redwing-asia.com/wp-content/uploads/Post-investment-environment-graphic.jpg',0,'attachment','image/jpeg',0),(1943,1,'2013-03-14 14:24:24','2013-03-14 14:24:24','<a href=\"http://stage.redwing-asia.com/?attachment_id=1942\" rel=\"attachment wp-att-1942\"><img class=\"alignnone size-full wp-image-1942\" alt=\"Post - investment environment graphic\" src=\"http://stage.redwing-asia.com/wp-content/uploads/Post-investment-environment-graphic.jpg\" width=\"700\" height=\"180\" /></a>\n<h4>Indonesia\'s tech sector had a frothy 2010 and 2011, but many startups realised in 2012 that trying to monetise eyeballs and clicks is a tough route to profitability. Armed with a new perspective, the sector is now more focused on sustainable business models and delivering breakout value to customers. As the investment environment also matures, multiple opportunities will emerge for investors willing to be flexible in terms of investment structures, and who are prepared to put in business expertise on top of their capital.</h4>\n<h5><b>The initial hype phase is over…now it’s time to get serious</b></h5>\nLike the early days of the Silicon Valley tech boom in the 1990s, the Indonesian tech sector’s first act was characterised by a oversupply of hype and an undersupply of good solid business models. Too many startups placed their faith in being able to monetise a large user base at some unspecified point in the future, and as it became clear during 2011 and 2012 that eyeballs and clicks might not be enough, a Darwinian shakeout took place.\n\nThis was a very good thing.\n\nIndonesia now has a much healthier tech sector, led by a number of rapidly-growing online companies who have clearly defined their target segments and who have begun to demonstrate a real ability to make money. Following along behind them is the second generation of Indonesian startups – more focused, more realistic, and far more fixated on delivering services which add real value to the offline and online lives of consumers and businesses.\n\nAnd as the startups change, so do the investors who fund them. Gone are the days of throwing a hundred thousand dollars at a Groupon clone in the hope that it will pick up enough percentage points of market share to flip to a competitor and exit. In its place is an ecosystem of angel funders, incubators, early-stage funds, mid-stage funds and technology providers who are helping to enhance the technical, marketing and business skills of the tech entrepreneurs so that they can build companies that can thrive and scale.\n\nThe next three years will be very exciting times in Indonesia. Customer bases will grow. E-commerce will start to boom. Online payment options will multiply. Unique local online services will emerge. Underpinning all this will be a more methodical approach to managing the startups, driven as much by the discipline of business metrics as by the thrill of new technologies.\n<h5><b>Indonesian startups are relatively young, and need active investors</b></h5>\nThe top Indonesian sites today have market values of around US$100 million. While billion-dollar internet companies do not yet exist in Indonesia, more $100m tech companies will emerge over the next three years. These valuations will partly be due to the rising user base (internet users will grow from 55m today to 125m by 2015), partly due to higher levels of online spending by the growing Indonesian middle class, and partly due to improved business focus and discipline.\n\nBut the raw fact is that this is an investment market in the relatively early days of its development. Today there are a few hundred Indonesian startups, many of which are still two guys in a garage (or, increasingly often, in a shared incubator office). Apart from a handful of companies which are looking for expansion capital, most startups need mentoring, marketing assistance and help making connections as much as they need investment money: the Indonesian tech sector is still in capacity-building mode.\n\nSo investment amounts are lower in Indonesia than in the US: initial investments by the incubators are usually under US$50k, angel and seed rounds tend to be $50k-$250k, and Series A at $200k-$500k and Series B at $500k-$5m.\n<h5><b>Since startups need more than capital, multiple investment models exist</b></h5>\nBeyond straight financial investments, two other investment models have become more common in the last two years: joint venture partnerships and build-from-scratch.\n\nJoint ventures typically consist of a partnerships between a non-Indonesian company with capital and technical expertise and an Indonesian company with local connections, local facilities and market expertise (and which often does not have an existing internet business). The largest example to date is Rakuten’s partnership with Indonesia’s largest media group, Global Mediacom. eBay has also entered Indonesia in partnership with the largest telecoms operator, Telkom, to develop a joint e-commerce offering.\n\nRocket Internet has been the largest build-from-scratch entrant, having hired hundreds of people to staff its Indonesia operations since launching six online ventures, starting in early 2011. Google has also chosen to hire directly rather than form a JV, in line with its geographic expansion strategy in other markets.\n\nAn interesting twist on the two models above is Sumitomo Japan’s partnership with its own in-country subsidiary Sumitomo Indonesia - rather than a genuinely local Indonesian partner - to launch the online grocery Sukamart.\n\nSo the internet sector is developing along similar lines to some of Indonesia’s more established industries such as mobile, consumer goods and (many years ago) mining and agriculture. The early years are characterised by a mix of local firms, local-foreign partnerships and foreign-owned subsidiaries, driven by the needs of different investor groups to combine capital, expertise, local market knowledge and risk management.\n\nOver time, as local expertise becomes more widespread, the companies take on an increasingly Indonesian flavour. The Big 3 mobile operators were typical of this – during their build-out phase in the 1990s they employed 50-100 expatriate technical experts each, whereas now the overseas investors typically place only one or two key managers and Board directors within the Indonesian operating company.\n<h5><b>Exit deals can be done, but transaction details are thin on the ground</b></h5>\nAs the tech sector matures, investors focused on each investment stage are beginning to emerge. A number of incubators and early-stage Indonesian VCs are actively investing in startups and mentoring them through their early days. A handful of angel groups exist, although their activity is very much below the radar at the moment. The early-stage VCs are very active, and have moved a number of their startups through to later-stage funding rounds, selling on to other funds or strategic investors.\n\nAt this point in time founders, seed investors and early-stage funds are exiting through sales to foreign investors (mainly from Japan and Singapore), foreign .coms (such as Groupon and Yahoo) and local corporate players (primarily in the media sector). The Indonesian stock exchange has an emerging IPO market, and although a number of companies from the mobile sector have gone public over the past three years, no pure-play tech sector companies have yet gone to IPO.\n\nFrom the perspective of deal terms, the Indonesian tech sector is still very much in stealth mode. While investment deals are generally announced when they occur, terms are rarely disclosed, and a standard set of investment metrics is yet to emerge. This obviously leads to challenges in establishing company valuations, which typically tend to be based on market fundamentals and business performance forecasts rather than deal metrics at the present time.\n\nAnd as the startups and investors develop, we expect to see a Indonesian-flavoured version of the US tech development model emerge: on the one hand, a standard process of startup to incubator to early-stage funding to exit. But on the other hand, a process that will be flavoured with Indonesian <em>sambal</em>, as family-owned enterprises, local conglomerates and networks of local companies put their own unique stamp on the tech growth companies.\n<h6>Sources: Jakarta Globe, Frost &amp; Sullivan, Rakuten Belanja, Tech Crunch, Daily Social</h6>','The investment environment in Indonesia tech','','inherit','closed','open','','1940-revision','','','2013-03-14 14:24:24','2013-03-14 14:24:24','',1940,'http://stage.redwing-asia.com/uncategorized/1940-revision/',0,'revision','',0),(1944,1,'2013-03-14 14:26:59','2013-03-14 14:26:59','<a href=\"http://stage.redwing-asia.com/?attachment_id=1942\" rel=\"attachment wp-att-1942\"><img class=\"alignnone size-full wp-image-1942\" alt=\"Post - investment environment graphic\" src=\"http://stage.redwing-asia.com/wp-content/uploads/Post-investment-environment-graphic.jpg\" width=\"700\" height=\"180\" /></a>\r\n<h4>Indonesia\'s tech sector had a frothy 2010 and 2011, but many startups realised in 2012 that trying to monetise eyeballs and clicks is a tough route to profitability. Armed with a new perspective, the sector is now more focused on sustainable business models and delivering breakout value to customers. As the investment environment also matures, multiple opportunities will emerge for investors willing to be flexible in terms of investment structures, and who are prepared to put in business expertise on top of their capital.</h4>\r\n<h5><b>The initial hype phase is over…now it’s time to get serious</b></h5>\r\nLike the early days of the Silicon Valley tech boom in the 1990s, the Indonesian tech sector’s first act was characterised by a oversupply of hype and an undersupply of good solid business models. Too many startups placed their faith in being able to monetise a large user base at some unspecified point in the future, and as it became clear during 2011 and 2012 that eyeballs and clicks might not be enough, a Darwinian shakeout took place.\r\n\r\nThis was a very good thing.\r\n\r\nIndonesia now has a much healthier tech sector, led by a number of rapidly-growing online companies who have clearly defined their target segments and who have begun to demonstrate a real ability to make money. Following along behind them is the second generation of Indonesian startups – more focused, more realistic, and far more fixated on delivering services which add real value to the offline and online lives of consumers and businesses.\r\n\r\nAnd as the startups change, so do the investors who fund them. Gone are the days of throwing a hundred thousand dollars at a Groupon clone in the hope that it will pick up enough percentage points of market share to flip to a competitor and exit. In its place is an ecosystem of angel funders, incubators, early-stage funds, mid-stage funds and technology providers who are helping to enhance the technical, marketing and business skills of the tech entrepreneurs so that they can build companies that can thrive and scale.\r\n\r\nThe next three years will be very exciting times in Indonesia. Customer bases will grow. E-commerce will start to boom. Online payment options will multiply. Unique local online services will emerge. Underpinning all this will be a more methodical approach to managing the startups, driven as much by the discipline of business metrics as by the thrill of new technologies.\r\n<h5><b>Indonesian startups are relatively young, and need active investors</b></h5>\r\nThe top Indonesian sites today have market values of around US$100 million. While billion-dollar internet companies do not yet exist in Indonesia, more $100m tech companies will emerge over the next three years. These valuations will partly be due to the rising user base (internet users will grow from 55m today to 125m by 2015), partly due to higher levels of online spending by the growing Indonesian middle class, and partly due to improved business focus and discipline.\r\n\r\nBut the raw fact is that this is an investment market in the relatively early days of its development. Today there are a few hundred Indonesian startups, many of which are still two guys in a garage (or, increasingly often, in a shared incubator office). Apart from a handful of companies which are looking for expansion capital, most startups need mentoring, marketing assistance and help making connections as much as they need investment money: the Indonesian tech sector is still in capacity-building mode.\r\n\r\n<a title=\"Investment environment\" href=\"http://stage.redwing-asia.com/investors/investment-environment/\">[Read the full article here]</a>','The investment environment in Indonesia tech','','inherit','closed','open','','1940-revision-2','','','2013-03-14 14:26:59','2013-03-14 14:26:59','',1940,'http://stage.redwing-asia.com/uncategorized/1940-revision-2/',0,'revision','',0),(1945,1,'2013-03-14 14:26:59','2013-03-14 14:26:59','<a href=\"http://stage.redwing-asia.com/investor-posts/the-investment-environment-in-indonesia-tech/attachment/post-investment-environment-graphic/\" rel=\"attachment wp-att-1942\"><img class=\"alignnone size-full wp-image-1942\" alt=\"Post - investment environment graphic\" src=\"http://stage.redwing-asia.com/wp-content/uploads/Post-investment-environment-graphic.jpg\" width=\"700\" height=\"180\" /></a>\r\n<h4>Indonesia\'s tech sector had a frothy 2010 and 2011, but many startups realised in 2012 that trying to monetise eyeballs and clicks is a tough route to profitability. Armed with a new perspective, the sector is now more focused on sustainable business models and delivering breakout value to customers. As the investment environment also matures, multiple opportunities will emerge for investors willing to be flexible in terms of investment structures, and who are prepared to put in business expertise on top of their capital.</h4>\r\n<h5><b>The initial hype phase is over…now it’s time to get serious</b></h5>\r\nLike the early days of the Silicon Valley tech boom in the 1990s, the Indonesian tech sector’s first act was characterised by a oversupply of hype and an undersupply of good solid business models. Too many startups placed their faith in being able to monetise a large user base at some unspecified point in the future, and as it became clear during 2011 and 2012 that eyeballs and clicks might not be enough, a Darwinian shakeout took place.\r\n\r\nThis was a very good thing.\r\n\r\nIndonesia now has a much healthier tech sector, led by a number of rapidly-growing online companies who have clearly defined their target segments and who have begun to demonstrate a real ability to make money. Following along behind them is the second generation of Indonesian startups – more focused, more realistic, and far more fixated on delivering services which add real value to the offline and online lives of consumers and businesses.\r\n\r\nAnd as the startups change, so do the investors who fund them. Gone are the days of throwing a hundred thousand dollars at a Groupon clone in the hope that it will pick up enough percentage points of market share to flip to a competitor and exit. In its place is an ecosystem of angel funders, incubators, early-stage funds, mid-stage funds and technology providers who are helping to enhance the technical, marketing and business skills of the tech entrepreneurs so that they can build companies that can thrive and scale.\r\n\r\nThe next three years will be very exciting times in Indonesia. Customer bases will grow. E-commerce will start to boom. Online payment options will multiply. Unique local online services will emerge. Underpinning all this will be a more methodical approach to managing the startups, driven as much by the discipline of business metrics as by the thrill of new technologies.\r\n<h5><b>Indonesian startups are relatively young, and need active investors</b></h5>\r\nThe top Indonesian sites today have market values of around US$100 million. While billion-dollar internet companies do not yet exist in Indonesia, more $100m tech companies will emerge over the next three years. These valuations will partly be due to the rising user base (internet users will grow from 55m today to 125m by 2015), partly due to higher levels of online spending by the growing Indonesian middle class, and partly due to improved business focus and discipline.\r\n\r\nBut the raw fact is that this is an investment market in the relatively early days of its development. Today there are a few hundred Indonesian startups, many of which are still two guys in a garage (or, increasingly often, in a shared incubator office). Apart from a handful of companies which are looking for expansion capital, most startups need mentoring, marketing assistance and help making connections as much as they need investment money: the Indonesian tech sector is still in capacity-building mode.\r\n\r\n<a title=\"Investment environment\" href=\"http://stage.redwing-asia.com/investors/investment-environment/\">[Read the full article here]</a>','The investment environment in Indonesia tech','','inherit','closed','open','','1940-revision-3','','','2013-03-14 14:26:59','2013-03-14 14:26:59','',1940,'http://stage.redwing-asia.com/uncategorized/1940-revision-3/',0,'revision','',0),(1946,1,'2013-03-14 14:13:42','2013-03-14 14:13:42','<a href=\"http://stage.redwing-asia.com/investor-posts/why-invest-in-the-indonesian-tech-sector/attachment/post-why-invest-in-indonesia-graphic/\" rel=\"attachment wp-att-1932\"><img class=\"alignnone size-full wp-image-1932\" alt=\"Post - Why invest in indonesia graphic\" src=\"http://stage.redwing-asia.com/wp-content/uploads/Post-Why-invest-in-indonesia-graphic.jpg\" width=\"700\" height=\"180\" /></a>\r\n<h4 style=\"text-align: justify;\">Humbler and quieter than the flashier economic stars of China and India, Indonesia offers spectacular opportunities for tech investors wanting to get in on the ground level of an economy that is expected to exceed the size of Germany and the UK within two decades. Indonesia is already one of the world’s top five markets in mobile subscribers, Facebook users, Twitter users and mobile ads, yet we still believe it can deliver a number of surprises on the upside. And with a burgeoning middle class and an average age of 28, its highly favourable long-term demographics mean that tech opportunities will abound.</h4>\r\n<h5 style=\"text-align: justify;\"><b>Rapid growth driven by strong fundamentals</b></h5>\r\n<p style=\"text-align: justify;\">By any measures, all the tech numbers for Indonesia look good: its base of 55 million internet users today (larger than Korea’s) will grow rapidly to 125 million users by 2015 (more than Japan’s). And in parallel with this expansion, everything from e-commerce to online media to B2B applications will grow rapidly.</p>\r\n<p style=\"text-align: justify;\">This growth is driven by one of the world’s most vibrant mobile markets: Indonesia’s huge and growing mobile market now has 278 million subscribers, 15% of mobile users already have smartphones, and the mobile ad market delivered around 200 <i>billion</i> impressions last year, second only to the US. On top of this, Indonesia is in the top five countries for both Facebook and Twitter usage, as well as having the world’s most active Twitter city, Jakarta.</p>\r\n<p style=\"text-align: justify;\">Sitting behind all these numbers is a well-managed economy whose growth from 2012-2107 will only be exceeded by China among the world’s major economies. Indeed, over the past decade or so, the Indonesian economy has been so robust that it sailed through the 2008 financial crisis with barely a blip on growth.</p>\r\n<p style=\"text-align: justify;\">But these numbers – while hugely positive in themselves – sit on top of a far more exciting story: Indonesia’s internet market is likely to offer some of the biggest opportunities for tech investors in Asia over the coming decade.</p>\r\n\r\n<h5 style=\"text-align: justify;\"><b>A huge consumer market that experiences step-change growth spurts</b></h5>\r\n<p style=\"text-align: justify;\">Indonesia’s middle-class is already big, and it\'s booming. It will double over the next seven years to 85 million people, and by 2030 there will be 135 million middle-class consumers. At that point, Indonesia’s economy will be the 7th largest in the world, exceeding the economies of both Germany and the UK.</p>\r\n<p style=\"text-align: justify;\">And to put the size of today\'s Indonesia into perspective, its dynamic, fast-growing capital Jakarta has a population and GDP equivalent to that of the whole of Malaysia.</p>\r\n<p style=\"text-align: justify;\">But this expansion of the middle-class is only half the story – the other half is technology affordability. Indonesia is a young, tech-savvy nation, full of people who are extremely enthusiastic to own and use the latest gadgets and technologies. The main barrier to ownership is not interest or desire, it is price.</p>\r\n<a title=\"Why invest in the Indonesian tech sector?\" href=\"http://stage.redwing-asia.com/why-indonesia/\">[Read the full article]</a>','Why invest in the Indonesian tech sector?','','inherit','closed','open','','1929-revision-5','','','2013-03-14 14:13:42','2013-03-14 14:13:42','',1929,'http://stage.redwing-asia.com/uncategorized/1929-revision-5/',0,'revision','',0),(1947,1,'2013-03-14 14:28:14','2013-03-14 14:28:14','<a href=\"http://stage.redwing-asia.com/investor-posts/the-investment-environment-in-indonesia-tech/attachment/post-investment-environment-graphic/\" rel=\"attachment wp-att-1942\"><img class=\"alignnone size-full wp-image-1942\" alt=\"Post - investment environment graphic\" src=\"http://stage.redwing-asia.com/wp-content/uploads/Post-investment-environment-graphic.jpg\" width=\"700\" height=\"180\" /></a>\r\n<h4>Indonesia\'s tech sector had a frothy 2010 and 2011, but many startups realised in 2012 that trying to monetise eyeballs and clicks is a tough route to profitability. Armed with a new perspective, the sector is now more focused on sustainable business models and delivering breakout value to customers. As the investment environment also matures, multiple opportunities will emerge for investors willing to be flexible in terms of investment structures, and who are prepared to put in business expertise on top of their capital.</h4>\r\n<h5><b>The initial hype phase is over…now it’s time to get serious</b></h5>\r\nLike the early days of the Silicon Valley tech boom in the 1990s, the Indonesian tech sector’s first act was characterised by a oversupply of hype and an undersupply of good solid business models. Too many startups placed their faith in being able to monetise a large user base at some unspecified point in the future, and as it became clear during 2011 and 2012 that eyeballs and clicks might not be enough, a Darwinian shakeout took place.\r\n\r\nThis was a very good thing.\r\n\r\nIndonesia now has a much healthier tech sector, led by a number of rapidly-growing online companies who have clearly defined their target segments and who have begun to demonstrate a real ability to make money. Following along behind them is the second generation of Indonesian startups – more focused, more realistic, and far more fixated on delivering services which add real value to the offline and online lives of consumers and businesses.\r\n\r\nAnd as the startups change, so do the investors who fund them. Gone are the days of throwing a hundred thousand dollars at a Groupon clone in the hope that it will pick up enough percentage points of market share to flip to a competitor and exit. In its place is an ecosystem of angel funders, incubators, early-stage funds, mid-stage funds and technology providers who are helping to enhance the technical, marketing and business skills of the tech entrepreneurs so that they can build companies that can thrive and scale.\r\n\r\nThe next three years will be very exciting times in Indonesia. Customer bases will grow. E-commerce will start to boom. Online payment options will multiply. Unique local online services will emerge. Underpinning all this will be a more methodical approach to managing the startups, driven as much by the discipline of business metrics as by the thrill of new technologies.\r\n<h5><b>Indonesian startups are relatively young, and need active investors</b></h5>\r\nThe top Indonesian sites today have market values of around US$100 million. While billion-dollar internet companies do not yet exist in Indonesia, more $100m tech companies will emerge over the next three years. These valuations will partly be due to the rising user base (internet users will grow from 55m today to 125m by 2015), partly due to higher levels of online spending by the growing Indonesian middle class, and partly due to improved business focus and discipline.\r\n\r\nBut the raw fact is that this is an investment market in the relatively early days of its development. Today there are a few hundred Indonesian startups, many of which are still two guys in a garage (or, increasingly often, in a shared incubator office). Apart from a handful of companies which are looking for expansion capital, most startups need mentoring, marketing assistance and help making connections as much as they need investment money: the Indonesian tech sector is still in capacity-building mode.\r\n\r\n<a title=\"Investment environment\" href=\"http://stage.redwing-asia.com/investors/investment-environment/\">[Read the full article here]</a>','What\'s it like to invest in the Indonesia tech sector?','','inherit','closed','open','','1940-revision-4','','','2013-03-14 14:28:14','2013-03-14 14:28:14','',1940,'http://stage.redwing-asia.com/uncategorized/1940-revision-4/',0,'revision','',0),(1948,1,'2013-03-12 14:33:56','2013-03-12 14:33:56','<a href=\"http://stage.redwing-asia.com/startup-posts/the-startup-environment-in-indonesia/attachment/post-startup-environment-graphic/\" rel=\"attachment wp-att-1950\"><img class=\"alignnone size-full wp-image-1950\" alt=\"Post - startup environment graphic\" src=\"http://stage.redwing-asia.com/wp-content/uploads/Post-startup-environment-graphic.jpg\" width=\"700\" height=\"180\" /></a>\r\n<h4 style=\"text-align: justify;\">Like other tech sectors around the world, Indonesia has already been through a number of phases of hype, boom and realism. At the moment it\'s in a realism phase, with a number of larger investors entering the market to build companies which can take advantage of long-term growth trends. In parallel with this, the Indonesian tech ecosystem continues to mature, with incubators, startup communities, tech news sites and regular business plan competitions all serving to raise the level of capability among the tech entrepreneurs.</h4>\r\n<h5 style=\"text-align: justify;\">A rapidly-maturing sector with three distinct types of startups</h5>\r\n<p style=\"text-align: justify;\">The tech sector in Indonesia began a sustained growth drive in 2010, signalled by the formation of the first Indonesia-focused VCs and a significant rise in the volume of investment deals. With the formation of a number of startup incubators in 2011, plus greater sector awareness through online news sites such as Daily Social, TechInAsia and e27, a healthy ecosystem has been firmly established.</p>\r\n<p style=\"text-align: justify;\">Startups in Indonesia come into being through four distinct routes:</p>\r\n\r\n<ul style=\"text-align: justify;\">\r\n	<li><strong>Independent incubation</strong>: independent incubators such as Ideosource, Batavia and InvestIdea provide a mix of funding, mentoring and facilities to help entrepreneurs turn their ideas into potential businesses.</li>\r\n</ul>\r\n<ul style=\"text-align: justify;\">\r\n	<li><strong>Corporate incubation</strong>: incubators tied to larger companies or funds (examples are Grupara/Medco, MerahPutih/GDP Ventures and Mega Media/Indosat) all provide startups with similar services to the independent incubators, but with a potential route into a larger funding entity within the same group.</li>\r\n</ul>\r\n<ul style=\"text-align: justify;\">\r\n	<li><strong>Bootstrapping</strong>: self-sufficient founders can pull together the right mix of skills and initial funding themselves. Typically the founders will be:</li>\r\n</ul>\r\n<p style=\"padding-left: 30px; text-align: justify;\">- Entrepreneurs on their second or third Indonesian startup (increasingly common these days)</p>\r\n<p style=\"padding-left: 30px; text-align: justify;\">- Indonesians returning home after studying and working abroad</p>\r\n<p style=\"padding-left: 30px; text-align: justify;\">- Local graduates who want to try something outside the corporate life</p>\r\n<p style=\"padding-left: 30px; text-align: justify;\">- Foreigners who come to Indonesia and discover a tech opportunity</p>\r\n<p style=\"padding-left: 30px; text-align: justify;\">- Foreigners with an overseas website who find that many of their early users are from Indonesia</p>\r\n\r\n<ul style=\"text-align: justify;\">\r\n	<li><strong>Well-funded startups</strong>: these take a variety of forms, from startups begun by investment funds (eg Blibli/GDP Ventures), startups begun as an Indonesian/foreign JV (eg Rakuten Belanja), startups begun by Indonesian corporates launching digital businesses (eg Gramediana/Kompas), or startups funded by foreign investors (eg Lazada).</li>\r\n</ul>\r\n<p style=\"text-align: justify;\">A common view among investors is that one of the most difficult challenges in tech investing in Indonesia is finding the right skills and experience in both the technical and commercial managers of the business. This perceived shortage of skilled resources has directly led to the formation of the numerous incubators in Indonesia, and has also motivated local corporates to form joint ventures with foreign internet companies rather than trying to build their own technology platforms.</p>\r\n<a title=\"Startup environment\" href=\"http://stage.redwing-asia.com/startups/startup-environment/\">[Read the full piece]</a>','The startup environment in Indonesia','','publish','open','open','','the-startup-environment-in-indonesia','','','2013-03-15 03:03:35','2013-03-15 03:03:35','',0,'http://stage.redwing-asia.com/?p=1948',0,'post','',0),(1949,1,'2013-03-14 14:31:41','2013-03-14 14:31:41','<img class=\"alignnone size-full wp-image-1529\" alt=\"Page - Startups - Startup environment graphic 3\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Startups-Startup-environment-graphic-3.jpg\" width=\"700\" height=\"270\" />\n<h4 style=\"text-align: justify;\">Like other tech sectors around the world, Indonesia has already been through a number of phases of hype, boom and realism. At the moment it\'s in a realism phase, with a number of larger investors entering the market to build companies which can take advantage of long-term growth trends. In parallel with this, the Indonesian tech ecosystem continues to mature, with incubators, startup communities, tech news sites and regular business plan competitions all serving to raise the level of capability among the tech entrepreneurs.</h4>\n<h5 style=\"text-align: justify;\">A rapidly-maturing sector that supports three distinct types of startups</h5>\n<p style=\"text-align: justify;\">The tech sector in Indonesia began a sustained growth drive in 2010, signalled by the formation of the first Indonesia-focused VCs and a significant rise in the volume of investment deals. With the formation of a number of startup incubators in 2011, plus greater sector awareness through online news sites such as Daily Social, TechInAsia and e27, a healthy ecosystem has been firmly established.</p>\n<p style=\"text-align: justify;\">Startups in Indonesia come into being through four distinct routes:</p>\n\n<ul>\n	<li style=\"text-align: justify;\"><strong>Independent incubation</strong>: independent incubators such as Ideosource, Batavia and InvestIdea provide a mix of funding, mentoring and facilities to help entrepreneurs turn their ideas into potential businesses.</li>\n</ul>\n<ul>\n	<li style=\"text-align: justify;\"><strong>Corporate incubation</strong>: incubators tied to larger companies or funds (examples are Grupara/Medco, MerahPutih/GDP Ventures and Mega Media/Indosat) all provide startups with similar services to the independent incubators, but with a potential route into a larger funding entity within the same group.</li>\n</ul>\n<ul>\n	<li style=\"text-align: justify;\"><strong>Bootstrapping</strong>: self-sufficient founders can pull together the right mix of skills and initial funding themselves. Typically the founders will be:</li>\n</ul>\n<p style=\"padding-left: 30px;\">- Entrepreneurs on their second or third Indonesian startup (increasingly common these days)</p>\n<p style=\"padding-left: 30px;\">- Indonesians returning home after studying and working abroad</p>\n<p style=\"padding-left: 30px;\">- Local graduates who want to try something outside the corporate life</p>\n<p style=\"padding-left: 30px;\">- Foreigners who come to Indonesia and discover a tech opportunity</p>\n<p style=\"padding-left: 30px;\">- Foreigners with an overseas website who find that many of their early users are from Indonesia</p>\n\n<ul>\n	<li style=\"text-align: justify;\"><strong>Well-funded startups</strong>: these take a variety of forms, from startups begun by investment funds (eg Blibli/GDP Ventures), startups begun as an Indonesian/foreign JV (eg Rakuten Belanja), startups begun by Indonesian corporates launching digital businesses (eg Gramediana/Kompas), or startups funded by foreign investors (eg Lazada).</li>\n</ul>\n<p style=\"text-align: justify;\">A common view among investors is that one of the most difficult challenges in tech investing in Indonesia is finding the right skills and experience in both the technical and commercial managers of the business. This perceived shortage of skilled resources has directly led to the formation of the numerous incubators in Indonesia, and has also motivated local corporates to form joint ventures with foreign internet companies rather than trying to build their own technology platforms.</p>\n\n<h5>A shift in focus from building user bases to defining sustainable business models</h5>\n<p style=\"text-align: justify;\">The focus of many startups around 2010 was on rapidly building a large base of users. With 220 million mobile phone subscribers in Indonesia at the time and widespread prediction of a mobile advertising explosion, it looked like significant revenues could be generated from eyeballs and clicks.</p>\n<p style=\"text-align: justify;\">However, apart from a brief boom in premium sms services which ended abruptly during the infamous Black October (when the regulators called an immediate halt to premium sms billing practices), most of these startups went under as the mobile advertising revenues remained a distant promise, in Indonesia and in other mobile markets.</p>\n<p style=\"text-align: justify;\"><img class=\"size-full wp-image-1531 alignleft\" style=\"margin-right: 20px;\" alt=\"Page - Startups - Business Model Generation book cover\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Startups-Business-Model-Generation-book-cover.png\" width=\"200\" height=\"158\" />Out of their wreckage emerged a cohort of online businesses which had pursued a more diverse (or more realistic) range of revenue sources from the start, together with a realisation within the tech sector that there were larger rewards to be gained from building sustainable long-term business models than from targeting hit-and-run opportunities.</p>\n<p style=\"text-align: justify;\">The current focus of the Indonesian startups is therefore to define and implement business models which have clear routes to profitability and which target clearly-defined needs among Indonesian (and sometimes overseas) customers. A list of the types of ventures being pursued can be found <a title=\"Key startup sectors\" href=\"http://redwing-asia.com/startups/key-startup-sectors/\">here</a>.</p>\n\n<h5 style=\"text-align: justify;\"></h5>\n<h5 style=\"text-align: justify;\">The broader startup environment in Indonesia</h5>\n<p style=\"text-align: justify;\">Tech startups are given little support by the Indonesian government, and the administrative procedures to set up a new company are famously inefficient (it typically takes 2-3 rather painful months of work to register a corporation in Indonesia versus a few days via an online procedure in Singapore).</p>\n<p style=\"text-align: justify;\">In addition, local startups are given no protection from foreign players, with the tech market being completely open from a regulatory perspective.</p>\n<p style=\"text-align: justify;\">However, foreign investors quickly find that there are other challenges, ranging from understanding the Indonesian user through to navigating through the Indonesian administrative procedures, so an open regulatory market by no means implies that Indonesian companies are powerless against foreign competition.</p>\n<p style=\"text-align: justify;\">Finally, although Indonesia is at heart a very entrepreneurial country, with small and medium businesses representing 99% of all companies, it has not yet got to the point where startups are broadly seen as being cool places to work. Many graduates leave university with the goal of finding a secure job in a large corporation, and startups are often perceived as risky rather than exciting.</p>\n<p style=\"text-align: justify;\">Of course, this will all change in a heartbeat when Indonesia\'s equivalents of Marc Andreesen, Jeff Bezos and Steve Jobs make their first millions, and the architects of Indonesia\'s tech boom come in to the public eye.</p>\n<p style=\"text-align: justify;\"></p>','Startup environment','','inherit','closed','open','','168-autosave','','','2013-03-14 14:31:41','2013-03-14 14:31:41','',168,'http://stage.redwing-asia.com/uncategorized/168-autosave/',0,'revision','',0),(1950,1,'2013-03-14 14:33:04','2013-03-14 14:33:04','','Post - startup environment graphic','','inherit','closed','open','','post-startup-environment-graphic','','','2013-03-14 14:33:04','2013-03-14 14:33:04','',1948,'http://stage.redwing-asia.com/wp-content/uploads/Post-startup-environment-graphic.jpg',0,'attachment','image/jpeg',0),(1951,1,'2013-03-14 14:33:32','2013-03-14 14:33:32','<a href=\"http://stage.redwing-asia.com/?attachment_id=1950\" rel=\"attachment wp-att-1950\"><img class=\"alignnone size-full wp-image-1950\" alt=\"Post - startup environment graphic\" src=\"http://stage.redwing-asia.com/wp-content/uploads/Post-startup-environment-graphic.jpg\" width=\"700\" height=\"180\" /></a>\n<h4>Like other tech sectors around the world, Indonesia has already been through a number of phases of hype, boom and realism. At the moment it\'s in a realism phase, with a number of larger investors entering the market to build companies which can take advantage of long-term growth trends. In parallel with this, the Indonesian tech ecosystem continues to mature, with incubators, startup communities, tech news sites and regular business plan competitions all serving to raise the level of capability among the tech entrepreneurs.</h4>\n<h5>A rapidly-maturing sector that supports three distinct types of startups</h5>\nThe tech sector in Indonesia began a sustained growth drive in 2010, signalled by the formation of the first Indonesia-focused VCs and a significant rise in the volume of investment deals. With the formation of a number of startup incubators in 2011, plus greater sector awareness through online news sites such as Daily Social, TechInAsia and e27, a healthy ecosystem has been firmly established.\n\nStartups in Indonesia come into being through four distinct routes:\n<ul>\n	<li><strong>Independent incubation</strong>: independent incubators such as Ideosource, Batavia and InvestIdea provide a mix of funding, mentoring and facilities to help entrepreneurs turn their ideas into potential businesses.</li>\n</ul>\n<ul>\n	<li><strong>Corporate incubation</strong>: incubators tied to larger companies or funds (examples are Grupara/Medco, MerahPutih/GDP Ventures and Mega Media/Indosat) all provide startups with similar services to the independent incubators, but with a potential route into a larger funding entity within the same group.</li>\n</ul>\n<ul>\n	<li><strong>Bootstrapping</strong>: self-sufficient founders can pull together the right mix of skills and initial funding themselves. Typically the founders will be:</li>\n</ul>\n- Entrepreneurs on their second or third Indonesian startup (increasingly common these days)\n\n- Indonesians returning home after studying and working abroad\n\n- Local graduates who want to try something outside the corporate life\n\n- Foreigners who come to Indonesia and discover a tech opportunity\n\n- Foreigners with an overseas website who find that many of their early users are from Indonesia\n<ul>\n	<li><strong>Well-funded startups</strong>: these take a variety of forms, from startups begun by investment funds (eg Blibli/GDP Ventures), startups begun as an Indonesian/foreign JV (eg Rakuten Belanja), startups begun by Indonesian corporates launching digital businesses (eg Gramediana/Kompas), or startups funded by foreign investors (eg Lazada).</li>\n</ul>\nA common view among investors is that one of the most difficult challenges in tech investing in Indonesia is finding the right skills and experience in both the technical and commercial managers of the business. This perceived shortage of skilled resources has directly led to the formation of the numerous incubators in Indonesia, and has also motivated local corporates to form joint ventures with foreign internet companies rather than trying to build their own technology platforms.\n<h5>A shift in focus from building user bases to defining sustainable business models</h5>\nThe focus of many startups around 2010 was on rapidly building a large base of users. With 220 million mobile phone subscribers in Indonesia at the time and widespread prediction of a mobile advertising explosion, it looked like significant revenues could be generated from eyeballs and clicks.\n\nHowever, apart from a brief boom in premium sms services which ended abruptly during the infamous Black October (when the regulators called an immediate halt to premium sms billing practices), most of these startups went under as the mobile advertising revenues remained a distant promise, in Indonesia and in other mobile markets.\n\n<img alt=\"Page - Startups - Business Model Generation book cover\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Startups-Business-Model-Generation-book-cover.png\" width=\"200\" height=\"158\" />Out of their wreckage emerged a cohort of online businesses which had pursued a more diverse (or more realistic) range of revenue sources from the start, together with a realisation within the tech sector that there were larger rewards to be gained from building sustainable long-term business models than from targeting hit-and-run opportunities.\n\nThe current focus of the Indonesian startups is therefore to define and implement business models which have clear routes to profitability and which target clearly-defined needs among Indonesian (and sometimes overseas) customers. A list of the types of ventures being pursued can be found <a title=\"Key startup sectors\" href=\"http://redwing-asia.com/startups/key-startup-sectors/\">here</a>.\n<h5></h5>\n<h5>The broader startup environment in Indonesia</h5>\nTech startups are given little support by the Indonesian government, and the administrative procedures to set up a new company are famously inefficient (it typically takes 2-3 rather painful months of work to register a corporation in Indonesia versus a few days via an online procedure in Singapore).\n\nIn addition, local startups are given no protection from foreign players, with the tech market being completely open from a regulatory perspective.\n\nHowever, foreign investors quickly find that there are other challenges, ranging from understanding the Indonesian user through to navigating through the Indonesian administrative procedures, so an open regulatory market by no means implies that Indonesian companies are powerless against foreign competition.\n\nFinally, although Indonesia is at heart a very entrepreneurial country, with small and medium businesses representing 99% of all companies, it has not yet got to the point where startups are broadly seen as being cool places to work. Many graduates leave university with the goal of finding a secure job in a large corporation, and startups are often perceived as risky rather than exciting.\n\nOf course, this will all change in a heartbeat when Indonesia\'s equivalents of Marc Andreesen, Jeff Bezos and Steve Jobs make their first millions, and the architects of Indonesia\'s tech boom come in to the public eye.\n\n&nbsp;','The startup environment in Indonesia','','inherit','closed','open','','1948-revision','','','2013-03-14 14:33:32','2013-03-14 14:33:32','',1948,'http://stage.redwing-asia.com/uncategorized/1948-revision/',0,'revision','',0),(1952,1,'2013-03-14 14:33:56','2013-03-14 14:33:56','<a href=\"http://stage.redwing-asia.com/?attachment_id=1950\" rel=\"attachment wp-att-1950\"><img class=\"alignnone size-full wp-image-1950\" alt=\"Post - startup environment graphic\" src=\"http://stage.redwing-asia.com/wp-content/uploads/Post-startup-environment-graphic.jpg\" width=\"700\" height=\"180\" /></a>\r\n<h4>Like other tech sectors around the world, Indonesia has already been through a number of phases of hype, boom and realism. At the moment it\'s in a realism phase, with a number of larger investors entering the market to build companies which can take advantage of long-term growth trends. In parallel with this, the Indonesian tech ecosystem continues to mature, with incubators, startup communities, tech news sites and regular business plan competitions all serving to raise the level of capability among the tech entrepreneurs.</h4>\r\n<h5>A rapidly-maturing sector that supports three distinct types of startups</h5>\r\nThe tech sector in Indonesia began a sustained growth drive in 2010, signalled by the formation of the first Indonesia-focused VCs and a significant rise in the volume of investment deals. With the formation of a number of startup incubators in 2011, plus greater sector awareness through online news sites such as Daily Social, TechInAsia and e27, a healthy ecosystem has been firmly established.\r\n\r\nStartups in Indonesia come into being through four distinct routes:\r\n<ul>\r\n	<li><strong>Independent incubation</strong>: independent incubators such as Ideosource, Batavia and InvestIdea provide a mix of funding, mentoring and facilities to help entrepreneurs turn their ideas into potential businesses.</li>\r\n</ul>\r\n<ul>\r\n	<li><strong>Corporate incubation</strong>: incubators tied to larger companies or funds (examples are Grupara/Medco, MerahPutih/GDP Ventures and Mega Media/Indosat) all provide startups with similar services to the independent incubators, but with a potential route into a larger funding entity within the same group.</li>\r\n</ul>\r\n<ul>\r\n	<li><strong>Bootstrapping</strong>: self-sufficient founders can pull together the right mix of skills and initial funding themselves. Typically the founders will be:</li>\r\n</ul>\r\n- Entrepreneurs on their second or third Indonesian startup (increasingly common these days)\r\n\r\n- Indonesians returning home after studying and working abroad\r\n\r\n- Local graduates who want to try something outside the corporate life\r\n\r\n- Foreigners who come to Indonesia and discover a tech opportunity\r\n\r\n- Foreigners with an overseas website who find that many of their early users are from Indonesia\r\n<ul>\r\n	<li><strong>Well-funded startups</strong>: these take a variety of forms, from startups begun by investment funds (eg Blibli/GDP Ventures), startups begun as an Indonesian/foreign JV (eg Rakuten Belanja), startups begun by Indonesian corporates launching digital businesses (eg Gramediana/Kompas), or startups funded by foreign investors (eg Lazada).</li>\r\n</ul>\r\nA common view among investors is that one of the most difficult challenges in tech investing in Indonesia is finding the right skills and experience in both the technical and commercial managers of the business. This perceived shortage of skilled resources has directly led to the formation of the numerous incubators in Indonesia, and has also motivated local corporates to form joint ventures with foreign internet companies rather than trying to build their own technology platforms.\r\n<h5>A shift in focus from building user bases to defining sustainable business models</h5>\r\nThe focus of many startups around 2010 was on rapidly building a large base of users. With 220 million mobile phone subscribers in Indonesia at the time and widespread prediction of a mobile advertising explosion, it looked like significant revenues could be generated from eyeballs and clicks.\r\n\r\nHowever, apart from a brief boom in premium sms services which ended abruptly during the infamous Black October (when the regulators called an immediate halt to premium sms billing practices), most of these startups went under as the mobile advertising revenues remained a distant promise, in Indonesia and in other mobile markets.\r\n\r\n<img alt=\"Page - Startups - Business Model Generation book cover\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Startups-Business-Model-Generation-book-cover.png\" width=\"200\" height=\"158\" />Out of their wreckage emerged a cohort of online businesses which had pursued a more diverse (or more realistic) range of revenue sources from the start, together with a realisation within the tech sector that there were larger rewards to be gained from building sustainable long-term business models than from targeting hit-and-run opportunities.\r\n\r\nThe current focus of the Indonesian startups is therefore to define and implement business models which have clear routes to profitability and which target clearly-defined needs among Indonesian (and sometimes overseas) customers. A list of the types of ventures being pursued can be found <a title=\"Key startup sectors\" href=\"http://redwing-asia.com/startups/key-startup-sectors/\">here</a>.\r\n<h5></h5>\r\n<h5>The broader startup environment in Indonesia</h5>\r\nTech startups are given little support by the Indonesian government, and the administrative procedures to set up a new company are famously inefficient (it typically takes 2-3 rather painful months of work to register a corporation in Indonesia versus a few days via an online procedure in Singapore).\r\n\r\nIn addition, local startups are given no protection from foreign players, with the tech market being completely open from a regulatory perspective.\r\n\r\nHowever, foreign investors quickly find that there are other challenges, ranging from understanding the Indonesian user through to navigating through the Indonesian administrative procedures, so an open regulatory market by no means implies that Indonesian companies are powerless against foreign competition.\r\n\r\nFinally, although Indonesia is at heart a very entrepreneurial country, with small and medium businesses representing 99% of all companies, it has not yet got to the point where startups are broadly seen as being cool places to work. Many graduates leave university with the goal of finding a secure job in a large corporation, and startups are often perceived as risky rather than exciting.\r\n\r\nOf course, this will all change in a heartbeat when Indonesia\'s equivalents of Marc Andreesen, Jeff Bezos and Steve Jobs make their first millions, and the architects of Indonesia\'s tech boom come in to the public eye.\r\n\r\n&nbsp;','The startup environment in Indonesia','','inherit','closed','open','','1948-revision-2','','','2013-03-14 14:33:56','2013-03-14 14:33:56','',1948,'http://stage.redwing-asia.com/uncategorized/1948-revision-2/',0,'revision','',0),(1953,1,'2013-03-14 14:35:05','2013-03-14 14:35:05','<a href=\"http://stage.redwing-asia.com/startup-posts/the-startup-environment-in-indonesia/attachment/post-startup-environment-graphic/\" rel=\"attachment wp-att-1950\"><img class=\"alignnone size-full wp-image-1950\" alt=\"Post - startup environment graphic\" src=\"http://stage.redwing-asia.com/wp-content/uploads/Post-startup-environment-graphic.jpg\" width=\"700\" height=\"180\" /></a>\n<h4>Like other tech sectors around the world, Indonesia has already been through a number of phases of hype, boom and realism. At the moment it\'s in a realism phase, with a number of larger investors entering the market to build companies which can take advantage of long-term growth trends. In parallel with this, the Indonesian tech ecosystem continues to mature, with incubators, startup communities, tech news sites and regular business plan competitions all serving to raise the level of capability among the tech entrepreneurs.</h4>\n<h5>A rapidly-maturing sector that supports three distinct types of startups</h5>\nThe tech sector in Indonesia began a sustained growth drive in 2010, signalled by the formation of the first Indonesia-focused VCs and a significant rise in the volume of investment deals. With the formation of a number of startup incubators in 2011, plus greater sector awareness through online news sites such as Daily Social, TechInAsia and e27, a healthy ecosystem has been firmly established.\n\nStartups in Indonesia come into being through four distinct routes:\n<ul>\n	<li><strong>Independent incubation</strong>: independent incubators such as Ideosource, Batavia and InvestIdea provide a mix of funding, mentoring and facilities to help entrepreneurs turn their ideas into potential businesses.</li>\n</ul>\n<ul>\n	<li><strong>Corporate incubation</strong>: incubators tied to larger companies or funds (examples are Grupara/Medco, MerahPutih/GDP Ventures and Mega Media/Indosat) all provide startups with similar services to the independent incubators, but with a potential route into a larger funding entity within the same group.</li>\n</ul>\n<ul>\n	<li><strong>Bootstrapping</strong>: self-sufficient founders can pull together the right mix of skills and initial funding themselves. Typically the founders will be:</li>\n</ul>\n<p style=\"padding-left: 60px;\">- Entrepreneurs on their second or third Indonesian startup (increasingly common these days)</p>\n<p style=\"padding-left: 60px;\">- Indonesians returning home after studying and working abroad</p>\n<p style=\"padding-left: 60px;\">- Local graduates who want to try something outside the corporate life</p>\n<p style=\"padding-left: 60px;\">- Foreigners who come to Indonesia and discover a tech opportunity</p>\n<p style=\"padding-left: 60px;\">- Foreigners with an overseas website who find that many of their early users are from Indonesia</p>\n\n<ul>\n	<li><strong>Well-funded startups</strong>: these take a variety of forms, from startups begun by investment funds (eg Blibli/GDP Ventures), startups begun as an Indonesian/foreign JV (eg Rakuten Belanja), startups begun by Indonesian corporates launching digital businesses (eg Gramediana/Kompas), or startups funded by foreign investors (eg Lazada).</li>\n</ul>\nA common view among investors is that one of the most difficult challenges in tech investing in Indonesia is finding the right skills and experience in both the technical and commercial managers of the business. This perceived shortage of skilled resources has directly led to the formation of the numerous incubators in Indonesia, and has also motivated local corporates to form joint ventures with foreign internet companies rather than trying to build their own technology platforms.\n\n[Read the full piece]','The startup environment in Indonesia','','inherit','closed','open','','1948-autosave','','','2013-03-14 14:35:05','2013-03-14 14:35:05','',1948,'http://stage.redwing-asia.com/uncategorized/1948-autosave/',0,'revision','',0),(1954,1,'2013-03-14 14:33:56','2013-03-14 14:33:56','<a href=\"http://stage.redwing-asia.com/startup-posts/the-startup-environment-in-indonesia/attachment/post-startup-environment-graphic/\" rel=\"attachment wp-att-1950\"><img class=\"alignnone size-full wp-image-1950\" alt=\"Post - startup environment graphic\" src=\"http://stage.redwing-asia.com/wp-content/uploads/Post-startup-environment-graphic.jpg\" width=\"700\" height=\"180\" /></a>\r\n<h4>Like other tech sectors around the world, Indonesia has already been through a number of phases of hype, boom and realism. At the moment it\'s in a realism phase, with a number of larger investors entering the market to build companies which can take advantage of long-term growth trends. In parallel with this, the Indonesian tech ecosystem continues to mature, with incubators, startup communities, tech news sites and regular business plan competitions all serving to raise the level of capability among the tech entrepreneurs.</h4>\r\n<h5>A rapidly-maturing sector that supports three distinct types of startups</h5>\r\nThe tech sector in Indonesia began a sustained growth drive in 2010, signalled by the formation of the first Indonesia-focused VCs and a significant rise in the volume of investment deals. With the formation of a number of startup incubators in 2011, plus greater sector awareness through online news sites such as Daily Social, TechInAsia and e27, a healthy ecosystem has been firmly established.\r\n\r\nStartups in Indonesia come into being through four distinct routes:\r\n<ul>\r\n	<li><strong>Independent incubation</strong>: independent incubators such as Ideosource, Batavia and InvestIdea provide a mix of funding, mentoring and facilities to help entrepreneurs turn their ideas into potential businesses.</li>\r\n</ul>\r\n<ul>\r\n	<li><strong>Corporate incubation</strong>: incubators tied to larger companies or funds (examples are Grupara/Medco, MerahPutih/GDP Ventures and Mega Media/Indosat) all provide startups with similar services to the independent incubators, but with a potential route into a larger funding entity within the same group.</li>\r\n</ul>\r\n<ul>\r\n	<li><strong>Bootstrapping</strong>: self-sufficient founders can pull together the right mix of skills and initial funding themselves. Typically the founders will be:</li>\r\n</ul>\r\n- Entrepreneurs on their second or third Indonesian startup (increasingly common these days)\r\n\r\n- Indonesians returning home after studying and working abroad\r\n\r\n- Local graduates who want to try something outside the corporate life\r\n\r\n- Foreigners who come to Indonesia and discover a tech opportunity\r\n\r\n- Foreigners with an overseas website who find that many of their early users are from Indonesia\r\n<ul>\r\n	<li><strong>Well-funded startups</strong>: these take a variety of forms, from startups begun by investment funds (eg Blibli/GDP Ventures), startups begun as an Indonesian/foreign JV (eg Rakuten Belanja), startups begun by Indonesian corporates launching digital businesses (eg Gramediana/Kompas), or startups funded by foreign investors (eg Lazada).</li>\r\n</ul>\r\nA common view among investors is that one of the most difficult challenges in tech investing in Indonesia is finding the right skills and experience in both the technical and commercial managers of the business. This perceived shortage of skilled resources has directly led to the formation of the numerous incubators in Indonesia, and has also motivated local corporates to form joint ventures with foreign internet companies rather than trying to build their own technology platforms.\r\n<h5>A shift in focus from building user bases to defining sustainable business models</h5>\r\nThe focus of many startups around 2010 was on rapidly building a large base of users. With 220 million mobile phone subscribers in Indonesia at the time and widespread prediction of a mobile advertising explosion, it looked like significant revenues could be generated from eyeballs and clicks.\r\n\r\nHowever, apart from a brief boom in premium sms services which ended abruptly during the infamous Black October (when the regulators called an immediate halt to premium sms billing practices), most of these startups went under as the mobile advertising revenues remained a distant promise, in Indonesia and in other mobile markets.\r\n\r\n<img alt=\"Page - Startups - Business Model Generation book cover\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Startups-Business-Model-Generation-book-cover.png\" width=\"200\" height=\"158\" />Out of their wreckage emerged a cohort of online businesses which had pursued a more diverse (or more realistic) range of revenue sources from the start, together with a realisation within the tech sector that there were larger rewards to be gained from building sustainable long-term business models than from targeting hit-and-run opportunities.\r\n\r\nThe current focus of the Indonesian startups is therefore to define and implement business models which have clear routes to profitability and which target clearly-defined needs among Indonesian (and sometimes overseas) customers. A list of the types of ventures being pursued can be found <a title=\"Key startup sectors\" href=\"http://redwing-asia.com/startups/key-startup-sectors/\">here</a>.\r\n<h5></h5>\r\n<h5>The broader startup environment in Indonesia</h5>\r\nTech startups are given little support by the Indonesian government, and the administrative procedures to set up a new company are famously inefficient (it typically takes 2-3 rather painful months of work to register a corporation in Indonesia versus a few days via an online procedure in Singapore).\r\n\r\nIn addition, local startups are given no protection from foreign players, with the tech market being completely open from a regulatory perspective.\r\n\r\nHowever, foreign investors quickly find that there are other challenges, ranging from understanding the Indonesian user through to navigating through the Indonesian administrative procedures, so an open regulatory market by no means implies that Indonesian companies are powerless against foreign competition.\r\n\r\nFinally, although Indonesia is at heart a very entrepreneurial country, with small and medium businesses representing 99% of all companies, it has not yet got to the point where startups are broadly seen as being cool places to work. Many graduates leave university with the goal of finding a secure job in a large corporation, and startups are often perceived as risky rather than exciting.\r\n\r\nOf course, this will all change in a heartbeat when Indonesia\'s equivalents of Marc Andreesen, Jeff Bezos and Steve Jobs make their first millions, and the architects of Indonesia\'s tech boom come in to the public eye.\r\n\r\n&nbsp;','The startup environment in Indonesia','','inherit','closed','open','','1948-revision-3','','','2013-03-14 14:33:56','2013-03-14 14:33:56','',1948,'http://stage.redwing-asia.com/uncategorized/1948-revision-3/',0,'revision','',0),(1955,1,'2013-03-14 14:35:21','2013-03-14 14:35:21','<a href=\"http://stage.redwing-asia.com/startup-posts/the-startup-environment-in-indonesia/attachment/post-startup-environment-graphic/\" rel=\"attachment wp-att-1950\"><img class=\"alignnone size-full wp-image-1950\" alt=\"Post - startup environment graphic\" src=\"http://stage.redwing-asia.com/wp-content/uploads/Post-startup-environment-graphic.jpg\" width=\"700\" height=\"180\" /></a>\r\n<h4>Like other tech sectors around the world, Indonesia has already been through a number of phases of hype, boom and realism. At the moment it\'s in a realism phase, with a number of larger investors entering the market to build companies which can take advantage of long-term growth trends. In parallel with this, the Indonesian tech ecosystem continues to mature, with incubators, startup communities, tech news sites and regular business plan competitions all serving to raise the level of capability among the tech entrepreneurs.</h4>\r\n<h5>A rapidly-maturing sector that supports three distinct types of startups</h5>\r\nThe tech sector in Indonesia began a sustained growth drive in 2010, signalled by the formation of the first Indonesia-focused VCs and a significant rise in the volume of investment deals. With the formation of a number of startup incubators in 2011, plus greater sector awareness through online news sites such as Daily Social, TechInAsia and e27, a healthy ecosystem has been firmly established.\r\n\r\nStartups in Indonesia come into being through four distinct routes:\r\n<ul>\r\n	<li><strong>Independent incubation</strong>: independent incubators such as Ideosource, Batavia and InvestIdea provide a mix of funding, mentoring and facilities to help entrepreneurs turn their ideas into potential businesses.</li>\r\n</ul>\r\n<ul>\r\n	<li><strong>Corporate incubation</strong>: incubators tied to larger companies or funds (examples are Grupara/Medco, MerahPutih/GDP Ventures and Mega Media/Indosat) all provide startups with similar services to the independent incubators, but with a potential route into a larger funding entity within the same group.</li>\r\n</ul>\r\n<ul>\r\n	<li><strong>Bootstrapping</strong>: self-sufficient founders can pull together the right mix of skills and initial funding themselves. Typically the founders will be:</li>\r\n</ul>\r\n<p style=\"padding-left: 60px;\">- Entrepreneurs on their second or third Indonesian startup (increasingly common these days)</p>\r\n<p style=\"padding-left: 60px;\">- Indonesians returning home after studying and working abroad</p>\r\n<p style=\"padding-left: 60px;\">- Local graduates who want to try something outside the corporate life</p>\r\n<p style=\"padding-left: 60px;\">- Foreigners who come to Indonesia and discover a tech opportunity</p>\r\n<p style=\"padding-left: 60px;\">- Foreigners with an overseas website who find that many of their early users are from Indonesia</p>\r\n\r\n<ul>\r\n	<li><strong>Well-funded startups</strong>: these take a variety of forms, from startups begun by investment funds (eg Blibli/GDP Ventures), startups begun as an Indonesian/foreign JV (eg Rakuten Belanja), startups begun by Indonesian corporates launching digital businesses (eg Gramediana/Kompas), or startups funded by foreign investors (eg Lazada).</li>\r\n</ul>\r\nA common view among investors is that one of the most difficult challenges in tech investing in Indonesia is finding the right skills and experience in both the technical and commercial managers of the business. This perceived shortage of skilled resources has directly led to the formation of the numerous incubators in Indonesia, and has also motivated local corporates to form joint ventures with foreign internet companies rather than trying to build their own technology platforms.\r\n\r\n<a title=\"Startup environment\" href=\"http://stage.redwing-asia.com/startups/startup-environment/\">[Read the full piece]</a>','The startup environment in Indonesia','','inherit','closed','open','','1948-revision-4','','','2013-03-14 14:35:21','2013-03-14 14:35:21','',1948,'http://stage.redwing-asia.com/uncategorized/1948-revision-4/',0,'revision','',0),(1956,1,'2013-03-14 14:29:06','2013-03-14 14:29:06','<a href=\"http://stage.redwing-asia.com/investor-posts/why-invest-in-the-indonesian-tech-sector/attachment/post-why-invest-in-indonesia-graphic/\" rel=\"attachment wp-att-1932\"><img class=\"alignnone size-full wp-image-1932\" alt=\"Post - Why invest in indonesia graphic\" src=\"http://stage.redwing-asia.com/wp-content/uploads/Post-Why-invest-in-indonesia-graphic.jpg\" width=\"700\" height=\"180\" /></a>\r\n<h4 style=\"text-align: justify;\">Humbler and quieter than the flashier economic stars of China and India, Indonesia offers spectacular opportunities for tech investors wanting to get in on the ground level of an economy that is expected to exceed the size of Germany and the UK within two decades. Indonesia is already one of the world’s top five markets in mobile subscribers, Facebook users, Twitter users and mobile ads, yet we still believe it can deliver a number of surprises on the upside. And with a burgeoning middle class and an average age of 28, its highly favourable long-term demographics mean that tech opportunities will abound.</h4>\r\n<h5 style=\"text-align: justify;\"><b>Rapid growth driven by strong fundamentals</b></h5>\r\n<p style=\"text-align: justify;\">By any measures, all the tech numbers for Indonesia look good: its base of 55 million internet users today (larger than Korea’s) will grow rapidly to 125 million users by 2015 (more than Japan’s). And in parallel with this expansion, everything from e-commerce to online media to B2B applications will grow rapidly.</p>\r\n<p style=\"text-align: justify;\">This growth is driven by one of the world’s most vibrant mobile markets: Indonesia’s huge and growing mobile market now has 278 million subscribers, 15% of mobile users already have smartphones, and the mobile ad market delivered around 200 <i>billion</i> impressions last year, second only to the US. On top of this, Indonesia is in the top five countries for both Facebook and Twitter usage, as well as having the world’s most active Twitter city, Jakarta.</p>\r\n<p style=\"text-align: justify;\">Sitting behind all these numbers is a well-managed economy whose growth from 2012-2107 will only be exceeded by China among the world’s major economies. Indeed, over the past decade or so, the Indonesian economy has been so robust that it sailed through the 2008 financial crisis with barely a blip on growth.</p>\r\n<p style=\"text-align: justify;\">But these numbers – while hugely positive in themselves – sit on top of a far more exciting story: Indonesia’s internet market is likely to offer some of the biggest opportunities for tech investors in Asia over the coming decade.</p>\r\n\r\n<h5 style=\"text-align: justify;\"><b>A huge consumer market that experiences step-change growth spurts</b></h5>\r\n<p style=\"text-align: justify;\">Indonesia’s middle-class is already big, and it\'s booming. It will double over the next seven years to 85 million people, and by 2030 there will be 135 million middle-class consumers. At that point, Indonesia’s economy will be the 7th largest in the world, exceeding the economies of both Germany and the UK.</p>\r\n<p style=\"text-align: justify;\">And to put the size of today\'s Indonesia into perspective, its dynamic, fast-growing capital Jakarta has a population and GDP equivalent to that of the whole of Malaysia.</p>\r\n<p style=\"text-align: justify;\">But this expansion of the middle-class is only half the story – the other half is technology affordability. Indonesia is a young, tech-savvy nation, full of people who are extremely enthusiastic to own and use the latest gadgets and technologies. The main barrier to ownership is not interest or desire, it is price.</p>\r\n<a title=\"Why invest in the Indonesian tech sector?\" href=\"http://stage.redwing-asia.com/why-indonesia/\">[Read the full article]</a>','Why invest in Indonesia?','','inherit','closed','open','','1929-revision-6','','','2013-03-14 14:29:06','2013-03-14 14:29:06','',1929,'http://stage.redwing-asia.com/uncategorized/1929-revision-6/',0,'revision','',0),(1957,1,'2013-03-14 14:29:31','2013-03-14 14:29:31','<a href=\"http://stage.redwing-asia.com/investor-posts/the-investment-environment-in-indonesia-tech/attachment/post-investment-environment-graphic/\" rel=\"attachment wp-att-1942\"><img class=\"alignnone size-full wp-image-1942\" alt=\"Post - investment environment graphic\" src=\"http://stage.redwing-asia.com/wp-content/uploads/Post-investment-environment-graphic.jpg\" width=\"700\" height=\"180\" /></a>\r\n<h4>Indonesia\'s tech sector had a frothy 2010 and 2011, but many startups realised in 2012 that trying to monetise eyeballs and clicks is a tough route to profitability. Armed with a new perspective, the sector is now more focused on sustainable business models and delivering breakout value to customers. As the investment environment also matures, multiple opportunities will emerge for investors willing to be flexible in terms of investment structures, and who are prepared to put in business expertise on top of their capital.</h4>\r\n<h5><b>The initial hype phase is over…now it’s time to get serious</b></h5>\r\nLike the early days of the Silicon Valley tech boom in the 1990s, the Indonesian tech sector’s first act was characterised by a oversupply of hype and an undersupply of good solid business models. Too many startups placed their faith in being able to monetise a large user base at some unspecified point in the future, and as it became clear during 2011 and 2012 that eyeballs and clicks might not be enough, a Darwinian shakeout took place.\r\n\r\nThis was a very good thing.\r\n\r\nIndonesia now has a much healthier tech sector, led by a number of rapidly-growing online companies who have clearly defined their target segments and who have begun to demonstrate a real ability to make money. Following along behind them is the second generation of Indonesian startups – more focused, more realistic, and far more fixated on delivering services which add real value to the offline and online lives of consumers and businesses.\r\n\r\nAnd as the startups change, so do the investors who fund them. Gone are the days of throwing a hundred thousand dollars at a Groupon clone in the hope that it will pick up enough percentage points of market share to flip to a competitor and exit. In its place is an ecosystem of angel funders, incubators, early-stage funds, mid-stage funds and technology providers who are helping to enhance the technical, marketing and business skills of the tech entrepreneurs so that they can build companies that can thrive and scale.\r\n\r\nThe next three years will be very exciting times in Indonesia. Customer bases will grow. E-commerce will start to boom. Online payment options will multiply. Unique local online services will emerge. Underpinning all this will be a more methodical approach to managing the startups, driven as much by the discipline of business metrics as by the thrill of new technologies.\r\n<h5><b>Indonesian startups are relatively young, and need active investors</b></h5>\r\nThe top Indonesian sites today have market values of around US$100 million. While billion-dollar internet companies do not yet exist in Indonesia, more $100m tech companies will emerge over the next three years. These valuations will partly be due to the rising user base (internet users will grow from 55m today to 125m by 2015), partly due to higher levels of online spending by the growing Indonesian middle class, and partly due to improved business focus and discipline.\r\n\r\nBut the raw fact is that this is an investment market in the relatively early days of its development. Today there are a few hundred Indonesian startups, many of which are still two guys in a garage (or, increasingly often, in a shared incubator office). Apart from a handful of companies which are looking for expansion capital, most startups need mentoring, marketing assistance and help making connections as much as they need investment money: the Indonesian tech sector is still in capacity-building mode.\r\n\r\n<a title=\"Investment environment\" href=\"http://stage.redwing-asia.com/investors/investment-environment/\">[Read the full article here]</a>','What\'s it like to invest in the Indonesia tech sector?','','inherit','closed','open','','1940-revision-5','','','2013-03-14 14:29:31','2013-03-14 14:29:31','',1940,'http://stage.redwing-asia.com/uncategorized/1940-revision-5/',0,'revision','',0),(1958,1,'2013-03-08 14:44:26','2013-03-08 14:44:26','<a href=\"http://stage.redwing-asia.com/investor-posts/the-largest-foreign-investors-in-indonesia-tech/attachment/post-foreign-investors-graphic/\" rel=\"attachment wp-att-1960\"><img class=\"alignnone size-full wp-image-1960\" alt=\"Post - foreign investors graphic\" src=\"http://stage.redwing-asia.com/wp-content/uploads/Post-foreign-investors-graphic.jpg\" width=\"700\" height=\"180\" /></a>\r\n<h4 style=\"text-align: justify;\">Indonesia does not restrict foreign investment into the tech sector, so foreign investors have a range of options in investment structures. The most common investment strategies to date have been forming a JV with a local Indonesian company, acquiring an existing tech company, or opening a local subsidiary then hiring local employees (and sometimes bringing in overseas executives too). The foreign investors have brought both capital and skills, with investors to date coming from the US, Japan, China, Korea and Europe.</h4>\r\n<h5 style=\"text-align: justify;\"><strong>Indonesia has already seen two foreign investment waves\r\n</strong></h5>\r\n<p style=\"text-align: justify;\">The first wave of foreign investment, in 2010 and 2011, was fundamentally a land-grab. Indonesia experienced a mini internet boom as Yahoo, Groupon and DailySocial all made high-profile acquisitions. There was a single primary goal: to buy the leading Indonesian internet companies before someone else got their hands on them.</p>\r\n<p style=\"text-align: justify;\">The second wave has been more about establishing a long-term presence in the Indonesian market, rather than making outright acquisitions. The majority of transactions have been undertaken by Japanese and Chinese investors, who have tended to take a joint venture approach. However, the largest investment has come from Europe, in the shape of Rocket Internet and its six online ventures.</p>\r\n\r\n<h5>The first wave: Yahoo, daily deals, and more</h5>\r\n<img alt=\"Koprol-Yahoo logo\" src=\"http://redwing-asia.com/wp-content/uploads/Koprol-Yahoo-logo.jpg\" width=\"109\" height=\"30\" />   <img alt=\"Groupon Disdus logo\" src=\"http://redwing-asia.com/wp-content/uploads/Groupon-Disdus-logo.png\" width=\"74\" height=\"31\" />   <img alt=\"DealKeren logo\" src=\"http://redwing-asia.com/wp-content/uploads/DealKeren-logo.png\" width=\"90\" height=\"30\" />  <a href=\"http://redwing-asia.com/investors/foreign-investor/attachment/rumah123-logo/\" rel=\"attachment wp-att-789\"><img alt=\"Rumah123 logo\" src=\"http://redwing-asia.com/wp-content/uploads/Rumah123-logo.png\" width=\"154\" height=\"29\" /></a>\r\n<p style=\"text-align: justify;\">With Yahoo\'s surprise purchase of location-based service Koprol in 2010, Indonesia was suddenly on the tech world\'s map. Next, a daily deals frenzy broke out, with Groupon and LivingSocial both buying the leading Indonesian companies in 2011. Somewhat overshadowed by all this, a bidding war also went on for the leading property portals, with the top three all being acquired within a space of four months.</p>\r\n<p style=\"text-align: justify;\">Unlike many frenzies, where the common end result is buyer\'s remorse, a number of these acquisitions led to seller\'s remorse. The daily deals market globally took a swoon, while Yahoo was having its own internal problems, so the Koprol, Disdus and DealKeren deals have not yet fulfilled their obvious potential in Indonesia. Conversely, the property portals are thriving, and reporting healthy growth rates in line with the booming internet sector.</p>\r\n\r\n<h5>The second wave: establishing a beach-head</h5>\r\n<p style=\"text-align: justify;\">Going in to 2012, a consensus emerged among the foreign investors: Indonesia is a market where the rewards come to those who commit to the long-term development of the internet sector, but it is not a hit-and-run market. As part of broader long-term regional strategies, Google opened an office in Jakarta, Rocket Internet launched a number of e-commerce ventures, and the Japanese investor funds became significantly more active.</p>\r\n<p style=\"text-align: justify;\"><a title=\"Foreign investors\" href=\"http://stage.redwing-asia.com/investors/foreign-investors/\">[Read the full piece]</a></p>\r\n&nbsp;','The most influential foreign investors in Indonesia tech','','publish','open','open','','the-largest-foreign-investors-in-indonesia-tech','','','2013-03-15 03:03:33','2013-03-15 03:03:33','',0,'http://stage.redwing-asia.com/?p=1958',0,'post','',0),(1959,1,'2013-03-14 14:38:31','2013-03-14 14:38:31','<img class=\"alignnone size-full wp-image-1524\" alt=\"Page - Investors - Foreign investors graphic 2\" src=\"http://redwing-asia.com/wp-content/uploads/Page-Investors-Foreign-investors-graphic-2.jpg\" width=\"700\" height=\"270\" />\n<h4 style=\"text-align: justify;\">Indonesia does not restrict foreign investment into the tech sector, so foreign investors have a range of options in investment structures. The most common investment strategies to date have been forming a JV with a local Indonesian company, acquiring an existing tech company, or opening a local subsidiary then hiring local employees (and sometimes bringing in overseas executives too). The foreign investors have brought both capital and skills, with investors to date coming from the US, Japan, China, Korea and Europe.</h4>\n<h5 style=\"text-align: justify;\"><strong>Indonesia has already seen two waves of foreign investments.</strong></h5>\n<p style=\"text-align: justify;\">The first wave of foreign investment, in 2010 and 2011, was fundamentally a land-grab. Indonesia experienced a mini internet boom as Yahoo, Groupon and DailySocial all made high-profile acquisitions. There was a single primary goal: to buy the leading Indonesian internet companies before someone else got their hands on them.</p>\n<p style=\"text-align: justify;\">The second wave has been more about establishing a long-term presence in the Indonesian market, rather than making outright acquisitions. The majority of transactions have been undertaken by Japanese and Chinese investors, who have tended to take a joint venture approach. However, the largest investment has come from Europe, in the shape of Rocket Internet and its six online ventures.</p>\n\n<h5 style=\"text-align: justify;\">The first wave: Yahoo, daily deals, and more</h5>\n<p style=\"text-align: justify;\"><img class=\"alignnone size-full wp-image-768\" alt=\"Koprol-Yahoo logo\" src=\"http://redwing-asia.com/wp-content/uploads/Koprol-Yahoo-logo.jpg\" width=\"147\" height=\"41\" />   <img class=\"alignnone size-full wp-image-907\" alt=\"Groupon Disdus logo\" src=\"http://redwing-asia.com/wp-content/uploads/Groupon-Disdus-logo.png\" width=\"99\" height=\"42\" />   <img class=\"alignnone size-full wp-image-790\" alt=\"DealKeren logo\" src=\"http://redwing-asia.com/wp-content/uploads/DealKeren-logo.png\" width=\"125\" height=\"42\" />  <a href=\"http://redwing-asia.com/investors/foreign-investor/attachment/rumah123-logo/\" rel=\"attachment wp-att-789\"><img class=\"alignnone size-full wp-image-789\" alt=\"Rumah123 logo\" src=\"http://redwing-asia.com/wp-content/uploads/Rumah123-logo.png\" width=\"169\" height=\"32\" /></a></p>\n<p style=\"text-align: justify;\">With Yahoo\'s surprise purchase of location-based service Koprol in 2010, Indonesia was suddenly on the tech world\'s map. Next, a daily deals frenzy broke out, with Groupon and LivingSocial both buying the leading Indonesian companies in 2011. Somewhat overshadowed by all this, a bidding war also went on for the leading property portals, with the top three all being acquired within a space of four months.</p>\n<p style=\"text-align: justify;\">Unlike many frenzies, where the common end result is buyer\'s remorse, a number of these acquisitions led to seller\'s remorse. The daily deals market globally took a swoon, while Yahoo was having its own internal problems, so the Koprol, Disdus and DealKeren deals have not yet fulfilled their obvious potential in Indonesia. Conversely, the property portals are thriving, and reporting healthy growth rates in line with the booming internet sector.</p>\n\n<h5 style=\"text-align: justify;\">The second wave: establishing a beach-head</h5>\n<p style=\"text-align: justify;\">Going in to 2012, a consensus emerged among the foreign investors: Indonesia is a market where the rewards come to those who commit to the long-term development of the internet sector, but it is not a hit-and-run market. As part of broader long-term regional strategies, Google opened an office in Jakarta, Rocket Internet launched a number of e-commerce ventures, and the Japanese investor funds became significantly more active.</p>\n\n<h5 style=\"text-align: justify;\">The most influential foreign investors in the Indonesia tech sector currently:</h5>\n<table style=\"width: 700px;\" border=\"0\">\n<tbody>\n<tr style=\"height: 160px;\">\n<td style=\"width: 165px;\"><img alt=\"Zalora Lazada logos 2\" src=\"http://redwing-asia.com/wp-content/uploads/Zalora-Lazada-logos-2.png\" width=\"160\" height=\"120\" /></td>\n<td style=\"text-align: justify;\"><span style=\"font-size: small;\">Germany\'s Rocket Internet calls itself a startup incubator, but few other incubators have US$ 90 million of funding behind them.  Armed with this warchest, Rocket has launched six ventures so far in Indonesia (and others in four other SE Asia countries), from e-commerce to food delivery to price comparison sites. Its model is to appoint MBA-trained executives to run each unit, and then to hire large local teams.</span></td>\n</tr>\n<tr style=\"height: 160px;\">\n<td style=\"width: 165px;\"><img alt=\"Rakuten logo\" src=\"http://redwing-asia.com/wp-content/uploads/Rakuten-logo.png\" width=\"160\" height=\"120\" /></td>\n<td style=\"text-align: justify;\"><span style=\"font-size: small;\">Rakuten is the world’s third largest e-commerce company, after Amazon and Taobao. It entered Indonesia in 2011, in partnership with local media company MNC, to launch online marketplace Rakuten Belanja. The site has experienced double-digit monthly growth, and eighteen months after launch boasted 400 merchants and 300,000 products offered online.</span></td>\n</tr>\n<tr style=\"height: 160px;\">\n<td style=\"width: 165px;\"><img alt=\"Netprice.com logo 2\" src=\"http://redwing-asia.com/wp-content/uploads/Netprice.com-logo-2.png\" width=\"160\" height=\"120\" /></td>\n<td style=\"text-align: justify;\"><span style=\"font-size: small;\">NetPrice.com, a Japanese internet company that is listed on the Tokyo stock exchange, became the third-round investor in Tokpedia in 2012, joining previous investors East Ventures and CyberAgent. It is also an investor in payment platform Veritrans Indonesia. Netprice operates using multiple e-commerce business models in Japan, including auctions, online group buying and cross-border trading.</span></td>\n</tr>\n<tr style=\"height: 160px;\">\n<td style=\"width: 165px;\"><img alt=\"Veritrans logo\" src=\"http://redwing-asia.com/wp-content/uploads/Veritrans-logo.png\" width=\"160\" height=\"120\" /></td>\n<td style=\"text-align: justify;\"><span style=\"font-size: small;\">Veritrans Indonesia is a joint venture between VeriTrans Inc. and Netprice.com of Japan together with local Indonesian company MidPlaza Group. Its secure online payment platform was launched in 2012 to compete with a number of other plaforms such as Doku, iPaymu and Indonesia\'s top two banks, BCA and Mandiri.</span></td>\n</tr>\n<tr style=\"height: 160px;\">\n<td style=\"width: 165px;\"><img alt=\"GREE Ventures logo\" src=\"http://redwing-asia.com/wp-content/uploads/GREE-Ventures-logo.png\" width=\"160\" height=\"120\" /></td>\n<td style=\"text-align: justify;\"><span style=\"font-size: small;\">GREE Ventures is the ventures arm of Japan\'s mobile social gaming company GREE. The fund has US$25m of which 60% is allocated to SE Asia startups. After investments in Pricearea.com and Bukalapak in 2012, GREE Ventures followed East Ventures into Berrybenka, part of the current trend towards e-commerce verticals.\n</span></td>\n</tr>\n<tr style=\"height: 160px;\">\n<td style=\"width: 165px;\"><img alt=\"CyberAgent logo 2\" src=\"http://redwing-asia.com/wp-content/uploads/CyberAgent-logo-2.png\" width=\"160\" height=\"120\" /></td>\n<td style=\"text-align: justify;\"><span style=\"font-size: small;\">CyberAgent is a Japanese VC which invested in e-commerce sites Tokopedia in 2011 and Bilna in 2012, both of which are also part of East Ventures\' portfolio. Within SE Asia, CyberAgent is focused primarily on Indonesia in Vietnam, with up to US$20m allocated to the two countries.</span></td>\n</tr>\n<tr style=\"height: 160px;\">\n<td style=\"width: 165px;\"><img alt=\"Google logo\" src=\"http://redwing-asia.com/wp-content/uploads/Google-logo.png\" width=\"160\" height=\"120\" /></td>\n<td style=\"text-align: justify;\"><span style=\"font-size: small;\">Google opened its Indonesia office in May 2012, and has been focused on promoting its online advertising services to small and medium sized businesses in Indonesia, as well as forming local marketing partnerships. With around 50 employees in Indonesia, compared to more than 50,000 worldwide, it fits the common pattern of a \"very large global corporation which has a small business in Indonesia\".</span></td>\n</tr>\n</tbody>\n</table>\n&nbsp;\n\n<code>\n</code>\n\n<code>\n</code>\n<code>\n</code>\n\n<code>\n</code>\n<code>\n</code>\n<h6 style=\"text-align: justify;\"><span style=\"color: #999999;\">Redwing strives for accuracy in its company analyses - if there are any details you would like to add to this analysis please contact us here.</span></h6>','Foreign investors','','inherit','closed','open','','294-autosave','','','2013-03-14 14:38:31','2013-03-14 14:38:31','',294,'http://stage.redwing-asia.com/uncategorized/294-autosave/',0,'revision','',0),(1960,1,'2013-03-14 14:42:39','2013-03-14 14:42:39','','Post - foreign investors graphic','','inherit','closed','open','','post-foreign-investors-graphic','','','2013-03-14 14:42:39','2013-03-14 14:42:39','',1958,'http://stage.redwing-asia.com/wp-content/uploads/Post-foreign-investors-graphic.jpg',0,'attachment','image/jpeg',0),(1961,1,'2013-03-14 14:44:21','2013-03-14 14:44:21','<a href=\"http://stage.redwing-asia.com/?attachment_id=1960\" rel=\"attachment wp-att-1960\"><img class=\"alignnone size-full wp-image-1960\" alt=\"Post - foreign investors graphic\" src=\"http://stage.redwing-asia.com/wp-content/uploads/Post-foreign-investors-graphic.jpg\" width=\"700\" height=\"180\" /></a>\n<h4 style=\"text-align: justify;\">Indonesia does not restrict foreign investment into the tech sector, so foreign investors have a range of options in investment structures. The most common investment strategies to date have been forming a JV with a local Indonesian company, acquiring an existing tech company, or opening a local subsidiary then hiring local employees (and sometimes bringing in overseas executives too). The foreign investors have brought both capital and skills, with investors to date coming from the US, Japan, China, Korea and Europe.</h4>\n<h5 style=\"text-align: justify;\"><strong>Indonesia has already seen two waves of foreign investments.</strong></h5>\n<p style=\"text-align: justify;\">The first wave of foreign investment, in 2010 and 2011, was fundamentally a land-grab. Indonesia experienced a mini internet boom as Yahoo, Groupon and DailySocial all made high-profile acquisitions. There was a single primary goal: to buy the leading Indonesian internet companies before someone else got their hands on them.</p>\n<p style=\"text-align: justify;\">The second wave has been more about establishing a long-term presence in the Indonesian market, rather than making outright acquisitions. The majority of transactions have been undertaken by Japanese and Chinese investors, who have tended to take a joint venture approach. However, the largest investment has come from Europe, in the shape of Rocket Internet and its six online ventures.</p>\n\n<h5>The first wave: Yahoo, daily deals, and more</h5>\n<img alt=\"Koprol-Yahoo logo\" src=\"http://redwing-asia.com/wp-content/uploads/Koprol-Yahoo-logo.jpg\" width=\"147\" height=\"41\" />   <img alt=\"Groupon Disdus logo\" src=\"http://redwing-asia.com/wp-content/uploads/Groupon-Disdus-logo.png\" width=\"99\" height=\"42\" />   <img alt=\"DealKeren logo\" src=\"http://redwing-asia.com/wp-content/uploads/DealKeren-logo.png\" width=\"125\" height=\"42\" />  <a href=\"http://redwing-asia.com/investors/foreign-investor/attachment/rumah123-logo/\" rel=\"attachment wp-att-789\"><img alt=\"Rumah123 logo\" src=\"http://redwing-asia.com/wp-content/uploads/Rumah123-logo.png\" width=\"169\" height=\"32\" /></a>\n<p style=\"text-align: justify;\">With Yahoo\'s surprise purchase of location-based service Koprol in 2010, Indonesia was suddenly on the tech world\'s map. Next, a daily deals frenzy broke out, with Groupon and LivingSocial both buying the leading Indonesian companies in 2011. Somewhat overshadowed by all this, a bidding war also went on for the leading property portals, with the top three all being acquired within a space of four months.</p>\n<p style=\"text-align: justify;\">Unlike many frenzies, where the common end result is buyer\'s remorse, a number of these acquisitions led to seller\'s remorse. The daily deals market globally took a swoon, while Yahoo was having its own internal problems, so the Koprol, Disdus and DealKeren deals have not yet fulfilled their obvious potential in Indonesia. Conversely, the property portals are thriving, and reporting healthy growth rates in line with the booming internet sector.</p>\n\n<h5>The second wave: establishing a beach-head</h5>\n<p style=\"text-align: justify;\">Going in to 2012, a consensus emerged among the foreign investors: Indonesia is a market where the rewards come to those who commit to the long-term development of the internet sector, but it is not a hit-and-run market. As part of broader long-term regional strategies, Google opened an office in Jakarta, Rocket Internet launched a number of e-commerce ventures, and the Japanese investor funds became significantly more active.</p>\n\n<h5>The most influential foreign investors in the Indonesia tech sector currently:</h5>\n&nbsp;','The largest foreign investors in Indonesia tech','','inherit','closed','open','','1958-revision','','','2013-03-14 14:44:21','2013-03-14 14:44:21','',1958,'http://stage.redwing-asia.com/uncategorized/1958-revision/',0,'revision','',0),(1962,1,'2013-03-14 14:44:26','2013-03-14 14:44:26','<a href=\"http://stage.redwing-asia.com/?attachment_id=1960\" rel=\"attachment wp-att-1960\"><img class=\"alignnone size-full wp-image-1960\" alt=\"Post - foreign investors graphic\" src=\"http://stage.redwing-asia.com/wp-content/uploads/Post-foreign-investors-graphic.jpg\" width=\"700\" height=\"180\" /></a>\r\n<h4 style=\"text-align: justify;\">Indonesia does not restrict foreign investment into the tech sector, so foreign investors have a range of options in investment structures. The most common investment strategies to date have been forming a JV with a local Indonesian company, acquiring an existing tech company, or opening a local subsidiary then hiring local employees (and sometimes bringing in overseas executives too). The foreign investors have brought both capital and skills, with investors to date coming from the US, Japan, China, Korea and Europe.</h4>\r\n<h5 style=\"text-align: justify;\"><strong>Indonesia has already seen two waves of foreign investments.</strong></h5>\r\n<p style=\"text-align: justify;\">The first wave of foreign investment, in 2010 and 2011, was fundamentally a land-grab. Indonesia experienced a mini internet boom as Yahoo, Groupon and DailySocial all made high-profile acquisitions. There was a single primary goal: to buy the leading Indonesian internet companies before someone else got their hands on them.</p>\r\n<p style=\"text-align: justify;\">The second wave has been more about establishing a long-term presence in the Indonesian market, rather than making outright acquisitions. The majority of transactions have been undertaken by Japanese and Chinese investors, who have tended to take a joint venture approach. However, the largest investment has come from Europe, in the shape of Rocket Internet and its six online ventures.</p>\r\n\r\n<h5>The first wave: Yahoo, daily deals, and more</h5>\r\n<img alt=\"Koprol-Yahoo logo\" src=\"http://redwing-asia.com/wp-content/uploads/Koprol-Yahoo-logo.jpg\" width=\"147\" height=\"41\" />   <img alt=\"Groupon Disdus logo\" src=\"http://redwing-asia.com/wp-content/uploads/Groupon-Disdus-logo.png\" width=\"99\" height=\"42\" />   <img alt=\"DealKeren logo\" src=\"http://redwing-asia.com/wp-content/uploads/DealKeren-logo.png\" width=\"125\" height=\"42\" />  <a href=\"http://redwing-asia.com/investors/foreign-investor/attachment/rumah123-logo/\" rel=\"attachment wp-att-789\"><img alt=\"Rumah123 logo\" src=\"http://redwing-asia.com/wp-content/uploads/Rumah123-logo.png\" width=\"169\" height=\"32\" /></a>\r\n<p style=\"text-align: justify;\">With Yahoo\'s surprise purchase of location-based service Koprol in 2010, Indonesia was suddenly on the tech world\'s map. Next, a daily deals frenzy broke out, with Groupon and LivingSocial both buying the leading Indonesian companies in 2011. Somewhat overshadowed by all this, a bidding war also went on for the leading property portals, with the top three all being acquired within a space of four months.</p>\r\n<p style=\"text-align: justify;\">Unlike many frenzies, where the common end result is buyer\'s remorse, a number of these acquisitions led to seller\'s remorse. The daily deals market globally took a swoon, while Yahoo was having its own internal problems, so the Koprol, Disdus and DealKeren deals have not yet fulfilled their obvious potential in Indonesia. Conversely, the property portals are thriving, and reporting healthy growth rates in line with the booming internet sector.</p>\r\n\r\n<h5>The second wave: establishing a beach-head</h5>\r\n<p style=\"text-align: justify;\">Going in to 2012, a consensus emerged among the foreign investors: Indonesia is a market where the rewards come to those who commit to the long-term development of the internet sector, but it is not a hit-and-run market. As part of broader long-term regional strategies, Google opened an office in Jakarta, Rocket Internet launched a number of e-commerce ventures, and the Japanese investor funds became significantly more active.</p>\r\n\r\n<h5>The most influential foreign investors in the Indonesia tech sector currently:</h5>\r\n<table border=\"0\">\r\n<tbody>\r\n<tr>\r\n<td><img alt=\"Zalora Lazada logos 2\" src=\"http://redwing-asia.com/wp-content/uploads/Zalora-Lazada-logos-2.png\" width=\"160\" height=\"120\" /></td>\r\n<td>Germany\'s Rocket Internet calls itself a startup incubator, but few other incubators have US$ 90 million of funding behind them.  Armed with this warchest, Rocket has launched six ventures so far in Indonesia (and others in four other SE Asia countries), from e-commerce to food delivery to price comparison sites. Its model is to appoint MBA-trained executives to run each unit, and then to hire large local teams.</td>\r\n</tr>\r\n<tr>\r\n<td><img alt=\"Rakuten logo\" src=\"http://redwing-asia.com/wp-content/uploads/Rakuten-logo.png\" width=\"160\" height=\"120\" /></td>\r\n<td>Rakuten is the world’s third largest e-commerce company, after Amazon and Taobao. It entered Indonesia in 2011, in partnership with local media company MNC, to launch online marketplace Rakuten Belanja. The site has experienced double-digit monthly growth, and eighteen months after launch boasted 400 merchants and 300,000 products offered online.</td>\r\n</tr>\r\n<tr>\r\n<td><img alt=\"Netprice.com logo 2\" src=\"http://redwing-asia.com/wp-content/uploads/Netprice.com-logo-2.png\" width=\"160\" height=\"120\" /></td>\r\n<td>NetPrice.com, a Japanese internet company that is listed on the Tokyo stock exchange, became the third-round investor in Tokpedia in 2012, joining previous investors East Ventures and CyberAgent. It is also an investor in payment platform Veritrans Indonesia. Netprice operates using multiple e-commerce business models in Japan, including auctions, online group buying and cross-border trading.</td>\r\n</tr>\r\n<tr>\r\n<td><img alt=\"Veritrans logo\" src=\"http://redwing-asia.com/wp-content/uploads/Veritrans-logo.png\" width=\"160\" height=\"120\" /></td>\r\n<td>Veritrans Indonesia is a joint venture between VeriTrans Inc. and Netprice.com of Japan together with local Indonesian company MidPlaza Group. Its secure online payment platform was launched in 2012 to compete with a number of other plaforms such as Doku, iPaymu and Indonesia\'s top two banks, BCA and Mandiri.</td>\r\n</tr>\r\n<tr>\r\n<td><img alt=\"GREE Ventures logo\" src=\"http://redwing-asia.com/wp-content/uploads/GREE-Ventures-logo.png\" width=\"160\" height=\"120\" /></td>\r\n<td>GREE Ventures is the ventures arm of Japan\'s mobile social gaming company GREE. The fund has US$25m of which 60% is allocated to SE Asia startups. After investments in Pricearea.com and Bukalapak in 2012, GREE Ventures followed East Ventures into Berrybenka, part of the current trend towards e-commerce verticals.</td>\r\n</tr>\r\n<tr>\r\n<td><img alt=\"CyberAgent logo 2\" src=\"http://redwing-asia.com/wp-content/uploads/CyberAgent-logo-2.png\" width=\"160\" height=\"120\" /></td>\r\n<td>CyberAgent is a Japanese VC which invested in e-commerce sites Tokopedia in 2011 and Bilna in 2012, both of which are also part of East Ventures\' portfolio. Within SE Asia, CyberAgent is focused primarily on Indonesia in Vietnam, with up to US$20m allocated to the two countries.</td>\r\n</tr>\r\n<tr>\r\n<td><img alt=\"Google logo\" src=\"http://redwing-asia.com/wp-content/uploads/Google-logo.png\" width=\"160\" height=\"120\" /></td>\r\n<td>Google opened its Indonesia office in May 2012, and has been focused on promoting its online advertising services to small and medium sized businesses in Indonesia, as well as forming local marketing partnerships. With around 50 employees in Indonesia, compared to more than 50,000 worldwide, it fits the common pattern of a \"very large global corporation which has a small business in Indonesia\".</td>\r\n</tr>\r\n</tbody>\r\n</table>\r\n<h6>Redwing strives for accuracy in its company analyses - if there are any details you would like to add to this analysis please contact us here.</h6>','The largest foreign investors in Indonesia tech','','inherit','closed','open','','1958-revision-2','','','2013-03-14 14:44:26','2013-03-14 14:44:26','',1958,'http://stage.redwing-asia.com/uncategorized/1958-revision-2/',0,'revision','',0),(1963,1,'2013-03-14 14:44:26','2013-03-14 14:44:26','<a href=\"http://stage.redwing-asia.com/investor-posts/the-largest-foreign-investors-in-indonesia-tech/attachment/post-foreign-investors-graphic/\" rel=\"attachment wp-att-1960\"><img class=\"alignnone size-full wp-image-1960\" alt=\"Post - foreign investors graphic\" src=\"http://stage.redwing-asia.com/wp-content/uploads/Post-foreign-investors-graphic.jpg\" width=\"700\" height=\"180\" /></a>\r\n<h4 style=\"text-align: justify;\">Indonesia does not restrict foreign investment into the tech sector, so foreign investors have a range of options in investment structures. The most common investment strategies to date have been forming a JV with a local Indonesian company, acquiring an existing tech company, or opening a local subsidiary then hiring local employees (and sometimes bringing in overseas executives too). The foreign investors have brought both capital and skills, with investors to date coming from the US, Japan, China, Korea and Europe.</h4>\r\n<h5 style=\"text-align: justify;\"><strong>Indonesia has already seen two waves of foreign investments.</strong></h5>\r\n<p style=\"text-align: justify;\">The first wave of foreign investment, in 2010 and 2011, was fundamentally a land-grab. Indonesia experienced a mini internet boom as Yahoo, Groupon and DailySocial all made high-profile acquisitions. There was a single primary goal: to buy the leading Indonesian internet companies before someone else got their hands on them.</p>\r\n<p style=\"text-align: justify;\">The second wave has been more about establishing a long-term presence in the Indonesian market, rather than making outright acquisitions. The majority of transactions have been undertaken by Japanese and Chinese investors, who have tended to take a joint venture approach. However, the largest investment has come from Europe, in the shape of Rocket Internet and its six online ventures.</p>\r\n\r\n<h5>The first wave: Yahoo, daily deals, and more</h5>\r\n<img alt=\"Koprol-Yahoo logo\" src=\"http://redwing-asia.com/wp-content/uploads/Koprol-Yahoo-logo.jpg\" width=\"147\" height=\"41\" />   <img alt=\"Groupon Disdus logo\" src=\"http://redwing-asia.com/wp-content/uploads/Groupon-Disdus-logo.png\" width=\"99\" height=\"42\" />   <img alt=\"DealKeren logo\" src=\"http://redwing-asia.com/wp-content/uploads/DealKeren-logo.png\" width=\"125\" height=\"42\" />  <a href=\"http://redwing-asia.com/investors/foreign-investor/attachment/rumah123-logo/\" rel=\"attachment wp-att-789\"><img alt=\"Rumah123 logo\" src=\"http://redwing-asia.com/wp-content/uploads/Rumah123-logo.png\" width=\"169\" height=\"32\" /></a>\r\n<p style=\"text-align: justify;\">With Yahoo\'s surprise purchase of location-based service Koprol in 2010, Indonesia was suddenly on the tech world\'s map. Next, a daily deals frenzy broke out, with Groupon and LivingSocial both buying the leading Indonesian companies in 2011. Somewhat overshadowed by all this, a bidding war also went on for the leading property portals, with the top three all being acquired within a space of four months.</p>\r\n<p style=\"text-align: justify;\">Unlike many frenzies, where the common end result is buyer\'s remorse, a number of these acquisitions led to seller\'s remorse. The daily deals market globally took a swoon, while Yahoo was having its own internal problems, so the Koprol, Disdus and DealKeren deals have not yet fulfilled their obvious potential in Indonesia. Conversely, the property portals are thriving, and reporting healthy growth rates in line with the booming internet sector.</p>\r\n\r\n<h5>The second wave: establishing a beach-head</h5>\r\n<p style=\"text-align: justify;\">Going in to 2012, a consensus emerged among the foreign investors: Indonesia is a market where the rewards come to those who commit to the long-term development of the internet sector, but it is not a hit-and-run market. As part of broader long-term regional strategies, Google opened an office in Jakarta, Rocket Internet launched a number of e-commerce ventures, and the Japanese investor funds became significantly more active.</p>\r\n\r\n<h5>The most influential foreign investors in the Indonesia tech sector currently:</h5>\r\n<table border=\"0\">\r\n<tbody>\r\n<tr>\r\n<td><img alt=\"Zalora Lazada logos 2\" src=\"http://redwing-asia.com/wp-content/uploads/Zalora-Lazada-logos-2.png\" width=\"160\" height=\"120\" /></td>\r\n<td>Germany\'s Rocket Internet calls itself a startup incubator, but few other incubators have US$ 90 million of funding behind them.  Armed with this warchest, Rocket has launched six ventures so far in Indonesia (and others in four other SE Asia countries), from e-commerce to food delivery to price comparison sites. Its model is to appoint MBA-trained executives to run each unit, and then to hire large local teams.</td>\r\n</tr>\r\n<tr>\r\n<td><img alt=\"Rakuten logo\" src=\"http://redwing-asia.com/wp-content/uploads/Rakuten-logo.png\" width=\"160\" height=\"120\" /></td>\r\n<td>Rakuten is the world’s third largest e-commerce company, after Amazon and Taobao. It entered Indonesia in 2011, in partnership with local media company MNC, to launch online marketplace Rakuten Belanja. The site has experienced double-digit monthly growth, and eighteen months after launch boasted 400 merchants and 300,000 products offered online.</td>\r\n</tr>\r\n<tr>\r\n<td><img alt=\"Netprice.com logo 2\" src=\"http://redwing-asia.com/wp-content/uploads/Netprice.com-logo-2.png\" width=\"160\" height=\"120\" /></td>\r\n<td>NetPrice.com, a Japanese internet company that is listed on the Tokyo stock exchange, became the third-round investor in Tokpedia in 2012, joining previous investors East Ventures and CyberAgent. It is also an investor in payment platform Veritrans Indonesia. Netprice operates using multiple e-commerce business models in Japan, including auctions, online group buying and cross-border trading.</td>\r\n</tr>\r\n<tr>\r\n<td><img alt=\"Veritrans logo\" src=\"http://redwing-asia.com/wp-content/uploads/Veritrans-logo.png\" width=\"160\" height=\"120\" /></td>\r\n<td>Veritrans Indonesia is a joint venture between VeriTrans Inc. and Netprice.com of Japan together with local Indonesian company MidPlaza Group. Its secure online payment platform was launched in 2012 to compete with a number of other plaforms such as Doku, iPaymu and Indonesia\'s top two banks, BCA and Mandiri.</td>\r\n</tr>\r\n<tr>\r\n<td><img alt=\"GREE Ventures logo\" src=\"http://redwing-asia.com/wp-content/uploads/GREE-Ventures-logo.png\" width=\"160\" height=\"120\" /></td>\r\n<td>GREE Ventures is the ventures arm of Japan\'s mobile social gaming company GREE. The fund has US$25m of which 60% is allocated to SE Asia startups. After investments in Pricearea.com and Bukalapak in 2012, GREE Ventures followed East Ventures into Berrybenka, part of the current trend towards e-commerce verticals.</td>\r\n</tr>\r\n<tr>\r\n<td><img alt=\"CyberAgent logo 2\" src=\"http://redwing-asia.com/wp-content/uploads/CyberAgent-logo-2.png\" width=\"160\" height=\"120\" /></td>\r\n<td>CyberAgent is a Japanese VC which invested in e-commerce sites Tokopedia in 2011 and Bilna in 2012, both of which are also part of East Ventures\' portfolio. Within SE Asia, CyberAgent is focused primarily on Indonesia in Vietnam, with up to US$20m allocated to the two countries.</td>\r\n</tr>\r\n<tr>\r\n<td><img alt=\"Google logo\" src=\"http://redwing-asia.com/wp-content/uploads/Google-logo.png\" width=\"160\" height=\"120\" /></td>\r\n<td>Google opened its Indonesia office in May 2012, and has been focused on promoting its online advertising services to small and medium sized businesses in Indonesia, as well as forming local marketing partnerships. With around 50 employees in Indonesia, compared to more than 50,000 worldwide, it fits the common pattern of a \"very large global corporation which has a small business in Indonesia\".</td>\r\n</tr>\r\n</tbody>\r\n</table>\r\n<h6>Redwing strives for accuracy in its company analyses - if there are any details you would like to add to this analysis please contact us here.</h6>','The largest foreign investors in Indonesia tech','','inherit','closed','open','','1958-revision-3','','','2013-03-14 14:44:26','2013-03-14 14:44:26','',1958,'http://stage.redwing-asia.com/uncategorized/1958-revision-3/',0,'revision','',0),(1964,1,'2013-03-14 14:35:47','2013-03-14 14:35:47','<a href=\"http://stage.redwing-asia.com/startup-posts/the-startup-environment-in-indonesia/attachment/post-startup-environment-graphic/\" rel=\"attachment wp-att-1950\"><img class=\"alignnone size-full wp-image-1950\" alt=\"Post - startup environment graphic\" src=\"http://stage.redwing-asia.com/wp-content/uploads/Post-startup-environment-graphic.jpg\" width=\"700\" height=\"180\" /></a>\r\n<h4 style=\"text-align: justify;\">Like other tech sectors around the world, Indonesia has already been through a number of phases of hype, boom and realism. At the moment it\'s in a realism phase, with a number of larger investors entering the market to build companies which can take advantage of long-term growth trends. In parallel with this, the Indonesian tech ecosystem continues to mature, with incubators, startup communities, tech news sites and regular business plan competitions all serving to raise the level of capability among the tech entrepreneurs.</h4>\r\n<h5 style=\"text-align: justify;\">A rapidly-maturing sector that supports three distinct types of startups</h5>\r\n<p style=\"text-align: justify;\">The tech sector in Indonesia began a sustained growth drive in 2010, signalled by the formation of the first Indonesia-focused VCs and a significant rise in the volume of investment deals. With the formation of a number of startup incubators in 2011, plus greater sector awareness through online news sites such as Daily Social, TechInAsia and e27, a healthy ecosystem has been firmly established.</p>\r\n<p style=\"text-align: justify;\">Startups in Indonesia come into being through four distinct routes:</p>\r\n\r\n<ul style=\"text-align: justify;\">\r\n	<li><strong>Independent incubation</strong>: independent incubators such as Ideosource, Batavia and InvestIdea provide a mix of funding, mentoring and facilities to help entrepreneurs turn their ideas into potential businesses.</li>\r\n</ul>\r\n<ul style=\"text-align: justify;\">\r\n	<li><strong>Corporate incubation</strong>: incubators tied to larger companies or funds (examples are Grupara/Medco, MerahPutih/GDP Ventures and Mega Media/Indosat) all provide startups with similar services to the independent incubators, but with a potential route into a larger funding entity within the same group.</li>\r\n</ul>\r\n<ul style=\"text-align: justify;\">\r\n	<li><strong>Bootstrapping</strong>: self-sufficient founders can pull together the right mix of skills and initial funding themselves. Typically the founders will be:</li>\r\n</ul>\r\n<p style=\"padding-left: 60px; text-align: justify;\">- Entrepreneurs on their second or third Indonesian startup (increasingly common these days)</p>\r\n<p style=\"padding-left: 60px; text-align: justify;\">- Indonesians returning home after studying and working abroad</p>\r\n<p style=\"padding-left: 60px; text-align: justify;\">- Local graduates who want to try something outside the corporate life</p>\r\n<p style=\"padding-left: 60px; text-align: justify;\">- Foreigners who come to Indonesia and discover a tech opportunity</p>\r\n<p style=\"padding-left: 60px; text-align: justify;\">- Foreigners with an overseas website who find that many of their early users are from Indonesia</p>\r\n\r\n<ul style=\"text-align: justify;\">\r\n	<li><strong>Well-funded startups</strong>: these take a variety of forms, from startups begun by investment funds (eg Blibli/GDP Ventures), startups begun as an Indonesian/foreign JV (eg Rakuten Belanja), startups begun by Indonesian corporates launching digital businesses (eg Gramediana/Kompas), or startups funded by foreign investors (eg Lazada).</li>\r\n</ul>\r\n<p style=\"text-align: justify;\">A common view among investors is that one of the most difficult challenges in tech investing in Indonesia is finding the right skills and experience in both the technical and commercial managers of the business. This perceived shortage of skilled resources has directly led to the formation of the numerous incubators in Indonesia, and has also motivated local corporates to form joint ventures with foreign internet companies rather than trying to build their own technology platforms.</p>\r\n<a title=\"Startup environment\" href=\"http://stage.redwing-asia.com/startups/startup-environment/\">[Read the full piece]</a>','The startup environment in Indonesia','','inherit','closed','open','','1948-revision-5','','','2013-03-14 14:35:47','2013-03-14 14:35:47','',1948,'http://stage.redwing-asia.com/uncategorized/1948-revision-5/',0,'revision','',0),(1965,1,'2013-03-14 14:45:00','2013-03-14 14:45:00','<a href=\"http://stage.redwing-asia.com/investor-posts/the-largest-foreign-investors-in-indonesia-tech/attachment/post-foreign-investors-graphic/\" rel=\"attachment wp-att-1960\"><img class=\"alignnone size-full wp-image-1960\" alt=\"Post - foreign investors graphic\" src=\"http://stage.redwing-asia.com/wp-content/uploads/Post-foreign-investors-graphic.jpg\" width=\"700\" height=\"180\" /></a>\r\n<h4 style=\"text-align: justify;\">Indonesia does not restrict foreign investment into the tech sector, so foreign investors have a range of options in investment structures. The most common investment strategies to date have been forming a JV with a local Indonesian company, acquiring an existing tech company, or opening a local subsidiary then hiring local employees (and sometimes bringing in overseas executives too). The foreign investors have brought both capital and skills, with investors to date coming from the US, Japan, China, Korea and Europe.</h4>\r\n<h5 style=\"text-align: justify;\"><strong>Indonesia has already seen two waves of foreign investments.</strong></h5>\r\n<p style=\"text-align: justify;\">The first wave of foreign investment, in 2010 and 2011, was fundamentally a land-grab. Indonesia experienced a mini internet boom as Yahoo, Groupon and DailySocial all made high-profile acquisitions. There was a single primary goal: to buy the leading Indonesian internet companies before someone else got their hands on them.</p>\r\n<p style=\"text-align: justify;\">The second wave has been more about establishing a long-term presence in the Indonesian market, rather than making outright acquisitions. The majority of transactions have been undertaken by Japanese and Chinese investors, who have tended to take a joint venture approach. However, the largest investment has come from Europe, in the shape of Rocket Internet and its six online ventures.</p>\r\n\r\n<h5>The first wave: Yahoo, daily deals, and more</h5>\r\n<img alt=\"Koprol-Yahoo logo\" src=\"http://redwing-asia.com/wp-content/uploads/Koprol-Yahoo-logo.jpg\" width=\"147\" height=\"41\" />   <img alt=\"Groupon Disdus logo\" src=\"http://redwing-asia.com/wp-content/uploads/Groupon-Disdus-logo.png\" width=\"99\" height=\"42\" />   <img alt=\"DealKeren logo\" src=\"http://redwing-asia.com/wp-content/uploads/DealKeren-logo.png\" width=\"125\" height=\"42\" />  <a href=\"http://redwing-asia.com/investors/foreign-investor/attachment/rumah123-logo/\" rel=\"attachment wp-att-789\"><img alt=\"Rumah123 logo\" src=\"http://redwing-asia.com/wp-content/uploads/Rumah123-logo.png\" width=\"169\" height=\"32\" /></a>\r\n<p style=\"text-align: justify;\">With Yahoo\'s surprise purchase of location-based service Koprol in 2010, Indonesia was suddenly on the tech world\'s map. Next, a daily deals frenzy broke out, with Groupon and LivingSocial both buying the leading Indonesian companies in 2011. Somewhat overshadowed by all this, a bidding war also went on for the leading property portals, with the top three all being acquired within a space of four months.</p>\r\n<p style=\"text-align: justify;\">Unlike many frenzies, where the common end result is buyer\'s remorse, a number of these acquisitions led to seller\'s remorse. The daily deals market globally took a swoon, while Yahoo was having its own internal problems, so the Koprol, Disdus and DealKeren deals have not yet fulfilled their obvious potential in Indonesia. Conversely, the property portals are thriving, and reporting healthy growth rates in line with the booming internet sector.</p>\r\n\r\n<h5>The second wave: establishing a beach-head</h5>\r\n<p style=\"text-align: justify;\">Going in to 2012, a consensus emerged among the foreign investors: Indonesia is a market where the rewards come to those who commit to the long-term development of the internet sector, but it is not a hit-and-run market. As part of broader long-term regional strategies, Google opened an office in Jakarta, Rocket Internet launched a number of e-commerce ventures, and the Japanese investor funds became significantly more active.</p>\r\n\r\n<h5>The most influential foreign investors in the Indonesia tech sector currently:</h5>\r\n<table border=\"0\">\r\n<tbody>\r\n<tr>\r\n<td><img alt=\"Zalora Lazada logos 2\" src=\"http://redwing-asia.com/wp-content/uploads/Zalora-Lazada-logos-2.png\" width=\"160\" height=\"120\" /></td>\r\n<td>Germany\'s Rocket Internet calls itself a startup incubator, but few other incubators have US$ 90 million of funding behind them.  Armed with this warchest, Rocket has launched six ventures so far in Indonesia (and others in four other SE Asia countries), from e-commerce to food delivery to price comparison sites. Its model is to appoint MBA-trained executives to run each unit, and then to hire large local teams.</td>\r\n</tr>\r\n<tr>\r\n<td><img alt=\"Rakuten logo\" src=\"http://redwing-asia.com/wp-content/uploads/Rakuten-logo.png\" width=\"160\" height=\"120\" /></td>\r\n<td>Rakuten is the world’s third largest e-commerce company, after Amazon and Taobao. It entered Indonesia in 2011, in partnership with local media company MNC, to launch online marketplace Rakuten Belanja. The site has experienced double-digit monthly growth, and eighteen months after launch boasted 400 merchants and 300,000 products offered online.</td>\r\n</tr>\r\n<tr>\r\n<td><img alt=\"Netprice.com logo 2\" src=\"http://redwing-asia.com/wp-content/uploads/Netprice.com-logo-2.png\" width=\"160\" height=\"120\" /></td>\r\n<td>NetPrice.com, a Japanese internet company that is listed on the Tokyo stock exchange, became the third-round investor in Tokpedia in 2012, joining previous investors East Ventures and CyberAgent. It is also an investor in payment platform Veritrans Indonesia. Netprice operates using multiple e-commerce business models in Japan, including auctions, online group buying and cross-border trading.</td>\r\n</tr>\r\n<tr>\r\n<td><img alt=\"Veritrans logo\" src=\"http://redwing-asia.com/wp-content/uploads/Veritrans-logo.png\" width=\"160\" height=\"120\" /></td>\r\n<td>Veritrans Indonesia is a joint venture between VeriTrans Inc. and Netprice.com of Japan together with local Indonesian company MidPlaza Group. Its secure online payment platform was launched in 2012 to compete with a number of other plaforms such as Doku, iPaymu and Indonesia\'s top two banks, BCA and Mandiri.</td>\r\n</tr>\r\n<tr>\r\n<td><img alt=\"GREE Ventures logo\" src=\"http://redwing-asia.com/wp-content/uploads/GREE-Ventures-logo.png\" width=\"160\" height=\"120\" /></td>\r\n<td>GREE Ventures is the ventures arm of Japan\'s mobile social gaming company GREE. The fund has US$25m of which 60% is allocated to SE Asia startups. After investments in Pricearea.com and Bukalapak in 2012, GREE Ventures followed East Ventures into Berrybenka, part of the current trend towards e-commerce verticals.</td>\r\n</tr>\r\n<tr>\r\n<td><img alt=\"CyberAgent logo 2\" src=\"http://redwing-asia.com/wp-content/uploads/CyberAgent-logo-2.png\" width=\"160\" height=\"120\" /></td>\r\n<td>CyberAgent is a Japanese VC which invested in e-commerce sites Tokopedia in 2011 and Bilna in 2012, both of which are also part of East Ventures\' portfolio. Within SE Asia, CyberAgent is focused primarily on Indonesia in Vietnam, with up to US$20m allocated to the two countries.</td>\r\n</tr>\r\n<tr>\r\n<td><img alt=\"Google logo\" src=\"http://redwing-asia.com/wp-content/uploads/Google-logo.png\" width=\"160\" height=\"120\" /></td>\r\n<td>Google opened its Indonesia office in May 2012, and has been focused on promoting its online advertising services to small and medium sized businesses in Indonesia, as well as forming local marketing partnerships. With around 50 employees in Indonesia, compared to more than 50,000 worldwide, it fits the common pattern of a \"very large global corporation which has a small business in Indonesia\".</td>\r\n</tr>\r\n</tbody>\r\n</table>\r\n<h6>Redwing strives for accuracy in its company analyses - if there are any details you would like to add to this analysis please contact us here.</h6>','The largest foreign investors in Indonesia tech','','inherit','closed','open','','1958-revision-4','','','2013-03-14 14:45:00','2013-03-14 14:45:00','',1958,'http://stage.redwing-asia.com/uncategorized/1958-revision-4/',0,'revision','',0),(1966,1,'2013-03-14 14:36:20','2013-03-14 14:36:20','<a href=\"http://stage.redwing-asia.com/investor-posts/why-invest-in-the-indonesian-tech-sector/attachment/post-why-invest-in-indonesia-graphic/\" rel=\"attachment wp-att-1932\"><img class=\"alignnone size-full wp-image-1932\" alt=\"Post - Why invest in indonesia graphic\" src=\"http://stage.redwing-asia.com/wp-content/uploads/Post-Why-invest-in-indonesia-graphic.jpg\" width=\"700\" height=\"180\" /></a>\r\n<h4 style=\"text-align: justify;\">Humbler and quieter than the flashier economic stars of China and India, Indonesia offers spectacular opportunities for tech investors wanting to get in on the ground level of an economy that is expected to exceed the size of Germany and the UK within two decades. Indonesia is already one of the world’s top five markets in mobile subscribers, Facebook users, Twitter users and mobile ads, yet we still believe it can deliver a number of surprises on the upside. And with a burgeoning middle class and an average age of 28, its highly favourable long-term demographics mean that tech opportunities will abound.</h4>\r\n<h5 style=\"text-align: justify;\"><b>Rapid growth driven by strong fundamentals</b></h5>\r\n<p style=\"text-align: justify;\">By any measures, all the tech numbers for Indonesia look good: its base of 55 million internet users today (larger than Korea’s) will grow rapidly to 125 million users by 2015 (more than Japan’s). And in parallel with this expansion, everything from e-commerce to online media to B2B applications will grow rapidly.</p>\r\n<p style=\"text-align: justify;\">This growth is driven by one of the world’s most vibrant mobile markets: Indonesia’s huge and growing mobile market now has 278 million subscribers, 15% of mobile users already have smartphones, and the mobile ad market delivered around 200 <i>billion</i> impressions last year, second only to the US. On top of this, Indonesia is in the top five countries for both Facebook and Twitter usage, as well as having the world’s most active Twitter city, Jakarta.</p>\r\n<p style=\"text-align: justify;\">Sitting behind all these numbers is a well-managed economy whose growth from 2012-2107 will only be exceeded by China among the world’s major economies. Indeed, over the past decade or so, the Indonesian economy has been so robust that it sailed through the 2008 financial crisis with barely a blip on growth.</p>\r\n<p style=\"text-align: justify;\">But these numbers – while hugely positive in themselves – sit on top of a far more exciting story: Indonesia’s internet market is likely to offer some of the biggest opportunities for tech investors in Asia over the coming decade.</p>\r\n\r\n<h5 style=\"text-align: justify;\"><b>A huge consumer market that experiences step-change growth spurts</b></h5>\r\n<p style=\"text-align: justify;\">Indonesia’s middle-class is already big, and it\'s booming. It will double over the next seven years to 85 million people, and by 2030 there will be 135 million middle-class consumers. At that point, Indonesia’s economy will be the 7th largest in the world, exceeding the economies of both Germany and the UK.</p>\r\n<p style=\"text-align: justify;\">And to put the size of today\'s Indonesia into perspective, its dynamic, fast-growing capital Jakarta has a population and GDP equivalent to that of the whole of Malaysia.</p>\r\n<p style=\"text-align: justify;\">But this expansion of the middle-class is only half the story – the other half is technology affordability. Indonesia is a young, tech-savvy nation, full of people who are extremely enthusiastic to own and use the latest gadgets and technologies. The main barrier to ownership is not interest or desire, it is price.</p>\r\n<a title=\"Why invest in the Indonesian tech sector?\" href=\"http://stage.redwing-asia.com/why-indonesia/\">[Read the full piece]</a>','Why invest in Indonesia?','','inherit','closed','open','','1929-revision-7','','','2013-03-14 14:36:20','2013-03-14 14:36:20','',1929,'http://stage.redwing-asia.com/uncategorized/1929-revision-7/',0,'revision','',0),(1967,1,'2013-03-14 14:45:12','2013-03-14 14:45:12','<a href=\"http://stage.redwing-asia.com/startup-posts/the-startup-environment-in-indonesia/attachment/post-startup-environment-graphic/\" rel=\"attachment wp-att-1950\"><img class=\"alignnone size-full wp-image-1950\" alt=\"Post - startup environment graphic\" src=\"http://stage.redwing-asia.com/wp-content/uploads/Post-startup-environment-graphic.jpg\" width=\"700\" height=\"180\" /></a>\r\n<h4 style=\"text-align: justify;\">Like other tech sectors around the world, Indonesia has already been through a number of phases of hype, boom and realism. At the moment it\'s in a realism phase, with a number of larger investors entering the market to build companies which can take advantage of long-term growth trends. In parallel with this, the Indonesian tech ecosystem continues to mature, with incubators, startup communities, tech news sites and regular business plan competitions all serving to raise the level of capability among the tech entrepreneurs.</h4>\r\n<h5 style=\"text-align: justify;\">A rapidly-maturing sector that supports three distinct types of startups</h5>\r\n<p style=\"text-align: justify;\">The tech sector in Indonesia began a sustained growth drive in 2010, signalled by the formation of the first Indonesia-focused VCs and a significant rise in the volume of investment deals. With the formation of a number of startup incubators in 2011, plus greater sector awareness through online news sites such as Daily Social, TechInAsia and e27, a healthy ecosystem has been firmly established.</p>\r\n<p style=\"text-align: justify;\">Startups in Indonesia come into being through four distinct routes:</p>\r\n\r\n<ul style=\"text-align: justify;\">\r\n	<li><strong>Independent incubation</strong>: independent incubators such as Ideosource, Batavia and InvestIdea provide a mix of funding, mentoring and facilities to help entrepreneurs turn their ideas into potential businesses.</li>\r\n</ul>\r\n<ul style=\"text-align: justify;\">\r\n	<li><strong>Corporate incubation</strong>: incubators tied to larger companies or funds (examples are Grupara/Medco, MerahPutih/GDP Ventures and Mega Media/Indosat) all provide startups with similar services to the independent incubators, but with a potential route into a larger funding entity within the same group.</li>\r\n</ul>\r\n<ul style=\"text-align: justify;\">\r\n	<li><strong>Bootstrapping</strong>: self-sufficient founders can pull together the right mix of skills and initial funding themselves. Typically the founders will be:</li>\r\n</ul>\r\n<p style=\"padding-left: 60px; text-align: justify;\">- Entrepreneurs on their second or third Indonesian startup (increasingly common these days)</p>\r\n<p style=\"padding-left: 60px; text-align: justify;\">- Indonesians returning home after studying and working abroad</p>\r\n<p style=\"padding-left: 60px; text-align: justify;\">- Local graduates who want to try something outside the corporate life</p>\r\n<p style=\"padding-left: 60px; text-align: justify;\">- Foreigners who come to Indonesia and discover a tech opportunity</p>\r\n<p style=\"padding-left: 60px; text-align: justify;\">- Foreigners with an overseas website who find that many of their early users are from Indonesia</p>\r\n\r\n<ul style=\"text-align: justify;\">\r\n	<li><strong>Well-funded startups</strong>: these take a variety of forms, from startups begun by investment funds (eg Blibli/GDP Ventures), startups begun as an Indonesian/foreign JV (eg Rakuten Belanja), startups begun by Indonesian corporates launching digital businesses (eg Gramediana/Kompas), or startups funded by foreign investors (eg Lazada).</li>\r\n</ul>\r\n<p style=\"text-align: justify;\">A common view among investors is that one of the most difficult challenges in tech investing in Indonesia is finding the right skills and experience in both the technical and commercial managers of the business. This perceived shortage of skilled resources has directly led to the formation of the numerous incubators in Indonesia, and has also motivated local corporates to form joint ventures with foreign internet companies rather than trying to build their own technology platforms.</p>\r\n<a title=\"Startup environment\" href=\"http://stage.redwing-asia.com/startups/startup-environment/\">[Read the full piece]</a>','The startup environment in Indonesia','','inherit','closed','open','','1948-revision-6','','','2013-03-14 14:45:12','2013-03-14 14:45:12','',1948,'http://stage.redwing-asia.com/uncategorized/1948-revision-6/',0,'revision','',0),(1968,1,'2013-03-15 02:22:40','2013-03-15 02:22:40','<a href=\"http://stage.redwing-asia.com/startup-posts/the-startup-environment-in-indonesia/attachment/post-startup-environment-graphic/\" rel=\"attachment wp-att-1950\"><img class=\"alignnone size-full wp-image-1950\" alt=\"Post - startup environment graphic\" src=\"http://stage.redwing-asia.com/wp-content/uploads/Post-startup-environment-graphic.jpg\" width=\"700\" height=\"180\" /></a>\r\n<h4 style=\"text-align: justify;\">Like other tech sectors around the world, Indonesia has already been through a number of phases of hype, boom and realism. At the moment it\'s in a realism phase, with a number of larger investors entering the market to build companies which can take advantage of long-term growth trends. In parallel with this, the Indonesian tech ecosystem continues to mature, with incubators, startup communities, tech news sites and regular business plan competitions all serving to raise the level of capability among the tech entrepreneurs.</h4>\r\n<h5 style=\"text-align: justify;\">A rapidly-maturing sector with three distinct types of startups</h5>\r\n<p style=\"text-align: justify;\">The tech sector in Indonesia began a sustained growth drive in 2010, signalled by the formation of the first Indonesia-focused VCs and a significant rise in the volume of investment deals. With the formation of a number of startup incubators in 2011, plus greater sector awareness through online news sites such as Daily Social, TechInAsia and e27, a healthy ecosystem has been firmly established.</p>\r\n<p style=\"text-align: justify;\">Startups in Indonesia come into being through four distinct routes:</p>\r\n\r\n<ul style=\"text-align: justify;\">\r\n	<li><strong>Independent incubation</strong>: independent incubators such as Ideosource, Batavia and InvestIdea provide a mix of funding, mentoring and facilities to help entrepreneurs turn their ideas into potential businesses.</li>\r\n</ul>\r\n<ul style=\"text-align: justify;\">\r\n	<li><strong>Corporate incubation</strong>: incubators tied to larger companies or funds (examples are Grupara/Medco, MerahPutih/GDP Ventures and Mega Media/Indosat) all provide startups with similar services to the independent incubators, but with a potential route into a larger funding entity within the same group.</li>\r\n</ul>\r\n<ul style=\"text-align: justify;\">\r\n	<li><strong>Bootstrapping</strong>: self-sufficient founders can pull together the right mix of skills and initial funding themselves. Typically the founders will be:</li>\r\n</ul>\r\n<p style=\"padding-left: 60px; text-align: justify;\">- Entrepreneurs on their second or third Indonesian startup (increasingly common these days)</p>\r\n<p style=\"padding-left: 60px; text-align: justify;\">- Indonesians returning home after studying and working abroad</p>\r\n<p style=\"padding-left: 60px; text-align: justify;\">- Local graduates who want to try something outside the corporate life</p>\r\n<p style=\"padding-left: 60px; text-align: justify;\">- Foreigners who come to Indonesia and discover a tech opportunity</p>\r\n<p style=\"padding-left: 60px; text-align: justify;\">- Foreigners with an overseas website who find that many of their early users are from Indonesia</p>\r\n\r\n<ul style=\"text-align: justify;\">\r\n	<li><strong>Well-funded startups</strong>: these take a variety of forms, from startups begun by investment funds (eg Blibli/GDP Ventures), startups begun as an Indonesian/foreign JV (eg Rakuten Belanja), startups begun by Indonesian corporates launching digital businesses (eg Gramediana/Kompas), or startups funded by foreign investors (eg Lazada).</li>\r\n</ul>\r\n<p style=\"text-align: justify;\">A common view among investors is that one of the most difficult challenges in tech investing in Indonesia is finding the right skills and experience in both the technical and commercial managers of the business. This perceived shortage of skilled resources has directly led to the formation of the numerous incubators in Indonesia, and has also motivated local corporates to form joint ventures with foreign internet companies rather than trying to build their own technology platforms.</p>\r\n<a title=\"Startup environment\" href=\"http://stage.redwing-asia.com/startups/startup-environment/\">[Read the full piece]</a>','The startup environment in Indonesia','','inherit','closed','open','','1948-revision-7','','','2013-03-15 02:22:40','2013-03-15 02:22:40','',1948,'http://stage.redwing-asia.com/uncategorized/1948-revision-7/',0,'revision','',0),(1969,1,'2013-03-15 01:44:05','2013-03-15 01:44:05','<a href=\"http://stage.redwing-asia.com/investor-posts/the-largest-foreign-investors-in-indonesia-tech/attachment/post-foreign-investors-graphic/\" rel=\"attachment wp-att-1960\"><img class=\"alignnone size-full wp-image-1960\" alt=\"Post - foreign investors graphic\" src=\"http://stage.redwing-asia.com/wp-content/uploads/Post-foreign-investors-graphic.jpg\" width=\"700\" height=\"180\" /></a>\r\n<h4 style=\"text-align: justify;\">Indonesia does not restrict foreign investment into the tech sector, so foreign investors have a range of options in investment structures. The most common investment strategies to date have been forming a JV with a local Indonesian company, acquiring an existing tech company, or opening a local subsidiary then hiring local employees (and sometimes bringing in overseas executives too). The foreign investors have brought both capital and skills, with investors to date coming from the US, Japan, China, Korea and Europe.</h4>\r\n<h5 style=\"text-align: justify;\"><strong>Indonesia has already seen two waves of foreign investments.</strong></h5>\r\n<p style=\"text-align: justify;\">The first wave of foreign investment, in 2010 and 2011, was fundamentally a land-grab. Indonesia experienced a mini internet boom as Yahoo, Groupon and DailySocial all made high-profile acquisitions. There was a single primary goal: to buy the leading Indonesian internet companies before someone else got their hands on them.</p>\r\n<p style=\"text-align: justify;\">The second wave has been more about establishing a long-term presence in the Indonesian market, rather than making outright acquisitions. The majority of transactions have been undertaken by Japanese and Chinese investors, who have tended to take a joint venture approach. However, the largest investment has come from Europe, in the shape of Rocket Internet and its six online ventures.</p>\r\n\r\n<h5>The first wave: Yahoo, daily deals, and more</h5>\r\n<img alt=\"Koprol-Yahoo logo\" src=\"http://redwing-asia.com/wp-content/uploads/Koprol-Yahoo-logo.jpg\" width=\"147\" height=\"41\" />   <img alt=\"Groupon Disdus logo\" src=\"http://redwing-asia.com/wp-content/uploads/Groupon-Disdus-logo.png\" width=\"99\" height=\"42\" />   <img alt=\"DealKeren logo\" src=\"http://redwing-asia.com/wp-content/uploads/DealKeren-logo.png\" width=\"125\" height=\"42\" />  <a href=\"http://redwing-asia.com/investors/foreign-investor/attachment/rumah123-logo/\" rel=\"attachment wp-att-789\"><img alt=\"Rumah123 logo\" src=\"http://redwing-asia.com/wp-content/uploads/Rumah123-logo.png\" width=\"169\" height=\"32\" /></a>\r\n<p style=\"text-align: justify;\">With Yahoo\'s surprise purchase of location-based service Koprol in 2010, Indonesia was suddenly on the tech world\'s map. Next, a daily deals frenzy broke out, with Groupon and LivingSocial both buying the leading Indonesian companies in 2011. Somewhat overshadowed by all this, a bidding war also went on for the leading property portals, with the top three all being acquired within a space of four months.</p>\r\n<p style=\"text-align: justify;\">Unlike many frenzies, where the common end result is buyer\'s remorse, a number of these acquisitions led to seller\'s remorse. The daily deals market globally took a swoon, while Yahoo was having its own internal problems, so the Koprol, Disdus and DealKeren deals have not yet fulfilled their obvious potential in Indonesia. Conversely, the property portals are thriving, and reporting healthy growth rates in line with the booming internet sector.</p>\r\n\r\n<h5>The second wave: establishing a beach-head</h5>\r\n<p style=\"text-align: justify;\">Going in to 2012, a consensus emerged among the foreign investors: Indonesia is a market where the rewards come to those who commit to the long-term development of the internet sector, but it is not a hit-and-run market. As part of broader long-term regional strategies, Google opened an office in Jakarta, Rocket Internet launched a number of e-commerce ventures, and the Japanese investor funds became significantly more active.</p>\r\n\r\n<h5>The most influential foreign investors in the Indonesia tech sector currently:</h5>\r\n<table border=\"0\">\r\n<tbody>\r\n<tr>\r\n<td><img alt=\"Zalora Lazada logos 2\" src=\"http://redwing-asia.com/wp-content/uploads/Zalora-Lazada-logos-2.png\" width=\"160\" height=\"120\" /></td>\r\n<td>Germany\'s Rocket Internet calls itself a startup incubator, but few other incubators have US$ 90 million of funding behind them.  Armed with this warchest, Rocket has launched six ventures so far in Indonesia (and others in four other SE Asia countries), from e-commerce to food delivery to price comparison sites. Its model is to appoint MBA-trained executives to run each unit, and then to hire large local teams.</td>\r\n</tr>\r\n<tr>\r\n<td><img alt=\"Rakuten logo\" src=\"http://redwing-asia.com/wp-content/uploads/Rakuten-logo.png\" width=\"160\" height=\"120\" /></td>\r\n<td>Rakuten is the world’s third largest e-commerce company, after Amazon and Taobao. It entered Indonesia in 2011, in partnership with local media company MNC, to launch online marketplace Rakuten Belanja. The site has experienced double-digit monthly growth, and eighteen months after launch boasted 400 merchants and 300,000 products offered online.</td>\r\n</tr>\r\n<tr>\r\n<td><img alt=\"Netprice.com logo 2\" src=\"http://redwing-asia.com/wp-content/uploads/Netprice.com-logo-2.png\" width=\"160\" height=\"120\" /></td>\r\n<td>NetPrice.com, a Japanese internet company that is listed on the Tokyo stock exchange, became the third-round investor in Tokpedia in 2012, joining previous investors East Ventures and CyberAgent. It is also an investor in payment platform Veritrans Indonesia. Netprice operates using multiple e-commerce business models in Japan, including auctions, online group buying and cross-border trading.</td>\r\n</tr>\r\n<tr>\r\n<td><img alt=\"Veritrans logo\" src=\"http://redwing-asia.com/wp-content/uploads/Veritrans-logo.png\" width=\"160\" height=\"120\" /></td>\r\n<td>Veritrans Indonesia is a joint venture between VeriTrans Inc. and Netprice.com of Japan together with local Indonesian company MidPlaza Group. Its secure online payment platform was launched in 2012 to compete with a number of other plaforms such as Doku, iPaymu and Indonesia\'s top two banks, BCA and Mandiri.</td>\r\n</tr>\r\n<tr>\r\n<td><img alt=\"GREE Ventures logo\" src=\"http://redwing-asia.com/wp-content/uploads/GREE-Ventures-logo.png\" width=\"160\" height=\"120\" /></td>\r\n<td>GREE Ventures is the ventures arm of Japan\'s mobile social gaming company GREE. The fund has US$25m of which 60% is allocated to SE Asia startups. After investments in Pricearea.com and Bukalapak in 2012, GREE Ventures followed East Ventures into Berrybenka, part of the current trend towards e-commerce verticals.</td>\r\n</tr>\r\n<tr>\r\n<td><img alt=\"CyberAgent logo 2\" src=\"http://redwing-asia.com/wp-content/uploads/CyberAgent-logo-2.png\" width=\"160\" height=\"120\" /></td>\r\n<td>CyberAgent is a Japanese VC which invested in e-commerce sites Tokopedia in 2011 and Bilna in 2012, both of which are also part of East Ventures\' portfolio. Within SE Asia, CyberAgent is focused primarily on Indonesia in Vietnam, with up to US$20m allocated to the two countries.</td>\r\n</tr>\r\n<tr>\r\n<td><img alt=\"Google logo\" src=\"http://redwing-asia.com/wp-content/uploads/Google-logo.png\" width=\"160\" height=\"120\" /></td>\r\n<td>Google opened its Indonesia office in May 2012, and has been focused on promoting its online advertising services to small and medium sized businesses in Indonesia, as well as forming local marketing partnerships. With around 50 employees in Indonesia, compared to more than 50,000 worldwide, it fits the common pattern of a \"very large global corporation which has a small business in Indonesia\".</td>\r\n</tr>\r\n</tbody>\r\n</table>\r\n<h6>Redwing strives for accuracy in its company analyses - if there are any details you would like to add to this analysis please contact us here.</h6>','The most influential foreign investors in Indonesia tech','','inherit','closed','open','','1958-revision-5','','','2013-03-15 01:44:05','2013-03-15 01:44:05','',1958,'http://stage.redwing-asia.com/uncategorized/1958-revision-5/',0,'revision','',0),