Closing the third round at $240 million (more than 3.3 trillion Rupiah), venture capital for seed funding in Southeast Asia, Jungle Ventures, plans to invest in two Indonesian based startups by the end of this year. Jungle Ventures’ Managing Partners, David Gowdey said, both are platforms targeting retail consumers in Series A.
“We’ve always been focusing on startups focused on social commerce, consumer, and software. Currently, only two startups from Indonesia are to receive funding from Jungle Ventures [the third round]. It’s possible to have another startup to invest from Southeast Asia by 2020.”
The ticket size for series A is between $3 million up to $7.5 million, while seed funding is usually at $500 thousand up to $1 million.
Jungle Ventures has doubled the funds from the previous round, Jungle Ventures II (2016), with nearly 60% comes from outside Asia. More than 90% of the capital comes from institutional investors from North America, Europe, the Middle East, and Asia. The new investors dominate this round about 70%, while the rest have previously participated, including the $40 million which comes separately in the managed account.
The fresh money is to be invested in various tech-companies and digital businesses in Southeast Asia. Previously, Jungle Ventures has invested in Kredivo, RedDoorz, Sociolla, and SweetEscape.
Focus on margin, not GMV
In addition to funding, the company aims to support startups by providing consultation and mentorship. He said that the company is to assist startups to focus more on margin, not GMV. The step was made to avoid potential issues in the future.
“We’ve always been encouraging startups to focus on margin instead of GMV, therefore, the long-term plans and target can be measured, not only the prediction. We use a different approach in searching for potential startups, we’re looking for those who aren’t fundraising,” he said.
It was supported by Amit Anand who has expertise in the software development sector and David Gowdey who is responsible for Koprol acquisition by Yahoo a few years ago, Jungle Ventures expects to create an Indonesian startup with the best software to compete in the global market.
“I think Indonesian talents are improving, especially those who have experience in the unicorns like Gojek, Tokopedia, Bukalapak and Traveloka. When they’re no longer at the company and building their own, they’re expected to be mature enough to create products and services in demand,” he said.
Original article is in Indonesian, translated by Kristin Siagian