PA N D E M I C , C R I S I S ,

W H AT ’ S N E X T F O R
E N T R E P R E N E U RS ?
Jakarta, May 2020

Benedikta Atika | ANGIN

ABOUT ME Benedikta Atika
Impact Investment Lead

FINANCIAL SERVICES

SOCIAL ENTREPRENEURSHIP
About ANGIN Investment
We act as a bridge to support both investors and entrepreneurs with key services along
the fundraising journey

ANGEL INVESTMENT NETWORK INDONESIA

Angel Investors Entrepreneurs

Their Challenges Support to Angel Support to Their Challenges

Investors Entrepreneur

No access to consistent quality
deal flows
Exposed too late to startups
No dedicated time and
expertise
No support to assist in
portfolio management
Weekly curated deal flows Pitching preparation Low access to vetted investors
Screening and due diligence Due diligence assistance Do not know investor
Investment execution Advises on transactional expectations
assistance documentation Low knowledge on the
Education and training Access to strategic investors investment documentation and
Access to the entrepreneurial Access to relevant networks negotiation
ecosystems (e.g. events) and market In search for more than money to support
intelligence the business growth
Our Journey
Transaction

2014 - 2015 Foundation

ANGIN founded as a Women Fund,
100+ 40+ 50+ 3 100+
Paying clients Deals executed Deals supported Deals exited Deals showcased
subsidiary of a non-profit by our clients in 2018-19

2015 Spin-off
Knowledge/Learn
Spin-off from the foundation and new
(David) management on-board
20+ 500+
Published research Trained
entrepreneurs
2016 ANGIN Investment and Advisory
services created

Network/connect
2017 Seed-round Fundraising
Raised capital from prominent VC and 100+ 50+
Indonesian angel investors to fuel our Connections made Participating
expansion In 2018-19 investors

Present Expansion
ANGIN Clients
ANGIN is a diverse group of investors, from different industry background
and with investment preferences

Individual
s

Belinda Tanoto Mari Elka Pangestu Noni Purnomo

Tanoto Foundation Former Minister Blue Bird Group

Shaun Gozali Shinta Kamdani

PT Sayap Mas Utama Sintesa Group

Institutionals
Some companies we invested in...
Below are several companies that have been invested by our clients with our
facilitation.

Exit

Exit Exit

Social enterprises / mission-driven

businesses
What type of startups we invest in?
We play where few investors are playing.

Stage Pre-seed Seed Series A

Ticket Size < USD 100k < USD 100-250K >USD 250k

Typical Investors ECF Angel Investors Venture Capitals,

Impact Investors

How Type Sector

Equity Company Type Agnostic, including but

Debt not limited to…
Grant Non-tech Tech Health Fintech

Mission Orientation Education Fashion

F&B Agriculture
Impact Commercial
 ANGIN IMPACT Our Footprint Across the Country

Makassar, local government Indonesia 4.0

Samarinda, Telkomsel Nexdev, initiative, mentoring SMEs session Manado, AIS UNDIP AIS
startup competition judge Forum event pitching session
Bangka Belitung, local
government, value chain research
on
several commodities

Takengon, Canada
TPSA, Access to Finance
for women SMEs

Lampung, local corporate, research

on art secondary market

Bandung, Amazon AWS,

Startup event organizer

Jakarta, more than 100

events
Jogjakarta, Save the Children,
Training on investment landscape
Bali, Amazon AWS,
Startup event organizer
Tanimbar, INPEX Bank of Indonesia,
value chain research Team
Lombok, OXFAM, value chain research Ende Flores, local NGO, Timor Leste Oecusse, UNDP
Tenun women entrepreneur pitching session judge Timor Leste, training for local
entrepreneurs
Early-stage investment
landscape
 INVESTOR PROFILES
Family/ Friends
• First funding source
• Light documents
request
• USD 25K - 50K
Impact Investor
• Focus on impact business
• Expect financial benefits
in return and impact
• Lots are international
• USD 150K - USD 1Mn or
more
Crowdfunding/
P2P Lending
• Individual investors
• Low value add
• Ticket size below USD 20K
Angel Investor
• High net-worth individual
• Fast and flexible
• Assistance and mentoring
• USD 50K - 100K
Bank
• Risk averse
• Ask collateral/track record
• Interest of 10%-15% annually
• Need guarantee and solid cash
flow
Venture Capitalist
• Investment professionals
• Risk takers
• Tech focus
• USD 50K – >USD 1Mn
Accelerator and
Incubator
• Provide mentoring
• Sometimes also gives funding
• Can be grant or equity
• USD 50K – USD 200k or more
Grant, Competition,
Awards
• Run by international agency,
government, corporate
• Distracting is too leveraged
• Grant, no expected return
• USD 20k -50k
 WHERE TO FIND INVESTORS
USD

Bank

Venture Impact
Capitalist Investor
Angel
Investor

Crowdfunding/
P2P Lending

Accelerator
and Incubator
Grant,
Competition,
Awards

Family/ Friends
Stage
 In general, investors will want to hear..

Do I get what Is there any Is there any

you are doing? market validation? business potential?
 V I S I B L E I M PA C T
DURING AND POST
PA N D E M I C
 Lower disposable income

CUSTOMERS

Changes in habits
Lower disposable income
• Focus on priority (health, food)
• Reduce non-essential spending
• Price sensitive
Changes in habits
• Going more local
• Technology push
• Online-offline integration
• Increase awareness towards social and
environmental impact
 IMPACT TO THE ENTREPRENEURS

Those who Those who Those who

struggle survive thrive
Closing down Survival mode Increased demand
Extreme downsizing Limited operation New options
W H AT A B O U T
INVESTORS?
 IMPACT TO INVESTMENT ACTIVITY
• The majority of investors think COVID-19 will have a negative
(32%) or somewhat negative (36%) impact on early-stage
investment activity in 2020.

What does it mean?

• Slowing down the activity
• Changes in the investment allocation
• Changes in the investment sector interests

Source: 500 Startups Survey

 HOW LONG DID THEY EXPECT THIS
COVID-19 IMPACT WOULD LAST?

Source: 500 Startups Survey

 Focus on portfolio
WHAT
INVESTORS
ARE NOW
DOING
Re-strategise the investment
Focus on portfolio
• Provide liquidity support
• emergency cash
• bridge fund
• Provide mentorship
• Involve in the business strategy
Re-strategise the investment
• Rise interest in emerging sectors, example
• Healthcare
• Remote solution
• Offline – online integration
• Set a new lens in looking at talents
W H AT E N T R E P R E N E U R S
CAN DO
 The 4 C ’s

Cash flow Focus on your liquidity, create budget for short term (3 months)
and medium-long term (12 months)

Collaboration Find your allies and create values together in this situation

Character Build your resilience, be agile, strengthen your leadership

Create value to your stakeholders, innovate while show that you have
Compassion genuine concerns to whom surviving together in this situation (your
team members, customers, suppliers)

Source: Modified from Hutchin (2020) in https://www.antler.co/news/angel-investors-on-funding-startups-during-covid19

Post-pandemic: What to explore?

• Consider how you can create better values

• Explore new business models

• Explore new funding opportunities

LET’S DISCUSS

atika@angin.id
 • RB Consulting 2020, slide material
• Artemis Impact 2020, slide material
• 500 Startups Survey Result
• https://www.entrepreneur.com/article/350215
• https://theconversation.com/the-coronavirus-crisis-a-catalyst-for-
REFERENCES entrepreneurship-135005
• https://www.thejakartapost.com/academia/2020/05/12/how-businesses-can-
survive-the-covid-19-pandemic.html
• https://www.antler.co/news/angel-investors-on-funding-startups-during-
covid19
• https://www.antler.co/news/angel-investors-on-funding-startups-during-
covid19