Venture Capital Impairments and Their Impact on Indonesia’s Startup Ecosystem
Article Sidebar
Main Article Content
Abstract
SoftBank's significant venture capital investments have played a crucial role in shaping Indonesia's startup ecosystem, enabling rapid business expansion and technological advancements. However, recent investment impairments have raised concerns regarding sustainability and long-term viability. This study explores the causes and consequences of SoftBank's portfolio impairments, examining both external factors such as market volatility, regulatory uncertainties, and shifting consumer preferences, as well as internal issues like weak business models and inefficient financial management. The findings indicate that these impairments not only affect investors but also pose financial and operational challenges for startups reliant on continuous funding. In response, strategic measures such as risk diversification, improved governance, and adaptive business models are essential for mitigating the negative impacts. Additionally, investors must adopt more rigorous due diligence processes, while startups should enhance financial transparency and innovation strategies. Policymakers also play a key role in establishing a stable investment climate. By addressing these challenges, stakeholders can foster a more resilient and sustainable startup ecosystem in Indonesia.
Article Details
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
This is a state of publication that makes writers respect the copyright of their articles and enables us to ensure full copyright protection and to disseminate international journals. Authors are asked to transfer copyrights to ensure the widest possible dissemination of information. Notification will be sent to the relevant Author who confirms receipt of the manuscript. If citations from other copyrighted works are included, the Author must obtain written permission from the copyright owner and give credit to the source in the article.
References
Alfiana, A., Moridu, I., Elisabeth, C. R., Devi, E. K., & Maulana, Y. (2023). Menavigasi Penurunan Nilai Portofolio Investasi yang Terkait dengan SoftBank: Implikasi dan Upaya Strategis. Jurnal Bisnis Dan Manajemen West Science, 2(03), 283-288.
Amit, S., Levermore, R., & Kafy, A. (2024). Reimagining entrepreneurship by utilizing venture dynamics in sharing economy: evaluating the symbiosis of macro and micro factors for sustainable capital flows in developing markets. Business Strategy & Development, 7(3).
Anwar, M., Yusup, M., Millah, S., & Purnama, S. (2022). The role of business incubators in developing local digital startups in indonesia. Startupreneur Business Digital (Sabda Journal), 1(1), 1-10.
Arifin, M. M. (2018). Strategi Investasi Dengan Opsi Beli Atau Sewa Peralatan Pada Pembukaan Tambang Besar Batubesi PT Timah Tbk-Belitung Timur, Kepulauan Bangka Belitung. Prosiding Temu Profesi Tahunan PERHAPI, 1(1), 11–18.
Bakri, B., ZM, A., Defitri, S., & Mu’min, H. (2024). The effect of ai technology, innovation readiness, and digital entrepreneurship on competitive advantage in start up in jakarta. West Science Interdisciplinary Studies, 2(04), 841-850.
Bello, Z. (2005). Socially responsible investing and portfolio diversification. The Journal of Financial Research, 28(1), 41-57. https://doi.org/10.1111/j.1475-6803.2005.00113.x
Bwire, A. (2021). Loan asset indicators and commercial bank fragility in kenya. European Journal of Management Issues, 29(1), 25-36.
Chen, H. (2024). Dependence of investing strategies on expected discounted rate. Advances in Economics Management and Political Sciences, 80(1), 258-265.
Dananjaya, I., & Darmawan, M. R. (2019). Penggunaan quality investing sebagai strategi investasi jangka pendek di bursa efek indonesia (Doctoral dissertation, PPM Manajemen).
Dykha, M., Mohylova, A., Устік, Т., Bliumska-Danko, K., Морохова, В., & Tchon, L. (2021). Marketing of start-ups and innovations in agricultural entrepreneurship. Journal of Agriculture and Crops, (81), 27-34.
Fahmi, A. (2020). Analisis kausalitas antara neraca transaksi berjalan, pertumbuhan pdb, nilai tukar, dan investasi modal asing langsung. FORUM EKONOMI, 22(1), 1–10.
Ge, C. (2023). Research on withdrawal behavior of foreign venture capital under the industry development and changes--Take SoftBank Group as an example. Highlights in Business, Economics and Management, 15, 380–387.
Gleason, K., Kannan, Y., & Rauch, C. (2022). Fraud in startups: what stakeholders need to know. Journal of Financial Crime, 29(4), 1191-1221.
Groff, M. and Mörec, B. (2020). Ifrs 9 transition effect on equity in a post bank recovery environment: the case of slovenia. Economic Research-Ekonomska Istraživanja, 34(1), 670-686.
Higginbotham, S. (2018). The internet of trash [Internet of Everything]. IEEE Spectrum, 55(6), 17.
Ismail, I. A. (2021). Efektivitas Pelayanan Dinas Penanaman Modal Dan Pelayanan Terpadu Satu Pintu Dalam Meningkatkan Investasi Di Kabupaten Pangkep (Doctoral dissertation, Universitas Bosowa).
Jeong, J., Kim, J., Son, H., & Nam, D. (2020). The role of venture capital investment in startups’ sustainable growth and performance: focusing on absorptive capacity and venture capitalists’ reputation. Sustainability, 12(8), 3447.
Khan, N., Hai-tao, Q., Jing, Q., Wei, C., & Wang, S. (2021). Does venture capital investment spur innovation? a cross-countries analysis. Sage Open, 11(1).
Korzeb, Z. and Niedziółka, P. (2020). Resistance of commercial banks to the crisis caused by the covid-19 pandemic: the case of poland. Equilibrium Quarterly Journal of Economics and Economic Policy, 15(2), 205-234.
Kusumah, H. and Faturohman, T. (2023). Impact of restructuritation strategies and financial instruments for loan loss provision. European Journal of Business Management and Research, 8(5), 198-204.
Limar, V. (2023). The role of management in fostering startup development with venture investments. Journal of Innovations and Sustainability, 7(4), 11.
Manya, M. and Rabanal, M. (2023). Application of ifrs 9 financial instruments and the exposure to credit risk (case study in ecuador). Ilomata International Journal of Tax and Accounting, 4(2), 324-340.
Miraza, C. and Shauki, E. (2023). The effect of venture capital on the growth of startups in indonesia: a case study on bri ventures. Journal of Economics Business and Accountancy Ventura, 25(3), 358-368.
Mutaqin, D. J., Nurhayani, F. O., & Rahayu, N. H. (2022). Performa Industri Hutan Kayu dan Strategi Pemulihan Pascapandemi Covid-19. Bappenas Working Papers, 5(1), 48–62.
Noviawati, L. (2000). Pengaruh tingkat bunga deposito dan tingkat inflasi terhadap harga pasar saham perusahaan pada industri rokok yang go public melalui PT. BES (Doctoral dissertation, Widya Mandala Catholic University Surabaya).
Peniaz, L. (2024). The role of startups in creating innovative ecosystems. Veda a perspektivy, (1), 32.
Poespito, T. A. R., & Gunawan, J. (2021). Identifikasi Peluang dan Tantangan Pasar Energi Prosumer di Indonesia: Studi Residential Rooftop Solar PV Prosumers. Jurnal Sains Dan Seni ITS, 9(2), D244–D249.
Rachman, A., Jasmin, J., Ibadurrahman, I., & Utami, E. (2024). The relationship between startup incubator development and venture capital investment on digital economic growth in indonesia. The Es Economics and Entrepreneurship, 2(03), 157-169.
Shareef, M., Dwivedi, Y., Hosain, M., Giannakis, M., & Ahmed, J. (2024). Entrepreneurial ecosystem of startups in bangladesh: mechanism of balanced coexistence. International Journal of Entrepreneurial Behaviour & Research, 30(5), 1314-1346.
Siregar, M. M. T. (2021). Investasi Modal Ventura Asing Kepada Start-Up Company (Perusahaan Rintisan) di Indonesia. Jurist-Diction, 4(4), 1567–1582.
Sumarjo, C. M. C., & Mangantar, M. (2022). Pengaruh risiko geopolitik, proftabilitas dan leverage terhadap return saham perusahaan pertambangan subsektor migas yang terdaftar di bursa efek indonesia. Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis Dan Akuntansi, 10(3), 1027–1036.
Trinks, A., Scholtens, B., Mulder, M., & Dam, L. (2018). Fossil fuel divestment and portfolio performance. Ecological Economics, 146, 740-748.
Tripathi, N., Seppänen, P., Boominathan, G., Oivo, M., & Liukkunen, K. (2019). Insights into startup ecosystems through exploration of multi-vocal literature. Information and Software Technology, 105, 56-77.
Utami, V. W., & Kartika, R. (2020). Investasi Saham pada Sektor Perbankan adalah Pilihan yang Tepat Bagi Investor di Pasar Modal. Jurnal Sains Sosio Humaniora, 4(2), 894–897.
Volkmann, C., Fichter, K., Klofsten, M., & Audretsch, D. (2019). Sustainable entrepreneurial ecosystems: an emerging field of research. Small Business Economics, 56(3), 1047-1055.
Wagner, S. (2021). Startups in the supply chain ecosystem: an organizing framework and research opportunities. International Journal of Physical Distribution & Logistics Management, 51(10), 1130-1157.
Wang, L. (2020). The effect of SoftBank Vision Fund on venture capital cycles (Doctoral dissertation).
Xiao, Y. (2021, December). Review of the portfolio theory application. In 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021) (pp. 3042-3046). Atlantis Press.