The term "tech winter" refers to the downturn in technology companies and start-ups due to a decline in performance and investor interest. Many Indonesian start-ups are currently experiencing this phenomenon.
To achieve business operations that are effective and focus on profit, start-ups must take a number of strategic steps, he said at the opening of the HUB.ID Accelerator Partner Day x Nex-BE Fest 2023 event in Nusa Dua, Badung, Bali, on Wednesday.
"First, start-ups must innovate to create products that reach product-market fit," he said.
Then, he continued, products that fit the market must also be supported by a business model that is not only profitable, but can also be developed on a large scale.
He also highlighted the importance of having a strong team in facing start-up business challenges. In addition, start-up players must also employ the best digital talents and improve team performance to attain success.
Lastly, he highlighted the importance of building strong networks with strategic partners. Collaborations with parties that can support the growth of start-ups are deemed a strategic step in facing the change in the business map amid the tech winter.
He said Indonesia is the country with the highest number of start-ups in Southeast Asia and ranked sixth in the world in 2023.
With those achievements, he added, Indonesia must strengthen efforts to improve the quality of start-up players.
He also asked start-up players to develop innovations in various aspects, including financing.
The deputy minister said that a variety in innovations will open opportunities for business growth for the start-up industry.
"If previously the trend of financing generally came from financing by venture capital, currently, other forms of financing are projected to emerge, such as crowdfunding, angel investors, incubators, and the focus of funding that is based on social and environmental impacts," he added.
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Translator: Fathur Rochman, Raka Adji
Editor: Rahmad Nasution
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