Produced in partnership with Bain & Company

This joint report by AC Ventures and Bain & Company is the premier collaborative analysis of Indonesia’s venture capital (VC) landscape, revealing a significant shift in investment trends and expectations. The year 2023 is projected to see a considerable decline in deal value, estimated between 70% to 80%. This follows a period of robust growth during 2020-2021, signaling a maturation phase within the VC sector. Investors are now increasingly prioritizing startups that demonstrate strong unit economics and clear paths to profitability.

Another important trend is the shift in exit strategies. While trade sales were once predominant, there is now a growing inclination toward initial public offerings (IPOs), although the post-2022 environment may impact the feasibility of mega-IPOs. Despite these broader challenges, early-stage investments, particularly in sectors like electric mobility and healthcare, are expected to experience growth.

This optimism is underpinned by projections that Indonesia’s digital economy will expand to US$360 billion by 2030. Investors are increasingly focusing on emerging investment themes such as electric vehicles, energy transition, and healthcare, indicating a strategic pivot to align with evolving market dynamics and opportunities.