The rapid advancement of technology has driven transformation in various sectors, including the digital business world. Technology companies have developed multiple innovations that continue to evolve, making them a significant force in changing the face of various industrial sectors.
Eddiwan Danusaputro, Venture Capital Practitioner Startups Investors, highlighted how technological advancements are reshaping the global business landscape. He cited Gojek and Grab, two ride-hailing technology companies that have created unique business models without owning fixed assets such as vehicles or permanent drivers. Through partnership systems and digital applications, these companies have successfully built extensive service networks and achieved significant valuations quickly.
During the Global Summer Week session held on Thursday, July 17, 2025, at FEB UGM, Eddiwan Danusaputro stated that this phenomenon indicates that technology companies are now emerging as key players in various digital service sectors, including the digital financial industry. Many technology companies are expanding into other sectors and forming integrated digital business ecosystems (one-stop service providers). Alibaba in China is a prime example; the company started in the e-commerce sector, then expanded into digital payments (Alipay), digital marketing (Alimama), and various other services under the Alibaba Group.
“In Indonesia, a similar trend can be seen. Many technology companies that initially only provided one service are now expanding their scope to other sectors such as insurance and finance. This strategy allows companies to generate revenue from various sources within a single digital ecosystem,” he explained.
Business Financing through Venture Capital
Eddiwan noted that the rapid growth of these technology companies is closely tied to significant funding support, one of which is through venture capital schemes. Venture capital has become the primary choice for early-stage startups that lack access to traditional financing options like bank loans. Unlike banks, which require asset collateral, venture capital provides funding by purchasing company shares. This means that startup founders must relinquish part of their ownership and grant some decision-making authority to investors. Typically, the agreed-upon ownership stake is below 20%.
From the investor’s perspective, he continued, this scheme is high risk. However, it can generate significant returns, especially if the company succeeds in growing and listing on the stock exchange through an Initial Public Offering (IPO). In addition to venture capital, there is a private equity (PE) financing scheme generally intended for more mature or older companies that need revitalization.
Criteria Sought by Investors
Eddiwan said that venture capitalists have several criteria for assessing investment feasibility. One of the main questions is what problem the startup wants to solve and whether the solution offered is a product-market fit, or truly needed and wanted by the market. In addition, the quality of the founding team is also crucial, especially in the early stages, which are still full of business risks and uncertainties. Investors tend to seek resilient and adaptable founders, with an ideal team composition of 2-3 individuals each playing distinct roles: a hipster (design and user experience), a hustler (business and marketing), and a hacker (technology).
“In general, investors evaluate five key aspects: the founding team, business traction, technological strength, market timing, and the credibility of the venture,” he explained.
At the end of his presentation, Eddiwan emphasized the importance of selecting the right business model. This decision will determine the potential for growth and revenue sources. There are various business models for digital companies, such as e-commerce/marketplace, on-demand services, subscription-based models, freemium, hidden revenue, peer-to-peer marketplaces, ad-supported models, and open-source models.
Reported by: Najwah Ariella Puteri
Editor: Kurnia Ekaptiningrum
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