Investing in a Startup: Promising Without the Need to Do Hands On

Investing in a Startup: Promising Without the Need to Do Hands On

Promising startup developments trigger massive investments in various companies. Starting from e-commerce startups, fintech, to on-demand services, they are increasingly in demand. As of 2020 alone, in Indonesia there are six startups that have been included in the 2020 Indonesian Unicorn list according to DailySocial. Unicorn means a startup that has a valuation of over USD 1 billion or the equivalent of IDR 14.1 trillion.

With the rapid development of startups in Indonesia, it's no wonder that investors are interested. If possible, you can also invest in startups. Learn first what needs to be considered and considered, the following.

Know the Benefits of Investing in Startups

Profits from investing in startups come from dividends (profit sharing) so that the profits achieved by investors can vary. The amount of dividends received depends on the number of shares the investor has in the company. Profits can also be obtained when the company's shares are sold. If the value of the startup increases, the selling price will increase compared to when the stock was first purchased.

Get to Know Investment in Startup Companies Well

Investment in startups is usually done through an equity investment scheme and accompanied by ownership of the company's shares.

Just like stocks, investing in startups is a type of investment that is quite high risk, but with high profits. The time needed to make a profit is quite long. Investors will benefit greatly if the company's value increases and the performance is positive.

Considering that startup companies are usually still figuring out their business path, you need to know the characteristics of a company that has the potential to survive or not, namely:

Unique and Solutive

According to the website of the Ministry of Communication and Information of the Republic of Indonesia, there are 2,193 startups as of 2019. This number will increase, so you have to be observant in seeing the uniqueness of startups. Startups must have a unique focus on meeting the needs of target consumers.

Have a Focused Product

Choose a startup product that has a focus on one or several products/services. After being well received by consumers, new companies can launch new products that have similar core businesses. One example is Gojek.

Able to Survive in the Midst of Uncertainty

One of the conditions that may hit a startup business is limited funds so they are unable to carry out promotions, even though promotions are important for companies that have just started.

Able to Adapt

Startup companies must also be able to adapt quickly to changing market conditions, technology, or competitors.

Interested in becoming a startup investor? Come on, save first!

Saving Investment Funds with Bank Sinarmas Online Deposits: Faster, Can Get Prizes

Collecting investment funds is not easy if you only rely on savings that take a long time. Therefore, if you want your investment funds to accumulate faster, try opening a term savings account such as Bank Sinarmas Online Deposit.

Deposito Online offers a placement period that you can choose according to your needs, starting from 1, 3, 6 months up to 36 months. The interest is also competitive, up to 5.25% p.a.