The business landscape is currently undergoing significant changes due to digitalization, with numerous startups emerging and competing with established companies across various industries. Many digital-based startups are seizing opportunities amidst the competition, and established companies are now recognizing startups as their competitors.

“For instance, Hilton not only competes with Hyatt, Marriott, Pullman, or other hotels but also with Airbnb,” stated Eddi Danusaputro, CEO of BNI Ventures, citing the hotel industry as an example. Eddi was a guest lecturer in the Business Risk and Venture Capital class at SBM ITB, Bandung (21/3).

According to Eddi, startups currently have ample development opportunities, and venture capital (VC) is capitalizing on this by investing in them. VCs act as startup investors, providing funding by purchasing company shares to support its operations and growth. Therefore, startups are now vying for VCs to become their investors.

However, investors are becoming increasingly discerning in their investment decisions. Eddi outlined how VCs evaluate startups for investment by considering six main factors: founding team, market potential, business concept, market competition, traction, and strategic fit.

Each factor plays a crucial role in determining the business’s direction. The combination of founders, business model, and strategic fit is paramount in supporting successful business execution and growth.

Eddi also stressed that VCs focus on specific metrics at each stage of the business. In the early stages, they prioritize the founding team, while in the growth stages, they concentrate on business traction. Eddi highlighted the significance of having the right founder with a shared vision and specific role.

“The market may change, the business environment may evolve, but the founder remains constant. What matters is how they navigate the dynamic environment.”

After the class session, Eddi engaged in a discussion session with the students, making the lecture interactive and insightful, thereby enhancing the students’ understanding of the current business environment.

Written by Student Reporter (Reyna Aszzura Rasyida, Management 2024)