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Sustainability Professionals in Indonesia: A First Showcase

Posted on September 4, 2023 | by Ignatia | Leave a Comment

This new showcase is brought to you by ANGIN.

Introduction

ANGIN team is glad to present to you: “Sustainability Professionals in Indonesia: A First Showcase”!

This showcase highlights 30 key individuals with extensive expertise in sustainability. We emphasize professionals from capital providers, with a further acknowledgment for those who contribute significantly to nurturing Indonesia’s entrepreneurial ecosystem through various ways.

Report Overview

As the Indonesian ESG and sustainability landscape grows, so does the demand for expertise. There is currently a large gap in the demand for sustainability professionals, and the availability of local talents. We are receiving weekly requests from investor clients, partners who are looking to develop their capacity and human resources in sustainability and therefore search for individual key talents to join this effort.

We are proud to always actively contribute in advancing Indonesia’s ESG and Sustainability efforts through impact-related capacity building, maintaining an active network of impact investors, and developing market intelligences regarding sustainability. We witnessed the success of our previous showcase and market landscaping (Checkout our report! : 66 People and Organizations Moving Social Entrepreneurship and Impact Investment in Indonesia ) (Checkout our report! : 40 Women Leaders shaping Gender Lens Investment in Indonesia).

We thought providing, while not exhaustive, a comprehensive list of accredited individuals in the sustainability field would help everyone. Moving towards prompting a bigger interest in sustainability, our objective is to provide a tool where sustainability can grow its recognition.

This showcase is likewise an initial effort to inspire the new generation of workers to join the talent pool of ESG and sustainability. We aim to guide future talents who are interested through the past professional and educational insights of these figures, in hope to mimic their success.

Out of the 30 individuals we have shortlisted, we were able to extract some early learnings. This initial insight likewise prompted another report that will soon be published by ANGIN, regarding the gap between the sustainability job market demand and the readiness of the talent pool in Indonesia, and how improvement in Indonesian higher education can play a part, stay tuned!

This showcase was created by ANGIN team.

Should you believe we overlooked anyone, please submit their details to the link below so we can continue to grow the recognition for sustainability in Indonesia!

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Hacktiv8 Impact Report 2022

Posted on April 14, 2023 | by Ignatia | Leave a Comment

This new report is brought to you by ANGIN and Hacktiv8

Introduction

ANGIN is pleased to announce that we have collaborated with Hacktiv8 in producing their impact report!

Hacktiv8, the pioneer of intensive coding bootcamp in Indonesia, has launched their “2022 Outcomes and Impact Report”, which outlines the company’s mission, journey, achievements, and impact on the wider community.

Founded in 2016, Hacktiv8 has over 1,700 full-time bootcamp graduates as of December 2022. Of these, 93% of them managed to get a job in the IT field in less than three months, and gained an average salary increase of 84% compared to their previous jobs. In addition, Hacktiv8 graduates record an average annual salary of IDR 130 million, or 40% higher than the industry standard.

Report Overview

“We are incredibly proud to showcase Hacktiv8’s journey in this ‘2022 Outcomes and Impact Report’. We firmly believe that Hacktiv8 will continue to make a significant positive impact towards the progress of Indonesia’s tech space. Our goal for 2023 is to create over 2,600 job opportunities, generate 2,700 graduates, and expand our network of Hiring Partners to a thousand companies,” said Ronald Ishak, Co-Founder and CEO of Hacktiv8.

This impact report was created in collaboration with ANGIN. Should you wish to create your own impact report, please contact ANGIN at david@angin.id!

Recognition

About Hacktiv8

Founded by Ronald Ishak and Riza Fahmi in 2016, Hacktiv8 is a coding bootcamp to nurture programmers and other digital talent who are ready to contribute to Indonesia’s technological and economic growth.

The three main programs offered are Full Stack Javascript, Data Science, and Performance Marketing. Hacktiv8 graduates will be assisted in getting jobs at hiring partner companies such as GoTo, Bukalapak, Xendit, Midtrans, KoinWorks, Loket, and Axiata Digital.

This impact report was created in collaboration with ANGIN. Feel free to check all our impact reports generated by ANGIN Team at the following link!

Should you wish to create your own impact report, please contact ANGIN at david@angin.id!

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BINAR Impact Report 2022

Posted on April 11, 2023 | by Ignatia | Leave a Comment

This new report is brought to you by ANGIN and BINAR

Introduction

ANGIN is pleased to announce that we have collaborated with BINAR (a digital skills education provider) in producing their impact report!

In the 2022 Impact Report, BINAR achieved a number of milestones throughout the year that bring optimism to making Indonesia a global digital talent hub.

2022 will witness a surge in the demand for upskilling and reskilling digital skills, as evidenced by the rising number of students enrolled at BINAR. Hundreds of thousands of learners are leveraging BINAR’s various training programs, such as Binar Bootcamp, Binar Insight, BinarGo!, Workshop, and other partner training programs, to enhance their digital knowledge and skills.

Report Overview

The achievements of BINAR throughout 2022 inspire optimism in Alamanda Shantika, the CEO of BINAR, to make Indonesia a global hub for digital talent. “The accomplishments outlined in the BINAR Impact Report 2022 inspire us to continue presenting the best products and services. We extend our gratitude to our students, partners, and all those who believe in BINAR,” concluded Alamanda.

Take the first step towards becoming a digital talent, enrollment in the various training programs offered by BINAR is available at www.binaracademy.com.

Should you need assistance on building either impact reports or tailored-insight reports, feel free to reach out to ANGIN at contact@angin.id, we would be delighted to provide the support!

Recognition

About BINAR

BINAR is a digital skills education provider that was founded in 2017 by Alamanda Shantika with two other Gojek alumni, namely Dita Aisyah and Seto Lareno.

As a pioneer in the field of digital expertise, BINAR provides new learning experiences such as Experiential Learning, Flipped Learning, Project/ Problem Based Learning and Collaborative Learning, with the result being digital skills and soft skill expertise that are much needed in today’s era. Through its various training programs, namely Binar Bootcamp, BinarGo!, Binar DTA (digital transformation training for business) and talent placement services (Job Connect). BINAR seeks to support the career growth of high school graduates/equivalents, students, people who wish to change careers (career shifters), and workers who want to improve their capabilities.

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ANGIN Annual Report 2022

Posted on March 21, 2023 | by Ignatia | Leave a Comment

ANGIN 2022 in a Glimpse!

At ANGIN, we have seen how our best interventions this year are coming from bright minds with the willingness to take meaningful leaps. We have seen first-hand that value-add applied well can build better businesses in this entrepreneurship ecosystem.

Thus, despite the challenging global trends, ANGIN still believes that Indonesia presents the resilience trend as displayed across the region and we are ready to keep moving forward together by 2023.

Delivering this ANGIN 2022 annual report, we are thrilled to share the key highlights of ANGIN in 2022 from our investment platform, ANGIN Investment, and leading consulting firm, ANGIN Advisory!

You can find statistics on the enterprises we have screened and worked on, updates on our publications, and highlights of our events.

Report Overview

In 2022, ANGIN Investment screened more than 2,000 enterprises and showcased more than 50 enterprises to our investor network. Also, we have cumulatively channeled investments more than USD 31,7 million and executed more than 150 investments through ANGIN investor network.

On the other hand, ANGIN Advisory delivered more than 10 capacity building projects and 10 tailored insight reports. Showcasing our footprint by this year, we have trained more than 200 entrepreneurs across 18 Indonesia cities and 18 countries to extend the entrepreneurship solutions.

We thank our clients and partners over the past year, your trust is on the right hand. We shared your values and outcome in excitement and will continue to do so. Let us know if you want to engage with us through our upcoming 2023 projects! We would be more than happy to collaborate!

Download our report to learn more about our 2022 activities.

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CAKAP Social Impact Report 2021

Posted on June 24, 2022 | by Aisha Nadira | Leave a Comment

This new report is brought to you by ANGIN and CAKAP

Introduction

ANGIN is pleased to announce that we have collaborated with Cakap (Indonesian Edtech) in producing their impact report!

In the 2021 Impact Report, Indonesian edtech Cakap established several achievements in order to create easy and equitable access to quality education, in line with the UN SDG’s principles.

Cakap successfully expanded its upskilling initiatives to remote areas across the country, as well as being a government partner to improve the skills of the nation’s human resources. More than one thousand teachers have joined Cakap mitra and have provided more than one million hours of online LIVE courses. Two million more students have received the benefits of learning, both foreign languages, vocational classes and various upskilling programs.

Report Overview

As an edtech platform based in Indonesia, Cakap provides a comprehensive app experience
that brings an optimized and interactive user interface. Cakap’s classrooms from private, chat,
club and group adopts 2-way learning interaction method, as live and person to person skill
transfer process that increases student self motivation. Last year as many as 8,494 modules
were delivered to the students, with high demand vocational courses came from hospitality,
tourism, and marketing. “We understand that Indonesia has a massive potential and we will
always strive to scrape the limits to unleash the true potential of Indonesian talent as a global
citizen.” Tomy added.

Recognition

About CAKAP

Cakap is the leading upskilling platform in Indonesia that provides an online learning application to connect students with professional teachers and experts through video calls and text conversations. Our proprietary education platform enables two-way learning interactions for life skills learners across Asia Pacific. Available on Google Play and App Store to reach different segments of students, because everyone deserves a quality education. CAKAP provides educational solutions with an international standard learning curriculum to provide the best online learning experience. #CakapUntukBangsa

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ANGIN Annual Report 2021

Posted on January 3, 2022 | by Aisha Nadira | Leave a Comment

Thank You!

The year 2021 has been a challenging but rewarding year for ANGIN. A big thanks to our team who went beyond expectations to generate impact all across the country and also thanks to our treasured shareholders, advisors and clients!

With your support, we were able to do what we do now. We are delighted to share some of the 2021 highlights and tractions from ANGIN Investment and ANGIN Advisory through ANGIN Annual Report 2021.

You can find statistics on the enterprises we have screened and worked on, updates on our publications, and highlights of our events.

Report Overview

This year, ANGIN Investment met over and above 1000 entrepreneurs through meetings and events. We are also very delighted to channel investments on top of 8,5 million USD through our network.

On the other hand, ANGIN Advisory also generates impacts through delivering 20 projects with the help of more than 50 interns and consultants of ANGIN. Furthermore, over 7 countries are allying with ANGIN Advisory on entrepreneurship solutions.

We would love to thank our respective clients and partners for the support throughout 2021.

Thank you for the continued trust you have put in us. Our ongoing success relies on the loyalty and support of clients like you. We are of course, looking forward to an enjoyable collaboration with you in 2022!

Download our report to learn more about our 2021 activities.

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Indonesia Entrepreneurs Ecosystem Mapping 2021: Report by ANGIN and Blue Impacts

Posted on September 9, 2021 | by Aisha Nadira | Leave a Comment

This new report is brought to you by ANGIN and Blue Impacts, Impact X

Introduction

As the largest economy in Southeast Asia, Indonesia has charted impressive economic growth and is home to a massive population that is excited to embrace emerging technologies. With the advent of some of Indonesia’s largest tech unicorns going public, the island country is gathering significant importance and influence as a hub for startups and talents.

Over the past decade, Indonesia has seen more deals and impact capital deployed by the Development Finance Institutions (DFI) than any other country in the region. With this encouraging trend in mind, a rising number of different players in the startup ecosystem are contributing to nurturing the impact startups – startups with a social and environmental focus while generating promising financial returns.

Moving forward from the pandemic, there is an urgent need to recover our economy and learn from the exposed social and environmental vulnerabilities. The Indonesian Government, an increasing number of companies, youth-led climate actions, and young entrepreneurs, are committed to addressing the United Nations Sustainable Development Goals, to include environmental and social problems on their agenda and work towards a more resilient economy. These entities identify innovative ideas and technologies from startups and entrepreneurs to challenge the business-as-usual trajectory.

This is the emerging trend of Impact Technology, where business ideas are backed by science, technology and innovation to benefit people and the environment. Given the complexity to measure and track social and environmental impacts, we hope to introduce a new perspective and mechanism to ignite, re-align and join forces with existing efforts in the startup ecosystem to build the community that tailors to nurturing these young and mission-led innovators and entrepreneurs so that their impacts can scale and eventually lead our nations towards a sustainable era.

Report Overview

This report zooms in on some of the key players supporting the startup ecosystem in Indonesia that also contribute in paving the way for impact technology startups to grow. Highlighting the work from investors to service providers, these key players in the ecosystem are building the foundation for startups to make a positive impact through tech-enabled solutions.

This report use the term “impact” in a broader scope. Not only social enterprises deliver “impact” (i.e. achieve positive social and environmental impact through the business). “Impact” can be a vague concept and while social enterprises intentionally state that they are pursuing “impact” and have the duty to measure it. Some of these players that may be working in Impact Areas also contribute to achieving “impact” without stating it openly or with a capacity to measure it.

Recognition

About Impact X, Blue Impacts

Blue Impacts seeks to discover, support and scale impact technologies solving environmental and development related challenges. Focus areas include food systems, energy and carbon, inclusive finance, urban resilience, improved health and circular economy. Blue Impacts has offices in Singapore, Australia, and China.

A startup innovation challenge, called SHIFT!, is a discovery platform established by Blue Impacts with partners in 8 cities across the Asia Pacific. Designed to discover impact technologies at their earliest stage, Shift! takes a deeper approach to developing startup ecosystems at the local level.

The company brings innovators together with investors, buyers, and experts at the Impact X Summit, to match and help scale. In 2021 and 2022, Impact X Summits will take place in Australia, China, and the Netherlands.

Disclaimer: The report prepared by a team from ANGIN and Blue Impacts. The organisations featured in the report are based on ANGIN’s interaction and observation with Indonesia’s Startup Ecosystem. Any reproduction in full or in part must mention the title of the report and credit the above-mentioned publisher as the copyright owner.

This report aims to highlight and identify the possibility of aligning existing efforts in Indonesia’s startup ecosystem to nurture, invest, and scale startups and entrepreneurs with a focus on climate and sustainable development goals. This report is also the follow up of ANGIN’s report, the 2019 edition of ecosystem mapping report. So here is the 2021 edition of the key players who are highly contributing to the development of entrepreneurship and paving the way for impact technology to grow in Indonesia.

These are the organizations you should definitely meet if you are exploring the Indonesian impact technology startups market. We have updated our 2019 list to reflect the changes in the ecosystem as new players are coming, some organizations are not active anymore, less active or changed their focus.

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New Fund Structure in the Field

Posted on July 22, 2021 | by Aisha Nadira | Leave a Comment

This article is written based on the discussion note on Tinc Investor Networking.

Visit Tinc Investor Networking Main Page here.

The Rising of New Funds

Indonesian startup ecosystem and venture capital industry has been growing for over 10+ years. Despite the economic slowdown due to the pandemic, the Indonesian Venture Capital and Startup Association (Amvesindo) data show that US$1.9 billion in capital has been raised by 52 start-ups in Indonesia as of September 2020.

The association expects the year-end figure to reach US$2 billion, which would be lower than last year’s $2.9 billion in capital raised by 113 start-ups. At the same time, VCs’ assets rose 15.9 percent year-on-year to Rp 18.9 trillion ($1.3 billion) as of September compared to Rp 16.3 trillion over the same period in 2019, according to Financial Services Authority (OJK) data [1].

According to data from DealStreetAsia, Indonesia absorbed the biggest share of the $2.7 billion in fundraising deals booked in Southeast Asia in the second quarter of 2020 at 45.8 percent. Singapore came second with 33.2 percent of the deals, while Vietnam followed with 7.9 percent [2].

With the room for growth, the VC industry is still in its infancy stage whereas the th industry emerged around 2010. Currently there are Misalignment of incentives, and too often an intent to control the venture’s direction because of immaturity of the ecosystem across the investor spectrum. There are also less adequate models of business wherass the country’s well documented talent paucity generates too little. With that being said, venture capital structures have also grown to adapt to be able to support the needs of the market.

More foreign investors are coming to Indonesia and applying several new approaches, strategies, and structure to better support the market opportunity. Existing VC structures are not able to fill the gap existing in the ecosystem, hence new structures are needed to address the financial gaps like venture studio funds, revenue share funds, corporate venture capitals (CVCs), Angel Investment Vehicles, for example Beacon Fund, Founders First Capital Partners, Antler, and New Energy Nexus, etc.

Increasing Trends: Corporate Venture Capitals

Structures like corporate venture capital in Indonesia predominately sought funding from local investors. According to Badan Koordinasi Penanaman Modal (BKPM) or the Indonesian Investment Board data estimated foreign investments (Foreign Direct Investment) to the digital sector until January 2020 was ke sektor around $1,3-2,4 billion or about 15%-20% from total foreign direct investment that came in amounting of $9-12 billion each year [3].

With the room for growth, more CVCs are fundraising from foreign investors. State owned Bank CVCs such as MDI Ventures, Mandiri Capital Indonesia (MCI), and BRI Ventures are leading the trend. On the other hand, family backed investment arm such as Prasetia Dwidharma is focusing on deploying investments to startups with potential strategic alignment with their business, whilst also stepping in as venture partner in state owned CVCs such as MDI, where Arya Setiadharma (CEO of Prasetia Dwidharma) act as a venture partner since 2019. By accessing foreign investment and synergies with other family offices investment arm, an increase of activity of investment should follow.

In comparison, in the United States, Corporate VCs as a group were involved in 23 percent of all investment deals made in external startups in 2018 [4]. Pegasus Tech Ventures partner, Justin Patrick who participated in the discussion shared;

Although there are lots of room for corporations to jump into VC, however strategic, these corporate investors will still have different KPIs compared to independent VCs.

Justin Patrick

Pegasus Tech Ventures

New Breed of Investors Coming In

We have seen new structures of funds (not the typical LP/GP structure). We have seen CVCs and we are seeing more experienced entrepreneurs venturing to build a small fund and act as catalysts such as Init-6 Fund and Kopi Kenangan Fund. These news structures will also affect the different fees and structuring in the fund, especially when it comes to the different fees and structuring between early and growth stage funds.

Capital requirement is very different from pre series to growth stage. Justin Patrick illustrates that in Indonesia, seed round of $ 1 million size of fund can deploy to up to 20 investments. With a Series B round with the size of $ 20 million, the participating General Partner (GP) needs a fund size of $ 200 – 300 million.

However, Sagar, the ex-founding member of IWEF and the moderator of the discussion mentioned that GP also has different competencies, thus the said structure is not always what we see in Indonesia and arguably not always the most applicable structure.

Despite the structure that we know as metioned by Justin, the GP structure is not always the case. Every GP also brings different competencies.

Sagar Tandon

Moderator

Talent Investing Funds

We have also seen talent investing funds in the start up industry such as Antler, New Energy Nexus, and TMI with tinc as their accelerator counterpart under the Indonesian biggest state owned telecom company, Telkomsel. Their strategy also includes investing in promising talents however, the SVP of TMI, Andi Kristianto shares a concern around talent paucity in the market thus hindering them to deploy available capital. He stated that there’s a need of supporting and securing the sustainability of the idea seeded from incubators or accelerators.

Accelerator or incubators like Tinc can be an entry point. We see early-stage companies have great ideas and are able to position a good pricing. However, the talents has to have the agility to create more innovations in order to move to a larger stage and they should gain this support from accelerators and incubators.

Andi Kristianto

SVP Corporate Strategy and Strategic Investment, Telkomsel

Venture Studios

With that being said, the need for a venture structure that provides capacity building support and management is greatly needed. That’s why another structure that is also becoming much more popular is Venture Studios, which is a new emerging innovation in the field of venture capital. It’s a very close structure to the high-touch venture-capital model, which follows a concentrated portfolio strategy and provides beyond capital support, primarily value-added services and human capital.

The structure show promising future due to the three distinctive characteristics which make it attractive which are

Increase ownership in the venture
Increase participation in the enterprise, and hence
Increase the chances of success. The exit rate is higher in studios (~ 35%) than in accelerators (~ 20%), which seems to confirm that a venture created by a studio fails less often than any other venture. According to the GSSN, a studio startup can achieve TVPIs of 10 [5].

Aside from increasing the success rate, there is a high opportunity to increase Impact. Building tech-ventures in the impact spaces are generally ignored by tech ventures and entrepreneurs, as they are still catering to the top 1% of the population. The venture studios allow these impact driven businesses to grow. In the discussion, Sagar mentioned several types of venture studios and potential structures or model [6]

Types of Venture Studios and potential structures and models

Internal Ideas and team: The studio team comes up with an original idea to build a venture.
Model: VC Fund structure, Concentrated portfolio, and VC High-portfolio support
Investing and building with a talent/founder: Venture Studio acts like a founder or supporting-founder (Chameleon) to construct the venture from scratch.
Model: VC Fund structure, Concentrated portfolio, and VC High-portfolio support
Cross-border replication: The studio replicates ventures from one geography to another by creating a joint venture with the parent company and investors.
Model:
(i) Venture Studio creates a new entity or SPV, which splits equity with the parent company and any new investors if able to onboard.
(ii) The money from investors and IP, money, and other resources from the parent company will kick-start the operation.
(iii) From there on, Venture Studio takes the ownership of contextualizing the product, hiring & managing the talent, finding product-market-fit, GTM fit, and, most importantly, running the core business.
Corporate venture studios: Venture Studio sees itself as an extension of corporate-innovation and acts explicitly as corporate-venture-studio.
Model:
(i) Venture Studio identifies potential clients and goes with a proposition to build a venture for them, which is strategically aligned to their core business or operation.
(ii) Venture Studio expects a certain amount of capital infusion initially, for which the corporates enjoy a healthy equity percentage. The venture will be built from scratch by Venture Studio.

Looking to the Future

The venture capital industry in Indonesia is still evolving and growing. We have seen positive movements and an increase of interest from foreign and domestic investors, as well as increasing capital commitment to Indonesia startup ecosystem.

New generations of investors are taking up the space led by investors with different backgrounds, bringing in new fund approaches, structures, and models. We see CVC, entrepreneurs backed funds, and venture studios models emerging in Indonesia with a promising foundation.

We see this as a positive trend of diversifying support systems for entrepreneurs to grow. With these new structures, it will eventually provide more entrepreneurs access to capital beyond just financial capital but also intellectual and social capital. We are confident to see more financial instruments in the future beyond equity investments, such as venture debts or syndication, to be able to have more flexibility in deploying capital.

End of article.

Participating investors in the discussion:

James Prananto
Co-Founder & CBD
Kopi Kenangan & Kenangan Fund

John Lotto
Investment Manager
C4D Partners

Justin Patrick
Venture Partner
Pegasus Tech Ventures

Maria Natashia
Investment Manager
PT Prasetia Dwidharma

Yudi Tandi Anugrah
Investment Manager
Kejora-SBI Orbit

Andi Kristianto
SVP Corporate Strategy and Strategic Investment, Telkomsel

This article is brought to you by:

Writer

Moderator

Aisha Nadira
Partnership Engagement Lead, ANGIN

Sagar Tandon
Industry Expert

Investing in Impact: Opportunities, Implementation, and Measurement

Posted on July 22, 2021 | by Aisha Nadira | Leave a Comment

This article is written based on the discussion note on Tinc Investor Networking.

Visit Tinc Investor Networking Main Page here.

Demystifying impact investing myths around low financial return: The future of impact investing and the opportunities

The terms impact investment and social entrepreneurship were coined to define organizations that could reconcile the desire to create an impact while also having a commercial or financial intention. Beyond the intention, these organizations commit to measuring, evaluating, and reporting their impact to drive better decisions and strategies to achieve their social mission. This impact investment generation emerged in Indonesia in the early 2010′s [1]. Since its emergence, there was an underlying perception that impact investing was similar to philanthropy whereas impact investors yield lower financial return compared to commercial investors.

However, most studies report that Socially Responsible Investments (SRI) do not have lower returns than traditional investments. In fact, there is evidence of the opposite; most conclusions point to SRI having higher returns, especially when social impact is taken into account. A comprehensive review by the Royal Bank of Canada looked into over 40 major studies and found that there was no evidence that socially responsible investing resulted in lower investment returns [2]. This sentiment was echoed by the GIIN’s (Global Impact Investing Network) 2017 Annual Impact Investor Survey [3], which found that the majority of respondents achieved market-rate returns, with 91% claiming their returns met or exceeded their professional expectations.

A survey by Morgan Stanely released in 2018 [4] mentioned that 76% investors believe that a perception remains among some investors that sustainable investing requires a financial tradeoff, However, they claim the opposite, where 87% of respondents believe it is possible to achieve financial returns alongside a social or environmental impact. And 62% go even further, agreeing that it is possible to maximize returns while investing sustainably.

This perception was echoed by investors that participated in the Tinc Investor Networking Day:

Profit and purpose are not separate but complementary. Although we do not identify ourselves as an impact investor, Investible is exploring the idea of implementing a sustainability lens for our forthcoming fund.

Reena Sharma

Investible

Reena Sharma, Vice President of Investor Relations at Investible shared that Investible’s investment decisions are made based on financial performance for the company, while impact is used as an additional filter after an investment passes the desired financial profile.

Beenext’s Partner, Faiz Rahman also added that there is an opportunity to maximise profit while implementing an impact lens.

Beenext believes that scale has to come first and a good business is a business that directly tackles real problems in the society, thus creating impact. If the market is big enough for the business to scale and gain financial return, that means the impact created is also bigger.

Faiz Rahman

Beenext

Rexi Chritopher from init-6 fund shares the same value that Impact investing is a mindset: any startup that is challenging the status quo is working on creating impact.

Nowadays, most people are more aware of impact, for example with SDGs. In an optimistic lens, this is a great momentum for impact investors, especially because the new generation of founder is more aware of the importance of impact, hence apply it into their business.

Rexi Christopher

Init-6

Emphasizing on the context of “invest” in impact investment, it is necessary to distinguish impact investment from non-profit practices, such as donations or grants. The investor attendees on Tinc Investor Networking agree that financial returns and performance are still key considerations behind impact investment decisions. This means that there is a fundamental distinction between for-profit, non profit, and for-profit with social mission, in which impact investment falls for the latter.

Measurement of Impact and ESG

Impact investments, as defined by GIIN’s (Global Impact Investing Network), are “investments made with the intention to generate positive, measurable social and environmental impact, alongside a financial return” [5]. The word ‘measure’ plays an interesting role in this ecosystem. As an investment is repayable finance, investors will want to see the evidence of financial return and revenue from the business.

Yet in impact investment, the responsibility doubles up; both social and financial return are to be expected. This is what differentiates impact investors from mainstream investors or traditional funds. Impact investors want to know how investing into a business will enable them to create a positive impact on society, and in order to know, one has to measure.

"Impact investors share several core characteristics, including the use of evidence and impact data in investment design, the commitment to measure and manage impact, and the intention to pursue impact alongside a financial return."

GIIN, State of Impact Measurement and Management Practice (2020)

Measuring impact is indeed a complicated process, especially for early-stage business or startups. However, Kejora-SBI Orbit stated the importance of having at least one dedicated ESG officer that can measure impact within the scope of Environment, Social, and Governance (ESG). This statement is echoed in The S&P 500 ESG Index: Defining the Sustainable Core [6] as a signal of evolution in sustainable investing, built to underlie strategic, long-term mainstream investment products.

As Kejora looks into this index, they found out: impact investment actually follows where the money is.

Having a good impact is actually a good business. Meaning, companies that are more ESG compliant tend not to cut corners and therefore in the long run have possibilities to perform better. These companies are also more socially responsible and well-managed; these are the companies that investors want to invest in.

Kejora-SBI Orbit

Representative

ESG is an increasingly popular tool of measurement when it comes to sustainability efforts, and also to giving companies a space for improvement. Yet in practice, no matter how sophisticated the tool is, measurement is much easier at capturing quantifiable inputs, than complex and intangible outcomes, such as impacts [7]. For this reason, Kejora believes that in order to comprehend the outcomes and impacts, investors also need to go the extra mile to fully grasp the internal process. This starts with the due diligence process, and continues by using a method and metrics to measure impact within the portfolio, because it is necessary to capture the input-outcome-impacts, without assuming causality.

Since there are no uniformly accepted metrics, Beenext also sees that measuring impact requires doing more than just ESG measurement. In particular, Beenext emphasizes that impact investors have to be able to have skin in the game, put themselves on the field, and improvise with more grassroots practices.

We have to talk to startups directly and try to understand their business, mission, values, drive, and goals. Impact investors need to understand where the business is coming from and the core problem that they are trying to solve or disrupt.

Faiz Rahman

Beenext

Demands for ways to measure impact continue to grow and mature alongside the impact investing industry. According to the GIIN report on Impact Measurement and Management Practice (2020), over the past 2 years, the impact investment industry has greatly expanded its suite of approaches to measure impact; from data collection, aggregation, comparison, impact valuation, and benchmarking of impact results. Besides ESG, many tools and frameworks have been developed to help impact investors measure their impact, as seen on the figure below:

Most investors can use more than one framework, the common average is three. This development represents significant steps toward enabling investors to transparently and reliably measure and manage their impact [8].

Role of incubator and accelerators in the investing in impact scene

As one of the first “open door,” incubators and accelerators plays a critical role in developing a startup founder’s mentality regarding impact and business. As stated by Jockie Heruseon, VP Business Development of Telkomsel, incubators and accelerators also have the power as a gatekeeper; to set impact and social contribution as standard in the business ecosystem.

Accelerators and incubators have an important role to provide support, especially for very early stage (often pre-revenue) startups. Heruseon from Telkomsel shared his insight from years of experiences in the startup ecosystem;

Many startups from the early stage have trouble increasing the size of their operations to expand their impact. As they attempt to scale, they often struggle to reach more customers, attract talented human capital, and lock the right types of funding. At the same time, impact investors are interested in supporting these startups, but often have trouble finding investment-ready impact startups.

Jockie Heruseon

VP Business Development of Telkomsel

Telkomsel, the parent company of TINC has taken up the space on supporting the startups and companies to integrate in impact by creating NextDev platform. NextDev is an early stage digital startup search and development platform in Indonesia that is oriented towards social impact. The program ranges from competitions to incubator programs like the NextDev Academy as well as the NextDev Summit.

Through similar programs, that are also encouraged by Tinc, founders can be introduced to open their mindset and integrate impact and sustainability lens as well as understand the benefit and importance of good governance that is advocated by the ESG. This will also allow startups to identify like minded investors to actually support and amplify their impact.

Resonated by The Rockefeller Foundation’s report on Impact Enterprise Acceleration, this is where accelerators and incubators like TINC are able to contribute as sort of a “matchmaker,” ensuring downstream impact VCs funds or other investors have access to a good deal-flow of investment-ready opportunities [9].

Looking to the Future

The impact business and impact investment extended its wings to emerge as a new conception of “Investing in impact,” where this impact becomes an arbitrage, an opportunity, a “new normal”– the smart investment to do on top of the right business and investment strategy [10].

Each player in the startup ecosystem has its own role, and therefore its own power. Investors provide the capital and the fuel, while incubators and accelerators play key roles in educating and building the mentality of the founders. All roles are equally crucial in the development of the whole impact ecosystem.

In the future, we hope to see more incubators and accelerators occupying the impact space to create a supportive environment for impact driven startups and impact investment practice can grow.

We see that with the current trend, we will see a shift of mindset where impact is no longer a type of investment; but impact is investment.

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About Hacktiv8

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About BINAR

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ANGIN 2022 in a Glimpse!

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About Impact X, Blue Impacts

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The Rising of New Funds

Increasing Trends: Corporate Venture Capitals

New Breed of Investors Coming In

Talent Investing Funds

Venture Studios

Types of Venture Studios and potential structures and models

Looking to the Future

Participating investors in the discussion:

James Prananto Co-Founder & CBD Kopi Kenangan & Kenangan Fund

John Lotto Investment Manager C4D Partners

Justin Patrick Venture Partner Pegasus Tech Ventures

Maria Natashia Investment Manager PT Prasetia Dwidharma

Yudi Tandi Anugrah Investment Manager Kejora-SBI Orbit

Andi Kristianto SVP Corporate Strategy and Strategic Investment, Telkomsel

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Moderator

Aisha NadiraPartnership Engagement Lead, ANGIN

Sagar TandonIndustry Expert

Demystifying impact investing myths around low financial return: The future of impact investing and the opportunities

Measurement of Impact and ESG

Role of incubator and accelerators in the investing in impact scene

Looking to the Future

Participating investors in the discussion:

Reena Sharma VP Investor Relations Investible

Faiz Rahman Partner Beenext

Rexi Christopher Investment Associate Init-6

Jockie HeruseonVice PresidentBusiness Development

Kejora-SBI Orbitby Kejora Capital & SBI Holdings

This article is brought to you by:

Writer

Writer

Moderator

Aisha NadiraPartnership Engagement Lead, ANGIN

Yohana ParidaPartnership Engagement Associate, ANGIN

Akhil AdlerEx-Investment AnalystTeja Ventures

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James Prananto
Co-Founder & CBD
Kopi Kenangan & Kenangan Fund

John Lotto
Investment Manager
C4D Partners

Justin Patrick
Venture Partner
Pegasus Tech Ventures

Maria Natashia
Investment Manager
PT Prasetia Dwidharma

Yudi Tandi Anugrah
Investment Manager
Kejora-SBI Orbit

Andi Kristianto
SVP Corporate Strategy and Strategic Investment, Telkomsel

Aisha Nadira
Partnership Engagement Lead, ANGIN

Sagar Tandon
Industry Expert

Reena Sharma
VP Investor Relations
Investible

Faiz Rahman
Partner
Beenext

Rexi Christopher Investment Associate
Init-6

Jockie Heruseon
Vice President
Business Development

Kejora-SBI Orbit
by Kejora Capital & SBI Holdings

Aisha Nadira
Partnership Engagement Lead, ANGIN

Yohana Parida
Partnership Engagement Associate, ANGIN

Akhil Adler
Ex-Investment Analyst
Teja Ventures