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Sinar Mas Land launches investment arm to fund start-ups powering smart cities
Sinar Mas Land has launched an investment arm focusing on funding tech start-ups called Living Lab Ventures.
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A concept of a future smart city integrated with technologies from Living Lab Ventures, a newly established investment arm of Sinar Mas Land. (Sinar Mas Land/-)
S
inar Mas Land Ltd. has launched an investment arm focusing on funding tech start-ups called Living Lab Ventures despite global layoffs and a slowdown in the digital sector.
The company said advancing the digital ecosystem had become its focus, especially in adding digital aspects to township development.
“To create a holistic smart city, we have to provide the people with smart facilities. For that reason, Sinar Mas Land is committed to developing Living Lab Ventures, which will fund digital start-ups related to people’s digital lifestyles. We want to develop agile and smart living in the Sinar Mas Land ecosystem,” said Michael Widjaja, Sinar Mas Group CEO, in a press statement, announcing the new investment firm.
However, due to the recent setbacks within the start-up habitat, questions have arisen as to whether pouring major investment into the tech sector is wise.
Eddi Danusaputro, the president of the Indonesian Venture Capital and Start-up Association (Amvesindo) and ex-CEO of Mandiri Capital, said the current slowdown in the start-up sector was part of the "maturing process" since the industry is relatively young in Indonesia. “It’s fine to launch [another venture capital] now as long as they have enough funds and patience for the investment,” said Eddi.
“There’s a focus shift. Everyone may have focused on valuation at the beginning of all this, but now the path to profitability is weighed in much more. […] Besides, the current correction is also caused by the global situation,” said Eddi, emphasizing how the growth paradigm in start-up funding should not be ruled out.
Read also: Global layoff storm disrupts Indonesia's tech companies
