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Number of active VC firms decreases but assets rising
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Illustration of venture capital funding (Shutterstock/Panchenko Vladimir)
T
he Association of Indonesian Venture Capital and Start-ups (Amvesindo) revealed on Monday that the number of active venture capital (VC) firms is decreasing but the combined assets they manage have been consistently rising up to the end of 2022 to Rp 25 trillion (US$1.6 billion).
This figure marks a 5 percent quarter-to-quarter increase from Rp 23.73 trillion in last year’s third quarter and a steady rally since 2020, according to a press statement released by the association on Monday.
The “VC industry is getting better, one indication being growth of total assets in 2022,” said Amvesindo chairman Eddi Danusaputro in the press statement.
Total assets under management (AUM) were boosted by current assets, which was mainly driven by the 56.4 percent growth of equity participation (EP) from 2020 to 2022.
Following that, participation through the purchase of convertible bonds contributed 8.12 percent, and productive business financing added another 7.05 percent to overall growth.
The latter financing type, according to the release, was preferred in particular by VC firms outside Jakarta.
Despite the growth in assets, there were fewer VC firms in 2022. Amvesindo attributed that apparent contradiction to reforms carried out by the Financial Services Authority (OJK), the governing body that oversees the financial services sector.
