Takahiro Suzuki, General Manager of CyberAgent Ventures Jakarta office
Most venture capital firms would usually establish a Southeast Asia (SEA) fund in Singapore because of its stability and strong governmental support. But not CyberAgent Ventures, who last week announced its Jakarta office which oversees investment in Indonesia and the region.
Its Jakarta base is the newest addition of its range of offices across Asia, which includes Tokyo, Beijing, Shanghai, Shenzhen, Taipei, Ho Chi Minh, and Hanoi. Both Singapore and Hong Kong aren’t within CyberAgent Ventures’ plans, yet.
It’s an interesting move and it is fair to assume that CyberAgent Ventures is moving to places where there is a sizable market for startups to grow.
But why Indonesia?
Takahiro Suzuki, general manager of CyberAgent Ventures Jakarta office, feels that Indonesia has a digital market with high potential. Its population size, internet penetration growth rate, mobile centric user behavior, and the popularity of Facebook and Twitter – all these points convinced CyberAgent Ventures to set up a base in Indonesia.
I believe that there is a significant growth potential for South East Asia, thus I have decided to initiate investment activities in Indonesia.
Suzuki is also quick to get work started. I learned that he is already in talks with “many local startups to explore opportunities.”
What specifically is on Suzuki’s radar? Well, e-commerce or online gaming might work as he described these industries as “sure to grow in each country.”
Although Indonesia is a huge market, Suzuki understands that it is a few years behind US, Japan, and China. It is also in CyberAgent Ventures Jakarta’s interests to nurture Indonesian startups community for future growth. How so? Suzuki explained to us, below:
In order to stimulate market growth, we will contribute by providing our know-how from successful CyberAgent businesses to fully support local startups… To start, in early March (2012), we are planning to arrange a conference focusing specially on the entrepreneurs’ needs by inviting successful entrepreneurs from Japan, China, and Vietnam to share their experiences…
And money?
Of course, venture capital gets its earnings when its investment exits. However, first we need to make the internet market bigger.
I’m sure our Indonesian friends would appreciate their efforts. And wouldn’t it be nice if all VCs can think alike? — Building the market first, investment later.
Other Japanese investors who are targeting the Indonesian market include GREE Ventures, Batavia Incubator, and our own investor East Ventures.