Three Key Factors Acquisitions and Investments

One of the problems most often talked about by the digital business startup is a matter of acquisition. A startup that acquired at least have proven quality because investors believed. Anything that makes a decent startup being acquired? The question then is, whether that pioneered digital business must be willing to be acquired? Then, what are the benefits if it was acquired? Was still able to run the initial vision of the mission when the business has been acquired?

# Startuplokal Meetup v.9 which took place on Thursday (01/06/2011) night in Blacksteer fX Entertainment Center discuss the acquisition. Carrying the theme "Acquitition, Take It or Leave It", the meeting was attended by several speakers namely Satya Witoelar, frontman somersault which now acquired Yahoo, Antonny Liem, COO of Red PT Cipta Media, and Weather Willson, CEO and Managing Partner Apps Foundry in East Ventures.

Willson Weather outlines some of the things seen investors when they want to acquire a digital business. Those things are useless for the startup that wants to grow the business with a glance at the possibility of acquisitions or pursue outside investment.

"Three important things that we usually see before acquiring a business is a people who manage them, the resulting product, and market potential that can be targeted," said Willson. The resulting product should be used according to many people that large market potential.

Willson whose company has invested in Tokopedia.com and Urbanesia.com added, "Now that must be prepared is, whether the product you are wearing it. Then its user target how, there is no feedback from the user. Then after that, how the business development plan . "

According to him, the owner of startup should focus on the product and do not be lulled to focus on ways to make money or to monetize their products. For, once the focus to look for money, product development can stagnate and competition opportunities to pursue.

He said investors often do not immediately see whether in quick time diakuisi company that will immediately make money. For example, Tokopedia. Since being acquired to date, Tokopedia not generate revenue or profit a penny.

However, the potential market that successfully worked to increase rapidly. Before being acquired, the story Willson, Tokopedia only have less than 10,000 members. Once acquired, in a few months, users rose to about 70,000 people and an attractive purchase and sale transactions in Tokopedia increased from approximately USD 300 million to Rp 2.5 billion per month.

This is an attractive market for potential investors. Just imagine, 70,000 people generating 2.5 billion transactions. Meanwhile, Indonesia's current Internet users have reached 45 million people into a potential market that is still very large. Although revenue is still zero, large market potential makes giler investors and will become the focus was now reaching the market.

As the mating

But, not all successful startup investors let alone get ogled acquisition bid. According, Antonny who also became Managing Director Klix Digital, the approach between the startup with investors as well as couples getting married.

"The acquisitions and investments is like marriage. So, we should also see the character of business actors. The concept of business, the resulting product and the market prospects are important, but baseball people are also less important," he said.

It is also said to be a shared experience Satya Witoelar somersault acquisition by Yahoo. Similar people want to marry, the parties would be acquired should be able to see in advance what will be targeted by the acquirer. After that, need to see the possible development of business after being acquired as well as numerous other benefits.

Satya said, before the somersault was acquired by Yahoo, there are various considerations in view. Example of employees, how their positions after being acquired. Matters relating to the welfare of employees and facilities that support the work of employees is also a factor that must be seen. The point is how the fate of somersault after being acquired.

"We will acquire Yahoo! Koprol they want to develop suitable products for emerging markets. But not only the products they want. Yahoo also wanted to test the ability of resources in Indonesia," says Satya. Considerations that make somersault feeling fit and willing to be acquired.

He looked at the process of acquiring necessary. Because, no doubt, digital business startup capital requires considerable support and resources to continue to run. "Just before being acquired, we beggar's really time," says Satya. Unfortunately, Satya did not deign to give a nominal acquisition that might be considered for other start-ups.

But according to him, before the acquisition process, businesses can not just look at the issue of money being offered. Another thing to look at is the extent to which vision business mission in the beginning can be supported. "In the process of acquisition plans and we ask our products are supported. What we want should be realized after the acquisition process," he explained.

Although later felt that he became such an employee now, Satya was by far what is given Yahoo! accordance with what is expected. He admitted that his job at Koprol now feels lighter even on vacation, but he had a greater chance to develop new ideas in the global organization. This is arguably a bonus or a dream that may be perceived as the originator of this somersault because it can learn from a great company.

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