Jakarta, CNBC Indonesia – Tech Winter has occurred since last year in almost all countries in the world, including Indonesia. Tech Winter is a term that describes the bad conditions of digital startups or startups.
One of them is marked by the number of layoffs and startups closing. But what happens if Tech Winter doesn’t happen?
Executive Director Investment Vertex Ventures Southeast Asia and India, Joshua Agusta, explained that if Tech Winter did not happen, there would still be a ‘correction’ in several startups. However, the scale will be smaller.
“If this doesn’t happen, some of them still have a lot of money. They are still trying to position their business on certain things. However, I am sure there will be a small correction in those sectors,” said Joshua in Fundraising During Tech Winter, Tech in Asia ConferenceWednesday (18/10/2023).
He explained that many startups had succeeded in raising a lot of money in the 2020-2022 period. At that time, most investments occurred in many startups.
The trigger was the Covid-19 pandemic that occurred and changed people’s views on daily life. It is estimated that remote work will become a new thing. Changes will also occur in other sectors such as education and purchasing goods.
“Mobile work is the new thing, education will change, shopping behavior changes and things like that. And investors may invest at that time,” he explained.
However, it turns out the market is not changing that fast. The use of technology did not last long and simultaneously people’s behavior returned to the way it was before the Covid-19 pandemic occurred.
In Indonesia, he explained that people are starting to return to offline activities. For example, working from the office, shopping in person, or going out with friends.
“So there is a mismatch with expectations,” said Joshua.
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Originally posted 2023-10-18 09:00:00.