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Indonesia's Startup Ecosystem in 2025: Cooling Investment Climate, VC Focus on Profitability

Fundraising is tougher, but top VCs are still backing promising Indonesian startups. The focus is on profitability, not just growth.

In this image I can see a building where best buy is written on it. I can also see number of trees...
In this image I can see a building where best buy is written on it. I can also see number of trees outside of it. Here I can see the door.

Indonesia's Startup Ecosystem in 2025: Cooling Investment Climate, VC Focus on Profitability

Indonesia's startup ecosystem in 2025 faces a cooling investment climate, with a 43.5% year-over-year decline in disclosed funding. Despite this, top venture capital firms continue to back promising startups, focusing on operational discipline and profitability.

The top 10 VC firms for Indonesian startups include East Ventures, Antler, BEENEXT, Insignia Ventures Partners, Telkomsel Ventures, Venturra Capital, Alpha JWC Ventures, Intudo Ventures, Go-Ventures, and Monk’s Hill Ventures. These firms are known for their strong portfolios and focus on sectors like fintech, edtech, and healthtech.

Fundraising timelines have lengthened, and valuations have cooled. Startups are trimming burn rates, delaying hires, or pivoting to capital-efficient models. This shift reflects investors' growing selectivity, with a focus on stronger operational discipline and clearer paths to profitability.

The collapse of eFishery, an agritech unicorn, has led to investor skepticism around due diligence and transparency, particularly for high-growth startups in less-regulated verticals.

Despite the challenging funding environment, leading VC firms continue to support Indonesian startups, backing founders with ambitious, disruptive business models. As investors become more selective, startups must demonstrate operational discipline and clear paths to profitability to secure funding.

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