East Ventures Identifies Key Startup Characteristics for Investment

Three Pillars of Investment Decision

East Ventures, a prominent venture capital firm, has outlined three critical characteristics that make startups attractive for investment. Managing Partner Roderick Purwana emphasized that their investment philosophy centers on people and potential market for early-stage startups. The three key founder characteristics they look for are integrity, self-awareness, and paradoxical traits. These qualities indicate a founder's ability to maintain focus on core strengths and goals.

Investment Focus and Strategy

For growth-stage funding, East Ventures shifts focus to traction alongside strong founders. They seek companies with the potential to become category leaders. The firm maintains a sector-agnostic approach while showing particular interest in AI-first solutions, health technology, climate technology, and consumer technology for 2025-2026.

Market Outlook and Challenges

Purwana noted that the current venture capital landscape has changed significantly compared to its peak during the digital economy boom. The market has been in a downturn for about 24-30 months, but this has made investors more rational. Fundamentals, clear business models, and proper governance have become essential. While acknowledging potential challenges, East Ventures remains cautiously optimistic about Indonesia's prospects due to its strong domestic demand, increasing digital adoption, and numerous real-world problems solvable by technology.

Future Prospects

The firm emphasizes that while opportunities exist, the market now demands credible unit economics, real governance, and solid execution from startups. This cautious optimism is based on Indonesia's structural strengths and the growing need for technological solutions to real-world problems.