New VC fund targets Indonesia with up to US$8M in new investment

CyberAgent Ventures plans to invest up to US$8M in six to eight Indonesia-based companies in 2012, reported e27.

Following the launch of their office in Indonesia last year, they kickstarted their new fund, CyberAgent Asia Internet Fund I. The fund capital will be increased, possibly up to US$15M, which will be proportionately split between Indonesia and Vietnam.

Should CyberAgent Ventures fail to find adequate startups to invest in, they will instead set up an incubation office.

Previously, they had set up two offices in Vietnam in 2009, investing in a total of seven Internet service companies.

These moves highlight CyberAgent’s recent focus on Southeast Asia. They already have offices in Tokyo, Beijing, Shanghai, Shenzhen, and Taipei.

On the challenges of starting a VC fund in Indonesia,  Tahahiro Suzuki, general manager of the Jakarta office, told e27: “We think that they don’t have adequate number of companies to be the role model and sharing their success stories.”

The article also pointed out that technopreneurs there tend to focus too much on their product and ignore other aspects of their business. Failing to create a solid business plan, underestimating the market, lack of innovation and differentiation are other weaknesses.

Which is why they are holding Net-Impact, a conference that updates attendees on the latest internet trends and provides networking opportunities. Net-Impact has already been held in Vietnam, Japan, China, and Taiwan.

CyberAgent Ventures is a subsidiary of CyberAgent, a leading Internet group in Japan.