Crowdfunding for Digital Creative Industry

Ir. Lolly Amalia Abdullah, M.Sc Director for Cooperation and Facilitation

Directorate General for Creative Economy Based on Media, Design and Technology Ministry of Tourism and Creative Economy

Outline

Indonesia’s Opportunities in Digital Era

Digital Creativepreneur Characteristics

Crowdfunding Examples in Indonesia (esp. digital creative)

Indonesia’s Opportunities in Digital Era

Indonesia’s Opportunities in Digital Era

Demography Mobile User & Internet

Penetration

Massive Digital

Contents Needed

Potential of Demographic Indonesia

Age

People

Demographic Indonesia: From approximately 240 million people in Indonesia, more than 60% of the population under 39 years old which are potential and productive human resources to create innovation and creativity.

Male Female

http://redwing-asia.com/market-data/market-data-telecoms/

Potential of Indonesia’s Mobile User

What Happens in One Minute on the Internet?

Source: Shanghai Web Designer http://www.syncreload.com/2011/09/what-happens-in-1-minute-on-internet.html

297million Indonesia’s User Mobile in

2013 source: Redwing Asia

74.6million Indonesia’s Internet User

Source: Marketeers Magazine Research in 2013

4 Social Network Rank for Indonesia

Digital Era Challenges

FUNDAMENTAL SHIFTING

Network infrastructures: Supporting facilities, network devices, cables, Operating System, interfaces.

Network application: VPN-ing or clouding or virtualization

Network & Services management

Telepon set

PC laptop

User’s LAN

TV set

User’s terminal

User’s Server

Network Centric

Content & Application Servers

Telco app

ITE app

internet content

broadcast app

Content & Application developer/producer

Game Server

Client-Server Centric

Shifting from: • Telephone to internet • Revenue from Network to

revenue from Client (CPE) and/or from Server-side (content & applications).

• TECHNOLOGY • BUSINESS MODEL • REVENUE SOURCE

Shifting…!!

Local developers >> Local content with uniqueness >> Unique & Competitive

Content, specific based on customer needs

Apps Challenges

Education

Game

Animation

Health Tourism

Transportation

Social Media

Messaging

Service Apps

Banking

Etc…

Digital Creativepreneur Characteristics

Digital Creativepreneur Characteristics

Start Up

Growing

Mature

• Fresh graduate

• Business Experience 0-1 year

• Business Experience 1-3 year

• Owning work warrant

• Owning Limited liability company/ PT

•Business Experience more than 3 years

•Owning work warrant

•Owning Limited liability company/ PT

•Omzet more than Rp 1 Billion/year

• High added value of products and services.

• SME’s scale

• Having knowledges and experiences for doing business

• Have been establish and need added fund to expand the business

• Lack of owning collateral

• Able to access funds from the Bank

• High added value of products and services.

•SME’s scale

• Lack of knowledge and experience for doing business

• Limited seed capital and lack of owning collateral

•High Risk (especially for start ups)

•Need funding access solution

HIGH RISK > The only

sources are ideas and

creativities

Digital Creative

Product is intangible

Limited Funding Access to the Bank due to

Collateral Issue

Digital Creative Product is very Progressive >

Time To Market is an issue

Intellectual Property (IP) as

Fundamental Assets to Digital

Creative Companies

Digital Creativepreneur Characteristics

How is the solution?

By accessing the funds through non bank institutions: Bootstrapping, Friends&Family, Angel Investors, Venture Capitals, Cooperative, Crowdfunding, LPDB, etc

Solution?

Crowdfunding Examples for Creative Sector

Crowdfunding Example in Indonesia

http://wujudkan.com

Indonesian Creative Digitalpreneur who utilize International Crowdfunding

From target $25,000 USD

Indonesian Creative Digitalpreneur who utilize International Crowdfunding

From target $30,000 USD

Crowdfunding is one of the solution to help the digital creativepreneurs

to realize their Intellectual Property