VALUATION OF CROWDSOURCED SECURITY STARTUP IN SEED STAGE CASE STUDY: KUBU.IN

• Main Author: Eka Destiyana, Anisa
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/38824
• Institution: Institut Teknologi Bandung

The presence of the digital era in various levels creates global trend and changed in customer behavior. The government has intention to make Indonesia as the one of the largest digital industry powers with the vision as The Digital Energy of Asia in 2020 since there is opportunity for reaching $100 billion of digital economy market size in 2025. This phenomenon is also associated with the digital disruption that usually it is brought by the startup that typically consists of creative entrepreneurs who love to use their agility to spot market opportunity and pursue it. However, the Mapping Survey and Database Collection of Indonesia startup in 2018 that conducted by Indonesian Creative Economy Agency (BEKRAF) found that the problems faced by startups still largely focus on capital issues. In order to solve this issue, Indonesian Creative Economy Agency (BEKRAF) collaborated with PT. Telecommunication, Indonesia Tbk (Telkom to establish an Indigo Creative Nation (Indigo) in 2009 as the center of growing startup seeds. Every startup which joins Indigo will undergo the incubation period of 7 months and get facilities such as business and technical assistance from Telkom. Kubu.in is the startup founded in 2018 under supervision of Indigo who provides the first platform in Indonesia that adopts bug bounty program to collect and validate reports from hackers or bug hunter regarding the vulnerabilities of security threats. In executing their business, Kubu. in a startup requires funding in order to be succeeded in operating the business, especially to accomplish its vision to become an integrated reference on Cyber Security and Information in Indonesia. However, the funding only can be derived if the key metrics that refer to the performance indicator parameter of each stage are fulfilled which also associated with the higher value of startup. Therefore, the valuation is required for both Kubu.in startup to get a fund and Telkom to assess how much the current business worth as well as getting insight of where has been the business run. The purposes of this research are to find the appropriate startup valuation method and estimating the enterprise value of Kubu. in startup. There are several recommended startup valuation methods that will be applied in this research, namely Berkus, Risk Factor Summation, and Scorecard. Berkus Method determines the value based on an assessment of the startup progress toward 5 key factors that potentially to reduce risk of success which result the value of Rp 3,786,057,692. The Risk Factor Summation Method determines the value based on assessment startup toward the 12 standard risk which result the value of Rp 8,094,951,924. The Scorecard Method determines the value through benchmarking toward the established average pre-money valuation of companies given by same industry which results Rp 9,375,000,000. However, all the valuation methods show that Kubu.in has the similar leading factors, namely, product aspect, competition, and strategic relationship that gives positive values which Berkus method is more preferable for investors since the conservative estimation while the method of scorecard and risk factor summation is more preferable for startups because of the more maximum value that can be generated.