ADVANCED-STAGE STARTUP FUNDING IN INDONESIA: COMPARISON THE EFFECT OF HUMAN CAPITAL, SOCIAL CAPITAL, AND INTELLECTUAL PROPERTY RIGHTS

• Main Author: Hans, Benedictus
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/80035
• Institution: Institut Teknologi Bandung

Startups play an important role in economic growth and as job opportunities in every country. Funding is one of the most important factors influencing startup development and innovation. However, while researchers focus on funding earlystage startups, advanced-stage startups receive less attention, even though they also need funding to continue to innovate and grow. Apart from that, there is still very limited research that specifically discusses important factors that influence startup funding that can be used as empirical evidence in Indonesia. In this research, we use a quantitative approach by proposing a multiple linear regression model to test several factors which according to previous research have a significant impact on early-stage startup funding, including human capital, social capital, intellectual property rights and several additional factors such as startup age, the location of the startup, the business sector and the gender of the startup founder. After that we collected data through a startup information database; there are Tracxn and Crunchbase; and check the completeness of the data. After the data was collected, we processed the data and carried out several necessary tests to ensure the accuracy and suitability of the data obtained and the proposed model using IBM SPSS Statistics 25 software. From this research, we found that not all factors that influence early-stage startup funding have an significant impact for funding advanced-stage startups. We found that startup age is the most influential factor in startup funding, followed by the number of followers on social media and the number of investors who invest in the startup. Apart from that, we also consider several factors, such as the average experience of startup inventors and the consumer business sector, to play a role in supporting some of the main factors that influence startup funding. Finally, we also find that ownership of intellectual property rights as well as the financial business sector can act as a substitute for one of the main factors.