Determinants of venture capital performance in Indonesia

The growth of venture capital in Indonesia from year to year is smaller compared to other industries, both financial institutions and non-bank financial industry. Due to these weak performances, there is an urgency for venture capitals in Indonesia to improve their performances. For this purpose, we need to identify factors influencing venture capital performance in Indonesia as well as to determine their weighting scheme. The research was conducted to fill the gap. In this research, we combined qualitative and quantitative method through an in-depth interview and analytical hierarchy process method. We found that reputation was considered as the most important factor that contributes 37.4% to the overall score. Network broadness ranked second with weigh 13.7%, followed by syndication, macroeconomic condition, exit plan strategy, staging strategy, diversification strategy and funding scheme, respectively.