3 Level of Startup, What’s The Highest Level in Indonesia?

3 Level of Startup, What’s the Highest level in Indonesia?

The more startups that have emerged, the busier they are competing to develop their businesses. Improve your strategy and performance. Many small startups have grown into large, successful corporations. Some tiers in the startup world indicate the size of a company. These levels of startup are differentiated by the amount of value they achieve. Market share and total transactions served are factors that influence startup valuation.

StartUp Levels (Image by rawpixel.com on Freepik)

1. Level of Startup : Unicorn

The first level. What is a Unicorn Startup? The term “unicorn” was first coined in 2013 by Aileen Lee, the founder of Cowboy Ventures, a US-based seed-stage venture capital firm. In a TechCrunch article Welcome to The Unicorn Club: Learning from Billion-Dollar Startups (2013), she named a startup company valued at US $1 Billion or more as a unicorn. Greek mythological animals inspire this term. A unicorn is a horse-like creature with horns on its head, a rare animal. That is why the unicorn is taken as this term. This is because startups with a $1 billion valuation are difficult, rare, and even impossible. Especially if the one who gets it is a start-up company or startup. Owning a company as a unicorn is an outstanding achievement in the business world. There are a few characteristics that unicorn startups have in common, 

  • Disruptive and Innovative
  • Tech-Driven
  • Consumer Focused
  • Privately-held

Surprisingly there are several unicorn startups in Indonesia. Based on DailySocial’s data that was released in early 2022, the number of Indonesian unicorn companies currently reaches 12. Among them are Kopi Kenangan, Traveloka, Bukalapak, Kredivo, and Blibli. 

2. Level of Startup : Decacorn

A decacorn startup is a privately-owned company with a more than $10 billion valuation. A startup company with a valuation of more than $10 billion is called a Decacorn. The development of startups that dominate the digital world has given birth to many new Decacorns.

According to CBInsights (2021), there are currently 18 Decacorns in the world, with 10 being from the USA. But now, rapidly, that number continues to grow until this year. Indonesian startups, which now have many unicorns, contribute to the number of decacorn startups in the world. According to the Ministry of Communication and Information, in 2019, Gojek was nominated as the first decacorn company in Indonesia after operating for 10 years. According to CB Insights records, the journey of Gojek’s funding source to become a decacorn began in 2014. Through Series A Funding, Gojek obtained funding from venture capital from Singapore, Openspace venture, and Capikris Foundation. In 2022, Indonesia again donates one Decacorn startup.

In a state speech held at the MPR Annual Session in August 2022, President Joko Widodo (Jokowi) mentioned the number of new digital startups that have reached the decacorn and unicorn levels. He said that in Indonesia, there were already 2 decacorn startup companies. After Gojek, now J&T Express. Based on the CB Insight report, J&T Express, which is engaged in logistics, now has a valuation of around USD 20 billion. 

3. Level of Startup : Hectocorn

Hectocorn is the name for the highest startup level and has a valuation of 100 billion US dollars or around Rp. 1,400 trillion. Also known as super unicorns, these companies are considered to be some of the most successful in the world. The term Hectocorn is formed from the Greek root word ‘hecto’, which can loosely be translated as hundred. Hectocorns companies are rare, with only a few born every decade. In fact, Indonesia does not yet have a startup Hectocorn. However, from many sources, Hectacorn companies are listed as having more than five in the world. Some examples of companies include Apple, Google, Facebook, Microsoft, Oracle, and Cisco.

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