Changes in Direction of Start-up Business
The honeymoon period between investors and start-ups seems to have come to an end. Investors have changed their investment strategy and invest only in businesses with good prospects.
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A Gojek employee adjusts special delivery bags for drivers on Thursday (8/8/2019) during the launch of the GoGreener service in Jakarta.
The honeymoon period between investors and start-ups seems to have come to an end. Investors have changed their investment strategy and invest only in businesses with good prospects. Signs of the end of the honeymoon period can be seen from their more cautious approach to a start-up.
One example is the cancellation of the initial public offering of United States-based start-up WeWork as it was estimated that the results would not be as good as the initial prediction. Meanwhile, start-up Oyo was reported to have laid off 2,000 workers in India partly because its fundamentals were not as strong as initially thought.