Inbizzy, Startups are designed to be fast-moving, problem-solving engines. Yet, in Indonesia and across Southeast Asia, a pattern is emerging: companies continuing to operate-sometimes for years-without launching a market-ready product or generating sustainable revenue.
This trend does not point to failure in the conventional sense. Rather, it raises serious questions about execution, governance, and ecosystem maturity.
Why Do Some Startups Struggle to Deliver?
1. Overextended Testing and Ideation Phases
Many founders stay in the ideation or market validation stage far too long. Without building a minimum viable product (MVP), it’s impossible to test assumptions meaningfully or collect real customer feedback.
2. Overdependence on Venture Capital
Early funding, while essential, can sometimes create a false sense of runway. With capital in hand, teams may deprioritize monetization or product completion-operating more like R&D labs than customer-driven businesses.
3. Lack of Product-Market Fit
Repeated pivots, unclear user profiles, and misalignment with market demands can lead to bloated features and no clear solution. Startups burn cash but struggle to retain active users or convert them into paying customers.
4. Internal Organizational Hurdles
Challenges such as unstable leadership, unclear product direction, or gaps in talent often lead to execution breakdowns-even in startups with great ideas.
A Case in Point: eFishery’s Internal Disruption
eFishery, once considered one of Indonesia’s agritech success stories, offers a powerful example of how internal challenges can disrupt a startup’s growth story:
- In December 2024, Tech in Asia reported that the company had suspended its co-founders amid an internal audit triggered by inconsistencies in financial reporting.
- Interim executives were brought in to stabilize operations.
- The company confirmed that internal revenue data was being reviewed, and mass layoffs were also implemented as part of restructuring.
This case did not revolve around product failure alone-but highlighted the importance of governance, transparency, and operational readiness.
The Ecosystem-Wide Impact of Startups That Don’t Deliver
While one company’s struggle may seem isolated, the broader implications for the regional startup ecosystem are significant. Here are three key areas of impact:
1. Investors Are Becoming More Selective
In the wake of high-profile issues, many investors have shifted their approach:
- They now demand clear roadmaps, tangible traction, and shorter timelines to monetization.
- Due diligence is tighter, especially for early-stage startups.
Ecosystem Effect:
- Early-stage ventures with long R&D cycles or complex solutions may struggle to attract capital.
- The funding landscape becomes conservative, favoring proven models over experimental innovation.
2. Public Confidence in Startups Is Eroding
When startups that are highly visible or well-funded face internal disruption, it naturally affects public perception:
- Consumers hesitate to try new tech products.
- Talented professionals think twice before joining startups.
- Regulators and media start scrutinizing startups more closely.
Ecosystem Effect:
- Trust must be rebuilt from the ground up.
- New startups are forced to work twice as hard to prove legitimacy.
3. Resources Are Not Always Allocated Efficiently
When narrative-driven startups dominate media and investor attention, others with high-impact solutions may go unnoticed:
- Talent flows toward companies with high visibility, not necessarily high value.
- Media coverage often focuses on valuations or personalities, not execution.
Ecosystem Effect:
- Promising but quieter startups struggle for capital and coverage.
- Innovation is stifled when risk and resources aren’t distributed equitably.
How Can the Ecosystem Move Forward?
This moment isn’t a crisis-it’s a call for recalibration. Here’s how different stakeholders can respond:
For Founders:
- Set realistic execution timelines and publish measurable progress.
- Focus on building usable products before chasing valuation milestones.
- Maintain transparency with teams, users, and investors.
For Investors:
- Look beyond pitch decks-ask for product demos, early revenue metrics, or user growth.
- Mentor early-stage founders on execution, not just market size.
For Enablers and Policy Makers:
- Provide education and mentorship around financial reporting, roadmap planning, and governance.
- Recognize startups with real user impact-even if they’re not the loudest.
Startup that don’t generate revenue or deliver products aren’t inherently failures. But when these gaps persist for years, the ecosystem must reflect and adjust. The goal is not perfection, but progress that is measurable, sustainable, and honest.
Indonesia’s and Southeast Asia’s tech economy has immense potential-but that potential is realized not through narratives alone, but through execution, trust, and accountability.
