The Effect of Venture Capital on the Growth of Startups in Indonesia: A Case Study on BRI Ventures


  • Chairanisa Natasha Miraza University of Indonesia
  • Elvia R Shauki University of Indonesia



Venture capital, Startup, Investment decision, Diffusion of innovation theory, Sustainability


The low success rate of startups has caused venture capital firms to bear a large risk of investment failure (BRI Ventures, 2021). Venture capital firms play an important role in identifying potential startups and being the driving force for startup success. This study aims to find out the role of BRI Ventures (BVI) in increasing the success rate of startups in Indonesia, how BRI Ventures (BVI) makes funding decisions, and the criteria set before funding startups. The data analysis uses descriptive qualitative analysis, which includes content, thematic, and constant comparative analysis and is processed using the NVivo 12 Pro software application. This study uses the diffusion of innovation theory to examine the role of BRI Ventures (BVI) in increasing the success rate of startups in Indonesia. The results show that BRI Ventures (BVI) uses the 5Ps approach, a self-designed investment analysis tool to assess whether a startup is feasible to fund. The indicators of 5Ps include people, product, potential market, performance, and potential upsides. The people indicator, which consists of the founder and the team, plays an important role in the success of a startup. The findings of this study suggest that BRI Ventures proactively provide innovations through mentoring programs to increase the success rate of startups. This research is expected to be useful in the financial sector, especially in terms of funding and innovation, for the business sustainability.


Bocken, N.M.P. (2015). Sustainable venture capital – catalyst for sustainable start-up success?. Journal of Cleaner Production, 108, 647–658.

Blank, T. H. (2021). When incubator resources are crucial: Survival chances of student startups operating in an academic incubator. The Journal of Technology Transfer, 46(6), 1845-1868.

BRI Ventures. (2021). Investment Update (April 2021 ed., pp. 1-16). Jakarta: Bank Rakyat Indonesia

Buchner, A., Mohamed, A. and Schwienbacher, A. (2017). Diversificaton, risk, and returns in venture capital. Journal of Business Venturing, 32(5), 519–535.

Cantamessa, M., Gatteschi, V., Perboli, G., & Rosano, M. (2018). Startups’ roads to failure. Sustainability, 10(7), 2346.

Capizzi, V., Croce, A., & Tenca, F. (2022). Do Business Angels’ Investments Make It Easier to Raise Followâ€on Venture Capital Financing? An Analysis of the Relevance of Business Angels’ Investment Practices. British Journal of Management, 33(1), 306-326.

Chen, T. & Ni, Y. (2019). Research on BIM technology diffusion barrier-based on innovation diffusion theory. IOP Conference Series: Earth and Environmental Science, 218(1), 012031.

Crabtree, B. F., & Miller, W. L. (2022). Doing qualitative research. Sage publications.

Hegeman, P. D., & Sørheim, R. (2021). Why do they do it? Corporate venture capital investments in cleantech startups. Journal of Cleaner Production, 294, 126315.

Kalyanasundaram, G. (2018). Why Do Startups Fail? A Case Study Based Empirical Analysis in Bangalore. Asian Journal of Innovation and Policy, 7(1), pp. 79–102.

Kuratko, D. F., Neubert, E., & Marvel, M. R. (2021). Insights on the mentorship and coachability of entrepreneurs. Business Horizons, 64(2), 199-209.

Lee, B. (2019). Human capital and labor: the effect of entrepreneur characteristics on venture success. International Journal of Entrepreneurial Behaviour and Research, 25(1), 29-49.

Maristiana, S., Hartono and Supriyanto, A. (2017). Pengaruh Analisis 5 C (Character, Capacity, Capital, Colleteral, and Condition) Dalam Pemberian Kredit Di PT. Bank BRI Unit Indraprasta. Journal of Accounting, 3, 1-18.

Martoredjo, N.T. (2015) Peran Dimensi Mentoring Sumber Daya Manusia, Humaniora, 6(4), (pp. 444–452).

Monika A K, S. (2015). Venture Capitalists’ Investment Decision Criteria for New Ventures: A Review. Procedia - Social and Behavioral Sciences, 189, 465–470.

Mukti, I. Y., Wibowo, A. P. W., & Galih, S. (2019). Lessons learned to increase the digital startups success rate. Global Business and Management Research, 11(1), 226-234.

Mullen, C. A., & Klimaitis, C. C. (2021). Defining mentoring: a literature review of issues, types, and applications. Annals of the New York Academy of Sciences, 1483(1), 19-35.

Nabila, M 2020, BRI Ventures Kelola Dana Ventura Baru “Sembrani Nusantaraâ€, media release 24 Juni 2020, viewed 18 May 2021, <>.

Nehemiah, M., Jokonya, O. & Pako, M. (2017). Risk and opportunities connected to the adoption of internet banking in an emerging market. Risk Governance and Control: Financial Markets and Institutions, 7(2), 95–107.

Parfitt, C. M., & Rose, A. L. (2020). Informal mentoring for aspiring school leaders: A phenomenological study. Mentoring & Tutoring: Partnership in Learning, 28(3), 278-294.

Otoritas Jasa Keuangan, (2015). Peraturan Otoritas Jasa Keuangan Nomor 35/POJK.05/2015 Tentang Penyelenggaraan Usaha Perusahaan Modal Ventura, viewed 18 May 2021, <>.

Rogers, E.M. (1995). Diffusion of Innovations: Modifications of a Model for Telecommunications. In: Stoetzer, MW., Mahler, A. (eds) Die Diffusion von Innovation in der Telekommunikation. Schriftenreihe des Wissenschaftlichen Institut fur Kommunikationdieste, 17, (pp. 25–38). Springer, Berlin.

Savaneviciene, A., Venckuviene, V. and Girdauskiene, L. (2015) Venture Capital a Catalyst for Start-Ups to Overcome the "Valley of Death": Lithuanian Case. Procedia Economics and Finance, 26(15), 1052–1059.

Startups per country. viewed 12 May 2021, <

Teker, D., Teker, S. and Teraman, Ö. (2016). Venture Capital Markets : A Cross Country Analysis. Procedia Economics and Finance, 38(October 2015), 213–218.

Vargo, S. L., Akaka, M. A., & Wieland, H. (2020). Rethinking the process of diffusion in innovation: A service-ecosystems and institutional perspective. Journal of Business Research, 116, 526-534.

Winosa, Y. (2021). Ini Alasan 90 Persen Startup di Indonesia Gagal. viewed 13 May 2021, .

Yuen, K. F., Wang, X., Ng, L. T. W., & Wong, Y. D. (2018). An investigation of customers’ intention to use self-collection services for last-mile delivery. Transport Policy, 66, 1-8.




How to Cite

Miraza, C. N., & Shauki, E. R. (2023). The Effect of Venture Capital on the Growth of Startups in Indonesia: A Case Study on BRI Ventures. Journal of Economics, Business, and Accountancy Ventura, 25(3), 358–368.