Remote IT Support for Startups: Cutting Costs and Boosting Security

Whether sponsored by the government, a nonprofit organization, a university, or a commercial company, a program's primary funding source determines its approach. Many times, programs mix money from many sources. Apart from outside sponsors' contributions, internal funds could be created from rent paid by tenants and from equity investment. There are no guidelines for their utilization, hence these monies are rather flexible.

Developing a sustainable finance plan can present challenges. "It is not easy to establish an incubator," stated the founder of an agritech firm (no. 3), "you need a lot of resources." Moreover, it can be difficult to get the returns on the investments made in startups by the program; many of them fail, hence losing money on the investments. Funding problems could be the reason some interviewees observed that although the number of incubators has

increased dramatically in recent years, it has not grown as quickly as the number of entrepreneurs.Finding private (commercial) sponsors for incubators and accelerators targeted at businesses with social impact is challenging since these sponsors want to assist startups capable of producing profits and a return on investment The difficulty in locating independent

sponsors with a similar business model

goal is, I believe, causing the number of incubator and accelerator programs in Indonesia to be declining over time.Directly funded by the government, incubators have a consistent financial stream. This offers money for help, not for direct initial tenant investment. We get internal government funding from the government institution as part of our employment with it. But we can'tOur corporate partners provide most of our financial source. Usually used to

assist accelerator programs, our partners are businesses. They pay a membership fee as we serve as the link bringing them together with possible entrepreneurs. Those revenues help us to run the program. As our business partners are rather excited (Incubator-Accelerator no. 8), there are not many challenges thus yet Corporate partners sponsor a group of businesses in an incubation or accelerator program under the batch strategy. Usually given for up to three

years, the investment is seen as sustainable for the incubator or accelerator. While certain companies might also make direct investments in particular batch of businesses, this is only done so for startups upon program completion. The startups can pay their incubator fees from a part of this funding. Rather than a monthly charge during the program, several firms opted to pay us shares at the end of the batch. Usually, our [business] cooperation lasts three years,

so it can be seen as rather sustainable

Together, we also search for possible startups to support Incubator-Accelerator number seven.At the end of the batch, this approach so gives startups pre-seed money from corporate partners. This money comes with another round of financing from the same company upon program termination. t make investments in tenants as the state provides our funding.Funding from the CPPBT and the PPBT [Tech-Based Startup Grant Program]

programs came from without. Regarding the PPBT initiative, there were no funds available directly for the incubator [for operations other than tenant aid]. These monies could only be applied for startup development. Still, we were let to retain 20%–30% of the overall CPPB program money from every firm (Incubator-Accelerator number three) One incubator pointed out that the 25% allotment from CPPBT money fell short Since the incubator gets only 25% of the whole grant amount for their operating funds, the grant amount of CPPBT is insufficient to

run extensive coaching by incubators. This is particularly true for far-separated tenants and incubators. Less than Rp250 million (Incubator-Accelerator no. 4) should be the ideal award amount. Moreover, government funding from the CPPBT were given depending on a budget and plan the incubator filed and had to be used on items mentioned in the plan. This caused issues when support requirements changed between the period the plan was developed and presented and the period the money was utilized. Part of the adjustments were the pivoting of

the incubator's startups saw the termination

of the the Tech-Based Startup Grant Program ( was renamed Research-Based Startups (Perusahaan Pemula Berbasis Riset The later gives every startup Rp200 million–Rp300 million annually. Usually with limited resources, university incubators have steady means to support their occupants They run out of an academic institution, hence the Ministry of Education, Culture, Research and Technology controls the programs. The rules of the ministry

make it challenging for the incubator (including its tenants) to obtain money from outside of university resources From our experience, getting outside commercial sector investment for a university-based incubator is not simple. This is so since the money has to pass via the institution first. The ministerial rule of the Ministry of Education, Culture, Research and Technology (Incubator-Accelerator no. 3) also greatly controls our activities. Although there

are various financial sources used in privately supported incubators, two forms rule most. These are the batch and membership approaches respectively. Under the membership concept, the business partner pays the program a membership fee to cover running expenses. This membership cost returns help the company to interact with possible startups

Conclusion

supported by the program money. Thus, our operations concentrate just of mentoring and offering business matching with investors (IncubatorAccelerator no Start-up support programs notably Tech-Based Pre-Startup Grant Program offer external government funding. Startups housed in an incubator receive funding; they are obliged to pay the incubator a share about of the proceeds. The gave individual startup tenants Rp200 million–Rp250 million yearly when

was in running.Funding is a key support for startups. Most startups begin with a development stag where they create, test, and refine the product. During this time, there is little or no revenue, and therefore startups cannot service credit (i.e., pay interest and principal). Instead, the startup requires a form of funding that does not need to be serviced (i.e.,  repaid), such as equity, but also grants. Even if the startup begins to scale, revenues may not be sufficient to