The Influence of Fintech Technology Usage (Equity Crowdfunding and Peer-to-Peer Lending) on Investment Funding Decisions and Their Implications for Market Risk in Digital Startups in Indonesia (Educational Researcher Journal)

Summary

• Indonesia's digital economy recorded a Gross Merchandise Value of $82 billion in 2024, supported by more than 2,400 active startups across various sectors.p.2
• By December 2024, cumulative P2P lending disbursement in Indonesia exceeded IDR 300 trillion, serving over 20 million borrowers.p.2
• Equity crowdfunding raised more than IDR 1.2 trillion from 150,000 investors to finance roughly 400 issuers by the first half of 2024.p.2
• Among the 178 digital startups analyzed, 52% utilized a combination of peer-to-peer lending and equity crowdfunding schemes simultaneously.p.16
• Peer-to-peer lending exerted a stronger positive effect on investment funding decisions (β=0.427) than equity crowdfunding (β=0.348).p.1
• Startups relying on a combination of equity crowdfunding and P2P lending demonstrated the highest Value at Risk at 8.15% of total assets, compared to 4.28% for those using equity crowdfunding alone.p.1

Key insights

1. Equity crowdfunding (β=0.348) and peer-to-peer lending (β=0.427) both significantly and positively influence startup investment funding decisions.p.1
2. Peer-to-peer lending impacts funding decisions more heavily than equity crowdfunding due to its liquidity speed and operational working capital flexibility.p.1
3. Aggressive investment funding decisions significantly drive up market risk exposure, yielding a positive effect on Value at Risk (β=0.521).p.1
4. Startups employing both equity crowdfunding and peer-to-peer lending face the highest Value at Risk at 8.15% of total assets.p.1
5. Using equity crowdfunding alone results in the lowest market risk profile with a Value at Risk of 4.28% of total assets.p.1
6. Investment funding decisions partially mediate the impact of equity crowdfunding (55.0% VAF) and P2P lending (53.4% VAF) on market risk.p.21
7. Logistics technology and agritech represent the sectors with the highest Value at Risk at 8.21% and 7.41% respectively.p.22