The Effect of Revenue and Market Segmentation Level Towards Venture Capital Investment in Mobile Application Business

The development of mobile applications has mushroomed in local and foreign industries. This provides a tremendous opportunity for developers. For technopreneur developer, the capital to run the business is one of the biggest problems despite the fact that they may have great competence in the field. The fact that the business has big potential market in Indonesia has invited investors from local and overseas to invest as venture capital. However, due to the lack of knowledge on building collaboration with the investors and on understanding the market and investor needs in a long term, the developer finds difficulties to grow its business and to compete with bigger competitors. The research intends to seek the influence in selecting the level of revenue and market segmentation to support the investment decisions in the business of mobile applications, so that the mobile application developer is able to monetize their business to attract investors to invest in the venture capital.


INTRODUCTION
The development of mobile applications has mushroomed in local and foreign industry.This provides a tremendous opportunity for developers.For technopreneur developer, the capital to run their business creates a problem that is often experienced even though they have great competence in the business.Whereas, the market share in Indonesia is very large and it invites investors from both local and overseas to invest as venture capital.However, due to lack of knowledge about how to work together with the investors and how to give the desired value and a long-term sustainable market to the investor, it PDNHV WKH GHYHORSHU GLI¿FXOW WR JURZ LWV EXVLQHVV DQG to compete with bigger competitors.
:LWK JURZLQJ LQYHVWPHQW ¿QDQFLDO characteristics have a major role for a person in making a decision to invest.Finance decision making IRU LQYHVWPHQW ZLOO EH LQÀXHQFHG E\ REWDLQLQJ information and investor's knowledge about investment.All this time, an investor's decision in investment is seen from two sides, which are (1) How far the decision can maximize wealth (economic); (2) Decision in investment is based on psychology aspect of the investor (behavioral motivation) Usually an investor will do a research before PDNLQJ D GHFLVLRQ OLNH VWXG\LQJ FRPSDQ\ ¶V ¿QDQFLDO statement, performance, track record (portfolio), HFRQRP\ FRQGLWLRQ WKH ULVN DQG ¿QDQFH DQG economy reviews that are published in media.This study was conducted to provide additional wealth on investments made.According to the utility theory, which is developed by reff [1], (1) investor is very rational; (2) agree with complex decision; (3) do not like risk and; (4) maximize wealth.Over the years, other theories have emerged that may affect an investor's decision to invest, based on the aspects of psychology (behavioral motivation).Other than that, according to empirical study about investor characteristic which is conducted by reff [2] testing about how demography variable can affect the process of deciding the composition of portfolio investment.
Other factor that can affect decision making of investor's investment is behavioral motivation which can be seen from demography variable, like gender, age and education.Reff [3] sets that age, gender, earning and education affect investor's FKRLFH IRU SUR¿W GLYLGHQG DQG DOO SUR¿WV ZKLFK DUH wanted.Moreover (Warren and friends, 1990) [3] say that a investor's choice is more based on lifestyle and demography characteristic.
Many investors in making decision to invest only see and consider accounting information factor, so the goal of investment can be achieved.However, the other factors aren't considered.That factors are often called as traditional analysis tools and investor often feels that it is enough by seeing the two factors to make decision in investment.In addition, many investors do not know that there is other factors which can be used as consideration before doing an investment.

GOAL
7KH JRDO RI WKLV VWXG\ LV WR ¿QG RXW DERXW HIIHFW of restoration revenue towards decision to invest in venture capital in mobile application business.To ¿QG RXW DERXW HIIHFW RI FKRRVLQJ PDUNHW VHJPHQWDWLRQ which is chosen by developer towards decision to invest in venture capital in mobile application EXVLQHVV $QG WR ¿QG RXW WKH PRVW GRPLQDQW DQG affecting factor that affects the decision making in mobile application business investment.The result of this study will give a recommendation to developers to monetize mobile application business that they run.

LITERARY REVIEW
This part is literary review about supporting theories which is used in analysis and research discussion.

Investment Theory
There are several investment theories according to experts.According to reff [4], the activity which is held with utilizing cash in the present time.Investment's meaning according to reff [5] is an asset which is used by company for growing wealth thorough the result of investment distribution (like interest revenue, royalty, devidend, rent revenue and others), for appreciating investment value, or other EHQH¿WV IRU FRPSDQ\ WR LQYHVW OLNH EHQH¿W ZKLFK LV got from trading.According to reff [6] investment can be interpreted as capital implantation in an activity which has relatively long period of time in many business sectors.Capital implantation which is implanted in small meaning is a certain project that is physical or non-physical, like project about building a factory, road, bridge, a building and research project, and development.
Sourced from the other theory about investment, according to reff [7], investment is an effort to implant rare production factors in certain project.Both are completely new or expanding project RU H[LVWLQJ IDFWRU\ WR JHW ¿QDQFH EHQH¿W DQG RU QRQ ¿QDQFH EHQH¿W ZKLFK DUH IHDVLEOH ODWHU $FFRUGLQJ WR reff [8], he states that "investment is attribution of sources in long term to yield revenue in future time.

Venture Capital
Venture capital is long term investment in the form of giving capital that consists of risk where capital provider hopes capital gain [9].According to reff [10], venture capital is fund that is invested into a company or an individual that has high risk.Moreover, according to reff [11], venture capital LV ¿QDQFLQJ EXVLQHVV WKDW HQDEOHV IRUPLQJ DQG GHYHORSLQJ QHZ EXVLQHVV LQ WHFKQRORJ\ ¿HOG DQG RU technology.Quoted from reff [12], "venture capital FRPSDQ\ LV D ¿QDQFLQJ HQWHUSULVH LQ IRUP RI FDSLWDO LQFOXVLRQ LQWR D FRPSDQ\ ZKLFK UHFHLYHV ¿QDQFLQJ help for certain time".
There can be concluded that venture capital LV DQ LQYHVWPHQW LQ IRUP RI ¿QDQFLQJ OLNH FDSLWDO inclusion into a private company as an investee company for certain time.In general, this investment is done in form of capital handover in cash which is exchange with some shares in an investee company.This venture capital investment often has high risk, EXW JLYHV D JUHDW SUR¿W DV ZHOO 9HQWXUH FDSLWDOLVW LV an investor who invests in a venture capital company.This venture fund manages investment fund from third party (investor) with the main goal to do an investment in a company that has high risk so that LW ZRQ ¶W IXO¿OO WKH VWDQGDUG UHTXLUHPHQW DV RSHQ company or to get loan capital from bank.This venture capital investment also includes giving managerial and technical help.Most of this venture fund is from investor group who has established ¿QDQFH EDQN LQYHVWPHQW DQG RWKHU ¿QDQFH LQVWLWXWLRQ which does fund collecting or partnership for the goal of that investment.Capital inclusion which is done by venture capital mostly done towards companies that is recently established, so that it doesn't have any operational history which can be used as note to get a loan.As an entrepreneurship, venture capital owner often has right as way determinant in company policy according to share amount that he has.

Revenue
Revenue is the result of handover good or service that has been produced in company operation.Revenue is a key element in determining WKH OHYHO RI EHQH¿WV WKDW FDQ EH VHHQ DV WKH FRPSDQ\ ¶V achievements in operating the company in a given period.According to reff [13] in his book "accounting theory" states that revenue is inrush or increasing value of asset of an entity or settlement of its loan (or combination of both) during a certain period from the delivery or manufacture of good.Provision of service or implementation of other activities which are the main activity are ongoing of that entity.
From several understanding about revenue above, it can be concluded that revenue is inrush of gross or the increasing value of asset and decreasing of liability from the normal activity in the company during a certain period which is stated in monetary unit.

Sources of Revenue
According to reff [14], revenue which is gained by company based on the sources is divided into two groups: (1) Operating revenue.It is a revenue that is received by company that is related directly to the main business of that company.(2) Non operating revenue.It is a revenue that is received by company that does not have any direct relation with the company's main business.

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Market segmentation is an activity of splitting market which is heterogeneous into market units which are homogeneous [15].There is also an opinion of reff [15] that formulates market segmentation as an act of splitting market into certain market segmentations as into sales target that will be achieved using marketing PL[ :KLOH GH¿QLWLRQ ZKLFK LV JLYHQ E\ UHII > @ says that market segmentation is a process of splitting market into potential customer segmentations with similar characteristic which shows there is similarity in customer's behavior.

Previous Research
Synthesis of previous research can be seen on table 1.Based on the synthesis of several previous researches (table 1), it can be seen that investment GHFLVLRQ DQG IXQGLQJ KDYH VLJQL¿FDQW HIIHFW WRZDUGV company value.Thus, this study is the continuation of SUHYLRXV UHVHDUFKHV WR ¿QG RXW WKH HIIHFW RI UHYHUVLRQ of revenue level towards decision in investment.The effect of choosing market segmentation to investment decision and the effect of the most dominant factors in deciding to invest especially in mobile application business.

METHOD
This part explains about the research methodology which is taken.It includes the research model, population and sample that are used, collecting data methodology, and hypothesis, also analysis tool that is used.

Research Model
The concept of this research refers to revenue study, market segmentation and other factors.Those factorsare Revenue (RV), Psychography (PG), Demography (DG), Geography (GG), Behavior (BV) and Supporting Factors (SF).Venture capital investment will be related to the dimension of revenue level and market segmentation (picture 1).

Population and Sample
Population and sample are obtained from investors that are listed in Jakarta Stock Exchange or ever listed in Jakarta Stock Exchange and ever making investments in Jakarta.The research sample is investors that are listed in Jakarta Stock Exchange or ever listed in Jakarta Stock Exchange or ever making investments in mobile application business.Collecting data is done in four weeks.

Hypothesis
To explain the effect of revenue and market segmentation towards venture capital investment decision in mobile application business, then the hypothesis can be made like below: H1: the higher revenue reversion, then the higher the venture capital investment decision in mobile application business.H2: demography aspect in market segmentation JLYHV VLJQL¿FDQW HIIHFW WR YHQWXUH FDSLWDO investment decision in mobile application business.H3: factor in revenue reversion is the most dominant that affects venture capital investment decision in mobile application business.

Analysis Tool which is Used
Analysis tool which is used in this research is: (1) Likert scale method.It is a common scale SV\FKRPHWULF ZKLFK LV XVHG LQ TXHVWLRQQDLUH DQG is scale which is the most used in research in form RI VXUYH\ :KHQ UHVSRQGLQJ WKH TXHVWLRQ LQ /LNHUW scale, respondents determine their level of agreement towards a statement by choosing one of the available FKRLFHV 7KH TXHVWLRQ LV SUHSDUHG LQ ¿YH VFDOH choices with the format like these; Strongly disagree, Disagree, Doubtful, Agree, Strongly agree.(2) SEM DQDO\VLV 6WUXFWXUH (TXDWLRQ 0RGHO By using SEM analysis, structural sample examination and measurement enable researcher to test measurement error as an inseparable part of 6WUXFWXUDO (TXDWLRQ PRGHOLQJ DQG WR GR IDFWRU DQDO\VLV as well with hypothesis testing.In SEM analysis, there is exogenous variable and endogenous variable.Exogenous variable is often as independent variable (X var in regression) which is not affected by other variable in a model.While endogenous variable is a variable that is affected by other variables in a model (Y var in regression)

Introduction
This research will use SEM method in processing the data.Based on the research model, processing data passes several steps, including processing data 1st order for venture capital investment decision variables, then continuing with processing data 2nd order or processing all variable H[RJHQRXV DQG HQGRJHQRXV GDWD DIWHU WKDW HTXDWLRQ RI structural for all research models are done.However, before entering steps above, there will be validity and reliability test to research indicators.

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UHVSRQGHQWV IRU JHQGHU IUHTXHQF\ is obtained that respondent with male gender is more than female respondent.This can happen because there is not too many women who want to or are brave to invest in capital market, since women are more afraid with the risk than men.Khan in reff [21] and in reff [22] state that women have emotionality warmth, reserved and sensitivity more than men.While for emotional level, women is more emotional so their emotion maturity level is lower than men who are more rational and use logic so their emotion maturity level is higher.Shields in reff [23] and in UHII > @ JRDO RU LQYHVWPHQW ¶V EHQH¿W EHWZHHQ PHQ and women is also different, men aim for getting OLYLQJ ZKLOH ZRPHQ IRU IXO¿OOLQJ WKHLU HPRWLRQ WR give attention to family.Validity is cultivated with logic thinking, to ask experts' opinions, using group's characteristic which is already known, independent criteria.Item that is used in this research will be tested next about the reliability.
Reliability means having trusted characteristic, which is when the measurement tool is used several times by the same researchers and by others, it will be still the same.So reliability is how far the consistency of measurement tool can give the same result in measuring the same subject.
Reliability test is used to measure a TXHVWLRQQDLUH ZKLFK LV LQGLFDWRU RU YDULDEOH RU FRQVWUXFW $ TXHVWLRQQDLUH LV VDLG WR EH UHOLDEOH LI someone's answer to the statement is consistent and stable from time to time.Measurement with one shot or one time measurement is used in this research.According to reff [24], a construct or variable is said to be reliable, if it gives Cronbach alpha > 0.60 value [24] Validity test is done by using factor analysis which is factor loading to make sure that every  7.

CONCLUSION
Referring to the result of research above, it delivers that H1 is accepted, so this research states WKDW WKHUH LV VLJQL¿FDQW UHODWLRQ EHWZHHQ UHYHQXH level and venture capital investment.
While for market segmentation variable, it can be concluded that based on demography factor, investors who are 25-29 and 50-54, consider almost all factors, while for below 25 and above 29 until 50 doesn't consider factors too much.However seeing from the gender, female investors are still afraid so they are careful in making decision because all factors are so being considered in investment decision.Education level also affects someone's investment GHFLVLRQ ZLWK HGXFDWLRQ OHYHO WKDW LV DOUHDG\ FODVVL¿HG DV KLJK GRHVQ ¶W PDNH LQYHVWRUV FRQ¿GHQW WR GHFLGH which factors are more important, investors with bachelor degrees also considers all factors which are related with their investment activity.In other word, the result of research is also parallel with second hypothesis (H2 is accepted).
Beside three aspects above, how long investors are in investment also affects in deciding which factors that should be considered.Investors ZKR DUH FODVVL¿HG DV QHZ LV \HDU VWLOO QRWLFH DQG consider all factors before making decision, while investors who have invested for long time, have started decreasing factors that must be considered in investment decision.Suggestion for the next research is: a.The research result can be adopted and applied in most mobile application business that includes investors in investment

Table 1 :
Research tools ZKR DUH DVNHG WR ¿OO WKH TXHVWLRQQDLUH DUH WKH LQYHVWRUV ZKR DUH LQYHVWLQJ in several mobile application companies in Jakarta.This research is done on January 2014 till February 2014.After the data has been collected, it turns out

Table 3 .
Which respondents' average age is 25-29 years, which at this age, investor is in productive age and phase of developing career and family affair so all abilities are used to work and get money as much as they can for their retirement day.
Output structural estimates parameter can be used to test exogenous and endogenous construct relation in model structural.The result of testing estimates parameter can be seen on regression weight part in output estimates.While for close relation between variables can be seen in standardized regression weight in output estimates.Based on output AMOS result, it can be obtained that each regression weight and standardized regression weight can be seen on Table