According to Startup Genome's Global Startup Ecosystem Report (GESER 2023), Vietnam's startup ecosystem currently ranks third in Southeast Asia, with an estimated economic impact of up to 5.22 billion USD. The number of startups in Vietnam has also increased sharply, from about 1,600 at the time of the COVID-19 pandemic to more than 3,800 at present, of which AI (artificial intelligence) startups account for nearly 10% of the total number.
Facing that wave of development, having more resources to support startups is essential. In the coming time, startups in Vietnam, especially in technology, will have the opportunity to receive support from the VinVentures Technology Investment Fund.
This fund has total assets of 150 million USD, focusing on investing in artificial intelligence (AI); semiconductors and cloud computing and high-tech products. In addition, the fund also opens up opportunities for startups in other fields if they have growth potential and the ability to provide quality products and services.
The fund's immediate investment scope is the Vietnamese market, targeting startups with domestic founding teams in the early stages (seed stage and Series A stage - stages 2 and 3/5 of startup funding rounds). In the future, the fund will expand its reach to startups in the region, especially in markets with similar development characteristics to Vietnam such as Singapore, Indonesia and the Philippines.
Regarding the investment process, the fund and the invested unit will follow these steps: meeting, exchanging information, researching products, the startup's target market, investment appraisal, signing a negotiation agreement and then signing an investment contract. The time from when the startup submits the application until receiving disbursement can last from 2-3 months and up to 6 months for large-scale deals.
The conditions for investment funds are startups with potential for sustainable development, good growth rate, products and services with high commercialization and practical application potential, and a reputable and experienced founding team.
