Vietnam-based conglomerate Vingroup on Monday announced the launch of Vin Ventures Capital Fund with total assets under management of $150 million.
The fund specializes in investing in high-impact technology startups with the aim of nurturing and developing the startup ecosystem, the group said in a statement.
This initiative is expected to significantly contribute to the creation of digital technology companies in Vietnam and the entire region.
VinVentures is a capital fund sponsored by Pham Nhat Vuong and Vingroup. Pham, a car and real estate tycoon, is Vietnam’s richest person, according to previous reports.
The fund currently manages $150 million in total assets, of which $100 million has inherited an investment portfolio from Vingroup, with a further $50 million expected to be disbursed over the next three to five years. It is.
VinVentures’ major investments include artificial intelligence (AI), semiconductors, cloud computing, and other high-tech products.
The fund is not limited to companies affiliated with Vingroup, but also welcomes startups from various sectors, as long as they demonstrate growth potential and the ability to provide high-quality products and services.
The fund will initially target the Vietnam market, with seed rounds and Series A being the second and third of the typical five funding rounds for startups, especially startups with early-stage local founding teams. The focus is on the round.
In the future, the fund aims to expand its scope to include startups from regional markets with similar development characteristics to Vietnam, such as Singapore, Indonesia and the Philippines, the company added.
The Fund engages potential investors through a series of defined steps: an initial meeting, information exchange, detailed research on the product and its target market, thorough investment evaluation, execution of a negotiated agreement, and final investment agreement. I will cooperate.
The timeline for a startup to submit an application and secure funding is typically two to three months, and up to six months for larger deals.
Le Han Thu Lam, Managing Director of VinVentures, said, “VinVentures offers unique advantages to startups by not only providing funding but also facilitating connections within the Vingroup ecosystem.” I did. This includes using the ecosystem as a rigorous platform to evaluate and test products and services before entering the market, and these companies may also become customers of startups. . ”
Investing in technology startups has remained a strategic priority for Vingroup as it transitions into one of Vietnam’s leading technology conglomerates.
The group said that prior to VinVentures, Vingroup had already invested in a number of technology startups through funds such as Vingroup Ventures and VinTech City.
These startups have leveraged the conglomerate’s strong resources to develop and bring products to market, and some have become leaders in their respective fields, including VinBigData, VinAI, VinBrain, and VinCSS.
VinVentures said it will strategically optimize opportunities for the realization and introduction of innovative technology ideas into Vietnam and regional markets, while expanding the conglomerate’s revenue streams.
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 $5.22 billion.
The number of startups in Vietnam has increased dramatically from around 1,600 during the COVID-19 pandemic to more than 3,800 today, with AI startups accounting for nearly 10% of the total.
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