Because of this many VCs (Venture Capitals), angel investors, and investment banks want to join and take the profit from this market.
For the investment, they need to use platforms to connect and approach many potential companies for investment.
What are fintech investment platforms that fintech investors (especially VCs) often use in Vietnam? Let’s find out with FinFan.
If you plan to invest by yourself, signing up for a platform should be your first port of call. Investment platforms are essentially online supermarkets that enable you to purchase a range of funds, shares, bonds and other investments from one location, usually inside a tax-free stocks and shares ISA or a self-invested personal pension (SIPP).
Their online presence – some offer apps, too – makes it possible to buy, sell and keep tabs on your investments from your computer or smartphone.
However, if you are the representative for a VC (Venture Capital), you need to use some Grow Funding platforms to research good companies for your fund’s portfolios. We can call these Grow Funding platforms "Investment platforms for VCs".
Fintech investment platforms are the investment platforms for the fintech market.
In Vietnam, there is still no platform for only the fintech market. However, some representatives of VCs can refer to the following resources of Grow Funding platforms.
Indiegogo is an American crowdfunding website founded in 2008 by Danae Ringelmann, Slava Rubin, and Eric Schell. Its headquarters are in San Francisco, California.
The site is one of the first sites to offer to crowdfund. Indiegogo allows people to solicit funds for an idea, charity, or start-up business.
After crowdfunding, start-ups will cross the seeding round and this is the chance for VCs to join to invest in companies they see potential.
It has many Vietnamese start-ups, which has success after uploading their projects to Indiegogo. A successful example is UKYS, a mobile application that allows men to measure their shirts and order remotely from Vietnam, was attracting the attention of many people when raising capital on Indiegogo (USA) in 2016.
Kickstarter is an American public benefit corporation based in Brooklyn, New York, that maintains a global crowdfunding platform focused on creativity. The company's stated mission is to "help bring creative projects to life".
As of February 2023, Kickstarter has received $7 billion in pledges from 21.7 million backers to fund 233,626 projects, such as films, music, stage shows, comics, journalism, video games, board games, technology, publishing, and food-related projects.
People who back Kickstarter projects are offered tangible rewards or experiences in exchange for their pledges. This model traces its roots to the subscription model of arts patronage, where artists would go directly to their audiences to fund their work.
With Kickstarter, investors can research and find out some creative ideas for start-ups, which need more funds to develop their projects. After that, you can keep in touch with the owners or founders of these projects and decide whether to invest in the company or not.
In particular, there is a Vietnamese startup that has participated and successfully raised capital on Kickstarter. From August to September 2015, Leo Trieu - the founder of Code4Startup (specializing in online programming courses) successfully raised more than 32,000 USD on Kickstarter, while the initial fundraising goal was just $2,000. Starting in March 2015, Leo Trieu's company has a turnover of about 20,000 USD/month.
Fundable.com is a reward and equity-based crowdfunding platform for startups. Crowdfunders not only contribute and invest but also offer advice and any other assistance possible. Backers can contact the project team through the platform’s messaging system with questions or help.
Backers earn rewards such as product pre-orders, unique gifts, or special incentives from the companies’ founders in exchange for pledging capital. For larger investments, startups may also offer equity in their companies.
Back in Vietnam, we already have a company, in which start-ups can post information about their projects and get funds from investors named FundingVN.
FundingVN is a platform specifically designed for innovative start-ups. Also, to add capital, crowdfunding contains a much lower risk than raising equity capital or borrowing.
It's not that hard to explain. Crowdfunding is essentially a form of ordering and paying for products in advance. Therefore, a successful product must demonstrate its attractiveness and market potential to get capital.
Once the product is not well received, the project's opportunity to receive capital will also disappear. Thus, the project will be evaluated objectively and will not fall into the situation of backlog due to a wrong perception of the market.
SeedInvest is an equity crowdfunding platform that connects startups with investors online. The company was founded in 2012 and launched in 2013.
SeedInvest has focused on building liquidity in the platform by attracting high-net-worth individuals, family offices and venture capital firms. SeedInvest screens and vets deals before allowing them to take advantage of the JOBS Act exemption permitting General Solicitation.
In September 2014 the company launched a partnership with Angel Investing website Gust. In October 2018, SeedInvest was acquired by peer-to-peer payment company Circle Internet Financial Ltd.