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Venture Capital Vietnam

Venture capital is no stranger to corporations, businesses, startups, or traders. However, there are many new things to understand about the ecosystem of the Vietnam Venture Capital Fund and how they come to us. According to the article below, FinFan will go into depth and clarity about VC, as well as give you a few ways to find your own venture capital company.

What is venture capital?

Venture capital or VCs is a name for investors supporting, providing capital for start-ups, or small and medium-sized businesses wishing to expand their business. When a business has a great attraction, a detailed and relevant business plan, venture capital will be ready to pour capital. And venture capitals willing to invest in firms that appropriate those standards because they have the potential to get a giant return on investment if these firms succeed.

Some of the aspects that VCs look for are real power management teams, a great potential market, and a unique product or service with a strong competitive advantage. In addition, they seek opportunities that are familiar with and the opportunity to own a large number of shares in the business so that they can dominate their direction. NEXEA, the venture capital in the UK, they are interested in fintech, technology startups such as their expertise.

Why Are Companies Requiring Venture Capital?

“Why do I need venture capital funds? What value will they bring to my business? If they help us, will I be able to continue investing?”. First, value what you are building, ask them for help so you can gain more momentum to boost your existing potential. VCs have to face managing 10-20 companies as well as managing their investors (limited partners).

However, they are still happy if you ask that question. What VCs do is not only give you money, they pour capital for you that means they are also a part of the business. If you have a loss, so will they. Besides funding, they also try to work with you to create real value rather than solving a problem with no answers. Listen to their advice, who are talented former entrepreneurs and investors to avoid making the mistakes they used to deal with.

 

Most of the entrepreneurs and CEOs of fast-growing companies are inexperienced and sometimes they have no idea what they look for. That's why so many startups need venture capitals, and in order to mitigate the risk for a fintech venture capital, startup founders need to connect with industry professionals.

You will need to do the due diligence to be really tech-savvy if a VC is going to supplement value in addition to funds. This value could be an introduction to potential partnerships, their other network of successful founders, or the infrastructure that the company delivers.

Venture Capital confirms that invest in fintech companies in Vietnam

Investment Ecosystem - Venture Capital in Vietnam

The ecosystem of the Vietnam Venture Capital Fund has been growing since 2004. With the new rise of Vietnamese companies from industries such as transport, road to fintech and artificial intelligence has attracted exponential amounts of money, making Vietnam become one of the youngest and fastest-growing economies in Asia with an investment of US$ 7.2 billion. According to the World Bank, Vietnam's per capita GDP has increased 10 times in the past 30 years and this is the most obvious manifestation of economic development.

Currently, one of the big topics that venture capital in Vietnam and other Asian countries are being attracted to is the scale of the startups' growth in Vietnam. In particular, all new companies tend to use smart technology to operate. It is not surprising that Vietnam surpassed Singapore and Malaysia to become the fourth largest economy in Southeast Asia (behind Indonesia, Thailand and the Philippines).

Very Early Stage Investment Firms in VCs Vietnam (<US$1m):

  • CyberAgent Capital
  • DFJ VinaCapital
  • Dragon Capital
  • FPT Ventures
  •  Mekong Capital
  •  Nova's founder
  • Vietnamese investment is prosperous
  • Ridge Venture
  • VinaCapital Ventures

Later Stage Investment Firms in VCs Vietnam (>US$1m)

  • 500 startups
  • CyberAgent Capital
  • Prosperous Vietnam investment 
  • Agency accelerating start-up innovation in Vietnam

Find the right venture capital firm for your company

How to find venture capital

The first step to finding a venture capital firm in Vietnam that is opportune for your company is to understand the stage of the business's growth. Once you've identified the right business development stage, start applying for venture capitalism. Moreover, you should carefully prepare an informative manuscript with small advertising tricks to get the chance to "onsite" with VCs. Don't think this is wrong, this is one of the effective ways to make a branding. 

Second, find the best venture capital. When you start looking for VCs, you need to consider their "corridors", their ecosystems, and "specialties." The most suitable option is VCs which have similar industries to yours. You will be supported very well when working with these VCs. Venture capitals like First Round Capital, Y Combinator always have a team of leading business developers, marketers, recruiters and industry experts who can be joined to help you at any time.

As NEXEA, they have dedicated lawyers, regional CFOs, world-leading CEOs, and solid infrastructure to directly advise and invest in startups.

Venture Capital is a solution of fintech in Vietnam

Last but not least, attach a standard for the business. It assumes that your company is founded by many people, the important thing is everyone has to share and support each other in significant decisions. Willingness to give away wisdom, time in exchange for success. The moment a VC decides to choose you as a place to "burn money", this is the time when you need to put all your strength into letting them trust you and invest in you in the long term. 

As a CEO, a business developer, you need to be tricky in honesty to make sure the face-to-face interview has no information beyond your control. Please state your orientation and determination clearly. Don’t be flighty on the numbers, merely focus on your words and determination. You will succeed.

Steps to find the right venture capital firm

In addition to preparing a complete corporate profile, you also need to know the "tips" to attract investors. Before looking at some small "keyword" to help you captivate the Venture Capital, please read carefully the list of investors in Vietnam:

Geographical location,

All VCs have obvious operating areas (by continent, national territory, ..). Nexea, for example, only focuses on investing in fintech startups in Southeast Asia. In particular, Nexa prefers Malaysian-based companies because their headquarters are located in the capital Kuala Lumpur. Do your research on VCs to realize if they actually invest in the country where you operate

Business areas,

Most VCs focus on investing in businesses operating in business areas that are their strengths. It’s obvious because it makes the business more efficient. 

Portfolio conflict,

Venture capital would never invest in a company that is a direct competitor of a company in its portfolio. At this time, do you know what to look for about VCs? Geographical location, business areas, and portfolio conflicts will be important in that study.

Joining,

Two types of VC firms are activated in the world. The first is the VCs that are very involved. These types of VCs typically do not invest in a lot of companies as they have no time to be highly involved in all the companies that they invest in. The second group of venture capitals is the facing where these companies are not very involved in the firms they invest in. This is influenced by the number of startups they invest in. Simply, they have no time to meet up with each startup.

All startups are interested in every activity in the startup and always prepare a network of mentors that will give the best "answers". Many founders do not like the fact that VCs are deeply engaged in the business. Advice and questions for them are enough, so consider carefully in this case.

Fund size,

A startup must know in advance which chain the VC invests in. It does not make significance to apply for a pre-seed startup while you are making your A-series. Furthermore, if you develop a plan that you want to do your B-series and A series with the same VC to consolidate good cooperation, you should check whether or not they habilitate in both series.

 

Key takeaways:

A large number of venture capital firms are joining: The number of venture capital firms in Vietnam is increasing rapidly, this is reflected by the number of startups established and developed more and more in the region, notably finance, technology, fintech companies, etc. For startups looking for VC, it is first important to identify the company's development stage as well as set a clear boundary to choose the right development area.

FinFan hopes this article has provided you with a little bit of knowledge and skills for a better start. Let us know what problems you are facing and we will work on them together.

" Not afraid to develop, not afraid to reach out."