Thirty-three investment funds have committed to invest US$815 million in Vietnamese startups through 2025 as part of an agreement signed yesterday at Vietnam Ventures Summit 2020.
Some of these foreign funds have already been very active in Vietnam, such as CyberAgent Capital, AlphaJWC, Monk’s Hill Ventures, 500 Startups, Beenext, Smilegate Investment, and Access Ventures. Local ones include VinaCapital Ventures, Do Ventures, and Viet Capital Ventures.
Aerial view of Ho Chi Minh City skyline./ Photo credit: 123rf
Vietnam Ventures Summit is an initiative co-organized by the Vietnamese government and Golden Gates Ventures. In last year’s event, 18 VCs committed to investing US$415 million in local startups, US$220 million of which has been disbursed by the beginning of 2020, according to a statement.
Vietnam has been identified as the next growth market for tech investment after Indonesia. But after racking up three of Southeast Asia’s mega-deals in 2019, its momentum has slowed down: The country received only US$166 million in tech investments in the first half of 2020 compared to Indonesia’s US$2.8 billion, according to estimates by Cento Ventures.
Some investors have talked about the lack of Vietnamese startups with regional aspirations and investable startups in earlier stages.
See also: Vietnam’s rising startup scene may have a glaring weakness
A new report by McKinsey & Company predicts that 12 large digital ecosystems (companies providing services across sectors) will be established across retail and services in Vietnam by 2025, creating a revenue pool of about US$100 billion by that year.
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