500 Startups Vietnam, a venture capital company that is focused on Vietnam has just closed a $10 million USD fund with a $14 million USD instead, due to interest in Vietnam and an over subscription to the new fund. According to the 500 Startups blog post, investors in this round include GS Shop, Humax and NCore, as well as others.
According to Eddie Thai, one of the principals of 500 Startups Vietnam, the $14 million USD fund will allow the company to provide capital investment of $100,000 ~ $250,000 USD to a minimum of 60 startups.
In its investment prospectus, 500 Startups Vietnam noted that while Vietnam wasn’t an obvious technology investment destination several years ago, entrepreneurs held a different view of the country – a fast-growing economy; a substantial supply of low-cost, high-tech talent; and a broad and experienced Vietnamese diaspora increasingly interested to reconnect with and contribute to the country.
500 Startups Vietnam has currently invested around $3 million USD in 36 companies in blockchain, educational technology, e-commerce and financial technology. The focus of these companies is on either serving the Vietnamese market or leveraging Vietnamese talent and resources.
According to the Topica Founder Institute – there were at least 92 startup deals in 2017. And new funds have been launched recently to invest in more Vietnam-connected startups, including: ESP Capital, Startup Viet Partners, VinaCapital Ventures and Zone Startups Vietnam, so the $14 million USD in new investment capital that Startups 500 Vietnam has raised will allow the company to have a much bigger footprint in Vietnam’s technology scene.
Google and Singapore’s state investment firm Temasek report that in 2018, Vietnam’s digital economy will have a turnover of $9 billion USD in gross merchandise value (GMV) across online travel, e-commerce, online media and ride hailing, which is akin to “a dragon being unleashed.”
The Vietnamese Internet economy is booming with e-commerce growth almost doubling in 2018 from a year earlier, and online advertising and gaming growing at more than 50% year-on-year, the Vietnamese Internet economy is projected to reach $33 billion USD by 2025, at a compounded annual growth rate (CAGR )of 25% in 2015 – 2025.