Vingroup establishes VinVentures tech fund with $150 million in assets, 'Shark' Tue Lam appointed as CEO

On October 28, 2024, VinGroup announced the launch of VinVentures, a technology investment fund with total assets of $150 million. The fund focuses on investing in highly disruptive tech startups, aiming to boost and develop the startup ecosystem. It seeks to contribue to the creation of digital technology companies in Vietnam and the region.

VinVentures is a tech investment fund backed by billionaire Pham Nhat Vuong and VinGroup Corporation. The fund manages total assets of $150 million, including $100 million in inherited investments from VinGroup and $50 million planned for disbursement over the next 3-5 years.

VinVentures' key investment focus areas are Artificial Intelligence (AI), Semiconductors, and Cloud Computing, along with other high-tech products. Additionally, the Fund also opens opportunities for startups in various fields if they show growth potential and can provide quality products or services. These opportunities are not necessarily limited to startups directly related to VinGroup. The Fund aims to support innovative companies that can contribute to technological advancement and economic growth across different sectors.

The Fund's initial investment scope focuses on the Vietnamese market, targeting early-stage startups with local funding team (seed and Series A stages - round 2 and 3 out of 5 in startup funding). In the future, the Fund plans to expand its reach to regional startups, particularly in markets with development characteristics similar to Vietnam, such as Singapore, Indonesia, and Philippines. This approach allows the Fund to tap into emerging opportunities while leveraging its expertise in the Vietnamese startup ecosystem and applying it to comparable markets in Southeast Asia.

Regarding the investment process, the Fund and investee will follow these steps: meet, exchange information, research the product and startup's target market, conduct due diligence, sign a negotiation agreement, and then finalize the investment contract. The timeline from when a startup submits their application to receiving funding can range from 2-3 months, and up to 6 months for larger deals. This thorough process ensures careful evaluation and alignment between the Fund and the startup before committing to an investment partnership.

VinVentures' investment criteria focus on startups with sustainable growth potential, strong expansion rates, and products or services that are highly marketable and practical. The founding team's reputation and experience are also key factors. Investment deals will be executed on professional principles, with VinVentures acquiring shares to become a company stakeholder, expecting specific returns. The firm seeks ventures demonstrating long-term viability, rapid growth trajectories, and offerings with clear real-world applications. Founders must have proven track records and industry expertise. VinVentures aims to make strategic investments as a shareholder, with defined profit targets for each transaction.

Mrs. Le Han Tue Lam (CEO of VinVentures Fund - VinGroup) stated: "Besides capital investment, the unique value VinVentures brings to startups is the ability to connect them with companies in VinGroup's ecosystem in two roles: an environment for evaluating and testing the quality of tech products and services before market launch, and potential customers. Additionally, with the network and resources of a leading Vietnamese and regional corporation, we are ready to advise and support startups in connecting with major market partners and serve as a 'launchpad' for promising startups in the future. Our goal is to leverage VinGroup's strengths to help nurture and accelerate the growth of innovative startups that can make a real impact."

Investing in tech startups has always been VinGroup's consistent strategy as it transforms into Vietnam's leading technology conglomerate. Before VinVentures, VinGroup had already invested in many tech startups through funds like Vingroup Ventures and VinTech City. With strong resources from the group, these startups have all developed successfully and launched products to market, some even rising to leading positions in their fields, such as VinBigData, VinAI, VinBrain, and VinCSS. The group's backing has enabled these startups to thrive and make significant impacts in Vietnam's tech ecosystem. 

Continuing Vingroup's mission to create and develop digital technology companies, VinVentures provides optimal conditions for technological ideas and innovations to be realized and expand into Vietnamese and regional markets, while also broadening the Group's revenue streams.

According to the Global Entrepreneurship Startup Ecosystem Report (GESER 2023) by Startup Genome, 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 also increased significantly, from about 1,600 during the Covid-19 pandemic to over 3,800 at present. Among these, AI startups make up nearly 10% of the total. This growth demonstrates the rapid development and potential of Vietnam's startup landscape in recent years.

Credit: GenK, source: http://https://markettimes.vn/vingroup-lap-quy-dau-tu-cong-nghe-vinventures-tong-tai-san-150-trieu-usd-shark-le-han-tue-lam-lam-giam-doc-dieu-hanh-67632.html