Investors are currently being cautious in their search for funds to invest in blockchain technology, cryptocurrencies, and so on. How do you capitalise on the advantages you have?
Capital market competition is about the quality of the relationship, whether it is in Dubai, where capital is plentiful, or any other regions. However, otherwise build a quality business relationship, a quality product is expected as the foundation, and to ensure a quality product, capital is required. In this case, the chicken and egg problem applies.
Typically, an investment fund in the blockchain technology industry will raise capital from their own community or from shareholder members to begin the journey of building a portfolio. If the projects in which they invest are successful, the investment fund may be able to use the profits to persuade individual investors or the community to continue participating in a variety of other projects of their choosing. Finding a suitable and high-quality project to invest in, on the other hand, is a different matter.
We have a strong relationship network and a large capital scale for Triple-A and metaverse game projects. Similarly to the preceding formula, it took us a long time to evaluate and select projects. Once collaborations with the project takes place, we build and develop together despite many challenges.
|William Do, CEO of HOBBIT Investment |
After taking part in fundraising rounds for your projects, what experiences do you draw?
The blockchain market in Vietnam has recently become quite hot, with scams appearing, causing investor distrust. This cannot be avoided. As a result, investors must increasingly prepare and update themselves with the necessary knowledge to select the right project for themselves. In my opinion, the transparency of Vietnamese blockchain startup projects can be greatly improved if investors assess the project’s quality objectively and do not gloss over problems.
Based on these factors, the fundraising process for each project will be unique. Congestion will be largely determined by these factors as well, resulting in a weakened negotiating position.
According to experts, when the market is falling and slowing down in some areas, investment funds must assess their portfolio structure and preserve money. How is your fund restructuring its portfolio?
We’ve built our own portfolio criteria since the beginning of our venture capital adventure. This is based on the blockchain technology industry’s long-term vision and the technology’s application journey in the consumer ecosystem, which related industries. Even though the market is dropping and having a small impact on business activities, we still have a basis to carry out our mission and an increasingly sustainable belief in our goals.
What could be the next promising project and the key for you to raise capital in the near future?
Our current goal is to build a bridge to the digital asset era for traditional organisations, businesses, investors, and consumers in Vietnam and Southeast Asia in general.
Our strength is the use of overseas resources, particularly in the United Arab Emirates, where Dubai is the global blockchain industry’s capital. To take that advantage, we pre-prepare the suitable projects, have a product or service test run time, and have the ability to integrate with completed projects. As a result, the typical project to raise capital next is already planned. The figures will be calculated based on the current situation and announced later via official news sites.
What are the barriers for the fund to keep looking for projects?
When a blockchain startup in Vietnam that uses cryptocurrencies to raise capital is not legalised, the psychological barrier from investors appears to be the first factor preventing the development of the local blockchain market.
When “cryptocurrency” is mentioned within the local community, many people do not understand blockchain tech platforms, and this fear leads to the project itself being rejected by the founding team. As a result, Vietnamese blockchain startups tend to build platforms outside of Vietnam, limiting legal and community risks. As a result, huge capital flows from investors will hardly arrive in Vietnam if this continues.
| ||Vietnam Blockchain Summit 2022 set to open |
The Vietnam Blockchain Association will open a series of discussions about the potential of blockchain technology from leading experts in the field, shedding light on legal policy issues, opportunities, and potential risks surrounding blockchain applications at the Vietnam Blockchain Summit 2022.
| ||Standardising Vietnam's blockchain market data |
The Vietnam Blockchain Association (VBA) signed a strategic cooperation agreement to promote extensive research with Chainalysis, a New York-based blockchain analytics company, at the opening ceremony of the Vietnam Blockchain Summit, held for the first time on October 19.
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Blockchain technology is expected to help Vietnam's finance and banking sector deliver a better customer experience and help traditional banking institutions compete with fintech startups.
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Blockchain tech is accelerating as a key factor for national development, contributing to accelerating Vietnam’s digital transformation process as it applies to different industries and business arenas.
| ||Preparing for the next tech funding wave |
Without knowing when the fundraising winter will end, Trinh Ngoc Duc, chairman of D.lion Holdings, told VIR’s Vu Anh why there could be a change of weather in 2023, and how startups could be more prepared in terms of legal, financial, and human resources.
| ||Opportunities explored for tech cooperation between Vietnam and South Korea |
At 'Technological Investment Cooperation between Vietnam and South Korea' on November 29, speakers gave in-depth opinions on the legal context of blockchain in Vietnam and shared useful advice for startups and investors who are interested and intend to invest in Vietnam.
| ||Discussing blockchain development in Vietnam |
The tech investment event on November 28 opened opportunities for participants to discuss the legal policy framework for the sector in Vietnam and South Korea.