Vingroup establishes $150 million venture capital fund

VinVentures to invest in startups in AI, semiconductors, and cloud computing, as well as other high-tech products. Photo: VinFast

The fund is designed to foster growth and innovation within Vietnam’s startup ecosystem, contributing to the expansion of digital technology enterprises across Vietnam and the wider region.

VinVentures, backed by Pham Nhat Vuong and Vingroup, includes $100 million inherited from Vingroup’s existing investment portfolio, with an additional $50 million set for disbursement over the next three to five years. The fund’s primary focus is on cutting-edge sectors such as AI, semiconductors, and cloud computing, while remaining open to startups in other fields that demonstrate promising growth and quality.

Initially targeting the Vietnamese market, VinVentures will focus on startups with Vietnamese founding teams in early stages, particularly those in the seed and Series A funding rounds. Over time, the fund aims to extend its reach to regional markets with development characteristics similar to Vietnam, such as Singapore, Indonesia, and the Philippines.

The investment process includes several stages: initial meetings, data exchange, comprehensive market research, investment assessment, and contract finalisation. The timeline from application submission to funding typically spans two to three months, extending up to six months for more extensive transactions.

VinVentures has set clear criteria, seeking startups with sustainable growth potential, viable commercial products, and proven leadership. As a professional investment entity, the fund acquires equity stakes in these companies, becoming shareholders with defined profit expectations.

Le Han Tue Lam, managing director of VinVentures, emphasised that the fund provides more than capital; it enables startups to leverage Vingroup’s extensive ecosystem as a platform for rigorous product testing and market entry. “Our ecosystem serves as a platform for startups to refine their offerings. Additionally, our broad network and resources facilitate connections with major market players, further catalysing growth,” she said.

VinVentures builds on Vingroup’s legacy of supporting tech enterprises, following previous investments through Vingroup Ventures and VinTech City. This sustained commitment has seen Vingroup-backed startups such as VinBigData, VinAI, VinBrain, and VinCSS emerge as leaders in their fields. By expanding its focus on digital technology, VinVentures will optimise the introduction of innovative solutions within Vietnam and beyond, while diversifying Vingroup’s revenue streams.

According to the 2023 Global Startup Ecosystem Report by Startup Genome, Vietnam’s startup ecosystem ranks third in Southeast Asia, generating an estimated economic impact of $5.22 billion. Since the COVID-19 pandemic, the number of Vietnamese startups has surged from 1,600 to over 3,800, with nearly 10 per cent focused on AI, reflecting the sector’s rapid growth and strong investor interest.

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