VietNamNet Bridge - Many ‘100 percent Vietnamese’ names have provided funds for startup projects since mid-2014. Vietnamese venture funds are now targeting retail and technology startups with investment deals worth $50,000-200,000.

Mai Hoang Phuong, director of Seedcom JSC, said investors chose technology firms because they do not require high initial investment capital. 

Strong internet development in the country and the Vietnamese eagerness for high technologies are two other factors.

FPT Ventures, a fund set up by FPT, the largest information technology group, targets startup projects valued at under $1 million in internet, mobility, healthcare, education, transport and SMAC.

The top priority for FPT Ventures is seed funding and Series A, i.e., startup projects which have developed ideas and begun their business, or businesses from incubators in Vietnam and the region which have relations with FPT, such as 500 Startups, Founder Institute, Magic, JDFI and Dream+.

FPT’s President Truong Gia Binh said FPT would allocate $3 million a year to FPT Ventures.

Like FPT Ventures, Seedcom has poured money into retail, retail-based and e-commerce businesses. 

Phuong noted that the retail sector in Vietnam has great potential thanks to the size of the population and the number of young people.

Successful connections

Domestic funds have set relatively high requirements on startups. Director of FPT Ventures Nguyen Huu Duc said the fund would make investment decisions within four months after startup ideas are presented.

“Our requirement on startup founders is that they have to successfully develop a big business within five years,” Duc said.

Seedcom, which debuted in June 2014, reported that it had invested in 15 firms in retail, supply chain and e-commerce. 

Seedcom helps Juno.vn connect with haravan, giaohangnhanh and Izihelf. Juno not only sells goods at its shops, but also on the internet; it needs haravan.com’s support in designing a website, while giaohangnhanh is in charge of delivering goods to customers.

Meanwhile, Izihelf helps provide customer care through operators, a website and Facebook to help Juno better understand its customers.

Established in 2008 as a shoe manufacturer, in 2012, juno.vn opened a shop selling shoes, handbags and jewelry. 

However, it only opened two shops until it met Seedcom and connected with haravan, Izihelf and giaohangnhanh. Now, Juno.vn has 15 shops in HCM City and Hanoi.

In a similar case, concung.vn, after the first development stage, set up 80 shops in many provinces and cities. 

Giaohangnhanh is present in 63 provinces and cities and 400 districts.

DNSG