About 15 startups out of a total of 40 teams under the acceleration programme of Vietnam Silicon Valley (VSV), the public-private partnership to support Vietnamese startups, have bagged external funding outside of the programme, a VSV executive told this portal.
The investment – which is different from VSV grants which is at least at $10,000 each – stood at around $100,000 per company and mostly came from angel investors, Han Ngoc Tuan Linh, CEO of VSV told DEALSTREETASIA, without giving additional details.
“The acceleration grants by VSV are also facilitated by private investors, including individuals and established companies,” Linh said.
VSV is a project initiated by the local science and technology ministry, which has seen heavy participation from the private sector.
Private companies based out of Vietnam joining VSV’s investor club include Vietnam International Bank, property developer Imperial Group, investment consultancy firm ATV Vietnam and IDT International, a company that has been investing in the finance, education and technology sectors.
VSV usually holds stake in these startups for a period of three to five years. “We currently have holdings (in these companies) and want to help these startups be ready (to bring on board) other investors,” he added.
VSV was launched in 2013 to show the local government’s commitment to building a startup ecosystem in Vietnam, and to help these newly setup companies with acceleration, product commercialisation and venture capital funding.
It has so far trained four batches of Vietnamese startups, attracting investors to fund a few of them, notably Golden Gate Ventures’ 7-digit US dollar investment in food discovery app Lozi, undisclosed series A round for corporate collaborative platform provider TechElite, and an angel investment in profitable e-commerce company Caganu.
Meanwhile, Linh also claimed that notable startups under its accelerator were catching the eyes of investors, IoT solution for agriculture called Haichi and an augmented reality-based educational game company EKID STUDIO.
VSV had recently reached an agreement with Microsoft Vietnam to help its portfolio startups access technology and resources.
In Vietnam, a market where most of the startups are at the very early stage, along with VSV, that is a government initiative, there are several private acceleration projects, including HATCH! VENTURES, 1337 Ventures, CLAS Expara Accelerator and the newly launched Vietnam Innovative Startup Accelerator, to help young teams be investment-ready.