Lotte Accelerator to expand investment in Vietnamese startups this year

Photo from Vietnam Silicon Valley Accelerator

South Korean startup booster Lotte Accelerator will expand and diversify its investment capital in Vietnam’s startup ecosystem this year, said Jin Sung Rhee, CEO of Lotte Accelerator at Demo Day event held by Vietnam Silicon Valley (VSV) on February 1.

“We have completed our commitment to invest $1 million in Vietnam’s startup (ecosystem) through a partnership with VSV called Vietnam Silicon Valley Accelerator (VSVA),” Rhee said, adding that ten potential startups have been selected for investment to perfect their business models so far.

Rhee emphasized that the fund will look at sectors such as technology, finance, and retail as it plans to diversify its investments.

Lotte entered Vietnam in 1998 and has since then expanded in the country with 12 subsidiaries. It started to explore the opportunities in this Southeast Asian nation’s startup space in 2016 with the “Lotte Accelerator Awards”.

Founded in 2015, the South Korean chaebol launched its $85 million Lotte Accelerator Fund I. It invests 20 million to 50 million Korean won ($17,700-44,200) in each startup.

Established in 2013, Vietnam’s government-backed accelerator VSV has incubated 52 startups in Vietnam so far.

Thanks to $1 million investment from Lotte Accelerator, it has doubled its pre-seed funding for each portfolio startup from $10,000 to $20,000, while keeping its holding rate unchanged at 10 per cent.

The new funding scheme is expected to scale up more quality startups, encourage young companies to operate in a more professional manner while reducing risks for them.

According to an unofficial statistic, Vietnam, a 90 million people country, has only 3,000 startups. “Private investment for Vietnam’s startup remains limited,” Thach Le Anh, Principal of VSV told the portal in an interaction. “In some other advanced countries in the region, 80 per cent of funds for startup research comes from private investment flow but in Vietnam, the number is very small.”

In 2016, VSV and US technology giant Microsoft entered a partnership to accelerate the necessary support as well as tech products and services for the startup ecosystem in Vietnam.

Also Read:

Lotte Accelerator to invest $1m into Vietnamese startups

Microsoft, Vietnam Silicon Valley partner to support startups

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.