One of the most prominent forms of investment today in the market is definitely venture capital funds. As the name suggests, people can reap huge profits, but the risk is also relatively high.
Today's article, nganhangnongthon will answer What is a venture capital fund? The largest venture capital funds in Vietnam and the world. Let's find out for a better overview of this popular type of investment.
What is a venture capital fund?
According to the provisions of Clause 1, Article 19 of Decree 99/2003/ND-CP: “Venture investment fund is a financial institution established in accordance with the law to invest in public incubation activities. high-tech and high-tech enterprises. Venture capital funds operate on the basis of the Fund's Charter of Organization and Operation.
More specifically, a venture capital fund is a form in which investors pour capital into newly established and unlisted companies. These companies have positive growth rates and potential for the future. However, this type of investment will come with many great risks.
Investors can participate in any entry stage of the business. Usually, venture capitalists will invest for the long term and hold a key role in the business's Executive Board/Board of Directors.
Participants in venture capital funds are very diverse, such as:
- Wealthy individual investor.
- Investors are institutions like banks.
In Vietnam, venture capital funds play a very important role. It has a great impact on the domestic economy because it creates strong capital and development conditions for startups and the startup ecosystem.
To summarize, the function of an investment fund would be:
- Mobilizing, receiving and managing legal investment capital from domestic and foreign organizations, enterprises and individuals.
- Invest in high-tech incubation activities, high-tech enterprises and benefit from investment activities.
The largest venture capital funds in Vietnam and the world
To know which venture capital funds are suitable for your conditions and strategies, please refer to the following content.
Venture capital fund Vina Capital Venture
Vina Capital Venture was established in 2003, the total assets under management of the fund is nearly 1.8 USD. It is known that the fund focuses on investing in the main fields of real estate and securities.
The businesses targeted by the fund will have two outstanding characteristics:
- Proven ability.
- There is a certain success in the market.
The steps to invest capital of Vina Capital Venture fund are as follows:
Step 1: Identify the target businesses.
Step 2: Financial management consulting, investment strategy consulting, corporate governance.
Step 3: Divestment (transferring to a 3rd party, listing the target business on the stock exchanges, dissolving the business).
Therefore, when deciding to invest in Vina Capital Venture fund, everyone can rest assured. The unit gathers leading experts with in-depth understanding of the market to make strategic decisions and earn "huge" profits.
Mekong Capital Venture Fund
Mekong Capital was established and officially operated on the financial market in 2001. This is an investment fund management consulting unit specializing in unlisted equity capital in Vietnam. Mekong Capital's target is developing industries following consumer trends.
Specifically, those industries will have a fast-growing and market-leading growth rate, for example:
- Restaurant Hotel.
- Retail.
- Distribution.
- Consumer goods.
- …
Investors choose Mekong Capital for the following reasons:
+ Mekong Capital is an enterprise with a long track record of unlisted equity capital in the Vietnamese market.
+ The board of directors, a team of experts, and company employees are experienced in all fields of investment.
+ Successful investments include: Phu Nhuan Jewelry, King Mattress, Mobile World, F88, Nhat Tin Logistics, Golden Gate, Pharmacity, Traphaco, ...
When realizing Mekong Capital's achievements and great profit potential, many investors poured capital into the fund for long-term benefits.
Golden Gate Venture Fund
Golden Gate Ventures is known as a global investment fund. The unit has invested in more than 30 large companies of more than 7 countries, including Vietnam. Therefore, to investors, the name Golden Gate Ventures has become quite familiar.
The fund will target technology startups in groundbreaking fields such as:
- Exchanges.
- Ecommerce.
- Online payment.
- Mobile application.
- Software as a Service (SaaS) Platform.
In 2009, Golden Gate Ventures provided "sponsorship" to more than 50 startups and businesses. In Vietnam, there are "candidates" on that list such as Bao Kim, Appota, Lozi, Wifi pagoda, etc.
In particular, the fund's advisors are mostly in the founding team of major companies in the world such as Papal, Yelp, Sony Entertainment TV, etc.
Venture Capital Fund FPT Venture
FPT Venture is "brooding" the dream of being able to turn Vietnam into one of the economic powerhouses with a system of startups located in Israel. The fund's target is 5000 technology companies by the year 2000. This has created young entrepreneurs who understand the market and have the right strategy.
Currently, FPT Venture is targeting startups in fields such as technology, finance, mobile, etc. With FPT Venture's help, most businesses will receive strong resources in terms of technology capital and capital. both human resources.
CyberAgent Ventures Venture Capital Fund
CyberAgent Ventures is one of the top venture capital funds in the technology field with the most success in Vietnam market.
Under the guidance of Mr. Nguyen Mang Dung - shark Dzung, CyberAgent Ventures has outlined the correct strategy for affiliated startups such as: Foody, Teamobi, VMG, VNG, CleverAds,...
Currently, CyberAgent Ventures fund is targeting businesses with good growth momentum in the market, such as Tiki, Luxstay, etc. The startups targeted by CyberAgent Ventures must meet the strengths of people and technology.
Venture capital fund IDG Venture
IDG Venture Fund belongs to IDG Venture Group - USA, which invested in Vietnam in 2004. According to the latest statistics, the amount of money that IDG Venture is managing is nearly 100 million USD.
The startups that IDG Venture targets will be in technology fields or traditional companies that are tending to apply modern technology to reinvent business operations.
It can be seen that IDG Venture has played a pioneering role to start the wave of technology startups in the Vietnamese market up to the present time.
Pros and cons of venture capital funds
Any venture capital fund will have its pros and cons for the investor and the business it invests in, specifically:
Advantages of venture capital funds
+ Investors of venture funds are entitled to contribute to the equity in the business in which they invest.
+ Investors are entitled to make important decisions related to the business in which they invest.
+ Investors will earn great profits in the future when the business they invest capital in has good growth.
The investment fund contributes to creating a large capital source for small and medium startups to have the opportunity to develop and expand the business market.
Disadvantages of venture capital funds
+ Investors in venture funds will face risks. Because the businesses they invest in are small and medium-sized startups that are in the early stages of starting a business, so many unpredictable problems can happen.
+ Investors may receive losses if there is no strict management or the chosen business does not have a reasonable capital use strategy/plan.
Target businesses that venture capital funds target
Venture capital funds will conduct a survey of potential businesses in the market, the units they target will include:
- Short-term business organizations: Commercial banks, Subsidiaries,…
- Business groups have the ability to invest large capital to create a solid foundation for business activities.
- Organizations providing financial services, including groups of individuals with strong capital resources.
- Partnership companies are likely to invest large capital.
With the content just shared above, you must have understood What is a venture capital fund? The largest venture capital funds in Vietnam and the world. Follow the next articles on the website to update the latest information about potential investment funds in 2022. If you have any questions, leave a comment below, you will get a response. fast.
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