In the business or investment world, the term venture capital is very familiar. This form of investment is becoming more and more popular and becoming stronger, and since then, venture capital funds.
In this article, lamchutaichinh will summarize for you the 6 most prestigious venture capital funds in 2022. The necessary information will be fully stated to help startups get the best preparation before conducting fundraising. .
What is a venture capital fund?
Venture capital funds operate in the general way that investors or representatives of investment funds pour money into new startups. They will invest when they see the company's high growth potential, the main investment is buying shares of these companies. Startups are usually new startups and companies that have not yet entered the stock market.
When the startup commercializes its product, the venture capital funds will immediately reduce their capital. Hearing the name risky, we can already imagine somewhat the risk of this form of investment. If they lose everything, investment funds will have to accept this.
If the startup is successful, the accompanying profits and the value of shares will increase dramatically depending on the initial shares of the venture capital funds. High return with high risk is an immutable law of investment.
What is an English Venture Fund?
Venture Capital is a venture capital fund, in articles, economic information can be abbreviated as VC.
People who participate in venture capital funds are known as venture capitalists in English as Venture Capitalists.
Several types of venture capital fund portfolios
- Venture capital funds – Dragon Capital. …
- Venture capital funds – Mekong Capital. …
- Venture capital funds – IDG Ventures Vietnam (IDGVV)…
- Venture capital funds – CyberAgent Ventures (CAV)…
- Venture capital funds – DFJ VinaCapital. …
- Venture capital funds – FPT Ventures.
- Venture capital funds - VinaCapital Foundation (VCF)
Who is a venture capital investor?
Venture capitalists are often among the major longtime shareholders of limited partnerships. That will be where the partners invest together venture capital funds. These funds will be managed by a department, their task is to research the market, evaluate startups to make the best investment decisions.
After appraising a startup, a startup with good growth potential, investors will pour capital in exchange for equity. The higher the capital, the higher the ownership stake.
Investment trends of the venture capital funds The key is to find a startup with a professional team, a startup product market with great expansion potential, a unique service or product. The field that investors participate in often belongs to their own strengths.
Features of venture capital funds
- Investors do not need to make a deposit or deposit.
- An important factor that determines whether venture capitalists will invest or not is their expectation of the success of the startup in the future.
- Venture capital funds accept risks, possibly even losing their investment if the startup fails. But if the startup succeeds or even becomes a "unicorn", this is the money with the most profitable rate.
- Venture capital fund management experts will often be the ones who directly support, accompany and guide startups. They can also plan the best business strategy, step by step promoting the startup to have a foothold in the market.
Legal framework of venture capital funds in Vietnam
Up to now, in Vietnam, there is still no document regulating venture capital funds. However, venture capital funds in Vietnam must operate under the management of Vietnamese laws such as the Law on Securities or the Law on Enterprises, etc.
In terms of legislation in the field of technology business, venture capital funds are officially recognized in Decree No. 99/2003 ND-CP on promulgating regulations on technology activities issued by the Government of Vietnam. onion.
Overview of venture capital funds
Advantages
- When pouring capital into startups, investors of the funds will be able to contribute the startup's equity at a good, negotiable price.
- Investors have the right to actively implement decisions related to the startup or company they have invested in
- Investors will receive appropriate profits when the future of the startup develops well
- This is an opportunity, capital can be mobilized so that startups and businesses can develop and expand their business activities.
Limit
Venture capital funds or venture capitalists face very high risks when investing in new startups. A new business will often face thousands of different problems, which may collapse in the future.
Investors can participate in the operation of the startup, but there are many conflicting issues that may arise, especially the interests of each party.
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Top 6 most prestigious and safest venture capital funds in Vietnam
Mekong Capital
Mekong Capital was established in early 2001, becoming a consulting company to manage unlisted investment funds in Vietnam. Mekong Capital focuses on Vietnamese consumption trends.
The companies and enterprises invested by Mekong Capital have all had outstanding rapid development, continuously leading the Vietnamese consumer goods market.
Businesses that are agile, know how to grasp trends and opportunities are always given high attention by Mekong Capital.
Some famous enterprises have succeeded thanks to Mekong Capital's investment such as The Gioi Di Dong, Phu Nhuan Jewelry PNJ, Vietnam Australia International School VAS, YOLA, Pizza 4P,....
Golden Gate Venture
Golden Gate Venture has always been one of the investment funds that the startup community is aiming for. As a venture capital fund with a very large scale in the global market, in Asia alone, the fund has invested in more than 30 companies in 7 countries.
The investment taste of this fund often finds companies in diverse fields such as e-commerce, mobile applications, online payments, exchanges, ..
The fund will invest in companies with a fundraising level of USD 1-5 million in the seed round. In 2019, Golden Gate Venture poured capital into a number of Vietnamese enterprises such as Gojek, Lozi, and Appota.
Vinacapital Venture
Vinacapital Venture is a venture capital fund focusing on securities and real estate sectors. Established in 2003 and up to now the fund is managing more than 1.8 billion USD.
Vinacapital Venture's favorite taste is startups that can prove their capabilities and value in the market. Therefore, the fund often participates in the following fundraising rounds of the Startup with a huge amount of money.
If you are a new Startup and have not participated in raising capital for the first time, Vinacapital Venture will not be a wise choice.
IDG Venture
IDG Venture is an investment fund of the US IDG Group. IDG has invested in the Vietnamese market since 2004 until now.
IDG is famous for its extremely large mobilized capital, the amount of which IDG manages will reach 100 million USD in 2022. IDG is aimed at businesses and startups that apply modern technologies to innovate business activities. .
Many evaluations from IDG show that IDG will be a start-up wave for Vietnamese technology startups.
CyberAgent Ventures (CAV)
A venture capital fund quite famous by the program Shark Tank Vietnam, led by Shark Dung or full name is Nguyen Manh Dung.
The area that CAV is interested in is Technology startups, operating and developing in the 4.0 era. Services such as digital business, financial activities, and digital services are the top trends from CAV.
Some startups with great success thanks to the support from CAV can be mentioned as Foody, VNG, Teamobi, etc.
If choosing a venture capital fund for a good companion, Cyber Ventures is always the first choice. Shark Dung is famous because he always accompanies and stands beside every Startup he invests in.
FPT Ventures
A big brand, very familiar to Vietnamese people. FPT has been bringing Vietnam to the world, becoming a technology powerhouse.
FPT cooperates on a large scale with international funds, creating estimated start-up opportunities for more than 5,000 technology companies.
This venture capital fund will prioritize startups that are at the stage of preparing to bring products to market. Startups will be supported with large capital and use big data platforms from FPT such as internet, mobile and technology.
Kusto Vietnam
Kusto Viet with an investment taste is startups and businesses operating in the fields of real estate, oil, and construction materials.
One of the big businesses supported by Kusto is Coteccons. Coteccons has grown to over 250% of its initial capitalization in just 6 months.
Prosperous Vietnam Investment (PVNI)
The ability to pour capital of this fund for startups is very large from 5,000 to 300,000 USD, is an investment fund that is worth calling for capital.
As long as the startup shows them enthusiasm, passion, specialized skills and a right long-term vision, they will pour capital even though you are still in the first round of funding.
Dragon capital
Dragon Capital is one of the few venture capital funds belonging to large corporations from the UK. Currently, the fund is managing more than 1.3 billion USD for investment projects.
Dragon Capital is headquartered in the UK and also in Ho Chi Minh City, the fund's investment taste is also very diverse from technology, consumer goods or even food that the fund has cooperated with.
Conclusion
Hope investors should consider carefully when choosing one venture capital funds suitable for you. And that's all the necessary information about venture capital funds as well as a list of reputable venture capital funds for your reference. Thank you for reading the article.
The article was edited by: Lamchutaichinh.vn
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