Ho Chi Minh City moves to establish venture capital fund for startups

On March 10, Ho Chi Minh City Department of Science and Technology met with Kairous Capital to focus on venture capital fund fashions and potential collaboration in drawing worldwide capital for native startups.

The assembly was attended by Tran Trong Tuyen, deputy director of the division, and Joseph Lee, managing associate of Kairous Capital, together with representatives from related events.

Photo: Ho Chi Minh City Department of Science and Technology

During the assembly, Lee expressed Kairous Capital’s want to be taught extra in regards to the funding surroundings and the working mannequin of venture capital funds in Vietnam, notably the funding mechanisms by funds supporting modern startups, authorities insurance policies supporting startups, and the orientations and objectives for creating Vietnam’s innovation ecosystem over the subsequent 5–10 years.

Tuyen shared Ho Chi Minh City Department of Science and Technology’s imaginative and prescient for establishing the Ho Chi Minh City Venture Capital Fund, a brand new monetary instrument geared toward selling the town’s innovation ecosystem. Accordingly, the town at the moment possesses vital benefits when it comes to scientific and technological staff, with practically 100 universities and coaching establishments, with quite a few college students and researchers, making a basis for the event of modern startups.

“Many startups still face difficulties in the early stages due to insufficient access to funding from venture capital funds. The establishment of the city’s Venture Capital Fund is expected to support technology projects and innovative startups in overcoming the initial stages, while also attracting additional investment from the private sector,” Tuyen mentioned.

The fund is anticipated to be organised below a public-private partnership mannequin, by which the non-public sector contributes roughly 60 per cent of the constitution capital and the state price range contributes about 40 per cent. The state capital is just allotted after the non-public sector completes its capital contribution, making certain market rules. The fund will function in accordance to market mechanisms, having a board of administrators and funding council that features participation from traders.

Regarding funding orientation, the fund will give attention to supporting modern startups, sci-tech enterprises, and digital expertise corporations legally established in Vietnam with modern merchandise and a dedication to working in Ho Chi Minh City for no less than 5 years. Priority areas embody microchips and semiconductors (20-25 per cent); digital applied sciences reminiscent of AI, massive information, and blockchain (25-30 per cent); biotech and medtech (15-20 per cent); inexperienced expertise and new supplies (10-15 per cent); and automation and robotics (10-15 per cent).

During the assembly, Lee shared experiences from China and Malaysia in creating venture capital ecosystems, noting the position of state-owned funds in attracting expertise, startups, and funding capital. The two sides additionally mentioned fund operations within the area and the elements worldwide traders contemplate when taking part in native funding funds.

“The city is implementing a scheme to establish a venture capital fund with the aim of mobilising financial resources and attracting the support of international investors and organisations,” Tuyen mentioned. “Through cooperation and shared experience with international investment funds, we expect the fund to operate effectively, contributing to the selection and support of promising technology projects and startups for future development.”

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