The Top VC’s In Vietnam – 500 Startups – Supporting Vietnam’s Next Great Startups

500 Startups is a global seed stage investing firm that usually invests in Internet-based companies. 500 Startups Vietnam is their fund that is dedicated to investing in Vietnamese startups as well as companies heavily involved in the country’s economy. 

500 Startups -About The Company

Founded in March 2016 by Binh Tran and Eddie Thai, 500 Startups Vietnam is the fund established and run by the Global Investing firm 500 Startups, committed to investing in startups operating within the Vietnamese Market. The firm’s focus is on Internet-based entities, often investing heavily in firms that disrupt traditional fields with the adaptation of Technology. This spans FinTech, AgTech, EdTech, Family oriented online companies, Ecommerce, Healthcare, Productivity, SMBs and other services. 

The Criteria 

As a tech-focused startup, the company evaluates their potential benefactors by studying its idea, their business model and their operations. This involves the team itself, the quality of their product, the deal terms, the market and the popularity and growth of the firm. 

They identify the best firms using these metrics and invest heavily during the seed stage and early stages, allowing these budding enterprises to grow by providing capital, mentorship, access to tech and top tier solutions for management and operations. However, 500 Startups are vertical agnostic and invest in potential benefactors during any growth phase. 

Fundraising

As an emerging market for tech-based companies, Vietnam requires unique attention. 500 Startups Vietnam dedicated itself to providing this and support to Vietnamese tech startups and has pledged the fund valued at $14 Million for the same. This fund was announced in November 2018 and met this target during their only fundraising campaign Fund 1.

The funding goes to Vietnamese startups and developing infrastructure, as the startup ecosystem needs a lot of improvement for these companies to thrive. It provides all companies in the region with the foundations required to scale and compete with the rest of the world, while simultaneously helping the benefactors of the fund itself.

Investments

The firm’s $14 million funds overshot its initial target of $10 million by 14%, which has gone to many companies over the years since. Their significant investments in Vietnam were in the following startups. 

On May 11, 2021, they announced their support for Axie Infinity, a Vietnamese fantasy battle Game that allows players to raise and battle creatures called Axies, while simultaneously making profits as Cryptocurrency. Their Series A Funding rounds raised $7.5 Million from 500 Startups Vietnam and others, and continue to be a hit among gamers in the Southeast Asian region. 

They also funded Whitemark, a Vietnamese high tech real estate platform that focuses on luxury residences, villas, penthouses and resort projects. An undisclosed amount of seed funding was raised by the company, backed by the fund. 

Conclusion

As an emerging economy that has faced significant challenges in the recent past, Vietnam has infinite potential for the future. With the proper focus and backing, the startup climate there has a large scope to grow and permeate the country, catching up to the high growth exhibited by the rest of Southeast Asia. A global entity like 500 Startups dedicating targeted funds and efforts to the region gives it the attention and the support that it needs to achieve its true potential to be a major player on the regional as well as the global stage.

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