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DIGITaL BIZ

fruit directly to consumers, while Palexy is a Startups like VNG, Vietnamese startups will quickly close the
computer vision and AI tech company that VNPay, MoMo, and Tiki gap with Singapore and Indonesia.”
offers advanced in-store customer analytics are proving they are as
for physical retailers. And Manabie is an Be more attractive
edtech startup offering a unique operating powerful as their Indonesian With attention from both local and foreign
model that merges online and offline learning counterparts, with investors, Vietnamese startups have more
to maximize the efficiency of online-based Vietnamese entrepreneurs opportunities to raise fresh funding to scale
education. Do Ventures will continue to focus now showing that they can up their presence and strive to become uni-
on tech startups with innovative ideas that build strong regional corns. Ms. Vy emphasized that Do Ventures’
can serve the population and add value to companies and compete with philosophy is “grow by doing”. This means it
society. It is focusing on emerging sectors those like Grab, Go Jek, and seeks entrepreneurs who are willing to do
such as education, social commerce, and SaaS more, make the right decisions, and outpace
(Software as a service). Traveloka.” the competition. As Vietnam is experiencing
Meanwhile, FEBE Ventures’ investment a critical period where the key components
strategy is to take Vietnamese startups to MR. OLIVIER RAUSSIN, of a strong digital economy are beginning to
Southeast Asia and vice-versa. In Vietnam, it Managing Partner of FEBE Ventures take shape, tech startups should not miss
focuses on untapped, high-growth, and prob- this opportunity to roll out meaningful prod-
lem-specific industries. The startups it has ucts that can add value for customers.
invested in in Vietnam operate within various Meanwhile, Mr. Chow said that the first
sectors: financials (Nano), education (Clevai), thing to do is be well-equipped with the nec-
real estate (Propzy), and healthcare (POC). It essary knowledge on the startup model that
has already closed two investments in 2021 that Vietnam remains a popular spot for matches the idea and scale of deployment.
and is closing a third, and aims to invest in investment compared to elsewhere in the Second is acquiring soft skills such as managing
ten or so startups each year. region due to it quickly recovering from and communicating and persuading investors.
Another venture fund, Nextrans, which Covid-19 thanks to the Government’s efforts. “Many startups, unfortunately, can’t stay in
targets early-stage startups, is planning to The pandemic has given rise to now-essential the game long because the founding team
invest in later-stage Vietnamese firms to tap sectors, including education, healthcare, and only focused on professional development
into business growth. The South Korean fund enterprise solutions. Along with already- and forgot management skills that allow for
is scouting for startups with a valuation of thriving industries like e-commerce, on- talent retention, which is particularly impor-
$10 million or more. demand delivery, and fintech, these sectors tant,” he added. “Last but not least is alertness;
will prosper during these unprecedented alertness when valuing oneself in front of
added advantages times. As travel restrictions remain an issue investors, and alertness in looking at the prod-
FEBE Ventures is positive about the outlook that may hinder decision-making, later-stage uct objectively and constantly improving it.”
for Vietnam’s startup scene in the region. investments will continue to be limited. Of a similar mind, FEBE Ventures’ Mr.
Indonesia, for example, is 2.7-times larger Ms. Le Hoang Uyen Vy, General Partner of Raussin highlighted that the most successful
than Vietnam population-wise and double in Do Ventures, pointed out that Vietnam is at a companies are run by visionary and mission-
terms of GDP per capita, so holds an advantage tipping point in breeding the next wave of driven teams. Running a startup is hard, and
in the foundations needed for startups to giant startups thanks to a sufficiently-large even harder when it is in Vietnam. Hence, the
grow. But Vietnam is moving quickly and the internet user base. Its pattern of growth is ones that can endure the challenges are the
question is not whether it will catch up but similar to that of Indonesia. “The 2009-2012 ambitious problem solvers who stop at nothing
when it will. Vietnam is the leading challenger period witnessed the emergence of Indonesian to come up with meaningful solutions to their
in the region, and by 2025 is forecast to surpass unicorns like Tokopedia, Bukalapak, Gojek, world. So often, unicorn status is a badge for
Indonesia in terms of GDP per capita. and Traveloka, and at the end of that period their accomplishments in resolving the biggest,
Mr. Olivier Raussin, Managing Partner of the number of internet users in Indonesia was most important and painful problems for the
FEBE Ventures, told VET that despite Vietnam’s just 63 million,” she told VET. “Coincidentally, greatest number of people, and certainly not
tech ecosystem being younger, it boasts the 64 million was the number of internet users the end goal they had in mind when starting
potential for high return and impact, not only in Vietnam in 2019, which gives rise to specu- their entrepreneurial journey. “If it’s a Viet-
financially but also in terms of the legacy lation that we are hitting the same inflection nam-unique problem, then the company solving
investors can have in the market. “From an point as Indonesia seven years ago and now it has a ceiling on potential,” he said. “But if
investor’s perspective, it is about the process stand ready for the birth of new unicorns.” it’s a product or service that can effectively be
of setting their seed as builders and creating a Mr. Lim Boon Chow, Coordinator of the used across the world, such as agriculture,
positive influence on the ecosystem from the NINJA Accelerator in Ho Chi Minh City, said climate change, gaming, etc., then the company
early days,” he said. “Startups like VNG, VNPay, that Series A and Series B funding will attract will not only become scalable but also global.”
MoMo, and Tiki are proving they are as pow- many investors, as given the economic situa- To be a successful and sustainable company
erful as their Indonesian counterparts, with tion post-Covid-19, the “sharks” will pay moving towards being a unicorn, founders
Vietnamese entrepreneurs now showing that greater attention to actual data to see how should initially select an industry they love
they can build strong regional companies and businesses allocate their capital and how they and are passionate about that has a vital, press-
compete with those like Grab, Go Jek, and operate. “They will not invest in vain; each ing problem that needs to be solved. “It is also
Traveloka. We believe that Vietnamese startups of their decisions has to be carefully considered crucial to recruit top talent and create a good
will improve, as they have a deep talent pool to ensure the startup in which they are invest- company culture in building for the long run,”
and a good education system that is STEM- ing can become a high-value business he emphasized. “Founders should also be
focused, which constitutes the fundamental machine,” he added. “Vietnamese startups selective with investors, focusing only on value-
building blocks for future quality startups.” are gradually shaping the digital economy, added investors. Ultimately, the startup must
In a similar vein, a recent survey by Do while the workforce and consumers are be resilient, working hard for over 10-15 years
Ventures on 50 active regional funds noted increasingly knowledgeable and tech-savvy. to achieve significant outcomes.” %

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