The reason why FDI inflows still poured into Vietnamese Startup during the Covid-19 period
Limiting travel has slowed FDI inflows into Vietnam, but VC funds still consider this as the top priority market in the region.
Controlling the disease well while the rest of Southeast Asia is still in crisis gives Vietnam a great advantage. In the first half of 2020, investment capital decreased 22% compared to the same period last year, but there were signs of recovery in the second half of the year.
According to a report by Do Ventures, out of 6 major economies in Southeast Asia, Vietnamese companies accounted for 16% of the total committed investment amount in the past time, ranking third and only behind Singapore (37%). and Indonesia (30%).
According to e27, many Vietnamese startups still successfully raise capital in Covid-19 shows that investment funds put their trust in the business model, the creativity and potential of domestic startups.
Loship successfully raised a bridge by Vulpes Investment Management (Singapore), DAAL Ventures (Saudi Arabia) and Wealth Well. “If you have a good company, good product suitable for the market and good growth, you can raise capital even in a volatile context,” said Nguyen Hoang Trung, CEO of Loship.
Loship CEO admits the difficulty to convince investors in times of crisis. “We changed our fundraising plans completely. Instead of calling big rounds, we split them into small deals, ”he said, revealing all of the fundraising operations done online via Zoom.
With large deals, investors are more cautious and want to appraise investment through face-to-face meetings. Therefore, investment delay is highly likely to occur. Breaking up their investments also makes it easier for them to make decisions.
Similar to Loship, Momo’s recent Series D fundraising also took place online. Momo Board of Directors revealed that this is also the only time the company has raised capital without going anywhere when the whole process is taking place on digital platforms. The amount is not disclosed, but according to Bloomberg, the capital Momo calls in Series D is worth up to $ 100 million.
Wee Digital, a Vietnamese fintech startup, has also successfully raised 7-digit capital from Korean venture capital firm InterVest and shareholder VinaCapital Ventures. Similarly, e-commerce solutions company OnPoint received $ 8 million from Korean, Japanese and Vietnamese investors in Series A.
Talking about the investment potential of the Vietnamese market, Field Pickering, Head of Venture Capital at Vulpes Investment Management, VCs that invested in Loship said: “We see Vietnam as the most attractive market in Southeast Asia. in the coming years. Investing in Loship is a reasonable move. They have more than 100,000 shipments per day and have a young, energetic team ”.
Page e27 stated that although there are still many difficulties and changes, Vietnamese startups will have many opportunities in 2021 with support from the Government, new investment rounds and positive prospects.
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