History

Following the implementation of major economic reforms in 1986, Vietnam’s economy began its rise. By the early 2000s, GDP growth was averaging 8% and higher. Recognizing the enormous potential technology held for its economic development, the Government prioritized tax breaks and other favorable conditions for software parks. Internet use was growing rapidly, creating clear opportunities for young companies to emerge and capture this burgeoning trend.

As one of Vietnam’s leading investment management companies, VinaCapital sought to participate in this growth by establishing DFJ VinaCapital in partnership with Draper Fisher Jurvetson, the renowned Silicon Valley venture capital firm, in 2007. Fund 1 was one of the first local venture investors, targeting early-stage companies in the growing technology, media, and telecommunication spaces.

• 3.7x

  MOIC

• 17.2%

  IRR

Fast forward eleven years from the launch of DFJV, and digitalization in Vietnam had continued its strong growth momentum from the late 2000s through the 2010s. Vietnamese young people fully embraced mobile phones, with a 131% penetration rate, and they increasingly used them to access the internet, accounting for mor than one-third of online traffic. The 2010s also marked the arrival of social media in Vietnam, which became a growth engine for consumer-centric businesses, with nearly half of the population active social media users. Technological advances, as well as a fast-growing middle class, induced a seismic shift within traditional sectors, notably e-commerce and financial services.

VinaCapital Ventures, the venture capital investment platform of VinaCapital Group focused on tech start-ups in Vietnam and Southeast Asia, was launched in 2018 as a strategic partnership with Mirae Asset and Naver. Fund 2’s core investment thesis is centered around value creation by utilizing tech-enabled solutions to resolve inefficiencies that have long existed in traditional sectors.

• 18

  Portfolio Companies

Today, Vietnam’s economic growth continues to rank among the world’s strongest, bolstered by a young, tech savvy population, robust foreign investment, rapid urbanization, and a stable, business-friendly government. Digitalization is contributing to that growth, and that is only set to increase, creating boundless opportunities for start-ups with solutions that can address needs in Vietnam and who can scale those solutions to markets in the region and beyond. Vietnam’s potential for strong growth has not gone unnoticed: in 2021, at the height of the pandemic, a record USD 1.4 billion in venture capital funding was invested in 165 deals by both domestic and international investors.

Seeing the need for growth-stage capital in Vietnam, VinaCapital Ventures Growth Fund is expected to launch in 2024 with a primary focus on providing growth capital for promising start-ups to achieve new breakthroughs and meet the demands of Vietnam’s digital economy. Fund 3’s strategy is to invest in leading, asset-light digital technology companies that are providing unique solutions to industry pain points as well as creating an impact at scale across growth markets. We aim to partner with international investors as their local co-investor, leveraging our deep knowledge and extensive network in Vietnam to scale promising start-ups and support them to become leaders in their sectors.

• USD 100M+

  Fund Size

• USD 3 – 10M

  Ticket sizes