33 venture capital firms spanning South Korea, Japan, Singapore, Indonesia, and Vietnam have pledged over US$800 million to support Vietnam’s startup ecosystem over the next three to five years.
The pledge-signing ceremony was held at the Vietnam Venture Summit 2020, organized as part of The Vietnam Tech and Startup Week in Hanoi.
The VC firms who pledged investments include VinaCapital Ventures, Do Ventures, Nextrans, ThinkZone, NextTech, VietCapital Ventures, CyberAgent Ventures, Smilegate Investment, FEBE Ventures, Genesia Ventures, Monk’s Hill Ventures, Vertex Holdings, 500 Startups, and Quest Ventures, among others.
As per a press statement, the commitment marks the return of uptake in investments within the Vietnamese startup ecosystem.
According to an industry report by Do Ventures, US$861 million was invested in 123 deals within Vietnam, more than double the number in 2018. However, the pandemic put an end to this increase.
Investment proceeds in the first half of 2020 decreased by 22 percent, from US$284 million in the same period last year to US$222 million, due to travel restrictions and uncertainties in global financial markets.
Therefore, the US$800 million pledged should result in resumption in increased investments into Vietnam.