Nextrans Sets Sights on Vietnam: A $50 Million Fund for Tech Startups
In an exciting development for the Vietnamese tech landscape, South Korean venture capital firm Nextrans is preparing to launch a $50 million fund specifically targeting Vietnamese startups this coming November. This recent move, as reported by DealStreetAsia, underscores the firm’s commitment to fostering innovation and the startup ecosystem in Vietnam.
Nextrans’ engagement in Vietnam is not new; since entering the market in 2015, the firm has made significant strides in supporting the growth of early-stage startups. Presently, Nextrans boasts a diverse portfolio of 32 Vietnamese startups, featuring well-known names like e-commerce platform Tiki and pharmaceutical distribution service BuyMed. Other backed companies include TopCV and Infina, showcasing the firm’s broad reach across various sectors.
With this upcoming fund, Nextrans aims to tap further into the burgeoning tech startup ecosystem of Vietnam, which has been recognized as one of the fastest-growing in Southeast Asia. Le Han Tue Lam, Nextrans’ general manager, revealed that the firm aims for the first closing of the fund in December, planning to allocate cheque sizes of up to $3 million per startup. This investment signifies a deeper commitment to harnessing Vietnam’s potential as a startup hub.
The new fund will focus on opportunities in both emerging sectors, such as wealthtech, proptech, software as a service (SaaS), electric vehicles (EV), and fintech, as well as sustainable growth areas, including food waste management and food safety solutions. This comprehensive approach demonstrates Nextrans’ strategic vision to nurture various tech niches, ensuring a diverse growth portfolio.
Investment is just one aspect of Nextrans’ contribution to the Vietnamese ecosystem. The firm recently launched the third batch of its VC Foundation Program, a ten-week initiative designed to accelerate the development of Vietnam’s startup ecosystem. This program aims to elevate local startups to compete on a larger scale and enhance their professional capabilities, aligning with top regional players.
Last year, Nextrans released its Vietnam Industry Report, highlighting the resilience and growth of the local startup ecosystem amid pandemic challenges. The report revealed that investment in Vietnamese startups surged to $1.3 billion, representing more than a twofold increase from 2020. The fintech sector led the charge, boasting two significant deals that exceeded $100 million.
Vietnam’s startup market has become a competitive ground for over 200 venture capital funds, with its high growth potential drawing increasing attention. Positioned as a “rising star” in Southeast Asia, Vietnam is rapidly closing the gap with established startup hubs like Singapore and Indonesia.
The country benefits from a youthful, educated population, widespread internet access, and robust support from the government. This combination of factors ensures that Vietnam will maintain its attractiveness to venture capitalists eager to nurture early-stage startups into leading tech companies.