19:26 (GMT +7) - Friday 14/12/2018

Business

Lotte Accelerator to pour $1mn into Vietnamese startups

Released at: 14:18, 31/10/2017

Lotte Accelerator to pour $1mn into Vietnamese startups

Photo: VSV

Strategic cooperation between investor and Vietnam Silicon Valley Accelerator to promote venture capital in Vietnam.

by Hong Nhung

Lotte Accelerator has recently announced it will partner with Vietnam Silicon Valley Accelerator (VSVA) with the goal of making Vietnam become a technologically advanced country and a potential market for venture capital. The partnership also marked the establishment of Vietnam’s first venture capital fund dedicated to startups in the early stages, which it hopes will become a powerful catalyst for the venture capital market in the country.

This is also an opportunity for investors to learn about the potential of 12 startups selected by VSVA and Lotte Accelerator after an evaluation process of more than 100 projects.

Vietnam has been an attractive destination for investors for some time, with more than 100,000 enterprises established in 2016 and over $25.48 billion in foreign direct investment (FDI) so far this year.

The Prime Minister has issued Decision No. 844 on approving a scheme for “Support for Innovation and the Startup Ecosystem to 2025”, which aims to build a vibrant entrepreneurial ecosystem and a sustainable venture capital market as a platform to accelerate the application of innovative technology at enterprises.

Determining Vietnam as a market of potential, the Lotte Group, one of South Korea’s five largest groups, entered Vietnam in 1998 with its fast food chain Lotteira. It now has 12 subsidiaries in many fields and deeply understands the importance of startups for a business and the economy as a whole.

Lotte Accelerator was established in 2016 with capital of $15 million and has developed a strategy to support startups in Vietnam with the “Lotte Accelerator Awards 2016”.

It has invested in about 50 startups to date, 60 per cent of which have succeeded in attracting follow-up investment. It recently added venture capital capabilities and plans to raise more than $50 million for investment in small and medium-sized enterprises (SMEs).

VSVA is the first business promotion organization established in Vietnam based on valuable research from the Vietnam Silicon Valley Scheme, the first Vietnamese Government project to directly support startups. During its nearly four years of operations, VSVA has maintained a leading position in providing seed capital and training programs for startups in Vietnam.

Its portfolio includes 50 companies, with a successful investment rate of 38 per cent. Many startups graduating from the program have successfully called for the next round of investment with a multi-million-dollar valuation, such as TechElite, Lozi, SchoolBus, and Ship60.

VSVA and Lotte Accelerator also expect to create a new corridor for domestic and foreign corporations to invest in startups in Vietnam. 

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