“If you don’t create the things that will kill your company, someone else will!” The world today is not only flat but also fast, in which information has big impact on company’s success. To be relevant, company should partner with startups to innovate the business. Vietnamese startup ecosystem is still in forming stage, but this ecosystem has made great progress comparing to the previous years.
|Triip, which is a tourism startup, has raised $ 500,000 in funding round from Gobi Partners-the venture capital funds. Toong – coworking space announced funding over $ 1 million from the investor after seven months of operation. Perhaps hottest deal in 2016 was mobile wallet by Momo received investments of up to US $ 28 million investment from Standard Chartered Private Equity (SCPE) and a global investment bank Goldman Sachs. Most recently is Vntrip.vn – a Vietnam travel startup, has just received an investment up to $ 3 million from foreign investment funds led by F&H. OnOnPay has also landed an $800,000 pre-Series A funding led by Shanghai-headquartered VC firm Gobi Partners. Another Positive sign for start-up community is that the 500 Startups fund – an investment fund of America recently announced a decision to set up its own small fund worth $ 10 million, provide capital injections for about 100-150 Vietnam startup projects.|
Corporate Ventures Capital (CVC) is a trend with millions of dollar funding for startups. There are big corporations in Healthcare, banking, automotive sectors… which invested heavily in startups and startup activities.
Corporate Venture Capital will be key trend in the future
How big corporation innovate?
Why do CVC become a key trend in the future and how can big corporations partner with startups? Bimodal IT of Gartner will be a solution for questions above.
Bimodal – Comparing Mode 1 & 2 (Source: Gartner)
Bimodal is the practice of managing two separate but coherent styles of work: one focused on predictability; the other on exploration. Mode 1 is optimized for areas that are more predictable and well-understood. It focuses on exploiting what is known, while renovating the legacy environment into a state that is fit for a digital world. Mode 2 is exploratory, experimenting to solve new problems and optimized for areas of uncertainty. By 2017, Gartner says 75% of companies in information technology (IT) will have a bimodal IT.
Bimodal IT is formed in various ways, one of these ways is to cooperate with the startup community. FPT Ventures’s mission is to invest, provide facilities, human resources, to help startups in growth hacking, scaling, achieving key milestones.
There are 450 applications submitted to FPT Ventures. Hundreds of potential founders have been interviewed and evaluated their pitch decks. FPT Ventures also participated in big seminars, events such as Techfest hosted by Vietnam Ministry of Science and Technology, Echelon, Hatch Fair, Demo Day of the accelerators such as VSV, Expara, Topica, Founder Institute. Especially, FPT Ventures co-hosted the Vietnam startup entrepreneurship initiative kick-off in March 2016 with the attendance of Deputy Prime Minister Vu Duc Dam. This Vietnamese fund also collaborated with the Embassy of Israel and People’s Committee of Hanoi to organize the seminar “Building startup ecosystem in Vietnam – Lesson from Israel”, chaired by deputy Prime Minister Vuong Dinh Hue.
FPT Ventures has invested in two notable startups, one is ELSA which is growing fast in education industry (Elsa is a smart application to learn English as a native speaker). The other one is Adtrue, which was acquired by FPT- is a programmatic advertising startup. Both startups have the global DNA startup from day 0. In addtion, FPT Ventures facilitates connecting and supporting startups in its portfolio: ANTS, CyRadar.
As for Accelerator, in Vietnam Entrepreneurship Initiatives Kick-off event, FPT & Dragon Capital signed a cooperation agreement on the establishment of Vietnam Innovative Startup Accelerator- VIISA. Currently, there are 2 big partners already joined this program, which are Hanwa – large Korean insurance company and BIDV – one of the largest banks in Vietnam. By January 2017, 10 startups will be selected out of more than 150 applications submitted. These startups will receive 15,000 USD, undergo online training courses in pre-accelerator and officially join the accelerators afterward. First-batch startup will also be supported by prestigious mentors, following high-quality curriculum and present products/solutions for investors in Demo Day, which is expected to organized in April 2017. More information on http://viisa.vn
Tran Huu Duc, Hoang Nam Le – Viisa
(Published on the FPT Technology Magazine, FPT TechInsight No.1)