As Vietnam’s tech sector grows, foreign players are increasingly looking to get in on the action. One of the latest companies to do so is South Korean investment firm Nextrans, which is launching a $50 million fund focused on the country.
The new fund, which is set to launch this month, will target early-stage startups in a variety of sectors including property tech, fintech and electric vehicles.
The company says it is also increasingly looking at sustainable growth areas where it sees potential for strong returns. In a Facebook post, Nextrans said these include food waste and food safety solutions.
Nextrans no stranger to Vietnam
With the new fund, Nextrans is looking to further capitalize on Vietnam’s booming tech sector. So far, it has invested in startups with an investment fund of up to $2 million. With the new fund, they are looking to invest as much as $3 million in a Vietnam-based startup.
Nextrans is no stranger to Vietnam. The company started investing in Vietnamese startups in 2015. It currently has a portfolio of 32 companies in the country, including TopCV, BuyMed, Base.vn, Infina, and Citics.
In 2020, Nextrans established the first Venture Capital course in the country, the Venture Capital Foundation Program (VCFP). VCFP has produced two batches of founders, with the third batch set to start soon.
Nextrans reports that the course has garnered a community of 40 founders and, after opening, received more than 150 applications from across the country.
‘Rising star’ in Southeast Asia
“More startups in Southeast Asia will emerge by the end of the decade, with the annual number of initial public offerings (IPOs) in the region expected to surpass 300,” Nextrans highlighted in its industry report.
“Among them, Vietnam is considered a ‘rising star’ of the region and will become the country with the third largest startup ecosystem in Southeast Asia in 2022 with more investment funds. Venture capitalists in the region are committed to pouring early-stage capital into local startups.”