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The proposal on policies development for building up Vietnam National Startup Ecosystem

Phan Hoàng LanNational Agency for Technology Entrepreneurship and Commercialization Development (NATEC)

Startup Ecosystem

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STARTUPSECOSYSTEM

Gov. Policies

VCFStartupCulture

Human Resources

Market

Supporting Agencies

Startups

National Startup Ecosystem Support Project

• Develop official documents and policiesrelated to innovative startup ecosystem

• Build an online portal in order to provideand centralize information and servicefor startup community.

• Raise people’s awareness about startupsand entrepreneurship by means ofcommunications and education.

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• Connect Vietnam startup ecosystem withones in the area and in the world.

• Cherry-pick and invest in severalsupporting agencies for startups, such asbusiness incubators/accelerators and/orco-working spaces.

• Encourage venture capital and ventureinvestment for startups.

1. Build an National online portal for startup communities

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Online Portal for EU Startups

• Provide information abouttechnologies, inventions,standards, qualifications, etc.related to science andtechnology.

• Information of humanresources, investors,customers, markets, etc.

• Necessary information forstartups and database.

• Information of events, news,policies for supportingstartup activities.

2. Building a startup Complex (e.g: Block 71 Singapore)

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Block71 Singapore

• Infrastructures for communities and startups,

internet service, etc.

• Provide services for startups.

• Co-working spaces for innovative startups.

• Meet-up and networking spaces for

entrepreneurs, investors, incubators,

accelerators, etc.

• Spaces for events, mentoring and/or

coaching sessions.

3. National Events for startup and technology communities (TECHFEST)

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• Annual networking events for startup and technology communities.

• Chance for connecting investor-startup.

• Experience sharing, mentor/coaching session.

• Government institutions contribute partly to organize events, in terms of finance, human resource, …

TECHFEST 2015 – The numbers

• 50 investors• Invest amount > 1M US$• 50 innovative startups• More than 1000 participants

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4. Continue phase 2 of Vietnam Silicon Valley 2016 - 2020

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Develop network of angel investors

Develop network of Venture Capital Funds

Develop incubating/accelerating

programmes

Startups

5. Capability Development and Training for Innovative Startups

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Capability Development Grant –SPRING Singapore

• Mentoring/coaching sessions and

training for business incubators and

accelerators.

• Inviting professionals and experts to

give talks.

• Provide capability development

services.

6. Develop infrastructures for Innovative startups

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Co-working spaces

Laboratory/Science Service

Advance machinery tools (3D Printer, etc.)

Technical resources (books, …)

7. Promote startup culture via means of communication

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• Via television channel• Via social media• Via official media channels

• Raise awareness• Promote showcase startups• Provide information about

startups communities.

8. Enhance networking

• Arrange supports for in-the-country and out-

of-the-country delegates.

• Network and support potential startups to be

coached in various hubs in the regions.

• Introduce and network customers and

markets.

• Support for visa and strengthen the links

between official Vietnam S&T Representative

Office in foreign countries.

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9. Encourage existed Funds for S&T development support startupscommunity

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Support for startups

10. Research and suggest government policies for the promotion of Vietnam startup ecosystem

• Official recognition and registration for venture activity, venture capital funds and venture investment.

• Developing policies for Government support initiative and follow-on private investment for innovative startups.

• Developing policies for local government institutions promoting innovative startup community.

• Introduce special tax incentives and financial benefit for startups.

• Develop supportive exiting strategy for investors, especially foreign investors.

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Existing models

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(2016 – now)(1993 – 1998)

80M$ into VC Fund

20M$ direct to Startups

(2002 – now)

ACE Startups Grant

Incubator Dev. GrantSSA Grant

SPRING SEEDS Capital

Fund of Funds

(2013 – now)

Fund of Funds(2014: invest 658M$)

Grants – no equity

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GRANTS

- S Factory: 14k US$/startup, 20-30 startups.- Seed: 30k US$/startup, 80-100 startups.- Scale: 86k US$/startup, 20-30 startups.

- Receive more than 3000 applications.- Deliver funds to more than 1100 startups.- Total value of startups through the programme is more than 475M US$.

AFTER 5 YEARS

- Suitable for achieve thecritical mass of startups.

- Suitable for immaturestartup ecosystem.

- Invest in startups in pre-seed stages to developcommercialised products.

- Promote startup spiritand culture.

Matching funding with Angel Investors/Startups

ACE Startups GrantMatch ratio 7:3 with startups

(max 50k$)

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Capability Development Grant

(CDG)Invest in capability

development

• Accumulate the necessary capital for startups in seed stage.

• Risk sharing with angel investors and encourage angel investments.

• Enhance and strengthen business linkages for startups.

• Develop critical mass of startupsas a potential market for business incubators/accelerators and/or VC funds.

Matching funds for business incubators/accelerators (BI/BA)

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- 90k$ for each startups through 9verified BI/BA, private investmentrange from 9k$ - 500k$

Incubator Development Programme

Match ratio 7:3 for mentorship programme, education activity of the BI

Sector Specific Accelerator Programme

Match ratio 1:1 for sector specific BATotal 70M$

- Chosen startups by verified BI/BA are already being assessed for potential growth.

- Is a mechanism for developing and expanding the activity of BI/BA as well as numbers of BI/BA in the ecosystem.

- Matching fund mechanism is a leverage tool for BI/BA to elevate number of invested startups.

Matching funds with Venture Capital Funds (VCF)

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SPRING SEEDS Capital

Match ratio 1:1 in deals by VCF, max

2M$/deal.

80M$, invest in 10 VCFs, matching 40%

amount.

- Reduce the risk of government’s money.

- There is no need for assessment panel in the GVCF, all assessments are done by VCFs.

- Matching fund mechanism is suitable for leveraging the Government funding.

- Build trust for external VCFs coming into the market.

- Return of investments by means of interests.

THANK YOU

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