3 Advantages of Taking Corporate Venture Capital – Top 6 Venture Capital Firms in Viet Nam
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Whether you’re reading an Vietcetera post, catching an Uber or riding a motorbike of DATBIKE, you use services and products from venture capital-backed companies every day. Yet, the average person is unlikely to know much, if anything, about this world. As an investor, or startups, let’s explore with primus about the advantages that venture capital funds bring, and the top 6 venture companies in Vietnam.
What is venture capital?
Venture capital is a form of financing where capital is invested into a company, usually a startup or small business, in exchange for equity in the company. It is also a major subset of a much larger, complex part of the financial landscape known as the private markets.
Venture capital firms are a type of investment firm that fund and mentor startups or other young, often tech-focused companies. Similar to private equity (PE) firms, VC firms use capital raised from limited partners to invest in promising private companies. Unlike PE firms, VC firms often take a minority stake—50% ownership or less—when they invest in companies. A firm’s array of companies is called its portfolio, and the businesses themselves, portfolio companies.
Do Ventures – One of Top 6 VC Firm in Viet Nam
There are a few of the key advantages, which make corporate venture capitalists strong partners in a startup’s syndicate of investors.
- Built-In Distribution Networks
This is where large-scale CVCs offer a valuable advantage over traditional venture capital firms. Small startups looking to partner with CVCs should look for companies that will allow them to immediately tap into their massive customer base and where the CVC will serve as the trusted champion that forges those initial introductions. For CVCs that are part of international institutions, these crucial connections aren’t only personal (and personalized) — they’re also global. In addition, if they have access to the CVC’s large team of enterprise salespeople and advocates as part of their extended startup team, startups partnering with CVCs can expect a huge leg up when kicking off new distribution efforts.
- Corporate Symbiosis
Because a CVC represents a larger organization with its own unique set of solutions, they’re bringing a different value proposition than the pocketbooks and Rolodexes of traditional VCs. As a result, startups receiving CVC investment typically also gain access to a one-stop shop for a number of utilities that can help their business grow even more effectively.
From banks providing financial products to tech firms offering IT solutions, having many of the portfolio company’s new-growth needs under a CVC’s roof can help streamline its expansion while strengthening the overall investment relationship.
- Experienced leadership and advice
Investors provide more than funding. They can do everything from letting you peek at their impressive Rolodexes so you can make invaluable connections to getting them to promote your startup concept to the world.
Lots of founders become partners at VC firms after they leave their companies. Their experience in scaling a business, solving day-to-day problems, and monitoring financial performance makes them an invaluable resource for new founders.
Experienced investors often serve as strategic advisors to their portfolio companies’ management teams. This can help mitigate financial risk. Having an advisor to help out when a problem raises its ugly head can vastly improve the odds of making a sound decision.
Top 6 VC Firms in Viet Nam
In a truly collaborative partnership, the financial aspect is just one part of an ecosystem where each side can actively work to benefit the other. Corporations are certainly taking note; according to Global Corporate Venturing Analytics data (via fDi Intelligence), more and more have entered the field of venture funding in recent years, and I believe they realize that the innovation found in those investments will help them evolve for the future. That’s great news for founding teams thinking about the next step in their journey toward growth, as they could discover an even broader, mutually vested interest in these unique CVC partnerships.
According to FORBES
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