Swissep 25 - investment landscape 2025 - Dung Genesia

Short Summary:

Dung Genesia, a Japanese venture capital firm operating in Vietnam for six years, presented their approach to fostering Vietnam's startup ecosystem. They highlighted a "chicken and egg" problem: a lack of high-quality investable startups limits funding, success stories, and overall ecosystem growth. Their solution involves a two-pronged approach: increasing the conversion rate of startups through various support mechanisms (Obim City startup hub, fundraising readiness reviews, business development support) and increasing the quantity of startups through a new risk-taking investment program (OBBC), offering early-stage funding and partnering with a local bank for working capital loans. The implications are a healthier, more robust Vietnamese startup ecosystem, potentially replicable in other Asian markets. The detailed processes include internal startup review templates for fundraising readiness and the OBBC program's selection criteria focusing on experienced entrepreneurs with a strong commitment.

Detailed Summary:

The presentation can be broken down into the following sections:

Introduction and Genesia's Background: Dung Genesia introduced themselves as a Japanese venture capital firm with a six-year presence in Vietnam. They highlighted Vietnam's attractive investment landscape (GDP growth, growing middle class, digital economy potential, government support) as the key driver for their investment. They mentioned investing in 150 startups across Asia, with a focus on pre-seed to Series A investments, and their Obim City startup hub.
The "Chicken and Egg" Problem in Vietnam's Startup Ecosystem: Genesia identified a cyclical challenge: insufficient high-quality startups lead to limited funding, fewer success stories, and decreased motivation for founders, hindering ecosystem growth. This was described as a "Zero Sum game" they aim to break.
Genesia's Two-Pronged Approach: To address the problem, Genesia outlined two approaches:
- Increasing Startup Upground Conversion Rate: This involves enhancing value creation support for their portfolio companies. They detailed internal templates used to review fundraising readiness at various stages (pre-seed, Series A, Series B), focusing on key success factors for each stage. Support includes mentorship, team building events, business development assistance (including facilitating collaborations with Japanese financial institutions), and the development of a co-creation platform (Obim).
- Increasing the Quantity of Startups: This involves taking more risks by increasing risk capital. They introduced their new OBBC program, providing early-stage funding ($300,000 initial investment, with potential top-ups) and partnering with a Vietnamese bank for working capital loans. The program targets experienced entrepreneurs with a strong commitment, even at the idea stage.
Suggestions for Ecosystem-Wide Collaboration: Genesia called for broader participation from various stakeholders (VCs, accelerators, incubators, government) to further improve the ecosystem. Their suggestions included:
- Increasing risk capital through government incentives and fund-of-funds schemes.
- Enhancing the regulatory framework, particularly exploring alternative IPO pathways for startups.
- Improving support infrastructure, including legal and financial advisory services, mentorship networks, and knowledge-sharing programs. The speaker emphasized the importance of knowledge sharing and celebrating successes (and failures) within the ecosystem, drawing parallels with practices in Japan and other countries. The quote, "writing sharing that is one of the job as a v of capitalist need to share what we learn what we observe to relevant Founders so that they can get inspiration suggestion for their continent startup grow," highlights this key point.

The presentation concludes with a call to action for collaborative efforts to create a positive feedback loop within the Vietnamese startup ecosystem.