Southeast Asia’s “Golden Triangle” of Vietnam-Singapore-Indonesia is causing the next wave of growth in the region; Golden Gate Ventures doubles in Vietnam with two offices News

Consumer growth, educated workforce and surge in demand for digital after pandemic set tone Vietnamese ahead of the golden decade

Hanoi, Vietnam, May 30, 2022 / PRNewswire / – Golden Gate Ventures, a venture fund founded by people from Silicon Valley and founded in Southeast Asia for more than a decade it has been joined by Vietnam’s National Innovation Center (NIC) and the founders of Vietnam’s leading startups to announce the opening of 2 new Golden Gate Ventures offices. Ho Chi Minh City and Hanoi. The group discussed opportunities in the SEA “Golden Triangle of Startups”. Vietnam, Singapore and Indonesia – and its impact on the next wave of growth in the region.

Earlier this month, the founding partner of Golden Gate Ventures, Winnie the Poohsettled in Ho Chi Minh City with his family to open new firms Vietnam offices. Today, he signed a Memorandum of Understanding with the Vietnam National Innovation Center to consolidate a long-term partnership to help Vietnam develop your startup ecosystem and support Vietnamese entrepreneurship. In the Memorial on Mutual Understanding Golden Gate Ventures attracts investment to the market, promotes the exchange and growth of new ideas and innovations, and as a catalytic force that helps Vietnamese startups build regional business. Golden Gate Ventures now has offices Singapore, Vietnam and Indonesia – SEA “Golden Triangle Startup” display.

“We have started our plans to set up offices in Vietnam in 2019, when Golden Gate Ventures co-hosted the first Vietnam Venture Summit to help accelerate growth Vietnamese value in the “Golden Triangle of Startups”. Despite the pandemic, we were committed to getting boots on the ground and making our efforts truly local. Last year we worked on the restrictions of COVID-19 so that my family and I could move Vietnam, understand and appreciate local culture, and ensure that senior management stays in the field. We are very happy to be here,said Winnie the Poohfounding partner of Golden Gate Ventures, which has since moved on Vietnam.

Vietnamese Time to shine

After a huge decade of growth, the global investment community is starting to pay more attention Southeast Asia . Golden Gate Ventures has firmly established itself in Southeast Asia for over 10 years with offices today through Singapore, Vietnam and Indonesia – reflects the SEA’s “Golden Triangle Startup” and has a unique position to serve the region.

Vietnam climbs to the top to join the ranks Singapore and Indonesia as another gem of the region marked in record high $ 1.4 billion Vietnamese startups in 2021[1]1.6 times higher than the previous record $ 874 million in 2019.

“2021 was a very strong year for Vietnamese startups, which brought the highest investment in history $ 1.4 billion, and start-ups in the first four months of 2022 grew by 31.9% compared to two years ago. This is combined with a positive impetus for foreign investment, greater recognition Vietnamese We expect investment to double in the next three years,“said Mr. Wu Quok Huidirector of the National Innovation Center in Vietnama division of the Ministry of Planning and Investment.

So far Vietnam has been on the radar of founders and investors in the last decade, in the next few years the focus on this market will really pay off due to the combination of its growing consumer class, young and educated workforce and accelerated digital demand -pandemic.

Domestic consumption is projected to increase by 20% per year[2]. In fact, the country looks like a significant engine Asia consumption history over the next decade, adding another 36 million to its consumer class. It is believed that the middle class population is growing the fastest Southeast Asiaand is estimated at about 40 percent of the total population today, compared to only 10 percent in 2000. By 2030, that figure could reach 75 percent[3].

Vietnamese The young and educated workforce is another attractive one: 70 percent of the population under the age of 35 out of a population of more than 98 million[4]and the literacy rate of about 95.4% is one of the highest in Asia[5].

The third factor that contributes Vietnamese the potential is an increase in digital demand after the pandemic. Vietnam added 8 million new digital consumers, with 55% coming from non-metro areas between the start of the pandemic and the first half of 2021. Vietnamese 2021 GMV’s online economy was projected on $ 21 billion – an increase of 31% y / y, which was supported by an increase in e-commerce by 53%. By 2025, the overall Internet economy is likely to reach $ 57 billion in price, rising 29% CAGR[6].

“In the next decade, we expect to see Vietnam grow at a rate we have never experienced before. We are in an ideal position with extremely high Internet penetration, a very strong domestic market, founders with innovative ideas that can go beyond Vietnamand partners who help grow Vietnamese The launch ecosystem is here on earth Vietnam. The Vietnam The government has invested in the last decade to install many pillars – from supporting education to building infrastructure and developing ecosystems. These investments are now paying off – this can be seen in the huge interest of investors and extremely high activity of startups, “he said. Kim Ngog Thanh Ngahead of the ecosystem development department of the Vietnam National Innovation Center.

Singapore continues its headquarters

Singapore continues to hold its position as a regional and global market for the region as a regional and global headquarters, and the pandemic has further strengthened this positioning, with investment appetite remaining strong in digital services that have grown as a result of COVID-19. Despite its size, Singapore The Internet economy continues to grow at an insane rate: the gross value of goods (GMV) of its Internet economy was estimated at $ 15 billion in 2021, which is 35% more than last year[7]. This surge is supported by a 45% increase in e-commerce, e-products and digital financial services. As 97% of Internet users are also consumers of digital services, the city-state penetration rate remains the highest in the region. Its internet economy is likely to reach $ 27 billion by 2025, growing by 16% CAGR[8].

Indonesia Huge domestic market and strong localized innovations

Indonesia is the third hand of the SEA’s “Golden Triangle of Startups” not only because it is the region’s most populous country and the largest economy, but also the pandemic has fueled digital growth and localized innovation, unlike anything the country has seen before. In the period from the beginning of the pandemic to the first half of 2021 Indonesia saw 21 million new digital consumers, of which 72% were from non-metro areas, indicating accelerated penetration into the region’s largest market. GMV’s online economy was assessed in $ 70 billion last year – growth of 49% y / y, supported by growth of e-commerce by 52%. By 2025, the overall Internet economy is likely to reach 146 billion US dollars in price, rising by 20% CAGR. As one of the busiest digital services markets in the region, Indonesia continues to attract strong global capital inflows, with the focus on e-commerce, fintech, medical technology and edtech[9].

“SEA has always been a region of great opportunity, but scaling business models has been a challenge for many because of the unique dynamics of each market. Our study of the largest unicorns in the region has shown that the use of unique strengths Singapore, Indonesia and Vietnam together create a winning combination to help them innovate and grow at the speed of light, ”he said. Winnie the Poohfounding partner of Golden Gate Ventures.

“As a venture capitalist who has become an entrepreneur, I understand that key markets Southeast Asia are Vietnam, Singaporeand Indonesia, “Golden launch triangle”. The founders of Vietnam need to understand the business models operating in these markets to create the best product and scale in the region,said Trung Huynfounder of Mio, a social commercial platform for grocery and fresh produce that recently received Series A funding and defeated traditional trade models.

Areas of opportunity to run the Golden Triangle

Although health analytics, technology and supply chains are still big bets in this “golden triangle of startups”, gaming and D2C are key sectors to watch out for. Southeast Asiaone of the fastest growing gaming markets in the world, brings the highest revenues in the global gaming sector, with Indonesia, Vietnam and Singapore the leading mobile gaming package in the region. The region’s CAGR is expected to be 8.5% over the forecast period from 2022 to 2027, driven by rapid online population growth, increased mobile use and the fact that nearly two-thirds of the gaming population is involved in eSports.[10]. The game is a particularly large area of ​​opportunity Vietnamwith incomes almost $ 530 million in 2020 twice as much as in 2015[11].

D2C brands almost tripled the capital raised from investors over 20, which amounted to more than $ 2 billion through 105 transactions. The segment witnessed a fall in 2020 when it grew 735 million US dollarswhile in 2019 the total approached $ 1.5 billion through 120 deals, according to Venture Intelligence.

For more information on the SEA Startup Golden Triangle, please refer to the brief prepared by Golden Gate Ventures at this link:

About Golden Gate Ventures

Golden Gate Ventures is a venture fund Southeast Asia (SEA), founded by Silicon Valley natives. Since 2011, Golden Gate Ventures has launched four funds and invested in more than 60 companies. The firm is focusing on investing in a growing consumer online class Southeast Asia. Breakthrough businesses include Carousell (mobile ads), CodaPay (mobile payments), Appota (mobile payments)Vietnam mobile publishing platform), Loship (last mile logistics), Mio (social commerce), Carro (Auto Marketplace), Vui (early payroll access) and Xendit (payment processing).

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SOURCE Golden Gate Ventures

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