Startups "thirsty" for capital: How to approach investment funds?

One of the factors that determines the success of startup projects is capital. Investors and investment funds are two popular sources of capital today. In Vietnam, there are many investment funds ready to support startups on their startup journey. However, accessing these investment funds requires startups to have clear knowledge and strategies.

Where can startups access investment funds?

Through competitions

Currently, there are many competitions for young entrepreneurs held regularly with the aim of finding breakthrough and potential projects. Typical competitions include: Startup Wheel, Qualcomm Vietnam Innovation Challenge, Hack4Growth, National Innovation Startup Talent Search Competition within the framework of TECHFEST, etc. These events are organized systematically and professionally and will be a great opportunity for startups to share ideas with investors and investment funds. At the same time, this is also an opportunity for startups to gain experience and receive feedback from many sides to perfect their startup projects.

Many startup competitions for students are held regularly.

Through seminars and events

If you are starting a business or are nurturing a startup project, you should participate in networking events such as launch meetup, Pitch bootcamp, mobile day, etc. These are events that gather a lot of investors so you can meet and build relationships. You can also visit electronic newspapers such as: startup.vnexpress.net, startupwheel.vn, khoinghiepquocgia.vn, etc., find more information about events, large seminars or talks, competitions on business, startups to participate and learn from experience. There are currently many events for the startup community in and outside the country, so it is not difficult for you to learn and register to participate.

Innovation investment events and seminars are good opportunities for startups to attract the attention of investment funds. 

Through introduction

Approaching investors through an introduction or recommendation from a reputable person is a smart way for startups because it will increase investors' confidence in the startup project. Normally, most investors will invest in projects that are sought after by many people or through an introduction from a reputable individual or organization. Therefore, startups should know how to take advantage of their relationships to shorten the distance to access investment funds.

Reaching investors through a reputable introduction helps you increase your fundraising success rate

What should startups do to convince investment funds?

Know your product/project well

To be able to mobilize capital from investment funds, startups need to clearly understand their needs and scope of operations. First of all, startups need to determine what stage they are in the development process, then consider the purpose of using capital, how to deal with risks that may be encountered during project implementation. In addition, startups must have a detailed, impressive business plan and fully answer questions such as: What is the goal of the project? Why is there such a goal? How long will this plan be implemented? Who will implement this plan? What is the marketing strategy? What is the financial and human resource management plan? As long as your project/product is suitable for what the investment fund is aiming for, the possibility of you being invested is very high.

A clear and impressive business plan is the key to helping startups successfully approach investment funds. 

Equip yourself with the necessary knowledge and skills

Equipping yourself with knowledge about the market and business is an extremely important factor that helps startups come up with detailed and perfect ideas for each stage in the business roadmap, minimizing unnecessary risks. Some necessary knowledge includes: Knowledge about the field of operation, project management knowledge, accounting knowledge, marketing knowledge, knowledge about legal document systems, etc. In addition, startups need to practice market research skills to build effective business strategies. In particular, presentation skills are also an equally important factor that determines the success rate of capital raising for startups. 

Being well-equipped with market and business knowledge helps startups confidently raise capital from investment funds.

Learn about investment funds

Currently, Vietnam has more than 200 investment funds operating domestically and internationally, ready to support businesses and projects with different scopes and strategies. Some investment funds include: Vietnam Investment Fund, 500 Startups Vietnam Investment Fund, VinaCapital Vietnam Opportunity Fund, Ho Chi Minh City Startup and Innovation Investment Fund (HSIF), Dragon Capital Fund, IDG Ventures Vietnam Fund (IDGVV), etc. These investment funds are mainly concentrated in Hanoi and Ho Chi Minh City, leading to the startup ecosystems in these areas being much more developed than in other regions.

In the Mekong Delta, startups are facing many challenges, especially the lack of access to many investment funds, leading to difficulties in raising capital. To help solve this difficulty, active support from investors and investment funds is needed.

In order to promote the innovative startup ecosystem in the Mekong Delta in particular and the whole country in general, the FundGo Innovative Startup Investment Fund was established. The fund has the mission of nurturing and investing long-term in innovative startups and small and medium enterprises. In addition to supporting innovative startup projects, FundGo also coordinates with agencies, departments and sectors to organize seminars to promote the digital transformation process in the region. The fund is currently strengthening connections with universities and colleges to provide career counseling and orientation, organize startup competitions and award scholarships to students, and encourage the spirit of innovation. The establishment of the fund brings many opportunities for startup projects in the region.

FundGo representatives participate in student support programs and search for startup ideas at universities and colleges.

The process of developing a business project always has to go through many hardships and challenges. Raising capital is also one of the difficult stages that any startup will have to face. However, if the startup understands the basic requirements and has an effective strategy, raising capital will become easier.

Hopefully, the information in the article will help startups prepare carefully and best for the journey of finding investment funds to accompany their startup projects.