On the morning of September 15, the jFoundation team had the opportunity to meet and discuss with Nguyen Thu Huong about the investment industry, the different priorities at each fundraising stage, and the reasons why she supports the development of jFoundation.
Having served as Head of investment analyst at BK FUND for two years and working at the CMC Innovation Fund – CMC Technology Group, Huong is a key member in building and operating a venture capital fund under Decree 38/ND-CP. With experience leading 4 deals/year, Huong is a highly respected figure in the venture capital industry in Vietnam, known for her extensive network of support for the domestic startup community.
Good morning Ms. Hương, could you please provide an overview of the current investment activities of CMC Corporation and BK Fund?
CMC Corporation is a technology corporation with 30 years of experience in the information technology and telecommunications sector. At CMC Innovation Fund, We materialize CMC Corporation’s mission of supporting and investing in startups at the Pre-Series A and Series A stages. Access to startups depends on the nature of the startup, CMC only focuses on the stage. However, the fact that a startup has entered this funding round and has been invested in, shows that they have been operating in the market and have been recognized by other investors.
BK Fund focuses on startups at the extremely early stage, which could be at the seed stage, so BK Fund plays the role of an angel investor and an incubator. At BK Fund, I and my colleagues have invested in 4 businesses in the Edtech; Fintech; Ed-Fintech, and Medtech sectors in just the first year of establishment.
According to Ms. Hương, what are the key criteria that StartUps which have been invested, need to meet, if They want to get more funding or support from investors?
We consider whether to continue investing based on the growth level of the Startup. For example: one Startup could be invested at the early stage, investors and Startup will have commitments about growth, objectives,… possibly by month, quarter, or year. Investment funds will observe startups whether they are on the right way and achieving that commitment.
On the other side, That is market demand. Whether the market at the present time is still suitable for investment. Does this market still potential to go forward in the next period or not? And which fluctuation could impact Startups’ activities?
However, when Startups enter the later stages of development, financial performance becomes more important. Because they are numbers that reflect the development of the business.
It is important to note that not all investment funds use the same criteria. Some funds do not require startups to make commitments to growth. This is because growth commitments can stifle innovation.
Ultimately, each investor has their criteria for evaluating startups. However, the two most important factors to consider are market demand and growth.
What are the investment criteria for CMC Corporation for early-stage StartUps?
CMC Corporation has several different criteria for evaluating startups, including six main ones.
The first is alignment. It means that The startup’s business model and strategy must be aligned with CMC’s overall strategy. For example, CMC is currently focusing on developing a DX/CX, Cloud, Education, and Research ecosystem. Startups that fall within these areas will be considered for investment.
The second is the team. The success of a startup in the early stages is largely dependent on how experienced the team is in the field of expertise, business as well as co-founder‘s reputation. CMC looks for teams with a strong track record in their respective fields and a proven ability to execute.
The third is the idea. CMC evaluates whether the startup’s idea addresses a real problem and has a competitive advantage.
The fourth is the market. How competitive that market is, also about requirements, and potential. Which enterprise is leading the market or Startup will lead the market? In this market, which segment do Investors choose and attract users?
Finally, finance. CMC does not place too much emphasis on financial metrics for early-stage startups. Instead, CMC looks for startups with a clear financial roadmap and a commitment to transparency.
What are the upcoming investment trends of Ms. Nguyen Thu Huong?
At CMC, we focus on what CMC does not have and what CMC is interested in. However, there is a very small group of CMC that invests in the seed stage of extremely new StartUps that follow market trends. For this group, CMC will focus on-trend products and new technologies such as Web 3.0 or Blockchain to anticipate technological trends.
Can you share some thoughts on jFoundation and the potential of jFoundation?
It is a necessary channel, because when I approach StartUps, these businesses are very lacking in terms of business and technology, especially in terms of updating new technologies. When I heard about jF’s foundation and technical team that is ready to support, I felt very promising. In the early stages, the development of products and the construction of the startup team are more important. Therefore, if jFoundation can implement activities to support StartUps in terms of technology or team, it will be extremely useful. And it can help a lot for investment funds in the startup incubation stage.
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