This document discusses 5 trends in Vietnam startup investment and mergers & acquisitions from 2012-2013. The trends are: 1) Startup investing has not slowed down though deals are smaller. 2) E-commerce, mobile, and edtech are attracting more deals. 3) Startups are targeting global/regional rather than domestic markets. 4) Japanese investors are increasingly active. 5) Strategic investors are making early-stage investments in addition to acquisitions. The document also provides details on some notable startup success stories and exits in Vietnam.

1. VIETNAM STARTUP INVESTMENT AND M&A:
5 INTERESTING TRENDS IN 2012-2013
Hatch Fair
12/2013
PHAM Minh Tuan, PhD
Founder & CEO, TOPICA Education Group
Tran Manh Cong
Co-Director, Topica Founder Institute

2. TOPICA Education Group
Bill Gates & Deputy PM Phạm Gia Khiêm
Launching TOPIC64, 4/2006
High-quality Online University Programs
•
7 University Partners Including Top-tier
•
Bachelor’s of Business, Accounting,
Banking, Law, IT
•
Expanding into Indonesia,
Philippines, Thailand
Education Minister of Victoria, Australia
Teaching TOPICAAmazing, 6/2012
English Training Franchise for Kids
Based on Online Game
•
12 Franchisees
•
Official Test Provider for Min. of
Education’s
Internet English Olympics (IOE)
Graduates of TOPICA
Founder Institute, 2012
Vietnam Chapters of Silicon-Valley
Accelerator Network
•
16 Graduates: Appota, Biaki,
Tapmee, Yton...
•
Who’s Who of Accomplished
Founders Served as Mentors
Team: 250 Full-time; 100 Part-time; 1100 Industry Instructors
INTERNATIONAL
AWARDS
Young Global Leader
Honoree, 2012
Finalist, 2007
Finalist, 2008
Winner, 2011

3. Success Stories of the First Wave
BAO GIỜ SÓNG ĐẾN ĐÂY?
Are Encouraging a Second Wave of Startups
VNG (Vinagame)
•
•
•
•
4/2013: New shares issued to Founder at USD 200m valuation
Founder Le Hong Minh’s net worth comparable to Top 15 on VN Exchanges
8/2010: Goldman Sachs, Tencent bought shares from IDGVV
IDG Chairman McGovern: 75x return on 2004 Series A investment
Vatgia
•
•
Rumored valuation of last round: $75m (Mitsui, Japan)
9/2011: Called by Tetsuiya Mori (MD DeNA Holdings) “Largest E-commerce company in SEA”
2013 Q1: Smaller Exits
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•
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Vietnamworks: USD 20m full exit to En-Japan
Nganluong (payment): 50% stake with partial exit (amount undisclosed) to MOL (Malaysia)
Kiemviec.vn (jobs): full exit (amount undisclosed) to CareerBuilder (US)
VMG Media
•
•
8/2011: NTT-Docomo bought 25% stake, valuation USD 75m, 2.5x return in 1 year
2010: 6 funds bought stakes at ~USD 30m valuation
Punch Entertainment
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9/2011: DeNA acquired, valuation USD 37m (rumored)

4. Trend 1: Startup Investing is
4
NOT Slowing Down, Although Deals Are Smaller
 2013:
 2012:
 2011:
25 Deals
24 Deals
~10 Deals

5. Trend 2: Amidst OTT War,
E-Commerce, Mobile, Edtech Getting Hot
Out of 49 Deals During 2012 - 2013:
 E-Commerce:
12 Deals (not including Rocket Internet)
 Mobile apps:
8 Deals
 Edtech:
6 Deals
5

6. Trend 3: Funding Startups Targeting
6
Global/Regional Markets Rather than Domestic
 2012-2013: 4 deals into startups targeting global markets
 Previously: Almost none

7. Trend 4: Japanese Investors Are Taking Over
Investors from:
Japan
Europe
US
Vietnam
2013 Deals
10
1
4
5
2012 Deals
4
6
3
10
2004-2011 Deals
~12
Few
>50
Few
 Where are the Singaporean Investors?
7

8. Trend 5: Strategic Investors
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Not Only Acquiring But Also Making Series A's
 6 Early Stage Investments by Strategic Investors
 Are VCs & Angels Not Supposed To Make Money in the Middle?

9. Topica’s Contribution to
Developing the Startup Community
 Organized and supported
40 events, ~7,000 participants
(with grants from World Bank Infodev)
 Served on Steering Committee of 2
largest Online Communities for startups:
Launch (8k members),
Mobile Monday (4k members)
9

10. Mentors
Graduates
10

11. VIETNAM STARTUP INVESTMENT AND M&A:
5 INTERESTING TRENDS IN 2012-2013
Hatch Fair
12/2013
PHAM Minh Tuan, PhD
Founder & CEO, TOPICA Education Group
Tran Manh Cong
Co-Director, Topica Founder Institute