Hanoi set to launch venture capital fund
The Hanoi Venture Capital Fund (HVCF) is set to be officially launched on December 22, promising to become a powerful financial driver that will foster the capital's innovation ecosystem.
This information was highlighted following a meeting held on December 4 chaired by Vice Chairman of the municipal People's Committee Truong Viet Dung, with the participation of contributing investors.
The fund will be established under a business contractual co-operation (BCC) with no legal status, operating on market principles and accepting risks to promote innovation.
Fund objectives include investing in and supporting high-tech businesses, science and technology enterprises and innovative start-ups, promoting the commercialisation of scientific and technological products and creating momentum for the capital's innovation ecosystem.
Funding sources for the HVCF include charter capital from the city’s budget, which is capped at VND600 billion (US$23 million) and no more than 49% of the charter capital, along with contributions from investors, mobilisation, sponsorship and other legal sources.
The fund will operate on a pilot basis for up to 10 years, aiming to become a financial boost for regional technology projects, contributing to positioning Hanoi as the country’s innovation centre.
Dung said that the city's venture capital activities could not be limited to a few areas, but must cover key science and technology pillars such as education, biomedical science, healthcare, transportation and smart cities.
He also confirmed that the fund’s model would operate according to international standards, with transparency, adherence to market principles and shared risk-taking with professional investors.
Hanoi plans to participate in the fund with a maximum of six investors to ensure effective governance.
The vice chairman said that the amount of contributed capital is not what matters. What's important is the unity and consensus to create value and step into a new phase of development with significant changes, he noted.
Techfest 2024 connects venture capital funds, local start-ups
An innovative start-up investment conference was held on November 27, focusing on the cooperation between venture capital funds, supporting organisations, start-up incubators to promote the development of innovative startups.
