Vietnam government takes venture capital lead

(VOV) - Vietnam based Lozi.vn, which is essentially a Facebook for food that reminds most consumers of Pinterest that launched in 2014, has announced the signing of a venture capital agreement with Golden Gate Ventures and DesignOne Japan.

Lozi.vn, a startup of the Vietnam government faces strong competition from Foody.vn, which already dominates the food recommendations market, did not disclose the details of the agreement, only to say the funds would be used to improve the quality of the mobile application.

Venture capital is a relatively new concept for most Vietnamese public and private companies but is considered an important source of funds for; in particular, risky ventures in most western countries that need working capital to get the business off the ground.

Since 2011, Golden Gate Ventures – has heavily invested in 35 start-up companies specializing in internet and mobile applications in Southeast Asia, while Design One Japan is an internet media company, said Lozi.vn.