IDG Ventures, the corporate venturing division of US-based publisher International Data Group, is expected to raise two Vietnam-focused funds with an aggregate $400m over the next two years.
In an interview with the Vietnam Economic Times, Patrick McGovern, chairman of IDG, said Vietnam’s technology and telecommunications market had become one of the world’s most attractive with annual growth of 20%.
IDG raised its first $100m Vietnam fund in 2004 and has returned an annual 38% per year, the Vietnam Economic Times said quoting Nguyễn Bảo Hoàng, managing general partner of IDG Ventures Vietnam. It planned to raise a $150m fund next year to invest in seed and early-stage startups with IDG committing to a $250m fund in 2012 to back later-stage business in IT, healthcare and retail.
Vinh Nguyen, manager at Vietnam-based venture capital firm Dragon Capital, by email said: "It is good that Vietnam still attracts FDI and FII [foreign direct and foreing inward investment]. IDG investments doesn’t make [a] deep impact as they focus only on technology, high risk business."